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Prashkovsky Investments and Construction Ltd.

Quarterly report for the period ended

on March 31, 2026

Balance sheet date: March 31, 2026

Date of signing the report: May 20, 2026


	Subject	Page

Part A -	Material changes and innovations in the corporation's business	3

Part B -	Board of Directors' Report on the State of the Corporation's Affairs	5

Part C -	Consolidated financial statements of the corporation	43

	Solo financial statements	71

Part D -	Executive statements	80

Attached to this report is the liabilities status of the company and the consolidated companies in its financial statements, published concurrently with the publication of this report and included herein by way of reference.

Part A - Update of the Description of the Corporation's Business for the Periodic report for 2025 of Prashkovsky Investments and Construction Ltd. ("the Company")

In accordance with Regulation 39a of the Securities Regulations (Periodic and Immediate Reports), 5730-1970, the following details regarding material changes or innovations in the Company's business in any matter that must be described in the Company's Periodic report, which have occurred from the date of approval of the Company's Periodic report for 2025 (from March 11, 2026) until the date of publication of this quarterly report. It is clarified that, as a general rule, the description included in this quarterly report includes only information which is, in the Company's opinion, material information. However, in some cases and for the sake of completeness, the Company has included a more detailed description than required, including information that in its opinion is not necessarily material.

The update was prepared assuming that the reader has before them the Company's amended Periodic report for 2025 published in an amended report on March 30, 2026 (reference no.: 2026-01-029984) ("the Periodic report").

1. Update to Sections 2.4 and 18 in the Description of the Corporation's Business chapter - regarding "Residential Housing for Rent in Israel"

On March 26, 2026, Prashkovsky Yielding Assets Ltd. (a wholly-owned subsidiary of the Company) entered, in its name and on behalf of a corporation held by it (as applicable, hereinafter: "the Seller"), into a memorandum of understanding with an institutional body (hereinafter: "the Purchaser") regarding the performance of combined transactions for the sale of half of the rights in long-term rental housing projects in Lod Ben Shemen, Be'er Ya'akov, and Ganei Eylor in Ramat Gan. For further details, see the immediate report dated March 26, 2026 (reference no.: 2026-01-027851).

2. Update to Section 32 in the Description of the Corporation's Business chapter - regarding "Discussion of Risk Factors"

A. "Iron Swords" War, Operation "With Lavi" and Operation "Lion's Roar"

For details regarding the effects of the security situation, see Section 1.6 of the Board of Directors' Report for December 31, 2025, included in the Company's Periodic report.

Operation "Lion's Roar" which began in March 2026, during which fighting developed between the State of Israel and Iran, during which, among other things, Ben Gurion Airport was closed and the Israeli economy as a whole operated in a limited format, in accordance with the Home Front Command instructions. As of the date of the report, a ceasefire is allegedly declared, but the Company cannot estimate how the campaign will develop in the coming months and what effects it will have on the Company's activities.

Given that as of the date of approval of the report, this is still a "rolling" event, characterized by a certain degree of uncertainty, as of the date of approval of the report and after an examination conducted by the Company regarding its assessments of exposure to various risks, the Company believes that the impact of the security situation on its business and the Group's business so far is not material, and there has been no change in the Company's ability to continue to repay its various liabilities as they fall due.

B. Interest risks

As of the date of signing the report, bank of Israel interest stands at 4%. The increase or decrease of the interest rate by the Bank of Israel directly affects the Company's financing costs in Shekel loans based on Prime interest. As of March 31, 2026, the Company and its subsidiaries have a balance of loans bearing interest on a Prime basis in the amount of approximately NIS 2.7 billion. Accordingly, the Group's quarterly financing costs for loans on a Prime basis amount to approximately NIS 38 million. In addition, the interest rate has an impact on homebuyers due to the increased financing costs of mortgages.

Furthermore, changes in interest rates both in Israel and in the US affect the yield rates used by appraisers in determining the value of assets based on the income capitalization model.

C. Inflation risks

Further to the provisions of Section 6.3 in the Description of the Corporation's Business chapter in the Periodic report, in the last two years, significant price increases were recorded in all sectors of the economy as well as in costs related to the construction industry, and as of the report date, inflation for the last 12 months stood at approximately 1.9%. These price increases were reflected in cumulative increases in various indices (Consumer Price Index and Construction Input Index).

The Company acts to create a correlation, as much as possible and according to market conditions, between the linkage bases of its engagements and the linkage base of income from the relevant projects, thereby partially protecting itself against price increases of inputs related to project construction. For example, in financing long-term investment real estate projects, the Company tends to take credit in loans linked to the Consumer Price Index under the assumption that the values of the assets pledged against those loans are also linked to the index. Additionally, during the report period, the Company raised a series of BONDS (Series 17) in the amount of approximately NIS 400 million par value linked to the Consumer Price Index. As of March 31, 2026, the Company and its subsidiaries have a balance of loans and BONDS linked to the Consumer Price Index in the amount of approximately NIS 1,048 million. During the three months ended March 31, 2026, the Company recorded financing income in the amount of approximately NIS 0.6 million for the revaluation of loans and BONDS linked to the index, following the decrease in the index during the report period.

3. Update to Regulation 22 in the fourth chapter of the Periodic report for 2025 regarding - "Transactions with controlling shareholders or in which controlling shareholders have a personal interest"

A. On April 16, 2026, the general meeting of the Company's shareholders approved the update and extension of the Company's engagement with Ms. Maya Kardi, who is among the controlling shareholders of the Company, as the Company's legal counsel starting June 1, 2026, for an additional period of three years. For further details, see the meeting summons report published by the Company on March 11, 2026 (reference no.: 2016-01-021748) and an immediate report regarding meeting results published by the Company on April 16, 2026 (reference no.: 2026-01-035587).

B. On May 17, 2026, and May 20, 2026, the Remuneration Committee and the Company's Board of Directors, respectively, approved the terms of employment of Mr. Ben Prashkovsky (son of Mr. Yosef Prashkovsky, one of the controlling shareholders in the Company and serving as the Chairman of the Board of Directors) as an accountant in the Company's finance department, starting July 1, 2026, for a period of three years. The approval of his employment terms is subject to the approval of the Company's general meeting, which was called for June 25, 2026. For details regarding Mr. Ben Prashkovsky's employment terms, see the meeting summons report dated May 20, 2026 (reference no.: 2026-01-046867).

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Prashkovsky Investments and Construction Ltd.

Board of Directors Report on the State of the Company's Affairs
For March 31, 2026

In accordance with the provisions of Regulation 48 of the Securities Regulations (Periodic and Immediate Reports), 5730-1970, the Company's Board of Directors is pleased to submit the Board of Directors Report and the condensed consolidated and separate interim financial statements of the Company for the three-month period ended March 31 ("report period" and "balance sheet date"). Unless explicitly stated otherwise, the financial data in this report refer to the Company's consolidated financial statements as of March 31, 2026 ("the financial statements"). May 20, 2026, which is the date of approval of the report on the financial position by the Company's Board of Directors, will be referred to below as: "the date of signing the report".

Board of Directors' explanations on the state of the Company's business, the results of its operations, its equity, and its cash flows

1. General

1.1. Principal data from the description of the corporation's business

The Company operates directly and through companies that are fully controlled by the Company: A.S.I. Prashkovsky Building Company Ltd., Prashkovsky Yielding Assets Ltd. (and its subsidiaries), Prashkovsky Investments USA LLC ("A.S.I.", "Prashkovsky Yielding Assets", "Prashkovsky USA", respectively) in four fields of activity in the real estate sector which also constitute operating segments in the Company's financial statements: (a) Entrepreneurial real estate - residential construction (mainly), commerce and offices in Israel; (b) Investment property - commercial properties in Israel; (c) Investment property in the USA and (d) Rental housing in Israel.

For details regarding operating segments, see Note 4 to the financial statements attached to this report below.

1.2. Development of the Company's activities - entrepreneurial real estate field - residential construction in Israel

	Residential			Commerce and Offices
	Total units	Units (Company's share)	Units built for third parties (in combination/urban renewal transactions)	Total Sqm	Company's share (Sqm)	Construction services transactions for third parties (Sqm)
Under construction	1,387.0	1,298.0	89.0	96,141	54,438	41,703
Under planning	742.0	697.3	44.7	22,896	11,448	11,448
Land reserves	2,244.9	1,815.8	429.1	36,692	34,924	1,768
Urban renewal reserves	2,871.5	2,124.5	747.0	93,125	93,125	-
Total	7,245.4	5,935.6	1,309.8	248,854	193,935	54,919

Under the entrepreneurial real estate segment, as of the balance sheet date, the Company has approximately 7,245.4 housing units (of which approximately 5,935.6 housing units are for marketing by the Company) and approximately 248,854 gross Sqm designated for offices and/or commercial use (of which approximately 193,935 gross Sqm are intended for sale) in various stages of construction, planning, and land reserves.

In addition, the Company classifies into this segment the revenues from construction services and the costs for construction services of the portion (approximately 54,919 Sqm) in several projects among them, a mixed-use project (offices, commerce, and residential) in Herzliya, which it is building for third parties with whom Prashkovsky Yielding Assets entered into a construction services transaction as well as the portions

which the Company expects to build for third parties within the framework of a joint transaction in Ness Ziona and within the framework of a combination in the HaMahuga complex in Tel Aviv.

As of the balance sheet date, the Company is engaged in the construction and marketing of approximately 54,438 Sqm of offices and commerce intended for sale, as well as the construction of 1,387 housing units, of which the Company has 1,298 housing units for marketing (the gap as mentioned stems from the construction of 89 units for landowners in projects in Bnei Dan in Tel Aviv and Herzliya Southgate), of which 909 housing units and 44,667 Sqm of offices remain for sale. Additionally, the Company has 11 housing units remaining for marketing in the Herzliya Gan Rashal project, 2 housing units in the Lod Ben Shemen project, and 4 housing units in the Haifa Ramat HaNasi Phase A project, whose construction was completed during the report period. For details, see also subsection (a) below.

Additionally, as of the balance sheet date, the Company is engaged in the construction of approximately 41,703 Sqm of office, commercial, and parking areas within the framework of construction services for private landowners in phases A and B in the Herzliya project as mentioned above. For details, see also subsection (b) below.

Beyond the housing units under construction, as detailed above, the Company has rights (together with landowners) to 742 units as well as approximately 22,896 Sqm of offices and commerce that are in the planning and building permit issuance stages. For details, see also subsection (d) below.

In addition, the Company has rights (together with landowners) to approximately 2,244.9 units and approximately 36,692 gross Sqm designated for employment presented under land reserves, for details (see also subsection (e) below) as well as rights of reserves within the framework of several urban renewal projects in various cities across the country where tenant signatures on final agreements are being carried out concurrently with the promotion of TBP for approximately 2,871.5 housing units and approximately 93,125 Sqm designated for employment. For details, see also subsection (f) below.

Beyond the housing units as mentioned above, the Company has a plot in Rishon LeZion on which a TBP is being promoted. For details, see also subsection (g) below.

A. Below is the detail regarding sales and recognition of gross profit in projects under marketing and execution as of March 31, 2026:

Project Name (Company's share in the project)	Entrepreneur	Executing Contractor	No. of units for sale in the project	No. of units/sqm sold from Jan 1, 2026, until March 31, 2026	Total units/sqm sold until March 31, 2026	Recognition of gross profit by units/sqm sold and according to cumulative execution rates until Dec 31, 2025		Recognition of gross profit in the report period from units/sqm sold and according to execution rates as of March 31, 2026
						Gross Profit (NIS in millions)	Number of units/sqm sold and execution rate by which gross profit was recorded	Gross profit in the report period (NIS in millions)	Number of housing units/sqm sold and execution rate by which gross profit was recorded in the report period
HAGADA Bnei Dan Tel Aviv Project (100%)	The Company	A.S.I.	52 units	-	39 units	26.6	39 units (61.3%)	5.6	39 units (71.9%)
Herzliya Pitusch Southgate Phase A (100%)	Prashkovsky Yielding Assets	A.S.I.	24,932 Sqm	51 Sqm	9,771 Sqm	33.9	9,720 Sqm (79.0%)	5.2	9,771 Sqm (85.4%)
Ashdod Phase A (100%)	The Company	A.S.I.	230 units	-	41 units	4.4	41 units (12.3%)	2.5	41 units (19.3%)
Haifa Lincoln Slopes - Mehr Lamishtaken (100%)	The Company	A.S.I.	453 units, of which 302 units are marketed within Mehr Lamishtaken and 151 units in the free market	26 units	309 units	**(34.9)	283 units (6.4%)	1.4	309 units (11.1%)
Sha'ar Ha'ir Nehovot - Phase A (100%)	Prashkovsky in the 1000	A.S.I.	240 units and 18,529 Sqm of offices	-	-	-	-(Start of execution works) (Marketing not yet started)	-	-(Start of execution works) (Marketing not yet started)
Herzliya Southgate Phase B (71%)	Prashkovsky Yielding Assets	A.S.I.	93 units and 10,977 Sqm of offices	-	-	-	-(Start of execution works) (Marketing not yet started)	-	-(Start of execution works) (Marketing not yet started)

Project Name (Company's share in the project)	Entrepreneur	Executing Contractor	No. of units for sale in the project	No. of units/sqm sold from Jan 1, 2026, until March 31, 2026	Total units/sqm sold until March 31, 2026	Recognition of gross profit by units/sqm sold and according to cumulative execution rates until Dec 31, 2025		Recognition of gross profit in the report period from units/sqm sold and according to execution rates as of March 31, 2026
						Gross Profit (NIS in millions)	Number of units/sqm sold and execution rate by which gross profit was recorded	Gross profit in the report period (NIS in millions)	Number of housing units/sqm sold and execution rate by which gross profit was recorded in the report period
Ashdod Phase 8 (100%)	The Company	A.S.I.	230 units	-	-	-	- (Start of execution works) (Marketing not yet started)	-	- (Start of execution works) (Marketing not yet started)
Total			1,298 units and 54,438 Sqm	*26 units + 51 Sqm	363 units + 9,771 Sqm	30.0	-	**14.7	-

During the report period, an additional 8 units were sold in projects completed in previous years and 3 units were sold in an agreement contingent upon receiving a building permit in the Beresheet project in Kiryat Hagana in Rehovot, so that a total of 37 units + 51 Sqm of offices were sold during the report period.
** In addition to the gross profit detailed in the table, the Company has additional gross profit from the sale of apartments in the report period in the amount of approximately NIS 4.2 million for completed projects, so that the total gross profit from the sale of apartments in the report period amounted to approximately NIS 18.9 million.

B. Below is the detail regarding construction services revenues included in the entrepreneurial real estate field in Israel (NIS in millions):

	Construction services for landowners		Construction services in combination and urban renewal transactions		Total from execution of works
	For the three-month period ended March 31, 2026	For the year 2025	For the three-month period ended March 31, 2026	For the year 2025	For the three-month period ended March 31, 2026	For the year 2025
Revenues	17.4	126.4	11.8	57.3	29.2	183.7
Expenses	11.8	98.3	7.9	42.3	19.7	140.6
Gross profit (loss)	5.6	28.1	3.9	15.0	9.5	43.1

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C. Below is a breakdown of the sales volume in the Company's projects during the reporting period compared to the corresponding period last year:

Project Name (Company's share in the project)	No. of units/sqm for sale in the project	Total units/sqm sold cumulatively as of 31.03.2026	Sales from 1.1.2026 to 31.03.2026		Sales from 1.1.2025 to 31.03.2025		Sales from 1.4.2026 until the date of signing the report
			Units/Sqm	In NIS millions (excluding VAT)	Units/Sqm	In NIS millions (excluding VAT)	Units/Sqm	In NIS millions (excluding VAT)
HAGADA Project Bnei Dan Tel Aviv (100%)	52	39	-	-	-	-	1	4.8
Prashkovsky in Ben Shemen (100%)	66	64	-	-	-	-	-	-
Herzliya Gan Rashal (71.4%)	115	104	5	17.4	9	40.2	1	3.8
Haifa Ramat HaNassi Phase A (100%)	204	200	3	6.7	4	12.9	-	-
Ashdod Phase A (100%)	230	41	-	-	30	89.0	-	-
Herzliya Pituach Southgate Phase A (100%)	24,932 sqm	9,771 sqm	51 sqm	1.1	-	-	-	-
Haifa Lincoln Slopes - Buyer's Price (100%)	453	309	26	21.2	-	-	4	6.9
Rehovot Kiryat HaHagana (100%)	92	3*	3	7.9	-	-	5	15.3
Herzliya Pituach Southgate Phase B (100%)	93 units and 10,977 sqm of offices	-	-	-	-	-	1,827 sqm	38.6
Total	1,305 units + 35,909 sqm	760 units + 9,771 sqm	37 units + 51 sqm	54.3 NIS millions	43 units	142.1 NIS millions	11 units + 1,827 sqm	69.4 NIS millions

The contracts in the "Rehovot Kiryat HaHagana" project are conditional on obtaining a building permit within 12 months from the date of their signing.

Details regarding contractor promotions:

As part of the signed sales agreements, some apartment buyers were granted loans where the interest is paid in advance to a financing body by the Company, up to a total of NIS 1 million (hereinafter: "Developer Loan"). The Company's sales agreement with the buyer states that the Company has the right to instruct the buyer to approach a financing body and cancel the said loan, provided that the Company takes upon itself the full interest payment. We note that if the Company chooses the developer loan track, then the financing body examines the buyer's repayment ability not only in relation to the contractor loan, but to the best of the Company's knowledge, also in relation to the mortgage that the buyer will take at the time of delivery of the housing units from the banking entity. We note that at the time of delivery of the housing units from the banking entity. In the first quarter of 2026, no developer loans were granted. In the first quarter of 2025, the scope of developer loans was immaterial, amounting to 4 transactions out of 45 transactions signed. We note that if the Company chooses the developer loan track, then the financing body examines the buyer's repayment ability not only in relation to the contractor loan, but to the best of the Company's knowledge, also in relation to the mortgage that the buyer will take at the time of delivery of the housing units from the banking entity. The amount of financing expenses paid by the Company for the developer loans in the first quarter of 2025 totaled approximately NIS 0.2 million.

Details regarding transaction cancellations:

The Company has some exposure to non-compliance by buyers with their obligations to the Company when they are required to complete all payments according to the sales agreement, although in the Company's estimation, given the preliminary examination, both due to the imposition of a significant fine for transaction cancellation applicable to the buyer and in light of the Company's cumulative experience, the probability that a buyer will not complete the transaction is very low to negligible and non-existent. During the reporting period and in the corresponding period last year, no sales contracts were canceled.

D. Below is a breakdown of the Company's projects that are in various stages of planning and issuance of building permits whose marketing has not yet begun as of March 31, 2026 $(^{*})$ :

Project Name (Company's share in the project)	No. of units in the project
Kiryat HaHagana East Rehovot Lot 2003 (Ownership + Combination) (100%)	106 units (92 units for marketing) (a)
Haifa Ramat HaNassi Phase B (100%)	238 units (b)
Eleph Complex Rishon LeZion Lot 1072 Residential (Ownership + Combination (49%) (100%)	76 units (45.3 units for marketing) (c)
Herzliya Galil Yam 206 units (100%)	206 units (d)
Rishon LeZion Chatzavim - Target Price (100%)	116 units (e)
Ness Ziona Lot 4008A - Phase A (50%)	22,896 sqm (11,448 sqm for marketing) (f)
Total	742 units and 22,896 sqm for employment and commerce (697.3 units and 11,448 sqm for marketing)

(*) Except for the Kiryat HaHagana project whose marketing began during the reporting period.
(a) Between 2022 and 2024, the Company entered into several cash and combination transactions (at a rate of $43\%$ ) regarding Lot 2003 in Rehovot, such that the Company holds and/or entered into combination transactions regarding all rights in the lot, and as of the date of the report, it is working to obtain a building permit for the project. During the reporting period, the Company began marketing the project and 3 contracts were signed conditional on obtaining a building permit within 12 months from the date of their signing.
(b) In July 2021, the Company entered into a contract with a third party not related to the Company and/or its controlling shareholders (hereinafter in this section: the "Seller"), according to which the Company will purchase from the Seller its rights in Lots 101, 102 and 105 in Blocks 28, 29 and 32 in Parcel 12721 in the Ramat HaNassi neighborhood in Haifa, an apartment built by the Seller in the "Ramat HaNassi" project in Haifa as well as building rights not utilized by the Seller on adjacent land (hereinafter in this section: the "Land"). According to TABA HP/MK/919 D, there were approved building rights on the Land for the establishment of approximately 352 units and potential for additional units, subject to approval of future reliefs and TABA under the authority of the planning committees. In 2023, a building permit was received for Phase A of the project including 204 units whose construction was completed during the reporting period. In addition, as stated above, the Company had rights to build 148 additional units in Phases B and C of the project. The Company worked to promote a TABA to add 216 units to these phases and in October 2024 the TABA was approved subject to amendments, so that subject to the issuance of building permits, Phase B of the project currently in planning stages will include 238 units and Phase C of the project, which is under the land reserves section, will include 126 units. In April 2026, an excavation and shoring permit was received for Phase B of the project and work began.
(c) Between 2020 and 2023, the Company entered into several cash and combination transactions (at a rate of $51\%$ ) in connection with Lot 1072 in the Eleph Complex in Rishon LeZion. As of the report date, the Company is working to obtain a building permit for the project.
(d) In December 2022, the ILA Tenders Committee approved the Company's winning of a tender for the purchase of lease rights in Lots 105, 111 and 112 in Block 6423 in Galil Yam - Herzliya designated, according to plan TML-1068, for high-density construction of 206 units and approximately 1,612 gross sqm for commercial use. It is clarified that the commercial areas are intended for lease and will be presented under the investment property segment. In February 2026, an excavation and shoring permit was received for the project and work began.
(e) In December 2023, the ILA Tenders Committee approved the Company's winning of a tender in the "Housing at a Target Price" track for the purchase of lease rights in Lot 101 in Block 7329, part of Parcels 52 and 65 in the Chatzavim neighborhood in Rishon LeZion (in this section: the "Project Land"). According to plans 413-1087915 and 413-0465369 (RZ/1/155) applicable to the Project Land and according to the tender conditions, a project can be established on the Land that will include 116 units, where a total of 93 units will be marketed by the Company as part of the "Target Price" track at a price according to the discount rate set in the tender and 23 units will be marketed by the Company at free market prices and conditions.
(f)

On August 1, 2021, Prashkovsky Yielding won together with a private company controlled by Mr. Aryeh Prashkovsky, who is the brother of Mr. Arnon Prashkovsky, one of the controlling shareholders in the Company, in a bidding process, as part of a receivership procedure, for the purchase in equal parts of all rights in the land known as Lot 4008A in Block 3850 in Ness Ziona including in Phase A rights to establish 22,896 gross sqm in employment and commercial designation (hereinafter in this section: the "Land"). The win in the bidding and the purchase of the Land as stated were approved by the court on November 25, 2021. The project will be carried out under a joint venture named "Prashkovsky in the Science Park" held in equal parts by Prashkovsky Yielding and a company controlled by Aryeh Prashkovsky. Phase A of the project including the rights detailed above is in planning and licensing stages. In addition, the joint venture is promoting in Phase B a TABA to increase the areas to a total sum of 46,285 sqm for employment and commercial designation as well as approximately 4,800 sqm of special housing (approximately 100 micro units). On October 27, 2025, the partners in the joint venture decided on a change of designation, so that the project areas would be offered for sale instead of lease. Following the above, the Company classified the project in the annual financial reports for 2025 from the investment property section to the inventory of buildings under construction section.

A. Below is a breakdown of the Company's land reserves as of March 31, 2026:

Project Name (Company's share in the project)	No. of units/sqm in the project
Beer Yaakov Lot 133 (100%)	100.9 units (a)
Haifa Ramat HaNassi Phase C (100%)	126 units (b)
Eleph Complex Rishon LeZion Lot 1061 Residential (Option for combination transaction 47.5%)	120 units (57 units for marketing) (c)
Rehovot East TML 3003 - Cash (100%)	757.5 units + 27,240 sqm for employment (d)
Rehovot East TML 3003 - Combination (57%)	317.5 units (181 units for marketing) (e)
The Mahoza Florentin Tel-Aviv (Ownership + Combination 50.25%)	151 units + 4,335 sqm for employment and commerce (89.4 units + 2,567 sqm for marketing) (f)
Netanya Aliyah Complex - Pinui Binui (100%)	672 units (504 units for marketing) + 5,117 sqm for employment and commerce (g)
Total	2,244.9 units + 36,692 sqm for employment and commerce (1,815.8 units + 34,924 sqm for marketing)

(a) In December 2020, the ILA Tenders Committee approved the Company's winning of a tender for the purchase of lease rights in a lot for high-density construction of a total of 100.9 units in an unspecified part known as Lot 133, part of Parcel 162 in Block 4041 in Beer Yaakov designated for building 174 units in high-density construction. It should be noted that the lease right of the Land refers to the relative share of the KKL, according to an allocation and balancing table that is an integral part of plan MM/4/1517 according to which KKL was allocated rights to establish 100.9 units out of a total of 174 units in the lot. The Company is promoting the project planning, where its implementation is subject, among other things, to the Company's engagement with the other rights holders in the lot.

(b) See subsection (b) under the breakdown of the Company's projects in various stages of planning and building permit issuance above.

(c) On October 29, 2023, the Company entered into an option agreement (without consideration) with third parties not related to the Company and/or its controlling shareholders to enter into a combination transaction at a rate of 52.5% with those landowners holding the rights in Lot 1061 in Parcel 10 in Block 3947 according to TABA No. RZ/7/1000/1 including rights to build 120 residential units. The option is exercisable by the Company from the date of a final decision by the Local Planning and Building Committee to grant a building permit and up to 24 months from the date of signing the option agreement. In September 2025, the parties signed an agreement to extend the option until 28.07.2026.

(d) On December 29, 2022, the Committee for Preferred Housing Complexes approved plan TML 3003 (hereinafter in this section: the "Plan"). As of March 31, 2026, the Company purchased rights in areas included in the Plan in several transactions totaling approximately 144 dunams (in this section: the "Company Areas"). According to the Plan, the Company will be granted rights in the Company Areas to build approximately 757.5 residential units and rights in an area of approximately 27,240 sqm (approximately 18,573 primary sqm plus approximately 8,667 service sqm) in employment designation. The residential units and employment areas are presented under the residential real estate development segment in Israel as they are intended for sale.

(e) In addition to the transactions for purchasing the Company Areas as mentioned in subsection (d) above, until the balance sheet date, the Company entered into several combination transactions with sellers (third parties) holding rights within the framework of plan TML 3003 holding rights for approximately 317.5 units. In all transactions, a combination rate of 43% was set for the residential areas.

(f) Starting from June 2018, the Company entered into a combination transaction with third parties not related to the Company and/or its controlling shareholders, who are the rights holders of the land on HaMahoza Street in Tel Aviv-Yafo (in this section: the "Rights Holders" and "Land", respectively), at a rate of 49.5% (which was later updated to 49.75%, where the Rights Holders could choose construction services transactions at a rate of up to 18% of their rights and the balance in a combination transaction at the updated rate as mentioned). In the complex where the Land is located, plan No. 507-0774752 (TA/MK/4484 - HaMahoza) was approved in December 2023, which includes plot number 1, comprising approximately 151 housing units with a floor area of approximately 93 meters, approximately 3,468 gross sqm of offices and approximately 867 gross sqm of commercial space. The Rights Holders with whom the Company entered into combination transactions, as mentioned above, hold approximately 69.4% of plot number 1. In addition, in December 2022, the Company entered into an agreement according to which, among other things, the Company will purchase in cash a part representing approximately 25.3% of plot number 1 on the Land. The Company will work to purchase the remaining 5.3% of the rights in plot number 1 in order to implement the project.

(g) During 2022, the Company began signing the rights holders of apartments in buildings located at 1-8 HaAliyah Street in Netanya on an urban renewal agreement, according to which the landowners will receive new apartments in exchange for evacuating the old apartments plus space as is customary in projects of this type (subject to planning authority approval and measurement). The Company finished the promotion of the TABA for the complex and the plan was approved and published in the records on 28.8.25. According to the TABA, the project includes rights to build 672 units (including 168 units for landowners) as well as rights in an area of approximately 5,117 sqm for employment and commercial designation. As of the report date, the Company has signed the required majority of Pinui Binui agreements and against some of them, lawsuits were filed against refusing tenants. The residential units and employment and commercial areas are presented under the residential real estate development segment in Israel as they are intended for sale.

E. Below is a breakdown of urban renewal projects - where tenant signings are being carried out as of March 31, 2026:

Project	Expected date for TABA approval	Expected date for building permit issuance	Expected income (NIS millions)	Expected gross profit (NIS millions)	Units before	Signing percentage	Estimate of units/sqm to be built	Comments
Bat Yam - Raziel-Eli Cohen Complex	Year 2026	Year 2028	1,438	209	208	75%	Approx. 657 units
and approx. 48,000 sqm of commerce and employment	For details regarding the urban renewal project in Bat Yam, Raziel-Eli Cohen complex, see section 11.4(d)(a) of the Corporation Business Description chapter in the Company's Periodic report for 2025. On 29.12.25, the committee decided to approve the plan for validation where, among other things, the committee decided to approve an addition of 157 housing units to the complex, totaling 657 units and approximately 48,000 sqm of employment and commerce. The Bat Yam Municipality filed an appeal to the National Council against the decision of the District Committee and the Company filed its response to the appeal. A hearing on the appeal is scheduled for 20.5.26.

Project	Expected date for TABA approval	Expected date for building permit issuance	Expected income (NIS millions)	Expected gross profit (NIS millions)	Units before	Signing percentage	Estimate of units/sqm to be built	Comments
Rishon LeZion - HeHayal HaAlmoni (Company's share 75%)	Year 2026	Year 2028	1,226	272	204 (Company share 75%)	80%	Approx. 770 units approx. 4,500 sqm commerce and approx. 15,000 sqm employment (Company share 75%)	For details regarding the urban renewal project in Rishon LeZion HeHayal HaAlmoni, see section 11.4(d)(b) of the Corporation Business Description chapter in the Company's Periodic report for 2025. In March 2025, the Company submitted all plan documents to the District Committee. The District Committee convened a steering committee meeting in which the Company participated together with representatives from the Municipality. During the committee hearing, the Company was asked to examine several adjustments and changes such as: the issue of arranging parking under public areas, reaching understandings and an agreement with the Municipality regarding the management principles of the complex, testing and adapting the economic report according to Standard 21, etc. The plan passed the threshold conditions in early 2026 and on 27.4.26, a hearing was held regarding the deposit of the plan in the District Committee. According to the District Committee's decision dated 3.5.26, the Committee decided on the approval of the plan for deposit under conditions. The Company is expected to hold an update conference for tenants and proceed with tenant signings.

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Project	Expected date for TBP approval	Expected date for issuing building permits	Expected revenues (in NIS millions)	Expected gross profit (in NIS millions)	Units before	Percentage of signatures	Estimate for number of residential units / sqm to be built	Remarks
Beer Yaakov - Rabbi Meir Baal HaNess 40-46	Consolidation and distribution plan approval expected in 2026 (TBP exists)	Year 2028	553	104	64	70%	Approx. 274 units and approx. 1,500 sqm of commercial areas	For details regarding an urban renewal project in Beer Yaakov Rabbi Meir Baal HaNess 40-46, see section 11.4(d)(d) to the chapter description of the corporation's business in the Periodic report of the company for 2025. On September 15, 2025, a hearing was held regarding objections to the plan, and in accordance with the decision of the local committee, another alternative for the consolidation and distribution table was submitted to it on September 30, 2025. On December 24, 2025, the local committee decided on a "special" hearing regarding the objections and the claim of the ILA which claimed an error in the tables in the incoming state. Publication according to Section 106b was published on May 4, 2026, and the company is considering submitting its objection to the publication.
Rishon LeZion - Baron Hirsch Complex	Year 2027	Year 2029	514 in the initial complex	104 in the initial complex	84 in the initial complex176 in the expanded complex	85% in the initial complexTenants not yet signed in the expanded complex	Approx. 283 units, in the initial complexApprox. 620 units in the expanded complex	For details regarding an urban renewal project in Rishon LeZion Baron Hirsch complex, see section 11.4(d)(e) to the chapter description of the corporation's business in the Periodic report of the company for 2025.

As of the report date, the projects intended for evacuation-construction described in this section above are in a preliminary stage, and therefore the company's estimates regarding the rate of tenant signatures in the project and whether the tenants will agree to sign at all, whether the projects will ultimately be carried out and at what date they will be performed, the number of buildings and units that will be built in them, which construction areas will be approved, whether the TBP submitted for them (if and to the extent submitted) will be approved and under what conditions, etc., are preliminary and may change even materially. Furthermore, the company's estimates regarding expected revenues and gross profit constitute forward-looking information, as the term is defined in the Securities Law, 1968. This information constitutes an estimate only and is based on data in the company's possession as of the date of signing the report as well as on future data whose materialization is uncertain and not under the company's control. Therefore, the said estimate may not materialize or may materialize in a different or partial manner than anticipated.

It should be emphasized that there is no certainty that the company will perform the projects detailed above and in the said scope. Furthermore, the economic feasibility of the projects described above may change, as the company may choose not to promote the projects (all or part of them), inter alia, due to lack of economic feasibility.

F. Below is detail regarding land reserves for which there is a valid TBP as of March 31, 2026 - Rishon LeZion Block 3633

The company purchased 61.1% of lots 108, 109 and 111 in block 3633 in Rishon LeZion (the remaining approx. 38.9% of the rights in the lots are held by the controlling shareholders in the company, with whom the company entered into a partnership agreement for the purpose of land development until the approval of a detailed TBP regarding the real estate). Regarding the said lots, there is a comprehensive TBP RZ/2030 approved in July 2017, and there is also a detailed TBP in preparation on an area of approx. 222 dunams designated for residential, commercial, offices and assisted living, which is expected to include, inter alia, approx. 1,791 units, of which 269 units are for long-term rental. Out of the lots purchased by the company, approx. 20 dunams are expected to be included in the areas of the plan currently in preparation (the company has 61.1% out of the 20 dunams).

1.3. Development of the Company's activities in the investment real estate field - the commercial properties field in Israel

On March 27, 2025, Prashkovsky Yielding entered into a transaction to sell its holdings (25%) in 'Japan-Or Center' in Rehovot, which includes commercial and office space, for a total of approx. NIS 97 million. The complex on which the project is located constitutes lot 1 in plan RM/MK/6/2110 and is expected to receive rights in plan VATMAL/1086 which marks the property as plot number 701, for which outline building rights were determined for commerce, employment and transportation. In November 2024, the local committee of the Rehovot Municipality deposited a detailed plan, within which 2 new consideration lots (lots 3 and 5) were allocated to the complex as a whole, including rights for approx. 50,602 sqm (gross) of offices and approx. 2,850 sqm (gross) of commerce, where Prashkovsky Yielding's share is 25% of the said rights. The sale as mentioned above did not include the additional building rights as far as they will be added in new lots that will be allocated to Prashkovsky Yielding (25%).
Prashkovsky Yielding holds (85%) together with a third party (15%, seller in a combination transaction) in lot 201 in Beer Yaakov on which a building was established including 6 residential units and 822 sqm of commerce (primary). Originally the apartments and commercial spaces were intended for rental and accordingly were presented under the investment real estate item. In 2023, Prashkovsky Yielding decided to market the 6 residential units for sale (the seller in the combination transaction will receive his share in the project in commercial space only) and accordingly the costs for the apartments were reclassified from the investment real estate item to the inventory of buildings under construction item, while Prashkovsky Yielding's commercial spaces remained under the investment real estate item - commercial properties in Israel. In 2024 building construction was completed, but as of the date of publication of the report, an occupancy permit (Form 4) has not yet been issued for the commercial part due to disagreements that arose with the seller in the combination transaction.
Prashkovsky Yielding holds together with Migdal Insurance Company ("Migdal") the Millenia project located in the "1000 Complex" in Rishon LeZion and includes two office buildings with a commercial plaza between them including approx. 58 thousand meters for marketing as well as an underground basement including parking and warehouses on an area of approx. 34 thousand sqm. As of the report date, Prashkovsky Yielding and Migdal have entered into lease agreements regarding office and commercial space in a scope of approx. 31 thousand sqm (approx. 52% of the space in the project) in exchange for annual rent in a scope of approx. NIS 39.5 million (Prashkovsky Yielding's share is 50%).
The Nativay Dor in Neve Doron company (a sub-subsidiary of the company) holds a project in West Ramla which includes, inter alia, a commercial front and an office floor which are included in the investment real estate segment - commercial properties in Israel.

As of the report date, there are lease agreements for all the spaces in the project (approx. 2,000 sqm of commercial space and approx. 1,483 sqm of office space) in exchange for annual rent in a scope of approx. NIS 4.2 million.

The Nativay Dor in Ben Shemen company (a sub-subsidiary of the company) holds a project in the Nofei Ben Shemen neighborhood in Lod which includes, inter alia, a commercial front on an area of approx. 1,800 sqm which are included in the investment real estate segment - commercial properties in Israel.

As of the report date, there are lease agreements for approx. 1,142 sqm of commercial space in exchange for annual rent in a scope of approx. NIS 1.4 million. See also section 1 in part A - update of the corporation's business description for the periodic report for 2025 above regarding a memorandum of understanding signed in connection with the sale of half of the rights in the project.

In 2020, Prashkovsky Yielding purchased lot 541 in part of plot 228, block 3946, on a total area of approx. 23,491 sqm in Rishon LeZion - "the 1000 Complex" (in this section: "the Real Estate").

According to a new plan approved in 2024, a project can be established on the real estate that will include, inter alia, approx. 5,700 sqm (primary) of commercial space as well as a hotel with 250 rooms on an area of approx. 15,000 sqm (primary) which will be included in the investment real estate segment - commercial properties in Israel. As of the report date, Prashkovsky Yielding is promoting the design of the project.

On December 13, 2021, Prashkovsky in Aleph (a sub-subsidiary of the company) won, in an auction within a receivership process, the purchase of rights in the real estate known as plots 8 and 9 in block 3696 in Rehovot, in lots 1000 (approx. 15,834 sqm) and A1000 (approx. 1,321 sqm) and part of lot 1004 (intended for private open space). The win was approved by the court on January 3, 2022. Stage A1 in the project, for which a building permit was received in November 2025, also includes, inter alia, a commercial floor that will be included under the investment real estate segment - commercial properties in Israel.
In December 2022, the ILA tender committee approved the company's win in a tender for the purchase of lease rights in lots 105, 111 and 112 in block 6423 in Glil Yam - Herzliya which are intended according to plan VATMAL-1068 to include, inter alia, a commercial front on an area of approx. 1,612 sqm (gross) which will be included in the investment real estate segment - commercial properties in Israel. The project is in the planning stages.
On December 29, 2022, the Committee for Preferred Housing Complexes approved plan VATMAL 3003 (hereinafter in this section: "the Plan"). By March 31, 2026, the company purchased rights in areas included in the plan in several transactions at a cumulative scope of approx. 144 dunams (in this section: "the Company Areas"). In addition, the company entered into several combination transactions with landowners in the plan. According to the plan, rights will be granted to the company in the company areas and in combination transactions, inter alia, in an area of approx. 8,613 sqm (approx. 7,671 sqm primary plus approx. 942 sqm service) designated for commerce, which will be included in the investment real estate segment - commercial properties in Israel.
In January 2023, Prashkovsky Yielding entered into a conditional combination transaction with the rights owners, who are third parties not related to the company and/or its controlling shareholders, regarding real estate known as plots 188, 189, 190, 284, 286, 310 and part of plots 308 and 536 in block 7093 and/or any plot resulting or splitting therefrom, in Tel Aviv-Jaffa on Ginosar, Ben Shemen and Moses Yehuda streets and Tel Aviv-Jaffa (Ben Shemen Complex), (in this section: "the Transaction", "the Real Estate", "the Project" and "the Rights Owners", as applicable), for a land unit with a total area of approx. 2 dunams (in this section: "the Land Unit"). In the land unit, urban building plan no. 507-0157305, known by its name "Tara Complex" in Nahalat Yitzhak TA/4068, was approved for validation.

Within the transaction, and subject to the fulfillment of all necessary conditions for carrying out the project, Prashkovsky Yielding will receive approx. 44 thousand sqm designated for offices and commerce (based on volume calculation), which will be included in the investment real estate segment - commercial properties in Israel. While the rights owners in the real estate will be entitled to approx. 141 residential units as well as a cash consideration to be paid in cash in the total amount of approx. NIS 90 million (plus VAT). Additionally, the rights owners will be entitled to an additional consideration for profits, as far as the profit rate of Prashkovsky Yielding from the project exceeds a profitability rate as determined in the agreement within the transaction.

According to the agreement, if according to the zero report, the project's profitability stands at 17% or less, Prashkovsky Yielding will be entitled to send the rights owners, within 14 days from the date of providing the zero report to the rights owners, a written notice regarding the cancellation of the agreement. By agreement of the parties, in July 2024, the said period was extended to 90 days.

In October 2024, Prashkovsky Yielding and the rights owners signed an addendum to the agreement, according to which the date for examining the suspensive condition regarding the project's profitability as mentioned above will be examined at the earlier of 30 days from the approval of an architectural design plan for the project or 30 months from the date of signing the addendum to the agreement. Additionally, Prashkovsky Yielding committed to continue promoting the project planning at its expense according to the mechanism set in the addendum to the agreement.

In December 2023, the ILA tender committee approved Prashkovsky Yielding's win in a tender for the purchase of lease rights in lot 205, plot (in part) 27 in block 6178 in Ganei Azar - Ramat Gan which are intended according to plan VATMAL-1038 to include, inter alia, a commercial front on an area of approx. 770 sqm (gross) which will be included in the investment real estate segment - commercial properties in Israel. During the report period, an excavation and shoring permit was received and works began after the report date. See also section 1 in part A - update of the corporation's business description for the periodic report.

for the year 2025 above in connection with a memorandum of understanding signed regarding the sale of half of the rights in the project.

In March 2025, the ILA tender committee approved the final win of Prashkovsky Yielding in the tender. The win includes the purchase of lease rights in lots 2203 and 2207 plots (in part) 23 in block 6900, 4 in block 6885, 204 in block 6896 and 23 in block 6900 in Sde Dov in Tel Aviv on an area of approx. 9,540 sqm, which are intended, according to plan TA/507-0915108 1/4444 to include, inter alia, approx. 4,618 sqm of employment space and approx. 2,897 sqm of commercial space which will be included in the investment real estate segment - commercial properties in Israel. Prashkovsky Yielding is promoting the planning of the project.

In March 2025, the ILA tender committee approved the final win of Prashkovsky Yielding in the tender. The win includes the purchase of lease rights in lot 2102 plots (in part) 20 in block 6885 and 28-29 in block 6896 in Sde Dov in Tel Aviv on an area of approx. 7,067 sqm, which is intended, according to plan TA/507-0915108 1/4444 to include, inter alia, approx. 1,766 sqm of commercial space which will be included in the investment real estate segment - commercial properties in Israel. Prashkovsky Yielding is promoting the planning of the project.

See also details in section 16 of the first part in the reports for 2025 - corporation's business description chapter.

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Below are details regarding commercial properties in Israel, which are income-generating as of March 31, 2026:

Property Name and Characteristics	Year/Quarter	Book Value at End of Period (Consolidated) (NIS thousands)	Rental Income during the Period (Consolidated) (in NIS thousands)	Actual NOI during the Period (Consolidated) (in NIS thousands)	Adjusted Yield Rate (%)	Revaluation Gains (Losses) (Consolidated) (in NIS thousands)	Occupancy Rate for the Period (%)	Average Rent per Sqm (in NIS)
Millenia-1000 Complex Rishon LeZion	31.3.2026	400,950 NIS thousands. The books show a total of approximately 383,255 NIS thousands under the investment property item and the remaining sum of approximately 17,695 NIS thousands is presented under the fixed assets item, in respect of the office space in the property for the company's own use	3,451	3,043	4.3%	2,581	52%	90
	31.3.2025	383,250 NIS thousands	2,474	2,016	3.9%	2,760	43%	88
	31.12.2025	397,050 NIS thousands. The books show a total of approximately 379,355 NIS thousands under the investment property item and the remaining sum of approximately 17,695 NIS thousands is presented under the fixed assets item, in respect of the office space in the property for the company's own use	11,334	8,799	3.85%	11,013	51%	90
Ramla Rental Commerce and Offices	31.3.2026	49,979 NIS thousands	1,115	1,013	8.1%	(5)	100%	99
	31.3.2025	53,316 NIS thousands	825	777	5.8%	(2,558)	84%	97
	31.12.2025	49,979 NIS thousands	3,870	3,678	7.3%	(6,674)	100%	99

1.4 Developments in the Company's Activities in the Field of Investment Property - Residential Rental Sector in the USA

As of the balance sheet date, Prashkovsky USA is the owner of rights in properties located in Florida, USA, which include 111 residential units for rent through a wholly-owned property company. The properties are leased to various tenants for various lease terms.

See details in Section 17 of Part A of the Periodic report for 2025 - Corporate Business Description chapter.

Below are details regarding rental income in the USA as of March 31, 2026:

Property Name and Characteristics	As of	Book Value at End of Period (Consolidated)	No. of Housing Units as of End of Period	Rental Income during the Period (Consolidated) (in Activity Currency) (in $ thousands)	Actual NOI during the Period (Consolidated) (in US$ thousands)	Adjusted Yield Rate (%)	Revaluation Gains (Losses) (Consolidated) (in Activity Currency) (in $ thousands)	Occupancy Rate for the Period (%)	Average Rent per Sqm (US$)
Arnon Property including 111 housing units	31.3.2026	16,532 $ thousands (52,325 NIS thousands)	111 housing units	1,838	293	7.1%	(61)	95%	22.2
	31.3.2025	17,505 $ thousands (65,084 NIS thousands)		582	292	6.7%	(504)	95%	22.2
	31.12.2025	16,532 $ thousands (52,739 NIS thousands)		2,340	1,131	6.8%	(1,596)	94%	22.2
Maya Property including 172 housing units sold in 2025	31.3.2026	-	172 housing units	-	-	-	-	-	-
	31.3.2025	27,760 $ thousands (103,212 NIS thousands)		888	509	7.3%	831	99%	20.6
	31.12.2025	-		3,103	1,544	-	1,370	-	-

1.5. Development of the Company's Activity in the Field of Residential Rental in Israel

.1 Netivei Dor in Neve Doron (a sub-subsidiary of the Company) holds a project in West Ramla including, among other things, 241 residential units for long-term rental (in this section: "the Long-term Rental Apartments") for a period of not less than 20 consecutive years (in this section: "the Rental Period"). At the end of the rental period, Netivei Dor in Neve Doron shall be entitled to sell its rights in the apartments intended for long-term rental, in whole or in part.

As of the report date, Netivei Dor in Neve Doron has entered into lease agreements for all housing units in the project (241 units) in buildings 21-23 on lots 301 and 308 with annual rental fees in the amount of approximately NIS 16.5 million.

.2 Netivei Dor in Ben Shemen (a sub-subsidiary of the Company) holds a project in the Nofei Ben Shemen neighborhood in Lod including, among other things, 286 housing units to be designated for long-term residential rental (in this section: "the Long-term Rental Apartments") for a period of not less than 15 consecutive years (in this section: "the Rental Period"). At the end of the rental period, Netivei Dor in Ben Shemen shall be entitled to sell its rights in the apartments intended for long-term rental, in whole or in part.

As of the report date, Netivei Dor in Ben Shemen has entered into lease agreements regarding 243 of the housing units in the project in buildings A and C on lots 111 and 112 with annual rental fees in the amount of approximately NIS 15.4 million. See also section 1 of Part A - update to the Corporate Business Description of the Periodic report for 2025 above regarding a memorandum of understanding signed in connection with the sale of half of the rights in the project.

.3 In 2020, Prashkovsky Yielding Assets purchased lot 541 in part of plot 228, block 3946, with a total area of approximately 23,491 sqm in Rishon LeZion - "the 1000 Complex" (in this section: "the Real Estate").

According to a new plan approved in 2024, a project can be established on the real estate that will include, among other things, 1,050 long-term rental units, where 263 units constituting 25% of the total units will be rented at a reduced price.

As of the date of signing the report, Prashkovsky Yielding Assets is promoting the planning of the project.

.4 On December 13, 2021, Prashkovsky in the 1000 (a sub-subsidiary of the Company) won, in a tender as part of a receivership proceeding, the purchase of the rights in the real estate known as plots 18-9 in block 3696 in Rehovot, on lots 1000 (approx. 15,834 sqm) and A1000 (approx. 1,321 sqm) and part of lot 1004 (designated for private open space). The win was approved by the

Court on January 3, 2022. In November 2025, a building permit was received for phase A'1 of the project, which includes, among other things, two buildings with 22 floors each and 515 housing units for dormitories. In addition, subject to the approval of a local zoning plan and the issuance of building permits, in phase A'2 of the project, the apartment buildings will be raised to 30 floors each and the buildings are expected to include, among other things, 468 rental housing units.

On December 29, 2022, the Committee for Preferred Housing Complexes approved plan TMA 3003 (hereinafter in this section: "the Plan"). As of March 31, 2026, the Company purchased rights in areas included in the plan in several transactions in a cumulative scope of approximately 144 dunams (in this section: "the Company's Areas"). According to the plan, the Company will be granted in the Company's areas, among others, rights for the construction of 292 long-term rental housing units. These units have not yet received approved enterprise certification under the Encouragement of Capital Investments Law and accordingly they appear at their cost under the item real estate inventory for construction and land in the Company's balance sheets.
In December 2022, Prashkovsky Yielding Assets won a tender published by 'Apartment for Rent' together with the Israel Land Authority, for the purchase of lease rights in lots 125 and 126, plots (in part) 37, 81 and 102 in block 4233 in Beer Yaakov, intended, according to plan TMA/1018/A for high-density construction that will include 273 housing units, which will be designated for long-term residential rental for a period of not less than 20 consecutive years (in this section: "the Rental Period"), where 50% of the apartments will be designated for housing at controlled rent for eligible persons and the remaining apartments will be rented by Prashkovsky Yielding Assets on the free market. At the end of the rental period, Prashkovsky Yielding Assets will be entitled to sell its rights in the apartments and/or in the complex, in whole or in part. As part of requests for concessions, Prashkovsky Yielding Assets increased the number of units to 298 units.

In July and August 2024, excavation, shoring, and foundation permits were received for the project and in December 2024, building permits were received for the project. As of the date of signing the report, the works are in full swing. See also section 1 of Part A - update to the Corporate Business Description of the Periodic report for 2025 above regarding a memorandum of understanding signed in connection with the sale of half of the rights in the project.

In December 2023, Prashkovsky Yielding Assets won a tender published by 'Apartment for Rent' together with the Israel Land Authority, for the purchase of lease rights in lot 205, plot (in part) 27 in block 6178 in the Ganei Ayalon complex in Ramat Gan ("the Real Estate"), intended, according to plan TMA/1038 for high-density construction that will include 195 housing units to be designated for long-term residential rental for a period of not less than 20 consecutive years ("the Rental Period"), where 50% of the apartments will be designated for housing at controlled rent for eligible persons and the remaining apartments will be rented by Prashkovsky Yielding Assets on the free market. At the end of the rental period, Prashkovsky Yielding Assets will be entitled to sell its rights in the apartments and/or in the complex, in whole or in part. Prashkovsky Yielding Assets is promoting the planning of the project including a request to increase the number of units to 215 units as part of concessions. In January 2026, an excavation and shoring permit was received for the project and the works began after the balance sheet date. See also section 1 of Part A - update to the Corporate Business Description of the Periodic report for 2025 above regarding a memorandum of understanding signed in connection with the sale of half of the rights in the project.
In March 2025, the ILA Tenders Committee approved the final win of Prashkovsky Yielding Assets in the tender. The win includes the purchase of lease rights in lots 2203 and 2207, plots (in part) 23 in block 6900, 4 in block 6885, 204 in block 6896 and 23 in block 6900 in Sde Dov in Tel Aviv with an area of approximately 9,540 sqm, intended, according to plan TA/507-0915108 1/4444 for high-density construction that will include 542 housing units, which will be designated for long-term residential rental for a period of not less than 20 consecutive years, where 50% of the apartments will be designated for housing at controlled rent for eligible persons and the remaining apartments will be rented by Prashkovsky Yielding Assets on the free market at market prices. At the end of the rental period, Prashkovsky Yielding Assets will be entitled to sell its rights in the apartments and/or

in the complex, in whole or in part. At the same time, it will be possible to transfer rights to private entities (individuals) for up to $40\%$ of the housing units for rental in accordance with and subject to the provisions and rules set for this matter in Section 4.8.8 of the Israel Council Decisions collection and in Management Decision 5595.

.9 In March 2025, the ILA Tenders Committee approved the final win of Prashkovsky Yielding Assets in the tender. The win includes the purchase of lease rights in lot 2102, plots (in part) 20 in block 6885 and 28-29 in block 6896 in Sde Dov in Tel Aviv with an area of approximately 7,067 sqm, intended, according to plan TA/507-0915108 1/4444/ for high-density construction that will include 424 housing units, which will be designated for long-term residential rental for a period of not less than 20 consecutive years, where $50\%$ of the apartments will be designated for housing at controlled rent for eligible persons and the remaining apartments will be rented by Prashkovsky Yielding Assets on the free market at market prices. At the end of the rental period, Prashkovsky Yielding Assets will be entitled to sell its rights in the apartments and/or in the complex, in whole or in part. At the same time, it will be possible to transfer rights to private entities (individuals) for up to $40\%$ of the housing units for rental in accordance with and subject to the provisions and rules set for this matter in Section 4.8.8 of the Israel Council Decisions collection and in Management Decision 5595.

Below are details regarding rental income from the residential rental sector as of March 31, 2026:

Property Name and Characteristics	Year/Quarter	Book Value at End of Period (Consolidated) (NIS thousands)	Rental Income during the Period (Consolidated) (in NIS thousands)	Actual NOI during the Period (Consolidated) (in NIS thousands)	Adjusted Yield Rate (%)	Revaluation Gains (Consolidated) (in NIS thousands)	Occupancy Rate for the Period (%)	Average Rent per Sqm (in NIS)
Lod Ben Shemen Residential Rental	31.3.2026	595,878 NIS thousands	367	190	1.5%	5,234	60%	51
	31.3.2025	369,309 NIS thousands	-	-	-	-	-	-
	31.12.2025	549,515 NIS thousands	-	-	-	-	-	-
Ramla New Neve Doron Residential Rental	31.3.2026	486,756 NIS thousands	4,488	3,904	3%	(3)	100%	52
	31.3.2025	482,457 NIS thousands	4,293	3,676	3%	-	100%	51
	31.12.2025	486,756 NIS thousands	17,569	14,429	3%	5,446	100%	52

5/20/2026 | 12:02:28 PM | v1.2.5

2. Financial Position

The main developments in the items of the report on the financial position as of March 31, 2026, compared to the report on the financial position as of December 31, 2025 (in thousands of NIS), are detailed below:

Balance Sheet Item	As of March 31	As of December 31	Company Explanations
	2026	2025
	(In thousands of NIS)
Equity	2,210,954 (30.5% of the balance sheet)	2,194,619 (31.7% of the balance sheet)	The increase in equity during the reporting period stems from a total profit of approximately 16,239 thousand NIS plus premium from conversion of warrants into shares of approximately 3,097 thousand NIS and minus movement in respect of equity fund for warrants allocated to officers in the amount of approximately 3,001 thousand NIS.

Current Assets	3,647,156 (50.3% of the balance sheet)	3,443,560 (49.8% of the balance sheet)	---

Additional details on current assets
Inventory of buildings under construction	2,636,091	2,457,185	The change in balance during the reporting period results from costs recognized as inventory minus costs recognized in profit and loss on an ongoing basis according to the sales and execution pace of the projects.
Inventory of apartments	46,207	49,069	The item includes unsold apartments in completed projects. As of the balance sheet date, there are 11 unsold apartments in the Herzliya Gan Rashal project, 4 unsold apartments in the Ramat HaNasi Phase A project and 2 unsold apartments in the Lod Ben Shemen project. On December 31, 2025, there were 16 unsold apartments in the Herzliya Gan Rashal project.
Cash and cash equivalents	40,318	74,125	See Section 4 of this part below (The Company's cash flow).

Balance Sheet Item	As of March 31	As of December 31	Company Explanations
	2026	2025
	(In thousands of NIS)
Deposits and designated bank accounts	473,691	26,166	The balance consists of balances in closed bank-accompanyed accounts as well as deposits in bank accounts pledged to the HOLDERS OF BONDS. The increase in the balance of deposits and designated bank accounts during the reporting period results from a deposit of the proceeds from the issuance of BONDS (Series 17) in the amount of approximately 398,626 thousand NIS, which were deposited into a trust account according to the terms set in the trust deed until the registration of the liens according to the trust deed which were registered in April 2026 and accordingly the issuance proceeds were released to the company.
Assets from contracts with customers	299,356	683,922	The item reflects the gap between income recognized for apartments sold in projects under construction and receipts for those same apartments. The decrease in the balance of assets from contracts with customers as of the reporting date compared to the balance as of December 31, 2025, results from payments by apartment purchasers in projects completed in the fourth quarter of 2025 and the first quarter of 2026 (Herzliya Gan Rashal, Ramat HaNasi Phase A and Lod Ben Shemen).
Debtors and debit balances	75,274	69,565	The balance includes, among other things, balances for VAT receivable, institutions, deposits, advances to suppliers, prepaid expenses and others.
Current tax assets	23,894	30,789	The decrease in the balance of current tax assets results from a provision for taxes payable according to the company's results minus tax advances paid by the company and its subsidiaries during the reporting period.
Investment property intended for disposal	52,325	52,739	The balance includes investment property in the USA intended for disposal including 111 rental units.
Working capital (Working capital deficit)	147,987	(105,327)	---
Additional details on non-current assets

Balance Sheet Item	As of March 31	As of December 31	Company Explanations
	2026	2025
	(In thousands of NIS)
Credit from banking and financial corporations	2,598,004	2,595,388	Project/Land	Loan amount (Millions of NIS) as of 31.03.2026	Loan amount (Millions of NIS) as of 31.12.2025
			Project accompanied by offices, residential and commercial in Herzliya Southgate	193.2	256.3
			Project accompanied by Ramat HaNasi Haifa Phase A	-	66.0
			Project accompanied by Herzliya Gan Rashal	-	23.9
			Project accompanied by Lod Ben Shemen Rental	140.4	141.1
			Project accompanied by Lod Ben Shemen Residential	-	33.6
			Project accompanied by Beni Dan- Tsirelson Tel Aviv	62.1	55.6
			Land for residential and commercial Galil Yam Herzliya	163.8	123.4
			Project accompanied by Kiryat Peres Special District Ashdod	179.0	190.4
			Project accompanied by Lincoln Slopes Haifa Mechir Lamishtaken	-	9.3
			Project accompanied by "Sha'ar Ha'ir" Rehovot	205.2	205.3
			Project accompanied by Be'er Ya'akov Dira Lehaskir	367.6	272.0
			Land for residential Ramat HaNasi Haifa Phases B and C	110.4	41.3
			Land for residential Be'er Ya'akov Plot 133	55.0	55.0
			Land Ganei Azar Ramat Gan Dira Lehaskir	66.3	66.3
			Land for residential Chatzavim Rishon LeZion Mechir Matara	46.4	46.3
			Land for residential Plot 2003 Kiryat HaHagana	51.7	51.7
			Loan for agricultural land in Rishon LeZion	19.5	19.5
			Loan for land in TML 3003 Plot 41B Rehovot	171.9	172.1
			Loan for land in TML 3003 Plot 13B Rehovot	50.0	50.0
			Loan for land in TML 3003 Plots 3D, 1C, 4D in Rehovot	72.1	72.0
			Loan for land in TML 3003 cash part in Plots 16A, 40B in Rehovot	18.0	18.0
			Loan for land in TML 3003 Plot 18B Rehovot	42.0	-
			Loans for land in Sde Dov Tel Aviv Plots 2203 and 2207	156.8	156.8
			Loans for land in Sde Dov Tel Aviv Plot 2102	99.0	99.0
			Loan for land in the Thousand Complex in Rishon LeZion Plot 541	167.3	103.3
			Current maturity of loan against land in the HaMahuga project in Tel Aviv	40.0	40.0
			Current maturity of loan for land for building a project of offices and commerce in Science Park in Ness Ziona	21.7	21.7
			Current loans of the Company	80.3	195.8

Balance Sheet Item	As of March 31, 2026	As of December 31, 2025	Company Explanations
	(In thousands of NIS)
	17.7	9.6	Current maturities of long-term loans
	0.6	0.1	Overdraft
	2,598.0	2,595.4	Total
Current maturities of lease liability	3,832	3,822	---
Current maturities of BONDS	375,279	374,592	The item is composed of BONDS (Series 14) in full in the amount of approximately 117.5 million NIS, BONDS (Series 15) in full in the amount of approximately 199.1 million NIS and a first payment for BONDS (Series 16) in the amount of approximately 57.9 million NIS expected to be repaid within an operating cycle period of 4 years.
Liabilities for contracts and advances from apartment purchasers	85,974	65,230	The item includes advances received from apartment purchasers and performance service recipients minus advances recognized in profit and loss on an ongoing basis according to the sales and execution pace of the projects. The advances as of the balance sheet date result mainly from receipts for apartments in projects in Haifa Lincoln, in Neot Peres in Ashdod and in Beni Dan Rabbi Tsirelson in Tel Aviv.

Non-current liabilities	1,538,317	1,170,378	The item is composed of long-term loans from banking corporations and financial institutions in the amount of approximately 727.5 million NIS (including CPI-linked loans taken as part of the Dira Lehaskir project in West Ramla in the amount of approximately 249.3 million NIS, a CPI-linked loan taken against the pledge of the Millennia project in the Thousand Complex in the amount of approximately 219.9 million NIS, a CPI-linked loan taken as part of the Dira Lehaskir project in Lod Ben Shemen in the amount of approximately 166.2 million NIS and a Shekel loan for the land in Phase B of the Sha'ar Ha'ir project in Rehovot in the amount of approximately 92 million NIS), from BONDS (Series 17) in the amount of approximately 394.7 million NIS issued during the reporting period, from the balance of BONDS (Series 16) in the amount of approximately 239.4 million NIS, from deferred taxes in the amount of approximately 104.3 million NIS, from a liability to build a public building for the Rishon LeZion Municipality of about 53.5 million NIS, from a liability for a long-term lease in the amount of approximately 14.4 million NIS and from liabilities for employees in the amount of approximately 4.6 million NIS.

3. Results of Operations including details of Revenues, Costs and Gross Profit of the projects

The company operates in the real estate field mainly in the development for construction and sale of residential apartments and implements IFRS 15 regarding recognition of revenue from contracts with customers, such that revenue recognition from the sale of residential apartments is carried out over time, according to the pace of execution.

Revenues	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025	For the year ended December 31, 2025	Company explanations (March 31, 2026 vs. March 31, 2025)
	Thousands of NIS
From sale of apartments and offices	92,523	140,709	738,224	The changes in the volume of revenues from the sale of apartments and offices during the reporting period compared to the corresponding period last year result from the sales pace of apartments and offices in the various projects and the execution rates of the projects.

Revenues	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025	For the year ended December 31, 2025	Company explanations (March 31, 2026 vs. March 31, 2025)
	Thousands of NIS
From execution of works	29,226	23,701	183,733
From rental	11,259	14,875	55,527	The changes in the volume of revenues from the execution of works during the reporting period compared to the corresponding period
Others	191	174	2,202

5/20/2026 | 12:02:29 PM | v1.2.5

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025	For the year ended December 31, 2025	Company explanations (March 31, 2026 vs. March 31, 2025)
NIS thousands
Total revenue	133,199	179,459	979,686	The corresponding period last year stems from the execution rate of construction services in Phase A of the Herzliya Southgate project and the construction services commitment in the Bnei Dan projects in Tel-Aviv and Herzliya Gan Rashal.
Costs
Cost of apartments and offices sold	73,585	109,880	595,345	The decrease in rental income in the report period compared to the corresponding period last year is attributed to the sale of assets in the USA and Rehovot.
Cost of execution of works	19,683	16,368	140,623
Cost of rental	2,665	4,551	19,272
Other costs	406	63	1,345
Total cost of revenue	(96,339)(Approx. 72.3% of revenue)	(130,862)(Approx. 72.9% of revenue)	(756,585)(Approx. 77.2% of revenue)
Gross profit	36,860(Approx. 27.7% of revenue)	48,597(Approx. 27.1% of revenue)	223,101(Approx. 22.8% of revenue)
Changes in fair value of investment property	18,674	(13,022)	153,044	The changes in the fair value of investment property in the report period stem mainly from positive valuation of a rental housing project in Beer Yaakov, of a rental housing project in Lod Ben Shemen and of the Millenia project in Rishon LeZion, in the amount of approx. NIS 25.8 million and less negative valuation regarding costs invested by the company in properties and lands in Israel in the amount of approx. NIS 7.1 million, in the report period, which were not reflected in the value of the properties.
Gain (loss) from disposal of investment property, net	(549)	1,289	2,187	-
Selling and marketing expenses	(6,316)(Approx. 4.7% of revenue)	(6,328)(Approx. 3.5% of revenue)	(24,411)(Approx. 2.5% of revenue)	The selling and marketing expenses (excluding commissions directly related to the sale), are recorded currently in the profit and loss statement regardless of the timing of the gross profit recognition from the sale of apartments. The main marketing expenses in the report period were for company branding as well as for the projects in Herzliya Southgate, Haifa Ramat HaNasi, Herzliya Gan Rashal and Kiryat Peres in Ashdod.
General and administrative expenses	(12,836)(Approx. 9.6% of revenue)	(11,496)(Approx. 6.4% of revenue)	(50,894)(Approx. 5.2% of revenue)	The main increase in general and administrative expenses in the report period compared to the corresponding period last year stems from an increase in salary expenses of approx. NIS 0.8 million due to the recruitment of new employees.
Other income, net	(212)	964	1,464	-
Operating profit	35,621(Approx. 26.7% of revenue)	20,004(Approx. 11.1% of revenue)	304,491(Approx. 31.1% of revenue)
Financing expenses	(21,598)(Approx. 16.2% of revenue)	(15,723)(Approx. 8.8% of revenue)	(71,678)(Approx. 7.3% of revenue)	Financing expenses in the report period in the amount of approx. NIS 14,499 thousand stemmed mainly from index-linked loans taken for financing yielding properties, from loans for projects under construction and from current loans of the company. Additionally, in the report period, the company had financing costs regarding BONDS in the amount of approx. NIS 5,358 thousand (after attributing a total of NIS 4,483 thousand to projects), financing expenses regarding construction services obligations in the Bnei Dan project in Tel Aviv in the amount of approx. NIS 652 thousand as well as current financing expenses of the company. Conversely, financing costs in the corresponding period last year included a total of approx. NIS 14,031 thousand stemming mainly from index-linked loans (loans for financing the rental housing project in Ramla, a loan for financing the Herzliya Southgate project).

	For the three-month period ended March 31, 2026	For the three-month period ended March 31, 2025	For the year ended December 31, 2025	Company explanations (March 31, 2026 vs. March 31, 2025)
	NIS thousands
				Millenia project in the Eleph Complex in Rishon LeZion and loans for financing regarding the commercial center in Rehovot, from current loans of the company and from loans regarding projects. Additionally, in the corresponding period last year, the company had financing expenses regarding construction services obligations in the Bnei Dan projects in Tel Aviv and Gan Rashal in Herzliya in the amount of approx. NIS 1,465 thousand, financing costs regarding BONDS in the amount of approx. NIS 56 thousand (after attributing a total of NIS 5,018 thousand to projects), and current financing expenses of the company.
Financing income	3,800 (Approx. 2.9% of revenue)	447 (Approx. 0.25% of revenue)	3,020 (Approx. 0.31% of revenue)	Mainly regarding interest income on short-term deposits and institutions. The increase in financing income in the report period compared to the corresponding period last year stems mainly from interest income from a deposit of BONDS (Series XVII) funds that were released after the report date.
Profits of equity-accounted investees	386	523	2,947	Stems mainly from profits of the associates Prashkovsky Pro Ltd. and Mordechai and Shoshana Epstein Ltd. less losses of the associate Paz Building Group SRL.
Profit before taxes on income	18,209	5,251	238,780
Taxes on income	659	254	30,561	Changes in tax expenses are derived from changes in the company's results in the report period, compared to the corresponding periods, as well as from different tax percentages in the USA and also regarding residential rental projects to which reduced tax rates apply.
Profit for the period attributable to the owners of the company	17,550 (Approx. 13.2% of revenue)	4,997 (Approx. 2.8% of revenue)	208,219 (Approx. 21.3% of revenue)
Components of other comprehensive income (loss)	(1,311)	4,611	(28,525)	Components of comprehensive loss in the report period are mainly due to losses from translation differences regarding net foreign operations (less taxes thereon) stemming from the investment in the subsidiary in the USA (Prashkovsky USA) following the decrease in the Dollar exchange rate in the report period and following loss from translation differences from investment in an associate (Paz Building Group SRL) following the decrease in the Euro exchange rate in the report period.
Total comprehensive income for the period attributable to the owners of the company	16,239 (Approx. 12.2% of revenue)	9,608 (Approx. 5.4% of revenue)	179,694 (Approx. 18.3% of revenue)
Basic earnings per share (in NIS)	0.823	0.237	9.866

Revenue, cost of revenue and gross profit - for the three-month period ended March 31, 2026

(in NIS thousands)

	Revenue	Cost of revenue	Gross profit (loss)	Gross profit margin	Cumulative gross profit margin from the project
Lod Ben Shemen	2,140	1,513	627	29.3%	34.8%
Haifa Ramat HaNasi Phase A	9,800	7,985	1,815	18.5%	24.8%
HAGADA Project Bnei Dan Tel Aviv	25,735	20,126	5,609	21.8%	23.4%
Herzliya Gan Rashal	17,247	14,247	3,000	17.4%	21.5%
Haifa Lincoln Slopes	15,239	13,847	1,392	9.1%	*-
Ashdod Neot Peres Phase A	8,450	5,972	2,478	29.3%	29.3%
Herzliya Pituach Southgate Phase A	13,912	8,685	5,227	37.6%	23.2%
Others and previous years	-	1,210	(1,210)	-
Total sale of apartments, office and commercial space	92,523	73,585	18,938	20.5%
Rental USA	1,838	1,376	462	25.1%	-
Rental Ramla	5,603	686	4,917	87.8%	-
Rental Millenia Eleph Complex	3,451	408	3,043	88.2%	-
Rental Lod	367	190	177	48.2%	-
Others	-	5	(5)	-	-
Total rental	11,259	2,665	8,594	76.3%
Execution of construction services works regarding Pinui Binui transaction	11,840	7,865	3,975	33.6%	-
Execution of construction services works	17,386	11,818	5,568	32.0%	-
Total execution of works	29,226	19,683	9,543	32.7%
Others	191	406	(215)	-	-
Total	133,199	96,339	36,860	27.7%

*In the Haifa Lincoln Slopes project there is no cumulative gross profit due to the recognition of a provision for loss in 2025, see also details regarding 2025 results below.

Revenue, cost of revenue and gross profit - for the three-month period ended March 31, 2025

(in NIS thousands)

	Revenue	Cost of revenue	Gross profit	Gross profit margin	Cumulative gross profit margin from the project
Lod Ben Shemen	11,954	7,980	3,974	33.2%	35.6%
Haifa Ramat HaNasi Phase A	59,376	45,505	13,871	23.4%	21.5%
HAGADA Project Bnei Dan Tel Aviv	8,471	6,776	1,695	20.0%	22.1%
Herzliya Gan Rashal	55,398	42,883	12,515	22.6%	20.3%
Others and previous years	5,510	6,736	(1,226)	-
Total sale of apartments, land and offices	140,709	109,880	30,829	21.9%
Rental USA	5,316	2,828	2,488	46.8%	-
Rental Rehovot	1,924	392	1,532	79.6%	-
Rental Ramla	5,118	665	4,453	87.0%	-
Rental Millenia Eleph Complex	2,474	458	2,016	81.5%	-
Rental Hamenofa	-	172	(172)	-
Rental Romania	43	36	7	16.3%	-
Total rental	14,875	4,551	10,324	69.4%
Execution of construction services works regarding combination and Pinui Binui transactions	9,240	7,652	1,588	17.2%	-
Execution of construction services works Herzliya Pituach Southgate	14,461	8,716	5,745	39.7%	-
Total execution of works	23,701	16,368	7,333	30.9%
Others	174	63	111	63.8%	-
Total	179,459	130,862	48,597	27.1%

5/20/2025 | 12:02:30 PM | v1.2.5

Revenue, Cost of Revenue and Gross Profit - Year 2025 (in thousands of NIS)

	Revenue	Cost of Revenue	Gross Profit (Loss)	Gross Profit Margin	Cumulative Gross Profit Margin from the Project
Lod Ben Shemen	43,984	29,586	14,398	32.7%	34.9%
Haifa Ramat HaNasi Phase A	178,145	123,729	54,416	30.5%	25.0%
HAGADA Project Bnei Dan Tel Aviv	110,295	83,742	26,553	24.1%	23.7%
Herzliya Gan Rashal	212,117	162,997	49,120	23.2%	21.6%
Beer Yaakov Boutique Apartments	2,794	2,763	31	1.1%	9.2%
Haifa Lincoln Slopes	17,397	*52,315	*(34,918)	-	-
Ashdod Neot Peres Phase A	14,847	10,494	4,353	29.3%	29.3%
Herzliya Pituach Southgate Phase A	154,855	120,919	33,936	21.9%	21.9%
Others and previous years	3,790	8,800	(5,010)	-
Total sale of apartments, office and commercial spaces	738,224	595,345	142,879	19.4%
USA Rental	20,652	12,642	8,010	38.8%	-
Rehovot Rental	1,924	392	1,532	79.6%	-
Ramla Rental	21,439	3,332	18,107	84.5%	-
Millennia Thousand Complex Rental	11,334	2,535	8,799	77.6%	-
Hamachuga Rental	-	200	(200)	-	-
Romania Rental	178	171	7	3.9%	-
Total Rental	55,527	19,272	36,255	65.3%
Performance of construction services for combination and urban renewal transactions	57,312	42,363	14,949	26.1%	-
Performance of construction services	126,421	98,260	28,161	22.3%	-
Total performance of works	183,733	140,623	43,110	23.5%
Others	2,202	1,345	857	38.9%	-
Total	979,686	756,585	223,101	22.8%

*In 2025, a provision for loss of approximately NIS 36 million was recorded, regarding the total expected loss from the sale of 302 apartments in the "Price per Resident" track in the Lincoln Slopes project in Haifa, regardless of whether those apartments were sold or the project's progress rate. Revenue recognition regarding the remaining 151 residential units in the project, which will be sold on the free market, will be recorded according to the progress rate of the units sold.

4. Liquidity

The company's cash balance as of 31.3.2026 is approximately NIS 40,318 thousand compared to a balance of approximately NIS 74,125 thousand as of 31.12.2025. The change in cash balances during the report period stems mainly from the following factors, as detailed in the table:

Item	Balance (in thousands of NIS)	Explanation
Cash from operating activities	135,457	-
Cash used for investing activities	(554,258)	Cash balances were used for investment in deposits and designated bank accounts in the amount of approximately NIS 447,525 thousand, investment in investment property in the amount of approximately NIS 100,215 thousand, purchase of fixed assets in the amount of approximately NIS 6,931 thousand, and investment in an associate in the amount of approximately NIS 22 thousand. On the other hand, a total of approximately NIS 435 thousand resulted from the sale of fixed assets.
Cash from financing activities	385,908	Cash balances in the amount of approximately NIS 394,611 thousand resulted from the issuance of BONDS (Series 17). On the other hand, a total of approximately NIS 5,398 thousand was used for repayment of short-term loans, a total of approximately NIS 2,106 thousand was used for repayment of long-term loans, and a total of approximately NIS 1,199 thousand was used for repayment of lease liabilities.
Translation differences regarding foreign operations	(914)
Decrease in cash and cash equivalents	(33,807)
Cash and cash equivalents balance at the beginning of the period	74,125
Cash and cash equivalents balance at the end of the period	40,318

Disclosure of projected cash flow in accordance with Regulation 10(b)(14) of the Securities Regulations (Periodic and Immediate Reports), 5730-1970 ("Report Regulations")

In the company's consolidated financial statements as of March 31, 2026, there is a positive cash flow from operating activities for a period of three months.

In the company's solo financial statements as of March 31, 2026, there is a positive cash flow from operating activities for a period of three months.

In the company's consolidated financial statements as of March 31, 2026, there is positive working capital in the amount of approximately NIS 147,987 thousand.

In the company's solo financial statements as of March 31, 2026, there is positive working capital in the amount of approximately NIS 677,763 thousand.

In the company's consolidated financial statements as of March 31, 2026, there is positive working capital for a period of twelve months in the amount of approximately NIS 624,378 thousand.

In the company's solo financial statements as of March 31, 2026, there is positive working capital for a period of twelve months in the amount of approximately NIS 315,010 thousand.

6. The Company's Financing Sources

The company's primary financing sources as of March 31, 2026, except for equity, included credit from banking and other corporations in the amount of approximately NIS 3,325,469 thousand and BONDS in the amount of approximately NIS 1,009,327 thousand. Furthermore, the company is financed through credit from suppliers and other credit balances in a total amount of approximately NIS 512,354 thousand and from advances received from apartment buyers in the amount of approximately NIS 85,974 thousand.

Corporate Governance Aspects

7. Corporate Governance

A. Donations

The company has established a policy regarding the granting of donations and has appointed a donations committee.

The donations policy was established after the company's board of directors considered the company's scope of activities and the business environment in which it operates, its financial stability, strengths, goals, work plans, and policy, in a long-term view, while creating an appropriate balance between the desire for social and community involvement of the company and the need for the scope of donations to be consistent with the best interests of the company and the shareholders.

The company's donations can be to bodies, non-profit organizations, public benefit companies engaged in legal activities and having a worthy purpose such as culture, education, science, health, welfare, sports, childcare and youth care, aid to the needy, and the like.

During the report period, the company donated approximately NIS 201 thousand to several different bodies.

Of the aforementioned amount, a total of approximately NIS 120 thousand was donated to the "Yad Layeled Hamyuchad" (RA) association ("Donation Recipient"). To the best of the company's knowledge, there are no ties between the Donation Recipient and the company, a director, general manager, the controlling shareholder therein, or their relative.

B. Directors with Accounting and Financial Expertise

No material changes have occurred in relation to the disclosure given on the subject in the Board of Directors' report on the state of the company's affairs as of December 31, 2025, which was included within the framework of the company's Periodic report for 2025.

C. The Internal Auditor

No material changes have occurred in relation to the disclosure given on the subject in the Board of Directors' report which was included within the framework of the Periodic report for 2025.

D. Reporting on Independent Directors

The company did not adopt in its articles of association the provision regarding the proportion of independent directors. At the same time, four out of the eight serving board members are independent directors (including the two external directors).

5/20/2026 | 12:02:32 PM | v1.2.5

Disclosure Instructions in Connection with the Financial Reporting of the Corporation

8. Material events during the report period and thereafter

See Note 5 to the consolidated financial statements attached to this report below.

9. Self-purchase

As of the date of the report, there is no purchase plan in effect.

10. Equal Pay for Female and Male Employees Law, 5756-1996

In accordance with the requirements of Section 6B of the Equal Pay for Female and Male Employees Law, the company reports that the segmentation of data in the workplace was done according to job types, where in this segmentation there are 11 groups.

According to the segmentation of data in the workplace, except for one group in which a male and female employee are employed whose employment cost is identical, all other groups are homogeneous groups in which employees of both genders are not employed.

In the company, there are no male or female employees who are paid a minimum wage supplement.

11. Details regarding the corporation's debt certificates

On February 16, 2026, the company issued BONDS (Series 17) in the amount of NIS 400 million according to a shelf offering report dated February 15, 2026 (reference no.: 2026-01-015017) (see disclosure in the sections below). Beyond the above, no material changes occurred regarding the outstanding BONDS in relation to the directors' report published as part of the company's Periodic report for 2025.

A. Following are details regarding the BONDS (Series 17) (in NIS thousands):

Series	Issuance Date	Par value at the time of issuance (in NIS thousands)	Par value as of 31.3.2026 (in NIS thousands)	Adjusted par value as of 31.3.2026 (in NIS thousands)	Accrued interest amount as of 31.3.2026 (in NIS thousands)	Value of BONDS in the latest financial statements (in NIS thousands)	Market value (in NIS thousands)
17	16.02.2026	400,000	400,000	400,000	1,229	394,682	396,440
Series	Interest type - if variable, specify mechanism	Obligation for additional payment - and its determination mechanism if any	Principal payment date	Interest payment date	Linkage terms (if any) to principal and interest	Are they convertible to another security	Are the BONDS material
---	---	---	---	---	---	---	---
17	Fixed 2.67%	Increase in interest rate due to credit rating downgrade, cessation of rating, or non-compliance with financial covenants, as specified in sub-section (f) below	One payment on 31.12.2033	Every December 31 between the years 2026 to 2033 and every June 30 in the years 2026 to 2033.	The principal and interest of the BONDS are linked to the Consumer Price Index of December 2025	No	Yes

B. Trustee details:

Series	Trust company name	Person in charge of the series	Contact details
17	Strauss Lazer Trust Company (1992) Ltd.	Ori Lazer	Phone 03-6237777
Fax 03-5613824
Email [email protected]	Alon Tower 2, 94 Yigal Alon Street, Tel Aviv

C. Rating

The BONDS (Series 17) are rated A1 Negative by Midroog Ltd.

D. Compliance with terms and obligations to the BONDS holders:

Series	Compliance with all terms and obligations under the trust deed, at the end of the reporting year and during it	Did conditions occur that give cause for calling the series for immediate repayment/realization of collateral	Was notice received from the trustee for the series that cause occurred for immediate repayment or realization of collateral
17	+	No	No

E. Requirement to perform actions on behalf of the trustee

From the date of issuance of the BONDS (Series 17) and until the date of the report, the company was not required to perform actions at the request of the trustee of these BONDS series.

F. Company's obligations to comply with financial covenants - as set forth in the trust deeds

Within the framework of the trust deeds signed in relation to the BONDS, the company committed to complying with financial covenants (as defined in the trust deeds), as follows:

Series	Financial Covenant
	Equity				Ratio of equity to adjusted balance sheet***				Ratio between net financial debt and net CAP of the company
	Minimum threshold set as cause for immediate repayment (*)	Minimum threshold set above which the interest rate will increase (**)	Minimum threshold for dividend distribution	As of 31.3.2026	Minimum threshold set as cause for immediate repayment (*)	Minimum threshold set below which the interest rate will increase (**)	Minimum threshold for dividend distribution	As of 31.3.2026	Maximum threshold set as cause for immediate repayment (*)	Maximum threshold set above which the interest rate will increase (**)	Maximum threshold for dividend distribution	As of 31.3.2026
14
(***)
(***)	600
NIS million	670
NIS million	720
NIS million	2,211.0
NIS million	20%	21%	22%	31.8%
(According to prospectus in BONDS 16 and 17 34.1%)	76.5%	74.5%	72.5%	63.3%
15
(***)
(***)	770
NIS million	870
NIS million	970
NIS million		20%	21%	22%		76.5%	74.5%	72.5%
16
(***)
(***)	900
NIS million	1,000
NIS million	1,100
NIS million		20%	21%	22%		76.5%	74.5%	72.5%
17
(***)
(***)	1,000
NIS million	1,050
NIS million	1,100
NIS million		20%	21%	22%		-	-	-

() For a period of two quarters.
() Insofar as the company does not comply with the financial covenant set regarding minimum equity or regarding equity to adjusted balance sheet ratio or ratio between net financial debt to net CAP of the company, the interest rate will increase by 0.25% per annum. In any case, even if there is a deviation from all the covenants set, the interest rate will not increase by more than 1.25% per annum.
() Adjusted balance sheet - balance sheet after deduction of advances from customers and payables regarding combination transactions and consideration transactions (in the trust deeds of BONDS Series 16 and 17, also after deduction of deposits and designated bank accounts).
(*) BONDS (Series 14), BONDS (Series 15) and BONDS (Series 16) are rated A2 with a negative outlook by Midroog. BONDS (Series 17) is rated A1 with a negative outlook by Midroog. It was determined that any decrease in the rating grade will result in an interest addition of 0.25%. Whereas regarding BONDS (Series 17), it was determined that a decrease of two notches will result in an interest rate increase of 0.25%.

(*** ) It was determined that the cessation of the rating of BONDS (Series 14) and/or BONDS (Series 15) will result in an interest addition of 1% and the cessation of the rating of BONDS (Series 17) will result in an interest addition of 0.75%.

(***) The company committed that the ratio between the balance of the obligation regarding the BONDS (Series 17) and the value of the asset (housing project for rent in Ben Shemen) – LTV shall not exceed 80%. As of the date of the report and after the release of the issuance proceeds to the company following the creation of the liens according to the trust deed, the LTV ratio is approximately 66.7% and accordingly the company complies with the said condition.

In light of the above, as of 31.3.2026 the company complies with all financial covenants to which it committed in relation to the BONDS it issued.

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G. Collateral for the holders of the company's BONDS

BONDS (Series 14), BONDS (Series 15) and BONDS (Series 16) are not secured by collateral.

BONDS (Series 17) are secured by collateral as detailed in the trust deed attached to the shelf offering report dated February 15, 2026 (Reference No.: 2026-01-015017) ("The Trust Deed") and as detailed below:

Series	The pledged asset, type and degree of charge	Value of the pledged asset in the company's financial statements as of 31.3.2026	Changes that occurred in the pledged asset during the report period	Restriction on creating additional charges or on issuing 602 BONDS series	Validity of the charge according to any law and according to the company's incorporation documents	Conditions for change, release, replacement or cancellation of the charge/guarantee/other obligation - if occurred during the report period, the way they were approved will be described.
(Series 17)	A warning note regarding an obligation to register a mortgage on the company's rights in plots 21 and 22 in block 7350, in the "Nofel Ben Shemen" neighborhood, Lod (lots 111 and 112 according to TWL/1064, formerly part of plot 7 in block 5701), on which the project is built only, and after registration of the project as a condominium - registration of a first-degree mortgage without limit in amount in favor of the trustee as detailed in section 6.2.1 of the trust deed	The fair value of the pledged asset is 602,370 thousand NIS	The charges were registered during the report period and since the date of their registration, no material changes have occurred in the charges	For details regarding the charges, see section 6 of the trust deed. For conditions for the expansion of the series, see section 3.2 of the trust deed. For conditions regarding the issuance of additional BONDS, see section 3.3 of the trust deed.	To the best of the company's knowledge, the charges are valid.	For details regarding the release of assets from a charge, see section 6.8 of the trust deed. For details regarding the addition or replacement of a pledged asset, see section 6.9 of the trust deed. For details regarding the sale of a pledged asset, see section 6.10 of the trust deed.
	A fixed charge on the pledged assets as detailed in section 6.2.2 of the trust deed
	A floating charge on the income from the pledged assets as detailed in section 6.2.3 of the trust deed
	A fixed charge, first in degree and unique, without limit in amount in favor of the trustee for the BONDS holders, on the full rights of the company in the pledged account as detailed in section 6.2.4 of the trust deed
	A charge on the shares of the pledging entity as detailed in section 6.2.5 of the trust deed
	A charge and assignment of rights on the rights of the company and/or Prashkovsky Yielding Assets by virtue of the pledging entity's loans as detailed in section 6.2.6 of the trust deed

Details regarding very material valuations used to determine data in the report - according to Regulation 8b(9) of the Reporting Regulations:

Valuation subject identification	Valuation timing	Value of valuation subject immediately prior to valuation date	Value of valuation subject	Valuer identification	Education	Experience in performing valuations	Is the valuer independent?	Is there an indemnification agreement?	Valuation model	Assumptions under which the valuation was performed
Plots 21+22 in block 7350 formerly: part of plot 7 in block 5701 lots 111 and 112 in the Nofei Ben Shemen neighborhood, Lod (TML 1064)	31.03.2026	578,118 thousand NIS as of 31.12.2025	602,370 thousand NIS (The movement in the asset value in the first quarter of 2026 consists of an investment in the asset totaling 18,953 thousand NIS plus a positive revaluation totaling 5,299 thousand NIS)	Ehud Hameiri and Haim Kalfon from Ehud Hameiri & Co. Economists and Real Estate Appraisers	Ehud Hameiri - Certified Real Estate Appraiser with an MBA in Business Administration and a BA in Economics and Social Sciences. Haim Kalfon - Certified Real Estate Appraiser, BA in Geography and graduate of the Real Estate Appraisal and Management department.	Ehud Hameiri - Since 1962 in the Ministry of Finance, government appraiser, and since 1971 manager of an appraisal and real estate company. Haim Kalfon - Ramat Gan Municipality, appraisal, appraiser at the Ehud Hameiri office.	Independent	Yes	Comparison approach and income capitalization approach	Rental prices of areas leased in the property and of areas with similar characteristics were taken. Comparisons were made to the sale prices of similar apartments. For the purpose of calculating the present value, increases of approximately 1% per year in rent and approximately 1.5% per year in apartment prices were taken into account. The capitalization was performed at an interest rate of 5.25%. For data regarding rental prices and sale prices, see the valuation published as part of the publication of the BONDS issuance documents (Series 17) dated January 21, 2026 (reference no. - 2026-01-008780). For additional data regarding the project, see also section 18.8.7(9) in the first part of the Periodic report for 2025.

As of March 31, 2026, an update letter was received from the valuer stating that no material change had occurred in the asset value compared to the fair value of the asset as of December 31, 2025.
Details regarding material valuations used to determine data in the report - according to Regulation 8b(9) of the Reporting Regulations:

Valuation subject identification	Valuation timing	Value of valuation subject immediately prior to valuation date	Value of valuation subject	Valuer identification	Education	Experience in performing valuations	Is the valuer independent?	Is there an indemnification agreement?	Valuation model	Assumptions under which the valuation was performed
Part of portions of plots 37, 81 and 102 in block 4233, lots 125, 126 in Be'er Ya'akov	31.03.2026	430,828 thousand NIS as of 31.12.2025	513,106 thousand NIS (The movement in the asset value in the first quarter of 2026 consists of an investment in the asset totaling 64,355 thousand NIS plus a positive revaluation totaling 17,923 thousand NIS)	Ehud Hameiri and Haim Kalfon from Ehud Hameiri & Co. Economists and Real Estate Appraisers	Ehud Hameiri - Certified Real Estate Appraiser with an MBA in Business Administration and a BA in Economics and Social Sciences. Haim Kalfon - Certified Real Estate Appraiser, BA in Geography and graduate of the Real Estate Appraisal and Management department.	Ehud Hameiri - Since 1962 in the Ministry of Finance, government appraiser, and since 1971 manager of an appraisal and real estate company. Haim Kalfon - Ramat Gan Municipality, The Institute for Economics and Appraisal, appraiser at the Ehud Hameiri office.	Independent	Yes	Comparison approach and income capitalization approach	The project is expected to include 298 residential units for rent with an area of approximately 29,897 sqm and is expected to yield an annual NOI of approximately 22.1 million NIS. For the purpose of valuation, rental prices of areas with similar characteristics were taken (approximately 63 NIS per sqm monthly rent for an average apartment). Also, an occupancy rate of approximately 97% was assumed. Comparisons were made to the sale prices of similar apartments (approximately 28,500 NIS per sqm). For the purpose of calculating the present value, increases of approximately 1% per year in rent and approximately 1.5% per year in apartment prices were taken into account. Capitalization was performed at an interest rate of 5.25%. The expected cost of the project amounts to approximately 630 million NIS. The fair value of the project as of the report date,

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Identification of the Valuation Subject	Valuation Timing	Value of the Valuation Subject immediately before the valuation date	Value of the Valuation Subject	Appraiser Identification	Education	Experience in performing valuations	Is the appraiser independent?	Is there an indemnity agreement?	Valuation Model	Assumptions upon which the valuation was performed
Part of plots 19 and 41 (formerly plot 18) in block 4351 plots 301 and 308 in West Ramla (in TBP LH/6/170)	31.03.2026	536,735 NIS thousands as of 31.12.2025	536,735 NIS thousands						Comparison approach and income capitalization approach	The project is active and includes 241 residential units for rent with an area of approx. 26,202 sqm and approx. 3,321 sqm of primary commercial and office space and is expected to yield an annual NOI of approx. 20 million NIS. For the purpose of the valuation, actual rental prices were taken (approx. 52 NIS per sqm for the apartments for rent and approx. 99 NIS per sqm for the commercial and office space). As of the report date, the property is fully leased. Comparisons were made to sale prices of similar apartments (approx. 23,800 NIS per sqm). To calculate the present value, increases of approx. 1% per year in rent and approx. 1.5% per year in apartment prices were taken into account. The capitalization was performed at an interest rate of 5.25%.
Plot 541 located on part of plot 228 in the block	31.03.2026	451,334 NIS thousands as of 31.12.2025	453,338 NIS thousands (the movement in the asset value in the first quarter of 2026 consists of						Comparison approach	Comparison transactions were taken (at an average price of approx. 5,300 NIS per sqm) and a calculation was also performed based on

Identification of the Valuation Subject	Valuation Timing	Value of the Valuation Subject immediately before the Valuation Date	Value of the Valuation Subject	Appraiser Identification	Education	Experience in performing valuations	Is the Appraiser Independent?	Is there an Indemnity Agreement?	Valuation Model	Assumptions upon which the valuation was performed
3946 in the Elef Complex in Rishon LeZion (Plan RZ/MK/1000/1)			from investment in the asset in the amount of 4,043 NIS thousands less negative revaluation in the amount of approx. 2,039 NIS thousands)							Replacement method For additional data regarding the project, see also sections 16.8 (e) and 18.8.3 in the first part of the Periodic report for the year 2025.

Yosef Prashkovsky, Chairman of the Board

Date: May 20, 2026

Sharon Prashkovsky, CEO and Director

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Prashkovsky Investments and Construction Ltd.

Condensed Consolidated Interim Financial Statements

(Unaudited)

As of March 31, 2026

Prashkovsky Investments and Construction Ltd.

Condensed Consolidated Interim Financial Statements as of March 31, 2024 (Unaudited)

Table of Contents

Page

Review report of the auditing accountants

Summary of the Condensed Consolidated Interim Financial Statements

2-3 Condensed Consolidated Statements of Financial Position
4 Condensed Consolidated Statements of Profit or Loss
5 Condensed Consolidated Statements of Comprehensive Income
6-8 Condensed Consolidated Statements of Changes in Equity
9-10 Condensed Consolidated Statements of Cash Flows
11-21 Notes to the Condensed Consolidated Financial Statements

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Review Report of the Auditing Accountants to the Shareholders of Prashkovsky Investments and Construction Ltd.

Introduction

We have reviewed the accompanying condensed consolidated financial information of Prashkovsky Investments and Construction Ltd. and its subsidiaries (hereinafter - "the Group"), which includes the condensed consolidated statement of financial position as of March 31, 2026, and the condensed consolidated statements of profit or loss, 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 these interim periods in accordance with International Accounting Standard IAS 34 "Interim Financial Reporting", and are also responsible for the preparation of financial information for these interim periods under Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970. Our responsibility is to express a conclusion on this interim financial information based on our review.

We did not review the condensed interim financial information of consolidated subsidiaries whose assets included in the consolidation constitute approximately 0.8% of the total consolidated assets as of March 31, 2026, and whose revenues included in the consolidation constitute approximately 1.4% of the total consolidated revenues for the three-month period then ended. Furthermore, we did not review the condensed interim financial information of an associate company accounted for using the equity method, for which the liabilities in respect of the investment are approximately NIS 4,452 thousand as of March 31, 2026, and the Group's share in its loss is approximately NIS 42 thousand for the three-month period then ended. The condensed interim financial information of these companies was reviewed by other accountants whose review reports were provided 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 the aforementioned 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.

Ramat Gan, May 20, 2026

Baker Tilly Horwath Sabo Tevet & Cohen Tabach

Accountants

[email protected]

Tel: 03-5665006

Our Offices: 11 Menachem Begin Rd.

www.bakertilly.co.il

Fax: 144194/70747

Ramat Gan 5268104

Baker Tilly is the trade name of Horwath Sabo Tevet & Cohen Tabach

The firm is an independent member of the Baker Tilly International accounting network.

The name Baker Tilly International and its associated logo are used under license granted by Baker Tilly

Condensed Consolidated Statements of Financial Position as of

	March 31		December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
ASSETS
Current Assets
Cash and cash equivalents	40,318	36,063	74,125
Deposits and designated bank accounts	473,691	15,515	26,166
Trade and other receivables	75,274	143,882	69,565
Assets in respect of contracts with customers	299,356	383,681	683,922
Inventory of buildings under construction	2,636,091	2,458,550	2,457,185
Inventory of apartments	46,207	-	49,069
Current tax assets	23,894	9,048	30,789
	3,594,831	3,046,739	3,390,821
Investment property held for realization	52,325	65,083	52,739
Total current assets	3,647,156	3,111,822	3,443,560
Non-current Assets
Inventory of real estate for construction and land	102,272	94,371	100,634
Investments in held companies	24,898	22,049	24,527
Investment property	3,374,188	2,716,347	3,251,827
Fixed assets, net	55,066	29,672	50,433

	March 31		December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Right-of-use assets	18,939	8,798	19,256
Deferred tax assets	25,921	18,572	23,647
Total non-current assets	3,601,284	2,889,809	3,470,324

Total assets	7,248,440	6,001,631	6,913,884

The notes to the condensed interim consolidated financial statements form an integral part thereof.

Prashkovsky Investments and Construction Ltd.
Condensed Consolidated Statements of Financial Position as of


	March 31		December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
LIABILITIES AND EQUITY
Current Liabilities
Credit from banking corporations	2,598,004	2,175,327	2,595,388
Current maturities of BONDS	375,279	328,859	374,592
Current maturities of lease liability	3,832	3,508	3,822
Suppliers and subcontractors	42,606	38,245	56,593
Other payables and credit balances	237,052	197,418	226,110
Liabilities to land sellers	148,684	261,083	224,779
Liabilities in respect of contracts with customers and advances from apartment purchasers	85,974	83,880	65,230
Current tax liabilities	7,738	444	2,373
Total current liabilities	3,499,169	3,088,764	3,548,887


	March 31		December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Non-current Liabilities
Banking corporations	727,465	661,896	740,566
Liabilities to land sellers	53,510	46,572	53,510
BONDS	634,048	100,353	239,366
Lease liability	14,350	5,010	14,705
Liabilities for employee benefits	4,582	4,112	4,461
Deferred tax liabilities	104,362	110,725	117,770
Total non-current liabilities	1,538,317	928,668	1,170,378
Total liabilities	5,037,486	4,017,432	4,719,265
Equity
Share capital	228	225	228
Premium on shares	392,927	340,170	389,830
Treasury shares	(43,706)	(33,706)	(43,706)
Equity components in respect of convertible BONDS	(301)	(301)	(301)
Capital reserves	(9,001)	27,776	(4,689)
Retained earnings	1,870,807	1,650,035	1,853,257
Total equity attributable to owners of the company	2,210,954	1,984,199	2,194,619
Total liabilities and equity	7,248,440	6,001,631	6,913,884

The notes to the condensed interim consolidated financial statements form an integral part thereof.

Moti Nahmias
Deputy CEO and CFO

Sharon Prashkovsky
General Manager and Director

Yosef Prashkovsky
Chairman of the Board

Date of approval of the financial statements: May 20, 2026.

Prashkovsky Investments and Construction Ltd.
Condensed Consolidated Statements of Profit or Loss

	For the three-month period ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Revenues
From sale of apartments, office and commercial space	92,523	(*)140,709	738,224
From performance of works and provision of construction services	29,226	(*)23,701	183,733
From rental	11,259	14,875	55,527
Other	191	174	2,202
Total revenues	133,199	179,459	979,686
Costs
Cost of apartments, office and commercial space	73,585	(*)109,880	595,345
Cost of performance of works and provision of construction services	19,683	(*)16,368	140,623
Cost of rental	2,665	4,551	19,272
Other costs	406	63	1,345
Total costs	96,339	130,862	756,585
Gross profit	36,860	48,597	223,101
Changes in fair value of investment property	18,674	(13,022)	153,044
Gain (loss) from realization of investment property, net	(549)	1,289	2,187
Selling and marketing expenses	(6,316)	(6,328)	(24,411)
General and administrative expenses	(12,836)	(11,496)	(50,894)
Other income (expenses), net	(212)	964	1,464
Operating profit	35,621	20,004	304,491
Financing income	3,800	447	3,020
Financing expenses	(21,598)	(15,723)	(71,678)
Financing expenses, net	(17,798)	(15,276)	(68,658)

	For the three-month period ended March 31		For the year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Share in profits of held companies accounted for using the equity method	386	523	2,947
Profit before taxes on income	18,209	5,251	238,780
Taxes on income	659	254	30,561
Net profit for the period attributable to owners of the company	17,550	4,997	208,219
Earnings per share attributable to owners of the company (in NIS):
Basic earnings	0.823	0.237	9.866
Diluted earnings	0.821	0.237	9.846

(*) Non-material adjustment of comparative figures. See Note 2(d).

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Condensed Consolidated Statements of Comprehensive Income

	For the three-month period ended March 31		Year ended December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Net profit for the period attributable to the company's owners	17,550	4,997	208,219
Components of other comprehensive income (loss):
Amounts that will be or are reclassified to profit or loss under specific conditions:
Currency translation differences regarding foreign operations	(1,276)	4,755	(28,514)
Tax benefit (taxes regarding) translation differences	(35)	(144)	32
Amounts that will not be subsequently reclassified to profit or loss:
Actuarial loss regarding defined benefit plans	-	-	(55)
Tax benefit on actuarial profit	-	-	12
	(1,311)	4,611	(28,525)
Comprehensive income for the period attributable to the company's owners	16,239	9,608	179,694

Condensed Consolidated Statements of Changes in Equity (in NIS thousands)

	Share capital	Share premium	Treasury shares	Equity component in convertible BONDS	Capital reserve regarding activity between entity and controlling shareholder	Capital reserve regarding allocation of warrants to employees	Capital reserve from translation differences	Capital reserve regarding defined benefit plan	Retained earnings	Total
Balance as of January 1, 2026 (Audited)	228	389,830	(43,706)	(301)	1,013	10,247	(15,820)	(129)	1,853,257	2,194,619
Changes during the period January to March 2026 (Unaudited)
Profit for the period	-	-	-	-	-	-	-	-	17,550	17,550
Components of other comprehensive loss:
Currency translation differences regarding foreign operations, net	-	-	-	-	-	-	(1,311)	-	-	(1,311)
Comprehensive income (loss)	-	-	-	-	-	-	(1,311)	-	17,550	16,239
Warrants for employees	-	-	-	-	-	96	-	-	-	96
Issuance of share capital and premium	-(*)	3,097	-	-	-	(3,097)	-	-	-	-

	Share capital	Share premium	Treasury shares	Equity component in convertible BONDS	Capital reserve regarding activity between entity and controlling shareholder	Capital reserve regarding allocation of warrants to employees	Capital reserve from translation differences	Capital reserve regarding defined benefit plan	Retained earnings	Total
Balance as of March 31, 2026 (Unaudited)	228	392,927	(43,706)	(301)	1,013	7,246	(17,131)	(129)	1,870,807	2,210,954

(*) Less than NIS 1 thousand.
The notes to the condensed interim consolidated financial statements form an integral part thereof.

Prashkovsky Investments and Construction Ltd.

Condensed Consolidated Statements of Changes in Equity (in NIS thousands)

	Share capital	Premium on shares	Treasury shares	Equity component in convertible BONDS	Capital reserve regarding activity between entity and controlling shareholder	Capital reserve regarding allocation of warrants to employees	Capital reserve from translation differences	Capital reserve regarding defined benefit plan	Retained earnings	Total

Balance as of January 1, 2025 (Audited)	225	340,170	(33,706)	(301)	1,013	9,313	12,662	(86)	1,645,038	1,974,328
Changes during the period January to March 2025 (Unaudited)
Profit for the period	-	-	-	-	-	-	-	-	4,997	4,997
Components of other comprehensive income:
Currency translation differences regarding foreign operations, net	-	-	-	-	-	-	4,611	-	-	4,611
Comprehensive income	-	-	-	-	-	-	4,611	-	4,997	9,608
Warrants to employees	-	-	-	-	-	263	-	-	-	263
Balance as of March 31, 2025 (Unaudited)	225	340,170	(33,706)	(301)	1,013	9,576	17,273	(86)	1,650,035	1,984,199

Condensed Consolidated Statements of Changes in Equity (in NIS thousands)

5/20/2026 | 12:02:38 PM | r1 2.5

Condensed Consolidated Statements of Cash Flows

The notes to the interim consolidated financial statements form an integral part thereof.

Appendix A - Adjustments required to present cash flows from operating activities:

The notes to the interim consolidated financial statements form an integral part thereof.

Notes to the Condensed Consolidated Financial Statements as of March 31, 2026 (Unaudited)

Note 1 - General

A. General Description of the Company and its Activities

Prashkovsky Investments and Construction Ltd. (hereinafter: the "Company") was incorporated in Israel on April 3, 2006. Its official address is: 10 Moti Kind St., Rehovot.

The Company is engaged directly and through consolidated companies, A.S.I. Prashkovsky Building Company Ltd. (hereinafter: "A.S.I."), Prashkovsky Yielding Assets Ltd. (hereinafter: "Prashkovsky Yielding Assets") and Prashkovsky Investments USA LLC (hereinafter: "Prashkovsky USA") in four areas of activity in the real estate sector: Entrepreneurial real estate in Israel; Investment property - commercial buildings in Israel; Investment property - in the USA; Investment property - rental housing in Israel.

The Company is a public company; its shares and the BONDS it issued are traded on the Tel-Aviv Stock Exchange Ltd.

B. The condensed interim consolidated financial statements were approved by the Company's Board of Directors on May 20, 2026 (the "date of signing the report").

C. In October 2023, the "Iron Swords" war broke out following the terrorist attack on the State of Israel that occurred on October 7, 2023, and subsequently, fighting also developed on other fronts such as Lebanon, Syria, the Houthis in Yemen, and Iran (the "War"). The war had consequences for the Company's activities and economic activity in Israel in general, including the financial condition of the State of Israel. The Company was affected by the war situation, among other things, due to a decrease in the number of construction workers (due to the existing shortage of construction workers resulting from the prevention of Palestinian workers entering the country, the departure of foreign workers, and the mobilization of employees for reserve duty due to the war), rising prices of raw materials, and a decrease in the rate of apartment sales. During June 2025, Operation "With Kalavi" began, during which fighting developed between the State of Israel and Iran for 12 days (the "Operation"), during which, among other things, Ben Gurion Airport was closed and the Israeli economy as a whole operated in a limited format, in accordance with Home Front Command instructions. In October 2025, the State of Israel and the terrorist organization Hamas signed a ceasefire agreement and the return of the hostages taken during the war, with the last hostage returned to the State of Israel in January 2026. After several months of relative quiet, in March 2026, Operation "Lion's Roar" began, during which fighting developed between the State of Israel and Iran, during which, among other things, Ben Gurion Airport was closed and the Israeli economy as a whole operated in a limited format, in accordance with Home Front Command instructions. As of the report date, a state of ceasefire has allegedly been declared, but the Company cannot estimate how the campaign will develop in the coming months and what effects it will have on the Company's operations.

Note 2 - Reporting Rules and Accounting Policy

A. Basis of Preparation of the Financial Statements

The interim reports are presented in a condensed manner, in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as set forth in International Accounting Standard IAS-34 ("Interim Financial Reporting"), and in accordance with the disclosure requirements of Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970.

These interim reports should be read in conjunction with the Company's audited financial statements for the year ended December 31, 2025 (hereinafter: the "Annual Reports"), the notes to which contain detailed information not included in the interim reports.

The interim reports were prepared based on the same accounting policy rules described in the notes to the annual reports.

Prashkovsky Ltd.

Notes to the Condensed Consolidated Financial Statements as of March 31, 2026 (Unaudited)

Note 2 - Reporting Rules and Accounting Policy (Continued)

B. Use of Estimates and Discretion

In preparing the condensed financial statements in accordance with IFRS, Company management is required to use discretion in assessments, estimates, and assumptions that affect the application of policy and the amounts of assets and liabilities, income, and expenses. It is clarified that actual results may differ from these estimates.

When forming accounting estimates used in the preparation of the Company's financial statements, Company management was required to make assumptions regarding circumstances and events involving significant uncertainty. In its discretion in determining estimates, Company management relies on past experience, various works, external factors, and reasonable assumptions according to the circumstances appropriate for each estimate.

The estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates are recognized in the period in which the estimates were revised and in any future period affected.

Management's discretion when applying the Group's accounting policies and the main assumptions used in estimates involving uncertainty are consistent with those used in the preparation of the annual financial statements.

D. Adjustment of Comparative Figures

Following the application of Accounting Staff Position 11-6 of the Securities Authority, an adjustment of comparative figures was made in the consolidated statements of profit and loss for the three-month period ended March 31, 2025, in connection with the split of income and cost of sales between those derived from the sale of apartments, office and commercial space and those derived from the provision of construction services in projects where the Company entered into combination transactions and urban renewal (Pinui Binui) transactions.

Below is a detail of the adjustment of comparative figures in the consolidated statements of profit and loss:

	For the three-month period ended March 31, 2025
	Previously presented in financial statements	Presented in these financial statements
Consolidated Statements of Profit and Loss

	For the three-month period ended March 31, 2025
	Previously presented in financial statements	Presented in these financial statements
Income from sale of apartments, office and commercial space	149,949	140,709
Income from performance of work and provision of construction services	14,461	23,701
Cost of apartments, office and commercial space	117,532	109,880
Cost of performance of work and provision of construction services	8,716	16,368

The Company examined the adjustments in relation to the relevant reporting period and concluded, after examining quantitative and qualitative parameters, that it does not affect the method of economic decision-making and/or analysis of the financial statements by users of the consolidated financial statements.

5/20/2026 | 12:02:39 PM | v1.2.5

Notes to Condensed Consolidated Financial Statements, as of March 31, 2026 (unaudited)

Note 3 - Associate Companies Accounted for Using the Equity Method

Associate companies whose financial statements were not attached to the Company's reports:

Name of associate company whose reports were not attached to the Company's reports	The reason why the financial statements of the associate company were not attached
Paz Building Group S.R.L	Lack of materiality
Prashkovsky Pro Ltd.	Lack of materiality
Mordechai and Shoshana Epstein Ltd.	Lack of materiality

Notes to Condensed Consolidated Financial Statements, as of March 31, 2026 (unaudited)

Note 4 - Operating Segments

The Group's reporting format is in accordance with the application of the "management approach," as defined in IFRS 8, used by the Company's management in making decisions for resource allocation and segment performance evaluation.

A. The Group consists of the following primary segments:

Residential Real Estate in Israel - Constitutes the core activity of the company, which is the initiation, planning, construction, marketing, and sale of residential construction projects and/or office and commercial spaces for sale in Israel. Among the projects in this segment are the Company's projects in the residential field including approximately 7,245 housing units (of which approximately 5,936 units are for marketing by the Company) and approximately 248,854 gross sqm designated for offices and/or commercial use (of which approximately 193,935 gross sqm are intended for marketing by the Company) in various stages of construction, planning, and land reserves (including reserves for urban renewal projects). Additionally, the Company classifies construction services it provides to third parties in several projects to this segment.
Commercial Buildings in Israel - A field carried out through the Company and the subsidiary Prashkovsky Yielding. Under this segment, there are several yielding projects, as detailed below:
Prashkovsky Yielding holds an office and commercial project in the 1000 Complex in Rishon LeZion (50%).
Nativy Dor in Neve Doron (which is a subsidiary of Prashkovsky Yielding), holds a project including commercial and office spaces, in the Neve Doron neighborhood in West Ramla.
Nativy Dor in Ben Shemen (which is a subsidiary of Prashkovsky Yielding) holds a project including commercial spaces in the Nofei Ben Shemen neighborhood in Lod.
Prashkovsky Yielding holds a commercial building for lease whose construction has been completed and which is expected to begin operating after receiving Form 4 in Be'er Ya'akov.

Additionally, there are several projects under construction and/or in planning, as detailed below:

Galil Yam Herzliya - The Company holds lease rights in lots 105, 111, and 112 in block 6423 intended according to the TMAL-1068 plan to include, among other things, a commercial front with an area of approximately 1,612 sqm (gross). During the report period, an excavation and shoring permit was received and works began.
In Ramat Gan Ganei Or - Owned by Prashkovsky Yielding, land on which, among other things, a commercial front of approximately 770 gross sqm intended for lease can be established. After the report period, an excavation and shoring permit was received and works began.
In Rehovot - Owned by Prashkovsky in the 1000 (which is a subsidiary of Prashkovsky Yielding), real estate on which an integrated project is being established that will include, among other things, commercial spaces intended for lease.

Rehovot TMAL 3003 - The Company has rights to build projects for commercial use with an area of approximately 8,613 sqm (approx. 7,671 sqm primary plus approx. 942 sqm service) which are intended for lease.

In Rishon LeZion lot 541 the 1000 Complex - Owned by Prashkovsky Yielding, land on which, among other things, a hotel and commercial spaces intended for lease can be established.
In Tel Aviv Sde Dov - In the first quarter of 2026, Prashkovsky Yielding won two tenders in Sde Dov in Tel Aviv, on lands where, among other things, approximately 4,618 sqm of employment space and approximately 4,663 sqm of commercial space intended for lease can be established. As of the balance sheet date, payments on account of the land were recorded in the Company's books, paid in accordance with the tender terms.
Building rights in Rehovot - At the end of March 2025, Prashkovsky Yielding sold its full rights in the commercial project in Rehovot (25%) to third parties, except for additional building rights if added only in new lots allocated to the rights holders in the real estate by virtue of a new local plan promoted by the local committee based on the approved TMAL 1086.

Prashkovsky Investments and Construction Ltd.

Notes to Condensed Consolidated Financial Statements, as of March 31, 2026 (unaudited)

Note 4 - Operating Segments (Continued)

Investment Real Estate in the USA - A field carried out through a company registered in the USA and under the Company's control. It has rights in 111 residential units for rent in Florida, USA. Following the Company management's decision on its desire to realize the remaining 111 residential units, a total of 52,325 thousand NIS is presented under the investment real estate designated for realization item regarding the said residential units.
Housing for Rent in Israel - A field carried out through Prashkovsky Yielding and its subsidiaries and includes two active projects and five more projects, which are under construction and/or in planning:
Nativy Dor in Neve Doron operates a long-term rental housing project in Ramla with 3 buildings including 241 housing units.
Nativy Dor in Ben Shemen operates a long-term rental housing project in Lod with 2 buildings including 286 housing units.
In January 2022, the court approved winning a bidding process by the company Prashkovsky in the 1000, for land in Rehovot on which an integrated project can be established that will include, among other things, in Phase A, subject to the approval of a local plan and the issuance of a building permit, approximately 708 housing units, of which approximately 468 units will be designated for rent. Construction of the project according to the existing permit as of the report date, including approximately 515 housing units, is in full swing.

In December 2022, Prashkovsky Yielding won a rental housing tender in Be'er Ya'akov, in a project with 6 buildings including 298 housing units, which will be designated for long-term rental. The project is in stages of construction.

In December 2023, Prashkovsky Yielding won a tender in Ganei Or in Ramat Gan, for land on which, among other things, 215 housing units can be established (subject to concessions) that will be designated for long-term rental. As of the report date, works began on the project according to the excavation and shoring permit received.
In October 2020, Prashkovsky Yielding won a tender published by the Rishon LeZion Municipality for the purchase of rights in lot 541 in the 1000 Complex in Rishon LeZion; according to the approved plan, a project can be established that will include, among other things, approximately 1,050 units for long-term rental.
In the first quarter of 2025, Prashkovsky Yielding won two tenders in Sde Dov in Tel Aviv, for lands on which, among other things, approximately 966 units for long-term rental can be established. As of the balance sheet date, payments on account of the land were recorded in the Company's books, paid in accordance with the tender terms.

B. Segment results include segment revenues and costs and expenses directly attributable to each segment. Common expenses are allocated to segments in a reasonable manner.
C. Segment assets include all assets used by the segment and mainly include cash and cash equivalents, receivables and debit balances, inventory, fixed property, and investment real estate.
D. Segment liabilities include all liabilities used by the segment and mainly include liabilities to suppliers, creditors, and credit balances and liabilities to banks.

Prashkovsky Investments and Construction Ltd.

Notes to Condensed Consolidated Financial Statements, as of March 31, 2026 (unaudited)

Note 4 - Operating Segments (Continued)

E. Below is segment data (in thousands of NIS):

	For the three-month period ended March 31, 2026
	Residential Real Estate in Israel	Commercial Buildings in Israel	Investment Real Estate in the USA thousands of NIS	Housing for Rent in Israel	Total
Income Statement Information
Revenues from external customers	121,940	4,566	1,838	4,855	133,199
Unallocated revenues	-	-	-	-	-

	For the three-month period ended March 31, 2026
	Residential Real Estate in Israel	Commercial Buildings in Israel	Investment Real Estate in the USA thousands of NIS	Housing for Rent in Israel	Total
Total revenues					133,199

Segment results	19,014	3,967	(417)	21,318	43,882
Unallocated results					(8,261)
Financing expenses, net unallocated					(17,798)
Share in profits of held companies					386
Income taxes					(659)
Net profit					17,550
	As of March 31, 2026
---	---	---	---	---	---
	Residential Real Estate in Israel	Commercial Buildings in Israel	Investment Real Estate in the USA thousands of NIS	Housing for Rent in Israel	Total
Assets and Liabilities Information
Segment assets	3,615,013	820,641	58,377	2,562,218	7,056,249
Unallocated assets					192,191
Total assets					7,248,440

Segment liabilities	1,790,800	367,172	1,535	1,578,095	3,737,602
Unallocated liabilities					1,299,884
Total liabilities					5,037,486

Segment depreciation and amortization	399	-	19	-	418
Unallocated depreciation and amortization					316
Total depreciation and amortization					734

Capital additions to non-current assets	3,970	6,352	612	97,275	108,209
Unallocated capital additions					2,960
Total capital additions					111,169

5/20/2026 | 12:02:40 PM | v1.2.5

Prashkovsky Investments and Construction Ltd

Notes to the condensed consolidated financial statements, as of March 31, 2026 (unaudited)

Note 4 - Operating Segments (continued)

E. Following are the segment data (in thousands of NIS) (continued):

	For the three-month period ended March 31, 2025
Information on Profit and Loss	Entrepreneurial Real Estate in Israel	Commercial Buildings in Israel	Investment Real Estate in USA thousands of NIS	Rental Housing in Israel	Total
Revenues from external customers	164,584	5,223	5,316	4,293	179,416
Unattributed revenues					43
Total revenues					179,459
Segment results	31,320	1,234	3,534	(9,236)	26,852
Unattributed results					(6,848)
Finance expenses, net unattributed					(15,276)
Share in profits of held companies					523
Taxes on income					(254)
Net profit					4,997
	As of March 31, 2025
---	---	---	---	---	---
Information on Assets and Liabilities	Entrepreneurial Real Estate in Israel	Commercial Buildings in Israel	Investment Real Estate in USA thousands of NIS	Rental Housing in Israel	Total
Segment assets	2,980,935	881,297	177,005	1,830,133	5,869,370
Unattributed assets					132,261
Total assets					6,001,631
Segment liabilities	1,855,006	386,331	3,790	1,027,086	3,272,213
Unattributed liabilities					745,219
Total liabilities					4,017,432
Depreciation and amortization in segment	2,030	-	26	-	2,056
Unattributed depreciation and amortization					265
Total depreciation and amortization					2,321

	As of March 31, 2025
Information on Assets and Liabilities	Entrepreneurial Real Estate in Israel	Commercial Buildings in Israel	Investment Real Estate in USA thousands of NIS	Rental Housing in Israel	Total
Capital additions to non-current assets	2,375	31,206	202	167,302	201,085
Unattributed capital additions					172
Total capital additions					201,257

Prashkovsky Investments and Construction Ltd

Notes to the condensed consolidated financial statements, as of March 31, 2026 (unaudited)

Note 4 - Operating Segments (continued)

E. Following are the segment data (in thousands of NIS) (continued):

For the year ended December 31, 2025
	Entrepreneurial Real Estate in Israel	Commercial Buildings in Israel	Investment Real Estate in USA	Rental Housing in Israel	Total
Information on Profit and Loss			thousands of NIS
Revenues from external customers	924,159	17,128	20,652	17,569	979,508
Unattributed revenues					178
Total revenues					979,686

Segment results	172,896	16,856	8,344	141,077	339,173
Unattributed results					(34,682)
Finance expenses, net unattributed					(68,658)
Share in profits of held companies					2,947
Taxes on income					(30,561)
Net profit					208,219

As of December 31, 2025
	Entrepreneurial Real Estate in Israel	Commercial Buildings in Israel	Investment Real Estate in USA	Rental Housing in Israel	Total
Information on Assets and Liabilities			thousands of NIS
Segment assets	3,427,455	781,993	75,757	2,447,868	6,733,073
Unattributed assets					180,811
Total assets					6,913,884

Segment liabilities	1,868,397	372,244	17,972	1,418,910	3,677,523
Unattributed liabilities					1,041,742
Total liabilities					4,719,265

Depreciation and amortization in segment	2,168	-	85	-	2,253
Unattributed depreciation and amortization					1,132
Total depreciation and amortization					3,385

Capital additions to non-current assets	9,927	96,765	759	640,704	748,155
Unattributed capital additions					737
Total capital additions					748,892

Prashkovsky Investments and Construction Ltd

Notes to the condensed consolidated financial statements, as of March 31, 2026 (unaudited)

Note 5 - Material events during and after the reporting period

In accordance with the shelf prospectus of the Company dated July 22, 2024 and in accordance with the shelf offering report dated February 15, 2026, the Company issued, on February 16, 2026, 400,000 thousand NIS par value BONDS (Series 17) registered in name, of 1.00 NIS par value each, for a net consideration of approximately 394,611 thousand NIS. The BONDS (Series 17) bear annual interest at a rate of $2.67\%$ . The principal of the BONDS (Series 17) and the interest thereon are linked to the Consumer Price Index. The effective annual interest is $2.86\%$ . The principal of the BONDS (Series 17) is due for repayment in one payment on December 31, 2033. The interest payments for the BONDS (Series 17) are semi-annual, on June 30 of each of the years 2026-2033 and on December 31 of each of the years 2026-2033.

Midroog Ltd. set a rating of A1 (negative outlook) for the BONDS (Series 17).

As collateral for the issuance of the BONDS (Series 17), the Company undertook to pledge its rights in the apartments and commercial areas intended for rental in the Lod Ben Shemen project as well as its said revenues, for the benefit of the Trustee as specified in the Trust Deed of the BONDS (Series 17). Until the date on which a first-degree mortgage registration on the rights in the project is possible, the shares held by Prashkovsky Menivim in Netivei Dor in Ben Shemen will be pledged for the benefit of the holders of the BONDS (Series 17) as well as the owner loans provided by the Company and Prashkovsky Menivim.

In April 2026, the issuance proceeds were released to the Company accordingly.

Prashkovsky Investments and Construction Ltd

Notes to the condensed consolidated financial statements, as of March 31, 2026 (unaudited)

Note 5 - Material events during and after the reporting period

The following is a disclosure of the financial data of Netivei Dor in Ben Shemen provided following the Company's commitment to pledge the shares of Netivei Dor in Ben Shemen as stated above and the provisions of the Trust Deed:

Netivei Dor in Ben Shemen Balance Sheet:

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Notes to the condensed consolidated financial statements as of March 31, 2026 (Unaudited)

Note 5 - Material events during the report period and thereafter
Income Statement Nativy in Ben Shemen:

	For the year ended December 31	For the three-month period ended March 31
	2025	2025	2026
	Audited	Unaudited
		NIS thousands
Income
Sale of apartments	43,984	11,954	2,140
From rental	-	-	367
Total income	43,984	11,954	2,507
Costs
Cost of apartments sold	30,133	8,282	1,486
Rental cost	-	-	371
Total costs	30,133	8,282	1,857
Gross profit	13,851	3,672	650

Changes in fair value of investment property	119,746	(4,049)	(5,530)
General and administrative expenses	1,070	153	846
Operating profit (loss)	132,527	(530)	(5,726)

Financing expenses	2,399	219	2,767
Profit (loss) before taxes on income	130,128	(749)	(8,493)
Income taxes (tax benefit)	15,529	(354)	(853)
Net profit (loss)	114,599	(395)	(7,640)

Notes to the condensed consolidated financial statements as of March 31, 2026 (Unaudited)

Note 5 - Material events during the report period and thereafter

Statement of changes in equity Nativy in Ben Shemen:

	Paid-up share capital	Capital reserve from transaction with controlling shareholder	Retained earnings	Total
	NIS thousands
Balance as of January 1, 2026 (Audited)	1	21,956	174,084	196,041
Movement during the period January to March 2026 (Unaudited):
Loss for the period	-	-	(7,640)	(7,640)
Balance as of March 31, 2026 (Unaudited)	1	21,956	166,444	188,401

Statement of changes in equity Nativy in Ben Shemen:

	Paid-up share capital	Capital reserve from transaction with controlling shareholder	Retained earnings	Total
	NIS thousands
Balance as of January 1, 2025 (Audited)	1	17,626	59,485	77,112
Movement during the period January to March 2025 (Unaudited):
Loss for the period	-	-	(395)	(395)
Balance as of March 31, 2025 (Unaudited)	1	17,626	59,090	76,717

Note 5 - Material events during the report period and thereafter
Cash flows Nativy in Ben Shemen:

Note 5 - Material events during the report period and thereafter (continued)

Appendix A - Adjustments required to present the cash flows from operating activities:

Appendix B - Additional information on cash flows:

Cash paid during the period for:

Financing costs (including capitalized costs)	3,845	2,958	13,736

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Notes to the Condensed Consolidated Financial Statements, as of March 31, 2026 (Unaudited)

Note 5 - Material Events During and After the Reporting Period (Continuation)

On March 26, 2026, Prashkovsky Yielding entered, in its name and on behalf of Netivei Dor in Ben Shemen (as the case may be, hereinafter: the "Seller"), into 3 combined transactions (one for each property) for the sale of half of their rights in rental housing projects: Lod Ben Shemen, Be'er Ya'akov, and Ganei Azar in Ramat Gan (hereinafter together: the "Properties").

The parties will act to sign a detailed sale agreement for each of the properties, and to approve the transactions by the competent institutions of the parties, within 60 days from the date of signing the memorandum of understanding (with an option for extension by either party for an additional 30 days). The memorandum of understanding sets out the main points of agreement between the parties which will serve as a basis for negotiation regarding the preparation of the detailed agreement for the sale of each of the properties, as summarized below:

Ben Shemen, Lod – The Seller will sell to the buyer 50% undivided (in Musha'a) of all the Seller's rights in 286 residential units intended for long-term rental for a total of 286,357,000 NIS, and will also sell to the buyer 50% undivided of all the Seller's rights in the commercial units in the area (gross for marketing) of approximately 1,800 sqm for a total of 14,827,500 NIS plus VAT. This property will be sold built and after receiving a completion certificate for the building, with the Seller bearing all payments required to complete the construction as well as all marketing costs as required until the first occupancy of the property.

The consideration will be index-linked in accordance with the provisions of the Sale Law (Apartments) (Assurance of Investments of Apartment Buyers), 1974 ("Sale Law") and will be paid within 14 business days from the date of fulfillment of the conditions precedent (as specified below) and after signing lease contracts and yields regarding 90% of the housing units in the project, whichever is later.

It should be emphasized that the Company has undertaken to pledge its rights in this property in favor of the Trustee for the holders of the Company's BONDS (Series 17) in accordance with the provisions of the trust deed dated February 15, 2026 ("Trust Deed"). The sale of half of the Company's rights to the buyer as stated above will be done in accordance with and subject to the provisions of the Trust Deed.

Be'er Ya'akov – The Seller will sell to the buyer 50% undivided (in Musha'a) of all the Seller's rights in 298 residential units intended for long-term rental for a total of 330,000,000 NIS. This property will be sold built and after receiving a completion certificate for the building, with the Seller bearing all payments required to complete the construction.

The consideration will be index-linked in accordance with the provisions of the Sale Law, and will be paid on the following dates: 50% of the consideration will be paid within 14 business days from the date of fulfillment of the conditions precedent (as specified below), paid according to the project's completion percentage minus the first payment and no more than 40% of the consideration amount on November 1, 2026, and 10% after completion of construction and delivery of possession.

Ganei Azar, Ramat Gan – The Seller will sell to the buyer 50% undivided (in Musha'a) of all the Seller's rights in the land intended for the establishment of a project for the construction of 215 residential units (subject to approval of relief) intended for long-term rental, for a total of 61,500,000 NIS, which will be linked to the Consumer Price Index and paid within 14 business days from the date of fulfillment of the conditions precedent. The parties will work on the joint construction of the project on this land, with each party bearing half of the construction costs.

Partnership Agreements – Regarding each of the properties, a partnership agreement will be signed which will regulate the establishment of a joint venture for each property, and will also regulate the partnership relations of the parties in the land and will also regulate the provision of various services by the Seller and/or someone on its behalf to the joint venture, including the management of the rentals in each of the projects (in exchange for payment of an amount equal to 5.2% of the rent), maintenance services (on a cost + 10% basis), and planning and execution coordination services (only regarding Ganei Azar) in exchange for 3% of the direct execution costs.

Conditions Precedent - Each of the transactions will be subject to the fulfillment of conditions precedent, including, among others, obtaining approval from the Commissioner of the Competition Authority, obtaining approval from "Dira LeHaskir" Government Housing and Rental Company Ltd., the Israel Land Authority, approval from the Investment Authority, all in such a way that no transaction will be completed without the fulfillment of the conditions precedent in all the transactions. Notwithstanding the above, the memorandum of understanding states that if any of the conditions precedent in all three transactions are not met within the period set for their fulfillment, the parties will act to formulate alternative agreements so that the transactions for which the conditions precedent were met can be carried out.

Notes to the Condensed Consolidated Financial Statements, as of March 31, 2026 (Unaudited)

Note 6 - Financial Instruments and Financial Risk Management

A. Financial Instruments

All financial assets and liabilities of the Group are measured at amortized cost. The carrying value of cash and cash equivalents, short-term investments, trade receivables and debit balances, loans to affiliates, credit from banking and other institutions, liabilities to suppliers, service providers, trade payables and credit balances matches or is close to their fair value.

Below are details of financial liabilities whose carrying value does not match their fair value:

	Carrying value as of(*)		Fair value as of
	March 31 2026	December 31 2025	March 31 2026	December 31 2025
	NIS thousands
Ordinary BONDS Series 14(*)	118,098	117,033	117,060	116,073
Ordinary BONDS Series 15(*)	202,790	199,787	208,279	207,717
BONDS Series 16(*)	301,611	297,138	315,600	313,680
BONDS Series 17	395,911	-	396,440	-
Fixed-interest loans(**)	653,063	658,133	585,969	599,631

() Includes interest payable presented in trade payables and credit balances. The fair value was determined based on the quoted price of the BONDS on the stock exchange on the aforementioned dates (Level 1).
(*) The fair value was determined based on data other than quoted prices included in Level 1 that are observable directly or indirectly (Level 2).

B. Financial Risk Management

The Group's activities expose it to various financial risks, such as market risks (CPI risk and interest rate risk), credit risk, and liquidity risk. The Group's risk management focuses on actions to minimize potential negative effects on the Group's financial performance.

As stated above, the financial information for the interim periods does not include the information and disclosures required in annual financial statements, including regarding the Group's financial risk management, and the financial information for the interim period should be read together with the annual financial statements for 2025 and the accompanying notes.

There have been no material changes in the Group's financial risk management policy compared to that reported in the Company's annual financial statements for 2025.

Separate Financial Information

Pursuant to Regulation 38D of the Securities Regulations (Periodic and Immediate Reports), 1970

As of March 31, 2026

(Unaudited)

The Shareholders of Prashkovsky Investments and Construction Ltd.

Re: Special Report of the Auditor on Separate Interim Financial Information
Pursuant to Regulation 38D of the Securities Regulations (Periodic and Immediate Reports), 1970

Introduction

We have reviewed the separate interim financial information presented pursuant to Regulation 38D of the Securities Regulations (Periodic and Immediate Reports), 1970 of Prashkovsky Investments and Construction Ltd. (hereinafter - the Company), as of March 31, 2026, and for the three-month period then ended. 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 have not reviewed the separate interim financial information from the financial statements of subsidiaries and an affiliate whose assets less their liabilities, net, amounted to approximately 44,755 thousand NIS as of March 31, 2026, and the Company's share in their profits amounted to approximately 223 thousand NIS for the three-month period then ended. The separate interim financial information of those companies was reviewed by other accountants whose review reports were provided to us, and our conclusion, as far 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 separate interim financial information is not prepared, in all material respects, in accordance with the provisions of Regulation 38D of the Securities Regulations (Periodic and Immediate Reports), 1970.

Baker Tilly Horovitz Sabo Tevet & Cohen Tabach

Accountants

Ramat Gan, May 20, 2026.

| Our Offices:
11 Menachem Begin St.
Ramat Gan 5268104 | Telephone: 03-5665006
Fax: 03/70747-144194 | [email protected]
www.bakertilly.co.il |
| --- | --- | --- |

Baker Tilly is the trade name of Horovitz Sabo Tevet & Cohen Tabach

The firm is an independent firm in the Baker Tilly International accounting network

The name Baker Tilly and the associated logo are used under a license granted by Baker Tilly International

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Data on financial position from the consolidated financial statements attributed to the company itself, as of

	March 31		December 31
	2026	2025	2025
		Unaudited	Audited
NIS in thousands
Assets
Current Assets
Cash and cash equivalents	1,388	698	1,058
Deposits and designated bank accounts	433,706	3,595	13,106
Receivables and debit balances	23,605	20,109	23,061
Subsidiaries	49,115	107,534	103,967
Assets regarding contracts with customers	167,677	299,809	456,311
Inventory of buildings under construction	2,006,899	1,877,935	1,846,265
Inventory of apartments	44,978	-	50,001
Current tax assets	17,486	6,608	25,669
Total current assets	2,744,854	2,316,288	2,519,438

Non-current assets
Inventory of real estate for construction and land	100,015	92,114	98,377
Investments in held companies	1,938,355	1,630,638	1,878,886
Investment property	121,331	99,235	121,145
Fixed assets, net	8,812	4,907	6,313
Right-of-use assets	25,497	4,443	25,458
Deferred tax assets	1,915	-	-
Total non-current assets	2,195,925	1,831,337	2,130,179

Total assets	4,940,779	4,147,625	4,649,617

Data on financial position from the consolidated financial statements attributed to the company itself, as of

Yosef Prashkovsky Chairman of the Board

Sharon Prashkovsky General Manager and Director

Moti Nechamias Deputy CEO and CFO

Date of approval of the separate financial information: May 20, 2026.

Prashkovsky Investments and Construction Ltd
Data on the profit or loss from the consolidated financial statements attributed to the company itself

(*) Non-material adjustment of comparative figures. See Note 4.

Data on the comprehensive income from the consolidated financial statements attributed to the company itself

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Data on cash flows from the consolidated financial statements attributed to the company itself

	For a three-month period ended on March 31		For the year ended on December 31
	2026	2025	2025
	Unaudited		Audited
	NIS thousands
Cash flows from operating activities
Net profit	17,550	4,997	208,219
Adjustments required to present cash flows from operating activities (Appendix A)	121,812	(261,117)	(579,948)
Net cash, used in operating activities	139,362	(256,120)	(371,729)
Cash flows from investing activities
Investment in investment property	(1,451)	(994)	(3,599)
Investment in designated bank deposits and accounts, net	(420,600)	(783)	(10,294)
Acquisition of fixed assets	(2,917)	(173)	(2,544)
Dividend from a subsidiary and an associate	-	135	135
Loans granted to held companies, net	(38,536)	(17)	(94,038)
Net cash, used in investing activities	(463,504)	(1,832)	(110,340)
Cash flows from financing activities
Proceeds from the issuance of BONDS, net of issuance costs	394,611	-	296,877
Credit from banking corporations and short-term loans, net	(69,720)	258,641	263,350
Repayment of BONDS	-	-	(115,500)
Issuance of share capital and premium	-	-	49,663
Purchase of treasury shares	-	-	(10,000)
Repayment of lease liability	(419)	(377)	(1,649)
Net cash, generated from financing activities	324,472	258,264	482,741
Increase in cash and cash equivalents	330	312	672
Balance of cash and cash equivalents at the beginning of the period	1,058	386	386
Balance of cash and cash equivalents at the end of the period	1,388	698	1,058

Appendix to the Data on cash flows from the consolidated financial statements attributed to the company itself

Appendix A - Adjustments required to present cash flows from operating activities

	For a three-month period ended on March 31		For the year ended on December 31
	2026	2025	2025
	Unaudited		Audited
NIS thousands
Revenues and expenses not involving cash flows:
Changes in fair value of investment property	1,265	878	(18,427)
Depreciation and amortization	798	631	2,759
Change in deferred taxes, net	(12,527)	1,040	5,096
Revaluation of long-term loan	(1,155)	1,553	(10,574)
Change in liability for employee benefits, net	121	117	481
Losses (profits) of companies accounted for using the equity method	(13,655)	7,975	(154,101)
Amortization of capital notes discount	(8,874)	(7,781)	(32,972)
Financing in respect of BONDS	9,841	5,073	4,369
Financing in respect of lease	21	42	146
Interest receivable from associates	(49)	(53)	(202)
Cost of warrants for employees	96	263	934
Gain from lease cancellation	-	-	(226)
	(24,118)	9,738	(202,717)
Changes in asset and liability items:
Decrease (increase) in debtors and debit balances, assets in respect of contracts with customers and current tax assets	351,483	(178,726)	(353,807)
Decrease (increase) in inventory of buildings under construction and inventory of real estate for construction and land	(162,272)	10,133	35,540
Decrease (increase) in inventory of apartments	5,023	1,397	(48,604)
Increase (decrease) in liabilities in respect of contracts with customers and advances from apartment buyers	22,394	(4,026)	29,285
Increase in suppliers and subcontractors	22,261	2,492	39,789
Decrease in liabilities to real estate sellers	(76,095)	(93,892)	(130,196)

Appendix B - Additional information on cash flows:

Cash paid during the period for:
Financing expenses (including capitalized costs)	18,041	20,660	108,497
Taxes on income	5,040	5,002	25,005
Cash received during the period for:
Financing income (including capitalized income)	253	22	96
Taxes on income	2,380	-	15

Appendix C - Material activities not involving cash flows:

Recognition of a right-of-use asset against a lease liability	419	13	21,965

Additional Information to the Separate Financial Statements

Additional Information

General

A. The separate financial information of the company is presented in accordance with Regulation 38D of the Securities Regulations (Periodic and Immediate Reports), 1970 and does not include all the information required by Regulation 9C and the Tenth Schedule to the Securities Regulations (Periodic and Immediate Reports), 1970 regarding separate financial information of the entity. It should be read together with the separate financial information as of December 31, 2025 and for the year ended on that date and together with the condensed consolidated interim financial statements as of March 31, 2026 (hereinafter: "the Consolidated Reports").

B. The separate financial information was prepared in accordance with the accounting policy specified in Section A.3 of the additional information to the company's annual separate financial statements as of December 31, 2025, except for changes in accounting policy specified in Note 2.C to the condensed consolidated interim financial statements published with this separate financial information.

C. In this separate financial information - held entities as defined in Note 1.B in the annual consolidated reports of the company as of December 31, 2025.

D. Immaterial adjustment of comparative figures

Following the application of Accounting Staff Position 11-6 of the Securities Authority, an immaterial adjustment of comparative figures was performed in the data on profit or loss from the consolidated financial statements attributed to the company itself for the three-month period ended March 31, 2025, in connection with the splitting of revenues and cost of sales between those arising from the sale of apartments and land and those arising from the performance of construction works and provision of construction services in projects in which the company entered into combination transactions and evacuation-construction transactions.

The following is a detail of the adjustment of comparative figures in the data on profit or loss:

	For a three-month period ended on March 31, 2025
	Previously presented in financial reports	Previously presented in financial reports
Data on the profit or loss from the consolidated financial statements attributed to the company itself
Revenues from the sale of apartments and land	135,160	125,920
Revenues from performance of construction works and provision of construction services	-	9,240
Cost of apartments and land sold	108,787	101,135
Cost of performance of construction works and provision of construction services	-	7,652

The company examined the said adjustments in relation to the relevant reporting periods and reached the conclusion, after examining quantitative and qualitative parameters, that they do not affect the economic decision-making process and/or the analysis of the said financial statements by the users of the financial statements.

Quarterly Report on the Effectiveness of Internal Control over Financial Reporting and Disclosure according to Regulation 38C(a):

The management, under the supervision of the Board of Directors of Prashkovsky Investments and Construction Ltd. (hereinafter - the Corporation), is responsible for establishing and maintaining adequate internal control over financial reporting and disclosure in the Corporation.

For this purpose, the members of management are:

Mr. Sharon Prashkovsky, member of the Board of Directors and General Manager;
Mr. Moti Nahmias, Deputy CEO and Chief Financial Officer;

Internal control over financial reporting and disclosure includes controls and procedures existing in the Corporation designed by the General Manager and the most senior officer in the finance field or under their supervision or by those actually performing the said roles, under the supervision of the Corporation's Board of Directors, and intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of reports in accordance with the provisions of the law, and to ensure that information that the Corporation is required to disclose in reports it publishes according to the provisions of the law is collected, processed, summarized, and reported on time and in the format prescribed by law.

Internal control includes, among others, 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 most senior officer in the finance field or to those actually performing the said roles, in order to allow decision-making at the appropriate time, in reference to 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 annual report on the effectiveness of internal control over financial reporting and disclosure attached to the periodic report for the period ended December 31, 2025 (hereinafter - "the latest annual report on internal control"), the Board of Directors and management evaluated the internal control in the Corporation; based on this evaluation, the Board of Directors and the management of the Corporation concluded that the internal control as stated, as of December 31, 2025, is effective.

Until the date of the report, no event or matter was brought to the attention of the Board of Directors and management that would change the effectiveness evaluation of the internal control, as brought in the framework of the latest annual report on internal control;

As of the date of the report, based on the evaluation of the effectiveness of the internal control in the latest annual report on 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.

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CEO Declaration according to Regulation 38C(d)(1):

I, Sharon Prashkovsky, declare that:

(1) I have examined the quarterly report of Prashkovsky Investments and Construction Ltd (hereinafter – the Corporation) for the first quarter of 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 statements 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 as of the dates and for the periods to which the reports refer;

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

(a) All significant deficiencies and material weaknesses in the determination or operation of the 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 statements in accordance with the provisions of the law; and -

(b) Any fraud, whether material or immaterial, involving the CEO or those directly subordinate to him or involving other employees who have a significant role in the 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 Statements), 2010, is brought to my attention by others in the Corporation and in the consolidated companies, particularly during the period of preparation of the reports; and -

(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 financial statements in accordance with the provisions of the law, including in accordance with accepted accounting principles.

(c) No event or matter has been brought to my attention that occurred during the period between the date of the last report (quarterly or periodic report, as applicable) and the date of this report, 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, under any law.

May 20, 2026

Sharon Prashkovsky

CEO and Member of the Board of Directors

Declaration of the Senior Officer in the field of finance according to Regulation 38C(d)(2):

I, Moti Nahmias, declare that:

(1) I have examined the interim financial statements and other financial information included in the reports for the interim period of Prashkovsky Investments and Construction Ltd (hereinafter - the Corporation) for the first quarter of 2026 (hereinafter - the "Reports" or the "Interim Reports");

(2) To my knowledge, the interim financial statements and the other financial information included in the reports for the interim period 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 statements and the other financial information included in the reports for the interim period fairly reflect, in all material respects, the financial position, results of operations, and cash flows of the Corporation as of the dates and for the periods to which the reports refer;

(a) All significant deficiencies and material weaknesses in the determination or operation of the internal control over financial reporting and disclosure, as it relates to the interim financial statements and the other financial information included in the reports for the interim period, 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 statements in accordance with the provisions of the law; and -

(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 (Financial Statements), 2010, is brought to my attention by others in the Corporation and in the consolidated companies, particularly during the period of preparation of the reports; and -

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

(c) No event or matter has been brought to my attention that occurred during the period between the date of the last report (quarterly report or periodic report, as applicable) and the date of this report, relating to the interim financial statements and any other financial information included in the reports for the interim period, 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, under any law.

May 20, 2026

Moti Nahmias, Deputy CEO and Chief Financial Officer

To:

The Board of Directors of

Prashkovsky Investments and Construction Ltd (hereinafter - "the Company")

Rehovot, 10 Moti Kind St.

Re: Consent to the inclusion of a review report and a special report of Prashkovsky Investments and Construction Ltd (hereinafter - the Company) in connection with a shelf prospectus of the Company from July 2024

We hereby notify you that we consent to the inclusion (including by way of reference) of our reports detailed below in the shelf offering reports which will be published by the Company under the shelf prospectus in the subject matter:

Review report dated May 20, 2026, on 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 accountant dated May 20, 2026, on the summary of the 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 and Immediate Reports), 1970.
Auditing accountant's report dated March 11, 2026, on the consolidated financial statements of the Company as of December 31, 2025 and 2024, and for each of the three years in the period ended December 31, 2025.
Special auditing accountant's report dated March 11, 2026, on the separate financial information of the Company as of December 31, 2025 and 2024, and for each of the three years in the period ended December 31, 2025, according to Regulation 9C of the Securities Regulations (Periodic and Immediate Reports), 1970.
Auditing accountant's report dated March 11, 2026, regarding the audit of internal control components over financial reporting as of December 31, 2025, in accordance with Section 9B(c) of the Securities Regulations (Periodic and Immediate Reports), 1970.

Sincerely,

Baker Tilly Horwath Isan Sabo Tevet & Cohen Tabach

Accountants

Our Offices:
11 Menachem Begin St.
Ramat Gan 52681

Phone: 03-5665006
Fax: 0747-144194/7
[email protected]
www.bakertilly.co.il

Baker Tilly is the trade name of Horwath Isan Sabo Tevet & Cohen Tabach

The firm is an independent firm in the Baker Tilly International accounting network.

The Baker Tilly name and the associated logo are used under a license granted by Baker Tilly International.

5/20/2026 | 12:02:47 PM | v1.2.5

AI assistant

Prashkovsky Investments and Construction Ltd. — Interim / Quarterly Report 2026

6996_rns_2026-05-20_bfebf4bb-7988-46b4-a02c-64150bfc7bae.pdf

Prashkovsky Investments and Construction Ltd.

Table of Contents

Part A - Update of the Description of the Corporation's Business for the Periodic report for 2025 of Prashkovsky Investments and Construction Ltd. ("the Company")

1. Update to Sections 2.4 and 18 in the Description of the Corporation's Business chapter - regarding "Residential Housing for Rent in Israel"

2. Update to Section 32 in the Description of the Corporation's Business chapter - regarding "Discussion of Risk Factors"

A. "Iron Swords" War, Operation "With Lavi" and Operation "Lion's Roar"

B. Interest risks

C. Inflation risks

3. Update to Regulation 22 in the fourth chapter of the Periodic report for 2025 regarding - "Transactions with controlling shareholders or in which controlling shareholders have a personal interest"

Prashkovsky Investments and Construction Ltd.

1. General

1.1. Principal data from the description of the corporation's business

1.2. Development of the Company's activities - entrepreneurial real estate field - residential construction in Israel

Details regarding contractor promotions:

Details regarding transaction cancellations:

1.3. Development of the Company's activities in the investment real estate field - the commercial properties field in Israel

1.4 Developments in the Company's Activities in the Field of Investment Property - Residential Rental Sector in the USA

1.5. Development of the Company's Activity in the Field of Residential Rental in Israel

2. Financial Position

3. Results of Operations including details of Revenues, Costs and Gross Profit of the projects

Revenue, cost of revenue and gross profit - for the three-month period ended March 31, 2026

Revenue, cost of revenue and gross profit - for the three-month period ended March 31, 2025

4. Liquidity

6. The Company's Financing Sources

Corporate Governance Aspects

7. Corporate Governance

A. Donations

B. Directors with Accounting and Financial Expertise

C. The Internal Auditor

D. Reporting on Independent Directors

Disclosure Instructions in Connection with the Financial Reporting of the Corporation

8. Material events during the report period and thereafter

9. Self-purchase

10. Equal Pay for Female and Male Employees Law, 5756-1996

11. Details regarding the corporation's debt certificates

C. Rating

D. Compliance with terms and obligations to the BONDS holders:

E. Requirement to perform actions on behalf of the trustee

F. Company's obligations to comply with financial covenants - as set forth in the trust deeds

G. Collateral for the holders of the company's BONDS

Prashkovsky Investments and Construction Ltd.

Review Report of the Auditing Accountants to the Shareholders of Prashkovsky Investments and Construction Ltd.

Introduction

Scope of Review

Conclusion

Condensed Consolidated Statements of Financial Position as of

Condensed Consolidated Statements of Comprehensive Income

Condensed Consolidated Statements of Changes in Equity (in NIS thousands)

Condensed Consolidated Statements of Cash Flows

Note 1 - General

A. General Description of the Company and its Activities

B. The condensed interim consolidated financial statements were approved by the Company's Board of Directors on May 20, 2026 (the "date of signing the report").

Note 2 - Reporting Rules and Accounting Policy

A. Basis of Preparation of the Financial Statements

Prashkovsky Ltd.

Notes to the Condensed Consolidated Financial Statements as of March 31, 2026 (Unaudited)

Note 2 - Reporting Rules and Accounting Policy (Continued)

B. Use of Estimates and Discretion

D. Adjustment of Comparative Figures

Note 3 - Associate Companies Accounted for Using the Equity Method

Notes to Condensed Consolidated Financial Statements, as of March 31, 2026 (unaudited)

Note 4 - Operating Segments

A. The Group consists of the following primary segments:

Prashkovsky Investments and Construction Ltd.

Note 4 - Operating Segments (Continued)

Prashkovsky Investments and Construction Ltd.

Notes to Condensed Consolidated Financial Statements, as of March 31, 2026 (unaudited)

Note 4 - Operating Segments (Continued)

Prashkovsky Investments and Construction Ltd

Notes to the condensed consolidated financial statements, as of March 31, 2026 (unaudited)

Note 4 - Operating Segments (continued)

Prashkovsky Investments and Construction Ltd

Note 4 - Operating Segments (continued)

Prashkovsky Investments and Construction Ltd

Notes to the condensed consolidated financial statements, as of March 31, 2026 (unaudited)

Note 5 - Material events during and after the reporting period

Prashkovsky Investments and Construction Ltd

Prashkovsky Investments and Construction Ltd. Interim / Quarterly Report 2026