Skyline Investments Inc · TASE:SKLN
Skyline Investments — Q2 2018 Earnings Presentation
43 slides from Skyline Investments's earnings presentation, December 2018
Slide 1: Corporate Financial Statements Presentation 30.06.2018
Corporate Financial Statements Presentation 30.06.2018
Slide 2: Cautionary Statement
Cautionary Statement This presentation has been prepared by Skyline Investments Inc. (the "Company") as a general presentation about the Company. This presentation is not intended to replace the need to review the formal reports published by the Company to the public on the Tel-Aviv Stock Exchange.
Slide 3: Skyline’s Vision & Mission
Skyline’s Vision & Mission We’re creating one of North America’s leading hospitality real estate investment companies, with a focus on income producing properties. Skyline seeks to create shareholder value and deliver superior risk adjusted returns through the acquisition of income producing propert
Slide 4: Corporate Profile
Corporate Profile 19 Income Producing Assets 3,199 Guestrooms $748M/$299M Total Assets/Equity 40% Equity to Total Assets Ratio Baa1.il Bond Rating With Positive Outlook 3,000 Units for Development 4
Slide 5: Financial Results and Recent Activity
Financial Results and Recent Activity Highlights for the 2nd Quarter of 2018: Strengthened our senior management team with a new Chief NOI from income-producing assets increased by 269% Operating Officer, Bruce Riggins, and a new Chief to approx. CAD $10.7M Financial Officer, Robert Waxman Same
Slide 6: Business Strategy
Business Strategy INCREASED ACQUISITION PROGRAM OF INCOME PRODUCING ASSETS Skyline’s Strategy Acquisition Targets Acquisition of hospitality properties to Focus on the US and Canada further decrease seasonality and diversify our geographic presence. Stabilized in-place income Continued monetization
Slide 7: Portfolio Map
Portfolio Map 18 CITIES IN THE US AND CANADA | 19 INCOME PRODUCING ASSETS | 3,199 HOTEL ROOMS
Slide 8: Senior Team
Senior Team Gil Blutrich Blake Lyon CA, CPA Robert Waxman Chairman and President CEO CFO Founded Mishorim in 1990 and Skyline in Blake Lyon has an extensive experience Robert Waxman has over 20 years of 1998. Chairman, President and Main in hotel and resort asset management in experience in accounti
Slide 9: Current Ownership Structure
Current Ownership Structure 49.40% Gil Blutrich* 2.63% Alex 25.00% Public 1.51% Shnaider 20.26% ILDC Blake Lyon 1.19% * 74% of Mishorim is owned by Alex Shnaider and Gil Blutrich through a joint voting arrangement. ** Mishorim holds directly and indirectly 49.40% of Skyline Investments Inc. shares.
Slide 10: Summary of Periodic Results (in 000’s CAD)
Summary of Periodic Results (in 000’s CAD) Section H1-18 H1-17 2017 Revenue from revenue generating 92,811 59,405 121,794 assets Revenue from sale of residential 16,959 1,420 30,769 real estate and other Total Revenue 109,770 60,825 152,563 NOI from revenue generating 21,807 10,418 22,006 assets Tot
Slide 11: Main Balance Sheet Parameters (in 000’s CAD)
Main Balance Sheet Parameters (in 000’s CAD) Section 30.06.2018 31.12.2017 Total Assets 748,322 714,139 Gross Debt 343,149 316,462 Cash and Equivalents 28,433 25,897 Net Debt 314,716 290,565 Shareholders Equity 257,870 255,020 Non-Controlling Interest 40,979 40,977 Total Equity 298,849 295,997 Net D
Slide 12: Net Asset Value (in 000’s CAD)
Net Asset Value (in 000’s CAD) Proforma Proforma Loan Balance Ownership BV 2017 NOI TTM 6/18 LTV Equity 2017 NOI(6) NOI/BV 6.30.2018 (5) Revenue generating assets Deerhurst Resort (1) 100% 73,517 5,566 5,731 5,566 7.6% 50,124 68% 23,393 Horseshoe Resort 100% 54,190 4,219 3,344 4,219 7.8% - 0% 54,190
Slide 13: Financial Strength and Flexibility
Financial Strength and Flexibility Strong Balance Sheet Expected Increase in Cash Flow Equity to Total Assets ratio of 40% Expected increase in revenues and cash flow due Net Debt to Net CAP ratio of 51.3% to the acquisition of 13 Courtyard by Marriott hotels in November 2017. Flexibility De
Slide 14: Unencumbered Assets
Unencumbered Assets Book Value Name (000’s CAD) Bear Valley Resort 14,884 Excluded Lands surrounding Deerhurst Resort (1) 15,480 Excluded Lands surrounding Horseshoe resort (2) 12,422 Lands at Blue Mountain (60%) 8,397 Vendor's take back against Port McNicoll lands 33,922 Remaining Port McNicoll lan
Slide 15: Main Operating Assets in the United States
Main Operating Assets in the United States The Hyatt Regency Arcade, Cleveland, OH
Slide 16: USA - Economy and Hotel Market
USA - Economy and Hotel Market In 2017, GDP grew by 2.3%, the highest growth rate since 2014. 2018 GDP is expected to grow by an additional 2.6%. In 2017, the U.S. hotel industry recorded record growth according to STR. In 2017, Occupancy increased 0.9% to 65.9%, and a 2.1% ADR increase to $12
Slide 17: 13 Courtyard by Marriott Hotels
13 Courtyard by Marriott Hotels Courtyard Birmingham Hoover, Courtyard Manassas Battlefield Park Hoover, AL Manassas, Virginia Courtyard Toledo Airport Courtyard Tucson Airport Courtyard Deerfield Arlington Heights Toledo, OH Tucson, AZ Deerfield, IL
Slide 18: Courtyard by Marriott Hotels
Courtyard by Marriott Hotels Date of PROPERTIES Location Brand Management Service Level Acquisition OVERVIEW 9 States Courtyard by Aimbridge Select Service November (USD) Marriott 14th, 2017 Number of Number of Acquisition Price Per Five Year Capital Credit Hotels Rooms Price Room Mortgage Line 13 1
Slide 19: Courtyard by Marriott Hotels
Courtyard by Marriott Hotels Acquisition Rationale The 13 almost identical hotels totaling 1,913 rooms are spread over 9 US states and are geographically diverse with strong locations in key Midwest, Southeast and Southwest markets. Previous owner invested USD $40M in renovations between 2012-20
Slide 20: All Courtyard by Marriott Hotels are nearly identical
All 13 Courtyard by Marriott Hotels are nearly identical Huntsville Tucson Chicago-Arlington Heights 20
Slide 21: Hyatt Regency Arcade
HYATT REGENCY IN Vv ES TM ENT S SKYLINE Ss. co) xe) © Oo , a < > (©) Cc fc) Q0 fo) ac eo) aa) © > rz
Slide 22: Hyatt Regency Arcade
Hyatt Regency Arcade Improvements Overview Recently completed renovations of all rooms. The The historical Cleveland Arcade was built by John D. renovation is expected to improve the hotel’s competitive Rockefeller in 1890. advantage. The hotel is an attractive event destination and hosts 60 The
Slide 23: Hyatt Regency Arcade
Hyatt Regency Arcade Active Asset Management – Hyatt Room Renovations Before Renovation After Renovation 23
Slide 24: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel
Slide 25: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel Overview Improvements Historical Heritage asset established in 1918 as The Cleveland Hotel. Skyline has begun the 1st phase of significant Notable visitors in the hotel’s history: Dwight D. Eisenhower, Gerald renovations which will continue for the next 3 years. Ford, M
Slide 26: Bear Valley
Bear Valley SKYLINE
Slide 27: Bear Valley
Bear Valley Overview Improvements A ski resort in Southern California, three and a half hours from In 2017, a new modern ski lift was added for USD $5.5M. San Francisco. Since the acquisition invested USD $3.2M in equipment Acquired on December 2014 for USD $3.7M from the and improvements Compan
Slide 28: Main Operating Assets in Canada
Main Operating Assets in Canada
Slide 29: Canada - Economy and Hotel Market
Canada - Economy and Hotel Market Canada’s GDP grew by 3% in 2017, the fastest pace since 2011. Hotel occupancy reached 65.9%, the most since 1999. The weak Canadian dollar and rising occupancy rates are giving hoteliers more latitude to push for ADR increases According to HVS, 2018 RevPAR i
Slide 30: Deerhurst
Deerhurst SKYLINE IN Vv ES TM ENT S DEERHWJRST ORT MUSKOKA
Slide 31: Deerhurst
Deerhurst Overview Future Potential World-class four-season resort located in Muskoka near Increasing NOI by streamlining operations. Toronto, Canada. The new 150-room* Lakeside Lodge is currently under Construction of a new 150-room* lodge will increase room construction. inventory. Improving
Slide 32: Horseshoe Resort
Horseshoe Resort SKYLINE HORSESHOE A SKYLINE RESOR BARRIE
Slide 33: Horseshoe Resort
Horseshoe Resort Overview Improvements An all-season resort based around the Horseshoe Ski Mountain, In 2016, a new modern ski lift was added for CAD $5M. one of the closest Ski Resort to Toronto, Canada. The Company began renovating the 44-unit Slopeside The Horseshoe Adventure Park and Horsesh
Slide 34: Blue Mountain Village
Blue Mountain Village SKYLINE A uit BLUE MOUNTAIN VILLAGE DEVELOPMENTS Ae Ae a i: 3) ew. ioe
Slide 35: Blue Mountain Village
Blue Mountain Village Overview Future Potential A ski resort, hotel and leisure destination near Toronto, Canada; Selling land to local developers. continuously active throughout the year; Blue Mountain is the 3rd Sale and/or development of commercial space. busiest ski resort in Canada. Const
Slide 36: Land Sales and Development
Land Sales and Development
Slide 37: Projects in Advanced Stage of Sale
Projects in Advanced Stage of Sale(1) Main Projects Under Development (CAD 000’s) Expected Net Gross Profit Cash Expected Gross Profit Number Number of Sales Expected Revaluation Rate Proceeds Date of Project Location Type Ownership Gross Including of Units Units Sold(2) Rate Revenue Gains(3) (3) In
Slide 38: Lakeside Lodge
Lakeside Lodge 38
Slide 39: Slopeside Lodge
Slopeside Lodge ONT LIINE
Slide 40: Blue Mountain Development Lands
Blue Mountain Development Lands Second Nature Phase 3/4 Second Nature Phase 1 Snowbridge Townhomes 40
Slide 41: Thank You!
Thank You! Questions? Please contact Ben Novo-Shalem | Head of M&A and IR 416-368-2565 ext: 2222 | benn@skylineinvestments.com WWW.SKYLINEINVESTMENTS.COM
Slide 42: Appendix
Appendix
Slide 43: Asset Ownership Breakdown
Asset Ownership Breakdown Property Property Owner Manager Brand/Franchise Leased Deerhurst Skyline Skyline Independent None Horseshoe Valley Skyline Skyline Independent None Bear Valley Skyline Skyline Independent None Hyatt Regency Skyline Hyatt Hyatt Regency None Cleveland Marriott Renaissance Sky