Skyline Investments Inc · TASE:SKLN
Skyline Investments — Q1 2021 Earnings Presentation
42 slides from Skyline Investments's earnings presentation, Mar 31, 2021
Slide 1: Corporate Presentation
Corporate March 31, 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 3,279 Guestrooms $630m/$255m Total Assets/Equity 40% 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: Q1 2021 Results
Q1 2021 Results NOI from hotels and resorts increased by 10% to In April 2021, the U.S. hotel sector saw demand and CAD $8.3M compared to CAD $7.5M in Q1 2020 occupancy hit their highest levels since the start of the pandemic. Our Courtyard portfolio experienced Revenue from hotels and resorts decre
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 $7.0M (US $5.5M) was received during Q1 2021, and CAD $2.5M (US $2.0M) was received on May 5, 2021. As part of this program, the portion of
Slide 9: Debt Composition and Maturities
Debt Composition and Maturities Bond A and B – Payments are current. As of March 31, 2021 (CAD’000) Bond A – Matures January 2023, can be repaid through obtaining a new property level Weighted Average Term Maturity – 1.85 years 5% 3% 15% mortgage or sale of the asset in advance of 5% maturity; o
Slide 10: Expected Net Cash Flow from Vendor Take-Back Loans (VTB)
Expected Net Cash Flow from Vendor Take-Back Loans (VTB) VTB Loans (CAD’000)1 Q2-Q4 2021 2022 2023 2024 Total Second Nature2 491 711 11,978 - 13,180 Blue Mountain Retail - - - 3,800 3,800 Boathouses 3 & 43 3,054 - - - 3,054 Horseshoe Golf Course4 1,496 - - - 1,496 Vetta Spa - - - 804 804 Total 5,041
Slide 11: Q1 2021 Cash Movement Summary
Q1 2021 Cash Movement Summary Q1 2021 Cash Movement Summary (CAD’000) Opening Cash Balance 22,436 Operating Cash Flow 2,913 Capital Improvements (1,403) Repayment of Bonds (3,240) Proceeds from Long Term Loans, Net of Repayments 4,021 Other Movements Including FX (610) Ending Cash Balance 24,117 C
Slide 12: Share Price Discount to NAV
Share Price Discount to NAV NAV was 35.51 NIS per share compared to its share price on March 31, 2021 of 14.49 NIS Skyline's share price was trading at a 59% discount to its NAV as of March 31, 2021 (Skyline uses fair value accounting, therefore its NAV is equal to its Book Value at March 31, 20
Slide 13: Financial Strength and Flexibility
Financial Strength and Flexibility Total equity to total assets ratio of 40% Net debt to Net CAP1 ratio of 52% Cash balance of CAD $24M; approximately CAD $12M in additional restricted bank and other deposits that can be accessed in certain circumstances Additional cash flow of CAD $22M duri
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 | 3,279 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 3M 2021 3M 2020 YE 2020 Income from Hotels and Resorts 28,191 41,567 91,484 Sale of Residential Real Estate 2,916 30,092 37,878 Total Revenue 31,107 71,659 129,362 NOI from Hotels and Resorts 8,254 7,507 11,359 Total Adjusted EBITDA 6,714 9,091 7,884 FFO 3,332 2,
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights CAD ‘000, except where noted March 31, 2021 December 31, 2020 Total Assets 630,065 637,863 Gross Debt1 302,072 306,105 Cash and Equivalents 24,117 22,436 Net Debt 277,955 283,669 Shareholders’ Equity 224,767 226,044 Non-Controlling Interest 29,834 30,385 Total Equity 254,601
Slide 20: Net Asset Value (in 000's CAD)
Net Asset Value (in 000’s CAD) Loan Balance Ownership BV NOI 2020 TTM Q1 2021 NOI LTV Equity March 31, 2021 Hotels and Resorts Deerhurst Resort (1) 100% 73,782 3,804 3,991 44,524 60% 29,258 Horseshoe Resort 100% 40,371 2,836 3,414 16,040 40% 24,331 Hyatt Regency Arcade 100% 62,643 (1,517) (559) 22,6
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: 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
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. 90 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 During Q4 2020, the Company launched its new, 66-unit Edge Condo development, and pre-sold 55%
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