AFI Properties Ltd. — Capital/Financing Update 2026

May 27, 2026

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AFI Properties Ltd.

Immediate Report: Results of Institutional Tender for the Offering of BONDS

Further to the Company's immediate reports regarding the possibility of issuing a new series of BONDS, the Company hereby updates that on May 26, 2026, a tender was held for classified investors (as defined in Regulation 1 of the Securities Regulations (Manner of Offering Securities to the Public), 5767 - 2007, (hereinafter: the "Tender") ahead of a possible issuance of BONDS (Series 18') of the Company.

The Company intends to offer the BONDS (Series 18') by way of a uniform offering, in accordance with a shelf offering report that the Company may publish pursuant to a shelf prospectus of the Company dated February 9, 2026 ("the Shelf Prospectus").

The BONDS (Series 18') were offered to classified investors by way of a tender on the fixed annual interest rate that the BONDS (Series 18') will bear. The BONDS (Series 18') are not linked to any linkage basis.

Below are details regarding the results of the Tender:

Within the framework of the Tender, classified investors submitted requests for an early commitment to purchase approximately NIS 1.8 billion par value of BONDS (Series 18').

On May 10, 2026, the rating company S&P Global Ratings Maalot Ltd. (hereinafter: "Maalot") published a rating report according to which Maalot determined an A+ rating with a positive outlook for BONDS to be issued by the Company in a total of up to NIS 600 million par value of the Company's BONDS, by way of issuing a new series of BONDS.

In light of the volume of demand in the Tender, the Company approached Maalot with a request to increase the volume of the BONDS determined by it within the framework of the rating report dated May 10, 2026, to NIS 800 million par value of BONDS (Series 18') (instead of NIS 600 million par value of BONDS as mentioned above).

Subject to the increase in the volume of the BONDS by Maalot as mentioned above, the Company intends to receive early commitments from classified investors for the purchase of 800,000,000 NIS par value of BONDS (Series 18'), at a fixed annual interest rate not exceeding 4.48%, which will constitute the maximum interest rate that the BONDS (Series 18') will bear in the public offering.

It is clarified that the final interest rate that the BONDS (Series 18') will bear will be determined within the framework of the public tender to be held by the Company, and which will be updated within the framework of the shelf offering report.

The scope of the public offering and other terms of the offering will be specified within the framework of the shelf offering report (if and to the extent it is published).

Subject to receiving the required approvals, including the approval of the Tel Aviv Stock Exchange Ltd. for the listing for trading of the offered BONDS, the Company will publish a shelf offering report as required by law.

It is clarified that the Company does not undertake to perform any issuance, and that there is no certainty regarding the actual execution of the issuance, its terms, scope, and timing, and that the aforementioned is subject to its absolute discretion.

AFI Properties Ltd.

Signed by: Avi Barzilay, CEO of the Company

Anat Dafna, CFO

5/27/2026 13:26:37 AM v1.2.5