Mivne Real Estate (K.D.) Ltd.

Investor Presentation • Aug 23, 2021

Capital Market Presentation June 30, 2021

Mivne One company – many advantages

• Spread of properties from Dan to Eilat
• A broad variety of properties for all purposes logistics, industry, offices, commercial and residential
• Potential increase in rental fees
• Average property capitalization rate of 7.2%.
• Hundreds of thousands of meters for planning and development in coming years.
• Large amount of land in planning stages in all segments throughout the country.
• Significant green energy activity on Company properties
• Residential development in high demand area on Company land
• Significant financial fortitude
  • Increase in NOI SP vs. 2019 as well
• Organic increase in value and free cash flow, independent of purchases

Where are we headed?

• Continued increase in equity
• Maintaining the Company's rating
• Improvement in free cash flow (FFO)
• Continued presentation of improvement in NOI
• Decrease in operating costs
• Decrease in financing costs
• Deepening the Company's activity in the field of rental housing and student dormitories
• Implementing the development of projects the planning of which was completed over the course of recent years, to the scope of 532,000 m²
• Development and marketing 1,800 housing units in high-demand areas
• An ongoing decrease in administrative and general expenses, mainly due to the reduction of activity abroad and reduction in company size

Mivne The Israeli Home for Real Estate

Overview

Financial and Business Strength in the Shadow of the Covid-19 Crisis

1.5 billion NIS balance of cash and frameworks as of this date.

218 million NIS FFO from cash-generating properties 1-6/2021 versus 196 million NIS in the corresponding period in 2019 (pre-Covid).

25.2 million NIS gross profits from the sale of apartments 1-6/2021.

2.5% increase in NOI SP versus the corresponding period in 2020 and 3.5% increase in NOI SP compared to the corresponding period in 2019 (pre-Covid).

Broad and varied segment distribution, 64% of the Company's spaces are logistic and industrial structures. Average rental fees per m² have the potential to increase while on the other hand are not burdensome to tenants.

3.3 billion NIS value of unpledged assets

Broad geographical distribution of tenants and buildings allowing nondependence on a specific region, segment and/or tenant.

Continued drop in effective interest rates in light of dept redemption in coming years and debt refinancing at interest rates expected to be lower, which should create a further increase in FFO. Note that the Company has no dependence on debt refinancing in coming years.

Data as of June 30 2021

81% public holdings

(after neutralizing Darban's share)

4.5

billion NIS Net financial debt

8.6 NIS attributed capital per share

6.5 billion NIS

Equity attributed to shareholders 41.1% Ratio of debt to CAP

The Company's share is included on leading indices, including:

The Tel Aviv 35 Index The Tel-Aviv Real Estate Index

10.96NIS

EPRA per share

Company's rating AA Short-term debt rating of A-1

777,000m²

Potential future development

2,606 tenants in Israel

11.5 billion NIS Value of investment property

533 million NIS Real estate under development

427 million NIS Inventory of land for residential development

91.5% Occupancy rate in Israel has been constantly increasing in recent years In the current period the occupancy rate has increased by 0.9%

cash-generating properties

547 from Metula to Eilat

1.6 million m² in Israel

Cash-generating properties

Data as of June 30 2021

1,803 housing units

In advanced stages of construction and planning in leading demand areas, plus hundreds of units in advanced planning stages.

234

solar energy systems For which agreements have been signed for installation on the rooftops of Company buildings compared to 208 as of December 31 2020. 47 systems have already been installed of which 12 have been installed in the current quarter. Expected yearly revenues from these systems amount to 27 million NIS.

300 million NIS

NOI in Israel in the 1-6/2021 period

38 million NIS NOI abroad in the 1-6/2021 Period

118

Apartments have been handed over in the reported period.

In March 2021 the Company announced a dividend policy for 2021. In the first half of 2021 a dividend was paid to the sum of 100 million NIS. A dividend to the sum of 50 million NIS were declared in August 2021.

Data as of June 30 2021

Growth

Development of FFO from Cash-Generating Properties – Forecast Revision 45

In Millions of NIS | In Spite of the Covid-19 Crisis

Investment Property

OFFICES

(378,000 M²)

Value of Cash-Generating Properties in Israel

31.12.16

Average Occupancy Rate in the Company's Properties in Israel

1,009,000 m² For the rental of logistical centers,

industry and storage

3.8 billion NIS Value as of June 30 2021

92.1% The occupancy rate as of June 30 2021 has been constantly improving over the past few years

130 Million NIS NOI 1-6/2021

5 million NIS increase in NOI SP 1-6/2021 compared to the corresponding period last year and 10 million NIS over the corresponding period in 2019.

The Company is advancing the development and construction of new logistical centers on existing Company land/structures.

Logistics and Industry

3.4 billion NIS Value as of June 30 2021

89.9%

occupancy rate as of June 30 2021

111 million NIS NOI 1-6/2021

1 million NIS increase in NOI SP 1-6/2021 compared to the corresponding period last year and 4 million NIS over the corresponding period in 2019.

The Company rents offices to the Israeli Government, and to a broad variety of tenants, including world-leading communications and high-tech companies.

378,000 m² For renting office buildings, 74.5% of which are located in high-demand areas in central Israel.

Shopping Centers 1.9 billion NIS

Value as of June 30 2021

92.1% occupancy rate as of June 30 2021

1.5 million NIS increase in NOI SP 1-6/2021 compared to the corresponding period last year and 4 million NIS decrease compared to the corresponding period in 2019, with a 3 million NIS increase after neutralizing the impact of Covid-19.

191,000m² of commercial rental space in Israel, in 17 shopping compounds, spread from north to south

Most of the Group's shopping compounds are open and neighborhood shopping centers providing a convenient and comprehensive shopping experience with a broad variety of shops. Most of the compounds are anchored by supermarkets and/or drugstores and some of them are integrated into office complexes

Housing Units for Rent

• In 2020 the Company decided to enter the field of rental housing, student dormitories and public housing.

• As part of this strategy, the Company has carried out a number of transactions, including the purchase of:

◆ The "Chen Hotel" housing collection in Jerusalem

• -
  • ◆ 290 housing units in central Israel
  • ◆ Student dorms in Kiryat Ono
  • ◆ Land for the construction of housing units and student dormitories in Rishon Lezion.

• The Company has decided to designate rental apartments in the Company's projects under construction.

Housing Units for Rent

National Deployment in High Demand Areas

RISHON LEZION 200 HOUSING UNITS 400 ROOMS IN STUDENT DORMITORIES(2)

The Company's share – 57% )1( The Company's share – 50% )2(

Real Estate Outside of Israel

Country	Number of Properties	Above Ground Area	Occupancy rate	Fair Value	NOI in practice in 1-6/2021	Average capitalization date
Switzerland	2	55,869	93.8%	360,848	12,691	7%
Ukraine	1	44,705	100%	248,992	14,146	11.2%
France	5	119,447	98.4%	13,139	2,953	**27%
Canada	2	59,017	66.3%	131,854	3,384	**4.7%
U.S.A.	2	18,489	68.4%	85,086	2,266	5.3%
Other*	3	39,174	97.4%	64,779	2,140	6.6%
Total foreign cash generating properties	15	336,701	91.4%	904,698	37,580
Land abroad	1			25,051
Total	16	336,701	91.4%	929,749	37,580

Total foreign cashgenerating properties

* After the report period, the sale of a property in the Netherlands was completed with a profit of 8 million NIS. **After neutralizing properties sold.

634 Housing Units Under Construction

25 million NIS Gross Profits from the Sale of Apartments 1-6/2021

1,803

housing units areas.

In advanced stages of planning and construction in leading high-demand

Over the past few years the Company has acted to plan added housing units on its land and planned mixed usage projects This trend has been creating a material advantage for the Company for increasing value.

Data as of June 30 2021

Residential

Development

Project/Location Planned

Project/Location	Planned Housing Units	Status	Cost in Company's books as of June 30 2021	Company's share
Hahaskala Blvd. structure – Tel Aviv	360	74 housing units sold + signups	343	75%
Aminadab Stage A – Tel Aviv	170	Approaching completion, 167 housing units sold	13	50%
Mivne Tower – Herzliya Pituach	103	Start of marketing Q4/2021 The permit is expected to be received in Q3/2021	55*	100%
Marom Hasharon, apartment building	62	Approaching completion, 61 housing units sold	1	90%
Marom Hasharon, cottages neighborhood	61	Approaching completion, 60 housing units sold	7	90%
Marom Hasharon, apartment buildings	213	Being marketed, 8 housing units for registration Excavation works begun	46	90%
Aminadab Stage 2 – Tel Aviv	310	City Engineer forum takes place, plan advancement approved.	5*	100%
Or Akiva	94	In Town Construction Plan filing stages.	9	100%
Hadera	240	In Town Construction Plan filing stages.	30	50%
Akerstein – Herzliya Pituach	190	In discussions with local committee. In design for Town Construction Plan stages.	-	53%
Total	1,803	370 housing units sold + signups	509

* Not including betterment surcharges

Cross-Section of Housing Units Inventory

Projects underway 634 housing units underway

underway in 2021

New projects 103 housing units

Land reserves for future projects 834 housing units

Development and Renewal

Initiation of offices, logistics and commerce

Construction of mixed use

buildings

Construction of modern and attractive logistical centers

Future betterment potential: "From inventory to cash-generating" utilization of construction rights on existing land and construction of additional cash-generating properties on land purchased

185 Million NIS Expected increase in NOI as a result of development in the next seven years

Focusing on employment construction in high-demand areas on Company land

Mivne Group June 30 2021 Capital Market 26

Expected Increase in NOI from Projects Under Development, Offices, Logistics and Commercial (In Millions of NIS)

44

Projects Under Development, Offices, Logistics and Commercial

Industry and Employment

Project name	Location	Usage	Built-Up Area (In m2)	Estimated Completion Date	Estimated Cost Balance (in Millions of NIS)	Expected NOI Range (in Millions of NIS)
Hahaskala Blvd. structure	Tel Aviv	Offices and commercial	68,300	Q3/2025	527	80-90
Mivne Compound Holon	Holon	Offices	14,800	Q4/2021	24	7-8.5
Sarona	Kfar Saba	Offices	26,000	2023	174	22-24
Life Sciences Park	Haifa	Offices	14,000	Q2/2024	133	10-12
Kiryat Gat structure	Kiryat Gat	Offices	4,200	2022	20	2-3
Herzliya Pituach structure	Herzliya Pituach	Offices	24,300	Q3/WW2024	262	27
Ha'elef Compound	Rishon Lezion	Offices and commercial	5,500	Starting Q2/2022 completion 2026	Pre-estimate	-
Hasivim structure	Petach Tikva	Offices	13,000	Pre-estimate	105	7-8
Hameitav	Tel Aviv	Employment and commerce	220,000	Pre-estimate	Pre-estimate	-
Life Sciences Park	Haifa	Offices	14,000	Pre-estimate	Pre-estimate	-
Crytek 2	Yokneam	Offices	25,000	Pre-estimate	Pre-estimate	-
Beersheba	Beersheba	Hotels	7,000	Start 2022, completion 2025	Pre-estimate	-
Akerstein Towers	Herzliya	Offices	50,000	Pre-estimate	Pre-estimate	-
Office tower	Giv'at Shaul	Offices	34,750	Pre-estimate	Pre-estimate	-

* The data represents the Company's share of the projects

Over the course of 2021 the Company increased its investment in the field of solar energy, filing requests to arrange 290 solar energy systems on the rooftops of buildings in its possession. To date, a plan has been arranged to install 234 systems, of which 47 systems have been activated. The yearly yield expected to be derived from the systems activated amounts

to a total of 8 million NIS per year (Company's share).

The expected yearly yield at the completion of the installation process of all of the solar energy systems is estimated at 24 million NIS (Company's share).

The Company has a significant advantage in activity in this area in light of the Company's extensive rooftop areas.

Solar Energy Systems – General

Expected Monetary Results from Regulated Solar Energy Systems

(In Millions of NIS)

Expected electricity receipts after commercial operation

Expected FFO from the systems after commercial operation

Financial data as of June 30 2021

In Millions of NIS

Financial Fortitude

Equity Attributed to Shareholders

In Millions of NIS

EPRA European Public Real Estate Association

EPRA NRV

Recovery value of Company assets (net) in the long-term assuming continued activity and failure to realize

assets

In Thousands of NIS	June 30 2021	December 31 2020
Equity attributable to shareholders	6,455,395	6,073,365
Plus tax reserve for real estate revaluation	1,769,860	1,739,183
EPRA NRV	8,225,255	7,812,548
Number of shares (thousands of shares)	750,693	739,769
EPRA NRV per share (in NIS)	10.957	10.561

When calculating the EPRA NRV index, the following was not taken into account:

-

• Value of solar installations – the total estimated yearly revenue at full operation is 24 million NIS (Company's share). Cost in the books – 50 million NIS.

• Development profits not yet recognized for residential development projects

• Increase in value of rental apartments purchase of which has not yet been completed.

Balance Sheet Data In Millions of NIS

	June 30 2021	Decem ber 31 2020
Cash and cash equivalents	215	432
Cash-generating investm ent property and property under developm ent	11,350	11,161
Investm ents in associates	281	294
Financial liabilities, including debentures	5,020	5,408
Deferred taxes, net	1,334	1,268
Total equity attributed to shareholders	6,455	6,073

Profit Data In Millions of NIS

436 431 anag em ent fee incom e 603 496 364 355 269 239 ent property ent 612 587 profit (106) (72) expenses, net 393 361		1-6/2021	1-6/2020
	Rental and m
	Total revenues
	Gross profit
	Revaluation of investm and real estate under developm
	Operating
	Financing
	Net profit

Disclaimer

This is an English translation of the Hebrew capital market presentation, that was published on August 15, 2021 (reference no.: 2021-01-131718) (hereafter: "the Hebrew Version").

This English version is only for convenience purposes. This is not an official translation and has no binding force. Whilst reasonable care and skill have been exercised in the preparation hereof, no translation can ever perfectly reflect the Hebrew Version. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.

This presentation was prepared by Mivne Real Estate (K.D.) Ltd. and does not constitute a proposal to buy or sell Company securities or a proposal to receive such offers and is intended to provide concise information only. The information presented may not serve as basis for making investment decisions, recommendations or opinions and does not replace the investor's judgement and appropriate advice.

That stated in this presentation in all matters connected to the analysis of Company activity is a summary only, and in order to receive a full picture of the Company's activity and of the risk factors the Company is dealing with, the Company's shelf prospectus, and its immediate, periodic and quarterly reports, must be studied using the MAGDA distribution site ("Company Reports") This presentation also includes data and information presented and edited in a manner different than the data included in the Company's reports or such that can be calculated from the data included in the Company's reports. The information presented in this presentation does not replace study of the Company's reports.

This presentation features forecasts, assessments, estimates and data referring to future events the realization of which is not certain and not under the Company's control. We emphasize that as of the publication of this presentation, a crisis is underway due to the Covid-19 pandemic, the scope of and future impact of which on the economy as a whole and on the Company in particular cannot be estimated, Company management is tracking future developments closely. The Company's forecasts and estimates included in this presentation including in connection with rental process and occupancy rates, a forecast regarding operational and financial data including short-term and longer-term FFO and NOI forecasts, development and construction of projects (including expected timetables, receipt of regulatory approvals, construction costs and future revenues), expected annual yearly yields from solar energy system, and the expected real interest rate for the financial debt, all of these constitute forward-looking information as defined in Section 32a of the Securities Law, 1968 and this information is based solely on the Company's subjective estimates made in good faith, based on past experience and professional knowledge accumulated by the Company, on the basis of facts and data pertaining to the current situation of the Company's business and that of its investees as well as on macroeconomic facts and data collected by the Company from other sources, all as known by the Company upon the preparation of this paper.

These estimates may not be realized, in whole or in part, or be realized in a manner materially different than projected, among other things, based on the realization of risk factors characterizing the Company's activity as well as developments in the economic and geopolitical environment (in the world in general and in Israel in particular). Therefore, the results of the Company's activity may be materially different from the general expectations in this presentation.