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Manulife US REIT is the first pure-play U.S. office REIT listed in Asia. Please read on to find out what you need to do to receive your full distributions.

Overview

For listed securities which derive income in the U.S., the U.S. Internal Revenue Service ("IRS") requires certain documentation from the ultimate beneficial owner to ensure the appropriate level of withholding tax is deducted.

Unitholders of Manulife US REIT ("Unitholders") are subject to a maximum withholding tax rate of 30% on income they derive from U.S. investments. Hence, Unitholders must comply with certain documentation requirements in order to be exempted from certain withholding tax under the United States Internal Revenue Code of 1986, as amended (the "IRC"), including under the United States Foreign Account Tax Compliance Act ("FATCA").

Specifically, Unitholders must establish their status for FATCA purposes and their eligibility for exemption from U.S. withholding tax on certain interest income earned by Manulife US REIT by providing an applicable U.S. IRS Form W-8 or such other certification or other information related to FATCA that is requested from time to time.

Unitholders must also provide updates of any changes to their status for FATCA purposes including information relating to their name, address, citizenship, personal identification number or tax identification number, tax residencies, and tax status. If a Unitholder fails to provide or to update relevant information necessary for compliance with U.S. tax withholding requirements, including FATCA, or provide inaccurate, incomplete or false information, amounts payable by Manulife US REIT to Unitholder may be subject to deduction or withholding in accordance with U.S. tax law and any intergovernmental agreements.

The relevant U.S. tax forms may also be downloaded from Manulife US REIT’s website (please refer to sidebar) or from the U.S. IRS website at http://www.irs.gov.

  • Individual Unitholders
  • Entities Unitholders (Corporate)
  • Depository Agents and Nominees
  • Unitholders who do not submit the required U.S. IRS tax forms will be subject to U.S. withholding tax on distributions payment when due to them and may not receive the full amount of their entitlement to distributions.

    It is important for Unitholders to comply with the abovementioned documentation requirements or they will be subject to U.S. withholding tax under the IRC, including under FATCA. For further details on the documentation required for U.S. tax exemption, Unitholders can also refer to "APPENDIX I – PROCEDURES FOR THE SUBMISSION OF U.S. TAX FORMS" of the Prospectus of Manulife US REIT dated 12 May 2016 and registered by the Monetary Authority of Singapore on 12 May 2016.

    Restriction On Ownership Of Units

    Unitholders are prohibited from directly or indirectly owning in excess of 9.8% of the outstanding Units (“Unit Ownership Limit”), subject to any increase or waiver pursuant to the terms of Manulife US REIT’s Trust Deed and on the recommendation of the Manager.

    The Trust Deed provides that Units held directly or indirectly by any person in excess of the Unit Ownership Limit will be automatically forfeited and held by the Trustee (“Automatic Forfeiture”). While forfeited Units are held by the Trustee, all rights attributable to those Units, such as the right to vote and the right to receive distributions, will be held by the Trustee; the Unitholder from whom the Units are forfeited shall have no right to vote or receive distributions arising from such Units.

    The Trustee will have the right and power to dispose of Units subject to Automatic Forfeiture, and upon such disposal the Unitholder from whom the Units are forfeited will receive the proceeds (net of any commissions and expenses) from the disposition. If there is an excess in the disposal price of the forfeited Units above the price paid by such Unitholder for the same forfeited Units, the excess shall be donated by the Trustee to a charitable, philanthropic or benevolent organisation or purpose.

    For the avoidance of doubt, the Automatic Forfeiture is effective automatically, whether or not the Trustee or the Manager is aware of the change in ownership or aware of the fact that the Unit Ownership Limit has been breached. Unitholders are advised to manage their interests in the Units so as not to breach the Unit Ownership Limit and trigger the Automatic Forfeiture.

    Currency Election

    Distributions will be declared in U.S. dollars. Each Unitholder will receive his distribution in Singapore dollars equivalent of the U.S. dollar distribution declared, unless he elects to receive the relevant distribution in U.S. dollars by submitting a Currency Election Form by the relevant cut-off date.

    Save for approved depository agents (acting as nominees of their customers), each Unitholder may elect to receive his entire distribution in Singapore dollars or U.S. dollars and shall not be able to elect to receive distributions in a combination of Singapore dollars and U.S. dollars.

    CDP launched the Currency Conversion Service on 15 June 2020. This new service will enable CDP direct account holders with Direct Crediting Service (DCS) to have their foreign currency cash distribution converted into Singapore Dollar and directly credited into their DCS bank accounts. If you are a CDP Securities Account holder with DCS, and wish to receive your distributions in USD, please be reminded to opt-out of Currency Conversion Service. For more information, please visit https://www.sgx.com/cdp-goes-digital and contact Central Depository at (65) 6535 7511 or asksgx@sgx.com.

    Contact Information

    Unitholders who have any questions or require assistance in completing the required forms can call +65 6230 9685 during office hours from Monday to Friday, excluding public holidays. Alternatively, email your questions to MUSTSRS@boardroomlimited.com.

    In addition, Unitholders can also refer to the Investor Pack which contains relevant instructions/sample to guide Unitholders in completing the required forms.

    The sample information provided in the Investor Pack is to assist Unitholders in completing the forms and does not constitute legal, financial or tax advice. Unitholders should seek independent professional advice in respect of their specific circumstances.

    Note

    Capitalised terms used in this section, shall, unless otherwise defined, bear the same meanings assigned to them in the Prospectus of Manulife US REIT dated 12 May 2016 and registered by the Monetary Authority of Singapore on 12 May 2016.