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10-Q - Electra Real Estate Ltd. Q1 2023 financial report - translated version [The full Hebrew Q1 2023 report was published on May 29, 2023]

Company: Electra Real Estate Ltd. Date: 2023-06-19 Language: English Register to download
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#### **Interim Consolidated Financial Information**

#### **As of March 31, 2023**

#### **(Unaudited)**

This is an English translation of parts of the information included in the full Hebrew report of the company, that was published on May 29, 2023 (reference No. 2023-01-049468) at the ISA reporting website (magna.isa.gov.il) (hereafter: "the Hebrew Version"). The English version is Voluntary and only for convenience purposes. This is not an official translation and has no binding force. The translation in any case cannot perfectly reflect the Hebrew Version. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.

## **Contents**

| Review Interim Financial Information3                        |   |
|--------------------------------------------------------------|---|
| Financial Information as of March<br>31, 2023<br>(Unaudited) |   |
| Consolidated Information of Financial Position<br>           | 4 |
| Consolidated Information of Profit or Loss                   | 5 |
| Consolidated Information of Comprehensive Income<br>         | 6 |
| Consolidated Information of Changes in Equity                | 7 |
| Consolidated Information of Cash Flows10                     |   |
| Notes to the Consolidated Financial Statements12             |   |

![](_page_2_Picture_0.jpeg)

**Kost Forer Gabbay & Kasierer** 144 Menachem Begin Road, Building A, Tel-Aviv 6492102, Israel

Tel: +972-3-6232525 Fax: +972-3-5622555 ey.com

#### **To: Electra Real Estate Ltd.**

<span id="page-2-0"></span>Re: Interim Financial Information

Per your request, we have reviewed the accompanying interim consolidated financial information of Electra Real Estate Ltd. ("the Company") as of March 31, 2023 and for the period of three months then ended ("the Interim Financial Information"). The Interim Financial Information is the responsibility of the Company's Board of Directors and management. Our responsibility is to express a conclusion regarding the Interim Financial Information based on our review.

We did not review the interim financial information of certain subsidiaries, whose assets constitute approximately 3.5% of the total consolidated assets as of March 31, 2023 and whose revenues constitute approximately 0% of the total consolidated revenue for periods of the three months ended on March 31. 2023. The interim financial information for those companies were reviewed by other auditors, whose reports have been furnished to us, and our conclusion, insofar as it relates to amounts included for those companies, is based on the reports of the other auditors.

We conducted our review in accordance with Review Standard (Israel) 2410 of the Institute of Certified Public Accountants in Israel, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards in Israel and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review and the reports of the other auditors, we concluded an unqualified conclusion on the Company's consolidated interim financial statements in our report dated May 29, 2023.

The accompanying interim financial information, which are derived from the company's interim consolidated financial statements, are condensed interim financial information and do not include the disclosures required by International Financial Reporting Standards (IFRS). If the omitted disclosures were included in the accompanying interim financial information, it might influence the user's conclusions about the consolidated financial position, results of operations, changes in equity and cash flows of the company. Accordingly, the accompanying interim financial information are not designated for those who are not informed about such matters.

Based on our review and the reports of other auditors, nothing has come to our attention that causes us to believe that the accompanying Interim Financial Information is not present fairly, in all material respects, the information contained in it.

Tel-Aviv, Israel May 29, 2023

KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global

## <span id="page-3-0"></span>**CONSOLIDATED INFORMATION OF FINANCIAL POSITION**

|                                                                                              | March 31<br>2023 | March 31<br>2022 | December 31<br>2022 |
|----------------------------------------------------------------------------------------------|------------------|------------------|---------------------|
|                                                                                              | Unaudited        | Unaudited        | Audited             |
| Assets                                                                                       |                  |                  |                     |
| Current assets                                                                               |                  |                  |                     |
| Cash and cash equivalents                                                                    | 5,484            | 14,891           | 7,757               |
| Financial asset at fair value through profit or loss                                         | -                | 271              | -                   |
| Trade receivables                                                                            | -                | 18               | -                   |
| Current tax assets                                                                           | -                | 1,532            | -                   |
| Other receivables<br>and loans                                                               | 40,715           | 31,756           | 36,597              |
| Investments in companies accounted for at equity<br>that are<br>held for sale                | -                | 63,951           | -                   |
| Total current assets                                                                         | 46,199           | 112,419          | 44,354              |
| Non-current assets                                                                           |                  |                  |                     |
| Investments<br>in residential property held for rental and others<br>accounted for at equity | 757,245          | 473,866          | 719,418             |
| Investments in realization strategy assets<br>accounted<br>for at equity                     | -                | 85               | -                   |
| Long-term loans and other receivables                                                        | 19,980           | 5,592            | 18,264              |
| Fixed assets                                                                                 | 330              | 470              | 356                 |
| Usage right assets                                                                           | 1,194            | 1,434            | 1,282               |
| Total non-current assets                                                                     | 778,749          | 481,447          | 739,320             |
| Total assets                                                                                 | 824,948          | 593,866          | 783,674             |

## **CONSOLIDATED INFORMATION OF FINANCIAL POSITION**

### **US DOLLARS (in thousands)**

|                                                                        | March 31<br>2023 | March 31<br>2022 | December 31<br>2022 |
|------------------------------------------------------------------------|------------------|------------------|---------------------|
|                                                                        | Unaudited        | Unaudited        | Audited             |
| Liabilities and Equity                                                 |                  |                  |                     |
| Current Liabilities                                                    |                  |                  |                     |
| Short-term credit (including current maturities of loans<br>and bonds) | 61,049           | 39,339           | 46,188              |
| Current tax liabilities                                                | 5,789            | 775              | 5,330               |
| Suppliers and providers of services                                    | 187              | 158              | 67                  |
| Other payables                                                         | 9,673            | 9,587            | 11,328              |
| Current maturities of leasing liabilities                              | 360              | 329              | 370                 |
| Total current liabilities                                              | 77,058           | 50,188           | 63,283              |
| Non-current Liabilities                                                |                  |                  |                     |
| Bonds                                                                  | 106,086          | 49,800           | 66,861              |
| Leasing liabilities                                                    | 758              | 1,067            | 878                 |
| Other long-term liabilities                                            | 21,032           | 11,906           | 20,120              |
| Long-term loans from banks                                             | 140,193          | 98,577           | 149,244             |
| Deferred taxes                                                         | 80,976           | 66,396           | 79,787              |
| Total non-current liabilities                                          | 349,045          | 227,746          | 316,890             |
| Equity                                                                 |                  |                  |                     |
| Share capital                                                          | 58               | 58               | 58                  |
| Share premium                                                          | 185,270          | 185,270          | 185,270             |
| Capital reserves                                                       | (118,507)        | (114,473)        | (119,023)           |
| Retained earnings                                                      | 326,965          | 242,554          | 332,509             |
| Equity attributed to the shareholders                                  | 393,786          | 313,409          | 398,814             |
| Non-controlling interests                                              | 5,059            | 2,523            | 4,687               |
| Total equity                                                           | 398,845          | 315,932          | 403,501             |
| Total liabilities and equity                                           | 824,948          | 593,866          | 783,674             |

May 29, 2023

Date of approval of the financial statements

E. Vessely Chief Financial Officer

Chief Financial Officer signture

> A. Yaniv Chief Executive Officer

Joint General Manager signture

> G. Rushinek Chairman of the Board of Directors

Chairman of the Board of Directors signture

## <span id="page-5-0"></span>**CONSOLIDATED INFORMATION OF PROFIT OR LOSS**

|                                                                                                                                        | Three<br>months<br>ended<br>March 31<br>2023 | Three<br>months<br>ended<br>March 31<br>2022 | Year ended<br>December 31<br>2022 |
|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|----------------------------------------------|-----------------------------------|
| Section                                                                                                                                | Unaudited                                    | Unaudited                                    | Audited                           |
| Revenues and profits<br>From the operations of investment<br>funds and partnerships                                                    |                                              |                                              |                                   |
| and purchase commissions<br>Revenues from management fees                                                                              | 3,886                                        | 4,652                                        | 14,970                            |
| Revenues from success fees (Promote)<br>The Company's share of operation results under the<br>equity<br>method                         | 3,927<br>(4,784)                             | 81,977<br>1,304                              | 208,662<br>5,126                  |
| The Company's share of fair value adjustments under the<br>equity                                                                      |                                              |                                              |                                   |
| method<br>and others                                                                                                                   | 4,694                                        | 24,846                                       | 42,596                            |
| From realization strategy assets                                                                                                       |                                              |                                              |                                   |
| Revenues from rental fees and other<br>The Company's share of the results of realization strategy assets                               | 699                                          | 1,244                                        | 1,169                             |
| under the equity method                                                                                                                | -                                            | 35                                           | 61                                |
|                                                                                                                                        | 8,423                                        | 114,058                                      | 272,584                           |
| Costs and expenses<br>Cost of revenues from realization strategy assets<br>Cost of revenues from the operation of investment funds and | -                                            | 30                                           | 131                               |
| partnerships                                                                                                                           | 448                                          | 3,239                                        | 12,111                            |
| Administrative and general expenses                                                                                                    | 867                                          | 3,157                                        | 8,275                             |
|                                                                                                                                        | 1,315                                        | 6,426                                        | 20,517                            |
| Operating income                                                                                                                       | 7,108                                        | 107,632                                      | 252,067                           |
| Financing expenses<br>Financing income                                                                                                 | (4,938)<br>5,271                             | (811)<br>3,197                               | (14,112)<br>12,850                |
| Financing (expenses) income, net                                                                                                       | 333                                          | 2,386                                        | (1,262)                           |
| Income before taxes on income                                                                                                          | 7,441                                        | 110,018                                      | 250,805                           |
| Taxes on income                                                                                                                        | (1,686)                                      | (30,812)                                     | (69,325)                          |
| Net income for the period                                                                                                              | 5,755                                        | 79,206                                       | 181,481                           |
| Attributable to:                                                                                                                       |                                              |                                              |                                   |
| Shareholders of the parent company                                                                                                     | 5,673                                        | 79,058                                       | 180,627                           |
| Non-controlling interests                                                                                                              | 82                                           | 148                                          | 854                               |
| Net income for the period                                                                                                              | 5,755                                        | 79,206                                       | 181,481                           |
| Net earnings per share attributable to the shareholders in the<br>parent company                                                       |                                              |                                              |                                   |
| Basic –<br>in US\$                                                                                                                     | 0.10                                         | 1.39                                         | 3.18                              |
| Fully diluted –<br>in US\$                                                                                                             | 0.10                                         | 1.38                                         | 3.15                              |
| Weighted average number of shares used in the calculation of<br>the net earnings per share:                                            |                                              |                                              |                                   |
| Basic –<br>in thousands                                                                                                                | 56,363                                       | 56,905                                       | 56,761                            |
| Fully diluted –<br>in thousands                                                                                                        | 56,823                                       | 57,397                                       | 57,265                            |

#### <span id="page-6-0"></span>**CONSOLIDATED INFORMATION OF COMPREHENSIVE INCOME US DOLLARS (in thousands)**

|                                                                                                                        | Three<br>Three<br>months<br>months<br>ended<br>ended<br>March 31<br>March 31<br>2023<br>2022 |           | Year ended<br>December 31<br>2022 |  |
|------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|-----------|-----------------------------------|--|
| Section                                                                                                                | Unaudited                                                                                    | Unaudited | Audited                           |  |
| Net income for the Period                                                                                              | 5,755                                                                                        | 79,206    | 181,481                           |  |
| Other comprehensive<br>income<br>(net of tax effect)                                                                   |                                                                                              |           |                                   |  |
| Amounts that will never be classified to profit or loss:                                                               |                                                                                              |           |                                   |  |
| Adjustments deriving from the translation of statements from the<br>functional currency into the presentation currency | -                                                                                            | 771       | 771                               |  |
| Amounts that will be classified or reclassified to the profit or<br>loss in the future:                                |                                                                                              |           |                                   |  |
| Exchange differences on the translation of foreign operations                                                          | 507                                                                                          | (1,662)   | 539                               |  |
| Total other comprehensive income (loss) for the period                                                                 | 507                                                                                          | (891)     | 1,310                             |  |
| Total comprehensive<br>income for the period                                                                           | 6,262                                                                                        | 78,315    | 182,791                           |  |
| Comprehensive income for the period attributable to:                                                                   |                                                                                              |           |                                   |  |
| Shareholders in the parent company                                                                                     | 6,180                                                                                        | 78,319    | 182,195                           |  |
| Non-controlling interests                                                                                              | 82                                                                                           | (4)       | 596                               |  |
|                                                                                                                        | 6,262                                                                                        | 78,315    | 182,791                           |  |

#### **CONSOLIDATED INFORMATION OF CHANGES IN EQUITY**

<span id="page-7-0"></span>

|                                                                                                                                         | Share<br>Capital | Share<br>Premium | Capital<br>reserve on<br>financial assets<br>through other<br>comprehensive<br>income | Capital<br>reserve on<br>share<br>based<br>payment | Adjustments<br>deriving from<br>the<br>translation of<br>financial<br>Statements | Treasury<br>Shares | Retained<br>Earnings | Total<br>Attributable<br>to equity<br>holders in<br>the<br>company | Non<br>controlling<br>interests | Total<br>equity |
|-----------------------------------------------------------------------------------------------------------------------------------------|------------------|------------------|---------------------------------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------------------------------------|--------------------|----------------------|--------------------------------------------------------------------|---------------------------------|-----------------|
| Section                                                                                                                                 | Unaudited        | Unaudited        | Unaudited                                                                             | Unaudited                                          | Unaudited                                                                        | Unaudited          | Unaudited            | Unaudited                                                          | Unaudited                       | Unaudited       |
| Balance as of January 1, 2023                                                                                                           | 58               | 185,270          | (57,759)                                                                              | 474                                                | (52,258)                                                                         | (9,479)            | 332,509              | 398,814                                                            | 4,687                           | 403,501         |
| Net income for the period                                                                                                               | -                | -                | -                                                                                     | -                                                  | -                                                                                | -                  | 5,673                | 5,673                                                              | 82                              | 5,755           |
| Exchange differences on the translation of<br>foreign operations                                                                        | -                | -                | -                                                                                     | -                                                  | 507                                                                              | -                  | -                    | 507                                                                | -                               | 507             |
| Total comprehensive income<br>for the<br>period                                                                                         | -                | -                | -                                                                                     | -                                                  | 507                                                                              | -                  | 5,673                | 6,180                                                              | 82                              | 6,262           |
| Cost of share-based payment                                                                                                             | -                | -                | -                                                                                     | 9                                                  | -                                                                                | -                  | -                    | 9                                                                  | -                               | 9               |
| Non-controlling interests' share in the<br>capital of a subsidiary company in the<br>operations of investment funds and<br>partnerships | -                | -                | -                                                                                     | -                                                  | -                                                                                | -                  | -                    | -                                                                  | 317                             | 317             |
| Dividend paid by a consolidated company<br>to non-controlling interests                                                                 | -                | -                | -                                                                                     | -                                                  | -                                                                                | -                  | -                    | -                                                                  | (27)                            | (27)            |
| Dividend to shareholders in the company                                                                                                 | -                | -                | -                                                                                     | -                                                  | -                                                                                | -                  | (11,217)             | (11,217)                                                           | -                               | (11,217)        |
| Total equity as of March 31, 2023                                                                                                       | 58               | 185,270          | (57,759)                                                                              | 483                                                | (51,751)                                                                         | (9,479)            | 326,965              | 393,786                                                            | 5,059                           | 398,845         |

#### **CONSOLIDATED INFORMATION OF CHANGES IN EQUITY**

|                                                                                                                                         | Share<br>Capital | Share<br>Premium | Capital<br>reserve on<br>financial assets<br>through other<br>comprehensive<br>income | Capital<br>reserve on<br>share<br>based<br>payment | Adjustments<br>deriving from<br>the<br>translation of<br>financial<br>Statements | Treasury<br>Shares | Retained<br>Earnings | Total<br>Attributable<br>to equity<br>holders in<br>the<br>company | Non<br>controlling<br>interests | Total<br>equity |
|-----------------------------------------------------------------------------------------------------------------------------------------|------------------|------------------|---------------------------------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------------------------------------|--------------------|----------------------|--------------------------------------------------------------------|---------------------------------|-----------------|
| Section                                                                                                                                 | Unaudited        | Unaudited        | Unaudited                                                                             | Unaudited                                          | Unaudited                                                                        | Unaudited          | Unaudited            | Unaudited                                                          | Unaudited                       | Unaudited       |
| Balance as of January 1, 2022                                                                                                           | 58               | 185,270          | (57,759)                                                                              | 392                                                | (53,826)                                                                         | (2,563)            | 175,665              | 247,237                                                            | 3,813                           | 251,050         |
| Net income for the period                                                                                                               | -                | -                | -                                                                                     | -                                                  | -                                                                                | -                  | 79,058               | 79,058                                                             | 148                             | 79,206          |
| Exchange differences on the translation of<br>foreign operations                                                                        | -                | -                | -                                                                                     | -                                                  | (739)                                                                            | -                  | -                    | (739)                                                              | (152)                           | (891)           |
| Total comprehensive income for the<br>period                                                                                            | -                | -                | -                                                                                     | -                                                  | (739)                                                                            | -                  | 79,058               | 78,319                                                             | (4)                             | 78,315          |
| Cost of share-based payment                                                                                                             | -                | -                | -                                                                                     | 22                                                 | -                                                                                | -                  | -                    | 22                                                                 | -                               | 22              |
| Non-controlling interests' share in the<br>capital of a subsidiary company in the<br>operations of investment funds and<br>partnerships | -                | -                | -                                                                                     | -                                                  | -                                                                                | -                  | -                    | -                                                                  | 717                             | 717             |
| Dividend paid by a consolidated company<br>to non-controlling interests                                                                 | -                | -                | -                                                                                     | -                                                  | -                                                                                | -                  | -                    | -                                                                  | (2,003)                         | (2,003)         |
| Dividend to shareholders in the company                                                                                                 | -                | -                | -                                                                                     | -                                                  | -                                                                                | -                  | (12,169)             | (12,169)                                                           | -                               | (12,169)        |
| Total equity as of March 31, 2022                                                                                                       | 58               | 185,270          | (57,759)                                                                              | 414                                                | (54,565)                                                                         | (2,563)            | 242,554              | 313,409                                                            | 2,523                           | 315,932         |

#### **CONSOLIDATED INFORMATION OF CHANGES IN EQUITY**

|                                                                                                                                         | Share              | Share              | Capital<br>reserve on<br>financial assets<br>through other<br>comprehensive | Capital<br>reserve on<br>share<br>based | Adjustments<br>deriving from<br>the<br>translation of<br>financial | Treasury          | Retained            | Total<br>Attributable<br>to equity<br>holders in<br>the<br>company | Non<br>controlling   | Total             |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------|-----------------------------------------------------------------------------|-----------------------------------------|--------------------------------------------------------------------|-------------------|---------------------|--------------------------------------------------------------------|----------------------|-------------------|
| Section                                                                                                                                 | Capital<br>Audited | Premium<br>Audited | income<br>Audited                                                           | payment<br>Audited                      | Statements<br>Audited                                              | Shares<br>Audited | Earnings<br>Audited | Audited                                                            | interests<br>Audited | equity<br>Audited |
| Balance as of January 1, 2022                                                                                                           | 58                 | 185,270            | (57,759)                                                                    | 392                                     | (53,826)                                                           | (2,563)           | 175,665             | 247,237                                                            | 3,813                | 251,050           |
| Net income for the year                                                                                                                 | -                  | -                  | -                                                                           | -                                       | -                                                                  | -                 | 180,627             | 180,627                                                            | 854                  | 181,481           |
| Exchange differences on the translation of<br>foreign operations                                                                        | -                  | -                  | -                                                                           | -                                       | 1,568                                                              | -                 | -                   | 1,568                                                              | (258)                | 1,310             |
| Total comprehensive income for the year                                                                                                 | -                  | -                  | -                                                                           | -                                       | 1,568                                                              | -                 | 180,627             | 182,195                                                            | 596                  | 182,791           |
| Cost of share-based payment                                                                                                             | -                  | -                  | -                                                                           | 82                                      | -                                                                  | -                 | -                   | 82                                                                 | -                    | 82                |
| Non-controlling interests' share in the<br>capital of a subsidiary company in the<br>operations of investment funds and<br>partnerships | -                  | -                  | -                                                                           | -                                       | -                                                                  | -                 | -                   | -                                                                  | 2,586                | 2,586             |
| Acquisition of treasury shares in the<br>company                                                                                        | -                  | -                  | -                                                                           | -                                       | -                                                                  | (6,916)           | -                   | (6,916)                                                            | -                    | (6,916)           |
| Dividend paid by a consolidated company<br>to non-controlling interests                                                                 | -                  | -                  | -                                                                           | -                                       | -                                                                  | -                 | -                   | -                                                                  | (2,308)              | (2,308)           |
| Dividend to shareholders in the company                                                                                                 | -                  | -                  | -                                                                           | -                                       | -                                                                  | -                 | (23,783)            | (23,783)                                                           | -                    | (23,783)          |
| Total equity as of December 31, 2022                                                                                                    | 58                 | 185,270            | (57,759)                                                                    | 474                                     | (52,258)                                                           | (9,479)           | 332,509             | 398,814                                                            | 4,687                | 403,501           |

## <span id="page-10-0"></span>**CONSOLIDATED INFORMATION OF CASH FLOWS**

|                                                                                                                             | Three<br>months<br>ended<br>March 31<br>2023 | Three<br>months<br>ended<br>March 31<br>2022 | Year ended<br>December 31<br>2022 |
|-----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|----------------------------------------------|-----------------------------------|
| Section                                                                                                                     | Unaudited                                    | Unaudited                                    | Audited                           |
| Cash flows from operating activities:                                                                                       |                                              |                                              |                                   |
| Net income for the period                                                                                                   | 5,755                                        | 79,206                                       | 181,481                           |
| Adjustments required in order to present the cash flows from operating<br>activities (Appendix A)                           | (7,347)                                      | (61,255)                                     | (94,799)                          |
| Net cash generated by operating activities                                                                                  | (1,592)                                      | 17,951                                       | 86,682                            |
| Cash flows from investment activities:                                                                                      |                                              |                                              |                                   |
| Marketable securities, net                                                                                                  | -                                            | (111)                                        | 89                                |
| Consideration from the disposal of entities accounted for at equity                                                         | 404                                          | 18,426                                       | 116,680                           |
| Change in short-term and long-term deposits, net                                                                            | -                                            | -                                            | (12,341)                          |
| Changes in investments, loans to investments funds and partnerships,<br>loans to investee companies and partners, net       | (39,890)                                     | (18,963)                                     | (229,115)                         |
| Income tax received (paid) on the disposal of income-generating assets,                                                     |                                              |                                              |                                   |
| net                                                                                                                         | -                                            | -                                            | (4,421)                           |
| Investment in and enhancement of income-generating assets                                                                   | -                                            | (99)                                         | (83)                              |
| Consideration from the disposal of (investment in) fixed assets and<br>usage right assets, net                              | -                                            | (28)                                         | (41)                              |
| Net cash absorbed by investment activities                                                                                  | (39,486)                                     | (774)                                        | (129,232)                         |
| Cash flows from financing activities:                                                                                       |                                              |                                              |                                   |
| Issue of bonds (net of issue expenses)                                                                                      | 50,937                                       | -                                            | 44,832                            |
| Dividend paid to shareholders in the company                                                                                | (11,217)                                     | (12,169)                                     | (23,783)                          |
| Non-controlling interests' share of a subsidiary company holding<br>residential property for rent in the United States, net | 317                                          | 717                                          | 2,586                             |
| Payment of dividend in a consolidated company to non-controlling<br>interests                                               | (27)                                         | (2,003)                                      | (2,308)                           |
| Receipt of long-term loans                                                                                                  | 7,107                                        | 40,899                                       | 107,138                           |
| Repayment of long-term loans                                                                                                | (16,572)                                     | (27,412)                                     | (58,698)                          |
| Leasing liabilities                                                                                                         | (91)                                         | (2)                                          | (77)                              |
| Purchase of treasury shares in the company                                                                                  | -                                            | -                                            | (6,916)                           |
| Repayment of bonds                                                                                                          | -                                            | -                                            | (16,016)                          |
| Receipt of short-term loans                                                                                                 | 8,350                                        | -                                            | 86,538                            |
| Repayment of short-term loans                                                                                               | -                                            | (18,940)                                     | (98,764)                          |
| Net cash generated (absorbed) by financing activities                                                                       | 38,804                                       | (18,910)                                     | 34,532                            |
| Increase (decrease) in cash and cash equivalents                                                                            | (2,274)                                      | (1,732)                                      | (8,018)                           |
| Balance of cash and cash equivalents at the beginning of the period                                                         | 7,757                                        | 16,992                                       | 16,992                            |
| Translation differences in respect of cash balances in foreign<br>currency                                                  | 1                                            | (369)                                        | (1,217)                           |
|                                                                                                                             | 5,484                                        | 14,891                                       | 7,757                             |
| Balance of cash and cash equivalents at the end of the period                                                               |                                              |                                              |                                   |

#### **CONSOLIDATED INFORMATION OF CASH FLOWS**

|                                                                                                      | Three<br>months<br>ended<br>March 31<br>2023 | Three<br>months<br>ended<br>March 31<br>2022 | Year ended<br>December 31<br>2022 |
|------------------------------------------------------------------------------------------------------|----------------------------------------------|----------------------------------------------|-----------------------------------|
| Section                                                                                              | Unaudited                                    | Unaudited                                    | Audited                           |
| Appendix A' – Adjustments to present the cash flows from<br>operating activities                     |                                              |                                              |                                   |
| Expenses (income) not involving cash flows:                                                          |                                              |                                              |                                   |
| The Company's share of the results of affiliated companies, net                                      | 90                                           | (26,185)                                     | (47,783)                          |
| Success fee in respect of increase in the value of residential property<br>held for rental (promote) | (3,927)                                      | (81,977)                                     | (208,662)                         |
| Dividends, success fees and interest received from companies<br>accounted for at equity and others   | 2,245                                        | 13,370                                       | 90,557                            |
| Depreciation and amortization                                                                        | 114                                          | 114                                          | 350                               |
| Change in the value of financial assets                                                              | -                                            | (158)                                        | (113)                             |
| Cost of share-based payment                                                                          | 9                                            | 22                                           | 82                                |
| Change in deferred taxes, net                                                                        | 1,188                                        | 30,769                                       | 51,378                            |
| Changes in asset and liability items:                                                                |                                              |                                              |                                   |
| Change in trade receivables                                                                          | -                                            | (3)                                          | 47                                |
| Change in other receivables                                                                          | (2,076)                                      | (2,024)                                      | (3,172)                           |
| Change in suppliers and providers of services                                                        | 120                                          | (353)                                        | (417)                             |
| Change in other payables                                                                             | (285)                                        | 5,298                                        | 12,522                            |
| Revaluation of long-term payables and receivables, net                                               | (4,825)                                      | (126)                                        | 10,412                            |
|                                                                                                      | (7,347)                                      | (61,255)                                     | (94,799)                          |

|                                     | Three<br>months<br>ended<br>March 31<br>2023 | Three<br>months<br>ended<br>March 31<br>2022 | Year ended<br>December 31<br>2022 |
|-------------------------------------|----------------------------------------------|----------------------------------------------|-----------------------------------|
| Section                             | Unaudited                                    | Unaudited                                    | Audited                           |
| Appendix B' –<br>Additional details |                                              |                                              |                                   |
| Cash paid in the year for:          |                                              |                                              |                                   |
| Interest                            | 3,982                                        | 1,765                                        | 11,989                            |
| Current taxes paid on income        | -                                            | -                                            | 9,993                             |
| Cash received in the period for:    |                                              |                                              |                                   |
| Interest                            | 8,136                                        | 710                                          | 7,842                             |
|                                     |                                              |                                              |                                   |

### <span id="page-12-0"></span>**Notes to the Consolidated Financial Information US Dollars (in thousands)**

#### **Note 1 - General**

The accompanying Financial Information, is derived from the Hebrew version of the Company's interim consolidated financial statement as at March 31, 2023 and for the period of three months ended on that date and do not include the disclosures required by International Financial Reporting Standards (IFRS) (hereinafter - The Interim Consolidate Financial Information).

The interim consolidated financial Information should be read together with the Company's Hebrew version of the annual consolidated financial statement as at December 31, 2022 and for the year ended on that date and the accompanying notes thereto (hereinafter – The Annual Consolidated Financial Statement).

The interim consolidated financial Information is a translation which is based on The Interim Consolidated Financial Statements, which have been prepared in accordance with International Financial Reporting Standard IAS 34 "Financial Reporting for Interim Periods", and also in accordance with the disclosure requirements in accordance with section D of the Securities Regulations (Periodic and Immediate Reports) - 1970.

The financial Information are presented in USD since the Company believes that financial Information in USD provide more relevant information to the investors and users of the financial Information.

#### **Note 2 - General description of the Company and its activities**

Electra Real Estate Ltd. (hereinafter: "The Company") is a public company whose securities are listed for trading on the Tel-Aviv Stock Exchange. The Company focusses on the management of investment funds and partnerships for limited partners, where the Company is a partner in the entity that serves as the managing partner of the investment funds and partnerships (General Partner). As of the time of the publication of the financial information, the Company manages three investment funds, which invest in multi-family housing complexes in the United States, two debt fund for the provision of loans for the financing of housing complexes in the United States, 23 special purpose partnerships for investment in single family residences on plots of land for rental (Single Family Rental) including, inter alia build to rent activities (BTR), (The single family homes activity and the BTR activities will be called hereinafter: "SFR"). In addition, the Company manages an American REIT partnership which invests in opportunities in hotels in the United States and holds two office buildings in Great Britain, within the framework of a fund that is being established for investment in offices in Great Britain and two reserves of land that are designated primarily for the development of residential complexes for rental in Southern Miami.

א - 420 / אלקטרה נדלן אנגלית מונגש 31.3.2023