Skyline Investments Inc · TASE:SKLN
Skyline Investments — Q1 2020 Earnings Presentation
38 slides from Skyline Investments's earnings presentation, Mar 31, 2020
Slide 1: Corporate Presentation
Corporate March 31, 2020 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 18 Income Producing Assets 3,301 Guestrooms $703m/$284m Total Assets/Equity 40.4% Equity to Total Assets Ratio Baa1.il Bond Rating 2,315 Units Available for Development 4
Slide 5: Q1 2020 Activity
Q1 2020 Activity1 Total Revenue increased by $14.8m compared to The Company closed the sale Second Nature Q1 2019 due to completion of development at Blue Mountain during Q1 2020 for $28.9m, projects; revenue from hotels and resorts monetizing the fair value gains recorded on decreased by 18.2% prim
Slide 6: Business Strategy
Business Strategy 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 of land ass
Slide 7: Portfolio Map
Portfolio Map 18 INCOME PRODUCING ASSETS | 3,301 HOTEL ROOMS | 18 CITIES IN THE US AND CANADA
Slide 8: Select Senior Management
Select Senior Management Blake Lyon CA, CPA Robert Waxman CEO CFO Blake Lyon has an extensive experience Robert Waxman has over 20 years of in hotel and resort asset management in experience in accounting, finance, and Canada and Internationally. Before real estate. Prior to this appointment, joinin
Slide 9: Current Ownership Structure
Current Ownership Structure 49.37% Alex Shnaider 1.51% 27.68% Public Blake Lyon 1.19% 20.25% ILDC 9
Slide 10: Summary of Periodic Results
Summary of Periodic Results CAD ‘000 Q1 2020 Q1 2019 FY 2019 Income from Hotels and Resorts 41,567 50,825 193,585 Sale of Residential Real Estate 30,092 6,039 41,658 Total Revenue 71,659 56,864 235,243 NOI from Hotels and Resorts 7,507 12,767 42,214 Total Adjusted EBITDA1 9,091 12,569 40,849 FFO1 2,
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights CAD ‘000, except where noted March 31, 2020 December 31, 2019 Total Assets 703,042 675,846 Gross Debt1 339,102 302,814 Cash and Equivalents 37,770 26,874 Net Debt 301,332 275,940 Shareholders’ Equity 259,455 252,374 Non-Controlling Interest 24,837 24,467 Total Equity 284,992
Slide 12: Net Asset Value (in 000's CAD)
Net Asset Value (in 000’s CAD) Loan Balance Ownership BV Q1 ‘20 NOI TTM Q1 ‘20 NOI TTM NOI/BV LTV Equity March 31, 201 Hotels and Resorts Deerhurst Resort (1) 100% 75,837 6,106 5,710 7.5% 50,880 67% 24,957 Horseshoe Resort 100% 40,840 2,854 2,475 6.1% 5,784 14% 35,056 Hyatt Regency Arcade 100% 74,54
Slide 13: Financial Strength and Flexibility
Financial Strength and Flexibility Strong Balance Sheet Government Stimulus Measures ▪ Total equity to total assets ratio of 40.4% ▪ In response to the COVID-19 pandemic, the US and Canadian Governments launched multiple ▪ Net debt to net capital1 ratio of 51.5% stimulus measures ▪ In the US, Skylin
Slide 14: Main Operating Assets in the United States
Main Operating Assets in the United States The Hyatt Regency Arcade, Cleveland, OH
Slide 15: 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 16: 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 17: Courtyard by Marriott: Recent Updates
Courtyard by Marriott: Recent Updates Recent Updates ▪ Skyline and Aimbridge replaced 10 of 13 General Managers and hired 13 new Directors of Sales in 2018, which is expected to improve hotel results in the mid to long term ▪ Renovations at Courtyard Fort Myers caused a displacement impact on NOI in
Slide 18: Courtyard by Marriott
Courtyard by Marriott Active Asset Management – Ft. Myers Courtyard Renovations Before Renovation After Renovation 18
Slide 19: Hyatt Regency Arcade
Hyatt Regency Arcade SKYLINE IN V ES TM EN T S S HYATT REGENCY CLEVELAND
Slide 20: 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 21: Hyatt Regency Arcade
Hyatt Regency Arcade Active Asset Management – Hyatt Room Renovations Before Renovation After Renovation 21
Slide 22: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel
Slide 23: 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 Notable visitors in the hotel’s history: Dwight D. Eisenhower, Gerald the top complaint from hotel guests and is also expecte
Slide 24: Bear Valley
Bear Valley SKYLINE RVALLEY SORT
Slide 25: 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 US $3.7M from the Company’s ▪ In 2017 Skyline invested USD $5.5M on a new ski lift w
Slide 26: Main Operating Assets in Canada
Main Operating Assets in Canada
Slide 27: Deerhurst
Deerhurst SKYLINE DEERHWJRST MUSKOKA
Slide 28: Deerhurst
Deerhurst Overview Future Potential World-class four-season resort located in Muskoka near ▪ Increasing NOI by streamlining operations Toronto, Canada. ▪ Sold 147 of 150 units at Lakeside Lodge. 87 units have joined the The new 150-room1 Lakeside Lodge was completed during hotel’s rental program1 20
Slide 29: Horseshoe Resort
Horseshoe Resort SKYLINE HORSESHOE A SKYLINE RESOR BARRIE
Slide 30: Horseshoe Resort
Horseshoe Resort Overview Improvements An all-season resort based around the Horseshoe Ski Mountain, ▪ Sold 42 of 44 units at Slopeside Lodge. All sold units have been delivered one of the closest Ski Resort to Toronto, Canada ▪ Officially opened the new Horseshoe Lake in August 2017, The Horseshoe
Slide 31: Land Sales and Development
Land Sales and Development
Slide 32: Recent Development Projects
Recent Development Projects(1) Main Sold and Delivered Projects, Currently Under VTB Loan Terms Recognized Gross Gross Profit Rate Project Location Type Ownership Sales Recognized Recognized Profit Incl. Incl. Remaining VTB Year of full VTB Rate Revenue Gross Profit Balance payment Revaluation(2) Re
Slide 33: Lakeside Lodge
Lakeside Lodge SKYLINE
Slide 34: Slopeside Lodge
Slopeside Lodge 34
Slide 35: Blue Mountain Development Lands
Blue Mountain Development Lands Second Nature Phase 3/4 Second Nature Phase 1 Snowbridge Townhomes 35
Slide 36: Thank You!
Thank You! Questions? Please contact Rob Waxman | Chief Financial Officer 647-207-5312 | robw@skylineinvestments.com WWW.SKYLINEINVESTMENTS.COM
Slide 37: Appendix
Appendix
Slide 38: 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