Electra Real Estate Ltd. — M&A Activity 2026

Jan 14, 2026

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2026-01-14

www.ere.co.il Date: 14/1/2026

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

Dear Sir/Madam,

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

The Company hereby announces that today it signed a transaction with a third party for the sale of all rights in a multi-family property in Katy,

Texas, USA (hereinafter: the Asset), held by the Second Fund for Investments in Multi-Family Properties in the USA and an American Limited Partner (LP), for a total consideration (100%) of approximately USD 74.5 million.

The Asset, which is managed by the Company as General Partner, was purchased in September 2019 at a price (100%) of approximately USD 57.3 million and includes 360 housing units.

The equity invested (100%) amounted to approximately USD 20.2 million. The free cash ow (100%) to be generated from the sale transaction totals approximately USD 33.8 million. In addition, during the holding period, the Asset distributed a total of approximately USD 10.5 million in regular distributions, so that in total, the Asset will have generated its investors cash ow of about USD 44.3 million as of the realization date, which reects 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 about USD 1 million,

The free cash ow to be generated for the Company from the sale transaction, beyond regular distributions received during the holding period (about USD 0.5 million), amounts to approximately USD 2.3 million, and in total, the Company will receive from this transaction cash ow of about USD 2.8 million.

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

The completion of the transaction, subject to fulllment of all conditions precedent under the sale agreement, is expected to occur in the rst quarter of 2026.

The information in this immediate report regarding the expected impact of the transaction on the Company's nancial results, the cash ow to be generated for the Company, and the timing of the completion of the transaction, is forward-looking information, assuming the completion of the agreement with the third party as mentioned above, and is based on the Company's assumptions regarding costs involved in executing the transaction and obligations for income taxes, nal price adjustments that may be in the transaction, and the timing of the fulllment of the conditions precedent for the completion of the transaction.

Such information may not materialize or may materialize differently from expected, inter alia, if the Company's said assumptions are realized differently than expected.

Electra Real Estate Ltd.

Names of signatories:

Gil Rushinek, Chairman of the Board of Directors

Amir Yaniv, CEO