AFI Properties Ltd. — Capital/Financing Update 2026

May 27, 2026

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

AFI Properties Ltd.

Immediate Report: results of Institutional Tender for the Offering of commercial papers

Following the company's immediate report regarding the possibility of issuing a new series of commercial papers, the company hereby updates that on May 26, 2026, a tender for classified investors (as defined in Regulation 1 of the Securities Regulations (Manner of Offering Securities to the Public), 5767 - 2007, (hereinafter: the "Tender") was held towards a possible issuance of commercial papers of the company.

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

The commercial papers were offered to the classified investors by way of a tender on the annual margin rate above the bank of Israel interest that the commercial papers (Series 6) will bear, to the extent the issuance of the commercial papers is performed as stated.

Below are details regarding the results of the tender:

Within the framework of the tender, classified investors submitted requests for a prior commitment to purchase approximately NIS 576 million par value commercial papers (Series 6).

On May 25, 2026, the rating company S&P Global Ratings Maalot Ltd. (hereinafter: "Maalot") published a rating report according to which Maalot set a short-term rating of iLA-1 for commercial papers that the company will issue in an amount of up to NIS 300 million par value commercial papers of the company, by way of issuing a new series.

In light of the scope of demands in the tender, the company approached Maalot with a request to increase the scope of commercial papers set by it within the framework of the rating report dated May 25, 2026 (Reference: 2026-01-047728, "the Rating Report"), to NIS 450 million par value commercial papers (Series 6) (instead of NIS 300 million par value commercial papers (Series 6) as stated in the Rating Report).

Subject to the increase in the scope of commercial papers by Maalot as stated above, the company intends to accept prior commitments from classified investors as submitted in the tender to purchase NIS 450,000,000 par value commercial papers (Series 6), at the bank of Israel interest rate plus a margin that will not exceed $0.27\%$ per year, which will constitute the maximum margin rate of the commercial papers within the framework of the public tender that the company will conduct (to the extent it will conduct, "the Public Tender"), and which will be updated within the framework of the shelf offering report (to the extent it so decides).

The final margin rate of the commercial papers will be determined within the framework of the public tender, if performed, within the framework of a shelf offering report by way of a uniform offer.

The scope of the public offering and other conditions of the offer will be detailed within the framework of the shelf offering report (if and to the extent published).

Subject to obtaining the required approvals including the approval of the Tel Aviv Stock Exchange Ltd. for the listing for trade of the commercial papers to be offered, 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 performance of the issuance, its terms, scope, and timing, and that the above is subject to its absolute discretion.

AFI Properties Ltd.

Signed by: Avi Barzilay, CEO of the Company

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This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

Anat Dafna, CFO

5/27/2026 | 3:32:11 AM | v1.2.5