As at December 31, 2022, carrying value of ALDA of $51.7 billion represented 12% (2021 – $44.4 billion and 10%) of invested assets. The fair value of total ALDA was $53.7 billion at December 31, 2022 (2021 – $46.3 billion). The carrying value and corresponding fair value by sector and/or asset type are outlined above (see table in the section “General Fund Assets”). RealEstate Our real estate portfolio is diversified by geographic region; of the total fair value of this portfolio, 44% is located in the U.S., 39% in Canada, and 17% in Asia and Other as at December 31, 2022 (2021 – 42%, 42%, and 16%, respectively). This high-quality portfolio has virtually no leverage and is primarily invested in premium urban office towers, concentrated in cities with stable growth, and highly diverse economies, in North America and Asia. The portfolio is well positioned with an average occupancy rate of 89% (2021 – 90%) and an average lease term of 5.1 years (2021 – 5.5 years). During 2022, we executed 2 acquisitions representing $0.09 billion market value of commercial real estate assets (2021 – 2 acquisitions and $0.03 billion, respectively). As part of ongoing portfolio management initiatives, 9 commercial real estate assets totaling $0.3 billion were sold during 2022. The composition of our real estate portfolio based on fair value is as follows: As at December 31, 2022 2021 ($ billions) Fair value % of total Fair value % of total Company Own-Use $ 3.0 21 $ 3.0 21 Office – Downtown 4.3 30 4.8 33 Office – Suburban 1.1 8 1.4 10 Industrial 2.7 19 2.2 15 Residential 2.2 15 1.9 13 Retail 0.4 3 0.4 3 Other 0.7 4 0.7 5 Total real estate(1) $ 14.4 100 $ 14.4 100 (1) These figures represent the fair value of the real estate portfolio. The carrying value of the portfolio was $13.3 billion and $13.2 billion at December 31, 2022 and December 31, 2021, respectively. Infrastructure We invest both directly and through funds in a variety of industry specific asset classes, listed below. The portfolio is well-diversified with over 600 portfolio companies. The portfolio is predominately invested in the U.S. and Canada, but also in the United Kingdom, Western Europe, Latin America, and Australia. Our power and infrastructure holdings are as follows: As at December 31, 2022 2021 ($ billions) Carrying value % of total Carrying value % of total Power generation $ 4.3 34 $ 3.9 40 Transportation (including roads, ports) 3.6 28 2.7 27 Electric and gas regulated utilities 0.6 5 0.4 5 Electricity transmission 0.2 2 0.1 1 Water distribution 0.4 3 0.2 2 Midstream gas infrastructure 0.8 6 0.7 7 Maintenance service, efficiency and social infrastructure 0.4 3 0.2 2 Telecommunications/Tower 2.3 18 1.5 15 Other infrastructure 0.2 1 0.1 1 Total infrastructure $ 12.8 100 $ 9.8 100 Timberland&Farmland Our timberland and farmland assets are managed by a proprietary entity, Manulife Investment Management Timberland and Agriculture 1 (“MIM Timberland and Agriculture”). In addition to being the world’s largest timberland investment manager for institutional investors , with timberland properties in the U.S., New Zealand, Australia, Chile, Brazil, and Canada, MIM Timberland and Agriculture also manages farmland properties in the U.S., Australia, Chile, and Canada. The general fund’s timberland portfolio comprised 22% of MIM Timberland and Agriculture’s total timberland AUM (2021 – 22%). The farmland portfolio includes annual (row) crops, fruit crops, wine grapes, and nut crops. The general fund’s holdings comprised 41% of MIM Timberland and Agriculture’s total farmland AUM (2021 – 41%). PrivateEquities Our private equity portfolio of $14.3 billion (2021 — $11.6 billion) includes both directly held private equity and private equity funds. Both are diversified across vintage years and industry sectors. 1 Based on the global timber investment management organization ranking in the RISI InternationalTimberland Ownershipand InvestmentDatabase. 41