Skyline Investments Inc · TASE:SKLN
Skyline Investments — Q3 2016 Earnings Presentation
35 slides from Skyline Investments's earnings presentation, November 2016
Slide 1: Corporate Update Presentation
Corporate Update Presentation Financial Statements as at September 30, 2016 WWW.SKYLINEINVESTMENTS.COM
Slide 2: Cautionary Statement
Forward-looking information in this presentation is based on current estimates and Cautionary Statement assumptions made by the Company's management, including, without limitation, a reasonably stable North American economy, the strength of the U.S. lodging industry, and the competitive ability of t
Slide 3: Corporate Overview
Corporate Overview • Skyline was established and started its activities in the • As from March of 2014 the • The annual consolidated NOI as of September Canadian real estate market in 1998. Mishorim Company’s shares are traded on 30, 2016 was $23 million, while the stabilized Development (jointly co
Slide 4: Highlights for the nine month period ended September 30, 2016
Highlights for the nine month period ended September 30, 2016 • The revenue from income producing properties was $93 million compared to $64 million during the corresponding period last year. The NOI increased from $12 million last year to $18 million recorded during the current period. • The expect
Slide 5: Ownership Structure
Ownership Structure 0.86% Public 26.54% Gil Blutrich* 2.58% Blake Lyon 1.20% 3.46% 70.31% S K Y L I N E C I S A R N A A E D L A 65.36% 29.69% L T D . * One of the controlling shareholders in the Company, held through a holding company Blutrich Holdings Inc. ** Mishorim holds directly and indirectly
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 Chairman, President and Main Business and resort asset management in Canada and Development Officer Internationally. With hi
Slide 7: Business strategy
Business strategy 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
Slide 8: Business Segments (as at September 30, 2016)
Business Segments (as at September 30, 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 Hyatt Arcade - Retail Deerhurst Bear Valley Resort Blue Mountain Hor
Slide 9: Main assets in Canada
Main assets in Canada
Slide 10: 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 11: Deerhurst Resort
Deerhurst Resort • Luxury year round resort in the district of Muskoka, located near the city of Huntsville, two hours from Toronto • The Resort includes about 350 rooms (100 rooms owned by Skyline, 250 managed), two golf courses, conference rooms, a spa, swimming pools, restaurants, and a private a
Slide 12: Deerhurst Resort - Lakeside Lodge
Deerhurst Resort - Lakeside Lodge • The newest condo/hotel being built at Deerhurst Resort • Resort foundation is almost complete, with construction continuing through 2017 • This will add significant new room inventory to Deerhurst for the 2018 season Date Expected revenue Total FIRM in millions CA
Slide 13: Horseshoe Resort
Horseshoe Resort • A ski, golf, adventure park and hospitality resort operating year round, located one hour drive from Toronto. • The site includes a leading golf course in Canada, 25 alpine ski runs and 67.5 km of cross-country trails, 166 hotel rooms (141 owned, 25 managed), 5 restaurants. • The
Slide 14: Blue Mountain Village
Blue Mountain Village Highlights Development and disposition • A ski resort, a leading hotel and resort area As for November, 2016, the Company has sold 197 of Ontario, operates throughout the four residential lots for a total consideration of $30 million, of seasons it 73 lots were already delivere
Slide 15: Main assets in United States
SKYLINE IN VES TM ENT S assets in United State
Slide 16: Hyatt Regency Arcade
Hyatt Regency Arcade • General: historical heritage site built in 1890. Located in the central business district of Cleveland, USA. The property includes a 293-room hotel, managed by Hyatt, an indoor mall of about 4,200 sq.m., and conference rooms, a spa, a fitness club and restaurants • Pre-acquisi
Slide 17: 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 18: Skyline Investments
SKYLINE INVESTMENTS 18
Slide 19: 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 20: Material dispositions occurred during the last year
Material dispositions occurred during the last year 5.2015 10.2015 9.2016 The Company sold its interest in Skyline accepted an Skyline accepted an offer to sell two the King Edward Hotel, located offer to sell 65 lots for land parcels at Blue Mountain with in downtown Toronto for a total $8 million
Slide 21: Other events occurred during the last year
Other events occurred during the last year 9.2015 3.2016 6.2016 7.2016 A change of Zoning- Skyline obtained a financing of $29 Skyline entered into Skyline issued bonds by-law for million US (Libor + 2.5-2.75%) for the Tel-Aviv 50 index, at (series A) and raised agricultural land at acquisition and
Slide 22: Financial Information
SKYLINE IN VES TM ENTS tee, Financial Information
Slide 23: Development of Equity
Development of Equity (attributed to the shareholders, in millions of CAD)** 180.0 163 159 160.0 150 140.0 129 Before IPO 120.0 115 103 100.0 80.0 70 72 66 60.0 48 40.0 33 24 20.0 18 8 11 0.6 3 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9.2016 * During last 15 ye
Slide 24: Summary of the Financial Reports – Profit and Loss
Summary of the Financial Reports – Profit and Loss ($Mil CAD) For nine months ended September 30, 2016 For nine months ended September 30, 2015 For a year ended December 31, 2015 Revenue 116 67 97 Cost of sales (106) (60) (83) Profit before sales, marketing and 10 7 14 administrative and general exp
Slide 25: Main Data from Statements of Financial Position
Main Data from Statements of Financial Position (09/30/16 – in $Mil CAD) Section Value Note of which about $54M for inventory, $38M Current assets 143 property held for sale and about $12M for cash and cash equivalent % of the total balance sheet 38% Investment Properties and long term real estate i
Slide 26: Cash flow results from income producing assets
Cash flow results from income producing assets for 12 months ended on September 30, 2016 Section In million* CAD Note From Q4-2015 until Q3-2016 Profit from operations 12 Profit excluding non reoccurring expenses: Sale of condos and lots -1 Mainly due to the commission received from the Renaissance
Slide 27: Cash flow results from income producing assets
Cash flow results from income producing assets for 12 months ended on September 30, 2016 Section In million CAD Note The stabilized NOI for income producing assets is 32 million Consolidated annual NOI for the year ended June 30, 2016 +23 CAD 50% of the Renaissance Hotel and 40% of the Blue Mountain
Slide 28: Assets not fully presented in the statements of financial position
Assets that are not fully presented in the statements of financial position (in $Mil CAD) NET BOOK VALUE FAIR VALUE DEFFERNCE SITE NOTES 09/30/2016 - 7.3** 7.3 Developable land for 162 condo units 40 units building which was previously used for - 6.2* 6.2 Time Share 60 123** 63 Resorts that are acco
Slide 29: Assets free of lien as for September 30, 2016
Assets free of lien as for September 30, 2016 Asset In million CAD Note Horseshoe resort(1) 56 As per an appraisal from December 2015 Bear Valley resort 5 As per an appraisal from August 2014 (time of initial purchase) As per an appraisal from December 2015 Lands located near Horseshoe resort 12 As
Slide 30: Summary
Summary Unique business model creating optimal synergy Financial stability Significant cash flow between hospitality and conservative from income producing resort activities and properties capital structure development opportunities Large land reserves Experienced purchased at bargain Supportive bus
Slide 31: Thank you!
Thank you! WWW.SKYLINEINVESTMENTS.COM Questions? Please contact Vadim Shub, CFO at: 416-368-2565 ext: 2263 or by email: ir@skylineinvestments.com
Slide 32: Appendixes
Appendixes
Slide 33: Summary of consolidated Hospitality and Income Producing Assets
Summary of consolidated Hospitality and Income Producing Assets ($Mil CAD) Renaissance Site | Properties DHR HSR Hyatt Hotel ) 2( Hotel BVR ) 1( BMT Total Location Ontario, Canada Ontario, Canada Cleveland, USA Cleveland, USA California, USA Ontario, Canada Use/designation H O T E L S & R E S O R T
Slide 34: Sale of condo units, houses and lands
Sale of condo units, houses and lands Site | Properties Total Total book value (land component only) 30 20 27 (3) 45 122 Units available according to the master plan as at 09/30/16 (5) 1,110 (4) 1,594 (6) 762 1,896 5,362 Of units available (as above) classified in inventory; condos, houses and lots
Slide 35: 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 second and third calendar quarter – October Mainly during the first and last quarters Ski and Golf resort, mainly active in the winter Yea