Skyline Investments Inc · TASE:SKLN
Skyline Investments — Investor Presentation (August 2017)
32 slides from Skyline Investments's investor presentation, August 2017
Slide 1: Corporate Presentation
Corporate Presentation Financial Statements 30.06.2017 WWW.SKYLINEINVESTMENTS.COM August, 2017 Corporate Presentation
Slide 2: Cautionary Statement
Forward-looking information in this presentation is based on current Cautionary Statement estimates and 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 specializes in hospitality real estate investments in Canada and the US, with a focus on income producing assets • As of June 30, 2017 the Company’s assets totaled approx. $514M and the shareholders’ equity totaled approximately $286M with capital to balance ratio of 56%
Slide 4: Recent Activity
Recent Activity • August 2017: Skyline has signed a conditional agreement to purchase 13 Courtyard Marriott hotels for $135M USD. The hotels consist of 1,913 rooms and generated revenues of approximately $51.1M USD and NOI of $14.5M USD in 2016. • July 2017: The company completed the sale of Port Mc
Slide 5: Development of Equity
Development of Equity (attributed to the shareholders, in millions of CAD$)* 300.0 Changes in accounting for 246 245 250.0 hospitality real estate from cost to FMV Skyline distributed 200.0 dividend in the amount of $1.8M CAD 159 150 150.0 Before IPO 129 115 103 100.0 70 72 66 48 50.0 33 24 18 8 11
Slide 6: Current Ownership Structure
Current Ownership Structure Public 25.48% 3.46% Gil Blutrich 2.58% Blake Lyon 1.20% Alex Shnaider 1.02% ILDC 0.86% 70.31% 70.31% 29.69% SKYLINE CANADA ISRAEL LTD. 65.36% 29.69% * 74% of Mishorim is owned by Alex Shnaider and Gil Blutrich through a joint voting arrangement ** Mishorim holds directly
Slide 7: Senior Team
Senior Team Gil Blutrich Blake Lyon CA, CPA Vadim Shub CA, CPA Chairman and CEO CFO President Founded Mishorim in 1990 and Skyline in Blake Lyon has an extensive experience in hotel Over 20 years of experience in managing 1998. Chairman, President and Main and resort asset management in Canada and f
Slide 8: Business Strategy – Increased Acquisition Program
Business Strategy – Increased Acquisition Program Using Low Leveraged Balance Sheet Skyline’s Strategy: • Optimization of cash flow from existing assets through our experience in operations • Acquisition of accommodation properties to decrease seasonality and diversify our geographic presence • Decr
Slide 9: Business Markets
Business Markets SKYLINE HORSESHOE INVESTMENTS BRUNSWICK Portland i ipa Minneapolis r RS Nova “OREGON fal PENNSYLVANIA ! OHIO F Philadelphia renassane det Seepetc x —— » DE Son Francisco <= ||_Missount - NS KENTUCI San Jose. r CALIFORNN | \ OKLAHOMA j t : of. i “fh f ¥ lotte . & Pe aa MR a7) Wa a |
Slide 10: Main Operating Assets in Canada
Main Operating Assets in Canada
Slide 11: Canada Overview
Canada Overview ● Canada is the second largest country by land mass with a population of 35 million ● One of the top 10 largest economies of the world and a member of the Organization for Economic Co-operation and Development (OECD) ● Considered a top country for quality of life with a specific focu
Slide 12: Deerhurst Resort
Deerhurst Resort Overview: • Luxury year round resort in the district of Muskoka, two hours from Toronto. • The Resort includes approx. 315 rooms (101 rooms owned by Skyline, 214 managed), two golf courses, conference rooms, spa, swimming pools, restaurants, and a private airport. • With approximate
Slide 13: Deerhurst Resort
Deerhurst Resor BIRGHCLIEF VILLAS © som z —_ oe i OAKRIDGE TODGE/LAKESIDE ALES OFFI ss TENNISVILW. ~GOLFVIEW Déerhurst Lakeside Goli Course THE GREENS: LOGATIONS OF ROOM TYPES Travellers’ Rooms— Mapleridge, Golfview & Tennisview Main Building Rooms - Pavi 4-Bedroom Suites — Summit Lodges: Lakeside R
Slide 14: Horseshoe Resort
Horseshoe Resort Overview: • 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 40km of cross-country trails, 163 hotel rooms (141 owned, 22 managed), and 5 restaura
Slide 15: Blue Mountain Village
Blue Mountain Village Overview: • The Village includes Ontario’s largest ski resort, retail shops, and restaurants operating throughout the four seasons. • Blue Mountain is located near Collingwood and Georgian Bay, two hours away from Toronto. • The Company, together with a partner (40%), holds hal
Slide 16: Main Operating Assets in the United States
Main Operating Assets in the United States
Slide 17: Cleveland Overview
Cleveland Overview • Greater Cleveland is the 28th most populous metropolitan area (2.5 million people) and its GDP grew by 0.7% in 2016 and is projected to grow a further 4.1% in 2017. • Home of seven Fortune 500 firms including Goodyear Tire, Progressive Insurance, and FirstEnergy. • Cleveland's e
Slide 18: Hyatt Regency Arcade
Hyatt Regency Arcade Overview: • Historical heritage site built in 1890. Located in the central business district of Cleveland. The property includes a 293-room hotel,, an indoor mall of about 4,200 sq.m., and conference rooms, spa, fitness club and restaurants. • Hyatt is currently under a 10-year
Slide 19: Active Asset Management – Hyatt Room Renovations
Active Asset Management – Hyatt Room Renovations 19
Slide 20: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel ) Overview: • 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) • The property was purchased by Skyline for $19.1M USD, for which Skyline received a $3.5M USD
Slide 21: Bear Valley
Bear Valley Overview: • Ski resort located in California • The resort acquisition was purchased in 2014 for a total consideration of $3.7M USD. The property was appraised at $11.5M USD on December 31, 2016. • Skyline management invested significant efforts to reduce operational costs, invested close
Slide 22: Land Sales and Development Assets
Land Sales and Development Assets Lakeside Lodge (Deerhurst): • 162-unit development on Deerhurst land to be used for sale and inventory for Deerhurst Resort. • As of today, 114 (70%) units have been sold for a revenue of $41M. • Total revenue and gross profit are expected to be $55M and $13M respec
Slide 23: Land Sales and Development Assets
Land Sales and Development Assets Blue Mountain: • As of December 2016, the Company delivered 74 lots bringing in approx. $9M in revenue • As of today, the Company has sold 124 units at $21M. The revenue and cash flow from these units will be recognized in financial statements over the next 3 years
Slide 24: Financial Information ($CAD 000)
Financial Information ($CAD 000)
Slide 25: Financial Strength and Flexibility
Financial Strength and Flexibility Strong Balance Sheet • Capital to balance ratio of 56% • Net Debt to Net Assets ratio is merely 22% Flexibility • As of June 30, 2017 the Company has: o A cash balance of $18M o An unutilized low cost credit line of $21M o Effective average loan duration of 4.4 yea
Slide 26: Well-Staggered Term Debt Maturities
Well-Staggered Term Debt Maturities 40,000 35,000 30,000 CAD 'ooo 25,000 Renaissance Hotel** 20,000 15,000 10,000 5,000 0 Q2/17-Q2/18 Q2/18-Q2/19 Q2/19-Q2/20 Q2/20-Q2/21 Q2/21-Q2/22 Q2/22-Q2/23 Q2/23-Q2/24 Mortgages 7,918 5,282 18,413 2,443 2,177 2,191 33,200 Bond A 2,101 2,101 2,105 2,103 2,107 35,
Slide 27: Net Asset Value
Net Asset Value NOI - Loan Balance Ownership BV 2015 NOI 2016 NOI NOI – LTM/BV LTV Equity LTM 6/2017 (6) Revenue generating assets Deerhurst Resort (1) 100% 72,600 4,390 3,885 4,958 6.8% 41,598 57% 31,002 Horseshoe Resort (2) 100% 54,000 4,078 2,747 4,118 7.6% - 0% 54,000 Blue Mountain Retail 60% 28
Slide 28: Summary of Periodic Results (in 000’s CAD)
Summary of Periodic Results (in 000’s CAD) Section 2016 H1/16 H1/17 ** Revenue from revenue generating assets 122,197 61,966 59,405 Revenue from sale of residential real estate and other 25,797 18,533 1,420 Total Revenue* 147,994 80,549 60,825 NOI from revenue generating assets 20,821 10,582 10,418
Slide 29: Main Balance Sheet Parameters (in 000’s CAD)
Main Balance Sheet Parameters (in 000’s CAD) Section 31.12.2016 31.03.2017 30.06.2017 ** Total Assets 519,753 512,692 514,495 Gross financial debt 130,985 123,997 128,708 Cash and equivalents 29,961 24,903 18,192 Net Debt 101,024 99,094 110,516 Shareholders equity 245,968 247,600 244,734 Non-control
Slide 30: Appendix
SKYLINE INVESTMENTS Appendix
Slide 31: List of Assets with no Financial Debt (in 000’s CAD)
List of Assets with no Financial Debt (in 000’s CAD) ** FMV(5) Name 30.06.2017 Bear Valley Resort 14,241 Horseshoe Resort (3) 49,000 Excluded Lands surrounding Deerhurst Resort (1) 15,480 Excluded Lands surrounding Horseshoe resort (2) 19,079 Lands at Blue Mountain (60%) 14,898 Lands at and around P
Slide 32: Thank You!
Thank You! WWW.SKYLINEINVESTMENTS.COM Questions? Please contact Ben Novo-Shalem, Head of M&A and IR 416-368-2565 ext: 2222 |benn@skylineinvestments.com
Skyline Investments — Investor Presentation (August 2017) on 6ix