Electra Real Estate Ltd. — M&A Activity 2026

Jan 14, 2026

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ELECTRA REAL ESTATE LTD

Mas. Reg. No.: 510607328

To:

• Israel Securities Authority
• Tel-Aviv Stock Exchange Ltd.

Form No.: T053 (Public)

Transmitted via MAGNA: 14/01/2026 Confirmation Number: 2026-01-006285

Immediate Report on an Event or Matter Deviating from the Usual Business of the Corporation

Regulation 36 to the Securities Regulations (Periodic and Immediate Reports), 1970

Remarks:

• Results of an issuance must be reported on T20 and not via this form.
• Reporting on bond rating or company rating must be submitted through Form T125

Report on:

[ ] Deferred report

Nature of the Event:

Entering into an agreement for the sale of a housing complex in Texas held by the second equity fund for housing complexes

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

The company hereby announces that today it has signed an agreement with a third party for the sale of all rights in a housing complex in Katy, Texas, USA (hereinafter: "the Asset"), which is held by the second fund for investments in US housing complexes and an American limited partner (LP), for a total consideration (100%) of approximately USD 74.5 million. The Asset, managed by the company as general partner, was acquired in September 2019 for a price (100%) of approximately USD 57.3 million and includes 360 housing units. The equity (100%) invested amounted to approximately USD 20.2 million. The free cash flow (100%) expected from the sale transaction is approximately USD 33.8 million. Additionally, during the holding period the asset distributed a total of approximately USD 10.5 million in regular distributions, so that total returns to investors will amount to about USD 44.3 million up to the realization date, reflecting an annual IRR of approximately 15.2% at the asset level and an equity multiple of 2.19.

The original equity invested by the company (as Limited Partner) in this transaction was approximately USD 1 million. The free cash flow that will flow to the company from the sale transaction, in addition to the current distributions received during the holding period (about USD 0.5 million), totals about USD 2.3 million, so that total proceeds to the company from this transaction will amount to about USD 2.8 million. As a result of the above, the company is not expected to record any material gain or loss in the fourth quarter of 2025. Completion of the transaction, subject to the fulfillment of all preconditions according to the sale agreement, is expected in the first quarter of 2026.

The information in this immediate report regarding the impact of the transaction on the company's financial results, the cash flow that will derive to the company, and the timing of the transaction's completion is forward-looking information, assuming the completion of the transaction with the third party as described above and based on the company's assumptions regarding the costs associated with the transaction and tax liabilities, final price adjustments that may be made in the transaction, and the timing of fulfillment of the conditions precedent for the completion of the transaction. This information is subject to change and may not materialize, or may materialize differently than anticipated, including if the company's assumptions do not hold as expected.

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2. Date and time when the corporation first learned of the event or matter:

14/01/2026 at 13:00

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			3. If the report was delayed –				the reason for its deferral:
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• 1. On the date ____ at time ____ the prevention to report was removed.
• 1. [ ] The company is a shell company as defined in the Stock Exchange by-laws.

Details of the authorized signatories on behalf of the corporation:

No	Name	Function
1	Gil Roshink	Chairman of the Board
2	Amir Yaniv	CEO

Explanation: According to Regulation 5 of the Periodic and Immediate Reports Regulations (1970), a report submitted under these regulations should be signed by those authorized to sign on behalf of the corporation. The staff position is available on the Authority's website: Click here

אלקטרה נדל"ן :Name Short

Address: Yigal Alon 98, Tel Aviv 6789141

Phone: 03-7101700 Fax: 03-7101720

Email: corpsecretary@ere.co.il Website: https://electra-re.com/

Previous names of reporting entity:

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

Electronic signatory name: Wesley Eliezer

Position: Deputy CFO

Employer: Elco Holdings Ltd.

Address: Yigal Alon 98, Tel Aviv 6789141

Phone: 03-6939678 Fax: 03-6939656 Email: eliv@elco.co.il

Securities of the corporation are listed for trading on the Tel Aviv Stock Exchange

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