Gazit Globe : Q2 2021 - Presentation

FINANCIAL RESULTS SECOND QUARTER 2021

AUGUST 2021

GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE

DISCLAIMER

This presentation may include forward-looking statements as defined in section 32A of the Securities Law, 1968, including forecasts, evaluations, estimates, financial and operational data that refers to future events whose fulfillment is not certain and is not under the control of the Company and its investee companies, forecasts and data in respect of projects in planning and development, forecast development timetables, construction costs and future revenues and other financial information, and the impact of the COVID-19 pandemic and the resulting global economic crisis. Such information is based on the Company's subjective evaluation based upon past experience and the professional knowledge the Company has accumulated, using the Company's and its investee companies' existing knowledge, and on the Company's expectations and current estimates concerning future developments and trends, and their expected impact on the Company's operations, as known to the Company at the time of preparation of this presentation.

Notwithstanding that we believe that the assumptions underlying any forward-looking assumption are reasonable, any such assumption can turn out to be inaccurate, and a forward-looking declaration based on such an assumption can turn out to be erroneous. Actual results and future trends might materially change from those presented or understood from any forward- looking declaration in this presentation, dependent on a range of factors. These include risk factors that characterize the Company's business and that of its investee companies as detailed in the Company's Periodic Report and other information we have submitted to the Israel Securities Authority, including under the heading of "Risk Factors" in the Company's Periodic Report, which include economic conditions that impact on geographic regions, changes in leasing policies of retail chains and major tenants, risks involved in the area of renovation and development of properties, competition, growth in operating costs and other expenses, developments in the economic and geopolitical environment in areas where the Company and its investee companies operate, including with attention to the COVID-19 pandemic and its effects, as well as receipt of regulatory approvals required in order to realize development potential. Accordingly the results of the Company's operations may be materially different from what is stated in this presentation.

Apart from the duty to disclose information as required under the applicable securities laws, we do not undertake to update the information in this presentation or to publish the results of any change to any declaration that might occur in order to reflect events or circumstances that will have occurred, or to which we became aware, after the date of this presentation.

The information included in this presentation does not represent a prospectus or other offering document, and is not and does not create any invitation of proposal to sell or any solicitation for any invitation or offer to purchase or register for purchase any securities of Gazit-Globe Ltd or any other company. In addition the information or any part of it or the fact of its distribution do not represent the basis or possibility to rely upon them in respect of any action, contract, undertaking or in connection with securities of Gazit-Globe Ltd.

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Second Quarter of 2021

OPERATIONAL PREFORMANCE - MAIN RESULTS

Proportionate NOI

(NIS Millions)

272	0.7%	274
Q2/2020		Q2/2021

The proportionate NOI increased by approx. 0.7% (at a comparable exchange rate increased by 0.4%) compared to the same period of 2020

Operating Cash Flow Per Share
Expanded Solo (NIS)	0.76
0.51	49%
Q2/2020	Q2/2021

FFO Per Share

(NIS)

0.69	0%	0.69

Q2/2020Q2/2021

Equity Per Share

(NIS)	38.5
36.8
	1.7
	NIS
31/12/2020	30/6/2021

The FFO per share has not changed compared to the same period

in 2020

Equity per share increased by approx. NIS 1.7

Occupancy Rate	98.0%	90.5%	93.2%	92.2%	93.1%
As of June 30,2021

93.2%

Total

Israel

U.S.

Brazil

CEE

North Europe

Liquidity2.3

As of June 30, 2021 (Expended Solo )

NIS Billion

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Development This Quarter and After

In Israel - Construction of G CITY Rishon Lezion has begun.

Gazit Horizons has acquired a residential building including 262 apartments in the enter of the business area of Miami, Florida, with an investment of approx. $102 million, since the acquisition, due to the great demand of residential leasing in the area rent rate has increased by 10%.

After the balance sheet date Gazit Horizons has completed Non-Recourse funding backed by a lease agreement with Home-Depot of an asset in Manhattan at an amount of approx. $134 million. The new funding replaces a funding that would have caused tax invasion and will generate proceeds on the investment of approx. $34 million in cash while maintaining full ownership of the property and generating over $600,000 in free cash flow. As of June 30, 2021, the asset is documented in company books IFRS at $116 million. The company estimates that a significant increase in value is expected, given the funding it has received and the lease agreement with Home-Depot.

The first phase of the IPO in the Sao Paulo Stock Exchange has been successfully completed, the Company has completed its targeted debt capital raise (in the local currency) of BRL 650 million (NIS 405 million).The offering generated strong demand among Brazilian institutional investors and closed with a spread of 170 basis points over Brazilian government bonds, at an interest rate of 5.89% linked to the Brazilian index (IPCA) with a duration of 9.4 years.

Prospectus documents of the IPO in Brazil has been submitted and the company estimates the IPO is predicted to start the next quarter.

On August 2nd, 2021, Gazit Globe submitted to the board members of Atrium a non-bindingoffer to acquire Atrium's minority shareholders in a price of 3.35 euros per share, a premium of approx. 14.3% over the closing price of Atrium share.

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URBAN ASSET PORTFOLIO

		Residential
DIY & Homegoods	For Rent
3%		1%

PROVIDING DAILY NEEDS AND SERVICES

Quality Assets Portfolio that Incorporates Partially Open-Air Assets in Densely Populated Urban Areas, Not relied On Dominant Tenants

80% Of Gazit's Assets Are Located In 16 Metropolitan Areas

Entertainment 5%

Non Apparel Retail

22%

Café & Resturants 11%

Brazil

11%

Russia 3%

Slovakia 1%

Tenant Mix

Based on

Proportionate

NOI

Canada

1%

Supermarkets

• Pharmacy 14%

Health, Banks.

Offices &

Services

14%

Apparel 30%

Israel 15%

GAZIT

GLOBE

102	9,200
# of assets as of	Lease agreements
June 31, 2021	in the group
Avg. asset value of
NIS 362 million

~1.8% 140

Prague	Tel Aviv
Stockholm	Boston
Helesinki	New York
Sau Paulo	Warsaw

Czech Republic 6%

Poland 19%

Geographic			USA
Diversification	9%
Based on
Proportionate			Norway
Investment	12%
Property Value			Sweden
		8%
		Finland and Estonia
		15%

Contribution of the	Supermarkets
largest tenant in the	in the portfolio
Group according to
proportionate NOI

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