Electra Real Estate : Q2 2023 financial report - translated version

Electra Real Estate Ltd.

Interim Consolidated Financial Information

As of June 30, 2023

(Unaudited)

This is an English translation of parts of the information included in the full Hebrew report of the company, that was published on August 31, 2023 (reference No. 2023-01-082399) at the ISA reporting website (magna.isa.gov.il) (hereafter: "the Hebrew Version"). The English version is Voluntary and only for convenience purposes. This is not an official translation and has no binding force. The translation in any case cannot perfectly reflect the Hebrew Version. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.

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Electra Real Estate Ltd.
Contents
Review Interim Financial Information	3
Financial Information as of June 30, 2023 (Unaudited)
Consolidated Information of Financial Position	4
Consolidated Information of Profit or Loss	6
Consolidated Information of Comprehensive Income	7
Consolidated Information of Changes in Equity	8
Consolidated Information of Cash Flows	13
Notes to the Interim Consolidated Financial Statements	15

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Kost Forer Gabbay & Kasierer	Tel: [phone]
144 Menachem Begin Road, Building A,	Fax: [phone]
Tel-Aviv 6492102, Israel	ey.com

To: Electra Real Estate Ltd.

Re: Interim Financial Information

Per your request, we have reviewed the accompanying interim consolidated financial information of Electra Real Estate Ltd. ("the Company") as of June 30, 2023 and for the period of six and three months then ended ("the Interim Financial Information"). The Interim Financial Information is the responsibility of the Company's Board of Directors and management. Our responsibility is to express a conclusion regarding the Interim Financial Information based on our review.

We did not review the interim financial information of certain subsidiaries, whose assets constitute approximately 0.3% of the total consolidated assets as of June 30, 2023 and whose revenues constitute approximately 0% of the total consolidated revenue for periods of six months and of the three months ended on June 30. 2023. The interim financial information for those companies were reviewed by other auditors, whose reports have been furnished to us, and our conclusion, insofar as it relates to amounts included for those companies, is based on the reports of the other auditors.

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.

Based on our review and the reports of the other auditors, we concluded an unqualified conclusion on the Company's consolidated interim financial statements in our report dated August 31, 2023.

The accompanying interim financial information, which are derived from the company's interim consolidated financial statements, are condensed interim financial information and do not include the disclosures required by International Financial Reporting Standards (IFRS). If the omitted disclosures were included in the accompanying interim financial information, it might influence the user's conclusions about the consolidated financial position, results of operations, changes in equity and cash flows of the company. Accordingly, the accompanying interim financial information are not designated for those who are not informed about such matters.

Based on our review and the reports of other auditors, nothing has come to our attention that causes us to believe that the accompanying Interim Financial Information is not present fairly, in all material respects, the information contained in it.

Tel-Aviv, Israel	KOST FORER GABBAY & KASIERER
August 31, 2023	A Member of Ernst & Young Global

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Electra Real Estate Ltd.

CONSOLIDATED INFORMATION OF FINANCIAL POSITION

US DOLLARS (in thousands)

	June 30			June 30			December 31
	2023	2022	2022
Section	Unaudited			Unaudited			Audited
Assets
Current assets
Cash and cash equivalents	8,771	28,686	7,757
Short-term deposits and designated deposits	-	11,798	-
Financial asset at fair value through profit or loss	-	252	-
Trade receivables	-	23	-
Current tax assets	-	1,500	-
Other receivables and loans	37,751	45,618	36,597
Investments in companies accounted for at equity that are	-		115,964		-
held for sale
Total current assets	46,522	203,841	44,354
Non-current assets
Investments in residential property held for rental and others
accounted for at equity	767,140	513,698	719,418
Long-term loans and other receivables	21,047	7,176	18,264
Fixed assets	309	409	356
Usage right assets	1,108			1,225			1,282
Total non-current assets	789,604			522,508			739,320
Total assets	836,126			726,349			783,674

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Electra Real Estate Ltd.

CONSOLIDATED INFORMATION OF FINANCIAL POSITION

US DOLLARS (in thousands)
							June 30	June 30				December 31
						2023			2022				2022
							Unaudited	Unaudited				Audited
Liabilities and Equity
Current Liabilities
Short-term credit (including current maturities of loans
and bonds)			85,021			78,011		46,188
Current tax liabilities			758			725		5,330
Suppliers and providers of services	100			433		67
Other payables			12,044			10,319		11,328
Current maturities of leasing liabilities	354			294		370
Total current liabilities			98,277			89,782		63,283
Non-current Liabilities
Bonds			96,155			43,420		66,861
Leasing liabilities			652			897		878
Other long-term liabilities			33,893			15,994		20,120
Long-term loans from banks			143,500			116,589		149,244
Deferred taxes			77,743			83,260				79,787
Total non-current liabilities			351,943			260,160		316,890
Equity
Share capital			58			58	*)	58
Share premium			185,270			185,270	*)	185,270
Capital reserves			(117,548)			(113,384)	(119,023)
Retained earnings			312,382			301,071				332,509
Equity attributed to the shareholders	380,162			373,015		398,814
Non-controlling interests			5,744			3,392				4,687
Total equity			385,906			376,407				403,501
Total liabilities and equity			836,126			726,349		783,674
*) Reclassified.
	August 31, 2023			Chief Financial Officer		Joint General Manager	Chairman of the Board
	signture			signture				of Directors signture
	Date of approval of the	E. Vessely		A. Yaniv							G. Rushinek
	Chief Financial						Chairman of the
	financial statements		Chief Executive Officer
	Officer		Board of Directors

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