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תוכן עניינים

פרק א'

דו"ח הדירקטוריון על מצב ענייני התאגיד

פרק ב'

דו"חות כספיים

פרק ג'

דו"ח בדבר אפקטיביות הבקרה הפנימית על הדיווח הכספי ועל הגילוי

דוח רבעוני 2026 לשנת 31.3.26

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Aura Investments Ltd.

Board of Directors Report on the State of the Corporation's Affairs

For the three-month period ended March 31, 2026

The Board of Directors of Aura Investments Ltd. is pleased to submit to the shareholders the Board of Directors Report of the Company and its consolidated companies (hereinafter together: the "Company" or the "Group" or "Aura Group") for the three-month period ended March 31, 2026 (hereinafter: the "Reporting Period" and the "Balance Sheet Date", respectively).

1. General

The Company is a public company whose shares and securities issued to the public are traded on the Tel Aviv Stock Exchange Ltd. (hereinafter: the "Stock Exchange").

The Company is the leader of the residential construction market in Israel. The Company builds entire neighborhoods from the north to the south, and operates in about 60 municipalities and local authorities in Israel.

The Company and its subsidiaries are engaged in locating, initiating, planning, establishing, and marketing projects in the field of residential real estate, mainly entire residential neighborhoods within the framework of urban renewal nationwide, as well as the establishment and operation of commercial, employment, and rental housing centers.

For several years now, the Company has not needed to purchase land in cash. Every year, the Company is able to open a number of significant projects for the establishment of new residential neighborhoods in urban renewal. Urban renewal projects require lower equity commitment than in projects where land is purchased in cash, consume less financing, and allow apartment buyers flexibility in the distribution of payments in the Company's various projects.

The Company, through its subsidiary Megiddo Y.K. Ltd. (hereinafter: "Megiddo"), occasionally purchases mainly cheap land in the periphery as well as land in ILA tenders under the Ministry of Housing's "Target Price" (Mechir Matara) program, given that Megiddo is a construction company. Megiddo builds all the projects it owns through self-construction and has started building projects for Aura as stated below.

The Company enjoys great trust among residents in projects intended for the urban renewal process, and succeeds in consistently increasing its project backlog; in fact, the Company's backlog of work for the next decade is already guaranteed today.

The Company sees itself as a Zionist company that builds in Israel only, and does not build abroad by choice. The Company frequently promotes sales campaigns intended primarily for security forces.

The Company distributed a dividend in the amount of NIS 50 million in respect of 2025 profits.

In total, in the first quarter of 2026, Aura Group sold 163 housing units, compared to sales of 210 housing units in the corresponding quarter last year, a decrease of about 22% compared to the corresponding period last year.

After the balance sheet date, and up until the date of publication of the report, Aura Group sold an additional 98 housing units, for a total of 261 housing units sold in 2026.

In the first quarter of 2026, and also slightly thereafter, apartment sales were affected by the war with Iran that began at the end of February 2026 and ended during April 2026; in fact, for about a month and a half, all sales offices in the country were closed.

Aura's sales figures since the beginning of the year, despite the state of war that existed, indicate the Company's resilience and reasonable apartment sales even in a challenging period.

1.1 Areas of Activity

As of the date of approval of the report, Aura Group initiates, plans, and builds in Israel, including together with others, 175 projects comprising approximately 82,626 residential housing units (the Company's effective share is approximately 64,861 housing units). Of the total projects, 148 projects are in the field of urban renewal, under which the Company will build approximately 77,524 housing units (the Company's effective share is approximately 60,030 housing units).

Furthermore, the Company operates through two main subsidiaries:

Aura Commercial Centers Ltd. (hereinafter: "Aura Commercial"): Complementary activity to the Company's traditional activity. Establishment of commercial centers in the new neighborhoods the Company develops. The neighborhood centers built by the Company will remain under the Company's ownership; the Company will manage and lease the properties, which will serve it as a long-term yield-generating asset.

Megiddo: Completes the Company's area of activity in entrepreneurship and construction in the periphery, and additionally begins to execute some of the Company's projects. The construction activity for the Company is particularly important at this time when there is a shortage of contractors and workers in Israel, such that construction within the Aura Group allows flexibility and optimal negotiation management even with other contractors. Furthermore, the profitability from construction work remains within the Aura Group.

1.2.

Equity

As of March 31, 2026, the Company's equity amounts to approximately NIS 1.93 billion.

Furthermore, additional economic equity in the scope of hundreds of millions of NIS is hidden within the holdings in Megiddo and Aura Commercial, which is not reflected in the financial statements due to the accounting recording method.

The increase in equity strengthens the Company's financial stability and supports its continued business growth and the development of the Aura Group's business.

The Company has additional equity for project promotion in a total amount of approximately NIS 1.4 billion, regarding transactions with the insurance companies Phoenix and Clal for investment in the Company's projects. To date, approximately NIS 205 million has been invested, and the remaining equity standing in favor of the Company in connection with these agreements amounts to approximately NIS 1.2 billion. That is, the Company has the ability to open a large and diverse number of new projects simultaneously, with resources currently available to the Company, and without the need to resort to additional fundraising.

Net profit as of March 31, 2026, totaled approximately NIS 63 million.

On August 24, 2025, a transaction was signed for Phoenix Insurance Company to enter as a partner at a rate of 17.5% in Aura Commercial, in exchange for a total of NIS 140 million based on a company value of NIS 800 million post-money. For details, see immediate reports published by the Company on August 25, 2025 (Ref. No. 2025-01-063159) and on November 2, 2025 (Ref. No. 2025-01-082247), as well as Note 3(41) to the financial statements as of September 30, 2025, which are included here by way of reference.

1.3.

Profitability

The Company has 26 projects in marketing and construction. The total expected gross profit from these projects amounts to approximately NIS 4.8 billion, where as of the date of this report, the total gross profit recognized to date for these projects totaled approximately NIS 749 million. According to the Company's assessment, most of the gross profit yet to be recognized, totaling approximately NIS 4 billion, will be recognized between the years 2026-2030, with the progress of construction in the projects.

In addition, Aura Group expects to begin marketing and/or construction of 13 additional projects comprising 5,311 housing units in the coming year. The total expected gross profit from these projects amounts to approximately NIS 1.6 billion.

Total expected gross profit from projects in marketing and construction, as well as from projects expected to start in the coming year, amounts to approximately NIS 6.4 billion.

1.4.

Marketing and Sales

The Company is in the marketing/construction phase of 26 diverse projects nationwide. These projects include 7,688 housing units, of which 1,610 housing units return to the evacuated apartment owners, and 6,078 housing units are already being marketed by the Company, addressing every family and every family budget. The Company's policy is to open a new project after selling about 25% of the housing units in a pre-sale. This policy has proven itself both in peak and low periods. In all projects opened by the Company in the last year, the Company met this target. In the last year, the Company opened for marketing and construction the following projects: Aura (Rascao) Hadera (530 housing units), Officers' Neighborhood Lod (322 housing units), The Strip (Ben Zvi) in Netanya (1,558 housing units), Aura Jerusalem (Officer Silver) (603 housing units), and Scaure (Weizmann 48-52) in Yehud (300 housing units). Through Megiddo, the Company opened for marketing projects in Tiberias (182 housing units), Ma'alot (120 housing units), Bnei Ayish (100 housing units), as well as in Ofakim (676 housing units) in three compounds, and in the coming year will open for marketing new projects in Bnei Ayish (82 housing units) and Kiryat Ekron (483 housing units), as well as the remainder of the project in Tiberias (64 housing units) and Ma'alot (32 housing units). The projects do not compete with one another.

In addition to projects in marketing and construction, Aura Group expects to start marketing and/or construction of 13 additional new projects comprising 5,311 housing units in the coming year.

Apart from these projects, Aura Group is promoting 136 additional projects comprising approximately 69,627 housing units. In 84 of these projects, there is a special majority of over 67%.

In the last year, the Company completed the construction of the Ben Shemen project, as well as Hadera City (Maccabi) and Ramat Gan (HaRoe), totaling 1,302 housing units; Megiddo completed the Orot HaMoshava projects in Kiryat Malachi, KY in Kfar Yona, and Urban Park in Afula, totaling 303 housing units; in total, Aura Group delivered projects in the scope of 1,605 housing units in the last year.

1.5. Promotion of Urban Renewal Projects

The Company has 175 projects comprising 82,626 housing units.

The Company continues to establish its position as the leading company in the field of urban renewal in Israel. In light of the state's low rate of land marketing, most new construction will be through urban renewal, such that the Company is essentially becoming the largest company in Israel in the field of residential real estate as a whole.

The Company continues with great vigor to promote the planning of the projects it wins, TBP and permits, and at the same time ensures it reaches the required majority of residents (67%) according to law within a reasonable time to execute the projects, so that in the coming years, every year the Company will be able to open thousands of new housing units for marketing and construction.

1.6. Megiddo Y.K. Ltd.

Megiddo is a subsidiary (approx. 77%) of Aura Group, one of the largest and leading companies in the periphery. Megiddo specializes in the initiation, planning, marketing, and construction of residential projects throughout the country, and over the years has built and is building thousands of housing units. Alongside its residential activity, Megiddo is also a partner in the development and construction of large-scale commercial and employment projects and is Aura's construction arm. The Group is characterized by a social vision, and therefore offers affordable housing to all layers of the population - from young couples at the beginning of their journey to housing upgraders and assisted living for the elderly. Under Aura's control, Megiddo has changed its face in the fields of branding, planning, value enhancement, and construction, and has essentially become a dominant factor in residential real estate activity in the periphery, which we estimate is very profitable.

Since Aura's acquisition of Megiddo, and by using Aura's reputation in the capital market and the banking system and its entrepreneurial experience in land value enhancement, project marketing, and project financing, Megiddo has dramatically expanded its scope of activity. Among other things, in the last year, the Company won ILA tenders for lots for projects in Kfar Saba, Be'er Ya'akov, and Beit Dagan, totaling 449 housing units.

In addition, Megiddo signed three construction agreements with Aura in the scope of approximately NIS 929 million for the LINK project in Yehud (Ashkenazi) to establish 6 buildings comprising 444 housing units and commercial and public areas, the Officers' Neighborhood project in Lod to establish 6 buildings comprising 322 housing units and commercial and public areas, and the Tel Adashim project in Afula for the construction of 156 housing units.

During 2026, the Company plans to hand over additional projects for execution to Megiddo in significant volumes.

In January 2025, Megiddo issued NIS 123 million par value of BONDS (Series 1) at a non-indexed interest rate of 5.73%, in an initial public offering, and became a reporting corporation.

On January 12, 2026, Megiddo raised approximately NIS 153 million on the Stock Exchange through the issuance of BONDS (Series 2) at a non-indexed interest rate of 5.17%. Series 2 is not secured by any collateral, which indicates the strengthening of investors' trust in Megiddo.

In July 2025, Megiddo completed an offering of its shares together with warrants (Series 1) exercisable into Megiddo shares, all in accordance with the shelf offering report published by Megiddo. In total, Megiddo raised approximately NIS 181 million, at a company value of approximately NIS 780 million (post-money), and its shares were listed for trading on the Stock Exchange for the first time. As a result, the Megiddo shares purchased by investors in the framework of the offering constitute approximately 23.18% of Megiddo's issued and paid-up share capital. The shares resulting from the exercise of Megiddo's warrants (Series 1) will constitute, on a fully diluted basis, an additional approximately 11.31% of the said capital. Following the offering, Megiddo became a public company, as this term is defined in the Companies Law, 5759-1999, with the Company holding approximately 76.8% of Megiddo's share capital and voting rights.

As of March 31, 2026, Megiddo's equity amounts to a total of approximately NIS 510 million. As of the date of publication of the report, Megiddo is traded at a value of approximately NIS 1 billion; however, most of the increase in the current market value, compared to Megiddo's purchase price by Aura which totaled NIS 280 million, is not reflected in Aura's financial statements due to accounting standards, and in fact, an additional value of hundreds of millions of NIS is hidden beyond the financial statements.

The purchase by Aura, which totaled NIS 280 million, is not reflected in Aura's financial statements due to accounting standards, and in fact, an additional value of hundreds of millions of NIS is hidden beyond the financial statements.

Megiddo is promoting a significant value enhancement move on land it owns in Arad, increasing the project scope from 360 housing units to approximately 1,140 housing units and adding commercial areas. In addition, the KAVA project in Tiberias was enhanced, with the number of housing units increasing from 210 to 246 housing units, as well as the Kiryat Ekron project, where the number of housing units increased from 420 to 483 housing units, along with 1,250 sqm of commercial areas.

During 2024, it was agreed between the Company and Megiddo on a demarcation of activities, within which the commercial areas in Kfar Yona, Bnei Ayish, and any commercial area that will be owned by the Group will be transferred to the Company's ownership. To the extent that a Megiddo project also includes a commercial real estate component, Megiddo will offer it to the Company or a company owned by it, such that the company receiving the commercial real estate part will bear the expenses and investments relating to this part. Additionally, three urban renewal projects in Ofakim, Afula, and Karmiel were transferred to the Company. On the other hand, all land acquisition activities in the Aura Group will be through Megiddo.

On January 29, 2026, the Company's Board of Directors approved a framework of up to NIS 20 million, which will be in effect for one year from the date of the decision, for the purchase of ordinary shares of the Company's subsidiary, Megiddo. For further details, see the immediate report published by the Company on January 29, 2026 (Ref. No. 2026-01-011013), which is included here by way of reference. As of the report date, the Company has purchased 776,380 ordinary shares of Megiddo for a financial scope of approximately NIS 5.8 million.

1.7 Aura Commercial Centers Ltd.

Aura Commercial was established with the goal of developing and managing yield-generating assets within the residential neighborhoods developed by the Company. The compounds mainly include commercial areas as well as employment areas and even long-term rental housing, the total scope of which as of the date of this report stands at approximately 86 thousand sqm. According to the Company's management's assessment, starting from 2026 and until 2030, these commercial areas will begin to generate income in accordance with the progress of the various projects, and with the construction of all projects currently being promoted, the Company estimates that the projected NOI from full occupancy of these areas will total approximately NIS 103 million per year. It should be noted that the assets in Hadera (Maccabi) and Kfar Yona have been completed and tenant occupancy has begun, and in the other projects, construction has started or will start in the coming year. As stated above, the Company allocated shares in Aura Commercial to Phoenix for NIS 140 million based on a company value of NIS 800 million post-money. The Company sees great potential in this activity, complementing the residential development field, with significant future asset value and significant expansion potential in the future upon approval of additional TBPs promoted by the Company and the addition of dozens of other future projects.

For further details regarding the allocation of shares to Phoenix in Aura Commercial, see Note 10C to Part C (Financial Statements) of the 2025 Report.

1.8 Highlights of the Company's Activity During and After the Reporting Period

1.8.1 Signing of a Memorandum of Understanding with Clal Insurance Company Ltd. (hereinafter: "Clal")

For details regarding the MOU with Clal in connection with cooperation under which Clal will invest together with the Company in urban renewal projects of Aura Renewing Israel Ltd., see Section 1.8.1 of Chapter B (Board of Directors Report) of the Periodic report for 2025 published by the Company on March 23, 2025 (Ref. No. 2026-01-025498) (hereinafter: "2025 Report"), which are included here by way of reference.

1.8.2 Sale of Apartments to Rent It Residential Ltd.

On May 25, 2026, the Company, through its subsidiary Aura Renewing Israel Ltd., entered into an agreement for the sale of housing units and an investment agreement with Rent It - REIT Residential Ltd. (hereinafter - Rent It), a public company, as detailed below:

a. Rent It will purchase 52 housing units as well as storage rooms and parking spaces in the Aura City project in Hadera from the subsidiary.

b. Pursuant to the investment agreement, the subsidiary will invest in Rent It, at a value of NIS 9 per share, reflecting a benefit of approximately 10% of the current share price, a total of approximately NIS 20 million, in exchange for the allocation of Rent It shares, which will constitute approximately 5.87% (and approximately 5.65% on a fully diluted basis) of Rent It's issued and paid-up share capital upon their issuance.

c. The consideration for the purchased apartments, totaling approximately NIS 108.5 million including VAT, will be paid as detailed below: (1) a total of NIS 13 million will be paid within 3 days of the agreement signing date; (2) a total of approximately NIS 20 million will be paid concurrently with the completion of the investment agreement; (3) the remaining consideration in the amount of NIS 75.5 million will be paid shortly before the delivery of possession of the purchased apartments, which is expected to take place on June 30, 2026.

Aura Projects

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1.8.3. Engagement in additional projects during the reporting period and thereafter

During the year 2026, the company won 5 additional projects in the urban renewal field. Within the framework of these projects, the company is expected to establish approximately 2,931 new residential units (of which approximately 2,063 units are for marketing by the company). In addition, the company continues to manage many negotiations regarding additional projects that are expected to be signed and added to the project backlog managed by the company.

1.8.4. Rating of the company and its BONDS

On January 4, 2026, Midroog published a rating report for the expansion of BONDS (Series 19) in a total amount of up to 150 million NIS par value at a rating of A2.il (stable outlook). For further details, see the immediate report published by Midroog on January 4, 2026 (reference no.: 2026-001080-15), the contents of which are included herein by way of reference.

1.8.5. Change in accounting standards and the implications for the company

On July 7, 2025, the Israel Securities Authority published a new accounting staff position, the main point of which is guidelines for the accounting treatment of urban renewal transactions. The company began implementing the new guidelines starting from the report for December 31, 2025, and operates according to these guidelines.

The Israel Securities Authority guideline is intended to prevent real estate companies operating in the field of urban renewal from recognizing the fair value of the rights to major commercial center projects received as part of the regulatory approvals for the projects on the day construction begins, but rather to recognize it according to the actual engineering progress rate.

As a consequence of the change, the company's profitability in 2025 was affected relative to the forecasts expected by the company at the beginning of 2025, due to the prevention of the possibility to revalue the commercial center areas at a single point in time and the spreading of the recognition of the inherent profit over the construction period; however, the company estimates that profitability is expected to grow significantly in the next two years.

As a result of the Authority's position, several changes occurred in the way the company's financial reports are presented, including an update of comparison data from the years 2023, 2024, and the first quarter of 2025. Following are the main transformations:

A. In projects where there are rights to build investment property, the value of the land as a whole will be measured at the date construction begins according to the fair value of the land based on a real estate appraiser's assessment, including the commercial rights (hereinafter: "land value"), contrary to the previous situation where the residential land value was measured according to the cost of construction services for evacuated tenants, and the value of commercial rights was presented according to the fair value determined by a real estate appraiser at the start of construction and generated immediate profit for the company.

B. The land value of the commercial component is now also recorded against an obligation to provide construction services and an obligation to pay rent to the evacuated tenants. The obligation to provide construction services will be depreciated over the life of the project according to the actual engineering progress, regardless of sales progress, and correspondingly, costs for construction services will also be recognized according to the actual engineering progress.

C. As a consequence of measuring the real estate according to fair value, the company records revenues and gross profit as stated above that are higher compared to the previous situation, and simultaneously, financing expenses regarding the obligation to provide construction services increased in a material but essentially technical manner relative to the previous presentation method of the financial reports.

The economic significance resulting from the change in accounting standards, which measures the project lands at fair value, actually surfaces true economic value for the company's lands in projects where there is a commercial designation in addition to the residential designation.

If the cost of construction for evacuated tenants is subtracted from the fair value set by the appraiser for the lands, a net value totaling approximately 1.5 billion NIS is actually obtained, and this is only in projects currently under construction. This value is certain, will be recognized as profit, and will be added to the equity in the reports according to the engineering progress rate and regardless of the sales rate.

Below is a summary of the fair value of lands belonging to projects under execution, which are relevant to the accounting changes required by the Israel Securities Authority (in millions of NIS):

Project	Engineering completion rate as of 31.03.26	Residential Land			Investment Property Rights
		Fair value according to appraiser's assessment	Value recognized in financial report as of 31.03.26	Value not yet recognized in financial report as of 31.03.26, to be recognized in the future based on engineering progress	Fair value according to appraiser's assessment	Value recognized in financial report as of 31.03.26	Value not yet recognized in financial report as of 31.03.26, to be recognized in the future based on engineering progress
The Strip Netanya	14%	711	100	611	58	8	50
Only Givatayim	45%	192	86	106	9	4	5
Imagine Givatayim	22%	744	164	580	30	7	23
Empire Ramat Gan	49%	186	91	95	4	2	2
Link Yehud	30%	283	85	198	23	7	16
HaOren Kiryat Ono	81%	211	171	40	15	12	3
Pivko Bat Yam	52%	85	44	41	3	2	1
Ramat HaSharon B	58%	427	248	179	22	13	9
Aura Hadera	25%	189	47	142	30	8	22
Total		3,028	1,036	1,992	194	63	131

Following is a table summarizing the profitability analysis, divided into profit for the land and expected profit for the construction of the project, for the projects under execution of the company in the field of urban renewal where there are rights to build investment property in addition to residential rights. The profit at the land stage is derived from the fair value of the land according to an appraiser's estimate, minus the cost of construction services for evacuated tenants according to the financial report data (in millions of NIS):

Project	Total Expected Gross Profit	Fair value of land based on appraiser's assessment	Construction services cost for evacuated tenants	Profit at land stage for Aura (excluding commercial areas)	Expected entrepreneurial profit at construction stage
The Strip Netanya	1,120	711	398	313	807
Only Givatayim	131	192	99	93	38
Imagine Givatayim	613	744	298	446	167
Empire Ramat Gan	138	186	82	104	34
Link Yehud	273	283	156	127	146
HaOren	228	211	101	110	118
Pivko Bat Yam	111	85	35	50	61
Ramat HaSharon B	387	427	252	175	212
---	---	---	---	---	---
Rasco Hadera	256	189	136	53	203
Total	3,256	3,028	1,557	1,471	1,785

Below is a table summarizing the profitability forecast analysis, divided into profit for the land and expected profit for the construction of the project, for projects that will begin construction in the coming year, in the field of urban renewal where there are rights to build investment property in addition to residential rights. The profit at the land stage is derived from the fair value of the land according to an appraiser's estimate, minus the cost of construction services for evacuated tenants according to the financial report data (in millions of NIS):

Project	Total Expected Gross Profit	Forecasted Fair Value for Land	Forecasted Construction Services Cost for Tenants	Expected Profit at Land Stage for Aura (excluding commercial areas)	Expected Entrepreneurial Profit at Construction Stage
Aura Jerusalem	309	300	150	150	159
Square Yehud	110	100	70	30	80
Daphna Tel Aviv	131	150	100	50	81
HaTayasim Ness Ziona	193	300	150	150	43
Yoseftal Kiryat Yam	510	700	350	350	160
Total	1,253	1,550	820	730	523

1.8.6. Main Operational Parameters of the Company

Following is an analysis of the main operational results in the reporting periods (in thousands of NIS):

	1. 0/2026	2. 0/2025	3. 12/2025
Revenues	495,104	426,365	1,904,524
Company's total gross profit	135,969	115,450	496,810
Gross profit percentage from sale of residential units and construction services	27%	27%	26%
Operating profit	114,638	131,191	463,445
Finance expenses, net	40,574	18,824	123,242
Net profit	63,001	94,504	283,784
Equity to CAP, net	35%	34%	38%

The company's revenues grew by 16% in the first quarter of 2026 compared to the same period last year, as a result of an increase in the number of projects under execution and improved profitability of the new projects.

The company's gross profit from the sale of residential units and from construction services for the first quarter of 2026 totaled approximately 136 million NIS, representing approximately 27% of revenues, compared to a gross profit of approximately 115 million NIS, which represented approximately 27% of revenues in the same period last year, an increase of approximately 18% in the gross profit from the sale of residential units and from construction services in the first quarter of 2026.

The operating profit for the first quarter of 2026 totaled approximately 114 million NIS compared to approximately 131 million NIS in the same period last year, a decrease of approximately 13% relative to the same period in 2025, primarily resulting from an increase in general and administrative expenses due to an increase in the workforce of the Aura group, and an increase in marketing expenses, as well as a revaluation of approximately 37 million NIS for land in Arad recorded in the first quarter of 2025.

In the finance expenses, net section, there was an increase relative to the finance expenses in the same period last year. Financing expenses grew from approximately 18.8 million NIS in the same period last year to approximately 40.5 million NIS in the first quarter of 2026, due to an increase in credit and the scope of BONDS, and an increase in financing expenses for construction services.

The company's equity-to-CAP, net ratio totaled 35% as of March 31, 2026, compared to 34% in the same period last year, and compared to 38% as of December 31, 2025. The decrease stems mainly from the purchase of new lands financed by bank debt through Megiddo, as well as from an increase in the BONDS item in 2026.

In summary, the company's total net profit for the first quarter of 2026 totaled approximately 61 million NIS compared to a profit of approximately 97 million NIS in the same period last year.

For further and detailed explanations, see section 2.1 below.

The company's estimates regarding the expected sale of residential units, gross and entrepreneurial profit in projects, fair value estimation for company lands in projects starting in the coming year, net profit for 2026, sales targets, project backlog, delivery of inventory balances, the impact on the company's inventory, and regarding the number of new projects the company will begin marketing and/or executing during the coming year are based, among other things, on the information available to the company and the company's assessments as of this date and constitute "forward-looking information," as defined in the Securities Law, 5728-1968. This information may not be realized or may be realized in a different manner than anticipated, among other things, if negotiations managed by the company regarding additional projects are not completed into binding agreements and/or if all conditions for starting the projects are not met and/or if material adverse changes occur in the state of the economy and/or in the real estate market and/or in the residential housing market and/or if any of the conditions required for the establishment of any of the project parts mentioned above are not met, including, among others, sufficient marketing of units, delay or other prevention in obtaining building permits and/or in the project licensing processes or in the fulfillment of any of the conditions of the applicable plans and more, and/or if any of the risk factors to which the company is exposed occur as detailed in section 34 of the chapter describing the corporation's business included in the 2025 periodic report, which are included herein by way of reference.

1.8.7. Effects of the Security Situation

For details see Note 1B in the financial statement as of March 31, 2026, included herein by way of reference.

From October 7, 2023, until the date of publication of the report, the State of Israel is in a state of war for most of the period - in Gaza, Lebanon, and against Iran. On February 28, 2026, the "Sha'agat Ha'Ari" operation against Iran began, during which fighting was also renewed against Lebanon. On April 8, a ceasefire came into effect between the USA and Iran for the purpose of conducting negotiations for a long-term agreement. On April 16, a ceasefire was also declared in Lebanon. As of the report publication date, it is not possible to know how long the ceasefires will last, whether they will lead to a cessation of fighting, or if it will be renewed and on which fronts. In the company's estimation, the end of the state of war will bring positive improvement to the real estate sector, an increase in demand for apartments, and a decrease in bank of Israel interest that will directly affect the residential real estate market in Israel.

As of the date of approval of the financial reports, the effects of the security situation on the group's operating results are not material, and the company's construction sites are operating as usual.

Throughout the entire period of fighting, the Israeli economy demonstrated extraordinary strength, a low unemployment rate, a decrease in the inflation rate, the completion of giant transactions such as the Wiz transaction, the continued flow of investor funds into the country, and economic growth.

The company expects that the State of Israel will experience an economic breakthrough in general and in the residential real estate sector in particular. The company anticipates that the rate of apartment purchases by households will increase, and furthermore, the company estimates that there will be a return of Israelis who left for countries such as Cyprus and the United Arab Emirates back to Israel, as well as a large wave of Jewish Aliyah from the world to Israel.

The company's assessments in this section above, regarding the effects of the war on the company, its projects, and its financial results, as well as regarding the impact of the war on the demand and supply of the residential housing market in Israel, are forward-looking information, as defined in section 32A of the Securities Law, 5728-1968, based on the information available to the company as of the date of report publication and the assumptions detailed above. These assessments may not be realized, in whole or in part, or may be realized in a materially different manner than anticipated, among other things, due to being influenced by factors that are not under the company's control. The continuation of the war situation, its expansion to additional areas in the country, changes in state and Home Front Command guidelines, the recovery rate of the Israeli economy, growth trends in Israel and globally, as well as additional changes resulting from the aforementioned, may affect the company's activity and its financial results differently than the assessments detailed above.

2. Board of Directors' Explanations for the Corporation's Business Status

2.1. Results of the Company's Business Activity (in thousands of NIS)

Below are the explanations for the main developments that occurred in the company's operating results for the period ended March 31, 2026 (in thousands of NIS):

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	For the three-month period ended March 31		For the year ended December 31, 2025	Change compared to the first quarter of 2025	Company's Board of Directors explanations for the changes
	2026	2025
Revenues from the sale of residential units and construction services	495,104	426,365	1,904,524	68,739	The increase is mainly due to new projects that were not in the corresponding period last year; on the other hand, there is a decrease in revenue due to completed projects.
Cost of residential units sold and construction services	(359,135)	(310,915)	(1,407,714)	(48,220)	Similar to the explanation for revenues.
Gross profit	135,969	115,450	496,810	20,519
Selling, marketing, and operating expenses	(10,561)	(6,159)	(33,357)	(4,402)	The increase is due to an increase in advertising expenses for projects.
General and administrative expenses	(21,281)	(15,555)	(74,928)	(5,726)	The main increase of approx. NIS 4.5 million stems from salary expenses due to an increase in the number of employees in the Aura group, as well as due to warrants for employees in the amount of approx. NIS 1.7 million.
Other expenses, net	612	-	355	612	No material change.
Fair value adjustment of investment property under construction	9,899	37,455	74,565	(27,556)	In the first quarter of 2025, the land in Arad was revalued at approx. NIS 37 million, while in the current quarter, the same land was revalued at approx. NIS 10 million.
Operating profit	114,638	131,191	463,445	(16,553)
Financing expenses, net	(40,574)	(18,824)	(123,242)	(21,750)	The increase is mainly due to an increase in financing expenses for combination deals in the amount of approx. NIS 10 million, mainly for new projects, an increase in financing expenses for BONDS in the amount of approx. NIS 8 million, mainly for new BONDS issued during the period, as well as an increase in financing expenses for projects under construction.
Company's share in profits of companies accounted for using the equity method	7,427	11,109	30,026	(3,682)	The main decrease stems from the Imagine project in Givatayim.
Profit before income taxes	81,491	123,476	370,229	(41,985)
Income taxes	(18,490)	(28,972)	(85,627)	10,482	The decrease in tax expenses stems from the decrease in profit compared to the corresponding period last year.

	For the three-month period ended March 31		For the year ended December 31, 2025	Change compared to the first quarter of 2025	Company's Board of Directors explanations for the changes
	2026	2025
Net profit for the period	63,001	94,504	284,602	(31,503)
Adjustments arising from the translation of financial statements of foreign operations	(1,430)	2,674	(818)	(4,104)	The Euro exchange rate decreased during the period by approx. 3%, compared to an increase of approx. 6% in the corresponding period last year.
Total comprehensive profit for the period	61,571	97,178	283,784	(35,607)

2.2. Statement of Financial Position

Below are the main changes that occurred in the Periodic report items of the statement of financial position as of March 31, 2026, compared to December 31, 2025 (in NIS thousands):

	As of March 31, 2026	As of December 31, 2025	Change compared to December 31, 2025	Company's Board of Directors explanations for the changes
Cash and cash equivalents	282,177	226,816	55,361	See explanation in section 2.2.1 below
Cash and restricted deposits in use	250,472	392,293	(141,821)	The main change stems from the release of funds due to excess equity invested in projects prior to the commencement of project financing.
Marketable securities/securities	44,815	44,863	(48)	No material change.
Accounts receivable and debit balances	251,532	198,651	52,881	The main increase stems from the value-added tax receivable item.
Assets from contracts with customers	1,517,031	1,475,103	41,928	The increase in this item stems from the progress in the construction rate, which is higher than the receipt of payments from customers.
Intangible asset	3,373	4,048	(675)	Stems from current amortization.
Investment property held for sale	-	6,600	(6,600)	Sold during the quarter.

	As of March 31, 2026	As of December 31, 2025	Change compared to December 31, 2025	Company's Board of Directors explanations for the changes
Inventory of buildings under construction, residential units for sale, and real estate for construction	4,224,399	4,174,334	50,065	On one hand, there are additions to inventory during the report period, and on the other hand, the company recognized the cost of sales in profit and loss for projects in which revenue recognition has begun.
Total current assets	6,573,799	6,522,708	51,091
Investment in companies accounted for using the equity method	116,997	109,463	7,543	The change stems from equity profits accumulated during the report period.
Non-current receivables and debit balances	3,006	3,577	(571)	No material change.
Real estate inventory for construction	814,693	468,739	345,954	The increase stems mainly from the completion of land acquisitions in Kfar Saba, Beit Dagan, and Beer Yaakov by Megiddo.
Investment property under construction	752,335	713,091	39,244	The main increase stems from a land revaluation in Arad in the amount of approx. NIS 10 million, and the rest from additions.
Fixed assets, net	17,732	17,383	349	No material change.
Right-of-use assets	16,582	15,518	1,064	No material change.
Intangible assets	20,473	20,473	-	No change.
Total non-current assets	1,741,818	1,348,244	393,574
Total assets	8,315,617	7,870,952	444,665
Credit from banking and other corporations	2,310,080	2,228,960	81,120	The increase in credit volume stems from an increase in loans in the financing accounts for the purpose of financing the construction of projects under execution.
Loans for investment property held for sale	-	2,403	(2,403)	Repaid during the quarter following the sale of the asset to which the loan is attributed.

	As of March 31, 2026	As of December 31, 2025	Change compared to December 31, 2025	Company's Board of Directors explanations for the changes
BONDS	173,155	156,763	16,392	During the period, the company and Megiddo issued BONDS for NIS 306 million; on the other hand, approx. NIS 93 million in BONDS were repaid during the period (see together with the BONDS item in non-current liabilities).
Liabilities to suppliers and service providers	242,980	299,263	(56,283)	This change stems from the repayment of liabilities to suppliers and service providers.
Accounts payable and credit balances	209,686	192,847	16,839	The main increase, totaling approx. NIS 10 million, stems from accrued expenses and the balance from a provision for repairs/warranty.
Liabilities from contracts with customers	161,519	197,040	(35,521)	A decrease in this item occurs when the progress rate in projects is higher than the rate of receipts.
Current maturities of lease liabilities	14,417	14,948	(531)	No material change.
Liabilities to landowners	1,666,831	1,808,220	(141,389)	The decrease stems from the company's progress in executing projects.
Total current liabilities	4,778,668	4,900,444	(121,776)
Credit from banking corporations	293,189	1,205	291,984	The increase stems mainly from taking loans to finance the acquisition of land in Kfar Saba, Beit Dagan, and Beer Yaakov by Megiddo.
Employee benefits	160	160	-	No change.
Lease liability	2,904	1,242	1,662	No material change.
BONDS	1,115,472	918,582	196,890	See explanation for this item in the current liabilities section.
Deferred taxes	191,833	173,430	18,403	The main increase stems from profits taxable according to accounting rules (mainly from the sale of apartments and construction services), but according to the law, the tax liability timing has not yet arrived.
Total non-current liabilities	1,603,558	1,094,619	508,939
Equity attributable to the company	1,669,508	1,612,320	57,188	The main increase stems from profit during the period.
Non-controlling interests	263,883	263,569	314	No material change.
Total equity	1,933,391	1,875,889	57,502
Total liabilities and equity	8,315,617	7,870,952	444,665

Financial Ratios

	As of March 31, 2026	As of December 31, 2025
Current ratio	1.38	1.33
Ratio of equity to total balance sheet	23.3%	23.8%
Equity to net CAP ratio attributable to the company (*)	35%	38%
Ratio of equity to total balance sheet excluding liabilities from contracts with customers and liabilities to landowners	30%	32%

(*) Net equity-to-CAP ratio is the equity ratio divided by the sum of the company's equity plus the company's credit from all its sources, net of cash and cash equivalents balances.

Liquidity

2.2.1. Cash Flows

As of March 31, 2026, the company has cash balances totaling approx. NIS 282 thousand. Below is an analysis of the company's cash flows according to the company's financial statements and the Board of Directors' explanations for the main changes that occurred in them (NIS thousands):

Item	For the three-month period ended March 31		For the year ended December 31, 2025	Company's Board of Directors explanations for the changes
	2026	2025
Cash balance at the beginning of the period	226,816	109,921	109,921
Net cash from (used in) operating activities	(638,410)	(496,357)	(923,031)	Net cash used in operating activities stems mainly from a decrease in liabilities and an increase in receivables in the cash flow statement. Additionally, there was an increase in long-term land inventory of Megiddo due to the acquisition of 3 plots of land in Kfar Saba, Beit Dagan, and Beer Yaakov. It should be clarified that the negative cash flow from operating activities in the company's consolidated reports stems, among other things, from a mismatch between the rate of growth and investment in inventory and its realization, and the timing of collection from customers, especially in light of the collection method practiced by the company, whereby most of the purchase amount is collected from customers near the project's completion.
Net cash from investing activities	117,160	108,454	(180,613)	The main cash provided by investing activities stems from a decrease in restricted deposits in use following the withdrawal of funds from such accounts in projects.
Net cash from financing activities	576,612	361,356	1,220,542	The main cash provided by financing activities stems from BONDS 65 in the amount of approx. NIS 213 million and receiving long-term loans in Megiddo from banking corporations in the amount of NIS 292 million.

Item	For the three-month period ended March 31		For the year ended December 31, 2025	Company's Board of Directors explanations for the changes
	2026	2025
Translation differences for cash and cash equivalents balances	(1)	12	(3)	No material change.
Cash balance at the end of the period	282,177	83,386	226,816

2.2.2. Financing Sources and Material Financing Agreements During the Report Period

The main financing of the company's activity is from equity resulting from surplus releases in financed projects, capital injections according to transactions such as the Phoenix transaction and the Clal transaction, from the issuance of BONDS to the public and from private placements (by way of expanding traded series), where as of the report date there are four series of BONDS in circulation, from the issuance of shares and exercise of (non-marketable) warrants for the company's shares, and also from financial support provided to the company in various projects mainly by banking corporations. For more details regarding capital and debt raising, see section 2.3.2 of Chapter B (Board of Directors Report) of the 2025 report, and sections 3 and 24 of Chapter A (Description of the Corporation's Business) of the 2025 report.

The company's policy for many years has allowed its customers flexibility in contractual payment dates and adjustment of payment dates to the customers' needs, since the company generally does not purchase the land on which projects are built in the urban renewal field. This fact brings projects to a stage where the project consumes bank credit from the financing account until just before apartment delivery and completion of payment by the customers, repayment of bank credit, and release of project surpluses to the company.

2.2.3. Financing Agreements

For details regarding the company's financing agreements, see section 2.3.4 of Chapter B (Board of Directors Report) of the 2025 report, and section 14 of Chapter A (Description of the Corporation's Business) of the 2025 report.

2.2.4. Working Capital

The company has a positive working capital in the consolidated reports and in the separate reports as of March 31, 2026, which amounted to approx. NIS 1.8 million and approx. NIS 1.2 million, respectively. For more details regarding the company's working capital, see section 23 of Part A (Description of the Corporation's Business) of the 2025 report.

Item	Amount included in the financial statements as of 01.01.2026 (in NIS thousands)	Adjustments (for a 12-month period) (in NIS thousands)	Working capital for a 12-month period (in NIS thousands)
Current Assets	6,573,799	(1,882,205)	4,691,594
Current Liabilities	(4,778,668)	1,444,979	(3,333,689)

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Working capital for a period of 24 months (in thousands of RIS)	Adjustments (for a period of 24 months) (in thousands of RIS)	The amount included in the financial statements as of 03.31.2026 (in thousands of RIS)
1,357,905	(437,226)	1,795,131
Total of the financial statements included

The Board of Directors examined the projected cash flow for the 24 consecutive months following the date of approval of this report and the assumptions used in its preparation, including in connection with project start dates and the scope of equity investment required in projects, capital injections in accordance with the Phoenix deal, approved and undrawn credit facilities at banks, BONDS issuances and/or other loans, timings and probability of realization and repayment of BONDS, expected release dates of surpluses in various projects, and in connection with asset realizations, their timing, the expected proceeds from their sale, and the probability of their realization.

The Board of Directors determined that the continuous negative cash flow from operating activities in the company's consolidated reports does not indicate a liquidity problem and that the company can meet its obligations during the projected flow period. Therefore, in the company's financial statements as of March 31, 2026, no warning sign exists as stated in Regulation 10(b)(14) of the Securities Regulations (Periodic and Immediate Reports), 1970.

The information as stated in this section above constitutes "forward-looking information" as defined in the Securities Law and is information based on economic scenarios prepared by the company, considering: (a) current sale prices; (b) construction costs based on work calculations; (c) the projected sales rate based on the company's experience; (d) dates for receiving building permits; (e) the progress rate of the project construction and the possibility of drawing surpluses from support accounts; (f) availability of bank and non-bank credit; (g) the possibility of drawing funds from subsidiaries; and (h) the rate and price of asset realizations. The company's forecasts may not materialize, among other things, if material adverse changes occur in the economy and/or in the real estate market and/or in the residential housing market, including in residential rental prices and/or in the sale prices of units compared to the prices used as a basis for the forecast and/or if material adverse changes occur in project costs and/or if material adverse changes occur in project execution costs in raw material prices and/or their availability and/or in construction input prices and/or in labor availability and/or the sales rate of apartments in the projects or of asset realizations falls significantly from the sales rate that served as a basis for predicting the information as stated will take place and/or any of the risk factors to which the company is exposed as detailed in Section 34 of the Corporate Business Description chapter included in the 2025 report, which are included here by reference.

2.3. General update regarding residential construction projects in Israel

The following table summarizes the project data of Aura Group:

Project Status		No. of projects or of the report publication date	Total units in project	No. of units in project for marketing by the company	No. of units in project remaining for sale as of the report publication date
Projects whose construction and/or marketing have begun	The Company	16	6,289	4,679	2,988
	Megiddo	10	1,399	1,399	442
	Total Aura Group	26	7,688	6,078	3,430
Additional projects expected to be available for marketing/execution in the coming year	The Company	7	4,410	3,508	Marketing not yet begun
	Megiddo	6	901	901
	Total Aura Group	13	5,311	4,409
Projects in advanced planning	The Company	84	37,946	28,696	Marketing not yet begun
	Megiddo	-	-	-
	Total Aura Group	84	37,946	28,696
Projects in future planning (*)	The Company	47	30,718	24,715	Marketing not yet begun
	Megiddo	5	963	963
	Total Aura Group	52	31,681	25,678
Total Projects		175	82,626	64,861

(*) Includes projects in planning that have not yet reached the signature rate representing a privileged majority (below 67%), as well as land in development.

As of the date of approval of this report, 26 projects are in the stage of construction, execution, and marketing. These projects include 7,688 units (the Group's effective share is 6,078 units), of which as of the date of the report, for 2,648 units, binding sale agreements have been signed. Most of the remaining units for sale of the Company are for projects whose completion date is expected from 2026 onwards.

The expected total gross profit for these projects amounts to approximately NIS 4.8 billion (the Group's effective share is approximately NIS 4.2 billion), while as of the date of this report, the total gross profit recognized by Aura Group for these projects amounted to approximately NIS 749 million. In the Company's assessment, most of the gross profit not yet recognized in the amount of approximately NIS 4 billion will be recognized between the years 2026-2030, with the progress of project execution. For more information, see section 2.4 below.

In the Company's assessment, during the coming year, 13 additional projects are expected to be available for execution/marketing. These projects include 5,311 units (Aura Group's effective share is 4,409 units). The total expected gross profit for these projects amounts to approximately NIS 1.7 billion (Aura Group's share amounts to approximately NIS 1.6 billion). For more information, see section 2.5 below.

It should be noted that Aura Group is promoting licensing, Urban Building Plans (TA'BA), and signing residents on evacuation-reconstruction agreements in another 136 projects in various planning stages, which include approximately 69,627 units, of which the Company's effective share is approximately 54,374 units.

The Company's assessments regarding the number of additional projects expected to be available for construction, the number of housing units, and the expected total gross profit are based, among other things, on information available to the Company and on the Company's assessments as of this date and constitute "forward-looking information," as defined in the Securities Law. These assessments may not materialize, in whole or in part, or may materialize in a materially different way than anticipated, among other things if all the conditions for starting the projects are not met and/or if material adverse changes occur in the state of the economy and/or the state of the real estate market and/or the state of the residential housing market and/or any of the risk factors to which the Company is exposed as detailed in section 34 of Part A (Corporate Business Description) included in the 2025 report.

2.4 Detail regarding sales data and gross profit in main projects whose construction and/or marketing has begun (in thousands of NIS)

Project Name and Location	Project Location	Completion Rate	Total Units in Project	No. of Units in Project for Marketing by the Company	Binding Sales Contracts Signed up to 03.31.2026	Marketing Rate in Project 03.31.2026	Sales Contracts Signed from the Beginning of the Year up to 03.31.2026	Additional Sales Contracts Signed until the Report Approval Date	Total Consideration in Sales Contracts Signed up to 03.31.2026	Expected Gross Profit from the Project	Gross Profit Recognized for the Project up to 03.31.2026	Gross Profit Not Yet Recognized for the Project	Expected/Actual Construction Completion Date
Aura-Ramati Chen (3)	Ramat Gan	87%	522	369	216	59%	-	-	645,562	354,593	149,603	204,990	Q4 2026
"ONLY Givatayim" (1)	Givatayim	45%	168	108	61	56%	1	1	241,547	130,535	30,175	100,360	Q4 2027
HaGren Project (1)	Kiryat Ono	81%	305	209	139	67%	-	1	426,468	227,861	119,813	108,048	Q4 2026
Aura-Ramat HaSharon - Phase B (1)	Ramat HaSharon	58%	447	327	178	54%	1	1	570,324	386,649	101,937	284,712	Q1 2027
Aura EMPRE (Megadim State Tower) (1) (2) (3)	Ramat Gan	49%	198	110	69	63%	1	1	229,648	138,166	35,170	102,996	Q3 2027
Aura Pivko Bat Yam (1) (4)	Bat Yam	52%	120	97	50	52%	-	1	163,765	110,752	25,313	85,439	Q3 2027
Sarime Holon	Holon	83%	89	57	37	65%	-	1	73,916	21,825	10,392	11,433	Q1 2027
HaTayasim Tel Aviv	Tel Aviv	54%	85	61	49	80%	-	-	125,856	39,870	14,811	25,059	Q1 2027
Eliyalu Berlin Tel Aviv (2)	Tel Aviv	70%	41	22	10	45%	-	1	61,055	71,953	20,829	51,124	Q3 2027
Givatayim Imagine (Complex T) (1) (3)	Givatayim	22%	557	384	105	27%	1	2	375,735	612,756	29,346	583,410	Q4 2029
URK (Ashkenazi) Yehud (1)	Yehud	30%	444	328	178	54%	2	1	412,774	303,456	40,968	262,488	Q4 2028
Aura Hadera (Rassco) (1)	Hadera	25%	530	430	149	35%	6	1	298,300	256,122	15,932	240,190	Q2 2030
The Strip - New City Zone on Ben Zvi (1)	Netanya	14%	1,558	1,166	294	25%	1	4	797,104	1,119,914	35,184	1,084,730	Q3 2030
Officers' Towers - Lod (1) (5) (8)	Lod	15%	322	320	82	26%	-	1	131,917	169,508	4,494	165,014	Q4 2028
Aura Jerusalem (Officer Silver) (3)	Jerusalem	-	603	467	32	7%	17	5	94,357	308,998	-	308,998	Q3 2031
Square (Weizmann 48-52)	Yehud	-	300	224	18	8%	6	5	39,759	109,591	-	109,591	Q2 2030
Urban Park Lot 104	Afula	86%	14	14	13	93%	-	-	20,034	3,423	2,883	540	Q4 2026
Alanim Quarter 2 - Migdal HaEmek (6)	Migdal HaEmek	88%	61	61	61	100%	-	-	115,174	25,932	22,820	3,112	Q2 2026
Megiddo by the Lake	Ofakim	82%	156	156	136	87%	1	1	158,788	66,646	34,919	31,727	Q4 2026

The data presented in the table are expected accounting profit data, from which additional expected profits from the project

attributed to commercial areas classified as investment property have been neutralized.

Project Name and Location	Project Location	Completion Rate	Total Units in Project	No. of Units in Project for Marketing by the Company	Binding Sales Contracts Signed up to 03.31.2026	Marketing Rate in Project 03.31.2026	Sales Contracts Signed from the Beginning of the Year up to 03.31.2026	Additional Sales Contracts Signed until the Report Approval Date	Total Consideration in Sales Contracts Signed up to 03.31.2026	Expected Gross Profit from the Project1	Gross Profit Recognized for the Project up to 03.31.2026	Gross Profit Not Yet Recognized for the Project	Expected/Actual Construction Completion Date
BETWEEN	Ofakim	74%	90	90	82	91%	-	-	108,276	38,190	24,910	13,280	Q4 2026
KAVA - Lots 301-305 (6)	Tiberias	34%	182	182	62	34%	2	-	131,793	159,477	16,535	142,942	Q2 2028
TRIO by MEGIDO - Complex 1- Ofakim	Ofakim	41%	197	197	161	82%	5	1	169,078	33,925	9,549	24,376	Q1 2028
MONO Complex 5	Ma'alot	17%	120	120	43	36%	8	1	61,206	25,352	1,429	23,923	Q1 2028
TRIO by MEGIDO - Complex 11- Ofakim	Ofakim	16%	209	209	142	68%	6	-	131,598	32,914	2,712	30,202	Q1 2028
TRIO by MEGIDO - Complex 3- Ofakim	Ofakim	-	270	270	175	65%	24	1	145,609	33,759	-	33,759	Q1 2028

Project Name and Location	Project Location	Completion Date	Total Units in Project	No. of Units in Project for Marketing by the Company	Binding Sales Contracts Signed up to 03.31.2026	Marketing Rate in Project 03.31.2026	Sales Contracts Signed from the Beginning of the Year up to 03.31.2026	Additional Sales Contracts Signed until the Report Approval Date	Total Consideration in Sales Contracts Signed up to 03.31.2026	Expected Gross Profit from the Project	Gross Profit Recognized for the Project up to 03.31.2026	Gross Profit Not Yet Recognized for the Project	Expected/Actual Construction Completion Date
Bnei Ayish Lots 2053, 2054	Bnei Ayish	-	100	100	71	71%	71	7	94,178	25,819	-	25,819	Q1 2029
Total projects in marketing/execution			7,688	6,078	2,613		155	35	5,823,821	4,807,986	749,724	4,058,262
Total projects whose construction was completed in 2025 (7)							8	63
Total Aura sales							163	98
Total units sold from the start of the year until the report approval date								261

(1) In the framework of the aforementioned project, commercial areas are expected to be built in addition to the housing units detailed in the table.
(2) Revenues in the Empire and Eliyahu Berlin projects include revenues from providing construction services received in cash.
(3) The Company's share in the project is 70%.
(4) The Company's share in the Pivko project is 80%, and 12 apartments are designated for rental.
(5) The Company's share in the Officers' Neighborhood Lod project is 81%.
(6) Megiddo's share in the project is 50%.
(7) These are the following projects: Ben Shemen, Ramat HaSharon A, Aura City Hadera, HaRe'ut Ramat Gan, Vision, Utopia, KY Kfar Yona.
(8) The expected gross profit in the Officers' Neighborhood project in Lod is neutralized from an excess cost in the amount of NIS 87,730 thousand, which was recognized as a profit in the Company's financial statements for the year 2022.

5/27/2026 | 6:15:59 AM | +1 2.3

Additional Information 2.4.1.

(a) Aura Ramat Chen, Ramat Gan

For details see section 2.5.1(c) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 522 housing units, of which 153 housing units return to the evacuated apartment owners. As of the report preparation date, 216 out of 369 housing units for marketing in the project were sold.

(b) "Givatayim ONLY" Project

For details see section 2.5.1(d) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 168 housing units, of which 60 housing units return to the evacuated apartment owners. As of the report preparation date, 62 out of 108 housing units for marketing in the project were sold.

For details see section 2.5.1(e) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 305 housing units, of which 96 housing units return to the evacuated apartment owners. As of the report preparation date, 140 out of 209 housing units for marketing in the project were sold.

(d) Aura Ramat HaSharon - Phase B

For details see section 2.5.1(f) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 447 housing units, of which 120 housing units return to the evacuated apartment owners. As of the report preparation date, 179 out of 327 housing units for marketing in the project were sold.

(e) Aura EMPIRE (Migdal HaTmarim Megadim), Ramat Gan

For details see section 2.5.1(z) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 198 housing units, of which 88 housing units return to the evacuated apartment owners. As of the report preparation date, 70 out of 110 housing units for marketing in the project were sold.

(f) Aura Pivko Bat Yam

For details see section 2.5.1(h) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 120 housing units, of which 23 housing units return to the evacuated apartment owners. As of the report preparation date, 50 out of 97 housing units for marketing in the project were sold.

(g) Tarlin Holon

For details see section 2.5.1(i) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 89 housing units, of which 32 housing units return to the evacuated apartment owners. As of the report preparation date, the company sold 37 housing units out of 57 housing units for marketing in the project.

(h) 92 HaTayasim Street, Tel Aviv

For details see section 2.5.1(j) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 85 housing units, of which 24 housing units return to the evacuated apartment owners. As of the report preparation date, the company sold 49 housing units out of 61 housing units for marketing in the project.

(i) Eliyahu Berlin (The New Ramat Aviv G), Tel Aviv

For details see section 2.5.1(k) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 41 housing units, of which 19 housing units return to the evacuated apartment owners. As of the report preparation date, the company sold 11 housing units out of 22 housing units for marketing in the project.

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(i) Givatayim Imagine (Complex T) [Urban Renewal]

For details see section 2.5.1(l) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 557 housing units, of which 173 housing units return to the evacuated apartment owners. As of the report preparation date, the company sold 107 housing units out of 384 housing units for marketing in the project.

(k) LINK Project (Ashkenazi) - Yehud

For details see section 2.5.1(m) of Chapter B (Board of Directors Report) of the 2025 Report.

During the first quarter of 2026, a full building permit was received for the project.

The project has 444 housing units, of which 116 housing units return to the evacuated apartment owners. As of the report preparation date, the company sold 179 housing units out of 328 housing units for marketing in the project.

(l) Aura Hadera (Rasco)

For details see section 2.5.1(n) of Chapter B (Board of Directors Report) of the 2025 Report.

During the month of April 2026, the company received a full building permit for the project.

The project has 530 housing units, of which 100 housing units return to the evacuated apartment owners. As of the report preparation date, the company sold 150 housing units out of 430 housing units for marketing in the project.

(m) The Strip - Ben Zvi New City Strip [Urban Renewal]

For details see section 2.5.1(o) of Chapter B (Board of Directors Report) of the 2025 Report.

The project has 1,558 housing units, of which 392 housing units return to the evacuated apartment owners. As of the report preparation date, the company sold 298 housing units out of 1,166 housing units for marketing in the project.

(n) Officers Towers (C.B.D. 3A) - Lod

For details see section 2.5.1(p) of Chapter B (Board of Directors Report) of the 2025 Report.

As of the report preparation date, the company sold 83 housing units out of 320 housing units for marketing in the project.

(o) Aura Jerusalem (Officer Silver), Jerusalem [Urban Renewal]

For details see section 2.5.1(q) of Chapter B (Board of Directors Report) of the 2025 Report.

A demolition, excavation, and shoring permit has been received for the project.

The project has 603 housing units, of which 136 housing units return to the evacuated apartment owners. As of the report preparation date, the company sold 37 housing units out of 467 housing units for marketing in the project.

(p) Square (Weizman 48-52), Yehud - Monoson

For details see section 2.5.1(r) of Chapter B (Board of Directors Report) of the 2025 Report.

A demolition, excavation, and shoring permit has been received for the project.

The project has 300 housing units, of which 76 housing units return to the evacuated apartment owners. As of the report preparation date, the company sold 23 housing units out of 224 housing units for marketing in the project.

2.5. Details regarding additional projects of the company expected to be available for construction in the coming year and expected to be completed by the end of 2031

Project Name	Project Location	Total housing units in project	No. of housing units in project for marketing by the company	Expected gross profit from the project	Landowner signatures rate	Expected construction duration in months
S.H.L. Lod Complex (1)	Lod	620	620	238,347	N/A	48
Karkus - Expansion, Moshav Karkus	Karkus	200	200	29,671	N/A	36
Tel Adashim	Afula	156	156	41,944	N/A	36
Kiryat Moshe - Rehovot	Rehovot	678	454	216,287	96%	48
Dafna Complex	Tel Aviv	208	139	130,897	100%	52
HaTayasim Complex - Ness Ziona	Ness Ziona	700	480	192,608	87%	60
Yoseftal Kiryat Yam	Kiryat Yam	1,848	1,459	509,781	87%	60
MONO Complex 3	Ma'alot	100	100	23,529	N/A	33
MONO Complex 4	Ma'alot	140	140	33,289	N/A	36
Bnei Ayish Plots 3012-14	Bnei Ayish	82	82	20,048	N/A	30
KAVA Plots 203-204	Tiberias	64	64	67,835	N/A	42
MONO Complex 5 Plots 76 and 79-80	Ma'alot	32	32	18,813	N/A	42
Kiryat Ekron	Kiryat Ekron	483	483	139,886	N/A	42
Total		5,311	4,409	1,662,935

(1) Within the framework of these projects, commercial areas are expected to be built in addition to the housing units detailed in the table. The gross profit figures do not include the profitability from the commercial areas.

The total expected gross profit from the projects in execution and from projects whose construction will start in the coming year (tables in sections 2.4 and 2.5 above) amounts to approximately NIS 6.4 billion; these data do not include projects whose construction will start from the second quarter of 2027 onwards.

2.5.1. Additional Information

(a) Shachal Lod

For details see section 2.6.1(a) of Chapter B (Board of Directors Report) of the 2025 Report.

(b) Tel Adashim (Afula)

For details see section 2.6.1(b) of Chapter B (Board of Directors Report) of the 2025 Report.

For details see section 2.6.1(c) of Chapter B (Board of Directors Report) of the 2025 Report.

(d) Dafna Complex. Tel Aviv

For details see section 2.6.1(d) of Chapter B (Board of Directors Report) of the 2025 Report.

(e) HaTayasim Complex. Ness Ziona

For details see section 2.6.1(e) of Chapter B (Board of Directors Report) of the 2025 Report.

(f) Yoseftal Kiryat Yam

For details see section 2.6.1(f) of Chapter B (Board of Directors Report) of the 2025 Report.

2.6 Details regarding additional projects of the company in various planning stages that have not yet begun marketing

Details regarding additional company projects in various planning stages where the company has reached the required majority of tenant signatures (67% and above)

Project Name	Project Location	Total housing units in project (1)	No. of company units in project (2)	Landowner signatures rate	Reaching Qualified Majority
Bethlehem Road	Jerusalem	345	281	100%	V
Bar Kochva	Tiberias	720	636	92%	V
King David (Complex 3)	Lod	371	281	92%	V
Shmuel Sharira St.	Rishon LeZion	205	141	90%	V
Culture Hall Towers, Rishon LeZion	Rishon LeZion	700	531	90%	V
HaRe'aya 84-88	Ramat Gan	90	60	87%	V
Danin	Bat Yam	340	248	87%	V
Kiryat Bialik	Kiryat Bialik	1,732	1,445	86%	V
Margolin Complex (3)	Ness Ziona	868	588	86%	V
King David (Complex 4)	Lod	561	385	86%	V
Sold Complex	Hod HaSharon	152	104	85%	V
HaMa'apilim 61-63	Holon	220	156	85%	V
HaAtzmaut Jerusalem	Bat Yam	681	473	85%	V
HaTotchanim	Holon	258	168	85%	V

Project Name	Project Location	Total housing units in project (1)	No. of company units in project (2)	Landowner signatures rate	Reaching Qualified Majority
Shmuel Sharira 2	Rishon LeZion	205	141	84%	V
Smilansky 29-31 Netanya	Netanya	104	73	84%	V
Sheinkin 37-41 Katzenelson 102	Givatayim	300	184	84%	V
Etzion Pardes Hanna (3)	Pardes Hanna	950	672	82%	V
HaMa'apilim 12-22	Holon	213	152	82%	V
Kiryat Eliezer Complex 13	Haifa	929	713	82%	V
HaShomron	Holon	182	130	81%	V
Yoseftal, Lod (Complex Y)	Lod	575	431	81%	V
Ben Gurion	Even Yehuda	364	250	80%	V
Kugel - Complex 8	Holon	332	247	80%	V
Mazeh-Kugel, Holon	Holon	165	125	80%	V
Tanin, JNF and Katzenelson	Bat Yam	588	424	80%	V
Wolfson 1-7	Rishon LeZion	225	161	80%	V
King Solomon	Lod	271	199	79%	V
Bruria Complex	Jerusalem	202	146	78%	V
HaRe'aya - Lev HaZahav	Ramat Gan	127	89	77%	V
Rambam 32-40	Beer Sheba	180	146	77%	V
Pinsker	Petah Tikva	382	292	76%	V
Rothschild	Bat Yam	280	208	76%	V
HaHistadrut, HaTayasim North (3)	Ness Ziona	234	162	76%	V
Yehud Katzenelson 19-20	Yehud - Monoson	165	117	75%	V
Sold, PICA and Caspi	Hadera	240	192	75%	V
Megadim 10-16	Ramat Gan	322	220	75%	V
Rubinstein (3)	Jaffa	1,000	666	75%	V
Kiryat Eliezer Complex 27	Haifa	736	566	74%	V
Sokolov Complex 68-70	Ramat HaSharon	115	91	74%	V

Project Name	Project Location	Total housing units in project (1)	No. of company units in project (2)	Landowner signatures rate	Reaching Qualified Majority	Do tenants have a contractual right to cancel the agreement? (*)
Marwani	Netanya	547	403	74%	V
Jerusalem Blvd 44-46 and Herzog 6	Bat Yam	308	214	74%	V
4-8 Achimeir St., Ramat Aviv G (4)	Tel Aviv	356	212	73%	V	V
Weizman 2-22, Yehud	Yehud - Monoson	548	402	73%	V
Kugel Complex 7 (3)	Holon	268	199	72%	V
HeChatzav	Holon	158	122	72%	V
HaMarganit Complex	Nesher	800	648	72%	V
Eli Cohen Ofakim	Ofakim	952	779	72%	V
47-51 Deganya Blvd Kiryat Haim	Haifa	407	311	71%	V

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Project Name	Project Location	Total Housing Units in Project (1)	Number of Company Housing Units in Project (2)	Landowner Signature Rate	Reached Qualified Majority
Jerusalem Blvd, Bethlehem and Shechem	Beer Sheva	780	669	71%	V
Eli Cohen, Nahariya	Nahariya	1,300	1,108	71%	V
Ganei Livne	Tel Aviv	1,080	750	71%	V
HaHistadrut	Ashkelon	630	550	71%	V
Degania 35-45 Kiryat Haim	Haifa	476	364	71%	V
Tzofit Complex	Eilat	710	582	71%	V
HaBanim, Afula	Afula	348	288	70%	V
Steier Complex	Tel Aviv	470	294	70%	V
Herzog and Daniel St	Bat Yam	340	236	70%	V
Yoseftal Golani	Hadera	422	358	70%	V
Kiryat Eliezer 9	Haifa	413	317	69%	V
HaHashmonaim 40-62	Kiryat Motzkin	1,180	944	69%	V
Complex 26, Kiryat Eliezer	Haifa	620	476	69%	V
Degania 21-27 Kiryat Haim	Haifa	561	429	69%	V
Complex 10, Kiryat Eliezer	Haifa	456	350	69%	V
Ofakim, Nesher	Nesher	1,400	1,146	69%	V
HaGibor HaAlmoni Negba	Tel Aviv	208	128	69%	V
HaGibor HaAlmoni 6	Tel Aviv	42	26	69%	V
Rambam 20-28 and Simhoni 16-22	Beer Sheva	720	584	69%	V
Sokolov 64 Ramat HaSharon	Ramat HaSharon	77	61	68%	V
Weizmann HaLiya	Givatayim	216	153	68%	V
Kugel - South Complex	Holon	245	171	68%	V
Sokolov 66 Complex	Ramat HaSharon	76	60	68%	V
Katznelson 104-106	Givatayim	166	97	68%	V
Brenner 14-18	Tiberias	457	409	67%	V
HaGolan 1-7	Nof HaGalil	1,004	848	67%	V
David Nadav - Kiryat Moshe	Rehovot	42	18	67%	V
HaTurmus	Rishon LeZion	288	216	67%	V
HaHashmonaim	Bat Yam	236	172	67%	V

Project Name	Project Location	Total Housing Units in Project (1)	Number of Company Housing Units in Project (2)	Landowner Signature Rate	Reached Qualified Majority
Kaminska 12-20	Tel Aviv	100	60	67%	✓
Krinitzi	Ramat Gan	294	205	67%	✓
Ben Gurion 59-65 odd	Bat Yam	470	310	67%	✓
Shenkin 50-64	Givatayim	330	203	67%	✓
Berman Houses Complex	Eilat	316	280	67%	✓
HaTelamim	Ramat HaSharon	500	250	N/R	N/R
Total		37,946	28,696

Details regarding additional projects of the company that are in various planning stages and the company has not yet reached the required majority (below 67%)

Project Name	Project Location	Total Housing Units in Project (1)	Number of Company Housing Units in Project (2)	Landowner Signature Rate
LaMerhav 80-83, Pardes Hanna	Pardes Hanna	144	113	65%
HaHashmonaim Holon	Holon	280	210	63%
Netanya Stop Street	Netanya	545	408	62%
Brenner 22-26, Giborim 2-12	Tiberias	1,440	1,280	61%
Uziel 25-27 Bat Yam	Bat Yam	380	284	61%
HaBastolia and Yetziat Europa	Haifa	679	523	60%
Weizmann, Gedera	Gedera	240	200	60%
Zanvail 16, 18 and Sheshet HaYamim 34	Netanya	200	138	60%
Yoseftal Netanya	Netanya	448	336	60%
Malasai, Sprinzak	Haifa	495	380	59%
"Neve Israeli" Complex	Herzliya	429	297	57%

21 -

Project Name	Project Location	Total Housing Units in Project (1)	Number of Company Housing Units in Project (2)	Landowner Signature Rate
Rothschild Solomon Complex	Petah Tikva	330	230	56%
LaMerhav 525-530	Pardes Hanna	380	296	56%
Rabbi Maimon, Neve Shaanan HaGalil	Haifa	251	192	54%
Rabbi Houri	Ofakim	878	731	53%
Total		30,718	24,715

Project Name	Project Location	Total Housing Units in Project (1)	Number of Company Housing Units in Project (2)	Landowner Signature Rate
Yoseftal, Ashdod	Ashdod	705	507	51%
Ben Zvi and HaGilad	Nahariya	248	200	51%
HaGiva Narkisim	Nof HaGalil	600	508	50%
Bikurim, HaAsif and HaGoren- Neve Chen	Kiryat Ata	1,920	1,536	50%
Yedidya	Tel Aviv	2,500	2,035	49%
Amichai, Ramla	Ramla	600	480	49%
Tchernichovsky and Ibn Gabirol	Beer Sheva	870	725	49%
Maale HaBanim	Maalot Tarshiha	1,800	1,568	47%
Malal, Hibat Zion	Ramat Gan	150	101	42%
HaOren 5-21	Haifa	968	753	42%
Kiryat Eliezer 14	Haifa	350	270	35%
Stop Motzkin	Netanya	448	336	33%
Yoseftal- Seven Species Complex	Dimona	2,500	2,132	27%
The Sixteenth and Mishteret HaYishuvim	Jerusalem	304	228	27%
Herzl and Rabbi Weinrob	Tirat Carmel	264	212	25%
Ravina 11	Tel Aviv	80	46	25%
Menachem Begin, Hatzor	Hatzor	2,200	1,851	22%
Edmond Peleg	Haifa	306	241	20%
Herzl 72-78, Weizmann 4 Kiryat Ekron	Kiryat Ekron	160	88	Not yet started
HaOren Complex	Beer Sheva	155	113	Not yet started
HaArbel odd 3-9	Nof HaGalil	460	389	Not yet started
Herzog, Akko	Akko	400	320	Not yet started
Yoseftal Gate	Bat Yam	560	362	Not yet started
HaGibor HaAlmoni 4	Tel Aviv	60	36	Not yet started
Saadia Gaon 8-14	Holon	80	56	Not yet started
Rivka 8-10	Jerusalem	55	37	Not yet started
Megadim Complex, Carmiel	Carmiel	1,276	1,056	Not yet started
Holzberg, Kramer and Schatz	Ramla	830	638	Not yet started
David Bar Rav Hai St Project	Haifa	275	205	Not yet started
Herzl 53-57 odd, HaMeyasdim 11 and Wolfson 17-21 odd	Nahariya	450	378	Not yet started
Mitzpe Naftali Metula	Metula	325	255	Not yet started
Shaul HaMelech 82-100, David Remez 7-17, Avitaz Yehoshua 3-12 even	Beit Shean	1,700	1,435	Not yet started
Total		30,718	24,715

(1) Total units the company expects to approve, in accordance with the planning policy of the various committees.
(2) Net of landowners.
(3) Project with partners.
(4) 30 units designated for rent.
(*) For these projects, tenants have a cause for cancellation as two years have passed and the company has not yet reached the required majority.

Details regarding additional Megiddo projects in various planning stages where marketing has not yet begun

Project Name	Project Location	Total Missing (Unit in Project)	Number of Cleaning Missing (Unit in Project)	Comments/ Signature Date
Arad (*)	Arad	360	360	N/R
Jisr az-Zarqa	Jisr az-Zarqa	154	154	N/R
Beit Dagan	Beit Dagan	120	120	N/R
Beer Yaakov	Beer Yaakov	183	183	N/R
Kfar Saba	Kfar Saba	146	146	N/R
Total		963	963

(*) Number of units expected to increase to approximately 1,142 units after approval of the new Plan (TABA).

2.6.1. Additional Information

(A) Margolin Complex. Nes Ziona

For details see section 2.7.1(A) of Chapter B (Board of Directors' Report) for the 2025 Report. On May 7, 2026, the District Planning and Construction Committee for the Central District (hereinafter - "the Committee") approved the company's plan for the project for validation. The project includes evacuation of 264 existing units and 3 stores, and construction of 868 new units, of which 16 units were allocated to the ILA, as well as 2,000 square meters of commercial space, and public areas.

(B) Even Yehuda

For details see section 2.7.1(B) of Chapter B (Board of Directors' Report) for the 2025 Report.

For details see section 2.7.1(C) of Chapter B (Board of Directors' Report) for the 2025 Report.

(D) Kiryat Eliezer 13 Complex

For details see section 2.7.1(D) of Chapter B (Board of Directors' Report) for the 2025 Report.

(E) Allenby 104-112. Allenby 108a-112a. HaPartizanim 1-7. Dror 24-32 Streets. Haifa

For details see section 2.7.1(E) of Chapter B (Board of Directors' Report) for the 2025 Report.

(F) Jerusalem Blvd 44-46. Bat Yam

For details see section 2.7.1(F) of Chapter B (Board of Directors' Report) for the 2025 Report.

(G) Derech LaMerhav. Pardes Hanna

For details see section 2.7.1(G) of Chapter B (Board of Directors' Report) for the 2025 Report.

(H) Lod Shlomo HaMelech Street

For details see section 2.7.1(H) of Chapter B (Board of Directors' Report) for the 2025 Report.

(I) Ahimeir 4-8 Ramat Aviv G St. Tel Aviv-Yafo

For details see section 2.7.1(I) of Chapter B (Board of Directors' Report) for the 2025 Report. In the project there is a legal dispute between the company and the tenants' representatives that will be decided in legal instances.

(J) Rubinstein Complex. Tel Aviv-Yafo

For details see section 2.7.1(J) of Chapter B (Board of Directors' Report) for the 2025 Report.

(K) Degania 47-51. Haifa

For details see section 2.7.1(K) of Chapter B (Board of Directors' Report) for the 2025 Report.

(L) Hebron Rd and Bethlehem Rd Complex. Jerusalem

For details see section 2.7.1(L) of Chapter B (Board of Directors' Report) for the 2025 Report.

(M) Megadim Corner of Ben Gurion St. Ramat Gan

For details see section 2.7.1(M) of Chapter B (Board of Directors' Report) for the 2025 Report.

(N) David HaMelech 3-7 and Rachel Alter 11-19 Streets. Lod

For details see section 2.7.1(N) of Chapter B (Board of Directors' Report) for the 2025 Report.

(O) Katznelson 104 106 St. Givatayim

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For details see section 2.7.1(O) of Chapter B (Board of Directors' Report) for the 2025 Report.

(P) Ben Zvi 9-17. HaGilad 1. Nahariya

For details see section 2.7.1(P) of Chapter B (Board of Directors' Report) for the 2025 Report.

(Q) Weizmann 12. 14. 16 St. Gedera

For details see section 2.7.1(Q) of Chapter B (Board of Directors' Report) for the 2025 Report.

(R) HaOren 5-21 (odd) St. Haifa

For details see section 2.7.1(R) of Chapter B (Board of Directors' Report) for the 2025 Report.

(S) Tanin. KKL and Katznelson Streets. Bat Yam

For details see section 2.7.1(S) of Chapter B (Board of Directors' Report) for the 2025 Report.

(T) Tzofit Complex. Eilat

For details see section 2.7.1(T) of Chapter B (Board of Directors' Report) for the 2025 Report.

(U) HaShisha Asar 3-17 and Mishteret HaYishuvim 12-24 Streets. Jerusalem

For details see section 2.7.1(U) of Chapter B (Board of Directors' Report) for the 2025 Report.

(V) HaHashmonaim 40-62 St. Kiryat Motzkin

For details see section 2.7.1(V) of Chapter B (Board of Directors' Report) for the 2025 Report.

(W) Jerusalem Blvd. Bethlehem and Shechem Streets. Beer Sheva

For details see section 2.7.1(W) of Chapter B (Board of Directors' Report) for the 2025 Report.

(X) Herzl and Rabbi Weinrob Streets. Tirat Carmel

For details see section 2.7.1(X) of Chapter B (Board of Directors' Report) for the 2025 Report.

(Y) HaBastalia and Yetziat Europa Streets. Haifa

For details see section 2.7.1(Y) of Chapter B (Board of Directors' Report) for the 2025 Report.

(Z) ILA Tender in Arad

For details see section 2.7.1(Z) of Chapter B (Board of Directors' Report) for the 2025 Report.

(AA) Rambam 32-40 St. Beer Sheva

For details see section 2.7.1(AA) of Chapter B (Board of Directors' Report) for the 2025 Report.

(AB) ILA Tender in Kiryat Ekron

For details see section 2.7.1(AB) of Chapter B (Board of Directors' Report) for the 2025 Report.

(AC) Bikurim. HaAsif and HaGoren Streets. Kiryat Ata

For details see section 2.7.1(AC) of Chapter B (Board of Directors' Report) for the 2025 Report.

(AD) Herzog 18-26 St. Akko

For details see section 2.7.1(AD) of Chapter B (Board of Directors' Report) for the 2025 Report.

(AE) Maze and Kugel Streets. Holon

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For details, see section 2.7.1(31) of Chapter B (Board of Directors' Report) for the 2025 report.

(32) Tel Chai, Livorno streets, and the HaEmek building, Bat Yam

For details, see section 2.7.1(32) of Chapter B (Board of Directors' Report) for the 2025 report.

(33) HaMarganit and IDF streets, Nesher

For details, see section 2.7.1(33) of Chapter B (Board of Directors' Report) for the 2025 report.

(34) Ma'ale HaBanim street, Ma'alot

For details, see section 2.7.1(34) of Chapter B (Board of Directors' Report) for the 2025 report.

(35) Marseille street, Haifa

For details, see section 2.7.1(35) of Chapter B (Board of Directors' Report) for the 2025 report.

(36) Saadia Gaon street, Holon

For details, see section 2.7.1(36) of Chapter B (Board of Directors' Report) for the 2025 report.

(37) Alter street, Lod

For details, see section 2.7.1(37) of Chapter B (Board of Directors' Report) for the 2025 report.

(38) Mitzpe Naftali and HaTziv'onim streets, Metula

For details, see section 2.7.1(38) of Chapter B (Board of Directors' Report) for the 2025 report.

(39) HaTomer, Wolfson and Jabotinsky streets, Rishon LeZion

For details, see section 2.7.1(39) of Chapter B (Board of Directors' Report) for the 2025 report.

(40) Menachem Begin street in Hatzor

For details, see section 2.7.1(40) of Chapter B (Board of Directors' Report) for the 2025 report.

(41) Henrietta Szold, PICA and Kaspi streets in Hadera

For details, see section 2.7.1(41) of Chapter B (Board of Directors' Report) for the 2025 report.

(42) Yoseftal complex in Dimona

For details, see section 2.7.1(42) of Chapter B (Board of Directors' Report) for the 2025 report.

(43) Kaminska street, Tel Aviv

For details, see section 2.7.1(43) of Chapter B (Board of Directors' Report) for the 2025 report.

(44) Simcha Holtzberg, Aryeh Kramer and Gershon Shatz streets in the city of Ramla

For details, see section 2.7.1(44) of Chapter B (Board of Directors' Report) for the 2025 report.

(45) Rambam and Shimchoni streets in Beer Sheva

For details, see section 2.7.1(45) of Chapter B (Board of Directors' Report) for the 2025 report.

(46) Zanvill 16, 18 and Sheshet HaYamim 34 streets, Netanya

For details, see section 2.7.1(46) of Chapter B (Board of Directors' Report) for the 2025 report.

(47) Bar Kochba Project – Bar Kochba 13-25 (odd numbers), Tiberias

25 -

For details, see section 2.7.1(47) of Chapter B (Board of Directors' Report) for the 2025 report.

(48) Wolfson 1.3.5 street. Rishon LeZion

For details, see section 2.7.1(48) of Chapter B (Board of Directors' Report) for the 2025 report.

(49) Tchernichovsky 4-14 (even) and Ibn Gabirol 3.5.7.11 streets. Beer Sheva

For details, see section 2.7.1(49) of Chapter B (Board of Directors' Report) for the 2025 report.

(50) Smilansky 29-31 street. Netanya

For details, see section 2.7.1(50) of Chapter B (Board of Directors' Report) for the 2025 report.

(51) Weizmann 2-22 Project. Yehud Monosson

For details, see section 2.7.1(51) of Chapter B (Board of Directors' Report) for the 2025 report.

(52) Dov Hoz Project. Holon

For details, see section 2.7.1(52) of Chapter B (Board of Directors' Report) for the 2025 report.

(53) Herzl and Weizmann streets. Kiryat Ekron

For details, see section 2.7.1(53) of Chapter B (Board of Directors' Report) for the 2025 report.

(54) David Bar Hai street. Haifa

For details, see section 2.7.1(54) of Chapter B (Board of Directors' Report) for the 2025 report.

(55) "Shrira" Project. Rishon LeZion

For details, see section 2.7.1(55) of Chapter B (Board of Directors' Report) for the 2025 report.

(56) Wolfson and Tomer streets. Rishon LeZion

For details, see section 2.7.1(56) of Chapter B (Board of Directors' Report) for the 2025 report.

(57) Herzl. HaMeyasdim and Wolfson streets. Nahariya

For details, see section 2.7.1(57) of Chapter B (Board of Directors' Report) for the 2025 report.

(58) Ben Gurion 59-65 (odd) street. Bat Yam

On March 27, 2026, the company announced that it was selected by the rights holders to carry out an urban renewal project at Ben Gurion 63, 65 street in Bat Yam (hereinafter in this section: "the Project"). The Project joins the project at Ben Gurion 59, 61, 61A street adjacent to the Project. The expanded project includes the evacuation of 160 existing units and the construction of approximately 470 new units as well as commercial areas and hotel areas on the Bat Yam promenade, first line to the water.

(59) Neve Israel Project. Herzliya

On April 20, 2026, the company announced that the local planning and construction committee for the Herzliya-Kfar Shmaryahu area (an independent committee with authority to finally approve the company's plan) approved for deposit under conditions the company's plan for the company's Bar Kochba complex project located on HaTzanchanim, Bar Kochba, Alroy and Meron streets in the Neve Israel neighborhood of Herzliya (hereinafter in this section: "the Project").

The Project includes the evacuation of 132 existing units in 13 existing buildings, and the construction of 492 new units, of which approximately 50 units are for rent, in 7 buildings of 10-15 stories, as well as commercial areas, open spaces and public buildings. The company estimates it will begin marketing and executing the project towards the end of 2027.

Below are details regarding investment real estate under construction (commercial centers) of the company in Israel as of March 31, 2026

Investment property under construction/ planning	Location	Spin for marketing	Expected construction costs	Estimated land value by company appraiser	Costs invested by balance sheet date (2)	Cost (including investment real estate valuation increase) in company books	Expected construction start date	Expected construction end date	EXPECTED ANNUAL INCOME AT FULL OCCUPANCY
Aura City	Hadera	3,674	32,013	-	42,139	73,615	Started	Completed	4,952
HaOren Project	Kiryat Ono	1,200	12,358	-	13,928	35,685	Started	2026	3,888
ONLY Givatayim	Givatayim	480	5,118	-	2,481	12,702	Started	2027	1,728
Aura Ramat Hasharon Phase B	Ramat Hasharon	2,052	21,399	-	13,050	56,754	Started	2027	4,925
Aura EMPIRE	Ramat Gan	300	3,126	-	1,209	5,748	Started	2027	720
Aura Pivko (Company share 80%) (1)	Bat Yam	370	2,497	-	2,349	6,817	Started	2027	622
Hadera Rasco	Hadera	6,325	65,469	-	9,168	30,145	Started	2030	5,184
Linky Yehud	Yehud - Monosson	1,680	17,476	-	6,156	25,378	Started	2028	2,822
Imagine Givatayim Complex T	Givatayim	960	13,456	-	6,746	32,313	Started	2029	3,456
Ben Zvi - Shmork	Netanya	14,310	142,162	-	1,511	58,138	Started	2030	17,966
Kfar Yona	Kfar Yona	374	3,974	-	3,760	11,194	Started	Completed	706
Ma'or 3 (Company share (1) (81%)	Lod	5,451	46,883	-	2,413	28,383	Started	2030	5,639
S.H.L-Commerce, Employment and Residential for rent	Lod	29,755	298,595	-	52,034	134,486	2026	2030	22,149

Investment property under construction/planning	Location	Sign for marketing	Expected construction costs	Estimated land value by company appraiser	Costs invested to balance sheet date (2)	Cost (including investment real estate valuation increase) in company books	Expected construction start date	Expected construction end date	EXPECTED ANNUAL INCOME AT FULL OCCUPANCY
Officer Silver Complex (1)	Jerusalem	2,040	20,266	78,356	327	327	2026	2029	6,610
Dafna Complex	Tel Aviv	300	2,980	13,268	207	207	2026	2029	1,080
Weizmann 48-52	Yehud	660	6,557	13,696	53	53	2026	2029	1,267
HaTotchanim	Holon	4,853	48,207	42,246	363	363	2026	2029	4,948
HaChatzav	Holon	864	8,583	16,542	69	69	2026	2029	1,555
Bnei Ayish Lots 2012-2014	Bnei Ayish	1,126	11,185	19,304	818	10,050	2026	2028	2,026
Bnei Ayish Lots 2053-2054	Bnei Ayish	919	9,128	15,754	2,295	10,650	2026	2028	1,653
Ben Gurion	Even Yehuda	720	7,153	13,065	22	22	2027	2030	1,296
Margolin Complex (Company share 90%) (1)	Ness Ziona	2,040	18,834	38,525	73	73	2027	2030	3,917
Bethlehem Road	Jerusalem	5,378	53,422	41,444	808	808	2027	2031	3,445
Housing for rent (4)	Ofakim	9,150	142,784	-	74,059	68,765	Started	2027	3,683
"Dira LeHaskir" Commerce	Ofakim	3,750	24,263	-	4,341	5,857	Started	2027	2,406
Lot 803	Ofakim	9,700	To be determined	10,000	9,757	10,000	To be determined	-	-
Arad	L.R.	TO BE DETERMINED	TO BE DETERMINED	123,577	89,957	133,500	TO BE DETERMINED	-	-
Total		108,431	1,017,888	425,777	340,093	752,102			108,643

(1) Project with partners, expected annual income is for the company's share only.

(2) Invested costs include costs for providing construction services (combination) to evacuated residents attributed to the investment real estate component.

(3) The marketing areas mentioned above include commercial, employment, and long-term rental housing areas.

(4) Total 138 units, of which up to 40% can be sold to investors.

The information included in sections 2 and 3 above regarding expected gross profit volumes in projects, expected annual income in projects, land value, construction costs, regarding the number of housing units to be established and regarding expectations for the start date of marketing, execution and completion of projects, regarding their continuity of establishment, regarding the volume of units to be sold, regarding the urban building plan for change of use and regarding the possibility of expanding projects is information based on evaluations, estimates and economic calculations made by the company, considering: (a) current sale prices; (b) construction costs prepared based on work calculations; (c) the projected sales rate based on the company's experience; (d) dates for receiving building permits; (e) the progress rate of the project's construction; (f) signing individual contracts with each of the tenants in evacuation-reconstruction projects and approval of a suitable urban building plan and (g) availability of bank and non-bank credit. The company's forecasts may not materialize, inter alia, if material adverse changes occur in the state of the economy and/or.

27 -

In the real estate market situation and/or in the residential housing market situation, including in residential rent prices and/or in apartment sale prices compared to the prices that served as a basis for the forecast and/or if material adverse changes occur in the costs of the projects and/or if material adverse changes occur in the execution costs of the projects in raw material prices and/or in their financing and/or in construction input prices and/or in the availability of manpower and/or if the sales rate of apartments in the projects falls significantly below the sales rate that served as a basis for predicting the information as mentioned and/or to the extent that delays or postponements occur in the planning procedures and/or to the extent that transactions subject of the projects are not completed and/or any of the risk factors to which the company is exposed as detailed in section 34 of the chapter Description of the Corporation's Business included in the 2025 report occur.

3.1.1 Disclosures regarding the company's activity in the field of entrepreneurial real estate

For information about very material projects according to the legislative proposal for amending the Securities Regulations regarding activity in the field of entrepreneurial real estate in its updated version published in February 2016 by the Securities Authority (hereinafter: "Entrepreneurial Real Estate Legislative Proposal") - see section 15 of Chapter A (Description of the Corporation's Business) of the 2025 report as well as Appendix A to this report below.

Additional material events during the reporting period and thereafter

The following is a detail of material events that occurred during the reporting period as well as until the date of publication of the report, in addition to the events detailed above:

3.2 Rating of the company and BONDS

For details regarding the rating of the company and the BONDS in circulation, see section 1.8.3 of Part B (Board of Directors' Report) of the 2025 report as well as section 1.1.5 above.

3.3 Dividend distribution and miscellaneous

4.2.1 For details regarding dividend distribution and miscellaneous, see section 4 of Chapter A (Description of the Corporation's Business) of the 2025 report.

4.2.2 In April 2026, the company distributed a dividend in the amount of 30 million NIS. The dividend was distributed out of the company's profits eligible for distribution, in accordance with the consolidated annual financial reports of the company for the period ended December 31, 2025, and after the company's board of directors examined the company's compliance with the profit test and the solvency test, and confirmed that the distribution does not impair the company's ability to meet its obligations as a whole and in the company's existing format. The balance of profits available for distribution at the date of approval of the distribution stood at a total of approximately 729,181 thousand NIS, and after the said distribution, a total of approximately 699,181 thousand NIS.

3.4 Issuance of BONDS

For details regarding the issuance of BONDS during the reporting period, see section 5.1 below as well as section 6 of Chapter B (Board of Directors' Report) of the 2025 report.

3.5 Investments in company capital

For details regarding investments in company capital and transactions in its shares, see section 3 of Chapter A (Description of the Corporation's Business) of the 2025 report.

3.6 Legal proceedings

For information about legal proceedings in which the company is involved, see Note 15C to the consolidated financial reports as of December 31, 2025, which were attached as Chapter C (Financial Reports) to the 2025 report.

4. Qualitative reporting regarding exposure to cyber risks, market risks and their management

4.1 Person responsible for market risk management in the corporation

The Economics Manager at the company, Mr. Roy Ravid, who reports to the company's CFO, is responsible for market risk management at the company. Mr. Roy Ravid holds an MBA specializing in finance and has extensive professional experience in the company's areas of activity.

4.2 Description of market risks

For details regarding the description of market risks, see section 34 of Chapter A (Description of the Corporation's Business) of the 2025 report.

4.2.1 Exposure to the construction input index

Generally, construction contracts with contractors executing the company's projects are linked to the construction input index, and therefore a change in this index may affect the company's financial results. At the same time, the company protects itself against changes in this index on

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by entering into sales contracts with its customers, most of which are linked to the construction input index. It should be noted that as of July 2022, linkage in such sales contracts was limited to up to 40% of the sales price. Since the costs of the performing contractors generally constitute about 50% of the project's income, and in light of the aforementioned protection in the sales contracts, the impact of the increase in the residential construction input index on the company's activities is not very material. In the three-month period ended March 31, 2026, there was an increase in the construction input index at a rate of approximately 0.5% compared to an increase of approximately 3.4% in the corresponding period last year. In the 12-month period ended December 31, 2025, there was an increase in the construction input index at a rate of approximately 5.1%.

4.2.2. Exposure to changes in the Consumer Price Index (CPI)

In general, the company is not directly exposed to changes in the Consumer Price Index because its income, assets, and liabilities, including the BONDS issued by the company, are not linked to the CPI. This is with the exception of BONDS (Series 14), which were first issued in February 2023, which are linked to the CPI, and as such the company is also exposed to the increase in the CPI. In total, the company raised 300,000,000 NIS in BONDS (Series 14), including three series expansions in July 2023, November 2023, and April 2024. The company estimates that the changes in the index compared to the interest differences in unlinked BONDS reflect a risk that is not material to the company's overall business.

4.2.3. Exposure to changes in the Euro exchange rate

Changes in the Euro exchange rate have an effect on the company's results and its equity as a result of the translation of the financial reports of subsidiaries reporting in Euro. In the three-month period ended March 31, 2026, there was a decrease in the Euro exchange rate at a rate of approximately 2.92% compared to an increase of approximately 5.94% in the corresponding period last year. In the 12-month period ended December 31, 2025, there was a decrease in the Euro exchange rate at a rate of approximately 1.34%.

4.2.4. Exposure to changes in interest rates in the economy

As part of its business activities, the company is exposed to increases in the interest rate in the economy, which affect, among other things, the interest costs on bank loans taken by the company, as well as indirectly the increase in the cost of mortgages for apartment buyers, which affects the general demand for apartments. For details regarding the impact of interest rates in the economy on the construction industry and the company, see section 6.6 of Part A (Description of the Corporation's Business) of the 2025 Report.

4.2.5. General

The company estimates that an increase in the bank of Israel interest and in the construction input index may lead to an increase in project establishment costs, and as a result to a erosion in profitability. The continuation of the high interest rate trend resulting from the increase in inflation may lead to a slowdown in economic activity and a recession, which may lead to a decrease in demand for housing units and consequently to a hit to the increase in property value, and because of this to the results of the company's operations.

Furthermore, the impact of the increase in the Consumer Price Index is not directly material to the company's business results, but in a long-term view, the increase in the CPI may cause an increase in construction and input prices, and may decrease the company's profitability in future projects.

Most of the company's activity is in the field of urban renewal where financing for land is not required, compared to regular projects where land is purchased using bank financing which is directly affected by the interest rate increase. In these projects, the land is not purchased with money and interest costs are generated, if at all, only in some of the construction stages of the projects, and are significantly lower relative to regular projects where land is purchased in cash. Despite this, during the construction period of projects, bank credit is usually taken whose cost is affected by the interest rate. The interest in projects under execution is not recorded in the cost of sales but in the financing expenses, and therefore the financial debt-to-CAP ratio covenant may be affected as a result of the interest rate increase. To deal with the aforementioned interest rate increase, the company took several steps, including increasing the company's capital through the issuance of shares and warrants, pre-sale campaigns in projects that stream early receipts to the company, campaigns to encourage apartment buyers to advance payments on account of the apartment they purchased, and moving the credit linkage base in some of the BONDS series to fixed CPI-linked credit.

Below are the data regarding changes in indices and interest during the years:

	2024	2025	1-3/2026
Consumer Price Index increase rate	3.2%	2.6%	0.3%
bank of Israel interest	4.5%	4.25%	4%
Residential construction input index increase rate	2.9%	5.1%	0.5%

Below are data regarding the effects of an increase in the Consumer Price Index and the bank of Israel interest on the company's financing expenses, based on the data of the company's financial reports as of March 31, 2026:

Increase rate in the Consumer Price Index	The growth in financing expenses in annual terms (Amounts in thousands of NIS)
1%	2,608
2%	5,216

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Increase rate in the bank of Israel interest	The growth in financing expenses in annual terms (Amounts in thousands of NIS)
0.1%	2,479
0.2%	4,958

It should be emphasized that the company's assessments above, including the references appearing in this section regarding the company's assessments of future developments in the economic environment, as well as regarding possible implications of these developments on its activities, is forward-looking information, as defined in the Securities Law. Forward-looking information is uncertain information about the future, including a forecast, assessment, estimate, or other information relating to a future event or matter whose realization is uncertain and/or not under the company's control. The forward-looking information included in this report is based on information or assessments existing in the company as of the date of this report.

Additional risks arising from the company's business environment

For a description of the company's business environment, see section 6 of Part A (Description of the Corporation's Business) of the 2025 Report. The company is exposed to changes in apartment prices in Israel and a decrease or increase in apartment prices will also have an effect on its operating results, as well as to changes in the mortgage market which may affect the demand for apartments.

4.3.1 Description of company policy in managing market risks

The company's policy is to act to reduce risks and exposures, mainly economic ones, through operational and financial actions, as much as possible, including as follows: Matching linkage bases - The company acts to create a match as much as possible and in accordance with market conditions between the linkage bases of its engagements and the linkage base of income in the relevant projects.

Matching realization dates - The company acts to create a match as much as possible and in accordance with market conditions between the repayment dates of the loans and the expected repayment rate from the project for which the loan was received.

4.3.2 Monitoring measures and policy implementation

The company's management ensures ongoing reporting and monitoring of the credit policy, investments, market risk management, and the execution of its instructions and meets as necessary.

4.3.3 Linkage bases report and sensitivity analyses

See Note 23C, D. to Part C (Financial Reports) of the 2025 Report.

4.3.4 Description of cyber risks and their management

As part of its operations, the company maintains various records, among others of housing unit buyers and potential buyers, in addition to information regarding the company's suppliers, collection systems, payments, and the company's accounting. Information management is performed through various software and computer systems. The company acted with the assistance of its consultants to build a suitable protection array against cyberattack risks and also to maintain a recovery capability within a reasonable timeframe in the event of such an attack.

4.3.5 Financial policy

In 2021, the company's board of directors approved the adoption of a financial policy. The financial policy was determined taking into account market conditions, and its purpose is to create certain protections against market exposures. Among other things, the dividend distribution policy adopted by the board of directors in 2018 was anchored in the financial policy, according to which the company will distribute each year up to 25% of the annual distributable net profit of the company (excluding revaluation gains) and from its sources only; a strategy for asset acquisitions and realizations was established; liquidity and leverage thresholds were set; and thresholds for the quality of assets and their sales were defined.

5. Details regarding the company's BONDS

Below are details about the BONDS series as of 31.03.2026:

5.1. Raising and redemptions of BONDS during the report period and thereafter

For details regarding the raising and redemptions of BONDS during 2025, see section 6.7 of Part B (Board of Directors' Report) of the 2025 Report.

In January 2026, the company issued a total of 150,000,000 NIS par value of the company's BONDS (Series 19) by way of expanding a traded series in a private placement, at a price of 1.065 NIS for each 1 NIS par value of the BONDS (Series 19). After the completion of the aforementioned private placement, the BONDS series stood at a total of 400,000,000 NIS par value. For details, see the immediate report published by the company on January 4, 2026 (reference number: 2026-01-001121) and the capital status report published by the company on January 6, 2026 (reference number: 2026-01-002267), which are included here by way of reference.

On February 1, 2026, the company partially repaid BONDS (Series 17). For details, see the capital status report published by the company on February 1, 2026 (reference number: 2026-01-011212), whose contents are included here by way of reference.

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On March 31, 2026, the company partially repaid BONDS (Series 16). For details, see the capital status report published by the company on March 31, 2026 (reference number: 2026-01-030289), whose contents are included here by way of reference.

In total, the company repaid during the report period principal and interest payments for the outstanding BONDS in a total amount of approximately 101 million NIS.

5.2. Rating

For details regarding the company's and BONDS' rating, see section 3.2 above.

5.3. The company's obligations to meet financial covenants - as set in the trust deeds

As part of the trust deeds signed in relation to BONDS of the series (16, 17, 18, and 19), the company committed to meeting financial covenants (as defined in the trust deeds), as follows (for the date of the report on the financial position):

Series	Equity (Million NIS)				Financial Debt to Cap Ratio
	Minimum threshold (1) (5)	Minimum threshold (6)	Minimum threshold for dividend distribution (2)	As of 31.03.2026	Financial Debt to Cap ratio (5) (1)	As of 31.03.2026 (4)
16	300	320	335	1,669,508	82%	65.1%
17	400	425	450	1,669,508	78%	65.1%
18	570	595	620	1,669,508	75%	65.1%
19	650	675	700	1,669,508	77.5%	63%

(1) For a period exceeding two consecutive quarters.
(2) It should be noted that in addition, according to and in accordance with the provisions of the relevant deed, there is also a distribution restriction concerning a maximum rate of the net profit.
(3) Minimum threshold set as cause for immediate repayment.
(4) Financial debt, net to Cap ratio, as detailed in the trust deeds of the BONDS.
(5) Minimum threshold set as cause for an increase in the interest rate.

As of March 31, 2026, the company meets all the financial covenants it committed to in relation to all the aforementioned BONDS series.

6. Corporate Governance Aspects

6.1. Further to the company's engagement, including by way of a framework transaction as defined in the Relief Regulations, with the law firm Atrakchi & Co., in accordance with and subject to the conditions described in section 12 of an immediate report published by the company on November 8, 2018 (reference number: 2018-01-101479) (hereinafter in this section: "the Summoning Report"), and as detailed in section 11 (regulation 22) of Part D of the Periodic report for 2018 - additional details about the company, the audit committee and the board of directors confirmed on May 24, 2026, and May 26, 2026, respectively, that the company complied with the instructions set by the general meeting as detailed in the Summoning Report.

6.2. Disclosure regarding the corporation's policy on donations

The company adopted a policy regarding donations allowing the donation of up to 1% of the net profit of the previous year for the benefit of weak populations such as children with cancer, children in distress, and also for disabled IDF veterans. During 2026 and until the date of publication of this report, the company donated a total of 764 thousand NIS.

For further details including the scope of the company's donations for 2025, see section 7.4 in Part B (Board of Directors' Report) of the report for 2025.

6.3. Disclosure relative to directors with accounting and financial expertise

For details regarding directors with accounting and financial expertise, see section 7.5 in Part B (Board of Directors' Report) of the report for 2025.

For additional details regarding such directors, including details regarding the education and experience of the directors, on the basis of which their accounting and financial expertise was determined, see regulation 26 in Part D (Additional Details about the Corporation) of the 2025 Report.

6.4. Disclosure regarding independent directors

For details regarding independent directors, see section 7.6 in Part B (Board of Directors' Report) of the report for 2025.

As of the approval date of the report, four directors from among the company's six board members are independent directors: Mr. Yehonatan Yoel Binyamin (External Director), Prof. Limor Etzioni (External Director), Mr. Moshe Shimoni, and Mr. Yaron Blum.

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6.5. Details regarding the internal auditor of the corporation and the audit plan

In accordance with the recommendation of the audit committee, starting from February 19, 2020, Mr. Yoni Pasternak (hereinafter: "the Internal Auditor") is the internal auditor of the company. The Internal Auditor holds a bachelor's degree in engineering from Fairleigh Dickinson University and an MBA from Tel Aviv University. The Internal Auditor has experience, among other things, in performing control and auditing and in providing consulting to public bodies, private businesses, and non-profits, including in the infrastructure and construction industry.

For further details regarding the internal auditor and the audit plan, see section 7.7 in Part B (Board of Directors' Report) of the 2025 Report.

Yaakov Atrakchi
CEO

Gadi Koren
Chairman of the Board

May 26, 2026
Date

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Appendix A

Information regarding very material projects

1. Imagine Project - Givatayim

Tables 1.1, 1.2 below are presented according to $100\%$ of total revenues and costs and not according to the company's relative share $(70\%)$ as presented in the company's financial reports. For further details regarding the transaction, see Section 15.1 of Chapter A (Description of the Corporation's Business) of the 2025 report.

1.1. Costs invested in the project:

Description of the		Q1 2025	Year 2025	Year 2024	Year 2023
Company space	Cumulative costs for land at the end of the period (*)	59,816	56,790	42,658	-
	Cumulative costs for development, taxes, fees and others	136,650	127,861	45,592	6,338
	Cumulative costs for construction (*)	21,675	17,720	-	-
	Cumulative costs for financing (capitalized)	1,581	1,581	1,581	712
	Total cumulative cost	219,721	203,953	89,831	7,050
	Total cumulative cost as presented in the books	128,774	166,322	88,380	7,050
Key assumptions: poor payment; bad time costs	Costs for land not yet invested (estimate) (*)	84,169	91,485	72,136	101,527
	Costs for development, taxes and fees not yet invested (estimate)	200,986	202,619	327,120	383,574
	Costs for construction not yet invested (estimate) (*)	622,465	653,366	652,868	647,251
	Cumulative costs for financing expected to be capitalized in the future (estimate)	-	-	-	50,260
	Total cost remaining for completion	907,620	947,469	1,052,124	1,182,612
	Engineering completion rate (excluding land) (%)	22%	19%	5%	-
	Expected construction completion date	Q4, 2029	Q4, 2029	Q4, 2029	Q4, 2029

(*) The construction and land costs presented in the table do not include the liability component for providing construction services to the veteran tenants (combination).

1.2. Marketing of the project:

	Year 2026		Year 2025	Year 2024	Year 2023
		Entire Period	Q1
Contracts signed during the current period	Residential units (quantity)	1	1	11	93	-
	Residential units (sqm)	78	78	1,031	8,200	-
	Commercial area (sqm)	-	-	-	-	-
Average price per sqm in contracts signed in the current period (*)	Residential units	38.9	38.9	39.3	38	-
	Commercial spaces	-	-	-	-	-
Cumulative contracts until the end of the period	Residential units (quantity)	105	105	104	93	-
	Residential units (sqm)	9,309	9,309	9,231	8,200	-
	Commercial spaces	-	-	-	-	-
Cumulative average price per sqm in contracts signed until the end of the period (*)	Residential units	38.2	38.2	38.2	38	-
	Commercial spaces	-	-	-	-	-

	Year 2026		Year 2025	Year 2024	Year 2023
		Entire Period	Q1
Marketing rate of the project	Total expected revenues from the entire project (in commercial currency)	1,740,097	1,740,097	1,736,817	1,732,458	-
	Total expected revenues from contracts signed cumulatively (in commercial currency)	375,735	375,735	369,324	325,871	-
	Marketing rate as of the last day of the period (%)	27%	27%	27%	24%	-
Spaces for which contracts have not yet been signed (Company's share)	Residential units (quantity)	279	279	280	291	-
	Residential units (sqm)	32,856	32,856	32,934	34,035	-
	Commercial space (sqm)	-	-	-	-	-
Total cumulative cost (inventory balance) attributed to spaces for which binding contracts have not yet been signed in the statement of financial position		159,641	159,641	150,620	68,075	7,050

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	Year 2026		Year 2025	Year 2024	Year 2023
	Entire Period	Q1
Number of contracts signed from the end of the period until the date of the report (quantity/sqm)	2/ 157	2/ 157	-	-	-
Average price per sqm in contracts signed from the end of the period until the date of the report (*)	36.8	36.8	-	-	-

(*) The average price per sqm is presented net of the financing component.

2. Aura Hadera Project (Rasco)

2.1 Costs invested in the project:

In thousands of NIS		Year 2026 Q1	Year 2025
Costs invested	Cumulative costs for land at the end of the period (*)	6,161	4,919
	Cumulative costs for development, taxes, fees and others	41,253	33,555
	Cumulative costs for construction (*)	13,518	-
	Cumulative costs for financing (capitalized)	1,495	1,029
	Total cumulative cost	62,427	39,503
	Total cumulative cost as presented in the books	163,107	162,308

In thousands of NIS		Year 2020 Q1	Year 2025
Costs not yet invested and completion rate	Costs for land not yet invested (estimate) (*)	45,775	47,157
	Costs for development, taxes and fees not yet invested (estimate)	124,386	127,710
	Costs for construction not yet invested (estimate)	482,995	494,995
	Cumulative costs for financing expected to be capitalized in the future including capitalization of non-specific credit costs (estimate)	-	-
	Total cost remaining for completion	653,157	669,862
	Completion rate [engineering/financial] (excluding land) (%)	25%	21%
	Expected construction completion date	Q2, 2030	Q2, 2030

(*) The construction and land costs presented in the table do not include the liability component for providing construction services to the veteran tenants (combination).

2.2 Marketing of the project:

	Year 2020		Year 2025	Year 2024
		Entire Period			Q1
Contracts signed during the current period	Residential units (quantity)	6	6	31	112
	Residential units (sqm)	474	474	2,772	10,905
	Commercial area (sqm)	-	-	-	-
Average price per sqm in contracts signed in the current period (*)	Residential units	20.8	20.8	20.4	19.8
	Commercial spaces	-	-	-	-
Cumulative contracts until the end of the period	Residential units (quantity)	149	149	143	112
	Residential units (sqm)	14,151	14,151	13,677	10,905
	Commercial spaces	-	-	-	-
Cumulative average price per sqm in contracts signed until the end of the period (*)	Residential units	20	20	20	19.8
	Commercial spaces	-	-	-	-
Marketing rate of the project	Total expected revenues from the entire project (in commercial currency)	971,706	971,706	971,964	801,068
	Total expected revenues from contracts signed cumulatively (in commercial currency)	289,299	289,299	287,914	227,659
	Marketing rate as of the last day of the period (%)	35%	35%	33%	26%
	Residential units (quantity)	281	281	287	318
	Residential units (sqm)	35,045	35,045	35,519	38,291

Spaces for which contracts have not yet been signed (Company's share)	Year 2026		Year 2025	Year 2024
	Entire Period	Q1
Spaces for which contracts have not yet been signed Commercial spaces (sqm)	-	-	-	-
Total cumulative cost (inventory balance) attributed to spaces for which binding contracts have not yet been signed in the statement of financial position	40,795	40,795	26,366	12,175
Number of contracts signed from the end of the period until the date of the report (quantity/sqm)	1 / 75	1 / 75	-	-
Average price per sqm in contracts signed from the end of the period until the date of the report	23.2	23.2	-	-

(*) The average price per sqm is presented net of the financing component.

3. Aura Jerusalem Project (HaKatzin Silver)

3.1 Costs invested in the project:

		Year 2026 Q1	Year 2025
In thousands of NIS
Costs invested	Cumulative costs for land at the end of the period (*)	749	643
	Cumulative costs for development, taxes, fees and others	16,582	15,196
	Cumulative costs for construction (*)	-	-
	Cumulative costs for financing (capitalized)	1,064	862
	Total cumulative cost	18,395	16,701
	Total cumulative cost as presented in the books	18,395	16,701
Costs not yet invested and completion rate	Costs for land not yet invested (estimate) (*)	50,200	50,306
	Costs for development, taxes and fees not yet invested (estimate)	158,718	162,308
	Costs for construction not yet invested (estimate) (*)	750,024	750,024
	Cumulative costs for financing expected to be capitalized in the future (estimate)	1,895	2,154
	Total cost remaining for completion	960,837	964,792
	Engineering completion rate (excluding land) (%)	0%	0%
	Expected construction completion date	Q3, 2031	Q3, 2031

(*) The construction and land costs presented in the table include the liability component for providing construction services to the veteran tenants (combination).

3.2 Marketing of the project:

	Year 2026		Year 2025
		Entire Period		Q1
Contracts signed during the current period	Residential units (quantity)	17	17	15
	Residential units (sqm)	1,374	1,374	1,110
	Commercial space (sqm)	-	-	-
Average price per sqm in contracts signed during the current period (*)	Residential units	33.8	33.8	35.4
	Commercial spaces	-	-	-
Cumulative contracts until the end of the period	Residential units (quantity)	32	32	15
	Residential units (sqm)	2,484	2,484	1,110
	Commercial spaces	-	-	-
Cumulative average price per sqm in contracts signed until the end of the period (*)	Residential units	34.5	34.5	35.4
	Commercial spaces	-	-	-
Marketing rate of the project	Total expected revenues from the entire project (in commercial currency)	1,288,230	1,288,230	1,288,230
	Total expected revenues from contracts signed cumulatively (in commercial currency)	94,357	94,357	41,876
	Marketing rate as of the last day of the period (%)	7%	7%	3%
Spaces for which contracts have not yet been signed (Company's share)	Residential units (quantity)	435	435	452
	Residential units (sqm)	33,382	33,382	34,756
	Commercial space (sqm)	-	-	-
	Year 2026		Year 2025
---	---	---	---
	Entire Period	Q1
Total cumulative cost (inventory balance) attributed to spaces for which binding contracts have not yet been signed in the statement of financial position	17,135	17,135	16,165
Number of contracts signed from the end of the period until the date of the report (quantity/sqm)	5 / 406	5 / 406	-

	Year 2026		Year 2025
	Entire Period	Q1
Average price per sqm in contracts signed from the end of the period until the date of the report	33.8	33.8	-

(*) The average price per sqm is presented net of the financing component.

4. The Strip Project - New City Strip in Ben Zvi

4.1 Costs invested in the project:

In thousands of NIS		Year 2026 Q1	Year 2025
Costs invested	Cumulative costs for land at the end of the period (*)	19,821	13,245
	Cumulative costs for development, taxes, fees and others	66,472	62,937
	Cumulative costs for construction (*)	-	-
	Cumulative costs for financing (capitalized)	1,610	1,610
	Total cumulative cost	87,903	77,792
	Total cumulative cost as presented in the books	653,984	697,677
Costs not yet invested and completion rate	Costs for land not yet invested (estimate) (*)	147,387	152,145
	Costs for development, taxes and fees not yet invested (estimate)	619,376	619,376	626,918
	Costs for construction not yet invested (estimate) (*)	1,589,921	1,552,945
	Cumulative costs for financing expected to be capitalized in the future including capitalization of non-specific credit costs (estimate)	-	-
	Total cost remaining for completion	2,356,684	2,332,008
	Completion rate [engineering/financial] (excluding land) (%)	14%	7%
	Expected construction completion date	Q3, 2030	Q3, 2030

(*) The construction and land costs presented in the table do not include the liability component for providing construction services to the veteran tenants (combination).

4.2 Marketing of the project:

		Year 2026		Year 2025
		Entire Period	Q1
Contracts signed during the current period	Residential units (quantity)	1	1	293
	Residential units (sqm)	100	100	30,281
	Commercial space (sqm)	-	-	-
Average price per sqm in contracts signed in the current period (*)	Residential units	28	28	24
	Commercial spaces	-	-	-
Cumulative contracts until the end of the period	Residential units (quantity)	294	294	293
	Residential units (sqm)	30,381	30,381	30,281
	Commercial spaces	-	-	-

		Year 2026		Year 2025
		Entire Period	Q1
Cumulative average price per sqm in contracts signed until the end of the period (*)	Residential units	26	26	24
	Commercial spaces	-	-	-
Marketing rate of the project	Total expected revenues from the entire project (in commercial currency)	3,564,502	3,564,502	3,553,318
	Total expected revenues from contracts signed cumulatively (in commercial currency)	797,104	797,104	783,778
	Marketing rate as of the last day of the period (%)	25%	25%	25%
Spaces for which contracts have not yet been signed (Company's share)	Residential units (quantity)	872	872	873
	Residential units (sqm)	103,814	103,814	103,914
	Commercial spaces (sqm)	-	-	-
Total cumulative cost (inventory balance) attributed to spaces for which binding contracts have not yet been signed in the statement of financial position		65,739	65,739	58,177

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	Year 2026		Year 2025
	Full period	Q1
Number of contracts signed from the end of the period until the report date (quantity/sqm)	4 / 489	4 / 489	-
Average price per sqm in contracts signed from the end of the period until the report date	21.8	21.8	-

(*) The average price per sqm is presented net of the financing component.

5. Aura Ramat HaSharon Project Phase B

5.1 Costs invested in the project:

In NIS thousands		Year 2026 Q1	Year 2025	Year 2024	Year 2023
Invested costs	Cumulative costs for land at the end of the period	212,833	210,380	177,716	143,436
	Cumulative costs for development, taxes, fees and others	81,163	77,618	67,019	27,744
	Cumulative costs for construction	180,016	149,411	38,275	1,604
	Cumulative costs for financing (capitalized)	736	736	736	736
	Total cumulative cost	474,748	438,145	283,747	173,520
	Total cumulative cost as presented in the books	463,051	426,447	182,229	148,933
Costs not yet invested and completion rate	Costs for land not yet invested (estimate)	14,999	17,587	49,673	69,876
	Costs for development, taxes and fees not yet invested (estimate)	177,022	191,999	208,478	247,603
	Costs for construction not yet invested (estimate)	201,343	229,111	321,880	372,202
	Cumulative costs for financing expected to be capitalized in the future, including capitalization of non-specific credit costs (estimate)	-	-	-	-
	Total cost remaining for completion	401,911	438,697	580,000	689,681
	Completion rate [engineering/financial] (excluding land) (%)	58%	53%	27%	7%
	Expected construction completion date	Q1, 2027	Q1, 2027	Q1, 2027	Q1, 2027

(*) The construction and land costs presented in the table include the liability component for providing construction services to the original tenants (combination).

5.2 Marketing of the project:

		Year 2026		Year 2025	Year 2024	Year 2023
		Full period	Q1
Contracts signed in the current period	Residential units (quantity)	1	1	6	48	23
	Residential units (sqm)	126	126	698	5,207	2,465
	Commercial areas (sqm)	-	-	-	-	-
Average price per sqm in contracts signed in the current period (*)	Residential units	30.4	30.4	30.4	29.9	30.1
	Commercial areas	-	-	-	-	-
Cumulative contracts until the end of the period	Residential units (quantity)	178	178	177	171	123
	Residential units (sqm)	17,861	17,861	17,735	17,237	12,030
	Commercial areas	-	-	-	-	-

		Year 2026		Year 2025	Year 2024	Year 2023
		Full period	Q1
Average price per sqm cumulatively in contracts signed until the end of the period (*)	Residential units	29.2	29.2	29.2	29.2	29.2
	Commercial areas	-	-	-	-	-
Marketing rate of the project	Total expected income from the entire project (in commercial currency)	1,254,760	1,254,760	1,254,277	1,245,874	1,196,237
	Total expected income from contracts signed cumulatively (in commercial currency)	570,324	570,324	565,638	540,479	368,935
	Marketing rate for the last day of the period (%)	54%	54%	54%	53%	38%
	Residential units (quantity)	149	149	150	158	206

37 -

		Year 2026		Year 2025	Year 2024	Year 2023
		Full period	Q1
Areas for which contracts have not yet been signed (company's share)	Residential units (sqm)	19,909	19,909	20,035	20,986	26,193
	Commercial areas
Total cumulative cost (inventory balance) attributed to areas for which binding contracts have not yet been signed in the statement of financial position		216,322	216,322	200,984	134,542	107,593
Number of contracts signed from the end of the period until the report date (quantity/sqm)		1 / 130	1 / 130	-	-	-
Average price per sqm in contracts signed from the end of the period until the report date		30.8	30.8	-	-	-

(*) The average price per sqm is presented net of the financing component.

38 -

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Aura Investments Ltd.
Consolidated Interim Financial Statements
As of March 31, 2026
(Unaudited)

Aura Investments Ltd.

Consolidated Interim Financial Statements as of March 31, 2026

Unaudited

Table of Contents

	Page

Review Report of the Auditor	3

Consolidated Statements of Financial Position	4-5

Consolidated Statements of Comprehensive Income	6-7

Consolidated Statements of Changes in Equity	8-10

Consolidated Statements of Cash Flows	11-12

Notes to the Consolidated Interim Financial Statements	13-20

Review Report of the Auditor to the Shareholders of Aura Investments Ltd.

Introduction

We have reviewed the accompanying consolidated financial information of Aura Investments Ltd. and its subsidiaries (hereinafter - "the Company"), which includes the condensed consolidated statement of financial position as of March 31, 2026 and the consolidated statements of comprehensive income, changes in equity and cash flows for the three-month period then ended. The Board of Directors and Management are responsible for the preparation and presentation of financial information for this interim period in accordance with International Accounting Standard IAS 34 - "Interim Financial Reporting", and they are also responsible for the preparation of financial information for this interim period according to Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970. Our responsibility is to express a conclusion on the financial information for this interim period based on our review.

We did not review the condensed interim financial information of consolidated companies whose assets included in the consolidation constitute approximately 0.42% of the total consolidated assets as of March 31, 2026, and whose revenues included in the consolidation constitute approximately 0% of the total consolidated revenues for the three-month period then ended. Furthermore, we did not review the condensed interim financial information of held companies accounted for using the equity method, the investment in which is approximately NIS 20,694 thousand as of March 31, 2026, and the Group's share in their profits is approximately NIS 164 thousand for the three-month period then ended. The condensed interim financial information of those companies was reviewed by other accountants whose review reports were furnished to us, and our conclusion, insofar as it relates to the financial information for those companies, is based on the review reports of the other accountants.

Scope of Review

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.

Conclusion

Based on our review and the review reports of other accountants, nothing has come to our attention that causes us to believe that the aforementioned financial information is not prepared, in all material respects, in accordance with International Accounting Standard IAS 34.

In addition to what is stated in the previous paragraph, based on our review and the review reports of other accountants, nothing has come to our attention that causes us to believe that the aforementioned financial information does not comply, in all material respects, with the disclosure requirements under Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970.

Emphasis of Matter Paragraph

Without qualifying our aforementioned conclusion, we draw attention to Note 2C to the consolidated interim financial statements, regarding the restatement of comparative figures, resulting from a change in accounting policy. The change includes the retrospective application of Accounting Staff Position 11-6 regarding the accounting treatment of urban renewal transactions, as well as a change in accounting policy for the classification of BONDS, such that their classification in the statement of financial position is made in accordance with the general operating cycle of 12 months, instead of their classification in accordance with the entrepreneurial activity cycle as applied in the past.

Bnei Brak,
May 26, 2026

Leon, Orlitsky & Co.
Accountants

An independent member firm of
Moore Global network limited -
members in principal cities
throughout the world

Head Office: 3 HaYarkon Street, LYFE Towers Building B, Bnei Brak 5120125, Tel. 03-6155155, Fax 03-6155150

www.lionori.co.il E mail: [email protected]

Jerusalem: Binyanei HaUma, 1 Shazar Blvd., 9543501, Tel. 073-3728572

Consolidated Statements of Financial Position

Aura Investments Ltd.

	As of March 31		As of December 31
	2026	2025	2025
	Unaudited		Audited
NIS thousands
Current Assets
Cash and cash equivalents	282,177	83,386	226,816
Cash and restricted deposits	250,472	176,209	392,293
Marketable securities	44,815	27,932	44,863
Debtors and debit balances	251,532	138,870	198,651
Contract assets from customers	1,517,031	1,200,799	1,475,103
Intangible asset	3,373	6,073	4,048
Investment property held for sale	-	-	6,600
Inventory of buildings under construction, apartments for sale and land for construction	4,224,399	(*)3,089,242	4,174,334
	6,573,799	4,722,511	6,522,708
Non-current assets
Investment in companies accounted for using the equity method	116,997	(*) 89,834	109,463
Non-current debtors and debit balances	3,006	2,987	3,577
Inventory of land for construction	814,693	738,396	468,739
Investment property under construction	752,335	591,350	713,091
Fixed assets, net	17,732	16,170	17,383
Right-of-use assets	16,582	16,292	15,518
Intangible assets	20,473	20,473	20,473
	1,741,818	1,475,502	1,348,244

	8,315,617	6,198,013	7,870,952

(*) Restatement due to change in accounting policy - see Note 2C.

The accompanying notes constitute an integral part of the consolidated interim financial statements.

5/27/2026 | 6:16:10 AM | v1.2.5

Aura Investments Ltd.
Consolidated Statements of Financial Position

	As of March 31		As of December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Current liabilities
Credit from banking and other institutions	2,310,080	1,614,733	2,228,960
Loan for investment property held for sale	-	-	2,403
BONDS	173,155	(*) 268,984	156,763
Liabilities to suppliers and service providers	242,980	273,924	299,263
Accounts payable and credit balances	209,686	(*) 154,545	192,847
Liabilities for contracts with customers	161,519	143,993	197,040
Current maturity of lease liability	14,417	13,715	14,948
Liabilities for payments to landowners	147,288	(*) 121,648	166,777
Liabilities for provision of construction services to landowners	1,519,543	(*) 1,277,972	1,641,443
	4,778,668	3,869,514	4,900,444
Non-current liabilities
Credit from banking institutions	293,189	205,003	1,205
Liability for acquisition of investment property	-	24,520	-
Liability for employee benefits	160	110	160
Lease liability	2,904	3,043	1,242
Deferred taxes	191,833	(*) 133,118	173,430
BONDS	1,115,472	(*) 603,098	918,582
	1,603,558	968,892	1,094,619
Equity attributable to company shareholders
Share capital	47,309	47,309	47,309
Share premium	782,795	727,746	782,795
Capital reserve from translation differences of foreign operations	(42,200)	(37,278)	(40,770)
Reserve from transactions with interested parties	25,277	(*) 25,277	25,277
Capital reserve from transactions with non-controlling interests	73,609	-	77,001
warrants	-	6,138	-
Treasury shares	(12,803)	(12,803)	(12,803)
Capital reserve for share-based payment	5,777	2,363	4,330
Retained earnings	789,744	(*) 582,987	729,181
	1,669,508	1,341,739	1,612,320
Non-controlling interests	263,883	(*) 17,868	263,569
Total equity	1,933,391	1,359,607	1,875,889
	8,315,617	6,198,013	7,870,952

(*) Restatement due to change in accounting policy - see Note 2C.
The accompanying notes constitute an integral part of the interim consolidated financial statements.

Gadi Koren
Chairman of the Board

Adv. Yaakov Atrakchi
CEO

Ariel Pashin
CFO

May 26, 2026

Date of approval of financial statements

Aura Investments Ltd.
Consolidated Statements of Comprehensive Income

	For the three months ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Revenue from sale of apartments	334,587	331,362	1,370,465
Revenue from construction services	160,517	(*) 95,003	534,059
Total revenue	495,104	426,365	1,904,524
Cost of apartments sold	(275,889)	(*) (234,810)	(1,078,510)
Cost of construction services	(83,246)	(*) (76,105)	(329,204)
Total cost of sales	(359,135)	(310,915)	(1,407,714)
Gross profit	135,969	115,450	496,810
Selling, marketing and operating expenses	(10,561)	(6,159)	(33,357)
General and administrative expenses	(21,281)	(15,555)	(74,928)
Other expenses	-	-	(30)
Other income	612	-	385
Fair value adjustment of investment property held by a subsidiary	9,899	37,455	-
Fair value adjustment of investment property under construction and reversal of provision for impairment of inventory of buildings and land for sale	-	-	74,565
Operating profit	114,638	131,191	463,445
Company's share in profits of companies accounted for using the equity method	7,427	(*) 11,109	30,026
Financing income (expenses)
Financing income	20,900	23,093	87,012
Financing expenses	(61,474)	(*) (41,917)	(210,254)
	(40,574)	(*) (18,824)	(123,242)
Profit before taxes on income	81,491	123,476	370,229
Taxes on income	(18,490)	(*) (28,972)	(85,627)
Net profit for the period	63,001	94,504	284,602
Other comprehensive income (loss) (after tax effect):
Amounts that will be reclassified in the future to profit or loss, net of tax:

	For the three months ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Adjustments arising from translation of financial statements of foreign operations	(1,430)	2,674	(818)

Total comprehensive income for the period	61,571	97,178	283,784

(*) Restatement due to change in accounting policy - see Note 2C.

The accompanying notes constitute an integral part of the interim consolidated financial statements.

Aura Investments Ltd.
Consolidated Statements of Comprehensive Income

	For the year ended December 31	For the three months ended March 31
	2025	2025	2026
	Audited	Unaudited
	NIS thousands
Net profit (loss) attributable to:
Company shareholders	280,748	(*) 94,554	60,563
Non-controlling interests	3,854	(*) (50)	2,438
	284,602	94,504	63,001
Total comprehensive income (loss) attributable to:
Company shareholders	279,930	(*) 97,228	59,133
Non-controlling interests	3,854	(*) (50)	2,438
	283,784	97,178	61,571
Earnings per share attributable to company shareholders (in NIS)
Basic earnings for the current period	0.9895	(*) 0.3349	0.2119
Diluted earnings for the current period	0.9852	(*) 0.3329	0.2117

(*) Restatement due to change in accounting policy - see Note 2C.

The accompanying notes constitute an integral part of the interim consolidated financial statements.

Aura Investments Ltd.
Consolidated Statements of Changes in Equity

	Share capital	Share premium	Capital reserve for share-based payment	Treasury shares	warrants	Translation reserve	Capital reserve from transactions with interested parties	Capital reserve from transactions with non-controlling interests	Retained earnings	Total	Non-controlling interests	Total equity
	Unaudited NIS thousands
Balance as of January 1, 2026	47,309	782,795	4,330	(12,803)	-	(40,770)	25,277	77,001	729,181	1,612,320	263,569	1,875,889
Net profit for the period	-	-	-	-	-	-	-	-	60,563	60,563	2,438	63,001
Other comprehensive loss for the period	-	-	-	-	-	(1,430)	-	-	-	(1,430)	-	(1,430)
Total comprehensive income for the period	-	-	-	-	-	(1,430)	-	-	60,563	59,133	2,438	61,571

Transactions with non-controlling interests	-	-	-	-	-	-	-	(3,392)	-	(3,392)	(2,364)	(5,756)
Share-based payment	-	-	1,447	-	-	-	-	-	-	1,447	240	1,687
Balance as of March 31, 2026	47,309	782,795	5,777	(12,803)	-	(42,200)	25,277	73,609	789,744	1,669,508	263,883	1,933,391

The accompanying notes constitute an integral part of the interim consolidated financial statements.

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Aura Investments Ltd

Consolidated Statements of Changes in Equity

	Share Capital	Share Premium	Capital Reserve for Share-Based Payment	Treasury Shares	Warrants	Capital Reserve from Translation Differences	Capital Reserve from Transactions with Controlling Shareholders	Retained Earnings	Total	Non-Controlling interests	Total Equity
Unaudited
NIS thousands
Balance as of January 1, 2025 (*)	47,309	727,746	1,494	(12,803)	6,138	(39,952)	25,277	488,433	1,243,642	17,918	1,261,560
Net profit for the period	-	-	-	-	-	-	-	(**) 94,554	94,554	(**) (50)	94,504
Other comprehensive income for the period	-	-	-	-	-	2,674	-	-	2,674	-	2,674
Total comprehensive income for the period	-	-	-	-	-	2,674	-	94,554	97,228	(50)	97,178
Share-based payment	-	-	869	-	-	-	-	-	869	-	869
Balance as of March 31, 2025	47,309	727,746	2,363	(12,803)	6,138	(37,278)	25,277	582,987	1,341,739	17,868	1,359,607

() Regarding the effect of change in policy on balances as of January 1, 2025 - see Note 2kz' to the annual financial statements.
(*) Restatement due to change in accounting policy - see Note 2c'.

The accompanying notes are an integral part of the interim consolidated financial statements.

Consolidated Statements of Changes in Equity
Aura Investments Ltd

	Share Capital	Share Premium	Capital Reserve for Share-Based Payment	Treasury Shares	Warrants	Capital Reserve from Translation Differences	Capital Reserve from Transactions with Controlling Shareholders	Capital Reserve from Transactions with Non-Controlling Interests	Retained Earnings	Total	Non-Controlling Interests	Total Equity
NIS thousands
Balance as of January 1, 2025	47,309	727,746	1,494	(12,803)	6,138	(39,952)	25,277	-	488,433	1,243,642	17,918	1,261,560
Net profit for the year	-	-	-	-	-	-	-	-	280,748	280,748	3,854	284,602
Other comprehensive income for the year	-	-	-	-	-	(818)	-	-	-	(818)	-	(818)
Total comprehensive income for the year	-	-	-	-	-	(818)	-	-	280,748	279,930	3,854	283,784

Transactions with non-controlling interests	-	-	-	-	-	-	-	77,001	-	77,001	241,449	318,450

	Share Capital	Share Premium	Capital Reserve for Share-Based Payment	Treasury Shares	Warrants	Capital Reserve from Translation Differences	Capital Reserve from Transactions with Controlling Shareholders	Capital Reserve from Transactions with Non-Controlling Interests	Retained Earnings	Total	Non-Controlling Interests	Total Equity
NIS thousands
Exercise of warrants for shares	-	55,049	(1,050)	-	(6,138)	-	-	-	-	47,861	-	47,861
Share-based payment	-	-	3,886	-	-	-	-	-	-	3,886	348	4,234

Dividend distributed to shareholders	-	-	-	-	-	-	-	-	(40,000)	(40,000)	-	(40,000)

Balance as of December 31, 2025	47,309	782,795	4,330	(12,803)	-	(40,770)	25,277	77,001	729,181	1,612,320	263,569	1,875,889

The accompanying notes are an integral part of the consolidated financial statements.

Aura Investments Ltd

Consolidated Statements of Cash Flows

	For the three months ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Cash flows from operating activities
Net profit for the period	63,001	(*) 94,504	284,602
Adjustments required to present cash flows from operating activities:
Adjustments for profit and loss items:
Company's share in profits of companies accounted for using the equity method	(7,427)	(*) (11,109)	(30,026)
Depreciation and amortization	2,364	2,134	8,762
Income taxes	18,490	(*) 28,972	85,627
Financing expenses, net	477	2,618	14,734
Revaluation of marketable securities	48	(822)	(2,642)
Capital loss from disposal of fixed assets	-	-	27
Share-based payment	1,687	869	4,234
Fair value adjustment of investment property under construction and reversal of provision for impairment of inventory...	(9,899)	(37,455)	(74,565)
	5,740	(14,793)	6,151

	For the three months ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Changes in asset and liability items:
Increase in liabilities for employee benefits	-	9	59
Increase in debtors and debit balances	(52,362)	(38,565)	(29,945)
Decrease (increase) in inventory of buildings under construction and housing units for sale and land for construction	10,208	(*) 25,031	(30,567)
Increase in assets from contracts with customers	(41,928)	(217,886)	(492,190)
Decrease in liabilities to suppliers and service providers, creditors and credit balances and in advances from buyers	(175,928)	(*) (112,874)	(286,553)
	(260,010)	(344,285)	(839,196)
Cash paid and received during the period for:
Taxes paid	(3,217)	(1,375)	(1,252)
Interest paid	(54,473)	(32,660)	(167,395)
Interest received	6,539	1,678	9,770
	(51,151)	(32,357)	(158,877)
Net cash - operating activities (before change in inventory of land for construction)	(242,420)	(296,931)	(707,320)
Increase in inventory of land for construction	(395,990)	(199,426)	(215,711)
Net cash - operating activities	(638,410)	(496,357)	(923,031)
Cash flows from investing activities
Change in cash and restricted deposits	141,820	111,832	(104,252)
Investment in marketable securities	-	-	(15,111)
Investment in investment property under construction	(29,346)	(8,411)	(65,650)
Repayment (provision) of loans net to affiliates	(1,349)	2,094	810
Change in escrow deposits	13	-	1,084
Dividend received from affiliates	904	1,516	1,532
Proceeds from disposal of investment property under construction	6,125	2,506	5,036
Proceeds from disposal of fixed assets	-	-	4
Purchase of fixed assets	(1,007)	(1,083)	(4,066)
Net cash - investing activities	117,160	108,454	(180,613)

(*) Restatement due to change in accounting policy - see Note 2c'.
The accompanying notes are an integral part of the interim consolidated financial statements.

Aura Investments Ltd
Consolidated Statements of Cash Flows

	For the three months ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Cash flows from financing activities
Short-term credit from banking corporations and others, net	78,817	151,112	564,276
Receipt of long-term loans from banking corporations	292,000	117,455	117,455
Repayment of long-term loans from banking corporations	(115)	-	(331)
Repayment of lease liability	(1,245)	(1,087)	(4,537)
Exercise of warrants for shares, net	-	-	47,861
Issuance of BONDS, net	305,928	121,626	372,869
Dividend distributed to the Company's shareholders	-	-	(40,000)
Transactions with non-controlling interests	(5,756)	-	-
Proceeds from issuance of shares in a subsidiary to non-controlling interests, net	-		224,440
Proceeds from issuance of warrants in a subsidiary to non-controlling interests, net	-		24,010
Repayment of BONDS	(93,017)	(27,750)	(85,501)
Net cash - financing activities	576,612	361,356	1,220,542

Translation differences on cash and cash equivalents	(1)	12	(3)
Increase (decrease) in cash and cash equivalents	55,361	(26,535)	116,895
Cash and cash equivalents balance at beginning of period	226,816	109,921	109,921
Cash and cash equivalents balance at end of period	282,177	83,386	226,816

The accompanying notes are an integral part of the interim consolidated financial statements.

5/27/2026 14:16:12 AM

Aura Investments Ltd.

Notes to the Interim Consolidated Financial Statements

Note 1: - General

a. These financial statements were prepared in a condensed format as of March 31, 2026, and for the three-month period ended on that date (hereinafter - "Interim Consolidated Financial Statements"). These statements should be read in conjunction with the Company's annual financial statements as of December 31, 2025, and for the year ended on that date, and the accompanying notes (hereinafter - "the Annual Financial Statements").

b. Operation "Lion's Roar"

Following what was stated in Note 1(c) to the Annual Financial Statements regarding the impact of the security situation on the Company's activities, on February 28, 2026, a combined attack by Israel and the United States named "Lion's Roar" was launched against government targets in Iran to degrade Iranian capabilities in the nuclear and ballistic missile fields, which led to an escalation in the security situation in Israel, followed by a conflict on the northern front between Israel and the Hezbollah terrorist organization in Lebanon. The state of war caused the closure of sales offices in March until the ceasefire and affected the rate of apartment sales in the first quarter of 2026. As of the report publication date, a fragile ceasefire has been declared which does not reduce the security tension on the fighting fronts. As a result of the above, significant volatility began in energy prices, including oil prices and volatility in foreign exchange rates. As of the date of the report, it is not yet possible to estimate the impact of the current state of fighting on the Israeli economy in general and on the real estate sector in particular. On the other hand, the events of the war led to rising antisemitism in the world, a phenomenon that is also rising at this time and therefore may bring a large wave of aliyah to Israel that will increase the demand for apartments and the rise of housing prices. Also, the fact that the process of land marketing by the State has slowed significantly may cause housing prices to rise in the medium and long term. It should be noted that the downward trend of the bank of Israel interest in the economy that began at the end of 2025 and continued into 2026 is also expected to have a positive impact on the residential real estate sector. The Company continues to examine from time to time the effects of the economic and security situation on its business activities. However, and in light of the uncertainty regarding the security situation, and the effects of other factors, on the business activity, the Company is unable at this stage to accurately estimate the scope and nature of further future effects of the war on its results.

Note 2: - Significant Accounting Policies

a. Format of preparation of the Interim Consolidated Financial Statements

The Interim Consolidated Financial Statements are prepared in accordance with International Accounting Standard 34 - "Interim Financial Reporting", and in accordance with the disclosure requirements under Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970. The accounting policies applied in the preparation of the interim financial statements are consistent with those applied in the preparation of the annual financial statements, except as stated below:

b. Disclosure of new IFRS standards in the period prior to their implementation

International Financial Reporting Standard 18, Presentation and Disclosure in Financial Statements

In April 2024, the International Accounting Standards Board (IASB) published International Financial Reporting Standard 18 (IFRS 18), Presentation and Disclosure in Financial Statements (hereinafter: "the New Standard"), which replaces International Accounting Standard 1 (IAS 1), Presentation of Financial Statements (hereinafter: "IAS 1").

The purpose of the New Standard is to improve comparability and transparency in financial statements.

The New Standard will include existing requirements of IAS 1 and new requirements for presentation in the statement of profit or loss, including the presentation of amounts and subtotals required by the New Standard, disclosure of management-defined performance measures, and new requirements for the grouping and splitting of financial information.

The New Standard does not change the recognition and measurement requirements for items in the financial statements. However, since items in the statement of profit or loss will need to be classified into one of five categories (operating activity, investing activity, financing activity, income taxes, and discontinued operations), it may change the entity's operating profit. Furthermore, the publication of the New Standard resulted in limited scope amendments to other accounting standards, including IAS 7, Statement of Cash Flows, and IAS 34, Interim Financial Reporting.

The New Standard will be applied retrospectively for annual periods beginning on or after January 1, 2027. Early application is permitted with disclosure.

The Company is examining the impact of the New Standard, including the impact of amendments to other accounting standards resulting from the New Standard, on the financial statements.

Aura Investments Ltd.

Notes to the Interim Consolidated Financial Statements

Note 2: - Significant Accounting Policies (Continued)

c. Restatement due to a change in accounting policy

Following what was stated in Note 2(kz) to the Annual Financial Statements, on July 7, 2025, the Securities Authority published Accounting Staff Position 11-6, regarding the accounting treatment of urban renewal transactions (hereinafter: "the Staff Position"), following a horizontal audit performed by the Authority's staff in which the accounting treatment applied by residential real estate companies in these transactions was examined. The Staff Position reflects the accounting treatment that the Authority's staff expects reporting corporations to apply regarding several material issues that arose during the audit. The Company applied the accounting treatment instructions presented in the Staff Position as a change in accounting policy. The change in accounting policy was made by way of retrospective application.

In addition, the Company applied a voluntary change of accounting policy regarding the classification of liabilities for BONDS. This voluntary change in accounting policy was also applied by way of retrospective application, as required by IAS 8.

The following is the impact of the above policy changes on the Company's Statement of Financial Position:

	As of March 31, 2025
	As previously reported	Effect of policy change	As reported in these financial statements
	NIS thousands	NIS thousands	NIS thousands
Current assets
Inventory of buildings under construction, residential units for sale, and land for construction	2,174,468	914,774	3,089,242
Non-current assets
Investments in companies accounted for using the equity method	80,447	9,387	89,834
Current liabilities

	As of March 31, 2025
	As previously reported	Effect of policy change	As reported in these financial statements
	NIS thousands	NIS thousands	NIS thousands
BONDS	768,029	(499,045)	268,984
Payables and credit balances	149,103	5,442	154,545
Liabilities to landowners	471,195	928,425	1,399,620
Non-current liabilities
BONDS	104,053	499,045	603,098
Deferred taxes	134,973	(1,855)	133,118
Equity
Fund from transactions with interested parties	19,766	5,511	25,277
Retained earnings	596,220	(13,233)	582,987
Total equity attributable to the Company's shareholders	1,349,461	(7,722)	1,341,739
Non-controlling interests	17,997	(129)	17,868
Total equity	1,367,458	(7,851)	1,359,607

Aura Investments Ltd.

Notes to the Interim Consolidated Financial Statements

Note 2: - Significant Accounting Policies (Continued)

c. Restatement due to a change in accounting policy (Continued)

The following is the impact of the policy changes described above on the consolidated statements of comprehensive income of the Company:

	For the three-month period ended March 31, 2025
	As previously reported	Effect of policy change	As reported in these financial statements
	NIS thousands	NIS thousands	NIS thousands
Total revenues	370,696	55,669	426,365
Total cost of sales	(284,202)	(26,713)	(310,915)
Gross profit	86,494	28,956	115,450
Operating profit	102,235	28,956	131,191
Share in profits of investee companies accounted for using the equity method	1,226	9,883	11,109

	For the three-month period ended March 31, 2025
	As previously reported	Effect of policy change	As reported in these financial statements
	NIS thousands	NIS thousands	NIS thousands
Financing income (expenses), net	(6,888)	(11,936)	(18,824)
Profit before income taxes	96,573	26,903	123,476
Income taxes	(22,792)	(6,180)	(28,972)
Net profit for the period	73,781	20,723	94,504
Net profit for the period attributable to:
Shareholders of the Company	73,819	20,735	94,554
Non-controlling interests	(38)	(12)	(50)
Basic earnings per share (in NIS)	0.2615	0.0734	0.3349
Diluted earnings per share (in NIS)	0.2599	0.073	0.3329

Aura Investments Ltd.

Notes to the Interim Consolidated Financial Statements

Note 3: - Significant events during the reporting period and thereafter

LINK Project (Ashkenazi Market) in Yehud

Following what was stated in Note 12(d) to the Annual Financial Statements, on February 16, 2026, the Company received a full building permit for the project. The project includes the construction of 444 residential units in one phase, of which 116 units will be delivered to the existing apartment owners, and the remaining 328 units are being sold on the free market. The project also includes commercial areas that will remain under the Company's ownership under the subsidiary Aura Commercial Centers Ltd. The Company signed a support agreement for the construction of the project and has sold 178 units to date. Construction of the new project began in December 2024 and is expected to be completed in December 2028.

Trio Project in Ofakim - of Megiddo

During the reporting period, the subsidiary Megiddo Y.K. Ltd. received building permits for Complex 3 in the Trio Project in Ofakim, which includes 270 residential units, and began its execution.

Private issuance of BONDS (Series 19 including expansions)

On January 4, 2026, the Company entered into an agreement with qualified investors for the private issuance of 150,000,000 NIS par value BONDS (Series 19) of the Company, by way of an expansion of Series 19, at a price of 1.065 NIS for every 1 NIS par value of the BONDS, where, after the allocation, the BOND series stands at a total sum of 400,000,000 NIS par value. The net proceeds (proceeds less issuance expenses) from this issuance are approximately 159 million NIS. The terms of the BONDS (Series 19) allocated within the framework of the private allocation subject to this report are identical in all respects to the terms of the BONDS (Series 19). The BONDS were issued at an effective interest rate of 5.208%.

On January 4, 2026, the BONDS (Series 19) were rated A2.1 with a stable outlook by the Midroog rating agency.

Issuance of BONDS (Series 2) by Megiddo Y.K. Ltd. - a subsidiary

On January 13, 2026, Megiddo completed an issuance of 152,829,000 units of BONDS (Series 2), which included a total of 152,829,000 NIS par value of BONDS (Series 2). The interest rate for the BONDS (Series 2) is 5.17% per year. The principal of the BONDS (Series 2) is due for repayment in five equal annual payments on June 30 of each of the years 2028 through 2032.

The interest, at a rate of 2.585%, will be paid twice a year in equal semi-annual payments on June 30 of each of the years 2026 to 2032 and December 31 of each of the years 2026 to 2031 for the six-month period ending one day before its payment date, except for the first interest period in which the interest rate will stand at 2.38%.

Plan to purchase shares of Megiddo

On January 29, 2026, the Company's Board of Directors approved a framework of up to 20 million NIS, which will remain in effect for one year from the date of the decision, for the purchase of ordinary shares of Megiddo Y.K. Ltd. The Board of Directors authorized the Company's management to carry out such purchases through transactions to be performed on the Tel Aviv Stock Exchange Ltd. or outside it. As of the report date, 776,380 additional shares were purchased by the Company at a cost of approximately 5.76 million NIS, and the Company holds approximately 77.42% of the issued and paid-up share capital of Megiddo.

Land project in Kiryat Ekron - of Megiddo

Following what was stated in Note 19(d) in the Annual Financial Statements regarding the subsidiary Megiddo's project in Kiryat Ekron, in January 2026, a new town building plan was approved, including an addition of 63 residential units (bringing the project to a total of 483 residential units) and approximately 1,200 square meters of commercial space.

Investment land in Arad - of Megiddo

Following what was stated in Note 16(c1) to the Annual Financial Statements, as of March 31, 2026, the land value (classified in the consolidated statements of financial position under investment property) was updated to a total of approximately 133,500 NIS thousands, based on an updated valuation as of March 31, 2026, received from an external and independent appraiser; therefore, the Company recognized a gain from increase in value of investment property (before tax) in the amount of approximately 9,899 NIS thousands.

5/27/2026 16:16:14 AM v1.2.5

Aura Investments Ltd.

Notes to the Condensed Consolidated Interim Financial Statements

Note 3: - Significant events during and after the reporting period (Cont.)

8. Signing of a Memorandum of Understanding with Clal Insurance Company Ltd. for cooperation and capital investment

On February 26, 2026, the Company, through Aura Israel - Renewing Israel, a wholly-owned subsidiary of the Company (hereinafter: "the Subsidiary"), signed a Memorandum of Understanding (MOU) with Clal Insurance Company Ltd. (hereinafter: "Clal"), regarding a strategic cooperation, under which Clal will invest, together with the Company, in urban renewal projects of the Subsidiary as determined by the parties, concerning residential rights only, in a total scope of up to NIS 650 million (hereinafter: "the MOU").

The following are the main points of the MOU-

According to the MOU, Clal is expected to invest and acquire 30%-35% of the Subsidiary's rights in residential areas in several leading projects of the Subsidiary to be selected by the parties, prior to the signing of the detailed agreement, which meet the criteria set in the MOU ("the Selected Projects"), and will be transferred to dedicated partnerships to be established for each project.
According to the MOU, the total investment amount Clal committed to invest in the Selected Projects (equity and initiation fees to be paid to the Subsidiary) will not exceed NIS 450 million, subject to adjustments set in the memorandum.
Under the MOU, the Company committed that for a period of 3 years from the signing of the detailed agreement, the Company will offer Clal to join future projects meeting the conditions set in the MOU, up to an additional total investment amount of NIS 200 million (Clal's share), where Clal has the right to refuse at its discretion. An extension option for an additional 3 years was also set, subject to prior notice.
In exchange for Clal's investment in the Selected Projects, Clal will pay the Subsidiary initiation fees in cash (money out) and will also invest its share in the equity of each Selected Project (money in), according to terms and adjustments set in the MOU, the main ones being permits, pre-sales, lending bank requirements for capital provision, signing of a financing agreement, and provision of Aura's share of the equity of each project. The MOU also establishes the relationship between the Subsidiary and Clal in their capacity as partners in the projects, including their management by the Subsidiary and Clal's protective rights as a minority shareholder, profit distribution between the Subsidiary and Clal, including protection mechanisms for Clal's minimum return based on representations given to Clal regarding the Selected Projects.
The parties will work toward signing a detailed agreement within 90 days of signing the MOU and obtaining the required approvals.

9. Dividend Distribution

In April 2026, the Company distributed a dividend totaling NIS 30 million.

10. Aura Hadera (Rascom) Project

On April 16, 2026, after the report date, the Company received a full building permit for the Aura Hadera (Rascom) project. The project includes the construction of 530 units in a single phase, of which 100 units will be delivered to existing apartment owners, and the balance, 430 units, are sold on the free market. The project also includes public buildings, and in addition 94 small units intended for rental and commercial spaces that will remain under the Company's ownership through the subsidiary Aura Commercial Centers Ltd., which will hold the commercial spaces. The Company signed a financing agreement for the construction of the project with Mizrahi Bank. The Company began marketing the project and has sold 149 units to date. Construction of the new project began in August 2025 and is expected to be completed in June 2030.

11. Validation of the Company's Plan for the "Margolit" Project in Ness Ziona

On May 7, 2026, after the report date, the Central District Planning and Building Committee approved for validation the Company's plan for the "Margolit" project in Ness Ziona. Within the framework of the plan, which covers approximately 60 dunams, 264 existing units and 3 existing shops will be vacated, and 868 new units will be built, of which 16 units were allocated to the Israel Land Authority, as well as 2,000 sqm of commercial space and public areas. The Company will begin promoting the building permits for the project and estimates that the start of marketing and execution will be toward the second half of 2027.

Aura Investments Ltd.

Notes to the Condensed Consolidated Interim Financial Statements

Note 3: - Significant events during and after the reporting period (Cont.)

On May 25, 2026, the Company, through its subsidiary Aura Israel - Renewing Israel Ltd., entered into an agreement for the sale of residential units and an investment agreement with Rent-It - Residential REIT Ltd. (hereinafter - Rent-It), a public company, as detailed below:
Rent-It will purchase 52 residential units from the Subsidiary, as well as storage rooms and parking spaces (hereinafter - the Acquired Apartments) in the Aura City project in Hadera.
According to the investment agreement, the Subsidiary will invest in Rent-It, at a value of NIS 9 per share, a total of approximately NIS 20 million, in exchange for the allocation of Rent-It shares, which will constitute upon their issuance approximately $5.87\%$ (and approximately $5.65\%$ on a fully diluted basis) of the issued and paid-up share capital of Rent-It (hereinafter - the Investment Agreement and the Allocated Shares, respectively). The allocation of the Allocated Shares is subject to TASE approval, and after their allocation, they will be listed for trading on the TASE. For details regarding Rent-It, see its periodic reports and immediate reports published on the TASE Maya website.
The consideration for the Acquired Apartments, totaling approximately NIS 108.5 million including VAT, will be paid as detailed below: (a) a total of NIS 13 million will be paid within 3 days from the date of signing the agreement; (b) a total of NIS 20 million will be paid concurrently with the completion of the investment agreement; (c) the balance of the consideration in the amount of NIS 75.5 million will be paid close to the delivery of possession of the Acquired Apartments, which is expected to take place on June 30, 2026.

Note 4: - Operating Segments

The Company has two operating segments: Residential Construction in Israel and Yield-generating properties. The financial information on the segments below represents the operations of companies under joint control. The adjustments presented are for the transition to presenting the operations of the aforementioned companies based on the equity method.

For the three-month period ended March 31, 2026

	Residential Construction	Yield-generating properties	Income (expenses) not allocated Unaudited	Adjustments	Total
NIS thousands
Total segment income	495,104	370	-	(370)	495,104
Gross profit	135,969	370	-	(370)	135,969

	Residential Construction	Yield-generating properties	Income (expenses) not allocated Unaudited	Adjustments	Total
NIS thousands
Increase in value of investment property under construction	-	9,899	-	-	9,899
Operating profit	105,155	9,679	-	(196)	114,638
Company's share in profits of held companies accounted for by the equity method					7,427
Financing expenses, net					(40,574)
Taxes on income					(18,490)
Net profit for the period					63,001

Aura Investments Ltd.

Notes to the Condensed Consolidated Interim Financial Statements

Note 4: - Operating Segments (Cont.)

For the three-month period ended March 31, 2025

	Residential Construction	Yield-generating properties	Unallocated Unaudited	Adjustments	Total
	NIS thousands
Total segment income	(*) 426,365	398	-	(398)	426,365
Gross profit	(*) 115,450	398	-	(398)	115,450
Increase in value of investment property under construction	-	37,455	-	-	37,455
Operating profit	(*) 94,314	37,103	-	(226)	131,191

Company's share in profits of held companies accounted for by the equity method					(*) 11,109
Financing expenses, net					(*) (18,824)
Taxes on income					(*) (28,972)
Net profit for the year					94,504

(*) Restated due to change in accounting policy – see Note 2c.

For the year ended December 31, 2025

	Residential Construction	Yield-generating properties	Unallocated Unaudited	Adjustments	Total
	NIS thousands
Total segment income	1,904,524	1,550	-	(1,550)	1,904,524
Gross profit	496,810	1,550	-	(1,550)	496,810
Increase in value of investment property under construction	-	73,807	-	-	73,807
Operating profit	391,683	72,645	-	(883)	463,445

Company's share in profits of held companies accounted for by the equity method					30,026
Financing expenses, net					(123,242)
Taxes on income					(85,627)
Net profit for the year					284,602

Segment assets	7,005,385	880,941	44,863	(60,237)	7,870,952

Segment liabilities	5,803,024	234,182	1,676	(43,819)	5,995,063

Aura Investments Ltd.

Notes to the Condensed Consolidated Interim Financial Statements

Note 5: - Financial Instruments

Fair Value

The carrying amount of certain financial assets and liabilities including cash and cash equivalents, trade receivables, other receivables, short-term loans and credit, suppliers, and other payables corresponds to or is close to their fair value. The following are the carrying amounts and fair values of financial instruments:

	March 31, 2026		March 31, 2025		December 31, 2025
	Balance	Fair Value	Balance	Fair Value	Balance	Fair Value
	NIS thousands
Financial liabilities
BONDS (*)	1,288,627	1,326,682	872,082	893,240	1,075,345	1,122,472
	1,288,627	1,326,682	872,082	893,240	1,075,345	1,122,472

(*) The fair value of the traded BONDS was determined based on quoted prices on the TASE.

5/27/2026 | 6:16:15 AM | v1.2.5

May 26, 2026

The Board of Directors of Aura Investments Ltd

Dear Sirs,

Subject: Consent letter regarding shelf prospectus of Aura Investments Ltd (hereinafter - "the Company")

dated August 2023

We hereby inform you that we agree to the inclusion (including by way of reference) of our reports detailed below regarding the shelf prospectus dated August 2023.

Review report dated May 26, 2026, on the condensed consolidated financial information of the Company as of March 31, 2026, and for the three-month period ended on that date.
Special report of the independent accountants dated May 26, 2026, on the condensed separate interim financial information of the Company as of March 31, 2026, and for the three-month period ended on that date according to Regulation 38D of the Securities Regulations (Periodic reports and immediate), 1970.

Sincerely,

Leon, Orlitsky & Co.

Accountants

An independent member firm of Moore Global network limited - members in principal cities throughout the world

Head Office: 3 HaYarkon St., LYFE Towers Building B, Bnei Brak 5120125, Tel. 03-6155155, Fax. 03-6155150

www.lionorl.co.il

Jerusalem: Binyanei HaUma, 1 Shazar Blvd, 9543501, Tel. 073-3728572

E mail: [email protected]

Aura Investments Ltd

Financial data from the interim consolidated financial statements

Attributable to the Company

As of March 31, 2026

Unaudited

Leon, Orlitsky & Co.

Accountants

Special report for the review of separate interim financial information according to Regulation 38D of the Securities Regulations (Periodic reports and immediate), 1970

Introduction

We have reviewed the separate interim financial information presented according to Regulation 38D of the Securities Regulations (Periodic reports and immediate), 1970 of Aura Investments Ltd (hereinafter - the Company), as of March 31, 2026 and for the three-month period ended on that date. The separate interim financial information is the responsibility of the Company's Board of Directors and Management. Our responsibility is to express a conclusion on the separate interim financial information for this interim period based on our review.

We did not review the separate interim financial information from the financial statements of investees whose assets less liabilities attributable to them, net, totaled NIS 30,085 thousand as of March 31, 2026 and whose profit from these investees totaled NIS 116 thousand for the three-month period ended on that date. The condensed financial information for the interim period of those companies was reviewed by other accountants whose review reports were furnished to us and our conclusion, insofar as it relates to the financial information regarding those companies, is based on the review reports of the other accountants.

Scope of Review

We conducted our review in accordance with Israel Review Standard (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.

Conclusion

Based on our review and the review reports of other accountants, nothing has come to our attention that causes us to believe that the aforementioned separate interim financial information is not prepared, in all material respects, in accordance with the provisions of Regulation 38D of the Securities Regulations (Periodic reports and immediate), 1970.

Emphasis of Matter Paragraph

Without qualifying our above conclusion, we draw attention to what is stated in Additional Information 2, in the separate interim financial information, regarding the restatement of comparative figures, resulting from a change in accounting policy. The change includes the retrospective application of Accounting Staff Position 11-6 regarding the accounting treatment of urban renewal transactions, as well as a change in accounting policy for the classification of BONDS, such that their classification in the statement of financial position is done according to the general operating cycle of 12 months, instead of their classification according to the entrepreneurial activity cycle as applied in the past.

Bnei Brak,

May 26, 2026

Leon, Orlitsky & Co.

Accountants

An independent member firm of Moore Global network limited - members in principal cities throughout the world

Head Office: 3 HaYarkon St., LYFE Towers Building B, Bnei Brak 5120125, Tel. 03-6155155, Fax. 03-6155150

www.lionori.co.il E mail: [email protected]

Jerusalem: Binyanei HaUma, 1 Shazar Blvd, 9543501, Tel. 073-3728572

Special report according to Regulation 38D

Financial data and financial information from the interim consolidated financial statements

Attributable to the Company

Below are separate financial data and financial information attributable to the Company from the condensed interim consolidated financial statements of the Group as of March 31, 2026 published within the framework of the Periodic reports (hereinafter - "Consolidated Reports"), presented in accordance with Regulation 38D of the Securities Regulations (Periodic reports and immediate), 1970.

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Aura Investments Ltd. Financial data from the consolidated balance sheets attributed to the company

	As of March 31		As of December 31
	2026	2025	2025
	Unaudited	Unaudited	Audited
	NIS in thousands
Current Assets
Cash and cash equivalents	90,440	4,999	54,523
Restricted cash and deposits in use	3,794	6,339	5,198
Marketable securities	29,531	27,932	29,250
Debtors and debit balances	40,764	69,186	47,557
Assets from contracts with customers	263,233	146,466	238,186
Loans to held companies	975,845	773,887	969,548
Inventory of buildings for sale, housing units for sale and land for construction	511,033	(*) 528,431	518,350
	1,914,640	1,557,240	1,862,612
Non-Current Assets
Investments in held companies	1,329,584	(*) 1,045,843	1,272,494
Non-current debtors and debit balances	1,916	1,332	1,929
Inventory of land for construction	33,584	29,561	32,716
Fixed assets, net	272	345	288
	1,365,356	1,077,081	1,307,427
	3,279,996	2,634,321	3,170,039

(*) Restatement due to change in accounting policy – see additional information 2.

The attached additional information constitutes an integral part of the financial data and the separate financial information.

Aura Investments Ltd. Financial data from the consolidated balance sheets attributed to the company

	As of March 31		As of December 31
	2026	2025	2025
	Unaudited		Audited
	NIS in thousands
Current Liabilities
Credit from banking and other corporations	286,331	91,576	267,828

	As of March 31		As of December 31
	2026	2025	2025
	Unaudited		Audited
	NIS in thousands
BONDS	173,155	(*) 147,643	156,763
Liabilities to suppliers and service providers	25,987	52,029	21,838
Liabilities for providing construction services to land owners	208,493	(*) 321,072	231,089
Liabilities for payments to land owners	3,356	(*) 11,180	5,382
Payables and credit balances	45,271	60,624	53,587
	742,593	684,124	736,487
Non-Current Liabilities
Deferred taxes	25,861	(*) 5,360	24,331
BONDS	842,034	(*) 603,098	796,901
	867,895	608,458	821,232
Equity attributed to company shareholders
Share capital	47,309	47,309	47,309
Share premium	782,795	727,746	782,795
Translation reserve from foreign operations	(42,200)	(37,278)	(40,770)
Reserve from transactions with interested parties	25,277	(*) 25,277	25,277
Equity fund from transactions with non-controlling interests	73,609	-	77,001
Warrants	-	6,138	-
Treasury shares	(12,803)	(12,803)	(12,803)
Capital fund for share-based payment	5,777	2,363	4,330
Retained earnings	789,744	(*) 582,987	729,181
Total equity attributed to company shareholders	1,669,508	1,341,739	1,612,320
	3,279,996	2,634,321	3,170,039

(*) Restatement due to change in accounting policy – see additional information 2.

Ariel Pashin
CFO

Adv. Yaakov Atrakchi
CEO

Gadi Koren
Chairman of the Board

May 26, 2026
Date of approval of financial statements

The attached additional information constitutes an integral part of the financial data and the separate financial information.

Aura Investments Ltd.

Financial data from the consolidated statements of income attributed to the company

	For the three-month period ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS in thousands
Revenue
Revenue from sale of apartments and land and land development	32,170	57,663	193,159
Company's share in profits of held companies, net	55,441	(*) 82,659	237,127
Revenue from construction services	25,528	(*) 30,633	132,743
Total Revenue	113,139	170,955	563,029
Expenses
Cost of apartments and land sold and land development	(28,995)	(*) (38,075)	(132,176)
Cost of construction services	(12,220)	(*) (24,111)	(92,907)
Selling, marketing and operating expenses	(751)	(981)	(3,627)
General and administrative expenses	(3,024)	(4,261)	(14,097)
Total expenses	(44,990)	(67,428)	(242,807)
	68,149	103,527	320,222
Financing income (expenses)
Financing income	4,218	3,254	14,127
Financing expenses	(22,751)	(*) (18,500)	(80,145)
Financing income from loans to held companies	12,477	9,827	41,441
	(6,056)	(5,419)	(24,577)
Profit before taxes on income	62,093	98,108	295,645
Taxes on income	(1,530)	(*) (3,554)	(14,897)
Net profit attributed to the company	60,563	94,554	280,748

	For the three-month period ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS in thousands
Other comprehensive income (loss) attributed to the company:
Items that will be classified in the future to profit or loss, net of tax:
Adjustments arising from translation of financial statements	(1,430)	2,674	(818)
Total comprehensive profit (loss) attributed to the company	59,133	97,228	279,930

(*) Restatement due to change in accounting policy – see additional information 2.

The attached additional information constitutes an integral part of the financial data and the separate financial information.

Aura Investments Ltd.

Financial data from the consolidated statements of cash flows attributed to the company

	For the three-month period ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS in thousands
Cash flows from operating activities of the company
Profit attributed to the company	60,563	(*) 94,554	280,748
Adjustments required to present cash flows from operating activities of the company:
Adjustments to profit and loss items of the company:
Depreciation and amortization	16	21	78
Taxes on income	1,530	(*) 3,554	14,897
Company's share in profits of held companies	(55,441)	(*) (82,659)	(237,127)
Financing expenses, net	204	1,831	11,264
Interest and revaluation of loans from held companies	(12,477)	(9,827)	(41,441)

	For the three-month period ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS in thousands
Revaluation of marketable securities	(281)	(822)	(2,140)
Share-based payment	640	869	2,733
	(65,809)	(87,033)	(251,736)
Changes in assets and liabilities items of the company:
Decrease (increase) in debtors and debit balances	16,839	(33,441)	(12,409)
Decrease in inventory of buildings for sale and inventory of land for construction	6,795	(*) 35,191	43,561
Decrease in liabilities to suppliers and service providers, payables and credit balances and advances from apartment buyers	(25,408)	(*) (92,850)	(281,689)
	(1,774)	(91,100)	(250,537)
Cash paid during the period for:
Interest paid	(25,996)	(10,689)	(42,275)
Interest received	697	413	2,352
Taxes paid	(3,474)	-	(58)
	(28,773)	(10,276)	(39,981)
Net cash resulting from operating activities of the company	(35,793)	(93,855)	(261,506)

(*) Restatement due to change in accounting policy - see additional information 2.

The attached additional information constitutes an integral part of the financial data and the separate financial information.

5/27/2026 | 6:16:17 AM | v1.2.5

Aura Investments Ltd

Financial data from the consolidated reports on the cash flows attributable to the Company

	For the three-month period ended on March 31		For the year ended on December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Cash flows from investing activities of the Company
Changes in restricted deposits and short-term investments, net	1,416	28,033	29,173
Dividend received from an investee company	-	564	2,846
Investment in shares of an investee company	(5,756)	-	-
Repayment (granting) of loans to investee companies, net	(3,773)	19,850	(144,001)
Net cash provided by investing activities of the Company	(8,113)	48,447	(111,982)
Cash flows from financing activities of the Company
Short-term credit from banking and other institutions, net	18,503	11,208	187,459
Exercise of warrants for shares, net	-	-	47,861
Issuance of BONDS, net	154,337	-	251,243
Dividend distributed to the Company's shareholders	-	-	(40,000)
Repayment of BONDS	(93,017)	(27,750)	(85,501)
Net cash used in financing activities of the Company	79,823	(16,542)	361,062
(Decrease) increase in cash and cash equivalents	35,917	(61,950)	(12,426)
Balance of cash and cash equivalents at beginning of period	54,523	66,949	66,949
Balance of cash and cash equivalents at end of period	90,440	4,999	54,523

Additional Information

The accompanying additional information constitutes an integral part of the financial data and the separate financial information.

This separate financial information is prepared in a condensed format for March 31, 2026, and for the three-month period ended on that date, in accordance with the provisions of Regulation 38D of the Securities Regulations (Periodic reports and immediate reports), 1970. This separate financial information should be read in context of the financial information on the annual financial statements for December 31, 2025, and for the year ended on that date and the additional information accompanying them.

2. Principal Accounting Policies

The accounting policy applied in the preparation of this separate financial information is consistent with that applied in the preparation of the separate financial information for December 31, 2025.

Restatement due to a change in accounting policy

Further to what is stated in Note 2 to the annual financial statements, on July 7, 2025, the Securities Authority published Accounting Staff Position 11-6, regarding the accounting treatment of urban renewal transactions (hereinafter: "the Staff Position"), following a horizontal audit performed by the Authority's staff in which the accounting treatment applied by real estate development companies in these transactions was examined. The Staff Position reflects the accounting treatment that the Authority's staff expects reporting corporations to apply in relation to several material issues that arose within the framework of the audit. The Company applied the accounting treatment instructions presented in the Staff Position as a change in accounting policy. The change in accounting policy was made by way of retroactive application.

In addition, the Company applied a voluntary change in accounting policy in connection with the classification of liabilities for BONDS. This voluntary change in accounting policy was also implemented by way of retroactive application, as required in IAS 8.

Below is the impact of the policy changes described above on the Company's statement of financial position:

As of March 31, 2025

	As reported in these financial statements	Effect of policy change	As previously reported
	NIS thousands	NIS thousands	NIS thousands
Current Assets
Inventory of buildings under construction, housing units for sale and real estate for construction	528,431	241,844	286,587
Non-Current Assets
Investments in investee companies	1,045,843	(9,465)	1,055,308
Current Liabilities
BONDS	147,643	(499,045)	646,688
Liabilities to landowners	332,252	240,219	92,033
Non-Current Liabilities
BONDS	603,098	499,045	104,053
Deferred taxes	5,360	(118)	5,478
Equity
Fund from transactions with interested parties	25,277	5,511	19,766
Retained earnings	582,987	(13,233)	596,220
Total equity attributable to Company shareholders	1,341,739	(7,722)	1,349,461

Additional Information

Aura Investments Ltd

Restatement due to a change in accounting policy (continued)

Below is the impact of the policy changes described above on the Company's statement of comprehensive income:

For the period ended March 31, 2025

| | As previously reported
NIS thousands | Effect of policy change
NIS thousands | As reported in these financial statements
NIS thousands |
| --- | --- | --- | --- |
| Income | 131,411 | 39,544 | 170,955 |
| Cost of sales | (48,746) | (13,440) | (62,186) |
| Gross profit | 82,665 | 26,104 | 108,769 |
| Operating profit | 77,423 | 26,104 | 103,527 |
| Financing income (expenses), net | (1,059) | (4,360) | (5,419) |
| Profit before income taxes | 76,364 | 21,744 | 98,108 |
| Income taxes | (2,545) | (1,009) | (3,554) |
| Net profit | 73,819 | 20,735 | 94,554 |

For details regarding the board of directors' decision regarding dividend distribution, see Note 3(9) in the consolidated interim financial statements.
For details regarding the issuance of BONDS Series 19, see Note 3(3) in the consolidated interim financial statements.
For details regarding additional acquisitions of Megiddo shares, see Note 3(5) in the consolidated interim financial statements.

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Effectiveness of Internal Control

Report on Internal Control over Financial Reporting and Disclosure:

(a) Report on the effectiveness of internal control over financial reporting and disclosure according to Regulation 38(c)(a):

Management, under the supervision of the Board of Directors of Aura Investments Ltd. (hereinafter – "the Corporation"), is responsible for establishing and maintaining adequate internal control over financial reporting and disclosure in the Corporation.

In this regard, the members of management are:

Mr. Yaakov Atrakchi, CEO.
Mr. Ariel Pashin, CFO of the company.
Internal control over financial reporting and disclosure includes controls and procedures existing in the Corporation, which were designed by the General Manager and the senior-most officer in the field of finance or under their supervision or by those who actually perform the said roles, under the supervision of the Corporation's Board of Directors, and which are intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the reports in accordance with the provisions of the law, and to ensure that information that the Corporation is required to disclose in the reports it publishes according to the provisions of the law is collected, processed, summarized, and reported at the time and in the format prescribed by law.
Internal control includes, among other things, controls and procedures designed to ensure that information that the Corporation is required to disclose as stated is accumulated and transferred to the Corporation's management, including the General Manager and the senior-most officer in the field of finance or to those who actually perform the said roles, in order to enable decision-making at the appropriate time, with respect to the disclosure requirements.
Due to its structural limitations, internal control over financial reporting and disclosure is not intended to provide absolute assurance that a misstatement or omission of information in the reports will be prevented or detected.
In the quarterly report regarding the effectiveness of internal control over financial reporting and disclosure which was attached to the quarterly report for the period ended December 31, 2025 (hereinafter – "the last quarterly report regarding internal control"), the Board of Directors and Management assessed the internal control in the Corporation. Based on this assessment, the Board of Directors and Management of the Corporation reached the conclusion that the internal control as stated, as of December 31, 2025, is effective.
Until the date of the report, no event or matter has been brought to the attention of the Board of Directors and Management that would change the assessment of the effectiveness of the internal control, as found in the last quarterly report regarding internal control.
As of the date of the report, based on what was stated in the last quarterly report regarding internal control, and based on information brought to the attention of Management and the Board of Directors as stated above, the internal control is effective.

Management Certifications according to Regulation 38C(a)

Certification of General Manager

I, Yaakov Atrakchi, declare that:

(1) I have examined the quarterly report of Aura Investments Ltd. (hereinafter - the Corporation) for the three-month period ended March 31, 2026 (hereinafter - "the Reports");

(2) To my knowledge, the Reports do not include any misrepresentation of a material fact and do not lack a representation of a material fact necessary so that the representations included in them, in light of the circumstances in which those representations were included, will not be misleading with respect to the period of the Reports;

(3) To my knowledge, the financial reports and other financial information included in the Reports fairly reflect, in all material respects, the financial position, results of operations, and cash flows of the Corporation for the dates and periods to which the Reports relate;

(4) I have disclosed to the Corporation's accountant/accountants, the Board of Directors, and the Audit and Financial Reports Committee of the Corporation's Board of Directors, based on my most recent assessment of internal control over financial reporting and disclosure:

(a) All significant deficiencies and material weaknesses in the establishment or operation of internal control over financial reporting and disclosure that are reasonably likely to adversely affect the Corporation's ability to collect, process, summarize, or report financial information in a manner that casts doubt on the reliability of the financial reporting and the preparation of the financial reports in accordance with the provisions of the law; and also -

(b) Any fraud, whether material or not material, involving the General Manager or those directly subordinate to him or involving other employees who have a significant role in internal control over financial reporting and disclosure;

(5) I, alone or together with others in the Corporation:

(a) Have established controls and procedures, or ensured the establishment and existence under my supervision of controls and procedures, designed to ensure that material information relating to the Corporation, including its consolidated companies as defined in the Securities Regulations (Annual Financial Reports), 2010, is brought to my knowledge by others in the Corporation and the consolidated companies, particularly during the preparation period of the Reports; and also -

(b) Have established controls and procedures, or ensured the establishment and existence under my supervision of controls and procedures, designed to reasonably ensure the reliability of financial reporting and the preparation of the financial reports in accordance with the provisions of the law, including in accordance with generally accepted accounting principles.

(c) No event or matter occurring during the period between the date of the last report (quarterly or Periodic report, as applicable) and the date of this report has been brought to my knowledge, which would change the conclusion of the Board of Directors and Management regarding the effectiveness of the internal control over financial reporting and disclosure of the Corporation.

Nothing in the above shall derogate from my responsibility or the responsibility of any other person, according to any law.

Date: May 26, 2026

Yaakov Atrakchi - CEO

Certification of the Senior-most Officer in the Field of Finance

I, Ariel Pashin, declare that:

(1) I have examined the interim financial reports and the other financial information included in the reports for the interim period of Aura Investments Ltd. (hereinafter – the Corporation) for the three-month period ended March 31, 2026 (hereinafter – "the Reports" or "the Interim Reports");

(2) To my knowledge, the interim financial reports and the other financial information included in the Interim Reports do not include any misrepresentation of a material fact, and do not lack a representation of a material fact necessary so that the representations included in them, in light of the circumstances in which those representations were included, will not be misleading with respect to the period of the reports;

(3) To my knowledge, the interim financial reports and the other financial information included in the Interim Reports fairly reflect, in all material respects, the financial position, results of operations, and cash flows of the Corporation for the dates and periods to which the Reports relate;

(a) All significant deficiencies and material weaknesses in the establishment or operation of internal control over financial reporting and disclosure, as it relates to the interim financial reports and the other financial information included in the Interim Reports, that are reasonably likely to adversely affect the Corporation's ability to collect, process, summarize, or report financial information in a manner that casts doubt on the reliability of the financial reporting and the preparation of the financial reports in accordance with the provisions of the law; and also –

(5) I, alone or together with others in the Corporation –

(a) Have established controls and procedures, or ensured the establishment and existence under our supervision of controls and procedures, designed to ensure that material information relating to the Corporation, including its consolidated companies as defined in the Securities Regulations (Annual Financial Reports), 2010, is brought to my knowledge by others in the Corporation and the consolidated companies, particularly during the preparation period of the Reports; and also –

(c) No event or matter occurring during the period between the date of the last report (quarterly or Periodic report, as applicable) and the date of this report has been brought to my knowledge, relating to the interim financial reports and any other financial information included in the Interim Reports, which would change, in my assessment, the conclusion of the Board of Directors and Management regarding the effectiveness of the internal control over financial reporting and disclosure of the Corporation.

Nothing in the above shall derogate from my responsibility or the responsibility of any other person, according to any law.

Date: May 26, 2026

Ariel Pashin – CFO

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AI assistant

Aura — Interim / Quarterly Report 2026

6661_rns_2026-05-27_083341f1-fa14-45b8-b112-c1e630e20aae.pdf

תוכן עניינים

פרק א'

פרק ב'

פרק ג'

Aura Investments Ltd.

1. General

1.1 Areas of Activity

Marketing and Sales

1.5. Promotion of Urban Renewal Projects

1.6. Megiddo Y.K. Ltd.

1.7 Aura Commercial Centers Ltd.

1.8 Highlights of the Company's Activity During and After the Reporting Period

1.8.1 Signing of a Memorandum of Understanding with Clal Insurance Company Ltd. (hereinafter: "Clal")

1.8.2 Sale of Apartments to Rent It Residential Ltd.

1.8.3. Engagement in additional projects during the reporting period and thereafter

1.8.4. Rating of the company and its BONDS

1.8.5. Change in accounting standards and the implications for the company

1.8.6. Main Operational Parameters of the Company

1.8.7. Effects of the Security Situation

2. Board of Directors' Explanations for the Corporation's Business Status

2.1. Results of the Company's Business Activity (in thousands of NIS)

2.2. Statement of Financial Position

Financial Ratios

Liquidity

2.2.1. Cash Flows

2.2.2. Financing Sources and Material Financing Agreements During the Report Period

2.2.3. Financing Agreements

2.2.4. Working Capital

2.3. General update regarding residential construction projects in Israel

2.5. Details regarding additional projects of the company expected to be available for construction in the coming year and expected to be completed by the end of 2031

2.5.1. Additional Information

2.6 Details regarding additional projects of the company in various planning stages that have not yet begun marketing

2.6.1. Additional Information

3.1.1 Disclosures regarding the company's activity in the field of entrepreneurial real estate

Additional material events during the reporting period and thereafter

3.2 Rating of the company and BONDS

3.3 Dividend distribution and miscellaneous

3.4 Issuance of BONDS

3.5 Investments in company capital

3.6 Legal proceedings

4. Qualitative reporting regarding exposure to cyber risks, market risks and their management

4.1 Person responsible for market risk management in the corporation

4.2 Description of market risks

4.2.1 Exposure to the construction input index

4.2.2. Exposure to changes in the Consumer Price Index (CPI)

4.2.3. Exposure to changes in the Euro exchange rate

4.2.4. Exposure to changes in interest rates in the economy

4.2.5. General

4.3.1 Description of company policy in managing market risks

4.3.2 Monitoring measures and policy implementation

4.3.3 Linkage bases report and sensitivity analyses

4.3.4 Description of cyber risks and their management

4.3.5 Financial policy

5. Details regarding the company's BONDS

5.1. Raising and redemptions of BONDS during the report period and thereafter

5.2. Rating

5.3. The company's obligations to meet financial covenants - as set in the trust deeds

6. Corporate Governance Aspects

6.2. Disclosure regarding the corporation's policy on donations

6.3. Disclosure relative to directors with accounting and financial expertise

6.4. Disclosure regarding independent directors

6.5. Details regarding the internal auditor of the corporation and the audit plan

Appendix A

Information regarding very material projects

1. Imagine Project - Givatayim

2. Aura Hadera Project (Rasco)

2.1 Costs invested in the project:

2.2 Marketing of the project:

3. Aura Jerusalem Project (HaKatzin Silver)

3.1 Costs invested in the project:

3.2 Marketing of the project:

4. The Strip Project - New City Strip in Ben Zvi

4.1 Costs invested in the project:

4.2 Marketing of the project:

5. Aura Ramat HaSharon Project Phase B

5.1 Costs invested in the project:

5.2 Marketing of the project:

Aura Interim / Quarterly Report 2026