Skyline Investments Inc · TASE:SKLN
Skyline Investments — Investor Presentation (April 2019)
41 slides from Skyline Investments's investor presentation, Apr 1, 2019
Slide 1: Corporate Presentation
Corporate 1.04.2019 Presentation
Slide 2: Cautionary Statement
Cautionary Statement General 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 Ex
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 3,219 Guestrooms $784M/$301M Total Assets/Equity 38% Equity to Total Assets Ratio Baa1.il Bond Rating 2,315 Units for Development 4
Slide 5: Financial Results and Recent Activity
Financial Results and Recent Activity Highlights for Full Year 2018: Development Highlights and Sales of Assets: Revenue increased by 52.2% to CAD $232.3M Skyline provided occupancy for 56 units at Lakeside Lodge at Deerhurst and $21M in revenue was NOI from income-producing assets increased b
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 | 3,219 HOTEL ROOMS
Slide 8: Senior Management Team
Senior Management Team Blake Lyon CA, CPA Robert Waxman Bruce Riggins CEO CFO COO Blake Lyon has an extensive experience Robert Waxman has over 20 years of Mr. Riggins was the Chief Financial in hotel and resort asset management in experience in accounting, finance, and Officer for LaSalle Hotel Pro
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% *** During 2018 a dispute arose between the main shareholders of Mishorim. On December 17, 2018 Mr. Alex Shnaider and Mr. Gil Blutrich reached an understanding to end the disputes be
Slide 10: Summary of Periodic Results (in 000's CAD)
Summary of Periodic Results (in 000’s CAD) Section 2018 2017 2016 Revenue from revenue generating 185,503 121,794 122,197 assets Revenue from sale of residential 46,753 30,769 25,797 real estate and other Total Revenue 232,256 152,563 147,994 NOI from revenue generating 41,620 22,006 20,821 assets T
Slide 11: Main Balance Sheet Parameters (in 000's CAD)
Main Balance Sheet Parameters (in 000’s CAD) Section 31.12.2018 31.12.2017 Total Assets 784,437 714,139 Gross Debt 367,269 316,462 Cash and Equivalents 27,983 25,897 Net Debt 339,286 290,565 Shareholders Equity 260,753 255,020 Non-Controlling Interest 40,087 40,977 Total Equity 300,840 295,997 Net D
Slide 12: Net Asset Value (in 000's CAD)
Net Asset Value (in 000’s CAD) Loan Balance Ownership BV 2018 NOI 2017 NOI NOI/BV LTV Equity 12.31.2018 (4) Revenue generating assets Deerhurst Resort (1) 100% 76,200 6,056 5,566 7.9% 49,064 64% 27,136 Horseshoe Resort 100% 41,400 3,390 4,219 8.2% - - 41,400 Blue Mountain Retail 60% 33,500 1,990 1,8
Slide 13: Financial Strength and Flexibility
Financial Strength and Flexibility Strong Balance Sheet Expected Increase in Cash Flow Equity to Total Assets ratio of 38.4% Financial closing of two major development projects Lakeside and Slopeside is expected to take place Net Debt to Net CAP ratio of 53% during 2019 and contribute signific
Slide 14: Unencumbered Assets
Unencumbered Assets Book Value Name (000’s CAD) Bear Valley Resort 23,988 Excluded Lands surrounding Deerhurst Resort (1) 15,270 Excluded Lands surrounding Horseshoe resort (2) 13,192 Lands at Blue Mountain (60%) 6,806 Vendor's take back against Port McNicoll lands 30,098 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 2018, GDP grew by 2.9 % to $20.5 trillion, the highest growth rate since 2014. Over the coming year, GDP is expected to grow by an additional 2.5%. According to STR, in 2018, the U.S. hotel industry recorded record growth for the second year in a row according t
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 Marriot: 2018 Updates
Courtyard by Marriot: 2018 Updates 2018 Updates Skyline and Aimbridge replaced 10 of 13 General Managers and hired 13 new Director of Sales, these actions are expected to improve hotel results in the mid to long term though impacted results negatively in 2018. Renovations at Courtyard Fort Myers
Slide 20: Courtyard by Marriott
Courtyard by Marriott Active Asset Management – Ft. Myers Courtyard Renovations Before Renovation After Renovation 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 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
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 completed the 1st phase of HVAC replacement. Notable visitors in the hotel’s history: Dwight D. Eisenhower, Gerald This was the top complaint from hotel guests and is als
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 Since the acquisition invested USD $3.2M in equipment and San Francisco. improvements Acquired on December 2014 for USD $3.7M from the In 2017 Skyline invested USD $5.5M on a new ski lift which Com
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 1.8% in 2018 buoyed by rising exports. Hotel occupancy reached 66.3% the highest level since 1999. ADR increased by 4.3% to $163.40 and RevPAR rose 5.3% to $108.39. This is compared to +4.9% to $156.73 RevPAR growth in 2017. According to
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. Sold 137** of 150 units at Lakeside Lodge. 72 units have joined The new 150-room* Lakeside Lodge has almost completed the hotel’s rental program*
Slide 32: Horseshoe Resort
Horseshoe Resort SKYLINE IN Vv ES TM ENT S HORSESHOE A SKYLINE RESOR BARRIE
Slide 33: Horseshoe Resort
Horseshoe Resort Overview Improvements An all-season resort based around the Horseshoe Ski Mountain, Sold 41* of 44 units at Slopeside Lodge. All sold units have one of the closest Ski Resort to Toronto, Canada. been delivered and financial closing will take place in 2019. The Horseshoe Adventure
Slide 34: Land Sales and Development
Land Sales and Development
Slide 35: Projects in Advanced Stage of Sale
Projects in Advanced Stage of Sale(1) Main Projects Under Development (CAD 000’s) Expected Gross Net Cash Number Recogniz Expected Recogn Gross Profit Number Sales Expected ized Revaluation Including Profit Rate Proceeds Date of Project Location Type Ownership of Units ed Gross Gross Including upon
Slide 36: Lakeside Lodge
Lakeside Lodge 36
Slide 37: Slopeside Lodge
Slopeside Lodge ONT LIINE
Slide 38: Blue Mountain Development Lands
Blue Mountain Development Lands Second Nature Phase 3/4 Second Nature Phase 1 Snowbridge Townhomes 38
Slide 39: 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 40: Appendix
Appendix
Slide 41: 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
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