Skyline Investments Inc · TASE:SKLN
Skyline Investments — Investor Presentation (May 2019)
41 slides from Skyline Investments's investor presentation, May 15, 2019
Slide 1: Corporate Presentation
Corporate 31.03.2019 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 3,219 Guestrooms $757M/$296M Total Assets/Equity 39.1% Equity to Total Assets Ratio Baa1.il Bond Rating 2,315 Units for Development 4
Slide 5: Recent Activity
Recent Activity First Quarter Revenue increased by 20.3% to The Company closed the sale of the Blue Mountain Retail asset at the end of the quarter for CAD CAD $56.9M 31.7M, which was purchased in 2013 for CAD NOI from income-producing assets increased by 20M, realizing on the fair value gains recor
Slide 6: Business Strategy
Business Strategy INCREASED 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
Slide 7: Portfolio Map
Portfolio Map 18 INCOME PRODUCING ASSETS | 3,219 HOTEL ROOMS | 18 CITIES IN THE US AND CANADA
Slide 8: Senior Management Team
Senior Management Team Blake Lyon CA, CPA Robert Waxman Bruce Riggins CEO CFO COO Blake Lyon has an extensive experience Robert Waxman has over 20 years of Mr. Riggins was the Chief Financial in hotel and resort asset management in experience in accounting, finance, and Officer for LaSalle Hotel Pro
Slide 9: Current Ownership Structure
Current Ownership Structure 49.39% Alex Shnaider 1.51% 27.65% Public Blake Lyon 1.19% 20.26% ILDC During 2018 a dispute arose between the main shareholders of Mishorim. On December 17, 2018 Mr. Alex Shnaider and Mr. Gil Blutrich reached an understanding to end the disputes between them. For more inf
Slide 10: Summary of Periodic Results (in 000's CAD)
Summary of Periodic Results (in 000’s CAD) Section Q1-19 Q1-18 2018 Revenue from revenue generating 50,825 47,079 185,534 assets Revenue from sale of residential 6,039 194 46,722 real estate and other Total Revenue 56,864 47,273 232,256 NOI from revenue generating 12,767 11,072 41,551 assets Total A
Slide 11: Main Balance Sheet Parameters (in 000's CAD)
Main Balance Sheet Parameters (in 000’s CAD) Section 31.03.2019 31.12.2018 Total Assets 756,927 784,437 Gross Debt 356,775 367,269 Cash and Equivalents 33,638 27,983 Net Debt 323,137 339,286 Shareholders Equity 257,731 260,753 Non-Controlling Interest 38,143 40,087 Total Equity 295,874 300,840 Share
Slide 12: Net Asset Value (in 000's CAD)
Net Asset Value (in 000’s CAD) TTM 3/19 Loan Balance Ownership BV 2018 NOI NOI/BV LTV Equity NOI 03.31.2019 Revenue generating assets Deerhurst Resort (1) 100% 75,662 6,056 6,005 7.9% 48,607 64% 27,055 Horseshoe Resort 100% 41,217 3,390 3,959 9.6% - - 41,217 Hyatt Regency Arcade 100% 67,101 5,705 5,
Slide 13: Financial Strength and Flexibility
Financial Strength and Flexibility Strong Balance Sheet Expected Increase in Cash Flow Equity to Total Assets ratio of 39.1% Financial closing of two major development Net Debt to Net CAP ratio of 52.2% projects Lakeside and Slopeside is expected to take place during 2019 and contribute signif
Slide 14: Unencumbered Assets
Unencumbered Assets Book Value Name (000’s CAD) Bear Valley Resort 23,988 Excluded Lands surrounding Deerhurst Resort (1) 15,270 Excluded Lands surrounding Horseshoe resort (2) 13,192 Lands at Blue Mountain (60%) 6,806 Vendor's take back against Port McNicoll lands 30,098 Remaining Port McNicoll lan
Slide 15: Main Operating Assets in the United States
Main Operating Assets in the United States The Hyatt Regency Arcade, Cleveland, OH
Slide 16: USA - Economy and Hotel Market
USA - Economy and Hotel Market In 2018, GDP grew by 2.9 % to $20.5 trillion, the highest growth rate since 2014. Over the coming year, GDP is expected to grow by an additional 2.5%. According to STR, in 2018, the U.S. hotel industry recorded record growth for the second year in a row according t
Slide 17: 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 Tucson Airport Courtyard Deerfield Arlington Heights Toledo, OH Tucson, AZ Deerfield, IL
Slide 18: 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 19: Courtyard by Marriott: 2018 Updates
Courtyard by Marriott: 2018 Updates 2018 Updates Skyline and Aimbridge replaced 10 of 13 General Managers and hired 13 new Director of Sales, these actions are expected to improve hotel results in the mid to long term though impacted results negatively in 2018. Renovations at Courtyard Fort Myer
Slide 20: Courtyard by Marriott
Courtyard by Marriott Active Asset Management – Ft. Myers Courtyard Renovations Before Renovation After Renovation 20
Slide 21: Hyatt Regency Arcade
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Slide 22: 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
Slide 23: Hyatt Regency Arcade
Hyatt Regency Arcade Active Asset Management – Hyatt Room Renovations Before Renovation After Renovation 23
Slide 24: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel
Slide 25: 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 expect
Slide 26: Bear Valley
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Slide 27: 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 USD $3.7M from the In 2017 Skyline invested USD $5.5M on a new ski lift which Com
Slide 28: Main Operating Assets in Canada
Main Operating Assets in Canada
Slide 29: Canada - Economy and Hotel Market
Canada - Economy and Hotel Market Canada’s GDP grew by 1.8% in 2018 buoyed by rising exports. Hotel occupancy reached 66.3% the highest level since 1999. ADR increased by 4.3% to $163.40 and RevPAR rose 5.3% to $108.39. This is compared to +4.9% to $156.73 RevPAR growth in 2017. According to
Slide 30: Deerhurst
Deerhurst SKYLINE IN V ES TM ENTS s ‘ i} : . Vy DEERHURST A SKYLINE MUSKOKA
Slide 31: Deerhurst
Deerhurst Overview Future Potential World-class four-season resort located in Muskoka near Increasing NOI by streamlining operations. Toronto, Canada. Sold 142 of 150 units at Lakeside Lodge. 72 units have joined the The new 150-room* Lakeside Lodge has almost completed hotel’s rental program*.
Slide 32: Horseshoe Resort
Horseshoe Resort SKYLINE IN VES TM ENTS HORSESHO SKYLINE R T BARRIE
Slide 33: Horseshoe Resort
Horseshoe Resort Overview Improvements An all-season resort based around the Horseshoe Ski Mountain, Sold 41 of 44 units at Slopeside Lodge. All sold units have one of the closest Ski Resort to Toronto, Canada. been delivered and financial closing will take place in 2019. The Horseshoe Adventure P
Slide 34: Land Sales and Development
Land Sales and Development
Slide 35: Projects in Advanced Stage of Sale
Projects in Advanced Stage of Sale(1) Main Projects Under Development (CAD 000’s) Expected Recogniz Recogn Gross Net Cash Number Sales Expected ized Gross Profit Profit Rate Proceeds Date of Number Expected ed Revaluation Including Including Project Location Type Ownership of Units Gross Gross upon
Slide 36: Lakeside Lodge
Lakeside Lodge 36
Slide 37: Slopeside Lodge
Slopeside Lodge 37
Slide 38: Blue Mountain Development Lands
Blue Mountain Development Lands Second Nature Phase 3/4 Second Nature Phase 1 Snowbridge Townhomes 38
Slide 39: Thank You!
Thank You! Questions? Please contact Ben Novo-Shalem | Head of M&A and IR 416-368-2565 ext: 2222 | benn@skylineinvestments.com WWW.SKYLINEINVESTMENTS.COM
Slide 40: Appendix
Appendix
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
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