Gazit Globe : Q4 2020 - Presentation

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GREAT THINGS HAPPEN WHEN

DISCLAIMERYOU OWN GREAT REAL ESTATE

This presentation may include forward-looking statements, including forecasts, evaluations, pro forma figures, estimates and other information relating to future events and issues or the Corona epidemic effect and the global economic crisis derived from it or a targeted crisis in one or several countries in which the company operates. Forward-looking statements may relate to, among other things, revenues, earnings, cash flows, capital expenditures and other financial items. Forward-looking statements may also relate to our business strategy, goals and expectations concerning our market position, future operations, profitability, liquidity and capital resources. All statements other than statements of historical facts are forward-looking statements and can be identified by the use of forward-looking terminology such as the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases.

Any forward-looking information contained in this presentation is based, in addition to existing information of the Company, on present Company expectations and evaluations regarding future developments and trends and on the interaction of such developments and trends. Although we believe the assumptions upon which any forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate, and the forward-looking statements based on these assumptions could be incorrect. Our business and operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements are based on current expectations and are not guarantees of future performance.

Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in this presentation depending on a variety of factors including those described in greater detail in our Periodical and Annual Reports and Early Release of condensed financial information from the Company's Financial Statements , and in other information we file and furnish including, but not limited to, with the Israel Securities Authority, including under the heading "Risk Factors."

All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable securities laws, we undertake no obligation to update any information contained in this presentation or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this presentation.

The information contained herein does not constitute a prospectus or other offering document, nor does it constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of Gazit-Globe Ltd. or any other entity, nor shall the information or any part of it or the fact of its distribution form the basis of, or be relied on in connection with or relating to any action, contract, commitment or to the securities of Gazit-Globe Ltd.

The Company's estimated regarding the sale of properties, are forward-looking information as defined in the Securities Law, 1968. Its assessments regarding the sale of properties are based on the Company's and Group companies' assumptions and estimates, but they are uncertain, may not materialize and are largely uncontrolled by the Company. As the global economic crisis continues and worsens, and as the Covid-19 Pandemic continues and there is a stagnation in the income-producing real estate sector, there may be delays in realization of assets until the end of 2021.

In addition, the Company's estimates regarding the savings from the dividend policy update are based on assumptions regarding the actual approval of dividend distribution in each of the aforesaid quarters, including the amounts specified in the updated policy and may not materialize as the Covid-19 Pandemic crisis worsens and will have a negative effect over the Company's financial position.

2020 Operational Performance

Urban Assets Portfolio Providing Daily Needs and Services

Group's GLA was opened for business during COVID-19

Lease agreements in the Group

# of assets

As of December 31, 2020

Supermarkets in the Portfolio

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

55%

9,200

105

140

*Company share in group proportionate NOI for the year 2020.

Geographic Diversification Based on

Proportionate NOI*:

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

Tenant Mix Based on Proportionate NOI*

DIY, Home Furniture 3%

Tel Aviv New York Prague Sao PauloBoston Warsaw Stockholm Helsinki

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

Lockdown Periods in Wholly Owned Private Subsidiaries

Strong Rebound When Centers Reopened

• • Israel:

  • • Mall were closed for 139 days (37%) during 2020

  • • Power centers were close for 97 days (27%) during 2020

• • US: After two months and a half lockdown, properties opened for operation under limitation

• • Brazil, Sao-Paulo - Reopened during June 2020 for partially operation and for normal operation during October 2020, As of March 2021 Sao-Paulo is in lockdown period

Lockdown Period

New Lease Agreements (Wholly Owned Subsidiaries)

• • During the period, 285 new lease agreements were executed, including exercise of options in the company's wholly owned subsidiaries, with GLA of approximately 53,000 square meters and a weighted average rent that exceeds by 5% (excluding Home Depot new lease in Manhattan) the rent paid for those areas.

• • In the second quarter, the company signed a new lease agreement with the leading DIY The Home Depot - international retail credit tenant, which manages thousands of stores, the lease term is 20 years, at an annual base rent of about $7.8 million compared to $ 3.8 million current base rent.

• • In the fourth quarter, a new lease agreement was signed with the NBA to open the fourth largest store in the world in Sao Paulo. The store is expected to be open in April 2021 in the Murambi Town Mall of Gazit. The store has an area of about 1,200 square meters and will include a variety of amenities including a basketball court, events area, restaurant bar and locker rooms.

G MIKADO CENTER | TEL AVIV

Actions to Increase and Strengthen the Capital Structure

In The Last Three Months, Agreements Have Been Signed in an Amount of

~ NIS 650 MILLION

(OUT OF NIS 1 BILLION IN THE PROGRAM)

The Company Is Advancing In The Disposition Program of Non-Core Assets

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BILLION NIS

100%

• • 60% of the Portfolio GLA is Open Air centers

• • Approximately 43% of the GLA are leased to essential tenants and continued to operate during the lockdown period

• • Approximately 30% of the GLA are neighborhood centers. Approximately 53% of the neighborhood centers are leased to essential tenants .

New Opening During the Period

Additional NIS 22 million to the annual NOI

Company Share - 100%

5 KM Population - 620K

Company Share - 100%

5 KM Population - 530K

Socioeconomic score 10*

Source: CBS, * Urban interior cluster (Index SES)

Socioeconomic score 7

GAZITHORIZONS

Case Study | Bridge Tower | Home Depot

Value Creation Through Acquisition of Premium Properties in Special Locations

The property has an atypical size for Manhattan retail condos with three 30,000 SF floorplates and 17'+ ceiling heights with minimal column intrusion and a dedicated off-street loading dock in the garage.

The Property is situated on 1st Ave at the foot of the Queensborough Bridge connecting Queens to Manhattan, in one of Manhattan's most affluent and oldest retail neighborhoods, Sutton Place, with an average annual income of nearly $200,000.

Bed Bath & Beyond vacated the property; Renovation in progress for Home-Depot fit out.

GAZITGLOBE

GAZITHORIZONS Case Study | Bridge Tower | Home Depot

GAZITGLOBE

Oct 2017

Sep 2018

Q2 2020

2021

STEP 1 - COMPLETED Acquisition of Bridge Tower for approx. $73 Million. Bed Bath & Beyond is the main tenant in NNN lease and Starbucks occupied the rest.

Annual Gross Rent: $4 Million

STEP 2 - COMPLETED Acquisition of the adjacent

Garage under the assumption - it will increase value add potential

Property Basis: $80 Million

UPSIDE:DOWNSIDE:

Obtaining an eviction agreement with BB&B at no extra charge. Executed a new lease agreement with Leading DIY giant The Home Depot - international retail credit tenant, lease term - 20 years and 1% annual rent growth.

RESULT:

Bed Bath vacates all or a Bed Bath & Beyond portion of space and re- exercises option at $4 leasing at market rateMs illion NNN with 2% annual growth

STEP 3 - COMPLETED

Annual Gross Rent: $7.8 Million

RENT UP 97%

STEP 4 - TO BE COMPLETE The Home Depot 10yr bond is trading at 1.8% YTM. Examining the option of re-financing with specific mortgage for long term credit tenant.

RESULT: 1.4x equity multiple return at refinancing. Expected annual cash flow of approximately $ 0.5 million

(full amortization)

Doubling the Rent - Annual yield on total cost increased from 5% to 8%, resulted in significant value creation

98.1% )33.4%(

• • The Company filed with the Securities and Exchange Commission in Brazil a draft prospectus for an IPO of most of its Brazilian operations through an offer for sale.

• • Interest rate has decrease sharply, Selic is 2.75% compared to 4.5% Q4/19.

Double digit Same Store NOI Growth

18.2%

2019

GAZITBRASIL Sao-Paulo

Listing on Sao Paulo Stock Exchange

GAZITGLOBE

On February 2, 2021, The Company filed with the Securities and Exchange Commission in Brazil a draft prospectus for an IPO of most of its Brazilian operations through an offer for sale. In addition, the designated fund intends to raise a long-term secured debt prior to the offer for sale.

The sale offer will be in the format of a FII (similar to REIT), a Brazilian real estate investment fund, which is fully owned by the company.

What is the rationale for issuing the activity in Brazil?

• 1. Much more flexibility with regards to our Brazil holdings

• 2. Increasing liquidity

• 3. Reducing leverage in the group

• 4. Reducing exposure to Brazilian market

• 5. Creating new income streams - annual management fees of 0.9% of the fund's market value

* Including jointly controlled property (Ceaser's Bay in Brooklyn) and "College House" property which was purchased after the reporting date.

**DIY is acronym for "do it yourself" retailers as Home-Depot.

The information about the company's development and investment plans as well as expectations for future leases constitute forward-looking information, for details see page 2

GAZITBRASIL Sao-Paulo

Listing on Sao Paulo Stock Exchange (Cont.)

GAZITGLOBE

Cidade Jardim

33% ownership GLA: 38k sqm

Paulista 1267

Landbank Potential GLA: 4k sqm

Top Center

Fully Owned GLA: 20k sqm

*As of 31/12/2020, The BRL / NIS exchange rate used for convenience conversion is 0.6

The Investment Fund's holdings, which are recorded on the Company's books at fair value of BRL 2,8 billion,

NIS 1,7 billion*

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Mais Shopping

Fully Owned GLA: 23k sqm

Shopping Light

Fully Owned GLA: 19k sqm

Prado Boulevard

98% ownership GLA: 10k sqm Located in Campinas

Internacional Shopping

80.1% ownership GLA: 76k sqm

Morumbi Town

Fully Owned GLA: 31k sqm + Landbank: 4,624 sqm

GAZITBRASIL Sao-Paulo

Listing on Sao Paulo Stock Exchange (Cont.)

GAZITGLOBE

Stage 1 - Immediately preceding the public offer of sale, the special fund is expected to raise secured debt with a lien of up to BRL 650 million (NIS 390 million*) through a private offering to institutional investors

Stage 2 - Gazit will carry out an offering for sale of 25% - 49% of its holdings in the Special Investment Fund for an expected consideration of BRL 0.5 - 1 billion (NIS 320 - 630 million*)

Result -The total proceeds from the offer of sale and raising debt is expected to be

BRL 1.2 - 1.7 billion (NIS 710 - 1,000 million*)

New income stream - annual management fees of 0.9% of the fund's market value, as well as a success fees. Approx. BRL 50 - 60 million (NIS 30 - 36 million*)

*The BRL / NIS exchange rate used for convenience conversion is 0.6

**The Company's estimates regarding the dates of completion of the offers, the degree of their completion and the expected return constitute forward-looking information, as detailed in slide 2 of the presentation. These estimates are based on the Company's assumptions as of this date, and are uncertain, may not materialize and are not under the Company's control, inter alia, due to changes in global capital market conditions in Brazil and interest rates in Brazil, morbidity due to Covid-19 Pandemic and its effects, and the fulfillment of the conditions for the offers (such as the receipt of regulatory permits).

2020 Summary

COVID-19 Impact During 2020

Proportionate NOI:

• • Decrease of NIS 199 millions (15%) as result of COVID-19 impact recognized during the period

• • Decrease of NIS 264 millions (20%) as result of total COVID-19 impact (recognized during the period and in the next periods)

Proportionate NOI exc. COVID

COVID- 19 Impact Recognized in the period Reported Proportionate NOI

COVID-19 Impact in the Next Periods

Proportionate NOI Including Total Impact Recognized During the Period and in the Next Periods

COVID-19 impact recognized during the period

COVID-19 impact SLR in the next periods

*SLR - Straight Line Rent

1,299 (199) 1,100 (65)

NOI 2020 exc.

COVID-19

ATR

CTYBrazilIsraelNOI 2020 Reported

68

1,035

COVID-19 Impact and FX changes on Shareholder's Equity per Share

Main factors which caused decrease in shareholder's equity per share:

• • Decrease of NIS 6 per share from devaluation of investment property, mainly due to negative market sentiment

• • Decrease of NIS 6.2 per share as result of changes in foreign exchange rates, mainly 28% devaluation of BRL/NIS in the period

Equity p/s as of 31.12.19

Buyback of sharesRevaluation ofFair value loss from Investmentderivatives(exclude property (Gazit'sForeign currency translation reserves net of

FFO 2.8

Other 0.4

Dividend

FX)

part)

SWAPEquity p/s as of 31.12.20

1.6

Rent Collection Rate

Year 2020

96%

97%

93%

99%

91%

76%

72%

GroupCitycon (Northern

Europe)

Fourth Quarter:

Atrium (CEE)Gazit IsraelGazit BrasilHorizonsCanada and Germany

95%

93%

99%

88%

90%

87%

62%

GroupCitycon (Northern

Europe)Atrium (CEE)Gazit Israel

As Reported by Subsidiaries, Atrium collection rate does not include rent exemptions imposed by polish government

Gazit BrasilHorizonsCanada and Germany

Wholly Owned Subsidiaries, Collection Rate Based on Rent Without Adjustments

Operating Cash Flow and Interest Costs

Financial Strength

Bond Maturity Schedule (Extended Solo)

*As described in slide 25

• • On October 20, 2020, a new series of bond (Series 15) was issued, secured by real estate in Israel, with a rating of AA by S&P Maalot and Aa2 rating by Midroog.

• • Refinancing in attractive yield of 1.08%

• • Long duration of 6.2 years

• • Expected annual interest expenses saving of NIS 14 millions

GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE

THANK YOU FOR YOUR TIME

CONTACT INFORMATION

Adi Jemini

EVP & CFO

Or Ackerman

Head of Investor Relations

oackerman@gazitgroup.com

+972.3.6948000

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