Israel Canada (T.R) Ltd.

Board of Directors' Report for the Three-Month Period Ended on March 31, 2025

This document is an English translation of the Hebrew version of the company's financial statements and the management discussion and analysis for the First quarter of 2025, that was published on May 28, 2025 (the "reports" or "Hebrew Version"). The Hebrew version of the reports is the binding version and the only version having legal effect. The English translation has been created for the purpose of convenience only and has no binding force. The approval of the company's board of directors was given to the Hebrew version only and no such approval has been given to the English translation. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail

Board of Directors' Report on the Company's Affairs for the Period Ended on March 31, 2025

A. Summary of Financial Findings for the Reporting Period:

The total amount of apartment and land sales and the admission of partners into the Company and affiliated companies from the beginning of 2025 until the publication date of this Report amounted to approximately NIS 0.9 billion (*)(including affiliated company ICR), compared with approximately NIS 1.1 billion (*) in the corresponding period last year.
Below is a summary of apartment and office sales in the Company's principal projects up to the Report Date:
- ❖ Sde Dov Project ("Rainbow"), Tel Aviv, as of the Report Date the Company sold 228 apartments for total consideration of approximately NIS 2 billion including VAT.
- ❖ Vertical City Project as of the Report Date, an affiliated company sold approximately 25,000 square meters of office space for total consideration of approximately NIS 796 million including VAT.
- ❖ Midtown Jerusalem Project as of the Report Date, the Company sold approximately 222 apartments for total consideration of approximately NIS 847 million including VAT, and approximately 4,052 square meters of office space for total consideration of approximately NIS 119 million including VAT.
- ❖ Lev Bavli, Tel Aviv as of the Report Date, the affiliated company sold 7 apartments for total consideration of approximately NIS 38 million including VAT.
On May 20, 2024, the Company received an initial rating of ilA- with a positive outlook from S&P Maalot for the Company and for its Bonds Series F and G. On June 23, 2024, S&P Maalot announced a rating of ilA- for a new issuance (Series H). On December 4, 2024, S&P Maalot announced a rating of ilA- for an expansion of Series H. On May 6, 2025, S&P Maalot announced a rating of ilA- for a further expansion of Series H.
On January 23, 2025, the Company executed a private placement of the Company's shares to institutional entities for total consideration of approximately NIS 125 million.
On April 3, 2025, after the balance sheet date, all the precedent conditions were met, and the hotel company completed the acquisition of the Brown Hotels operations for a total amount of approximately NIS 131 million plus VAT as required by law. The transaction was completed using both equity and external financing from a local bank (approximately NIS 74 million). Upon completion of the transaction, and together with existing operations, the hotel company holds approximately 3,650 hotel rooms in ownership and management in Israel and Greece.
On April 20, 2025, after the Report Date, the Company, together with Check Point, received a notice from the Tender Committee regarding the approval of their joint bid in a tender to establish a mixed-use residential, office, and commercial project for total consideration of NIS 818 million (Company's share: approximately NIS 318 million). As of the publication date of this Report, some of the precedent conditions have not yet been met.
On May 8, 2025, the Company expanded Bonds (Series H) in a total amount of approximately NIS 210.8 million. For additional information, refer to Note 5D to the Company's consolidated financial statements.
The net loss for the three months ended March 31, 2025, amounted to approximately NIS 24 million, compared with net profit of approximately NIS 40 million in the corresponding period last year.
As of March 31, 2025, the Company had balances of cash, cash equivalents, and marketable securities totaling approximately NIS 0.6 billion.
As of March 31, 2025, the Company had real estate inventory and buildings in planning and construction totaling approximately NIS 4.6 billion.
The Company's total balance sheet as of March 31, 2025, amounted to approximately NIS 11.1 billion, compared with approximately NIS 10.9 billion on December 31, 2024.
The Company's equity (including non-controlling interests) as of March 31, 2025, amounted to approximately NIS 3.5 billion, compared with approximately NIS 3.5 billion as of December 31, 2024.
Equity attributable to the Company's shareholders as of March 31, 2025, amounted to approximately NIS 2.6 billion, compared with approximately NIS 2.5 billion as of December 31, 2024.
The ratio of the Company's equity (including non-controlling interests) to the Company's total consolidated balance sheet as of March 31, 2025, was approximately 31.8%, compared with approximately 31.6% as of December 31, 2024.

▪ The ratio of the Company's equity excluding non-controlling interests to the Company's total consolidated balance sheet as of March 31, 2025, was approximately 23.1%, compared with approximately 22.7% as of December 31, 2024.

(*) Concerning apartment and office sales including Registration Forms; amounts include VAT.

Project	For the three month period ended on March 31, 2025		Data from the start of the project until March 31, 2025
	Apartments sold	Financial scope including VAT in NIS thousands	Marketing rate	Apartments sold	Financial scope including VAT in NIS thousands
Rainbow, Tel Aviv	10	89,663	47.5%	228	1,992,716
Midtown Jerusalem(1)	9	55,521	32%	222	847,013
Lev Bavli, Tel Aviv	3	17,106	5%	7	38,477
SHE, Herzl Yehuda Halevy	1	32,000	1%	1	32,000
Pastoral, Jerusalem	20	79,065	35%	100	351,234
North Park Stage A, Ramat Hasharon	5	26,344	71%	388	1,948,764
North Park Stage B (EVE), Ramat Hasharon (2)	16	86,684	34%	136	741,656
Ocean Park II, Netanya	-	-	100%	60	243,681
Hahistadrut Air, Givatayim	3	12,470	69%	149	730,525
Yasmin (Idmit), Givatayim (3)	2	8,946	3%	2	8,946
Serenity, Tel Hashomer	4	12,971	12%	4	12,971
Hamesila, Herzliya	-	-	89%	24	171,535
Hagefen, Herzliya (Stage B)	-	-	98%	94	369,591
Bat Yam Sokolov	1	10,500	98%	162	481,495
Ahad Ha'am, Tel Aviv	2	13,154	94%	65	334,963
Total apartments	76	444,424	-	1,642	8,305,566

Apartments and offices sold during the period in the Group's projects:

Project	For the three month period ended on March 31, 2025		Data from the start of the project until March 31, 2025
	Sq.m sold	Financial scope including VAT in NIS thousands	Marketing rate	Sq.m sold	Financial scope including VAT in NIS thousands
Midtown Jerusalem Offices	1,681	51,579	9%	4,052	119,062
Vertical City, Ramat Gan	-	-	33%	24,879	796,105
Total offices	1,681	51,579	-	28,931	915,167

(1) Midtown Jerusalem – of the 222 apartments sold, 4 were Registration Forms totaling approximately NIS 67,588 thousand including VAT.

(2) Park Tzafon Stage B (EVE) Project – of the 136 apartments sold, 4 were Registration Forms totaling approximately NIS 29,391 thousand including VAT.

(3) Yasmin (Idmit) Project, Givatayim – of the 2 apartments sold, 1 was a Registration Form totaling approximately NIS 5,231 thousand including VAT.

From the end of the period until shortly before the publication date of the financial statements, the Company sold 59 apartments for total consideration of approximately NIS 302 million including VAT(*) .

Registration Forms

The Company's apartment/office unit marketing process consists of two stages – in the first stage, after commercial terms are agreed with the purchaser, the purchaser signs a Registration Form / Subscription Form which includes the key agreed commercial terms (unit details, appurtenances, consideration, and payment schedule), as well as general legal information regarding the asset. For the Registration Form to become effective, the purchaser must deposit Registration Fees into the project's escrow account in an amount ranging from NIS 50,000 to NIS 100,000 (depending on the project) (hereinafter, respectively: the "Registration Fees" and the "Registration Form"). In the second stage, and pursuant to the provisions of

the Registration Form, the purchaser must complete the rights acquisition and sign a binding Sale Agreement within approximately 7–14 days from the date of signature, and the Registration Fees will be credited toward the first payment on account of the consideration under the Sale Agreement. The Registration Form further provides that if the purchaser does not sign a Sale Agreement and decides not to complete the transaction, the Registration Fees will not be refunded and will be forfeited to the project company. It should be noted that in some cases, at the purchaser's request, the Company approves the refund of the Registration Fees if the purchase is not completed due to legal disputes related to the Sale Agreement. For further details regarding the marketing process, refer to

Section B.8 below.

(*) Of which approximately 31 were Registration Forms totaling approximately NIS 160 million including VAT.

B. Board of Directors' Explanation of the Corporation's Business Condition

The Board of Directors of the Company is honored to hereby present the Company's consolidated financial statements for the three-month period ended March 31, 2025 (hereinafter: the "Period" or the "Reporting Period"), pursuant to the Securities (Periodic and Immediate Reports) Regulations, 5730-1970 (hereinafter: the "Reporting Regulations").

The review set forth below is limited in scope and refers to events and changes that occurred in the Company's affairs during the Reporting Period and whose impact is material, and should be read together with the Company's Periodic Report for the year ended December 31, 2024, which includes the Company's 2024 Business Description Report and the Company's consolidated financial statements as of December 31, 2024 (hereinafter: the "Periodic Report," the "2024 Report," and the "Annual Financial Statements," respectively).

All data appearing in the Board of Directors' Report is based on the Company's reviewed interim consolidated financial statements as of March 31, 2025, unless stated otherwise.

General Background Regarding the Company

As of the Report Date, the Company has eight fields of activity, as detailed below:

1. The real estate development sector (land investments)
1. The project construction sector in Israel
1. The development and management of purchasing groups sector in Israel (not a reportable segment under generally accepted accounting principles)
1. The income-producing real estate sector in Israel
1. The hotel management sector in Israel
1. The real estate development sector in Russia
1. The assisted living sector in Israel (not a reportable segment under generally accepted accounting principles). For further details, refer to the Company's Immediate Report Dated March 16, 2022 (Reference No.: 2022-01-026103), which is included in this Report by way of reference.
1. The operation of assets and parking lots sector in Israel (not a reportable segment under generally accepted accounting principles)

For further details regarding the segmentation of the Group's sectors of activity, refer to Section 1 of Part A of the 2024 Periodic Report.

Below is an update regarding the status of the Company's principal projects under marketing in Israel (to the extent that material changes occurred):

Project Construction Sector in Israel
Project name	Status update
New Ramat Hasharon Project	On November 21, 2022, the Tel Aviv District Planning and Building Committee resolved to conditionally approve the deposit of the Morasha Employment Area Plan in Ramat Hasharon, for the establishment of a complex combining residential, commercial, office, and public buildings (hereinafter: the "Plan"). The Plan enables the development of a project with a total aboveground area of approximately 206 thousand square meters, above basement areas of approximately 90 thousand square meters. According to the Plan, the construction of four towers of up to 20 floors each will be permitted, connected by lower floors designated for commercial and office uses totaling approximately 150 thousand square meters. In addition, ten 9-story residential buildings will be constructed, comprising 600 small residential units (120 of which will be designated for rental housing). According to the Plan, land will be allocated for the construction of a school and additional public areas for local residents, as well as an area of approximately 7.5 dunams for a transportation terminal and urban storage uses. In February 2024, the District Committee resolved to approve the Plan. Subsequently, an appeal was filed by the Ramat Hasharon Municipality, and a hearing was held in July 2024. The Company is currently awaiting a decision on the appeal. In 2025 and until the publication date of the Report, the Company sold 8 land units related to the office component of the project for total consideration of approximately NIS 9 million including VAT. The Company's estimates regarding the scope of rights constitute Forward Looking Information based on the Company's experience and the status of discussions with the authorities as of the date of this Report. This information may not materialize, may partially materialize, or may differ materially from the above.
Midtown Jerusalem Project	According to the City Building Plan approved on May 7, 2023, the project includes approximately 695 residential units (*) in two 40-story towers and a total marketing area of approximately 43,500 square meters of net area for marketing, as well as commercial, office, and hotel space totaling approximately 75,000 gross square meters, and 200 rental residential units in two 40-story towers, a preserved building designated for hotel use totaling approximately 5,250 gross square meters, and approximately 12,000 square meters of public buildings. It should be noted that, in light of the Company's decision to market part of the office space out of the total investment property valued at approximately NIS 139 million, a total of approximately 44,607 square meters of the office rights have been reclassified, as of July 2024, from investment property to inventory of real estate, instead of the classification as investment property which was in place from the date of acquisition of these properties. The remaining commercial, hotel, and rental apartment rights are classified as investment property. According to the City Building Plan, the rental apartments will be owned by a single entity and will be rented for a period of ten years from the date of receipt of Form 4 (certificate of occupancy), at market rental rates (not subject to price control). After ten years, they may be sold without restriction. On October 10, 2024, and March 24, 2025, the project company entered into amendments to the land financing agreement and the voucher arrangement,

Project Construction Sector in Israel
Project name	Status update
	including an extension of the loan repayment date to September 30, 2025 (instead of March 31, 2025). On February 25, 2025, a full building permit was obtained for the residential towers, and a general contractor agreement was signed with Tidhar Construction Ltd. On April 28, 2025, after the balance sheet date, a full building permit was obtained for the office tower and the mixed-use tower, which includes rights for hotel and rental housing. As of the date of the financial statements, 222 residential units have been sold in the project for total consideration of approximately NIS 847 million including VAT (of which approximately 4 Registration Forms were signed for a total amount of approximately NIS 67 million), and approximately 4,000 square meters of office space have been sold for approximately NIS 119 million including VAT. (*) Due to optimization in apartment planning and marketing, the number of units for marketing was updated to 695 apartments (instead of 800), without any change in the total marketing area. As the planning progresses, additional changes may occur in the number of units for marketing, without changing the
Rainbow Project (Sde Dov), Tel Aviv	total marketing area. A project for the construction of 480 residential units and commercial areas with a total gross area of approximately 1,600 square meters. A design plan was conditionally approved in May 2024. On March 21, 2024, the Company received a permit for excavation and shoring, and during April 2024, the excavation and shoring contractor commenced work. On October 10, 2024, the project company entered into a financing agreement with two local banks for the project, providing a financing framework not to exceed approximately NIS 3.2 billion, including financial credit. As of the date of the financial statements, 228 residential units have been sold in the project for total consideration of approximately NIS 2 billion including VAT.
Vertical City Project, Ramat Gan	A project for the construction of office towers, residential units, and commercial space, including: 400 residential units for high-density construction designated for long-term rental, 350 residential units for student dormitories, public buildings and institutions, and low-rise buildings for office and commercial use. On April 18, 2024, the Company, together with B.S.R. Engineering & Development Ltd. (hereinafter: the "Principal Shareholders") and Vertical City Ltd. (hereinafter: the "Seller"), entered into an agreement with Clal Insurance Company Ltd. and Clal Pension and Provident Ltd. (collectively, the "Purchaser"), whereby the Purchaser will invest a total amount of approximately NIS 160 million in exchange for an allotment of shares (including the provision of a shareholder loan), constituting approximately 24.5% of the issued and paid-up share capital of Vertical. On June 25, 2024, the conditions precedent were fulfilled, and the transaction was completed. Following the completion of the transaction with Clal, the Company holds (indirectly) approximately 55.9% of the project company. On July 28, 2024, the Local Committee resolved to recommend to the District Committee the conditional deposit of a plan to increase the building rights in the complex to a Floor Area Ratio (FAR) of 30, so that following the approval of the plan, the total building rights in the complex will amount to approximately 354 thousand square meters, of which 277 thousand square meters are for office and commercial use, 24 thousand square meters for public buildings, and 53 thousand square meters for rental residential units and student dormitories.

Project Construction Sector in Israel
Project name	Status update
	In light of the signing of sale agreements in significant volumes and proportions, the consolidated company resolved that the building rights for offices totaling approximately 75 thousand square meters, which were previously classified as Investment Property, will be reclassified, effective October 2023, as Long-Term Real Estate Inventory. During February 2025, an agreement was signed with Electra Construction Ltd. for excavation, shoring, and foundation work. As of the date of the financial statements, approximately 25 thousand square meters of office space in the project have been sold.
SHE Project (Formerly Bank Leumi building), Tel Aviv	A 40-story tower with a total area (according to the valid city building plan) of 38,192 square meters (main and service areas), divided as follows: (a) 102 residential units with an area of approximately 10,011 square meters (an average of 87 square meters of main area per unit); (b) office and/or hotel and commercial areas totaling approximately 25,047 square meters; and (c) public buildings totaling approximately 2,370 square meters. On March 20, 2025, a contractor agreement was signed with Solel Boneh, Limited Partnership, for excavation and shoring works. As of the date of the financial statements, 1 residential unit has been sold in the project for total consideration of approximately NIS 32 million including VAT.
Lev Bavli Project	An urban renewal project under the Tama 38/2 licensing track, within which 299 residential units are expected to be constructed. According to the plan, the total above-ground construction area will amount to approximately 37,200 square meters, and the underground construction area will amount to approximately 14,500 square meters. The share of the Bavli Project Company (50% held) in the project is approximately 82%, and accordingly, the number of residential units to be marketed by the Bavli Project Company is approximately 134. On January 6, 2025, a building permit for the project was received. As of the date of the financial statements, 7 residential units have been sold in the project for total consideration of approximately NIS 38 million including VAT.
Hamesila, Herzliya – (Under ICR Israel Canada Rem Holdings Ltd. (42.5%))	A boutique project for the construction of 7 residential buildings, which will include 54 apartments (27 designated for sale). In April 2022, ICR received a building permit for the project. As of the date of publication of the Report, 24 residential units (89% of the units designated for sale) have been sold for total consideration of approximately NIS 172 million including VAT. The execution rate of the project is approximately 74%.
North Park (Under ICR Israel Canada Rem Holdings Ltd. (42.5%))	A residential project in the Neve Gan neighborhood of Ramat HaSharon being executed in three stages and comprising 1,205 residential units. Stage A – A joint venture between ICR and Zemach Hammerman Ltd., including the construction of 14 residential buildings comprising 548 apartments. In December 2023, a full building permit was received for plots 28 and 30. ICR's share in these plots is 50%. In December 2024, a full building permit was received for plot 27. ICR's share in this plot is 75%. As of the date of the financial statements, 388 residential units (approximately 71% of the units designated for sale) have been sold across the aforementioned plots (27, 28, and 30) for total consideration of approximately NIS 1,949 million including VAT. The execution rate on plots 28+30 is 33.8%, and on plot 27 is 13.73%. Stage B (Project "EVE") – A joint venture between ICR and Nof Ironi Development Ltd. in equal shares (50% each), including the construction of 7 residential buildings comprising 401 apartments.

Project Construction Sector in Israel
Project name	Status update
	In December 2023, an excavation and shoring permit was received for all plots included in Stage B (plots 24–26), excluding plot 23 (which includes 70 residential units). In April 2024, the companies entered into a financing agreement for plots 24– 26 with a banking corporation for project financing, whereby the bank provided credit facilities as follows: a facility for sales law guarantees in a total amount not exceeding NIS 865 million, and financial credit facilities totaling NIS 780 million (ICR's share in the facilities is 50%). As of the date of the financial statements, 136 residential units (approximately 34% of the units designated for sale) have been sold in plots 24–26 for total consideration of approximately NIS 742 million including VAT (including approximately 4 Subscription Forms totaling approximately NIS 29 million). Stage C – Plots 18–20, comprising 256 residential units, have not yet commenced sales. On March 30, 2025, an excavation and shoring permit was
Histadrut Givatayim – (Air) (Under ICR Israel Canada Rem Holdings Ltd. (42.5%))	received for plot 20 for the construction of 100 residential units. A project for the construction of 3 residential buildings comprising 333 apartments (216 for marketing) and a commercial area of approximately 1,000 square meters. Marketing of the project began in September 2022. As of the date of the financial statements, 149 residential units (69% of the units designated for sale) have been sold for total consideration of approximately NIS 730 million including VAT. In January 2025, a full building permit for the project was received, and ICR commenced demolition of the existing structures and execution of the project.
Pastoral (Hanatka Street), Jerusalem (Under ICR Israel Canada Rem Holdings Ltd. (42.5%))(2)	An urban renewal ("Pinui-Binui") project on HaNataka Street in the Kiryat HaYovel neighborhood of Jerusalem, currently consisting of 138 residential apartments, under which 4 residential buildings will be constructed comprising approximately 425 residential units and a commercial area of approximately 1,000 square meters. In December 2022, an excavation permit was received for the project. In December 2024, a full building permit was received. As of the date of the financial statements, 100 residential units (35% of the units for marketing) have been sold for total consideration of approximately NIS 351 million including VAT.
Serenity Tel Hashomer, Ramat Gan (Under ICR Israel Canada Rem Holdings Ltd. (42.5%))(2)	A combination transaction for the construction of a building comprising 58 residential units, of which 43% of the residential units in the project are owner held apartments. During February 2025, ICR commenced marketing the project. As of the date of the financial statements, 4 residential units (12% of the units designated for sale) have been sold for total consideration of approximately NIS 13 million including VAT.
Yasmin – Idmit, Givatayim (Under ICR Israel Canada Rem Holdings Ltd. (42.5%))(2)	An urban renewal ("Pinui-Binui") project on 13, 15, and 17 Idmit Street in Givatayim, currently comprising 42 residential apartments, which will be replaced by a residential building with 118 residential units. In December 2024, an excavation permit was received for the project. During February 2025, ICR commenced marketing the project. As of the date of the financial statements, 2 residential units (11% of the units designated for sale) have been sold for total consideration of approximately NIS 9 million including VAT.

Expected main management fees (in NIS thousands) the Company's share, assuming the sale of the entire inventory:

Project		Management Fees	Entitlement date
	100%	Balance of the Company's share in
		recording income to
		be received from
		management fees
Blue Beach Project, Atlit	13,400	3,931	The date of eligibility for receiving the funds has been met, and will actually be collected upon the initiation of banking support for the entire Group. During the Reporting Period, an accompaniment agreement was signed and approximately NIS 4.5 million was received.
Turquoise Project, Tel Aviv	8,320	8,320	According to the cooperation agreement, after approval of a detailed city building plan, a construction cooperation agreement will be signed, which will include, among other things, milestones for receiving the management fees
Blue Beach Project, Herzliya1	14,000	14,000	According to the cooperation agreement, after approval of a detailed city building plan, a construction cooperation agreement will be signed, which will include, among other things, milestones for receiving the management fees
Hod Hasharon (Orange Trail)	24,000	24,000	14 days from the date of sending a notification on the approval of the rezoning plan of the land as detailed in the table in Section 6.3.2.1 above
Netanya Project, Business Village	21,600	21,600	At the time of issuing the first building permit for each of the buildings
Hatzuk Hazfoni, Tel Aviv	15,700	15,700	According to the cooperation agreement, after approval of a detailed city building plan, a construction cooperation agreement will be signed, which will include, among other things, milestones for receiving the management fees
Project Sunset	7,680	7,680	According to the cooperation agreement, after approval of a detailed city building plan, a construction cooperation agreement will be signed, which will include, among other things, milestones for receiving the management fees
Pi Glilot Complex	28,000	28,000	According to the cooperation agreement, after approval of a detailed city building plan, a construction cooperation agreement will be signed, which will include, among other things, milestones for receiving the management fees
Hod Hasharon West	5,520	5,520	According to the cooperation agreement, after approval of a detailed city building plan, a construction cooperation agreement will be signed, which will include, among other things, milestones for receiving the management fees
Total	132,700	129,100

The data in the table does not include future management fees for the Herzliya Harova Hatzfoni project of NIS 500 per square meter of building area that will be approved in the future city building plan.

¹ In this regard, it should be noted that apart from the purchasers who entered into cooperation and management agreements with the Company in the management agreements, other third parties who own approximately 4 dunams of the land have entered into cooperation and management agreements with the Company in relation to the land.

Summary of Data Estimate in Main Projects in Israel (NIS thousands):

	Project name (3)	Company's share in project	Status	Scope of marketing as of Mar. 31, 2025– %	Current scope of marketing– %	Projected date for cash flow withdrawal from Project (15)	Book value (Company's share) Mar. 31, 2025	Expected income balance (100%) as of Mar. 31, 2025	Expected income balance (Company's share) as of Mar. 31, 2025	Average sale price per sq.m (NIS (16) thousands)	Unrecognized gross profit balance (Company's share) (2)	Expected gross profit rate %	Expected surplus balance at project end (Company's share) after tax
									NIS thousands
	New Ramat Hasharon residential rights	81%	Planning / zoning change	97%	97%
	1 New Ramat Hasharon office rights (4)	81%	Planning / zoning change	38%	38%	Not yet determined	6,491	509,695	412,853	N/A	412,853	100%	313,848
	2 Tzamarot Hod Hasharon–Orange Trail	80%	Planning / zoning change	96%	96%	On plan approval date	3,642	14,091	11,273	N/A	7,631	68%	9,518
	3 Hatzuk Hazfoni	100%	In planning	-	-	Not yet determined	63,512	140,800	140,800	N/A	80,494	57%	122,610
	4 Turquoise	100%	In planning	91%	91%	Not yet determined	16,583	21,060	21,060	N/A	4,477	21%	20,079
	5 Glilot Complex Land and Shares (Uptown)	64%	In planning	61%	61%	Not yet determined	54,275	242,924	155,471	N/A	101,196	65%	132,554
	6 Hod Hasharon West	100%	In planning	93%	93%	Not yet determined	1,926	8,352	8,352	N/A	6,117	73%	6,964
7	(5) Lapid Complex, Jaffa	60%	In planning	0%	0%	Not yet determined	185,943	2,509,832	1,505,899	Residential – 115 Hotel – 56	662,846	44%	436,303
8	(10) Beit Mars, Tel Aviv	38%	In planning	0%	0%	Not yet determined	313,598	2,310,453	877,972	Residential – 68 Commercial – 40 Office – 23	239,603	27%	212,185
	9 13 Ahad Ha'am	95%	Occupied	94%	94%	2025	17,128	31,226	29,664	Residential – 88 (calculated based on 2025 sales)	12,551	42%	26,846
	10 Sunset Project (North Tel Aviv)	100%	In planning	44%	44%	Not yet determined	72,971	118,800	118,800	N/A	45,828	39%	109,415'
	11 Canada Business Village Netanya	60%	In planning	37%	37%	Not yet determined	54,956	256,275	153,765	N/A	98,809	64%	131,393
	12 Blue Herzliya beach	0%	In planning	100%	100%	On plan approval date	177	14,000	14,000	N/A	14,000	100%	10,812
13	SHE Project, Tel Aviv (6)	81%	City building plan in force	1%	3%	2030	451,705	2,052,168	1,662,256	Residential – 120 Office – 40 Commercial – 50	599,550	36%	429,921
14	Midtown (Shaarei Zedek), Jerusalem (7)	73%	City building plan in force	31.37%	32%	2030	1,001,509	5,431,524	3,965,013	Residential – 72 Office – 22 Commercial – 40 Residential for lease – 57	765,690	19%	549,204
15	(8) Beit HaNa'ara Complex, Hod Hasharon	50%	City building plan in force	0%	0%	Not yet determined	431,239	2,944,734	1,472,367	42	425,407	29%	227,707
	16 Sde Dov, Tel Aviv (9)	100%	City building plan in force	47.5%	47.7%	2030	1,605,641	3,321,874	3,321,874	Residential – 85 Commercial – 45	766,492	23%	944,945
17	(11) Vertical City, Ramat Gan	55.9%	City building plan in force	33%	33%	2030	371,688	2,093,224	1,170,112	Office – 28	322,691	28%	361,471
18	Dubnov, Tel Aviv (12)	80%	City building plan in force	0%	0%	Not yet determined	383,159	1,693,304	1,354,643	Residential – 90 Office - 35	490,137	36%	348,732
	19 Lev Bavli, Tel Aviv	50%	City building plan in force	5%	10%	2030	74,076	824,750	412,375	Residential - 65	80,250	19%	66,749
	Total						5,110,218	24,539,084	16,808,549		5,136,622		4,461,254

(1) Assuming full realization of inventory. Where there are no actual sales, the Company relies on market prices or Subscription Forms.

(2) Gross profit is calculated in accordance with generally accepted accounting principles and includes financing expenses through receipt of the building permit. It does not include marketing and advertising expenses and includes both revenue from inventory sales and income from the significant financing component (as defined in the accounting staff position).

(3) Beit Mars and Vertical City are projects presented in the Company's financial statements under the investment in affiliated companies section.

(4) Ramat Hasharon – for details, refer to Section B of the Board of Directors' Report.

(5) Lapid, Tel Aviv – the table above includes all expected rights in the project. The interest rate has been updated in accordance with the prime interest rate known at the time of publication of the financial statements. It should be noted that the sale price per square meter for the hotel component reflects a fully finished hotel room at a high standard under a leading hotel brand.

(6) Yehuda Halevi (SHE Project), Leumi Building, Tel Aviv – the table above includes all rights in the project. The interest rate has been updated according to the prime interest rate known at the time of publication of the financial statements. It should be noted that office and commercial rights are presented under the investment property section in the Company's financial statements.

(7) Midtown Jerusalem – the table above includes all expected rights in the project. The interest rate has been updated according to the prime interest rate known at the time of publication of the financial statements. It should be noted that rights related to rental housing, offices, hotels, and commercial space are presented under the investment property section in the Company's financial statements.

(8) Beit HaNa'ara, Hod Hasharon the interest rate has been updated according to the prime interest rate known at the time of publication of the financial statements.
(9) Sde Dov, Tel Aviv the table above includes all expected rights in the project. The book value does not include capitalized nonspecific bond credit. It should be noted that commercial rights are presented under the investment property section in the Company's financial statements.
(10) Beit Mars, Tel Aviv the table above includes the expected rights in the project according to FAR 5. The plan is under the jurisdiction of the local committee.
(11) Vertical City, Ramat Gan the data in the table above includes rights to 75,000 square meters of office space that the project company decided to sell as office units.
(12) Dubnov, Tel Aviv the table above includes all expected rights of the project.
(13) For principal ICR projects, refer to the following tables.
(14) The table does not include land plots Harova Hatzfoni Tel Aviv, Kremenetsky Tel Aviv, and Emek Bracha Tel Aviv.
(15) The presented data does not include expected future management fees in the projects.
(16) The residential sale price includes VAT; for other components, prices are presented excluding VAT.

ICR(1) - Summary of Data Estimate in Main Projects in Israel (NIS thousands):

Projects under construction/marketing

Project name	ICR's share in the project	Purchase date	Construction completion date	Units for marketing in the project	Scope of marketing as of March 31, 2025	Scope of marketing as of the report date	Inventory balance in books March 31, 2025	Unrecognized gross profit balance (2)	Surplus balance expected at project end, including equity invested(3)
								(ICR's share)
								NIS thousands
Yam, Bat Yam	100%	Demolition and reconstruction	2024	165	98%	98%	15,998	3,220	13,825
Jerusalem Blvd., Jaffa	100%	2018	2025	117	100%	100%	-	756	17,477
Hagefen, Bar Kochba, Herzliya - Stage A	100%	Demolition and reconstruction	2024	180	100%	100%	-	-	3,0866
Hagefen, Bar Kochba, Herzliya - Stage B	100%	Demolition and reconstruction	2025	96	98%	98%	-	8,313	66,159
Ocean Park I, Netanya	100%	2019	2025	67	100%	100%	-	99	3,831
Ocean Park II, Netanya	100%	2019	2025	60	100%	100%	4,158	7,838	46,662
Hamesila, Herzliya	100%	2018	2025	27	89%	89%	12,444	7,274	11,607
Hahistadrut Air, Givatayim	100%	Demolition and reconstruction	2028	216	69%	69%	308,327	317,078	187,358
Serenity, Tel Hashomer, Ramat Gan	100%	2017	2028	33	12%	21%	2,777	18,750	11,929
Yasmin (Idmit), Givatayim	100%	Demolition and reconstruction	2028	76	1%	9%	14,573	73,296	51,608
Pastoral, Jerusalem	100%	Demolition and reconstruction	2028	287	35%	37%	69,592	278,077	216,249
Neve Gan, North Park, Ramat Hasharon (Stage A)4	57.8%	2021	2028	548	71%	71%	674,561	203,797	297,3587
5 North Park, Ramat Hasharon (Stage B)	50%	2021	2028	401	33%	33%	600,492	145,937	210,466
Total projects under construction							1,702,922	1,064,435	1,137,615

(1) ICR is held by the Company at a final indirect holding rate of 42.5% and is presented in the financial statements under investment in affiliated companies. After the acquisition of ICR, a purchase price allocation in the amount of approximately NIS 92 million was attributed to construction-in-progress inventory and land inventory (Company's share: 42.5%). As of March 31, 2024, the remaining balance of the purchase price allocation is approximately NIS 8 million (after amortization).
(2) Gross profit does not include the project's marketing and advertising costs and includes both revenue from inventory sales and income from the significant financing component (as defined in Accounting Staff Position 11-5 of the Israel Securities Authority). Additionally, revenue does not include income from commercial space.
(3) The project's surplus represents equity invested and the remaining expected profit after tax, net of amounts released and withdrawn from the financing account.
(4) ICR's share in the project 50% in three of the lots (28–30) out of four, and 75% in Lot 27 giving ICR a weighted holding rate of approximately 58% in the project.

(5) ICR's share in Park Tzafon Stage B, Lots 23–26, is 50%.

(6) It should be noted that ICR's surpluses in the Gefen Project, Bar Kochva, Stage A and Stage B are pledged to an institutional body as collateral for a loan, the balance of which as of March 31, 2025, is NIS 30 million. The surplus amount in Stages A and B is stated before deducting the said loan.
(7) It should be noted that ICR's surplus in Park Tzafon Stage A is pledged to an institutional body as collateral for a loan, the balance of which as of March 31, 2025, is NIS 141 million. The project's surplus amount is stated before deducting the said loan.
(8) In the projects EVE, Jasmin Givatayim, and Serenity Tel Hashomer the Sale Agreements are subject to fulfillment of precedent conditions including, among others, receipt of a building permit. The Sale Agreements may be canceled if the precedent conditions are not fulfilled within a period of 12 to 24 months from the date of signing the Sale Agreement.

Planning projects/land reserves

Project name	ICR share	Purchase date	Construction rights in the project	Book cost as of March 31, 2025	Average sale price per square meter	Expected gross profit	Equity invested in the project	Expected surpluses at the end of the project including equity (after tax)
			Current					(ICR's share)
			planning status	Requested planning status				NIS thousands
Herbert Samuel, Tel Aviv	33%	2016	Approximately 3,600 square meters	Approximately 12,000 square meters for residential, commercial, and hotel	82,918	TBD	TBD	36,751	TBD
Complex 12, Netanya (combination deal)	100%	2023	Approximately 65 residential Approximately 200 residential units and public units and public spaces spaces		98	29,203	62,167	98	32,265
Ha'ari, Netanya (combination deal)	100%	2023	Agricultural land	255 residential units and approximately 575 square meters of commercial and office space	---	25,527	76,488	---	39,823
North Park, Neve Gan, Ramat Hasharon (Stage C)2	100%	2021	256 residential units and 943 square meters commercial	-	689,922	49,006	205,837	242,681	318,957
Total projects in planning/land reserves					722,938		344,492	279,530	391,045

¹ The data does not include commercial areas.

Urban Renewal

Projects over 67% signatures

Project name		Project description		Main contingencies for the start of the project	Percentage of tenants who agreed and signed as of the balance sheet date	Planning status	Average sale price per sq.m**	Expected construction start date	Expected construction conclusion date	Expected revenue	Expected gross profit2	Balances expected at the completion of the project (after tax)
	Housing units	Housing units for	Sq.m								(ICR's share)
	in the project	marketing	commercial								NIS thousands
Hatzofim Complex, Lod	310	262	1,450	100% agreement from the	92%	Approved city building plan. The design plan was approved under conditions that do not delay the initiation of the permit application. Applications have been submitted for excavation and shoring permits, as well as a full construction permit for half of the complex (southern part).	19,813	2026	2030	573,652	109,582	61,343
Dizengoff Hameyasdim, Netanya	191	129	528	tenants, approval of New city building plan and construction permit	93%	Approved city building plan. An information file has been obtained. An application for an excavation and disposal permit has been submitted.	26,788	2026	2030	424,645	78,926	44,084
Gapunov Complex, Ashdod	756	588	4,306		85%	The local committee signed the plan documents and they were submitted to the district committee.	23,488	TBD	TBD	1,370,979	225,909	110,383
Rothschild, Bat Yam*	560	395	1,650		98%	A plan for the unification and division of the complex was approved. At present, the design	32,096	TBD	TBD	741,390	154,096	99,523

Project name	Project description		Main contingencies for the start of the project	Planning status	Average sale price per sq.m**	Expected construction start date	Expected construction conclusion date	Expected revenue	Expected gross profit2	Balances expected at the completion of the project (after tax)
	Housing units	Housing	Sq.m							(ICR's share)
	in the project	units for marketing	commercial							NIS thousands
Katamonim, Jerusalem	440	295	800	99%	plan for the complex is being promoted. A discussion of the design plans is expected to take place in the coming months, and an information file was obtained. An excavation and disposal permit was approved by the local committee in January 2025, and the planning team is working on fulfilling the conditions for receiving the permit. At the same time, an amended city building plan for additional floors and additional residential units (474 units instead of 440), without additional rights, was approved for submission to the local committee and will be submitted for public objections in the near future.	30,347	2026	2030	1,096,220	278,067	172,384
86 Bar Kochva Street, Herzliya	74	50	175	73%	The city building plan is under the authority of a local committee which is entrusted with its deposit. The planning team is currently working	33,985	TBD	TBD	170,759	39,282	22,798

Project name	Project description		Main contingencies for the start of the project	Planning status	Average sale price per sq.m**	Expected construction start date	Expected construction conclusion date	Expected revenue	Expected gross profit2	Balances expected at the completion of the project (after tax)
	Housing units	Housing	Sq.m							(ICR's share)
	in the project	units for marketing	commercial							NIS thousands
					on completing the conditions for submitting the plan.
Brodetsky Street, Tel Aviv	166	70	---	96%	In October 2023, the design plan was approved, ICR submitted an application for building permits, which was approved by the committee and is now in the design review process with the Control Institute.	50,383	2025	2028	413,770	89,538	56,491
(Gordon) Rabbi Akiva, Herzliya	170	114	---	86%	A plan under the authority of a local committee. Deposited on April 21, 2023 and approved for validity. ICR is currently working on a design and planning plan for a building permit.	33,861	TBD	TBD	349,542	68,996	37,872
Kukis, Bat Yam	171	114	2,348	98%	The plan met the threshold conditions in the District Committee, awaiting the plan's inclusion for discussion and submission.	30,902	TBD	TBD	410,880	81,223	44,665
Katznelson, Yehud (including commercial)	923	651	450	86%	The city building plan was approved and the planning process has commenced for the approval of the	25,536	TBD	TBD	1,669,596	250,137	117,363

Project name	Project description		Main contingencies for the start of the project	Planning status	Average sale price per sq.m**	Expected construction start date	Expected construction conclusion date	Expected revenue	Expected gross profit2	Balances expected at the completion of the project (after tax)
		Housing								(ICR's share)
	Housing units in the project	units for marketing	Sq.m commercial							NIS thousands
					complex plan. At the same time, a request was submitted to receive an information file.
Abba Hillel Rashi, Ramat Gan	200	128	370	84%	The city building plan has been approved for validity and the planning process has begun. A full planning team has been appointed and meetings are being held with the Ramat Gan Municipality to submit a design plan.	34,550	TBD	TBD	454,653	82,807	45,469
Salomon, Netanya	317	213	367	88%	The city building plan, under the authority of the Netanya Local Committee, is in the process of preparing the plan documents for submission.	26,863	TBD	TBD	675,240	105,514	50,518
Somken, Tel Aviv	454	292	400	73%	ICR prepared city building documents and they were submitted to the District Planning Bureau for a threshold condition review, which is currently underway.	30,884	TBD	TBD	850,928	165,220	88,776
Frug, Ramat Gan	385	237	---	78%	The plan is under the authority of a local committee. A pre-ruling is taking place with the local	36,443	TBD	TBD	782,020	134,937	68,582

Project name	Project description		Main contingencies for the start of the project	Planning status	Average sale price per sq.m**	Expected construction start date	Expected construction conclusion date	Expected revenue	Expected gross profit2	Balances expected at the completion of the project (after tax)
	Housing units	Housing	Sq.m							(ICR's share)
	in the project	units for marketing	commercial							NIS thousands
					and district committees in preparation for selecting a preferred planning alternative.
Pninat Ayalon, Tel Aviv	137	68	44,410	73%	ICR submitted zoning plan documents to the District Committee for the purpose of advancing the planning of the site. In coordination with the Tel Aviv Municipality, the submitted plan was continued and ICR is now working with the planning teams of the Tel Aviv Municipality and the local committee on a resubmission to the district committee.	44,372	TBD	TBD	798,533	217,560	133,776
Meonot Sarah, Herzliya	645	401	1,078	71%	At the request of the municipality of Herzliya, ICR is correcting the plan documents for the purpose of meeting threshold conditions and holding a discussion in the local committee	36,185	TBD	TBD	1,337,632	251,289	133,651
Hara-Negba, Ramat Gan	258	159	191	74%	The plan is under the authority of a local committee. A pre-ruling is taking place with the local and district	32,822	TBD	TBD	519,237	78,820	36,171

Project name		Project description		Percentage of tenants who agreed and signed as of the balance sheet date	Planning status	Average sale price per sq.m**	Expected construction start date	Expected construction conclusion date	Expected revenue	Expected gross profit2	Balances expected at the completion of the project (after tax)
	Housing units	Housing	Sq.m							(ICR's share)
	in the project	units for marketing	commercial							NIS thousands
					committees in preparation for selecting a preferred planning alternative.
Haifa Struma (Stage A)	826	622	500	78%	The plan is currently under the authority		TBD	TBD	1,420,854	246,160	125,469
Haifa Struma (Stage B)	867	674	1,303	72%	of the District Committee, and the	20,320	TBD	TBD	1,485,793	257,932	129,421
Haifa Struma (Stage C)	715	555	1,400	69%	Company is working to complete the conditions in coordination with the Urban Renewal Authority, for the purpose of submission.		TBD	TBD	1,236,860	207,257	101,753
Hahagana Road, Tel Aviv	346	218	500	69%	The plan is in the pre-ruling stage. Discussions are underway with the local authority on the matter.	31,171	TBD	TBD	642,863	137,936	77,120
Havered A, Or Yehuda	350	262	---	69%	The shadow plan was discussed by the local committee and it was decided to approve it. The Rose Complex plan was discussed by the local committee and it was decided to remand it for further discussion after a number of additions. Following the additional discussion, the plan will be submitted for threshold conditions	24,515	TBD	TBD	730,831	146,931	79,761

Project name	Project description			Planning status	Expected revenue	Expected gross profit2	Balances expected at the completion of the project (after tax)
	Housing units	Housing	Sq.m			(ICR's share)
	in the project	units for marketing	commercial			NIS thousands
				at the District
				Committee.
Total Urban Renewal	9,261	6,497	62,226		18,156,877	3,408,119	1,837,373

The data does not include commercial areas.

* ICR owns 50% of the project

**Average price per square meters, excl. VAT

Projects below 67% signatures

Project name		Project Description		Main Percentage of contingencies for tenants who agreed the start of the and signed as of the project balance sheet date		Planning status	Average sale price per sq.m**	Expected revenue	Expected gross profit2	Surplus expected at the completion of the project (after tax)
	Residential units in in the	Residential unit for	Sq.m					(ICR's share)
	project	marketing	commercial				NIS thousands
Havered B, Or Yehuda	350	262	---	100% agreement from the tenants, approval of new city building plan and	50%	The shadow plan was discussed by the local committee and it was decided to approve it. The Havered Complex plan was discussed by the local committee and it was decided to remand it for further discussion after a number of additions. Following the additional discussion, the plan will be submitted for threshold conditions at the District Committee.	24,515	732,044	144,366	77,628
Enzo Sereni, Givatayim	736	424	12,137	construction permit	11%	A detailed city building plan has been approved in the district. ICR intends to promote a consolidation and division plan in the local committee.	29,274	928,029	187,356	101,892

Project name	Project Description			Percentage of tenants who agreed and signed as of the balance sheet date	Planning status	Average sale price per sq.m**	Expected revenue	Expected gross profit2	Surplus expected at the completion of the project (after tax)
	Residential units in in the	Residential unit for	Sq.m commercial				(ICR's share) NIS thousands
Rabbi Akiva, Rasko, Holon	project 492	marketing 309	330	62%	The plan, under the authority of a local committee, was discussed for submission to the local committee; it was decided to conditionally approve the submission. The planning team is working on updating documents accordingly, in preparation for the	29,494	938,412	171,688	88,784
Tel Aviv, De Haas	29	19	288	61%	actual submission of the plan. The plan is submitted within the framework of National Master Plan 38/2 in Tel Aviv, District 4. ICR is advancing the plans for a building permit.	59,483	116,504	31,896	19,510
Pinkas, Tel Aviv	61	33	---	46%	Upon signing the required majority, the Company intends to submit building permits under the Tel Aviv neighborhood plan. Early planning to initiate a permit application.	56,987	155,983	30,787	16,562
Har Zion/Ha'amal, Tel Aviv	140	60	8,658	29%	ICR intends to promote a detailed plan for the project together with the Tel Aviv Municipality.	46,703	360,821	65,204	33,488
Pirchei Aviv, Tel Aviv	215	129	36	38%	ICR intends to promote a detailed plan for the project together with the Tel Aviv Municipality.	45,592	478,678	92,980	49,622
Hagibor Ha'almoni, Tel Aviv	180	100	383	50%	The plan is in the pre-ruling stage, and discussions are taking place with the local authority regarding the planning and policy in the area.	38,830	344,700	66,555	35,412
Sheshet Hayamim, Netanya	301	207	550	0%	ICR intends to promote a detailed plan for the project together with the Netanya Municipality.	26,959	599,699	103,291	51,583
Mishmar Hayarden, Givatayim	290	178	---	49%	ICR began working to prepare a master plan under the authority of the District Committee. At this point, a pre-ruling vis-a-vis the local committee began.	42,060	688,940	132,293	70,192
Total Urban Renewal	2,794	1,721	22,382				5,343,810	1,026,418	544,673

* ICR owns 50% of the project **Average price per square meters, excl. VAT

Forward-Looking Information

It is emphasized that the Company's assessments above, including projections and estimates regarding rezoning of land and/or scope of building rights on land and/or receipt of building permits, timelines for commencement and completion of construction in the projects, including the expected date for drawing cash flows from the project, total expected revenues, average price per square meter, total and percentage gross profit expected in the projects, remaining surplus including equity investment estimates, projected cash flow to be received (Company's share), and management fees in the various Company projects, which are subject to the conditions detailed in the table above, constitute "Forward-Looking Information" (as defined in the Securities Law, 5728-1968), based on the Company's experience and that of its project partners, and on full realization of inventory at prices consistent with actual sales. These parameters are largely dependent on external factors, such as obtaining the required permits for execution of the projects, including rezoning of the Company's lands (both in terms of receiving them at all, and receiving them within the timeframe anticipated by the Company and its project partners), including zoning plan changes in relation to urban renewal projects, and obtaining signatures from all current owners on the agreements; the Company's compliance with various authorities' requirements and receipt of the relevant permits; cooperation between partners, decisions made during project execution, and provision of the required equity (including by the Company) in accordance with the signed agreements; the partners' compliance with the conditions of the financing agreements related to the relevant projects (including equity provisions) and nonoccurrence of events of default therein; engagement in financing agreements for projects not yet commenced; engagement with contractors and other suppliers for projects not yet commenced and cost estimates based on current market conditions; effects due to the "Iron Swords War" as detailed in Section B.3 below; regulatory developments that may apply to urban renewal projects and/or changes and/or intensification of regulation in the Company's various areas of operation; actual construction and financing costs upon their occurrence (which may deviate from the Company's estimates, including materially); maintenance of current real estate market sale prices (which may change, including materially, inter alia due to shifts in the economic environment in which the Company operates, such as rising interest rates and inflation as detailed in Section B.6, and increases in construction costs and the Construction Inputs Index as detailed in Section B.7 below, and frequent changes in tax regulation); and decisions of authorities regarding approval of land designation plans – and there is no certainty that these matters will indeed occur as expected. These factors may significantly alter the Company's estimates as detailed above.

According to the Company's assessment, as of this date, the primary factors that may prevent the forward-looking information from materializing are: that there will be no rezoning of the Company's lands and/or no changes to the city building plans in accordance with the intentions of the Company and its partners; that the construction of the projects will not be possible or will be delayed due to various reasons such as the Company's failure to meet regulatory requirements for receiving permits and/or failure to obtain appropriate permits for the projects, or obtaining them later than anticipated by the Company; non-compliance by the partners with the financing agreements signed in connection with the relevant projects (including provision of equity) or the occurrence of any of the immediate repayment events stipulated therein, which may, if triggered, lead to a demand for immediate loan repayment; the Company not entering into financing agreements for the relevant projects; contractors or other suppliers involved in the projects encountering financial difficulties; any of the Company's investors and/or partners in the relevant projects experiencing financial hardship that prevents them from continuing to fund their share of the projects; deviations from the anticipated scope of the projects due to increases in construction costs as detailed in Section B.7 below (including labor shortages), taxes and/or levies imposed on land acquisition and development, and the like; the effects of the Iron Swords War as detailed in Section B.3 below; deterioration in the economic environment, including the impact of rising interest rates and inflation as discussed in this Board of Directors' Report, which could negatively affect the pricing environment in which the Company operates, leading to a decrease in the scope of sales forecasted by the Company and a decrease in gross profit as stated above, and accordingly, a decrease in the Company's surplus in various projects. Therefore, there is no certainty that the above information will materialize, and it may differ materially from what is stated above.

B.1. Financial condition

As of March 31, 2025, the total assets of the Company amount to approximately NIS 11,088 million, compared to approximately NIS 10,956 million as of December 31, 2024. The increase in the total assets of the Company as of March 31, 2025, is explained below:

	As of As of		As of
	March 31, 2025	March 31, 2024	December 31, 2024	Explanations for the main changes that took place compared to Dec. 31, 2024
	NIS thousands	NIS thousands	NIS thousands
		Current assets
Cash and cash	401,626	127,383	410,276	Refer to Section B.4. Liquidity below.
equivalents				The decrease in the balance stems from receipts
Cash and deposits used in financing accounts	92,670	-	566,068	acquired in financing accounts in the Rainbow and Midtown Jerusalem projects, which repaid bank loans, and were used for payment of the betterment levy in the Midtown Jerusalem project.
Financial assets at fair value through profit and loss	89,881		129,192	The decrease in the balance is mainly due to the decrease in the fair value of the shares of Norstar Inc. (hereinafter: "Norstar"). For more information, refer to Note 5a to the Company's Consolidated Financial Statements.
Receivables for the sale of real estate inventory 52,320 and apartments under construction		75,873	19,280	The increase in the balance is mainly due to sales of land units in the northern district of Herzliya and in the Ramat Hasharon project.
Accounts receivable	117,674	108,684	126,481	---
Income tax receivables	7,471	8,643	5,920	---
Accounts receivable for hotels	44,183	33,965	41,233	---
Real estate inventory	458,670	686,768	320,758	The increase in the balance is mainly due to the purchase of land in Harova Hatzfoni of Herzliya for approximately NIS 138 million.
Inventory of buildings under planning and construction	2,945,110	1,951,186	2,625,023	The increase in the balance is mainly due to investments in the Midtown Jerusalem project totaling approximately NIS 260 million.
Advances on account of real estate inventory	16,250	-	47,780	The decrease in the balance is mainly due to the recognition of income from land in Harova Hatzfoni of Herzliya.
Total current assets	4,225,855	3,095,161	4,292,011
		Non-current assets
Investments and loans in investee companies accounted for				---
using the equity method, net	1,330,471	1,176,845	1,305,859
Long-term real estate inventory	1,162,407	754,451	1,145,810	---
Investment real estate	3,041,022	2,598,974	2,893,000	The increase in the balance is mainly due to investments made in the Midtown Jerusalem project totaling approximately NIS 126 million.
Advances on account of investment real				---
estate	17,695	15,895	13,486
Fixed assets	817,060	616,388	807,495	---
Advances on account of fixed				---
assets	-	1,113	1,382

	As of March 31, 2025 NIS thousands	As of March 31, 2024 NIS thousands	As of December 31, 2024 NIS thousands	Explanations for the main changes that took place compared to Dec. 31, 2024
		Current assets
Limited use cash and deposits, long term	6,333	5,140	5,266	---
Right of use asset	419,586	287,812	425,912	---
Accounts receivable	7,863	6,370	7,066	---
Deferred tax assets	32,396	43,472	31,771	---
Investments and other assets	27,212	26,588	27,242	---
Total non current assets	6,862,045	5,533,048	6,664,289
Total assets	11,087,900	8,628,209	10,956,300

	As of	As of	As of	Explanations for the main changes that took place compared to Dec. 31, 2024
	March 31, 2025	March 31, 2024	December 31, 2024
	NIS thousands	NIS thousands	NIS thousands
	Current liabilities
Credit from bank corporations and current maturities of long-term loans	2,625,572	3,231,262	2,866,946	The decrease is mainly due to the classification of a loan in the Eurocom House project as long-term due to the extension of the loan for an additional period of two years.
Current maturities 269,254 of bonds		88,337	269,101	---
Current maturities of long-term lease liability	22,165	16,330	21,060	---
Suppliers and service providers	41,165	26,234	36,345	---
Accounts payable	265,611	102,458	163,244	The increase in the balance is mainly due to the recording of a provision for levies.
Current tax liability	11,475	11,412	17,515	---
Liability for provision of construction services	4,200	5,895	4,360	---
Advances for the sale of real estate inventory and building inventory under planning and construction	533,393	52,360	421,240	The increase in the balance is mainly due to payments made by buyers in the Midtown Jerusalem and Rainbow projects. The project company in the Rainbow project has not yet recognized revenue in accordance with the International Financial Reporting Standard IFRS15. The Midtown Jerusalem company has begun recognizing revenue in accordance with the rate of progress (approximately 2%) in accordance with the International Financial Reporting Standard IFRS15.
Loans from others	2,514	2,409	2,502	---
Total current liabilities	3,775,349	3,536,697	3,802,313
Non-current liabilities
Long-term loans from banks	2,117,916	718,345	2,001,362	The increase is mainly due to the reclassification of a loan in the Eurocom House project from short-term to long-term due to the extension of the loan for an additional two-year period.
Loans from others and other liabilities	9,739	26,131	10,175	---
Bonds	1,050,788	788,418	1,055,667	---
Lease liability	439,066	298,077	442,578	---
Deferred tax liabilities	159,539	190,876	169,335	---
Liability for provision of construction services long term	570	3,562	855	---
Other non-current liabilities	11,498	11,639	11,627	---
Total non current liabilities	3,789,116	2,037,048	3,691,599
Total equity (including non controlling interests)	3,523,435	3,054,464	3,462,388	---
Total liabilities and equity	11,087,900	8,628,209	10,956,300

Equity

The Company's total equity attributable to the Company's shareholders as of March 31, 2025, and as of December 31, 2024, amounted to approximately NIS 2,556 million and approximately NIS 2,486 million, respectively.

Working Capital

As of March 31, 2025, the Company had positive working capital in the consolidated report totaling approximately NIS 451 million, compared to positive working capital of approximately NIS 490 million as of December 31, 2024. The decrease in working capital results from a reduction in current assets alongside a smaller decrease in current liabilities, as detailed above. In the solo report, the Company has positive working capital. Refer to Section B.6 of this Report.

B.2. Results of Operations

	For the 3 months ending March 31		For the year ending December 31	Explanations for the significant changes that occurred compared to the 3 months that ended on March 31, 2024
	2025	2024	2024
Revenues:
Rental and management of investment real estate	21,796	19,029	80,215	---
Revenue from the sale of real estate inventory	39,583	2,519	11,679	The increase in revenue compared to the corresponding period last year is mainly due to revenues for the sale of land units in the office project in Ramat Hasharon and land units in the Harova Hatzfoni project in Herzliya.
Revenue from the sale of residential apartments	22,722	36,791	61,115	The balance in the period stems from sales in the Midtown Jerusalem project in the amount of NIS 11 million and, in accordance with the pace of progress in the project, sales in the Ahad Ha'am project in the amount of NIS 11 million. The balance in the corresponding period last year stems from sales in the Ahad Ha'am project in the amount of NIS 36 million.
Revenue from renting real estate inventory	6,107	6,492	25,344	---
Revenue from management fees	4,511	-	1,645	The balance in the period stems from management fee income in the Blue Atlit project.
Revenue from operation and management of hotels	55,928	66,047	291,017	---
Marketing and brokerage revenue	4,768	2,657	25,714	---
Revenue from provision of construction services	446	644	4,886	---
Appreciation of fair value of investment real estate and profit from its exercise	-	1,091	66,371	---
Company's share in investments accounted for using the equity method, net	16,897	46,390	200,760	The decrease is mainly due to the revenue from Morgal in Russia, which was recorded in the corresponding period last year.
Other revenues	536	-	5,490
Total revenue	173,294	181,660	774,236
Expenses and costs:
Cost of rent	10,082	8,891	42,961	---
Cost of sale of real estate inventory	19,618	1,046	7,848	The balance during the period stems mainly from the sale of land units attributed to the Rova Hatzfoni project in Herzliya.
Cost of sale of residential apartments	16,461	23,139	45,335	The balance stems mainly from the Ahad Ha'am project and the pace of the project's progress over the years.
Cost of operating and managing hotels	60,937	51,770	257,682	The increase in operating costs compared to the same period last year is mainly due to an increase in the cost of hiring employees due to an increase in operating costs in light of the departure of residents from the north and south of Israel who were evacuated as a result of the war.

		For the 3 months ending March 31	For the year ending December 31	Explanations for the significant changes that occurred compared to the 3 months that ended on March 31, 2024
	2025	2024	2024
Reduction of fair value of investment real estate	15,182	10,082	38,963	A decrease in the value of investment real estate for the relevant period is mainly due to the capitalization of financing costs that were capitalized into assets and written off to profit and loss.
Expenses for construction services	446	644	4,886	---
Management and general expenses	12,519	20,233	59,821	The decrease in management and general expenses is mainly due to the provision for an expected bonus for the chairman and CEO in accordance with the Company's terms of service and compensation policy, which was in place during the corresponding period last year (approximately NIS 0 million compared to approximately NIS 6 million last year).
Marketing and sale expenses	11,457	7,991	38,661	---
Company's share in loss of investments accounted for using the equity method, net of tax	12,329	10,853	17,827	---
Other expenses	-	(447)	-	---
Total expenses and costs	159,031	134,202	513,984
Operating profit	14,263	47,458	260,252
Changes in financial assets measured at fair value	(38,750)	10,693	36,911	The loss is mainly due to impairment for an investment in Norstar shares, the profit in the same period last year was due to appreciation in an investment in Norstar shares and Alrov shares (which were sold in the first quarter of 2024).
Financing income	18,310	8,254	54,114	The increase compared to the same period last year is mainly due to interest income on deposits.
Financing expenses	(25,566)	(25,868)	(133,280)	---
(loss) Profit before tax on income	(31,743)	40,537	217,997
Income tax	7,674	(307)	13,681	---
(loss) Profit for period	(24,069)	40,230	231,678
Exchange differences on translating foreign operations	(1,627)	(12,230)	(6,072)	The decrease in translation differences compared to the same period last year is mainly due to project activity in Russia.
(Loss) gain on revaluation of fixed assets, net of tax	(451)	-	135,539	---
Total comprehensive (loss) profit	(26,147)	28,000	361,145

B.3. Iron Swords War

Further to Section 5.1 of the Description of the Corporation's Business Report in the Company's 2024 Periodic Report and Note 4(q) to the Company's consolidated financial statements as of December 31, 2024, the main effects of the "Iron Swords War" (the "War") on the Company's operations as of the Report Date are as follows:

With respect to the Company's development projects under construction, as of Q1 2025 and the publication date of this Report, activity at the sites is proceeding as usual, and therefore there is no material impact on the progress of the Company's projects. It is clarified that to the extent any sites do not operate at full capacity, this would lead to an increase in financing costs and construction costs (and accordingly, a reduction in project surpluses) as well as an increase in rent expenses paid to owners of existing residential units in urban renewal projects.

Regarding marketing aspects, refer to the table at the beginning of this Board of Directors' Report.

The Iron Swords War has caused a shortage of professional labor at construction sites and an increase in the cost of raw materials needed for project execution, leading to higher construction execution costs, both in projects where a construction agreement has yet to be signed, and in projects where the execution agreement is linked to the Construction Inputs Index. This is reflected both in the sharp rise of the Construction Inputs Index in January 2025 and in the announcement by the Central Bureau of Statistics of an additional significant increase expected by the end of 2025. In addition, the continuation of the War may lead to extended construction timelines and delays in project completion dates. The War has also contributed to increased inflation, which maintains a high-interest environment. In light of the situation, the Company has updated its forecasts for construction costs based on its estimates and the actual contractor agreements signed. Conversely, the Company's revenue estimates for the projects have also been updated, in light of rising sales prices, based on actual sales of residential units in various projects.

As stated, as of the publication date of the Report, the impact of the War on the Company's operational results exists but is not material. However, should "Operation Gideon's Chariots" progress and/or should additional fronts open beyond those currently active, the Company's estimates may change, including materially.

With regard to the Company's income-producing properties, as of the publication date of the Report, the vast majority of tenants are paying full rent without concessions (such as deferred payments) which were granted in specific cases at the beginning of the War. According to the Company's assessment, at this stage no significant impact on the Company's revenue is expected as a result, and there appears to be stability in the occupancy rates of the Company's income-producing properties.

With respect to the Company's hotel segment – hotel operations in Israel are influenced by the unique characteristics of the tourism sector as well as by economic and security factors that directly impact this field. Through the end of 2024, the War did not have a material impact on the hotel company's results, due to high occupancy in the Company's hotels stemming from hosting residents evacuated from the south and north in accordance with need and emergency directives, with the level of expenses (including furloughs and staff leave as necessary) adjusted to match the level of activity during this period. However, during the Reporting Period, most of the residents from the south and north vacated the Company's hotels, which, together with seasonal industry trends, affected hotel operating results in Q1 2025.

Additionally, after the Reporting Period, foreign airlines announced flight cancellations to Israel—some for a few days, others for extended periods (still ongoing). In the Company's assessment, should foreign airlines not resume operations in Israel, this would impact inbound tourism and consequently affect the hotel company's operations and results in upcoming quarters.

It is noted that a prolonged and/or intensified Iron Swords War and its impact on the tourism industry as a whole (both domestic and international) could affect demand for the Company's hotels and impact the business results of the Company's hotel operations in the coming quarters—whose extent cannot currently be assessed.

Possible Impacts of Prolongation and Expansion of the War:

A further prolongation of the fighting and/or an expansion of the War into additional fronts with high intensity may materially impact the Company's operations, as they may lead to: (1) Cancellation/reduction of projects and delays in the pace of initiation procedures and entry into new projects; (2) Delays in the planning, permitting, and execution processes of the projects, potentially leading to delays in completion and delivery of the projects to purchasers; (3) Decline in the financial resilience of subcontractors and key suppliers; (4) Increase in construction costs (including due to labor shortages) and a significant rise in the Construction Inputs Index; (5) A material decrease in demand for residential units / office space / commercial areas marketed by the Company (due to potential purchasers/tenants' impaired financial capacity, decisions by Bank of Israel imposing marketing restrictions on banks, deteriorated public sentiment, and uncertainty inherent in wartime periods); (6) Decline in sale/rental prices and/or tenant departures; (7) Restrictions on the volume of bank credit available to the real estate sector, increased equity requirements for project funding

(including Company-contributed equity), more stringent financing terms, and delays in the provision of financing required for the Company's operations (which is also conditioned, inter alia, on the pace of marketing residential units/offices/leasing of space in the projects); (8) Oversupply of leasable space that would affect capitalization rates and the Company's projected NOI; (9) Non-fulfillment of obligations by purchasers/tenants toward the Company; (10) Impact on domestic and inbound tourism, which may affect occupancy levels in the Company's hotels and consequently impact revenues and profitability in this segment.

As of the date of approval of this Report, and in light of the fact that this is a dynamic event characterized by great uncertainty—particularly with respect to Israel's approach to the War, potential further expansion of the War to additional arenas, the date on which the War will end, and indirect consequences that may result—there is difficulty in predicting the intensity of the event and the extent of the continued War's impact on the Company's future operations. In the Company's assessment, if the War continues for a prolonged period and/or expands to additional arenas, it may result in a broader impact on operations across large areas of Israel, alongside risks of infrastructure damage and a broader, more significant disruption to economic activity. This may significantly and extensively impact the overall economy and the real estate sector, as noted above and in Section 5 of the Periodic Report.

B.4. Liquidity

The Company's cash and cash equivalents as of March 31, 2025, totaled approximately NIS 402 million, compared to approximately NIS 410 million as of December 31, 2024—a decrease of approximately NIS 8 million in cash balances, as detailed below:

Cash from Operating Activities

The main changes in cash flow from operating activities resulted from purchases and investments in land inventory totaling approximately NIS 411 million and from a net loss of approximately NIS 24 million. These were partially offset by an increase in advances from the sale of real estate inventory and planned/construction-stage buildings totaling approximately NIS 112 million, and by a loss from fair value adjustment of financial instruments at fair value through profit or loss in the amount of approximately NIS 39 million.

Total cash used for operating activities amounted to approximately NIS 287 million.

Cash from Investing Activities

The cash flow was mainly derived from changes in cash and restricted deposits totaling approximately NIS 472 million, partially offset by purchases and investments in investment property, net, totaling approximately NIS 129 million.

Total cash generated from investing activities amounted to approximately NIS 311 million.

Cash from Financing Activities

Cash was mainly used for repayment of long-term loans totaling approximately NIS 497 million. This was partially offset by proceeds from issuance of shares, net, totaling approximately NIS 124 million, receipt of long-term loans from banking corporations totaling approximately NIS 283 million, and net proceeds from short-term credit from banking corporations totaling approximately NIS 77 million.

Total cash used for financing activities amounted to approximately NIS 32 million.

B.5. Sources of Financing

The Company's principal sources of financing:

1. Bonds (Series F) refer to Section D below.
1. Bonds (Series G) refer to Section D below.
1. Bonds (Series H) refer to Section D below.
1. Loans obtained by the Company from time to time for the purpose of financing projects and/or land and/or assets, including in the Sde Dov Tel Aviv Project, Midtown Tel Aviv, Midtown Jerusalem, and Vertical City – "Stock Exchange District."
1. The average balance of short-term credit of the Company, including bank credit, loans from others, current maturities of bonds, and current maturities of long-term loans, amounted to approximately NIS 3 billion.
1. The average balance of long-term liabilities, including bank credit, loans from others, and bonds, amounted to approximately NIS 3 billion.
1. The average balance of supplier liabilities amounted to approximately NIS 38 million.
1. Issuance of shares totaling approximately NIS 124 million, as detailed in Note 4f to the financial statements as of March 31, 2025.
1. Expansion of Bond Series H totaling approximately NIS 210.8 million, as detailed in Note 5d to the financial statements as of March 31, 2025.

Details regarding the Company's compliance with the financial covenants of its material loans3 , in addition to Bonds (Series F), Bonds (Series G), and Bonds (Series H), whose terms are detailed in Section D below, are presented hereunder:

	Loan	Borrower corporation (loan provision date)	Original loan framework amount (NIS thousands)	Principal balance as of March 31, 2025 (NIS thousands)	Financial conditions / commitment to no changes of control	Manner of calculation of financial covenants and their results as of March 31, 2025
1.	Local bank4	The Company and subsidiaries held at a rate of between 60%-100%	Refers to all the loans given by the local bank to the companies in the Group (including the Rainbow project, Tel Aviv)	2,467,342	(a) The Company's consolidated equity, excluding non-controlling interests, must not at any time be less than an amount equal to 17% of the Company's total balance sheet (according to consolidated financial statements). (b) The ratio of the Company's equity (excluding non-controlling interests) to the total balance sheet of the Company separately (solo) shall not be less than 37.5%. (c) The consolidated equity of the Company, excluding non-controlling interests, must not at any time be less than NIS 1,200 million. (d) The consolidated equity of the Company, excluding rights that do not confer control (but including loans given to the Company which are included in the consolidated equity), shall not be reduced at any time by an amount equal to 22% of the total balance sheet of the Company (according to consolidated financial statements). (e) There shall be no change in the controlling shareholders from the current situation, whereby both Asaf Touchmair and Barak Rosen cease to be controlling shareholders of the Company. Additionally, no other shareholders in the Company will hold more than 32%	(a) The ratio of the Company's equity to the total consolidated balance sheet as of March 31, 2025 is approximately 23.1% - compliant. (b) The ratio of the Company's equity to the total solo balance sheet as of March 31, 2025, is approximately 61.6% - compliant. (c) The amount of equity in the consolidated balance sheet as of March 31, 2025, is approximately NIS 2,556 million - Compliant. (d) The ratio of the Company's consolidated equity, excluding non controlling interests (but including loans provided to the Company that are included in consolidated equity), to total assets is approximately 28.9% - Compliant. (e) No such change has occurred.

³ The material loan agreements for this matter are loan agreements and material loan agreements as defined in Legal Position 104-15: A Reportable Credit Event of the Israel Securities Authority, as detailed in Section 15.2 of the 2024 Report.

	Loan	Borrower corporation (loan provision date)	Original loan framework amount (NIS thousands)	Principal balance as of March 31, 2025 (NIS thousands)	Financial conditions / commitment to no changes of control	Manner of calculation of financial covenants and their results as of March 31, 2025
					of the Company's shares.
					(a) The Company's consolidated equity, excluding non-controlling interests, must not at any time be less than an amount equal to 17% of the Company's total assets (according to consolidated financial statements). (b) The ratio of the Company's equity capital (excluding non-controlling	(a) The ratio of the Company's equity to the total consolidated balance sheet as of March 31, 2025 is approximately 23.1% - compliant. (b) The ratio of the Company's equity to the total solo balance sheet as of March 31, 2025, is
2.	Local bank	A 55.9% owned company that owns the Vertical City project	838,310	791,403	interests) to the total balance sheet of the Company separately (solo) shall not be less than 30%. (c) The consolidated equity of the Company, excluding non-controlling interests, must not at any time be less than NIS 700 million. (d) The consolidated equity of the Company, excluding rights that do not confer control (but including loans given to the Company which are included in the consolidated equity), shall not be reduced at any time by an amount equal to 22% of the total balance sheet of the Company (according to consolidated financial statements). (e) There will not be any structural change in relation to the borrower, compared to the situation existing at the time of signing the loan agreement, without the prior consent of the bank.	approximately 61.6% - compliant. (c) The amount of equity in the consolidated balance sheet as of March 31, 2025, is approximately NIS 2,556 million - Compliant. (d) The ratio of the Company's consolidated equity, excluding non controlling interests (but including loans provided to the Company that are included in consolidated equity), to total assets is approximately 28.9% - Compliant. (e) There was a change with the entry of Clal Insurance into the Vertical City project, with the consent of the bank.
3.	Local bank	An 80% owned company that owns the Midtown Jerusalem project	1,125,000 [Including a guarantee framework]	831,997	There will be no change of control without obtaining the bank's prior written consent. "Control" for this matter as the term is defined in the Securities Law, 5778-1968 including holding together with others. Notwithstanding the above, it is agreed that: Decrease in holdings of Asaf Touchmair and Barak Rosen in the Company to a level not lower than 32% of the control means, as long as they remain the controlling shareholders of Israel Canada at all times, will not constitute a breach of the agreement, and no bank consent will be required for this. A reduction in the combined holdings of the Company and Pangaea in the project company to a level not lower than 70% of the control means in the project company, provided that the Company and Pangaea remain the controlling shareholders of the project company at all times, will not constitute a breach of the agreement, and no bank consent will be required for this.	Compliant.

B.6. Disclosure Pursuant to Article 10(b)(14) of the Periodic and Immediate Reports Regulations, 5730- 1970

Pursuant to Article 10(b)14 of the Securities Regulations (Periodic and Immediate Reports), 5730-1970 (hereinafter: the "Reporting Regulations"), regarding the disclosure of projected cash flow for financing the repayment of the reporting corporation's obligations, any reporting corporation whose debentures are held by the public on the date of publication of the financial report and for which warning signs as defined in the said article exist in its financial data, must publish details of its obligations and of the financial sources from which it expects to repay such obligations (hereinafter: the "Projected Cash Flow Statement") over the two years following the date of publication of the financial report.

It is emphasized that pursuant to the guidance of the Israel Securities Authority under Section 36A(b) of the Securities Law, 5728-1968, with respect to the disclosure required in the Projected Cash Flow Statement, the sources and uses included in the projected cash flow are based on the consolidated financial data of the Company as well as on the separate (solo) financial data as defined in Article 9c of the Reporting Regulations.

Details regarding working capital and ongoing cash flow from current activities

		Consolidated Financial Statements as of March 31, 2025 (NIS millions)	Separate Financial Information (solo) as of March 31, 2025 (in NIS million)
	Working capital	451	279
Working capital	Working capital for a period of 12 months	(331)	279
	Continuous negative cash flow from current activities	Yes	Yes

Below are details about the working capital and the working capital for a period of 12 months in the consolidated reports of the Company as of March 31, 2025

	Amount included in the financial statements as of March 31, 2025 (NIS millions)	Adjustments (for a period of twelve months) (NIS millions)	Total (NIS millions)
Current assets	4,226	(1,655)	2,571
Current liabilities	3,775	(873)	2,902
Surplus current assets over current liabilities	451	(782)	(331)

As of March 31, 2025, the Company has negative ongoing cash flow from current activities in both the consolidated financial statements and the separate financial information report (solo), and a working capital deficit for a 12-month period in the Company's consolidated financial statements (in accordance with Legal Position No. 105-27: "Disclosure Regarding Projected Cash Flow" published by the Israel Securities Authority on April 1, 2014, as updated from time to time).

It should be noted that the negative cash flow from operating activities in the Company's consolidated financial statements is mainly due to payment of levies in the amount of approximately NIS 200 million for the Midtown Jerusalem project and the purchase of land in the Northern Herzliya Quarter in the amount of approximately NIS 108 million (for further details, refer to Note 4n to the Company's consolidated financial statements).

Nevertheless, the Company's Board of Directors has determined that the negative ongoing cash flow from operating activities in the consolidated and solo financial statements, and the working capital deficit for a 12-month period in the consolidated financial statements, as stated above, do not indicate a liquidity problem in the Corporation. Therefore, no warning sign exists as defined in Article 10(b)(14) of the Reporting Regulations, for the reasons detailed below: The Company has a balance of cash, cash equivalents, and liquid financial assets as of the Report Date totaling approximately NIS 491 million; The Company has positive

working capital in the consolidated financial statements and in the solo report, as well as positive working capital in the solo report for a 12-month period; Based on management's review of the Company's projected cash flow, whose main assumptions are as follows:

The Company expanded Bond Series H after the Report Date, for total proceeds of approximately NIS 210 million.
The Company estimates entry into bank financing for the Midtown Jerusalem project by the end of Q2 2025.
The Company estimates that in bank-financed projects, purchasers' proceeds will be used for principal and interest payments and project construction.
The Company estimates signing a voucher arrangement or bank financing agreement for the Canada in the City "SHE" Project by the end of 2025.
In the next two years, no further equity injection is expected to be required for the Vertical Project, and activity in the Vertical Project will be funded by the project company's own resources.
Renewal of existing bank credit facilities maturing, based on customary financing rates for mortgaged assets:
- a. Income-producing property financing at LTV of approximately 70%.
- b. Land assets financing at LTV of up to 50%.
The net bond principal balance of the Company as of December 31, 2024, is expected to remain unchanged over the next two years.
Sale of land (Ramat Hasharon / Harova Hatzfoni Herzliya), apartments in the Ahad Ha'am Project and/or bringing in partners and/or capital allocation in held companies at an average scope of approximately NIS 220 million per year.
Dividend distribution in amounts similar to the distribution in the past two years.

In light of all of the above, and given the sales plan reviewed by the Board of Directors for the various Company projects, as well as the realizations from the beginning of 2024, the pace of sales in the Company's projects, the Company's ability to raise equity and/or debt in the capital market (the Company has a valid shelf prospectus, and its existing bonds are rated ilA-), the raising of bank debt against assets with acceptable LTV ratios, and the entry into bank financing for projects the Company is advancing, the Company's Board of Directors has determined (although there is no certainty) that the above warning signs do not indicate a liquidity issue, and therefore no warning sign exists in the Company.

The foregoing regarding the assumptions of the Company's Board of Directors constitutes forwardlooking information, as defined in the Securities Law, 5728-1968, subject to the forward-looking information disclaimer included in Section 6.3.3.9 of the 2024 Report and the risk factors of the Company as detailed in Section 21 of the 2024 Report. These assessments may change, including materially, due to the "Iron Swords" War as stated above in this Report and due to interest rate increases and inflation.

B.7. Discussion of Risk Factors

From the beginning of 2025 until the date of publication of this Report, the Consumer Price Index increased by approximately 1.6%, following an increase of approximately 3.2% in 2024 and 3% in 2023.

Due to the rise in the inflationary environment, Bank of Israel increased the interest rate to curb price increases, and the prime interest rate rose from 1.6% and 4.75% (at the end of 2021 and 2022, respectively) to 6.25% at the end of 2023. In January 2024, in light of the decline in the inflationary environment and with the aim of stabilizing the markets, reducing uncertainty, maintaining price stability, and supporting economic activity, Bank of Israel reduced the interest rate to 6%. In accordance with the announcement by Bank of Israel, the continued trend of interest rate reductions will be determined based on the continued convergence of inflation toward its target, the continued stability in financial markets, economic activity, and fiscal policy. According to Bank of Israel's forecast from May 2025, the inflation rate for the next four quarters (ending in the first quarter of 2026) is expected to stand at 2.5%; during 2025, it is expected to be 2.6%, and during 2026, 2.2%. This forecast was formulated under the assumption that the direct economic impact of the War

will not extend beyond Q2 2025 and that during this period, no severe operational restrictions will be imposed on the civilian home front (unlike the situation at the start of the War). In addition, the forecast includes assessments regarding the impact of U.S. import tariffs announced on April 2, 2025. The working assumption underlying the forecast is that the global tariff increases will lead to a 4% reduction in global trade volume by the end of 2026 (compared to a no-tariff scenario).

Changes in the inflation and interest rate environment, as well as the effects of the War (refer to Section B.3), impact the business environment of the Corporation.

Impact of the Interest Rate Increase:

As of the Report Date, most of the Company's bank loans presented in the Company's consolidated financial statements bear variable interest at the prime rate plus a margin. Therefore, the increase in the prime interest rate had a direct effect on the Company's financing expenses in various projects and a negative impact on project profitability. For further details regarding the effect of the interest rate increase, refer to Note 26 to the Company's annual financial statements as of December 31, 2024.

As of March 31, 2025, the Group is exposed to interest rate risk (prime) due to loans received by the Company from banking corporations totaling approximately NIS 4 billion bearing variable interest. An interest rate increase, if it occurs, may result in the following negative effects: (a) Increase in financing costs and decrease in the Company's profitability (if sale prices do not rise in parallel); (b) Adverse impact on the feasibility of raising new debt and deterioration of credit terms for Group companies; (c) Further increase in mortgage interest rates and, consequently, a decline in demand in the real estate market; (d) Impaired ability of the Company's customers to meet their obligations toward the Company; (e) Increase in capitalization rates used in property valuations, thereby affecting the fair value of the Company's investment property. For further details, refer to Note 26f to the Company's annual financial statements for 2024, included in this Periodic Report.

Impact of Inflation Increase:

The projects are generally executed through agreements with main contractors for all work required to construct the project (Turn-Key). The agreements with the main contractors are generally lump-sum agreements and are linked to the Construction Input Index. Accordingly, an increase in the Construction Input Index (an increase of approximately 3.5% in the first quarter of 2025, approximately 2.9% during 2024, and approximately 2.0% in 2023) impacts the costs of constructing the projects. During Q1 2025, a sharp increase occurred in the Construction Input Index due to adjustments in the CBS's measurement methods, and it was also announced that a further significant increase is expected during the second half of 2025 due to such changes. Nevertheless, in most sale agreements, the transaction with the apartment purchasers is also partially linked to said index (partial linkage in accordance with Amendment No. 9 to the Sale (Apartments) Law, 5782-2022), and therefore the Company's exposure to changes in the index is reduced. In addition, as of the date of this Report, the Company has a balance of loans linked to the Consumer Price Index. These loans finance income-producing properties whose rental income is also linked to the Consumer Price Index. Accordingly, the Company currently has no material exposure in this respect.

Housing Market5

Although in the first weeks following the outbreak of the War there was a slowdown in the housing market to the point of an almost complete halt in transactions, during 2024 the real estate market experienced a revival, also driven by sales campaigns offering extensive payment plans (20-80 / 10-90), contractor loans, and exemption from index linkage.

⁵ The data detailed in the paragraph below was taken from press releases of the Central Bureau of Statistics: "Change in Housing Market Prices," published on May 15, 2025.

A comparison of transaction prices in February–March 2025 versus January–February 2025 shows that apartment prices increased by 0.1%, and increased by approximately 6.4% compared to the same period last year.

In the central region, and specifically in Tel Aviv, price changes in February–March 2025 compared to January–February 2025 were (0.1%-) and (0.3%-), respectively. In those same periods, new apartment prices rose by 0.6%, and excluding transactions with government subsidies, prices rose by 0.5%. In December 2024–January 2025, compared to the same period last year, the prices of new apartments increased by approximately 6.7%.

Although the Company rarely provides its buyers with such financial benefits, during 2024 and the first quarter of 2025 the Company sold apartments and offices at significant volumes. For the Company's sales data in its various projects, refer to the table in Section A above.

It should be noted that, as of the signing date of this Report, the Company's assessments as set forth in this section constitute forward-looking information, as defined in the Securities Law, 5728-1968, based on the Company's management assessments and understanding of the factors affecting its business activities, as well as the Company's assessments regarding factors outside its control, as of the date of signing of this Report.

B.8. Marketing Models

Further to Section 8 of Part A of the Periodic Report, as part of "pre-sale" transactions carried out by the Company in the Midtown Jerusalem project, the Company offered purchasers in the open market a payment plan of 20% near the date of signing the purchase agreement, and payment of the balance near the date of delivery of the apartment, linked to the Construction Input Index ("Favorable Payment Terms").

The Company's volume of sales in the Midtown Project under Favorable Payment Terms was approximately 83% in 2023 for a total of approximately NIS 349 million, approximately 30% in 2024 for a total of approximately NIS 93 million, and approximately 14% in Q1 2025 for a total of approximately NIS 4 million. Out of the total contracts signed under Favorable Payment Terms, approximately NIS 59 million has been paid as of the date of the Report.

With respect to Favorable Payment Terms, the Company estimates that the exposure is not material. However, the Company cannot assess whether the exposure will materialize and whether the purchasers will meet their obligations.

For transactions where the Company provided financing benefits through Favorable Payment Terms as described above, the Company calculated the effect of a significant financing component in the amount of approximately NIS 38 million, which was accounted for in the Company's financial statements as a reduction in the revenue recognition item from apartment sales, and conversely, a financing component was recorded under "Other Income" in the amount of approximately NIS 0.5 million in Q1 2025.

ICR:

To maintain its competitive position in the real estate market, and similar to most real estate companies in the industry, ICR offers buyers in the open market benefits such as exemption from linkage of consideration to the index, as well as favorable spreading arrangements in its transactions for the sale of housing units ("Marketing Models").

Among other things, in some of its transactions, ICR offers: (a) Payment plan and exemption from index linkage – payment of 15%-20% of the purchase price near the signing of the purchase agreement and payment of the balance near the delivery date of the apartment ("Favorable Payment Terms"); and/or (b) Contractor Loans – payment of 15%-20% of the purchase price near the signing of the purchase agreement and an

additional payment of NIS 1.5 million on average in contractor loans (where, as noted, ICR bears the interest payments), and payment of the balance near the delivery date of the apartment ("Contractor Loans").

With respect to Contractor Loans, in which the banking entity provides the contractor loan to the buyer, the bank evaluates the buyer's repayment capacity not only regarding the contractor loan but, to ICR's knowledge, also regarding the mortgage to be taken by the buyer upon delivery of the housing unit. It is noted that in the case of a Contractor Loan benefit, ICR does not conduct a separate underwriting process for the buyer's repayment capacity and relies on the bank's process as described above; and in the case of Favorable Payment Terms, ICR did not perform underwriting for the buyers.

ICR's sales volume under Marketing Models in 2023, 2024, and Q1 2025 was approximately 80%, 55%, and 95%, respectively, of total open-market sales, divided as follows:

Benefit type		2023	2024	1-3/2025
Favorable	Scope of revenues including VAT in NIS millions	250	566	128
Payment Terms	Percentage of sales volume in marketing models	73%	92%	67%
Contractor Loan	Scope of revenues including VAT in NIS millions	90	46	64
benefits	Percentage of sales volume in marketing models	27%	8%	33%

In contracts with Favorable Payment Terms and/or contracts with Contractor Loan terms, the completion of up to 90% of the consideration is made up to three months before the delivery date, and the remaining 10% is paid near the apartment handover date.

Accordingly, with respect to Contractor Loans, although there is some exposure to the purchasers' failure to meet their obligations toward ICR, ICR estimates that, in light of the fact that the banking entity examines the repayment ability of the Apartment purchaser and in view of the fact that ICR received a rate of up to approximately 45% (including the Contractor Loan) of the purchase price, such exposure, if any, is not expected to be material.

With respect to Optimal Payment Terms, ICR estimates that there is material exposure and ICR cannot assess whether the purchasers will meet their obligations or not.

In 2024 and in the first quarter of 2025, following the Contractor Loan campaigns that ICR promoted in the marketed projects, ICR made cash payments to the mortgage banks for interest in the total amount of approximately NIS 2,808 thousand and approximately NIS 980 thousand, respectively. In respect of transactions in which ICR granted financing benefits by way of Optimal Payment Terms as described above, ICR calculated the effect of a Significant Financing Component (which was treated in ICR's financial statements as a reduction in the transaction price for the purpose of revenue recognition) in the amount of approximately NIS 4,156 thousand in 2024 and approximately NIS 870 thousand in the first quarter of 2025, respectively.

The Company's assessments above regarding the possible impacts of the aforementioned factors on the Company's operations, including whether or not purchasers will meet their obligations, as set forth in this Section above, constitute Forward-Looking Information, as defined in the Securities Law, 5728- 1968, which is based, inter alia, on the Company's experience and assessments as of the date of approval of this Report with respect to factors not within its control. It should be clarified that there is no certainty that the Company's assessments will materialize, and they may materialize in a manner that differs, including materially, from what is described above.

C. Disclosure Requirements in Connection with the Corporation's Financial Reporting

C.1 Material Events After the Reporting Period

For events and additional details, refer to Note 5 to the Company's financial statements as of March 31, 2025.

C.2 Use of Critical Estimates

Refer to Note 2 to the Company's financial statements as of March 31, 2025.

D. Special disclosure to the Company's bondholders

D.1. Data regarding the Company's bonds as of March 31, 2025:

	The Bonds (Series F)	The Bonds (Series G)	The Bonds (Series H)
Issuance date	June 2019	January 2021	June 2024
Nominal value at the time of issue	NIS 196,587,000 nominal value issued on the issued date (June 2019)	April 2021 NIS 200,000,000 nominal value (January 2021) NIS 206,754,000 nominal value (April 2021) NIS 277,143,000 nominal value (August 2021) NIS 154,521,000 nominal	December 2024 NIS 228,962,000 nominal value (June 2024) NIS 300,000,000 nominal value (December 2024)
Nominal value as of March 31, 2025	NIS 19,648,218 (a total of approximately NIS 50,004 held by a wholly owned subsidiary of the Company)	value (January 2022) NIS 838,418,000 (a total of approximately NIS 63,681,339 held by a wholly owned subsidiary of the Company)	NIS 528,962,000
Amount of interested accrued	NIS 306,299	NIS 8,161,850	NIS 9,064,815
Balance in the financial statements as of March 31, 2025	NIS 19,954,517 (equal to the total balance, minus NIS 47,204 held by a wholly owned subsidiary of the Company)	NIS 766,607,351 (equal to the total balance, minus NIS 57,417,003 held by a wholly owned subsidiary of the Company)	NIS 533,785,685
Stock Exchange value as of March 31, 2025	NIS 19,876,912	NIS 824,919,470	NIS 552,183,431
Interest type and rate	Fixed annual interest in the rate of 4.7%	Fixed annual interest in the rate of 3.95%	Fixed annual interest in the rate of 6.95%
Undertaking for additional payment as of March 31, 2025	None	None	None
Principal payment dates	Principal of Bonds (Series F) is payable in five (5) unequal annual payments on May 31 of each of the years 2021-2025, as follows: On May 31 of each of the years 2021 and 2022, 7.5% of the total principal amount will be paid. On May 31, 2023, 30% of the total principal amount will be paid. On May 31, 2024, 45% of the total principal amount will be paid. On May 31, 2025, 10% of the total principal amount will be paid.	The principal of Bonds (Series G) is set to be repaid in three (3) annual installments on June 30 of each of the years 2025 to 2027. The first payment will constitute 30% of the total nominal value of the principal of Bonds (Series G), and each of the second and third payments will constitute 35% of the total nominal value of the principal of Bonds (Series G). The first principal payment will be made on June 30, 2025, and the final principal payment will be made on June 30, 2027.	The principal of Bonds (Series H) is set to be repaid in four (4) equal annual installments on June 30 of each of the years 2028 to 2031, with 25% of the total nominal value of the principal of Bonds (Series H) being paid on each date. The first principal payment will be made on June 30, 2028, and the final principal payment will be made on June 30, 2031.
Interest payment dates	The interest is paid in semi annual installments every May 31 and November 30 of each calendar year from November 30, 2019 until the final repayment date on May 31, 2025.	The interest is paid in semi annual installments every June 30 and December 31 of each calendar year from 2021 to 2026 and on June 30, 2027 (inclusive)	The interest is paid in equal semi-annual installments, on December 31, 2024 and every June 30 and December 31 in each of the years 2025 to 2030 and the last interest payment is on June 30, 2031.
Linkage basis (principal and interest)	No linkage.	No linkage.	No linkage.
Are they convertible	No	No	No

	The Bonds (Series F)	The Bonds (Series G)	The Bonds (Series H)
The Company's right for early redemption or forced conversion	Yes	Yes	Yes
Rating company	S&P Maalot	S&P Maalot	S&P Maalot
Has a guarantee been given for the payment of the Company's obligations according to the trust deed	---	---	---
Details of trustee	Reznik Paz Nevo Trusts Ltd., 14 Yad Haruzim St., Tel Aviv, Tel: 03-6389200; Fax: 03-6389222. Contact: Adv. Michal Avtalion Rishony, email: [email protected].	Reznik Paz Nevo Trusts Ltd., 14 Yad Haruzim St., Tel Aviv, Tel: 03-6389200; Fax: 03- 6389222. Contact: Adv. Michal Avtalion-Rishony, email: [email protected].	Reznik Paz Nevo Trusts Ltd., 14 Yad Haruzim St., Tel Aviv, Tel: 03-6389200; Fax: 03- 6389222. Contact: Adv. Michal Avtalion-Rishony, email: [email protected].

D.2. Fulfillment of Obligations

As of March 31, 2025, and as of the date of publication of this Report, to the best of the Company's knowledge, the Company has complied with all material terms and obligations under the deeds of trust for its bonds (Series F), bonds (Series G), and bonds (Series H). To the best of the Company's knowledge, no conditions have occurred that would give rise to grounds for declaring the obligations immediately due and payable. For details regarding the Company's compliance with the financial covenants towards the holders of the bonds (Series F), (Series G), and (Series H), refer to below.

Series	Borrower corporation (loan provision date)	Original principal amount (NIS thousands)	Principal balance as of March 31, 2025 (NIS thousands)	Financial liabilities	Manner of calculation of financial covenants and their results as of March 31, 2025 according to the Company's reviewed financial statements
The Bonds (Series F)	The Company (June 2019)	196,587	19,648 (of this, an amount of 50 is held by a wholly owned subsidiary of the Company)	• Equity to solo balance sheet ratio will not fall below 35%. • The Company's equity will not fall below NIS 350 million. The bond's interest rate will be adjusted due to deviation in one or more of the financial covenants described below: • Equity to solo balance sheet ratio will not fall below 40%. • The Company's equity will not fall below NIS 375 million. "Equity" means the equity as presented in the Company's separate (solo) financial statements (audited or reviewed, as applicable), plus shareholder loans that are subordinated to the Bonds (Series F), equity instruments invested after the issuance of the bonds, and less intangible assets (such as goodwill, copyrights, patents, trademarks, and trade names). "Balance Sheet" means the Company's balance sheet as presented in the separate (solo) financial information of the Company (audited or reviewed, as the case may be).	Equity as defined above: approximately NIS 2,556 million. Solo balance sheet as defined above is approximately NIS 4,148 million. Therefore, the ratio is approximately 61.6%.
The Bonds (Series G)	The Company (January 2021)	838,418	838,418 (equal to the total balance, minus 63,681 held by a wholly owned subsidiary of the Company)	• Equity to balance sheet ratio will not fall below 37.5%. • The Company's equity will not fall below NIS 475 million. The bond's interest rate will be adjusted due to deviation in one or more of the financial covenants described below: Equity to solo balance sheet ratio will not fall below 42%. The Company's equity will not fall below NIS 500 million. "Equity" means the equity as presented in the Company's separate (solo) financial statements (audited or reviewed, as applicable), plus shareholder loans that are subordinated to the Bonds (Series F), equity instruments invested after the issuance of the bonds, and less intangible assets (such as goodwill, copyrights, patents, trademarks, and trade names). "Balance Sheet" means the Company's balance sheet as presented in the separate (solo) financial information of the Company (audited or reviewed, as the case may be).	Equity as defined above: approximately NIS 2,556 million. Solo balance sheet as defined above is approximately NIS 4,148 million. Therefore, the ratio is approximately 61.6%.

Series	Borrower corporation (loan provision date)	Original principal amount (NIS thousands)	Principal balance as of March 31, 2025 (NIS thousands)	Financial liabilities	Manner of calculation of financial covenants and their results as of March 31, 2025 according to the Company's reviewed financial statements
The Bonds (Series H)	The Company (June 2024)	528,962	528,962	• Equity to solo balance sheet ratio will not fall below 37.5%. • The Company's equity will not fall below NIS 1.2 billion. • The ratio between consolidated equity and the consolidated balance sheet according to the Company's consolidated financial statements will not fall below 15%. The bond's interest rate will be adjusted due to deviation in one or more of the financial covenants described below: Equity to solo balance sheet ratio will not fall below 42%. The Company's equity will not fall below NIS 1.25 billion. Equity to balance sheet ratio on a consolidated basis will not fall below 17%. "Equity" means equity as presented in the Company's separate (solo) financial information (audited or reviewed, as the case may be), plus subordinated owner loans. "Subordinated Owner Loans" means owner loans (principal only) provided up to the relevant review date, where it has been stipulated in their terms (principal and interest) that they are subordinated to the Bonds (Series H), including that their repayment date is after the final repayment date of the Bonds. In the event of the Company's liquidation, these loans (principal and interest) will be repaid after the full repayment of the Bonds. This also applies to capital notes provided after the issuance of the Bonds, which are subordinated to the Bonds (Series H), including that their repayment date is after the final repayment date of the Bonds and that in the event of the Company's liquidation, these will be repaid (principal and interest) after the full repayment of the Bonds. "Balance Sheet" means the Company's balance sheet as presented in the separate (solo) financial information of the Company (audited or reviewed, as the case may be). "Consolidated Equity" means equity, including non-controlling interests, as presented in the Company's consolidated financial statements (audited or reviewed, as the case may be), plus subordinated owner loans (as defined above). "Consolidated Balance Sheet" means the Company's balance sheet as presented in the Company's consolidated financial statements (audited or reviewed, as the case may be), excluding unrestricted cash and cash equivalents, deposits, and investments classified as unrestricted current assets, marketable securities that are unrestricted current assets, and deducting advances from apartment purchasers, liabilities for providing construction services, liabilities related to consideration transactions, and liabilities for contracts with customers, as defined in generally accepted accounting principles.	Equity as defined above: approximately NIS 2,556 million. Solo balance sheet as defined above is approximately NIS 4,148 million. Therefore, the ratio is approximately 61.6%. The consolidated equity (including non-controlling interests) as defined above: approximately NIS 3,526 million. Consolidated balance sheet as defined above: NIS 11,087 million. Therefore the ratio is approximately 35%.

D.3. Rating

On May 20, 2024, the Company received an initial rating of ilA- with a positive outlook from Maalot S&P, as well as a rating of ilA- for the Company's bonds Series F and Series G. On June 23, 2024, the Company received an initial rating of ilA- from Maalot S&P for the Company's bonds Series H. On December 4, 2024, Maalot S&P announced a rating of ilA- for the expansion issuance of Series H, and on May 6, 2025, Maalot S&P announced a rating of ilA- for the further expansion issuance of Series H.

Date of signing of the Report:

May 27, 2025

_____________________________ ___________________________

Asaf Touchmair, Chair of the Board Barak Rosen, CEO and Director

Appendix A

In accordance with the requirements of Article 39A of the Securities Regulations (Periodic and Immediate Reports), 5730-1970, below is a summary of the significant changes or new developments that have occurred in the Company's business during the three-month period ended March 31, 2025, and up to the date of the publication of this report. It should be noted that the following terms will have the meanings attributed to them in the Description of the Corporation's Business Report for the year 2024, which was attached to the 2024 Periodic Report (hereinafter: the "2024 Report"), unless expressly stated otherwise.

1. New Ramat Hasharon (Elco Complex)

a. Costs invested and that will be invested in the project (NIS thousands):

	Year 2025 Q1	Year 2024	Year 2023
New Ramat Hasharon Project (Elco Complex) Data based on 100%, Company's share in the project 81%	Financial data in functional currency	Costs invested (NIS millions)

Total aggregate costs for land at the end of the period	171.7	171.7	169.7
Total aggregate costs for development, taxes, fees and other	44.1	44.1	44.1
Total aggregate costs for construction	---	---	---
Deduction of costs recognized in the profit and loss statement	(208.0)	(207.8)	(207.5)
Total aggregate costs for financing (capitalized)	---	---	---
Total aggregate cost	8	8	6
	Costs not yet invested and completion rate
Total costs for land not yet invested (estimate)	---	---	---
Total costs for development, taxes and fees, not yet invested (estimate)	---	---	---
Total costs for construction not yet invested (estimate)	---	---	---
Total aggregate for financing not yet invested (estimate)	---	---	---
Completion rate [engineering/financial] (excluding land) (%)	---	---	---
Expected completion date	N/A	N/A	N/A

b. Below are details about the marketing of the areas in the project:

New Ramat Hasharon Project (Elco Complex)	Data based on 100%, Company's share in the project 81%
	Year 2025		Year 2023
	Q1	Year 2024
	Financial data in NIS thousands
	Contracts signed during the current period:
Sold units (residential)1	---	---	---
Sold units (office) - Stage A2	---	---	---
Sold units (office) - Stage B3	8	42	37 (*)
	Average price per square meter in contracts signed during the current period
	(functional currency):
Average price in NIS thousands (without VAT) - residential	---		---
Average price in NIS thousands (without VAT) - offices	730	679	600
	Aggregate agreements by end of period:

¹ "The Residential Units Sold" - Each purchaser will be entitled to a whole (average) residential unit of land, and not less, regardless of the result of the arithmetic calculation in the sale agreement and without any additional payment required from them. For further details, refer to Note 15d of the Consolidated Financial Statements for 2024, which were attached to the 2024 Report.

² "The Stage A Office Units Sold" - Land units, each of which is expected to yield, according to the Company's forecasts regarding the change of designation as described in Section 6.3.3.2 of the 2024 Report, and in accordance with the mechanisms in the sale agreements, a right to land for an office unit of 250 square meters gross.

³ "The "Stage B Office Units Sold" - Land units, each of which is expected to yield, according to the Company's forecasts regarding the change of designation as described in Section 6.3.3.2 of the 2024 Report, and in accordance with the mechanisms in the sale agreements, a right to land for an office unit of 129.2 square meters gross.

⁴ As mentioned, the Company has not yet recorded income for the sale of land rights for residential units.

New Ramat Hasharon Project (Elco Complex)	Data based on 100%, Company's share in the project 81%
	Year 2025	Year 2024	Year 2023
	Q1
		Financial data in NIS thousands
Sold residential units	584	584	587
Sold office units (Stage A)	182	182	182
Sold office units (Stage B)	87	79	37
		Marketing rate of the sold rights (%):
Total income expected from the entire project (including management fees and commercial and office units)	972,905	972,905	1,005,257
Total income expected from contracts signed in the aggregate	480,751	474,910	446,400
Marketing rate as of last day of the period of residential units sold (%)	97%	97%	98%
Marketing rate as of last day of the period of office and commercial units (%)	38%	37%	34%
		Areas for which agreements have not yet been signed*:
Unsold units from the residential sold units (#)*	16	16	13
Unsold units from the sold office units (Stage B only) (#)*	687	695	737
Total aggregate cost (inventory balance) attributed to areas for which binding contracts are not yet signed in the Statement of Financial Position (consolidated)4	8,014	8,206	6,283
***	***	***	***
Number of units sold from the end of the period until near the Report publication	Residence: -- Offices Stage B:-	Residence: -- Offices Stage B: 8	Residence: -- Offices Stage B: 7
Average price for units sold from the end of the period until near the publication date of the Report (excluding VAT)	Residence: -- Offices: --	Residence: -- Offices: 730	Residence: -- Offices: 600

* The said units are in accordance with the plan which was approved as detailed in Section 6.3.3.2 of the 2024 Report.

2. Residential rights in Sde Dov (Tel Aviv)

a. Costs invested and that will be invested in the project (NIS thousands):

Sde Dov Project (Data based on 100%. Company's effective share is 100%)		Year 2025
		Q1	Year 2024	Year 2023
Co sts in ve ste d	Aggregate costs for land at the end of the period	1,262,262	1,262,262	1,262,262
	Aggregate costs for development, taxes and fees	95,379	92,882	81,015
	Aggregate costs for construction	45,792	20,297	---
	Aggregate costs for financing (capitalized)	202,208	183,846	130,960
	Other aggregate costs	---	---	---
	Total aggregate cost	1,605,641	1,559,287	1,474,237
	Total aggregate book cost	1,605,641**	1,559,287**	1,474,237
Co be sts in th ve at ste wi d ll	Costs for land not yet invested	N/A	N/A	N/A
	Costs for development, taxes and fees, not yet invested (estimate)	64,137	64,137	57,384
	Costs for construction, not yet invested (estimate)	779,053	804,548	820,945
	Aggregate costs for financing, expected to be capitalized in the future (estimate)***	27,047	47,212	11,983*
	Other aggregate costs not yet incurred	79,505	79,505	77,289*
	Total cost remaining for completion	941,741	995,402	1,067,601
	Completion rate [financial] excluding land	5.5%	3%	0%

* Reclassified

** Excluding non-specific credit discounting of bonds.

*** Starting from the date of receipt of the building permit, the Company capitalizes financing costs in respect of Sales Law guarantees only.

Sde Dov Project (Data based on 100%. Company's effective share is 100%)		Year 2025	Year 2024	Year 2023
		Q1
Contracts signed during the	Residential units (#)	10	99	121*
current period	Residential units (sq.m)	1,130	12,028	11,785
Average price per square meter in contracts signed during the current period (including VAT)	Residential units	79,383	83,237	77,703
Aggregate agreements by end of	Residential units (#)	228	220	121
period:	Residential units (sq.m)	24,753	23,813	11,785
Average price per square meter in aggregate in contracts signed until the period end (including VAT)	Residential units	80,504	80,493	77,703
	Total expected income from the entire project (in commercial currency) including VAT	3,919,812	3,919,812	3,827,581
Marketing rate of the project	Total expected income from contracts signed in the aggregate (commercial currency) including VAT	1,992,716	1,916,782	915,696
	Marketing rate as of last day of the period (%)	47.5%	46%	25%
	Residential units (#)	252	260	359
Areas for which agreements have	Residential units (sq.m)	21,362	22,302	34,330
not yet been signed:	Commercial spaces (sq.m)	1,610	1,610	1,610
Total aggregate cost (inventory balance as of March 31, 2025) attributed to areas for which binding contracts are not yet signed in the Statement of Financial Position		842,962	844,614	---
Number of contracts signed from end of the period up to the publication date of the Report (#)		2	8	---
Average price per sq.m in contracts signed from the end of the period until the publication date of the Report (including VAT)		77,706	79,620	---

b. Below are details about the marketing of the areas in the project:

* The data includes two sales agreements that were canceled in 2025. The data refer to signed contracts and do not include registration documents.

3. Residential rights classified as inventory in Midtown Jerusalem

a. Costs invested and that will be invested in the project (NIS thousands):

Midtown Jerusalem project (formerly Shaare Tzedek)		Year 2025
Planning state of the project (Data based on 100%. Company's effective share is 73%)		Q1	Year 2024	Year 2023
Co sts in ve ste d	Aggregate costs for land at the end of the period	306,650	306,650	306,650
	Aggregate costs for development, taxes and fees	248,483	40,975	25,606
	Aggregate costs for construction	23,618	16,659*	11,839*
	Aggregate costs for financing (capitalized)	62,376	59,330	33,275
	Other aggregate costs	43,166	42,499*	22,891*
	Total aggregate cost	684,293	466,112	400,261
	Total aggregate book cost	684,293	466,112	400,261
	Costs for land not yet invested	-	-	-
Co sts	Costs for development, taxes and fees, not yet invested (estimate)	-	166,329	193,770
inv th	Costs for construction, not yet invested (estimate)	916,382	880,843	731,086
est at ed wi ll b e	Aggregate costs for financing, expected to be capitalized in the future (estimate)	-	9,462	34,446(*)
	Other aggregate costs not yet incurred	72,263	181,438	141,066(*)
	Total cost remaining for completion	988,645	1,238,072	1,100,369
	Completion rate [financial] excluding land	2.4%	1.4%	0.9% (*)

* Reclassified

b. Below are details about the marketing of the areas in the project

Midtown Jerusalem project - residential rights		Year 2025	Year 2024	Year 2023
(Data based on 100%. Company's effective share is 73%)		Q1
Contracts signed during the current	Residential units (#)	7	88*	125*
period	Residential units (sq.m)	520	5,290	6,768
Average price per square meter in contracts signed during the current period (including VAT)	Residential units	72,952	71,823	64,808
Aggregate agreements by end of	Residential units (#)	218	212*	125*
period:	Residential units (sq.m)	12,474	12,008	6,768
Average price per square meter in aggregate in contracts signed until the period end (including VAT)	Residential units	68,279	68,080	64,808
	Total expected income from the entire project (in commercial currency) including VAT	3,078,421	3,078,421	2,777,543
Marketing rate of the project	Total expected income from contracts signed in the aggregate (commercial currency) including VAT	851,725	817,517	438,619
	Marketing rate as of last day of the period (%)	31%	31%	18%
	Residential units (#)	477	483**	567
Areas for which agreements have not	Residential units (sq.m)	31,033	30,927	36,167
yet been signed:	Commercial spaces (sq.m)	---	---	---
Total aggregate cost (inventory balance as of March 31, 2025) attributed to areas for which binding contracts are not yet signed in the Statement of Financial Position		471,687	324,238	---
Number of contracts signed from end of the period up to the publication date of the Report (#)		3	6	---
Average price per sq.m in contracts signed from the end of the period until the publication date of the Report (including VAT)		73,195	73,855	---

(*) Includes one contract that was canceled.

(**) The Company changed the mix of apartments in 2025.

The data refer to signed contracts and do not include registration documents.

4. Residential rights in the Canada in the City project (former Leumi Building), Tel Aviv

a. Costs invested and that will be invested in the project (NIS thousands):

Canada in the City (formerly Leumi Building), Tel Aviv		Year 2025
Planning state of the project (Data based on 100%. Company's effective share is 81%)		Q1	Year 2024	Year 2023
Co sts in ve ste d	Aggregate costs for land at the end of the period	297,340	297,340	297,340*
	Aggregate costs for development, taxes and fees	22,280	22,275	22,243
	Aggregate costs for construction	14,718	13,284	9,734
	Aggregate costs for financing (capitalized)	62,099	57,557	40,241
	Other aggregate costs	--	--	--
	Total aggregate cost	396,437	390,456	369,558
	Total aggregate book cost	396,437	390,456	369,558
Co sts	Costs for land not yet invested	---	---	N/A
	Costs for development, taxes and fees, not yet invested (estimate)	14,179	14,184	N/A
inv th	Costs for construction, not yet invested (estimate)	238,628	240,062	N/A
est at ed wi ll b e	Aggregate costs for financing, expected to be capitalized in the future (estimate)**	38,334	46,410	N/A
	Other aggregate costs not yet incurred	13,163	13,163	N/A
	Total cost remaining for completion	304,304	313,820	N/A
	Completion rate [financial] excluding land	0%	0%	N/A

* Reclassified.

** Starting from the date of receipt of the building permit, the Company capitalizes financing costs in respect of Sales Law guarantees only.

Canada in the City (formerly Leumi Building), Tel Aviv	Year 2025
Planning state of the project (Data based on 100%. Company's effective share is 81%)		Q1	Year 2024
Contracts signed during the	Residential units (#)	1	--
current period	Residential units (sq.m)	208	--
Average price per square meter in contracts signed during the current period (including VAT)	Residential units	153,846	--
Aggregate agreements by end of	Residential units (#)	1	--
period:	Residential units (sq.m)	208	--
Average price per square meter in aggregate in contracts signed until the period end (including VAT)	Residential units	153,846	--
	Total expected income from the entire project (in commercial currency) including VAT	1,018,068	--
Marketing rate of the project	Total expected income from contracts signed in the aggregate (commercial currency) including VAT	32,000	--
	Marketing rate as of last day of the period (%)	1%	--
	Residential units (#)	101	--
Areas for which agreements have	Residential units (sq.m)	9,375	--
not yet been signed:	Commercial spaces (sq.m)	166	--
Total aggregate cost (inventory balance as of March 31, 2025) attributed to areas for which binding contracts are not yet signed in the Statement of Financial Position		392,551	--
Number of contracts signed from end of the period up to the publication date of the Report (#)		2	--
Average price per sq.m in contracts signed from the end of the period until the publication date of the Report (including VAT)	126,478	--

b. Below are details about the marketing of the areas in the project

North Park Stage A Project (Neve Gan) - Project in progress

a. Costs invested and that will be invested in the project (NIS thousands):

	North Park Stage A Project (Neve Gan)	Year 2025
Data based on 100%. Company's effective weighted share - approx. 24.6%)		Q1	Year 2024	Year 2023
Co sts in ve ste d	Aggregate costs for land at the end of the period	1,147,633	1,147,633	1,151,246
	Aggregate costs for development, taxes and fees	33,811	33,751	22,257
	Aggregate costs for construction	174,678	124,804	21,240
	Aggregate costs for financing (capitalized)	147,197	141,990	109,253
	Other aggregate costs	21,078	19,638	15,698
	Total aggregate cost	1,524,396	1,467,817	1,319,694
	Total aggregate book cost	1,138,768	1,191,418	1,284,041
Co sts inv th est at ed wi ll b e	Costs for land not yet invested (estimate)	--	--	294
	Costs for development, taxes and fees, not yet invested (estimate)	5,955	5,295	16,641
	Costs for construction, not yet invested (estimate)	518,925	551,182	639,358
	Aggregate costs for financing, expected to be capitalized in the future (estimate)*	2,833	7,930	48,036
	Other aggregate costs not yet incurred	72,796	73,687	79,428
	Total cost remaining for completion	600,509	638,093	783,757
	Completion rate [financial] excluding land (%)	38.6%	33.4%	17.7%

* Starting from the date of receipt of the building permit, the Company capitalizes financing costs in respect of Sales Law guarantees only.

North Park Stage A Project (Neve Gan) Data based on 100%. Company's effective weighted share - approx. 24.6%)		Year 2025 Q1	Year 2024	Year 2023

period	Residential units (sq.m)	481	2,156	1,816
Average price per square meter in contracts signed during the current period (including VAT)	Residential units	54,770	58,664	47,124
	Residential units (#)	388	383	371
Aggregate agreements by end of period:	Residential units (sq.m)	37,518	37,119	36,254
Average price per square meter in aggregate in contracts signed until the period end (including VAT)	Residential units	51,936	51,917	45,260
Marketing rate of the project	Total expected income from the entire project (in commercial currency) including VAT	3,112,929	2,919,631	2,511,891
	Total expected income from contracts signed in the aggregate (commercial currency) including VAT	1,948,545	1,927,111	1,656,430
	Marketing rate as of last day of the period (%)	71%	70%	66%
	Residential units (#)	160	165	177
Areas for which agreements have not	Residential units (sq.m)	16,741	17,140	18,402
yet been signed:	Commercial spaces (sq.m)	---	---	---
Total aggregate cost (inventory balance as of March 31, 2025) attributed to areas for which binding contracts are not yet signed in the Statement of Financial Position		445,079	439,274	---
Number of contracts signed from end of the period up to the publication date of the Report (#)*		--	4	---
Average price per sq.m in contracts signed from the end of the period until the publication date of the Report (including VAT)		--	53,858	---

b. Below are details about the marketing of the areas in the project:

* The data refer to signed contracts and do not include registration documents.

Forward-looking information

The information described above in connection with the costs expected in the project (not yet invested) is "forward-looking information" (as the term is defined in the Securities Law), which are not under the full control of the Company and the realization of which is not certain. The realization of the aforementioned information largely depends on the cooperation between the Company and the partners in the projects, on the decisions made by them during the establishment of the project; on the relevant project company's engagement in financing agreements for the support and establishment of the project and compliance with the terms that will be set forth in these agreements (if set); on external factors, such as obtaining the necessary permits for the execution of the project (both in terms of their actual receipt and their receipt within the timeframe anticipated by the Company and the relevant project partners), on the project companies' compliance with the requirements of various authorities and their issuance of the relevant permits; on the actual costs of establishment and financing at the time they arise, which may change, including significantly, among other things, due to changes in the economic environment in which the Company operates. It should be emphasized that there is no certainty that this will be the actual state of affairs. These factors may significantly alter the Company's assessments outlined above. According to the Company's assessment, as of this date, the main factors that may cause the forwardlooking information not to materialize are: (a) the required permits for the construction of the projects, which have not yet been granted, may not be obtained (both in terms of their actual receipt and the anticipated timing of their receipt by the Company); (b) the construction of the relevant project may be

delayed due to various reasons, such as the failure of the relevant project company to meet the authorities' requirements for obtaining permits and/or the failure to obtain suitable permits for the project or obtaining them later than anticipated by the Company; (c) difficulties in contracting with a contractor or the contractor or other suppliers involved in the relevant project encountering financial difficulties; (d) any of the partners in the project encountering financial difficulties that prevent them from continuing to finance their share in the project (as applicable); (e) deviation from the expected scope of the project, which could result from increases in construction costs, taxes, and/or levies imposed on the purchase and development of the land, from the economic situation in the market, including inflation, interest rate increases, and the like. Thus, there is no certainty that the above information will materialize and it may even be significantly different from the above.

Israel Canada (T.R) Ltd.

Condensed Consolidated Financial Statements As of March 31, 2025

(Unaudited)

Israel Canada (T.R) Ltd.

Condensed Consolidated Financial Statements As of March 31, 2025

(Unaudited)

	Page
Review Report by Accountants	2
Condensed Consolidated Financial Statements (Unaudited):
Condensed Consolidated Statements of Financial Position Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Profit	3-4 5-6
Condensed Consolidated Statements of Changes to Equity	7-9
Condensed Consolidated Statements of Cash Flows	10-12
Notes to the Condensed Consolidated Financial Statements	13-30

Review Report of the Auditors to the Shareholders of Israel Canada (T.R) Ltd.

Introduction:

We have reviewed the accompanying financial information of Israel Canada (T.R) Ltd., and subsidiaries (hereinafter: the "Company"), including the condensed consolidated statement of financial position as of March 31, 2025, as well as the condensed consolidated statements of profit or loss, other comprehensive profit, changes to equity and cash flow for the period of three months ended on the same date. The board of directors and management are responsible for the preparation and presentation of financial information for this interim period, pursuant to International Accounting Standard IAS 34, "Interim Financial Reporting," and are responsible for the preparation of financial information for this period pursuant to Section D of the Securities Regulations (Periodic and Immediate Reports), 5730-1970. Our responsibility is to express a conclusion regarding the financial information for this interim period, based on our review.

We have not reviewed the condensed interim financial information of consolidated companies whose assets as included in the consolidation constituted approximately 11.93% of the Company's total consolidated assets as of March 31, 2025, and whose income included in the consolidation constitutes approximately 32.27% of the total consolidated income for the period of three months ended on the same date. Additionally, we did not review the condensed interim financial information of investments accounted for using the equity method, in which the investment amounted to approximately NIS 279,384 thousand as of March 31, 2025, and the Company's share in their results amounted to a profit of approximately NIS 13,980 thousand for the three-month period ended on that date. The financial information for the condensed interim period of the same companies was reviewed by other accountants, whose review reports were provided to us, and our conclusion, inasmuch as it relates to the financial information in respect of the same companies, is based on the review reports prepared by the other accountants.

Scope of the Review:

We conducted our review in accordance with Review Standard No. 2410 (Israel) of the Institute of Certified Public Accountants in Israel, "Review of Financial Information for Interim Periods Prepared by the Entity's Auditor." A review of interim financial information includes making inquiries, particularly with the people responsible for financial and accounting matters, and performing analytic and other review procedures. A review is significantly limited in scope in comparison to an audit conducted in accordance with generally accepted accounting standards in Israel, and therefore does not allow us to reach an assurance that we have become aware of all material issues which may have been identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion:

Based on our review and on the review reports provided by other accountants, nothing has come to our attention which would lead us to believe that the above financial information was not prepared, in all material respects, in accordance with IAS 34.

In addition to the contents of the preceding paragraph, based on our review and on the review reports provided by other accountants, nothing has come to our attention that would lead us to believe that the above financial information does not fulfill, in all material respects, the disclosure requirements set forth in Section D of the Securities Regulations (Periodic and Immediate Reports), 5730-1970.

Brightman Almagor Zohar & Co. Certified Public Accountants A Firm in the Deloitte Global Network

Tel Aviv, May 27, 2025

Tel Aviv – Main Office

1 Azrieli Center, P.O. Box 16593, Tel Aviv 6116402 | Phone: 03-608-5555 | [email protected]

Haifa Office

Jerusalem Office

3 Kiryat HaMada St., Har Hotzvim Tower, P.O. Box 45396, Jerusalem 914510 Phone: +972 (2) 501 888| Fax: +972 (2) 537 4173 [email protected]

Beit Shemesh Office 1 Yigal Alon St., Beit Shemesh, 9906201 5 Ma'ale HaShichrur St., P.O. Box 5648, Haifa, 3105502 Phone: +972 (4) 860 7333 Fax: +972 (2) 867 2528 [email protected]

Ra'anana Office - Infinity Complex 8 HaPnina St., Ra'anana 2

Eilat Office Mirkaz HaIroni, P.O. Box 538 Eilat 88104002 Phone: +972 (8) 637 5676 Fax: +972 (2) 637 1628 [email protected]

Rishon LeZion Office - Millennium Complex 23 Rishonim Blvd., Rishon LeZion

Nazareth Office 9 Marj Ibn Amer St., Nazareth 16100 Phone: +972 (73) 399 4455 Fax: +972 (73) 637 4455 [email protected]

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Financial Position

	As of March 31		As of December 31
	2025 NIS	2024	2024 NIS
		NIS
	thousands	thousands	thousands
	(Unaudited)		(Audited)
Current assets
Cash and cash equivalents	401,626	127,383	410,276
Cash and deposits used in financing accounts	92,670	-	566,068
Financial assets at fair value through profit and loss	89,881	102,659	129,192
Receivables for the sale of real estate inventory and apartments under
construction	52,320	75,873	19,280
Accounts receivable	117,674	108,684	126,481
Income tax receivables	7,471	8,643	5,920
Accounts receivable for hotels	44,183	33,965	41,233
Real estate inventory	458,670	686,768	320,758
Inventory of buildings under planning and construction	2,945,110	1,951,186	2,625,023
Advances on account of real estate inventory	16,250	-	47,780
Total current assets	4,225,855	3,095,161	4,292,011
Non-current assets
Investments and loans in investee companies accounted for using the
equity method, net	1,330,471	1,176,845	1,305,859
Long-term real estate inventory	1,162,407	754,451	1,145,810
Investment real estate	3,041,022	2,598,974	2,893,000
Advances on account of investment real estate	17,695	15,895	13,486
Fixed assets	817,060	616,388	807,495
Advances on account of fixed assets	-	1,113	1,382
Limited use cash and deposits, long term	6,333	5,140	5,266
Right of use assets	419,586	287,812	425,912
Accounts receivable	7,863	6,370	7,066
Deferred tax assets	32,396	43,472	31,771
Investments and other assets	27,212	26,588	27,242
Total non-current assets	6,862,045	5,533,048	6,664,289
	11,087,900	8,628,209	10,956,300
Total assets

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Financial Position

			As of March 31
		2025	2024	As of December 31 2024
		NIS	NIS	NIS
		thousands	thousands	thousands
		(Unaudited)		(Audited)
Current liabilities
Credit from bank corporations and current maturities of long-term loans		2,625,572	3,231,262	2,866,946
Current maturities of bonds		269,254	88,337	269,101
Current maturities of long-term lease liability		22,165	16,330	21,060
Suppliers and service providers		41,165	26,234	36,345
Accounts payable		265,611	102,458	163,244
Current tax liabilities		11,475	11,412	17,515
Liability for provision of construction services		4,200	5,895	4,360
Advances for the sale of real estate inventory and building inventory

under planning and construction		533,393	52,360	421,240
Loans from others		2,514	2,409	2,502
Total current liabilities		3,775,349	3,536,697	3,802,313

Non-current liabilities
Long-term loans from banks		2,117,916	718,345	2,001,362
Loans from others and other liabilities		9,739	26,131	10,175
Bonds		1,050,788	788,418	1,055,667
Lease liability		439,066	298,077	442,578
Deferred tax liabilities		159,539	190,876	169,335
Liability for provision of long term construction services		570	3,562	855
Other non-current liabilities		11,498	11,639	11,627
Total non-current liabilities		3,789,116	2,037,048	3,691,599
Capital attributed to the Company's shareholders
Share capital		3,309	3,226	3,226
Premium on shares		1,234,875	1,110,527	1,110,527

Reserve for operations between a corporation and its controlling owner		30,491	30,491	30,491
Surplus Capital reserve from exchange rate differences for translation of foreign		1,282,915	1,162,092	1,334,498
activities		(73,557)	(77,663)	(71,544)
Revaluation reserve		94,076	-	94,385
Other capital reserves		(15,588)	(1,427)	(15,588)
Total capital attributed to the Company's shareholders		2,556,521	2,227,246	2,485,995
Non-controlling interests		966,914	827,218	976,393

Total capital		3,523,435	3,054,464	3,462,388
Total liabilities and capital		11,087,900	8,628,209	10,956,300
May 27, 2025
Date of Approval of the Financial	Asaf Touchmair	Barak Rosen		Nir Bodaga Bar
Statements	Chair of the Board	CEO and Director		CFO

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Profit

2025 2024 2024 NIS NIS NIS thousands thousands thousands (Unaudited) (Audited) Revenue: Revenue from rental and management of investment real estate 21,796 19,029 80,215 Revenue from the sale of real estate inventory 39,583 2,519 11,679 Revenue from the sale of residential apartments 22,722 36,791 61,115 Revenue from renting real estate inventory 6,107 6,492 25,344 Revenue from management fees 4,511 - 1,645 Revenue from operation and management of hotels 55,928 66,047 291,017 Revenue from marketing and brokerage 4,768 2,657 25,714 Revenue from provision of construction services 446 644 4,886 Appreciation of fair value of investment real estate and profit from its exercise - 1,091 66,371 Company's share in investments accounted for using the equity method, net 16,897 46,390() 200,760 536 - 5,490 Other revenues 173,294 181,660 774,236 Total revenues Expenses and costs: Cost of rent 10,082 8,891 42,961 Cost of sale of real estate inventory 19,618 1,046 7,848 Cost of sale of residential apartments 16,461 23,139 45,335 Cost of operating and managing hotels 60,937 51,770 257,682 Depreciation of fair value of investment real estate 15,182 10,082 38,963 Expenses from provision of construction services 446 644 4,886 Management and general expenses 12,519 20,233 59,821 Marketing and sale expenses 11,457 7,991 38,661 Company's share in loss of investments accounted for using the equity method, net of tax 12,329 10,853() 17,827 - (447) - Other expenses 159,031 134,202 513,984 Total costs and expenses Operating profit 14,263 47,458 260,252 (expenses) Income in financial assets measured at fair value through profit and loss (38,750) 10,693 36,911 Financing income 18,310 8,254 54,114 (25,566) (25,868) (133,280) Financing expenses (loss) Profit before income tax (31,743) 40,537 217,997 7,674 (307) 13,681 Income tax (loss) Profit for the period (24,069) 40,230 231,678 Other comprehensive loss - amounts that will be classified in the future in the income statement: Exchange rate differences for translating foreign operations (1,627) (12,230) (6,072) Other comprehensive profit (loss) - amounts that will not be classified in the future in the income statement: (451) - 135,539 (loss) Profit on revaluation of fixed assets, net of tax (26,147) 28,000 361,145 Total comprehensive profit (loss)	For the three month period ended on March 31		For the year ended on December 31

(*) Reclassified. Refer to Note 2e.

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Profit

	period ended on March 31	For the three month	For the year ended on December 31
	2025	2024	2024
	NIS	NIS	NIS
	thousands	thousands	thousands
	(Unaudited)		(Audited)
Net (loss) profit attributed to:
The Company's shareholders	(26,584)	33,967	206,373
	2,515	6,263	25,305
Non-controlling interests	(24,069)	40,230	231,678
Total comprehensive (loss) profit attributed to:
The Company's shareholders	(28,906)	23,096	296,006
Non-controlling interests	2,759	4,904	65,139
	(26,147)	28,000	361,145
Net (loss) profit per share attributed to the Company's shareholders (in NIS):
Net base (loss) profit:
Net basic profit (loss) per share:	(0.0809)	0.1053	0.6398
Net diluted (loss) profit:
Net diluted profit (loss) per share:	(0.0809)	0.1053	0.6398

Weighted average share capital used in calculating profit per share	328,558	322,566	322,566
Weighted average share capital used in calculating diluted profit per share	328,558	322,566	322,566

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Changes to Equity

	For the three month period ended on March 31, 2025 (unaudited)
	Share capital NIS thousands	Premium on shares NIS thousands	Reserve for activities between a corporation and its controlling owner NIS thousands	Revaluation reserve NIS thousands	Other capital reserves NIS thousands	Capital reserve from exchange rate differences for translation of foreign activities NIS thousands	Retained earnings NIS thousands	Total attributed to the owners of the parent company NIS thousands	Non controlling interests NIS thousands	Total capital NIS thousands
Balance as of January 1, 2025	3,226	1,110,527	30,491	94,385	(15,588)	(71,544)	1,334,499	2,485,995	976,393	3,462,388
Profit for the period	-	-	-	-	-	-	(26,584)	(26,584)	2,515	(24,069)
Capital reserve for translation differences	-	-	-	-	-	(2,013)	-	(2,013)	386	(1,627)
Loss from revaluation of fixed assets, net of tax	-	-	-	(309)	-	-	-	(309)	(142)	(451)
Total comprehensive profit (loss) for the period	-	-	-	(309)	-	(2,013)	(26,584)	(28,906)	2,759	(26,147)
Declared dividend	-	-	-	-	-	-	(25,000)	(25,000)	-	(25,000)
Issue of shares	83	124,349	-	-	-	-	-	124,432	-	124,432
Transactions with non-controlling interest holders	-	-	-	-	-	-	-	-	(2,700)	(2,700)
Distributions for non-controlling interests	-	-	-	-	-	-	-	-	(9,538)	(9,538)
Balance as of March 31, 2025	3,309	1,234,875	30,491	94,076	(15,588)	(73,557)	1,282,915	2,556,521	966,914	3,523,435

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Changes to Equity

(Cont.)

		For the three month period ended on March 31, 2024 (unaudited)
	Share capital	Premium on shares	Reserve for activities between a corporation and its controlling owner	Other capital reserves	Capital reserve from exchange rate differences for translation of foreign activities	Retained earnings	Total attributed to the owners of the parent company	Non controlling interests	Total capital
	NIS	NIS	NIS	NIS	NIS	NIS	NIS	NIS	NIS
	thousands	thousands	thousands	thousands	thousands	thousands	thousands	thousands	thousands
Balance as of January 1, 2024	3,226	1,110,527	30,491	(1,427)	(66,792)	1,153,125	2,229,150	826,608	3,055,758
Profit for the period	-	-	-	-	-	33,967	33,967	6,263	40,230
Capital reserve for translation differences	-	-	-	-	(10,871)	-	(10,871)	(1,359)	(12,230)
Total comprehensive profit (loss) for the period	-	-	-	-	(10,871)	33,967	23,096	4,904	28,000
Declared dividend	-	-	-	-	-	(25,000)	(25,000)	-	(25,000)
Distributions for non-controlling interests	-	-	-	-	-	-	-	(4,294)	(4,294)
Balance as of March 31, 2024	3,226	1,110,527	30,491	(1,427)	(77,663)	1,162,092	2,227,246	827,218	3,054,464

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Changes to Equity

(Cont.)

	For the year ended on December 31, 2024
	Share capital NIS thousands	Premium on shares NIS thousands	Reserve for activities between a corporation and its controlling owner NIS thousands	Revaluation Reserve NIS thousands	Other capital reserves NIS thousands	Capital reserve from exchange rate differences for translation of foreign activities NIS thousands	Retained earnings NIS thousands	Total attributed to the owners of the parent company NIS thousands	Non controlling interests NIS thousands	Total capital NIS thousands
Balance as of January 1, 2024	3,226	1,110,527	30,491	-	(1,427)	(66,792)	1,153,125	2,229,150	826,608	3,055,758
Profit for the year Exchange rate losses due to translation of foreign	-	-	-	-	-	-	206,373	206,373	25,305	231,678
activity	-	-	-	-	-	(4,752)	-	(4,752)	(1,320)	(6,072)
Gain on revaluation of fixed assets, net of tax	-	-	-	94,385	-	-	-	94,385	41,154	135,539
Total comprehensive profit (loss) for the year	-	-	-	94,385	-	(4,752)	206,373	296,006	65,139	361,145
Paid dividend	-	-	-	-	-	-	(25,000)	(25,000)	-	(25,000)
Transactions with non-controlling interest holders	-	-	-	-	(14,161)	-	-	(14,161)	(1,722)	(15,883)
Capital investments with non-controlling interest holders	-	-	-	-	-	-	-	-	92,254	92,254
Distributions for non-controlling interests	-	-	-	-	-	-	-	-	(5,886)	(5,886)
Balance as of December 31, 2024	3,226	1,110,527	30,491	94,385	(15,588)	(71,544)	1,334,498	2,485,995	976,393	3,462,388

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Cash Flows

	For the three month period ended on March 31	For the year ended on December 31
	2025 NIS	2024 NIS	2024 NIS
	thousands	thousands	thousands
	(Unaudited)		(Audited)
Cash flows from current activities
Net cash used for (arising from) current activities (Appendix A)	(287,280)	735	(88,419)
Cash flows from investment activities
Provision of loans to companies accounted for using the equity method,
net of tax	(11,717)	(27,431)	(66,787)
Repayment of loans from companies accounted for using the equity
method, net of tax	1,500	16,622	73,494
Purchase and investments in investment real estate (including investment
real estate under construction), net	(129,365)	(28,659)	(402,200)
Advances on account of investment real estate	(4,209)	(5,997)	(22,730)
Sale of financial instruments at fair value through profit and loss, net	561	2,923	2,608
Purchase and investment of fixed assets	(17,781)	(4,691)	(59,964)
Acquisition of other assets	30	-	(652)
Changes in restricted use cash and deposits	472,331	-	(566,196)
Net cash deriving from (used in) investing activities	311,350	(47,233)	(1,042,427)

Cash flows from financing activities
Transactions with non-controlling interest holders	(2,700)	-	(15,883)
Credit from banks, net	77,421	45,024	222,903
Repayment of bonds and buyback	-	-	(88,464)
Issuance of bonds	-	-	533,933
Issuance of shares, net	124,432	-	-
Distributions for non-controlling interests	(9,538)	(4,294)	(5,886)
Receipt of a loan from others	-	-	435
Dividend paid	-	-	(25,000)
Repayment of loan from others	(545)	(1,962)	(672)
Repayment of lease liability	(6,415)	(3,785)	(23,247)
Capital investments with non-controlling interest holders	-	-	92,254
Long-term loan from banks	282,737	46,096	895,355
Repayment of long-term loan from banks	(497,278)	(107,557)	(244,473)

Net cash (used for) arising from financing activities	(31,886)	(26,478)	1,341,255
Exchange rate differences for balances of cash and cash equivalents	(834)	(30)	(522)
(decrease) Increase in cash and cash equivalents	(8,650)	(73,006)	209,887
Balance of cash and cash equivalents at beginning of the period	410,276	200,389	200,389
Balance of cash and cash equivalents at end of the period	401,626	127,383	410,276

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Cash Flows

(Cont.)

Appendix A - Net cash arising from (used for) current activities:

	For the three month period ended on March 31	For the year ended on December 31
	2025	2024	2024
	NIS	NIS	NIS
	thousands	thousands	thousands
	(Unaudited)		(Audited)
Net (loss) profit	(24,069)	40,230	231,678
Adjustments to profit or loss sections:
Profits of companies treated according to the equity method (including
financing income, net), net of tax	(11,001)	(46,505)	(212,998)
(decrease) Increase in fair value of investment real estate, net	15,182	8,991	(27,408)
(Profit) loss from fair value adjustment of financial instruments at fair
value through profit or loss	38,750	(10,693)	(36,911)
Revaluation of bonds	(516)	540	3,089
Revaluation of loan from banking corporations	6,596	16,643	45,116
Depreciation of fixed assets and assets for lease	18,547	11,939	66,496
Revaluation of loan from others	120	727	537
Net deferred taxes	(10,421)	8,411	(15,937)
	57,257	(9,947)	(178,016)
Changes in sections of assets and liabilities:
(increase) Decrease in income tax receivables	(1,551)	9,895	12,618
Increase (decrease) in advances for the sale of real estate inventory and
building inventory under planning and construction	112,153	10,880	379,760
(increase) Decrease in accounts receivable	6,442	(17,315)	(44,692)
(Increase) in receivables for the sale of real estate and apartments under
construction	(33,040)	(13,792)	42,801
Increase (decrease) in suppliers and service providers	4,820	(2,069)	8,042
(decrease) Increase in accounts payable and liabilities for current taxes	(32,863)	17,542	110,819
Decrease in inventory of real estate and buildings for sale due to sales
(before purchase and investment in land)	34,974	23,043	41,034
	90,935	28,184	550,382
Net cash arising from current activities (before purchase and
investment in land)	124,123	58,467	604,044
Land purchases and investments (including capitalized financing costs)	(411,403)	(57,732)	(692,463)
Net cash arising from (used for) investment activities	(287,280)	735	(88,419)

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Cash Flows (Cont.)

Appendix B - Additional information on cash flows from current activity:

		For the three month period ended on March 31
	2025 NIS thousands	2024 NIS thousands	December 31 2024 NIS thousands
	(Unaudited)		(Audited)
Cash paid during the period for:
Interest	67,935	55,636	277,509
Income tax	9,549	876	39,135
Cash received during the period for:
Interest	1,175	1,647	6,228
Income tax	367	19,828	21,927

Note 1 - General

Israel Canada (T.R) Ltd. (hereinafter: the "Company" or "Group") is engaged through consolidated companies in the development, marketing, and management of real estate projects in Israel and abroad. Additional information about the Group's operating segments is presented in Note 6.

These condensed consolidated reports should be read in conjunction with the Company's annual financial statements as of December 31, 2024, and for the year then ended, and the accompanying notes, except for new standards.

Note 2 - Significant Accounting Policies

a. Basis of Preparation of the Financial Statements:

The Group's condensed consolidated financial statements (hereinafter: "Interim Financial Statements") have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" (hereinafter: "IAS 34").

In preparing these Interim Financial Statements, the Group applied accounting policies, presentation rules, and calculation methods identical to those applied in the preparation of its financial statements as of December 31, 2024, and for the year then ended.

The condensed consolidated financial statements were prepared in accordance with the disclosure provisions in Chapter D of the Securities Regulations (Periodic and Immediate Reports), 5730-1970.

b. Determining Fair Value of Investment Real Estate and Investment Real Estate Under Construction in Interim Reports:

To determine the fair value of investment real estate, the Company relies on an appraisal conducted by an independent appraiser once a year or at the initial recognition of the investment real estate. Additionally, at each interim reporting date, the Company assesses the need to update the estimated fair value of its investment real estate relative to the fair value determined at the last appraisal date to verify whether this estimate represents a reliable estimate of fair value as of the interim reporting date. This assessment is conducted by reviewing changes in the relevant real estate market, lease agreements for the property, the macroeconomic environment of the property, as well as new information regarding significant transactions conducted in the vicinity of the property and similar properties, and any other information that may indicate changes in the property's fair value. If the Company assesses that certain properties' fair value as of the interim reporting date is materially different from the fair value estimated at the last appraisal date, the Company estimates the fair value of these properties as of the interim reporting date.

As of March 31, 2025, the Company, with the assistance of external appraisers, examined whether there were indications that the fair value of the investment real estate materially differed from the value estimated by an external appraiser on December 31, 2024. In the review conducted during the reporting period, which included economic impact factors such as capitalization rates, occupancy rates, rent levels for the Company's properties, and real estate transactions, the Company recognized a net decrease in fair value of investment real estate in the amount of approximately NIS 15 million.

c. Income Tax in Interim Reports:

The income tax expenses (income) for the periods presented include the total current taxes and the total change in deferred tax balances, except for deferred taxes arising from transactions charged directly to equity and business combination transactions.

Tax expenses (income) in interim periods are accrued using the average annual effective income tax rate. For calculating the effective income tax rate, tax losses for which deferred tax assets have not been recognized, expected to reduce tax liability in the reporting year, are deducted.

Note 2 - Significant Accounting Policies (cont.):

d. Exchange Rates and Linkage Basis:

(1) Balances in foreign currency or linked to it are included in the financial statements according to the representative exchange rates published by Bank of Israel and in effect at the end of the reporting period.
(2) Balances linked to the Consumer Price Index are presented according to the latest known index at the end of the reporting period (the index of the month preceding the month of the financial report date).
(3) Below is data on the exchange rate of the dollar and the index:

		Exchange rate of	Known consumer	Known construction
	Dollar	Euro	Ruble	price index	input index
	(NIS to USD 1)	(NIS to EUR 1)	(NIS to RUB 1)	(Points)	Points
Date of the financial
statements:
As of March 31, 2025	3.7180	4.0219	0.0449	109.548	138.2
As of March 31, 2024 As of December 31, 2024	3.6810	3.9791	0.0390	106.000	130.2 133.6
	3.6470	3.7964	0.0300	108.400
Change rates:	%	%	%	%	%
For the three month period
ended on:
March 31, 2025	1.95	5.94	49.66	1.05	3.44
March 31, 2024	1.5	(0.8)	(2.5)	0.95	0
For the year ended on:
December 31, 2024	0.55	(5.36)	(25)	3.24	2.93

e. Proactive Change in Accounting Policy:

Presentation of the Company's share in the results of investments accounted for using the equity method The Company has chosen to classify its share in the results of investments accounted for using the equity method as part of operating profit, instead of presenting them after operating profit and finance expenses. In the opinion of the Company's management, the presentation as stated provides more reliable and relevant information regarding the Company's operating profit, which now includes the results of companies accounted for using the equity method that operate in the same business segments in which the Group operates.

Note 3 - Financial Instruments

Financial instruments that are not measured at fair value:

Excluding what is detailed in the following table, the Group belies that the book value of the financial assets and undertakings presented at an amortized cost in the financial statements is roughly similar to their fair value:

	Book value
	As of March 31		As of December 31
	2025	2024	2024
	NIS	NIS	NIS
	thousands	thousands	thousands
	(Unaudited)		(Audited)
Financial liabilities:
Series F Bonds and interest payable	19,954	109,684	19,632
Series G Bonds and interest payable	774,769	783,294	770,895
Series H Bonds and interest payable	542,851	-	534,241
	1,337,574	892,978	1,324,768

	Fair value
	As of March 31		As of December 31
	2025	2024	2024
	NIS thousands	NIS thousands	NIS thousands
		(Unaudited)
Financial liabilities:			(Audited)
Series F Bonds and interest payable	19,876	109,139	19,587
Series G Bonds and interest payable	824,919	733,830	770,895
Series H Bonds and interest payable	552,183	-	534,242
	1,396,978	842,969	1,324,724

Note 4 - Material Events and Transactions in the Reporting Period

a. Decision on the distribution of dividends

On March 24, 2025, the Company's Board of Directors approved a cash dividend distribution in the amount of NIS 25,000 thousand to the Company's shareholders. The dividend was distributed on April 9, 2025, after the balance sheet date.

b. Bank loan - "Cities Junction Tower" Project

Further to the provisions of Note 12(b)(10) to the Company's consolidated financial statements as of December 31, 2024, in February 2025, the loan was extended and its final maturity date was set for November 23, 2026 (instead of January 30, 2025). The loan terms remained unchanged.

c. Investment in Kadima Zoren project

Further to the provisions of Note 15(a) to the Company's consolidated financial statements as of December 31, 2024, on January 6, 2025, the Subsidiary, together with an unrelated third-party partner (the Subsidiary's share in the transaction – 50%), entered into an agreement for the purchase of approximately 162 additional undivided dunams of land, for total consideration of approximately NIS 73 million plus VAT as required by law. The purchase is subject to the fulfillment of several conditions precedent.

As of March 31, 2025, the Company has paid an advance in the amount of approximately NIS 12 million.

d. "Midtown Jerusalem" Project

Further to the provisions of Note 15m to the Company's consolidated financial statements as of December 31, 2024, on February 25, 2025, a full building permit was received for the residential towers in the "Midtown Jerusalem" project. Also, on this date, an agreement was signed with Tidhar Construction Ltd. for the execution of main contractor works in the residential and office sections, for total consideration of approximately NIS 1.3 billion.

On February 2, 2025, the project company paid approximately NIS 199 million in improvement fees to obtain a full permit. In addition, a bank guarantee and a guarantee from a financial institution were provided in the amount of approximately NIS 199 million.

As of March 31, 2025, the Company included a provision for this liability based, among other things, on the opinion of its professional advisors on the matter.

In accordance with revenue recognition principles, the Company began recognizing revenue from the project during the reporting period. As of March 31, 2025, revenues were recorded in the amount of approximately NIS 11.4 million.

For further details regarding the receipt of a full building permit for the office tower and the mixed-use tower in the Midtown Jerusalem project, refer to Note 5(c).

e. Purchase of land on Emek Bracha Street in Tel Aviv

Further to the provisions of Note 15t to the Company's consolidated financial statements as of December 31, 2024, on January 9, 2025, the Subsidiary entered into an agreement with a third party that is not related to the Company and/or its controlling shareholders, for the purchase of approximately 20% undivided shares in the real estate (hereinafter: the "Remaining Property").

As consideration for the purchase of the Remaining Property, the Subsidiary paid a total amount of approximately NIS 36 million plus VAT as required by law (hereinafter: the "Consideration"), in two payments as follows:

(1) An amount of NIS 12 million plus VAT was paid upon the signing of the agreement against the registration of a cautionary note in favor of the Subsidiary's subsidiary.
(2) A total of approximately 24 million plus VAT was paid after the balance sheet date, on April 8, 2025.

Note 4 - Material Events and Transactions in the Reporting Period (cont.)

f. Private placement of shares to investors

Further to the provisions of Note 16(d) to the Company's consolidated financial statements as of December 31, 2024, on January 26, 2025, the Company's Board of Directors approved an allocation of the Company's shares to investors Migdal Index Stocks Israel Ltd., which is a related party to the Company, Mor Mutual Fund Management (2013) Ltd., Phoenix Amitim Israel Equity Partnership, and another investor (hereinafter, jointly: the "Investors"), in a private placement pursuant to the Private Placement Articles, under which the Company allocated to the Investors 8,333,334 shares of the Company at a price of NIS 15 per share and for total consideration of approximately NIS 125 million. The allocation was completed on January 27, 2025, against the full transfer of the private offering proceeds to the Company.

g. Bank loan for the purchase of the house in Kfar Shmaryahu

Further to the provisions of Note 12b(9) to the Company's consolidated financial statements as of December 31, 2024, on February 6, 2025, an amendment letter to the agreement with the banking corporation was signed, pursuant to which the credit facility was increased to a total amount of NIS 187 million. All other terms remained unchanged.

h. Joint venture Herzliya 4006

During the years 2016–2021, the Company, through a wholly owned subsidiary (hereinafter: the "Subsidiary"), together with partners, purchased portions of Blocks 6590 and 6591, which form part of the lot known as Lot 4006 in Herzliya, with the Subsidiary's share in the joint venture being approximately 23%.

On March 6, 2025, the Subsidiary, together with a third party unrelated to the Company, entered into an agreement to purchase the full ownership rights of an additional partner in the joint venture (approximately 23%) for total consideration of approximately NIS 82 million (the Company's share – approximately NIS 68 million). The consideration will be paid upon receipt of a Form 4, certificate of occupancy, for the project.

The partners are working to complete the construction of an office and commercial building on the property.

i. Kremnitsky, Tel Aviv

On March 18, 2025, a partnership that is 100% held by the Company, together with Check Point Software Technologies Ltd. (hereinafter: "Check Point"), submitted a bid in a tender conducted by the Tel Aviv-Yafo Municipality in cooperation with the Israel Electric Corporation Ltd., for the purchase of long-term lease rights in Lot 201 under Plan TA/MK/4784 (hereinafter: the "Property"), known as the Israel Electric Corporation's technical center on Kremenetsky Street in Tel Aviv-Yafo, with an area of approximately 13.5 dunams. The lot allows for the construction of approximately 302 residential units, approximately 1,500 square meters of retail space to be attached to the residential buildings, approximately 60,000 square meters of office space, and approximately 2,700 square meters of additional retail space, for total consideration of approximately NIS 818 million plus VAT as required by law.

On April 24, 2025, and on May 14, 2025, the Company received notices from the Tender Committee and from the Tel Aviv City Council, respectively, regarding the approval of its win in the tender. Pursuant to the agreements between the Company and Check Point, the residential rights will be owned by the Company, while the office and commercial rights will be owned by Check Point (the "Joint Activity"). In addition, it was agreed that an amount of approximately NIS 318 million out of the total consideration would be paid by the Company for the residential rights, and the remaining amount, approximately NIS 500 million, would be paid by Check Point for the office and commercial rights. Arrangements were agreed upon between the parties regarding the joint activity, which will be reported by the Company in accordance with the provisions of the law, if and to the extent that the approvals are obtained.

j. "SHE" Project

Further to the provisions of Note 15h to the Company's consolidated financial statements as of December 31, 2024, on March 20, 2025, the Project Partnership entered into an agreement with Solel Boneh, Limited Partnership, for the execution of shoring and excavation works, in a scope of work totaling NIS 35 million.

k. Midtown Jerusalem - Bank loan

Further to the provisions of Note 12(b)2 to the Company's consolidated financial statements as of December 31, 2024, on March 24, 2025, the Company signed an agreement with the bank to extend the loan's maturity date to September 30, 2025 (instead of March 31, 2025). In addition, the credit limit increased from NIS 1 billion to NIS 1.125 billion.

The Company is working with the bank, together with additional institutional entities, to sign a financing agreement for the construction of the project.

Note 4 - Material Events and Transactions in the Reporting Period (cont.)

l. Legislative updates

On March 23, 2025, a notice was published by Bank of Israel stating that the Bank is closely and continuously monitoring developments in the housing market, and in particular, the various financing mechanisms being offered in the market by real estate developers. In light of this, Bank of Israel published a draft temporary directive, which includes guidelines for banks aimed at reducing the risk for all parties involved in the market by strengthening risk management, enhancing monitoring capabilities, and reinforcing consumer protection, which shall remain in effect until the end of 2026, as follows:

(a) An additional capital allocation for residential construction projects in which a significant portion of the sale price is deferred to the delivery date, exceeding 25%;

(b) Setting a limitation on the rate of disbursements in bullet or balloon loans subsidized by a contractor, such that it shall not exceed 10% of the total monthly disbursements for housing-purpose loans.

To the understanding of the Company, which relies on instructions from banks under its supervision and appraisers overseeing on behalf of the banks, the Company is not required to make a material change to its routine payment schedules.

m. Request for approval of the share transfer in the subsidiary Hatzlachat Hasharon

On February 21, 2024, the Company submitted a request to the Israel Tax Authority for a pre-ruling to approve the transfer of rights in the partnership for the development of Young Ramat Hasharon from the Subsidiary, Hatzlachat Hasharon, to the Company, all subject to Section 104c and the provisions of Part E2 of the Income Tax Ordinance. On March 20, 2025, the Company received approval from the tax authorities.

n. Harova Hatzfoni Project, Herzliya

Further to the provisions of Note 15(x) to the Company's consolidated financial statements as of December 31, 2024, on March 20, 2025, the Company entered into a financing agreement with a local bank for the provision of a credit facility in the amount of approximately NIS 80 million. The final repayment date of the loan is March 20, 2027. In accordance with the agreement with the bank, the Company will repay the loan in installments according to the progress of sales.

As of March 31, 2025, the Company marketed approximately 4.3 dunams for a total amount of approximately NIS 36 million.

o. Bank loan - "SHE" Project

Further to the provisions of Note 12(b)(6) to the Company's consolidated financial statements as of December 31, 2024, on March 31, 2025, the Company refinanced the outstanding loan balance in the amount of approximately NIS 275 million and signed with the bank a credit facility in the amount of approximately NIS 350 million under the same terms, with no change in the interest conditions. The loan was extended until of December 31, 2025.

The loan balance in the books as of March 31, 2025, is approximately NIS 287 million.

p. Acquisition of part of the land constituting the Gonen Resort:

Further to the provisions of Note 15(k)(5) to the Company's consolidated financial statements as of December 31, 2024, on March 5, 2025, the Israel Land Authority approved the transfer of the regulated real estate to the Association, thereby fulfilling the condition precedent, and the Company is working to complete the transaction and pay the consideration.

Note 4 - Material Events and Transactions in the Reporting Period (cont.)

q. Iron Swords War

Further to the provisions of Note 4q to the Company's consolidated financial statements as of December 31, 2024, the main effects of the Iron Swords War (the "War") on the Company's operations as of the date of this Report are as follows:

With regard to the Company's ongoing development projects, as of the first quarter of 2025 and the Report Date, activity at the sites is proceeding as usual and therefore has no material impact on the progress of the Company's projects. It is clarified that to the extent there are sites that do not operate at full capacity, this will lead to an increase in financing costs and a rise in the cost of project construction (and accordingly, a reduction in project surpluses), as well as an increase in rental expenses paid to the owners of existing residential units in urban renewal projects.

The War has resulted in a shortage of skilled labor at construction sites as well as an increase in the prices of raw materials required for the execution of projects, in a manner that leads to an increase in execution costs in the projects, both in cases where a contractor execution agreement has not yet been signed, and in projects where the execution agreement is linked to the Construction Input Index. This is reflected both in the sharp increase in the Construction Input Index for January 2025, and in the announcement by the Central Bureau of Statistics regarding a further significant increase expected by the end of 2025. In addition, the continuation of the War may lead to extended construction timelines and delays in the completion of the projects. Additionally, the War has led to an increase in inflation, which contributes to the persistence of a high interest rate environment. In light of the situation, the Company is updating its project construction cost forecasts in accordance with its assessments and based on contractor agreements actually signed. Conversely, the Company's revenue estimates for the projects were also updated in light of the increase in selling prices, based on actual sales of residential units in the various projects.

As stated, as of the Report's publication date, the impact of the War on the Company's operating results is present but not significant. However, as Operation "Gideon's Chariots" progresses and/or as additional fronts are opened beyond the existing fronts, the Company's assessments may change, including significantly.

With respect to the Company's income-producing properties, as of the date of publication of this Report, the vast majority of tenants are paying full rent without concessions (such as deferred payments), which were granted on a case-by-case basis at the outset of the War. At this stage, the Company does not expect significant harm to its revenues as a result, and it appears there is stability in the occupancy rates of the Company's income-producing assets.

With respect to the Company's hotel segment – hotel operations in Israel are affected by characteristics unique to the tourism industry, as well as by economic and security-related factors that directly impact this sector. Until the end of 2024, the War did not have a material impact on the results of the Hotel Company, given that the Company's hotels maintained high occupancy due to hosting evacuees from the south and north, as needed and in accordance with the circumstances. This was managed while adjusting the level of expenses (including placing employees on unpaid leave and vacations as necessary) to match the scope of operations during this period. Nevertheless, during the reporting period, most of the evacuees left the Company's hotels, and this, together with seasonality in the industry, had an impact on the results of the hotel operations for the first quarter of 2025.

In addition, although most airlines have resumed operations in Israel, the continuation of aerial attacks, after the reporting period, has led to cancellations by foreign airlines—some for several days and others for longer periods (which have not yet ended). The continued suspension of operations by foreign companies—which, in the Company's assessment, if foreign airlines do not resume operations in Israel—is also expected to affect the operations and results of the Hotel Company in the coming quarters.

It is noted that the prolongation and/or escalation of the War and its impact on the tourism industry as a whole (both domestic and international tourism) could affect the demand for the Company's hotels and impact the business results of the Company's hotel operations in the coming quarters, which at this stage cannot be estimated.

Note 4 - Material Events and Transactions in the Reporting Period (cont.)

q. Iron Swords War (cont.):

Possible Effects of the Prolongation and Expansion of the War:

A further prolongation of the warfare and/or an expansion of the War to additional high-intensity fronts may materially affect the Company's operations, as it may lead to: (1) cancellation and/or downsizing of projects and delays in the pace of development procedures and entry into new projects; (2) delays in planning, permitting, and execution processes of the projects in a manner that may lead to delays in the completion and delivery of the projects to purchasers; (3) a decline in the financial resilience of key subcontractors and suppliers; (4) an increase in construction costs (including due to a shortage of manpower) and a significant rise in the Construction Input Index; (5) a material decline in demand for residential units, office space, and commercial space marketed by the Company (due to harm to the financial capacity of potential buyers/tenants, decisions by Bank of Israel imposing restrictions on the banks that reduce the possibilities of offering benefits to buyers, general negative sentiment, and the uncertainty inherent in wartime); (6) a decline in selling and/or rental prices and/or departure of tenants; (7) restrictions on the availability of bank credit to the real estate sector, increased threshold requirements for financing (including requirements to increase the equity provided by the Company in its projects), tightening of financing terms, and delays in the provision of the financing required for the Company's operations (as this is dependent, among other things, on the pace of apartment/office sales and leasing of space in the projects); (8) an excess supply of leasable space, which will impact capitalization rates and the Company's projected NOI; (9) failure of buyers/tenants to meet their obligations toward the Company; (10) an impact on domestic and inbound tourism, which will affect occupancy rates in the hotels managed by the Company and accordingly the revenues and profitability of this segment.

Material Events and Transactions in the Reporting Period

r. Lev Bavli Ltd.

Further to the provisions of Note 8(b)(4)b to the Company's consolidated financial statements as of December 31, 2024, on January 6, 2025, a building permit was received for the project.

s. Joint Venture - Vertical City Ltd.

Further to the provisions of Note 8(b)(4)(z) to the Company's consolidated financial statements as of December 31, 2024, during the month of February 2025, the Project Company signed an agreement with Electra Construction Ltd. (hereinafter: the "Contractor") for excavation, shoring, and foundation works only in the public lot (within the area of Begin Street). The Contractor is responsible for the construction of a six-level underground parking garage, under a design–build framework, for a total consideration of approximately NIS 390 million plus VAT as required by law.

t. ICR – Salame Project, Tel Aviv

In February 2025, an agreement was signed between a subsidiary of ICR and the co-owner of the real estate located on Salame Street in Tel Aviv (hereinafter: the "Seller") (ICR's subsidiary's share in the property is 50%), and a third party (hereinafter: the "Buyer"), for the sale of the real estate, for total consideration of NIS 67.5 million plus VAT (hereinafter: the "Consideration"). In addition to the Consideration, the Buyer will pay an amount of NIS 600,000 for the eviction of a protected tenant in the property, within seven days of the Seller's demand, directly to the protected tenant and/or in accordance with the Seller's instructions. Any additional amount required for the eviction of the protected tenant will be paid solely by the Seller, and the Buyer shall have no involvement and/or responsibility and/or obligation toward the protected tenant. It is clarified that this amount is not part of the Consideration but is in addition thereto.

The Consideration shall be paid by the Buyer according to the following schedule and amounts:

A payment in the amount of NIS 6.6 million plus VAT (hereinafter: the "First Payment"), was paid by the Buyer via a bank check payable to the Seller. The remaining balance of the Consideration, plus VAT, shall be paid by the Buyer to the Seller no later than 21 business days following the issuance of a building permit (which includes an unconditional demolition permit) and the actual eviction of the protected tenant.

On March 5, 2025, a building permit was issued for the project. During the month of May 2025, after the balance sheet date, the protected tenant was evicted, and the parties are proceeding toward completing the transaction.

Note 4 - Material Events and Transactions in the Reporting Period (cont.)

Material Transactions and Events During the Reporting Period in Associates (cont.):

u. ICR – Urban Renewal on Bar Kochva Street, Neve Yisrael Neighborhood – "Hagefen" Project, Herzliya

Further to the provisions of Note 8(b)(4)(f)(5) to the Company's consolidated financial statements as of December 31, 2024, in January 2025, ICR received Form 4, certificate of occupancy, for the "Hagefen A" Project in Herzliya, which is currently in the occupancy stage.

v. ICR – Neve Gan Project (North Park) - Stage C, Complexes B and C (Lots 18-20)

Further to the provisions of Note 8(b)4(f)4 to the Company's consolidated financial statements as of December 31, 2024, on March 30, 2025, a permit for excavation and shoring was received for Plot 20 – 100 residential units in the North Park Project, Stage C.

w. ICR – Urban Renewal Project on Histadrut Street, Givatayim

Further to the provisions of Note 8(b)4(f)9 to the Company's consolidated financial statements as of December 31, 2024, during the reporting period, all the conditions precedent for the implementation of the urban renewal agreement in the "Air" Project (Histadrut), Givatayim, were fulfilled. In January 2025, a full building permit for the project was received, and ICR commenced demolition and execution of the project.

Note 5 - Transactions and Events After the End of the Reporting Period:

a. Investment in Norstar shares

After the balance sheet date and up to the date of publication of the financial statements, the share price of Norstar increased by approximately 26%. As of the publication date of the financial statements, the Company is expected to record a pre-tax profit of approximately NIS 22 million from this shareholding.

b. Completion of the Acquisition of Brown Hotels Operations

Further to the provisions of Note 15(k)(10) to the Company's consolidated financial statements as of December 31, 2024, on April 3, 2025, after the balance sheet date, all the conditions precedent for the transaction were fulfilled, and the Hotel Company completed the acquisition of the Brown Hotels operations for total consideration of approximately NIS 131 million plus VAT as required by law. The transaction was completed through a combination of equity and a shareholder loan (approximately NIS 56 million), and external financing from a local bank (approximately NIS 74 million).

Upon completion of the transaction, and together with its existing operations, the Hotel Company owns and operates approximately 3,650 hotel rooms in Israel and Greece.

On April 10, 2025, after the balance sheet date, an agreement was signed for the acquisition of 50% of the shares of Ben Yehuda Boutique Hotels Ltd., which owns the Deborah Brown Hotel, separately from the main Brown acquisition transaction.

c. Receipt of Full Building Permit for the Office Tower and Mixed-Use Tower in the Midtown Jerusalem Project

Further to the provisions of Note 15(y)(3) to the Company's consolidated financial statements as of December 31, 2024, on April 28, 2025, after the balance sheet date, a full building permit was received for the office tower and the mixed-use tower, which includes rights for hotel use and rental housing.

d. Series H Bonds

Further to the provisions of Note 8(b)(3) to the Company's consolidated financial statements as of December 31, 2024, on May 8, 2025, following a public and institutional tender, the Company expanded Series H and raised approximately NIS 210.8 million in consideration for the allocation of 200 million par value Series H bonds, at a unit price of approximately NIS 1,054.

Note 5 - Transactions and Events After the End of the Reporting Period (cont.):

e. Joint Venture - A.K.A. Beit Mars Ltd.:

Further to the Provisions of Note 8(b)(4)(h) to the Company's Consolidated Financial Statements as of December 31, 2024, during April 2025, after the balance sheet date, the term of the financing loan for the land was extended until February 28, 2027.

f. Joint Venture - Rem Canada Beit America Ltd.:

Further to the provisions of Note 8(b)(4)e to the Company's consolidated financial statements as of December 31, 2024, on May 14, 2025, after the balance sheet date, the Local Committee of the Tel Aviv Municipality approved for deposit a plan that includes additional building rights of approximately 16,000 square meters (approximately 4,600 square meters for residential use, with the remainder allocated to office and commercial space).

Note 6 - Sector Reporting

a. General:

Operating segments are identified based on internal reports regarding the Group's components, which are regularly reviewed by the Group's chief operating decision maker for the purpose of resource allocation and evaluating the performance of the operating segments. The reporting system provided to the Group's chief operating decision maker for resource allocation and assessing the performance of various segments is based on geographic regions, the method of marketing the projects, and the way revenue and operating profit are generated from the project. For projects managed in an investee company in which the Company is a partner and which are presented in the financial statements using the equity method, data is reviewed based on the Company's relative share in the project. General and administrative expenses are not attributed to the Company's segments and therefore appear under unallocated expenses.

The following are the Company's operating segments in accordance with IFRS 8:

Segment A - Project development in Israel: Segment B - Real estate in Israel:	Generates its revenue from projects in Israel where the Group develops and sells commercial spaces and/or offices and/or apartments under the Sale Law Guarantee, as well as from the sale of land at opportunistic prices. Generates its revenue from the Company's activities in selling and/or marketing land in Israel.
Segment C - Investment Real Estate in Israel:	Generates its revenue from the Company's activities in leasing and/or holding land in Israel designated for development for leasing purposes.
Segment D - Hotel Segment:	Represents the Company's activities in the hotel sector.
Segment E - Real Estate in Russia:	Represents the Company's activities in the project in Russia.
Segment F - Other:	Mainly represents the Company's activities in initiating and managing purchase groups in Israel, investing in innovation corporations related to real estate, senior living, parking management, and a project in Poland.

Note 6 - Sector Reporting (cont.)

b. Analysis of Income and Expenses Based on Sector of Activity:

		For the three month period ended on March 31, 2025 (unaudited)
	Establishing projects in Israel NIS thousands	Real property in Russia NIS thousands	Real property in Israel NIS thousands	Investment real estate in Israel NIS thousands	Hotels NIS thousands	Other NIS thousands	Adjustments NIS thousands	Total NIS thousands
Income	116,309	635	54,170	21,832	55,928	5,588	(81,168)	173,294
Sector's results	19,476	593	30,033	(5,423)	(5,009)	(492)	(7,828)	31,350
Unattributed expenses Financing expenses Financing income								(17,087) (64,316) 18,310
Profit before income tax								(31,743)
Sector assets	5,474,220	206,054	1,322,937	3,649,375	1,296,843	305,055	(1,166,584)	11,087,900
Sector liabilities	(4,038,096)	(84,179)	(670,038)	(1,865,558)	(954,354)	(162,938)	210,698	(7,564,465)

Note 6 - Sector Reporting (cont.)

b. Analysis of Income and Expenses Based on Sector of Activity: (cont.)

		For the three month period ended on March 31, 2024 (unaudited)
	Establishing projects in Israel NIS thousands	Real property in Russia NIS thousands	Real property in Israel NIS thousands	Investment real estate in Israel NIS thousands	Hotels NIS thousands	Other NIS thousands	Adjustments NIS thousands	Total NIS thousands
Income	162,202	47,820	13,872	20,398	66,047	6,927	(131,457)	185,809
Sector's results	36,058	44,668	8,923	(1,815)	14,157	1,646	(28,312)	75,325
Unattributed expenses Financing expenses Financing income								(27,866) (15,175) 8,254
Profit before income tax								40,537
Sector assets	4,644,727	210,860	1,238,546	3,228,527	963,985	260,915	(1,919,351)	8,628,209
Sector liabilities	(3,585,808)	(84,179)	(583,195)	(1,648,396)	(736,307)	(138,776)	1,202,916	(5,573,745)

Note 6 - Sector Reporting (cont.)

b. Analysis of Income and Expenses Based on Sector of Activity: (cont.)

	For the year ended on December 31, 2024
	Establishing projects in Israel NIS	Real property in Israel NIS	Investment real estate in Israel NIS	Hotels NIS	Real property in Russia NIS	Other NIS	Adjustments for consolidated NIS	Total NIS
	thousands 465,575	thousands 54,310	thousands 88,619	thousands 291,017	thousands 57,088	thousands 19,982	thousands (202,355)	thousands 774,236
Income
Sector's results	51,797	30,775	205,539	33,333	56,020	(3,334)	(38,675)	335,456
Unattributed expenses Financing expenses Financing income								(75,204) (133,280) 91,025 217,997
Profit before income tax
Sector assets	5,073,846	1,179,779	3,506,612	1,291,253	181,305	290,621	(567,116)	10,956,300
Sector liabilities	(4,096,135)	(598,434)	(1,879,255)	(931,172)	(84,179)	(156,414)	251,677	(7,493,912)
Additional information:
Appreciation of investment real estate, net	-	-	146,787	-	-	725	(120,104)	27,408
Cost of sales	(383,434)	(17,077)	(21,009)	(257,682)	-	(23,982)	344,471	(358,712)
Depreciation and amortization	-	(10)	(997)	(53,324)	-	(71)	(676)	(55,079)
Financing expenses	(236,370)	(36,073)	(107,578)	(51,122)	(36,073)	(10,398)	345,012	(133,280)

Note 7 - Investments Accounted for Using the Equity Method

a. Summary Financial Information for a Material Associate Company - Morgal Investments LLC:

The amounts below are as they appear in the reports of the associate company:

	As of March 31	As of December 31
	2025	2024	2024
	NIS	NIS	NIS
	thousands	thousands	thousands
	(Unaudited)		(Audited)
Current assets	28,522	142,194	25,198
Non-current assets	293,946	261,090	237,306
Current liabilities	(26,546)	(28,836)	(26,626)
Non-current liability	(71,073)	(128,576)	(50,984)
Equity attributable to the Company's shareholders	(224,849)	(245,872)	(184,894)
Company's share of the equity, net	112,424	122,934	92,447
Loans and other adjustments	37,459	43,090	43,582
Book value of the investment in the associate company	149,883	166,024	136,029

	For the three month period ended on March 31	For the year ended on December 31 2024
	2025 2024
	NIS thousands	NIS thousands	NIS thousands
	(Unaudited)		(Audited)
Income	47	95,640	98,556
Gross profit	47	95,640	98,556
Operating profit (loss)	(2,564)	97,725	101,852
Profit (loss) after tax	(3,682)	75,914	33,048
Profit (loss) attributed to the Company's shareholders	(3,682)	75,914	33,048
Company's share of profit (loss)	(1,841)	37,957	16,524

Note 7 - Investments Accounted for Using the Equity Method (cont.):

b. Summary Financial Information for a Material Associate Company - Vertical City Ltd.:

The amounts below are as they appear in the reports of the associate company:

The financial statements of the associate company are attached to the Company's reports in accordance with Article 23(a).

	As of March 31	As of December 31
	2025	2024	2024
	NIS	NIS	NIS
	thousands	thousands	thousands
	(Unaudited)		(Audited)

Current assets	720,124	602,147	726,612

Non-current assets	1,024,579	751,236	1,021,636
			(800,674)
Current liabilities	(799,229)	(814,256)
Non-current liability	(573,775)	(463,548)	(565,528)

Equity attributable to the Company's shareholders	(371,699)	(75,579)	(382,046)

Company's share of the equity, net	207,780	55,928	213,564
Loans and other adjustments	263,903	335,990	260,911

Book value of the investment in the associate company	471,683	391,918	474,475

	For the three month period ended on March 31	For the year ended on December 31
	2025	2024	2024
	NIS thousands	NIS thousands	NIS thousands
	(Unaudited)	(Audited)
Income	-	-	-
Gross profit	-	-	-
Operating profit (loss)	(14,329)	(11,097)	187,083
Profit (loss) after tax	(10,347)	(8,262)	146,738
Profit (loss) attributed to the Company's shareholders	(10,347)	(8,262)	146,738
Company's share of profit (loss)	(5,784)	(6,114)	82,027

Note 7 - Investments Accounted for Using the Equity Method (cont.):

c. Condensed Financial Information Regarding a Material Equity-Accounted Investee – Israel Canada Rem Projects Ltd. (ICR):

The amounts below are as they appear in the reports of the associate company:

The financial statements of the associate company are attached to the Company's reports in accordance with Article 23(a).

	As of March 31		As of December 31
	2025 NIS	2024 NIS thousands	2024 NIS thousands

	thousands
	(Unaudited)		(Audited)
Current assets	3,352,981	3,112,175	3,217,275
Non-current assets	124,098	117,575	112,207
Current liabilities	(2,540,337)	(2,424,616)	(2,410,600)
Non-current liability	(379,227)	(530,763)	(375,464)
Equity attributable to the Company's shareholders	(557,515)	(274,371)	(543,418)
Company's share of the equity, net	236,944	137,185	230,952
Loans and other adjustments	105,831	160,967	102,562
Book value of the investment in the associate company	342,775	298,152	333,514

For the three month period ended on March 31		For the year ended on December 31
2025	2024	2024
NIS thousands	NIS thousands	NIS thousands
(Unaudited)		(Audited)
220,204	250,821	841,662
50,361	49,242	132,737
39,882	49,036	121,224
14,471	23,622	35,608
14,471	23,622	35,608
6,150	11,811	20,013

Note 8 - Approval of the Reports

The financial statements were approved for publication on May 27, 2025 by the Company's Board of Directors.

AI Terminal

Israel Canada (T.R) Ltd.

6861_rns_2025-06-09_f1b7c06d-4460-4606-b578-0e09e2074a67.pdf

Israel Canada (T.R) Ltd.

Board of Directors' Report for the Three-Month Period Ended on March 31, 2025

Board of Directors' Report on the Company's Affairs for the Period Ended on March 31, 2025

A. Summary of Financial Findings for the Reporting Period:

Apartments and offices sold during the period in the Group's projects:

Registration Forms

B. Board of Directors' Explanation of the Corporation's Business Condition

General Background Regarding the Company

Expected main management fees (in NIS thousands) the Company's share, assuming the sale of the entire inventory:

Summary of Data Estimate in Main Projects in Israel (NIS thousands):

ICR(1) - Summary of Data Estimate in Main Projects in Israel (NIS thousands):

Planning projects/land reserves

Urban Renewal

Projects over 67% signatures

Projects below 67% signatures

Forward-Looking Information

B.1. Financial condition

Working Capital

B.2. Results of Operations

B.3. Iron Swords War

Possible Impacts of Prolongation and Expansion of the War:

B.4. Liquidity

Cash from Operating Activities

Cash from Investing Activities

Cash from Financing Activities

B.5. Sources of Financing

Details regarding the Company's compliance with the financial covenants of its material loans3 , in addition to Bonds (Series F), Bonds (Series G), and Bonds (Series H), whose terms are detailed in Section D below, are presented hereunder:

B.6. Disclosure Pursuant to Article 10(b)(14) of the Periodic and Immediate Reports Regulations, 5730- 1970

Details regarding working capital and ongoing cash flow from current activities

Below are details about the working capital and the working capital for a period of 12 months in the consolidated reports of the Company as of March 31, 2025

B.7. Discussion of Risk Factors

Impact of the Interest Rate Increase:

Impact of Inflation Increase:

Housing Market5

B.8. Marketing Models

ICR:

C. Disclosure Requirements in Connection with the Corporation's Financial Reporting

C.1 Material Events After the Reporting Period

C.2 Use of Critical Estimates

D. Special disclosure to the Company's bondholders

D.1. Data regarding the Company's bonds as of March 31, 2025:

D.2. Fulfillment of Obligations

D.3. Rating

Appendix A

1. New Ramat Hasharon (Elco Complex)

a. Costs invested and that will be invested in the project (NIS thousands):

b. Below are details about the marketing of the areas in the project:

2. Residential rights in Sde Dov (Tel Aviv)

a. Costs invested and that will be invested in the project (NIS thousands):

b. Below are details about the marketing of the areas in the project:

3. Residential rights classified as inventory in Midtown Jerusalem

a. Costs invested and that will be invested in the project (NIS thousands):

* Reclassified

b. Below are details about the marketing of the areas in the project

4. Residential rights in the Canada in the City project (former Leumi Building), Tel Aviv

a. Costs invested and that will be invested in the project (NIS thousands):

b. Below are details about the marketing of the areas in the project

North Park Stage A Project (Neve Gan) - Project in progress

a. Costs invested and that will be invested in the project (NIS thousands):

b. Below are details about the marketing of the areas in the project:

Forward-looking information

Israel Canada (T.R) Ltd.

Condensed Consolidated Financial Statements As of March 31, 2025

Israel Canada (T.R) Ltd.

Condensed Consolidated Financial Statements As of March 31, 2025

(Unaudited)

Table of Contents

Review Report of the Auditors to the Shareholders of Israel Canada (T.R) Ltd.

Introduction:

Scope of the Review:

Conclusion:

Brightman Almagor Zohar & Co. Certified Public Accountants A Firm in the Deloitte Global Network

Tel Aviv, May 27, 2025

Tel Aviv – Main Office

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Financial Position

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Financial Position

Israel Canada (T.R) Ltd. Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Profit