Skyline Investments Inc · TASE:SKLN
Skyline Investments — Debt Investor Presentation (July 2016)
41 slides from Skyline Investments's debt investor presentation, July 2016
Slide 1: Capital Market Presentation
Capital Market Presentation Bonds issuance backed with first mortgage collateral July 2016 WWW.SKYLINEINVESTMENTS.COM
Slide 2: Cautionary Statement
Cautionary Statement Forward-looking information in this presentation is based on current estimates and assumptions made by the Company's management, including, without limitation, a This presentation has been prepared by Skyline Investments Inc. (the "Company") reasonably stable North American econ
Slide 3: Corporate Overview
Corporate Overview • As of March 31, 2016 Skyline’s total assets were $374 million • As from March of 2014 the Company’s shares are traded on the Tel Aviv Stock Exchange (SKLN.TA) and reporting issuer in Ontario, Canada • As of March 31,2016 the Company has land reserves of approx. 5,200 residential
Slide 4: Development of Equity
Development of Equity (attributed to the shareholders, in millions of CAD) 180.0 160.0 159 159 150 140.0 129 Before IPO 120.0 115 100.0 103 80.0 70 72 66 60.0 48 40.0 33 24 20.0 18 8 11 0.6 3 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3.2016 * During last 15 year
Slide 5: Ownership Structure
Ownership Structure 0.86% Public 26.54% Gil Blutrich* 2.58% Blake Lyon 1.20% 3.46% 70.31% S C K A Y N L A I D N A E 65.36% 29.69% I S R A E L L T D . * The controlling shareholder in the Company and in Mishorim Development Ltd, through a holding company Blutrich Holdings Inc. ** Mishorim holds direc
Slide 6: Senior Management Team
Senior Management Team Gil Blutrich Blake Lyon CA, CPA Chairman and CEO President Founded Mishorim in 1990 and Skyline in 1998. Blake Lyon has an extensive experience in hotel President and Main Business Development and resort asset management in Canada and Officer Internationally. With his Chartere
Slide 7: Business Strategy
Business Strategy The Company focuses on the To maintain high financial and purchase of income-producing business flexibility and to hospitality and resort real estate maximize the ability to improve the in Canada and the US, mainly lands value, the Company is properties at significant discount sour
Slide 8: Identifying Opportunities
IDENT IFYING SHO RT T O LO NG T ERM O PPO RT UNIT IES MEDIUM T ERM Continue to increase cash-flow Location of hotel/resort with a Improvement of Hotels and Resorts at the hotel/resort operation significant potential for improvement operations by adding value to it until advantages sale and upside op
Slide 9: Material dispositions occurred during the last year
Material dispositions occurred during the last year During the last 12 months, the Company reported asset realizations in the amount of $118* million CAD 5.2015 10.2015 5.2016 The Company sold its interest in Skyline accepted an the King Edward Hotel, located Skyline accepted an offer to sell offer
Slide 10: Other events occurred during the last year
Other events occurred during the last year 9.2015 3.2016 6.2016 A change of Zoning-by-law Skyline obtained a financing of Skyline entered into for agricultural land at $29 million US (Libor + 2.5-2.75%) Tel-Aviv 50 index, at Deerhurst for 640 units and for the acquisition and renovation TASE 4,500 s
Slide 11: Business Segments (as at March 31, 2016)
Business Segments (as at March 31, 2016-in $Mil CAD) Hotels & Resorts Canada Hotels & Resorts USA Investment Properties Development Horseshoe Resort Hyatt Arcade Blue Mountain - Retail Port McNicoll Deerhurst Resort Renaissance Pantages -Retail Deerhurst Blue Mountain Pantages Hotel Bear Valley Reso
Slide 12: Summary of Hospitality and Income Producing Assets
Summary of Hospitality and Income Producing Assets ($Mil CAD) Pantages Renaissance Site | Properties DHR HSR Hyatt Hotel BVR ) 1( BMT Total Hotel ) 2( Hotel Location Ontario, Canada Ontario, Canada Ontario, Canada Cleveland, USA Cleveland, USA California, USA Ontario, Canada Use/designation H O T E
Slide 13: Main assets in Canada
Main assets in Canada
Slide 14: Deerhurst Resort
Deerhurst Resort • General: luxury resort in the district of Muskoka located near the city of Huntsville. The Resort includes about 400 rooms (100 rooms owned by Skyline), two golf courses, conference rooms, a spa, swimming pools, restaurants, and a private airport. The site hosted the G-8 Summit. I
Slide 15: Deerhurst Resort - Lakeside Lodge
Deerhurst Resort - Lakeside Lodge • The Company obtained financing of up to $32 million CAD and began the construction of Lakeside Lodge 162 condo units project Date Expected revenue Total FIRM in millions CAD units March 2016 23.3 67 June 2016 27.4 79 15
Slide 16: Horseshoe Resort
Horseshoe Resort • The resort was purchased in 2008 for about $37 million CAD (Ski and Golf resort) • As of December 31, 2015, the appraised value of the income producing portion (excluding lands and development activity) was $55.6 million CAD, per international appraiser CUSHMAN Historical and proj
Slide 17: Main assets in United States
SKYLINE IN VES TM ENT S assets in United State
Slide 18: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel (1) • Historical heritage asset built in 1918. The property is located in the business center of downtown Cleveland US, near the city's main square. (sized 860,000 sq.f) • 491 room, 34 conference spaces (64,000 sq.f well positioned in the area) and more than 300 parking s
Slide 19: Hyatt Regency Arcade
Hyatt Regency Arcade • General: historical heritage site built in 1890. Located in the central • Improvement made: NOI increased business district of Cleveland, USA. The property includes a 293-room from $1.4 million US to about 3.6 hotel, managed by Hyatt, an indoor mall of about 4,200 sq.m., and m
Slide 20: Cleveland map
SKYLINE IN VeEsT ENTS Cleveland Ohio: \ < enter Parcells P TealHouse\Nood! US Post Officeliy * Hyatt Regency ~ Cleveland at The Arc 4e¥W Ae ; @ cleveland Hotel
Slide 21: Bear Valley
Bear Valley • Ski Resort located in California, USA • The resort acquisition was closed in December 19, 2014, for a total consideration of $3.7 million US, funded from Company’s equity • During a period of 10 years prior to acquisition, $27* million US were invested in the property • As from the dat
Slide 22: Financial Information
SKYLINE IN VES TM ENTS tee, Financial Information
Slide 23: Main Balance Sheet Data (03/31/16)
Main Balance Sheet Data (03/31/16 – in $Mil CAD) Section Value Note of which about $32M for inventory, $31M Current assets 104 property held for sale and about $13M for cash and cash equivalent % of the total balance sheet 28% Investment Properties and long term real estate inventory 119 % of the to
Slide 24: Assets not fully presented in the balance sheet
Assets not fully presented in the balance sheet (in $Mil CAD) NET BOOK VALUE FAIR VALUE DEFFERNCE SITE NOTES 12/31/2015 - 7.3** 7.3 Developable land for 162 condo units 40 units building which was previously used for - 6.2* 6.2 Time Share 59.5 121.6** 62.1 Resorts that are accounted as cost model 37
Slide 25: Summary of the Financial Reports – Profit and Loss
Summary of the Financial Reports – Profit and Loss ($Mil CAD) March 31, 2016 March 31, 2015 December 31, 2015 Revenue 48 25 97 Cost of sales (42) (22) )83) Profit before sales, marketing and administrative and general 6 3 14 expenses Gain from fair value adjustments - - 1 Selling and marketing expen
Slide 26: Summary
Summary Unique business model creating optimal synergy Financial stability Significant cash flow between hospitality and conservative from income producing resort activities and properties capital structure development opportunities Large land reserves Experienced purchased at bargain Supportive bus
Slide 27: Thank you!
Thank you! WWW.SKYLINEINVESTMENTS.COM Questions? Please contact Vadim Shub, CFO at: 416-368-2565 ext: 2263 or by email: ir@skylineinvestments.com
Slide 28: Appendixes
Appendixes
Slide 29: Economic Environment in Canada and Ontario
Economic Environment in Canada and Ontario Canadian PPP (in milliard CAD) According to comparative 1700 international indices of quality of life, it is included among the leaders in 1600 the world 1500 Toronto is the capital of Ontario, and is 1400 the financial, economic and banking 2012 2013 2014
Slide 30: Property Portfolio
Property Portfolio All the Canadian properties are located USA in Southern Ontario, less than 2 ½ hours drive from Toronto CANADA All the properties are close to medium size (and larger) towns and have a developed infrastructure (clinics, shopping centers, etc.) Majority of the Company’s assets are
Slide 31: Deerhurst Resort
Deerhurst Resort Highlights Development Future potential • General: luxury resort in the district Since acquisition, more than $50 The continued sale of residential of Muskoka located near the city of million of real estate sales have units and lots to increase Huntsville. The Resort includes been m
Slide 32: Deerhurst Resort
Deerhurst Resort Future development lands Resort Operations Third Party Under Development 32
Slide 33: Horseshoe Resort
Horseshoe Resort Highlights Development Improvements A ski, golf, adventure park and • The Company owns a • The NOI for 12 months ended March hospitality resort operating year hospitality building of 40 units 31, 2016 was $3.2 million (before round, located a 1 hour drive of carried on the books at
Slide 34: Horseshoe Resort
Horseshoe Resort Future development lands Resort Operations Timber Ridge 120 Highland Course 34
Slide 35: Blue Mountain Village
Blue Mountain Village Highlights Development and disposition • A ski resort, a leading hotel and resort area As for March 31, 2016, the Company has sold parcels of Ontario, operates throughout the four of land a total consideration of $9 million: seasons • In 2014 9 lot parcel was sold for $1 millio
Slide 36: Port McNicoll
Port McNicoll Highlights Historic port and land for development on Georgian Bay, adjacent to the 30,000 Islands tourist area. • The property consists of about 850 acres of waterfront land along 11 km of shoreline, and about 296 acres of land at the entrance to the town • The project is located a 25-
Slide 37: Seasonality in real estate marketing at the Resorts
Seasonality in real estate marketing at the Resorts The Resort Main sales season Comments The most active operation is during months of June Primarily during the third calendar quarter – October Mainly during the first and last quarters Ski and Golf resort, mainly active in the winter Year round sta
Slide 38: Sale of condo units, houses and lands
Sale of condo units, houses and lands Site | Properties Total Total book value (land component only) 30 17 )3) 21 50 119 Units available according to the master plan as at 03/31/16 )5) 1,321 )4) 1,674 )6) 800 1,900 5,695 Of which: in inventory; condos, houses and lots 287 129 39 )2) 794 1,249 Sales
Slide 39: Cash flow results from income producing assets
Cash flow results from income producing assets for 12 months ended on March 31, 2016 Section In million* CAD Note From Q2-2015 until Q1-2016 Profit from operations 11 Profit excluding non reoccurring expenses: Sale of condos, lots and Timeshare - Mainly due to the commission received from the Renais
Slide 40: Cash flow results from income producing assets
Cash flow results from income producing assets for 12 months ended on March 31, 2016 Section In million CAD Note The stabilized NOI for income producing assets is 31 million Consolidated annual NOI for the year ended March 31, 2016 +26 CAD 50% of the Renaissance Hotel and 40% of the Blue Mountain Mi
Slide 41: Unpledged assets breakdown following the issuance
Unpledged assets breakdown following the issuance Asset In million CAD Note Horseshoe resort 56 Based on an appraisal for December 31, 2015 Based on an appraisal prepared in August 2014, close to the Bear Valley resort 5 original acquisition date Based on an appraisal for December 31, 2015 Surroundi
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