Skyline Investments Inc · TASE:SKLN
Skyline Investments — Investor Presentation (March 2017)
32 slides from Skyline Investments's investor presentation, March 2017
Slide 1: Corporate Presentation
Corporate Presentation Financial Statements 31.12.2016 WWW.SKYLINEINVESTMENTS.COM March, 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 December 31, 2016 the Company’s assets totaled approx. $520M and the shareholders’ equity totaled approximately $278M ($246M attributed to the shareho
Slide 4: 2016 Review Highlights – a Year of Realignment
2016 Review Highlights – a Year of Realignment • In 2016, total revenue from income producing assets showed an increase of 34% to $122.2M compared to $91M in 2015 • In 2016, the NOI from income producing assets showed an increase of 33.7% to approx. $20.8M compared to $15.6M in 2015. • Pantages hote
Slide 5: Development of Equity
Development of Equity (attributed to the shareholders, in millions of CAD$)* Changes in accounting for hospitality real estate from cost to FMV Before IPO * During last 15 years, the company raised approximately $70 mil CAD in private placements and IPO on Israeli stock exchange ** As a result of ch
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 Using Low Leveraged Balance Sheet
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 te HORSESHOE] | DEERHURST RENAISSANCE* San Francisco San José e - 1 CALIFORNI — + MEXICO BAJA CALIFORNIA { fh SIAN: yN x sg New Orteans oN % FLORIDA 4 Miami r) BAJA
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 Organisation 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 approximatel
Slide 13: 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 14: Blue Mountain Village
Blue Mountain Village Overview: • The Village includes Ontario’s largest ski resort, retail shops, and restaurants operating throughout the four seasons • The Village is located near Collingwood and Georgian Bay, two hours away from Toronto • The Company, together with a partner (40%), holds half of
Slide 15: Main Operating Assets in the United States
Main Operating Assets in the United States
Slide 16: 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 17: 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 c
Slide 18: 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 US, for which Skyline received a $3.5M US f
Slide 19: Bear Valley
Bear Valley Overview: • Ski resort located in California • The resort acquisition was purchased in 2014 for a total consideration of $3.7M US. The property was appraised at $11.5M US on December 31, 2016 • Skyline management invested significant efforts to reduce operational costs, invested close to
Slide 20: 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, 100 units have been sold for a revenue of $35M • Total revenue and gross profit are expected to be $53M and $13M respectively.
Slide 21: 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 $21M. The revenue and cash flow from these units will be recognized in financial statements over the next 3 years
Slide 22: Financial Information (CAD 000$)
Financial Information (CAD 000$)
Slide 23: Net Asset Value
Net Asset Value NoI 2016/ Loan Balance Ownership BV NOI 2015 NOI 2016 LTV BV 12/2016 (6) Revenue generating assets Deerhurst Resort (1) 100% 72,600 4,390 3,885 5.4% 43,513 60% Horseshoe Resort (2) 100% 54,000 4,078 2,747 5.1% 5,156 10% Blue Mountain Retail 60% 28,980 ** 1,671 1,750 6.0% 14,593 50% H
Slide 24: Key Company Ratios
Key Company Ratios Section 2014 2015 2016 % Change ** Revenue from revenue generating assets 74,627 91,073 122,197 34.2% Revenue from sale of residential real estate and other 5,698 5,590 25,797 361.5% Total Revenue 80,325 96,663 147,994 53.1% NOI from revenue generating assets 11,160 15,570 20,821
Slide 25: Summary
Summary Hospitality company Significant cash flow Financial stability focused on from income and conservative income-producing producing assets capital structure hotels Large land reserves Supportive Experienced provide supplemental business management team income and cash flow environment with a pr
Slide 26: Thank You!
Thank You! WWW.SKYLINEINVESTMENTS.COM Questions? Please contact Ben NovoShalem, Head of M&A and IR at: 416-368-2565 ext: 2222 or by email: benn@skylineinvestments.com
Slide 27: Appendix
SKYLINE INVESTMENTS Appendix
Slide 28: List of Assets with no Financial Debt
List of Assets with no Financial Debt ** Name FMV 000 CAD Bear Valley Resort 14,241 Horseshoe Resort (3) 49,000 Excluded Lands surrounding Deerhurst Resort (1) 15,480 Excluded Lands surrounding Horseshoe resort (2) 19,079 Lands at Blue Mountain (60%) 14,898 lands at and around Port McNicoll 46,557 S
Slide 29: Operating EBITDA ($CAD 000)
Operating EBITDA ($CAD 000) ** FS Note 2014 2015 2016 PROFIT FROM OPERATIONS 12,121 8,402 12,644 Add back: Revaluation component included in cost of sale 24 1,145 114 4,074 Write-down of real estate inventory to net realisable value 8(a) - - 2,993 Depreciation 25 5,410 5,326 6,635 Depreciation in Ad
Slide 30: FFO ($CAD 000)
FFO ($CAD 000) FS Note 2014 2015 2016 Profit for the year ** 4,196 8,095 7,453 Add back: Deferred income taxes 28 1,352 4,793 534 non cash financing costs 27 368 479 2,678 Revaluation component included in cost of sale 24 1,145 114 4,074 Other expense - 560 869 Write-down of real estate inventory to
Slide 31: Non-IFRS Financial Measures
Non-IFRS Financial Measures The Company’s consolidated financial statements are prepared in accordance with IFRS. There are certain additional non-IFRS measures, which are measures of Skyline’s historical or future financial performance that are not calculated and presented in accordance with IFRS.
Slide 32: Non-IFRS Financial Measures
Non-IFRS Financial Measures Funds From Operations (FFO) Skyline calculates FFO in accordance with the recommendations of the Real Property Association of Canada (“REALpac”). The use of FFO has * been included for the purpose of improving the understanding of the operating results of the Company. FFO
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