Electra Real Estate Ltd.

M&A Activity • Dec 7, 2025

2025-07-12

Date: 7/12/2025

To: Israel Securities Authority www.isa.gov.il To: Tel Aviv Stock Exchange www.tase.co.il

Dear Sir/Madam,

Re: Electra Real Estate Ltd. (hereinafter: the "Company") – Immediate Report

The Company hereby announces that on December 5, 2025, it signed a transaction with a third party for the sale of all rights in a residential complex located in Charleston, South Carolina, USA (hereinafter: the "Property"), which is held by the Third Fund for Investment in Residential Complexes in the USA and a limited American investor (LP), for a total consideration of approximately \$51.5 million.

The property, which is managed by the Company as a General Partner, was purchased in February 2020 for approximately \$33.9 million and includes 232 residential units.

The equity invested in the property amounted to approximately \$13.6 million. The free cash ow resulting from the sale transaction amounts to approximately \$25.9 million. In addition, during the holding period, the property distributed a total of approximately \$7.1 million in ongoing distributions, so that in total, the property will yield its investors a total cash ow of approximately \$33 million by the realization date, reecting an annual IRR of approximately 19.7% at the property level and an equity multiple of approximately 2.43.

The original equity invested by the Company (as a Limited Partner) in this transaction amounted to approximately \$0.5 million,

The free cash ow that will accrue to the Company from the sale, in addition to ongoing distributions received during the holding period (approximately \$0.3 million), amounts to approximately \$1.6 million, and in total the Company will receive from this transaction a cash ow of approximately \$1.9 million.

As a result of the above, the Company is not expected to record material prot or loss in the fourth quarter of 2025.

Completion of the transaction, subject to the fulllment of all the conditions precedent according to the sale agreement, is expected to take place in the fourth

quarter of 2025.

The information in this immediate report regarding the effect of the transaction on the Company's nancial results, the cash ow to be generated

for the Company, as well as the timing of the completion of the transaction, is forward-looking information that assumes the completion of the engagement with the third party as aforesaid and is also based on the Company's assumptions regarding the costs associated with the execution of the transaction and obligations due to

income taxes, nal price adjustments that may be in the transaction, and the timing of fulllment of the conditions precedent for the completion of the transaction. This information may not materialize, or may materialize differently than expected, among other things if

the Company's assumptions as stated above materialize differently than expected.

Electra Real Estate Ltd.

Names of signatories:

Gil Ruschink, Chairman of the Board

Amir Yaniv, CEO