Skyline Investments Inc · TASE:SKLN
Skyline Investments — Q2 2021 Earnings Presentation
42 slides from Skyline Investments's earnings presentation, Jun 30, 2021
Slide 1: Corporate Presentation
Corporate June 30, 2021 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 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 18 Income Producing Assets 3,266 Guestrooms $641m/$262m Total Assets/Equity 41% Equity to Total Assets Ratio Baa1.il (Negative Outlook) Bond Rating 2,315 Units Available for Development
Slide 5: COVID-19 Recap and Update
COVID-19 Recap and Update In March 2020, the World Health Organization declared COVID-19 to be a pandemic. In an effort to contain and mitigate the spread of COVID-19, many countries, including Canada and the United States, imposed unprecedented restrictions on travel, group gatherings and non-ess
Slide 6: Q2 2021 Results
Q2 2021 Results NOI from hotels and resorts was CAD $6.5M, an In June 2021, the U.S. hotel sector saw demand and increase of CAD $11.3M compared to Q2 2020 occupancy hit their highest levels since the start of the pandemic. Our Courtyard portfolio experienced Revenue from hotels and resorts increase
Slide 7: Occupancy Levels Before and During COVID-19
Occupancy Levels Before and During COVID-19 2021 may signal the start of hotel demand recovery Canadian Resorts US Hotels Deerhurst and Horseshoe Resorts Select-Service Courtyard 13 Portfolio In late December 2020, local public health restrictions necessitated the Steady recovery in occupancy si
Slide 8: US and Canadian Government Stimulus Programs
US and Canadian Government Stimulus Programs Paycheque Protection Program (“PPP”) CAD $9.3M (US $6.7M) in cash was received during Q2 2020, and a further CAD $9.5M (US $7.5M) was received during 1H 2021. As part of this program, the portion of any of these loans spent on payroll, utilities, intere
Slide 9: Debt Composition and Maturities
Debt Composition and Maturities Bond A and B – Payments are current. As of June 30, 2021 (CAD’000) Bond A – Matures January 2023, can be repaid 3% 4% through obtaining a new property level Weighted Average Term Maturity – 1.59 years 5% 15% mortgage or sale of the asset in advance of maturity; on
Slide 10: Expected Net Cash Flow from Vendor Take-Back Loans (VTB)
Expected Net Cash Flow from Vendor Take-Back Loans (VTB) 2024 and VTB Loans (CAD’000) Q3-Q4 2021 2022 2023 Total thereafter Second Nature1 328 687 12,506 - 13,521 Port McNicoll2 3,600 2,400 2,400 27,168 35,568 Blue Mountain Retail - - - 3,800 3,800 Vetta Spa - - - 804 804 Total 3,928 3,087 14,906 31
Slide 11: 1H 2021 Cash Movement Summary
1H 2021 Cash Movement Summary 1H 2021 Cash Movement Summary (CAD’000) Opening Cash Balance 22,436 Operating Cash Flow 13,857 Proceeds from Loans, Net of Repayments 2,161 Restricted Long Term Deposit (1,492) Capital Improvements, Net of Disposal Proceeds (3,087) Repayment of Bonds (3,240) Foreign Exc
Slide 12: Share Price Discount to NAV
Share Price Discount to NAV NAV was 36.24 NIS per share1 compared to its share price on June 30, 2021 of 21.34 NIS Skyline's share price was trading at a 41% discount to its NAV as of June 30, 2021 (Skyline uses fair value accounting, therefore its NAV is equal to its Book Value at June 30, 2021
Slide 13: Financial Strength and Flexibility
Financial Strength and Flexibility Total equity to total assets ratio of 41% Net debt to Net CAP1 ratio of 50% Cash balance of CAD $29.8M; approximately CAD $15M in additional restricted bank and other deposits that can be accessed in certain circumstances Additional net cash flow of CAD $53
Slide 14: Business Strategy
Business Strategy 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 of land assets to Strong potential growth less than 10% of
Slide 15: Portfolio Map
Portfolio Map 18 INCOME PRODUCING ASSETS | 3,266 HOTEL ROOMS | 18 CITIES IN THE US AND CANADA 15
Slide 16: Select Senior Management
Select Senior Management Blake Lyon CA, CPA Robert Waxman 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 Canada and internationally. Before real estate. Prior to his appointment, Mr. joinin
Slide 17: Current Ownership Structure
Current Ownership Structure 49.37% Alex Shnaider 1.53% 27.66% Public Blake Lyon 1.19% 20.25% ILDC 17
Slide 18: Summary of Periodic Results
Summary of Periodic Results CAD ‘000 1H 2021 1H 2020 YE 2020 Revenue from Hotels and Resorts 53,110 48,539 91,484 Sale of Residential Real Estate 4,314 30,408 37,878 Total Revenue 57,424 78,947 129,362 NOI from Hotels and Resorts 14,752 2,732 11,359 Total Adjusted EBITDA 11,260 2,283 7,884 FFO 4,682
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights CAD ‘000, except where noted June 30, 2021 December 31, 2020 Total Assets 641,276 637,863 Gross Debt1 293,100 306,105 Cash and Equivalents 29,819 22,436 Net Debt 263,281 283,669 Shareholders’ Equity 230,791 226,044 Non-Controlling Interest 31,055 30,385 Total Equity 261,846
Slide 20: Net Asset Value (in 000's CAD)
Net Asset Value (in 000’s CAD) Loan Balance Ownership BV NOI 2020 TTM Q2 2021 NOI LTV Equity June 30, 2021 Hotels and Resorts Deerhurst Resort (1) 100% 75,040 3,804 4,608 45,861 61% 29,179 Horseshoe Resort 100% 41,200 2,836 3,256 16,222 39% 24,978 Hyatt Regency Arcade 100% 63,085 (1,517) 2,010 22,23
Slide 21: Appendix
Appendix
Slide 22: Main Operating Assets in the United States
Main Operating Assets in the United States The Hyatt Regency Arcade, Cleveland, OH
Slide 23: 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 Fort Myers Cape Coral Courtyard Deerfield Arlington Heights Toledo, OH Fort Myers, FL Deerfield, IL
Slide 24: Courtyard by Marriott Hotels Properties Overview
Courtyard by Marriott Hotels Date of PROPERTIES Location Brand Management Service Level Acquisition OVERVIEW 9 States Courtyard by Aimbridge, Select Service November (USD) Marriott Urgo 14th, 2017 Number of Number of Acquisition Price Per Five Year Capital Credit Hotels Rooms Price Room Mortgage Lin
Slide 25: Courtyard Tucson Renovations
Courtyard Tucson Tucson Courtyard Renovations Before Renovation After Renovation 25
Slide 26: Hyatt Regency Arcade
Hyatt Regency Arcade SKYLINE IN V ES TM ENT S S HYATT REGENCY CLEVELAND
Slide 27: 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 28: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel
Slide 29: 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 the top complaint from hotel guests and is also expected to Notable visitors in the hotel’s history: Dwight D. Eisenhower, Ge
Slide 30: Bear Valley
Bear Valley SKYLINE
Slide 31: 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 San Francisco and improvements Acquired on December 2014 for US $3.7M from the Company’s In 2017 Skyline invested USD $5.5M on a new ski lift w
Slide 32: Main Operating Assets in Canada
Main Operating Assets in Canada
Slide 33: Deerhurst
Deerhurst x een ai = SKYLINE DEERHURST NE RESORT
Slide 34: Deerhurst
Deerhurst Future Potential Overview World-class four-season resort located in Muskoka near Increasing NOI by streamlining operations Toronto, Canada Sold all 150 units at Lakeside Lodge. 91 units have joined the The new 150-room Lakeside Lodge was completed during hotel’s rental program2 2019
Slide 35: Horseshoe Resort
Horseshoe Resort A SKYLINE RESOR BARRIE
Slide 36: Horseshoe Resort
Horseshoe Resort Overview Improvements An all-season resort based around the Horseshoe Ski Mountain, Sold and delivered all 44 units at Slopeside Lodge one of the closest ski resorts to Toronto, Canada The Company pre-sold 80% of its new 66-unit Edge Condo development at Horseshoe as of report d
Slide 37: Land Sales and Development
Land Sales and Development Edge Condos
Slide 38: Lakeside Lodge
Lakeside Lodge SKYLINE 1oN V ES TM ENTS
Slide 39: Slopeside Lodge
Slopeside Lodge 39
Slide 40: Blue Mountain Development Lands
Blue Mountain Development Lands Second Nature Phase 3/4 Second Nature Phase 1 Snowbridge Townhomes 40
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
Slide 42: Thank You!
Thank You! Questions? Please contact Rob Waxman | Chief Financial Officer 647-207-5312 | robw@skylineinvestments.com WWW.SKYLINEINVESTMENTS.COM