Skyline Investments Inc · TASE:SKLN
Skyline Investments — Investor Presentation (December 2022)
31 slides from Skyline Investments's investor presentation, Dec 31, 2022
Slide 1: Corporate Presentation
Corporate December 31, 2022 Presentation
Slide 2: Cautionary Statement
Cautionary Statement General This presentation has been prepared by Skyline Investments Inc. (the "Company“ or “Skyline”) 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-
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 value-add income producing select-service hotels mainly in suburbs of major metropolitan areas. Skyline seeks to create shareholder value and deliver superior risk a
Slide 4: Select Service Hotels
Select Service Hotels Select service is a segment of the hotel industry that focuses on mid-market business travelers during the week and family travel on the weekend, providing stable and predictable cash flow Select service hotels are typically smaller properties that are located in suburban m
Slide 5: Corporate Profile
Corporate Profile 17 Income Producing Assets 2,856 Guestrooms $609m/$316m Total Assets/Equity 52% Equity to Total Assets Ratio Baa1.il (Stable Outlook) Bond Rating
Slide 6: Select Senior Management
Select Senior Management Blake Lyon CA, CPA Robert Waxman, CPA CEO CFO Blake Lyon has extensive experience in Robert Waxman has over 20 years of hotel and resort asset management in experience in accounting, finance, and real Canada and internationally. Before estate. Prior to his appointment, Mr. j
Slide 7: Current Ownership Structure
Current Ownership Structure 49.5% Alex Shnaider 1.54% 27.46% Public Blake Lyon 1.2% 20.3% ILDC 7
Slide 8: Business Strategy
Business Strategy Skyline’s Strategy Acquisition Targets Acquisition of value-add, income producing Focus on the US and Canada select-service hotel properties Stabilized in-place income Investment in hotel renovations to improve earnings, cash flow and value Strong potential growth Continued monetiz
Slide 9: Portfolio Map and Acquisition Focus
Portfolio Map and Acquisition Focus 17 INCOME PRODUCING ASSETS | 2,856 HOTEL ROOMS | 16 CITIES IN THE US AND CANADA9
Slide 10: Main Operating Assets in the United States
Main Operating Assets in the United States The Hyatt Regency Arcade, Cleveland, OH
Slide 11: 14 Courtyard by Marriott Hotels
14 Courtyard by Marriott Hotels Date of PROPERTIES Location Brand Management Service Level Acquisition OVERVIEW 10 States Courtyard by Aimbridge, Select Service Nov 14th, 2017/ (USD) Marriott Urgo July 11th, 2022 Loan Balance Number of Number of Acquisition Price Per December 31, Capital Credit Hote
Slide 12: Hyatt Regency Arcade
Hyatt Regency Arcade SKYLINE IN V ES TM ENT S S HYATT REGENCY CLEVELAND
Slide 13: Hyatt Regency Arcade
Hyatt Regency Arcade Improvements Overview Recently completed renovations of all rooms and meeting The historical Cleveland Arcade was built by John D. spaces. The renovation has improved the hotel’s Rockefeller in 1890 competitive advantage The hotel is an attractive event destination and hosts 6
Slide 14: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel
Slide 15: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel Overview Improvements Historical Heritage asset established in 1918 as The Cleveland Hotel Skyline completed the full HVAC replacement. This was Notable visitors in the hotel’s history: Dwight D. Eisenhower, Gerald the top complaint from hotel guests and is also Ford, M
Slide 16: Transformational Transaction – Sale of Canadian Resorts
Transformational Transaction – Sale of Canadian Resorts • Skyline completed the majority sale of its Canadian resorts for an aggregate purchase price of CAD $210M in December 2021 • Freed Corp, through a newly formed subsidiary, Resort Communities LP ("Resort LP") then combined these assets with Mus
Slide 17: Other Legacy Assets Totaling CAD $177.6M
Other Legacy Assets Totaling CAD $177.6M Bear Valley Resort, California – CAD $28M gross book value 3 hours from San Francisco; 1,700 acres, 52 room hotel, expansion options Short-term equity and 29% interest in Resorts Residual interest in Deerhurst, Horseshoe, Communities LP – CAD $46M book valu
Slide 18: 2022 Operating Results
2022 Operating Results 2022 same asset revenue1 increased by 43% to CAD $129.3M compared to CAD $90.2M in 2021, due to continued improvement in demand and a relaxation in operating restrictions related to COVID-19. 2022 same asset NOI1 increased to CAD $25.9M compared to CAD $22.2M in 2021. Excl
Slide 19: Recent Non-Operating Events
Recent Non-Operating Events Completed the largest corporate transaction in its 20-year history with the sale of Deerhurst, Horseshoe, and the remaining development lands at Blue Mountain for CAD $210M in Q4 2021. Closed a new 5-year term loan in April 2022 with a large financial company to refin
Slide 20: Summary of Periodic Results
Summary of Periodic Results CAD ‘000 YE 2022 YE 2021 YE 2020 Revenue from Hotels and Resorts 132,130 129,293 91,484 Sale of Residential Real Estate 1,570 7,453 37,878 Total Revenue 133,700 136,746 129,362 NOI from Hotels and Resorts1 27,535 33,081 11,359 Total Adjusted EBITDA2 19,727 24,501 7,884 FF
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights CAD ‘000, except where noted December 31, 2022 December 31, 2021 Total Assets 609,347 579,704 1 Gross Debt 240,490 223,602 Cash and Equivalents 19,503 61,489 Net Debt 220,987 162,113 Shareholders’ Equity 280,458 266,249 Non-Controlling Interest 35,508 30,827 Total Equity 315
Slide 22: Skyline Going Forward
Skyline Going Forward New capital focus in 2023 and thereafter: Acquiring select-service hotels, which will provide more stable and predictable earnings and cash flow growth Select-service hotels are much more predicable due to their stable customer base of business travelers during the week, an
Slide 23: Share Price Discount to NAV
Share Price Discount to NAV NAV was 43.61 NIS per share1 compared to the share price on December 31, 2022 of 15.34 NIS, a discount of 64.8% Share price discount to NAV 45.22 44.18 43.61 40 38.74 39.52 38.83 40.18 35.51 36.24 34.20 34.04 34.04 64.8% 28.56 27.5 26.34 24.58 21.34 22.41 20.1 17.18 14.46
Slide 24: Financial Strength and Opportunities
Financial Strength and Opportunities Total equity to total assets ratio of 52% Low LTV (46% for hotels and resorts) Cash balance of CAD $19.5M Additional net cash flow of CAD $99.8M during the next 3 years from VTBs In December 2021, Skyline completed the largest corporate transaction in i
Slide 25: Skyline's Value Proposition
Skyline’s Value Proposition Select-service focus on properties in both Canada and US Proven and experienced internal management team Strong relationship with Marriott Strategic partnerships providing ability to renovate assets in any state or province Diversified third-party hotel manageme
Slide 26: Thank You!
Thank You! Questions? Please contact Rob Waxman | Chief Financial Officer 647-207-5312 | robw@skylineinvestments.com WWW.SKYLINEINVESTMENTS.COM
Slide 27: Appendix
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Slide 28: Net Asset Value (in 000's CAD)
Net Asset Value (in 000’s CAD) Loan Balance December Ownership BV TTM NOI NOI/BV LTV Equity 31, 2022 Hotels and Resorts Hyatt Regency Arcade 100% 72,955 5,065 6.9% 22,474 31% 50,481 Renaissance Hotel 50% 80,587 3,110 3.9% 25,666 32% 54,921 Courtyard Hotels 100% 225,738 15,631 6.9% 137,854 61% 87,884
Slide 29: Debt Composition and Maturities
Debt Composition and Maturities Bond B – Payments are current As of December 31, 2022 (CAD’000) Renaissance Loan – On October 07, 2022, the Company negotiated an extension with its current 1% Weighted Average Term Maturity – 3.88 years lender to June 2029, at an interest rate of SOFR 3% +2.75%.
Slide 30: Asset Ownership Breakdown
Asset Ownership Breakdown Property Property Owner Manager Brand/Franchise Leased Bear Valley Skyline Skyline Independent None Hyatt Regency Skyline Hyatt Hyatt Regency None Cleveland Marriott Renaissance Skyline Aimbridge Marriott Renaissance None Cleveland Marriott Courtyard Skyline Aimbridge, Urgo
Slide 31: Expected Net Cash Flow from Vendor Take-Back Loans (VTB)
Expected Net Cash Flow from Vendor Take-Back Loans (VTB) VTB Loans (CAD’000) 2023 2024 2025 and thereafter Total Port McNicoll 2,400 2,400 25,368 30,168 Vetta Spa 31 34 740 804 Total - Development 2,431 2,434 26,108 30,972 Freed Transaction VTB 1,483 15,685 51,642 68,811 Total VTB Inflows 3,914 18,1
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