Skyline Investments Inc · TASE:SKLN
Skyline Investments — Investor Presentation (December 2019)
40 slides from Skyline Investments's investor presentation, Dec 31, 2019
Slide 1: Corporate Presentation
Corporate December 31, 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 3,301 Guestrooms $676m/$277m Total Assets/Equity 41.0% Equity to Total Assets Ratio Baa1.il Bond Rating 2,315 Units Available for Development 4
Slide 5: 2019 Activity
2019 Activity1 Revenue from hotels and resorts increased by The Company closed the sale of the Blue $8.1m due to improvement at all hotels, with Mountain Retail asset at the end of Q1 for particularly strong growth from the Courtyard $31.7m, which was purchased in 2013 for portfolio, coupled with a
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 2019 2018 2017 Income from Hotels and Resorts 193,585 185,534 121,869 Sale of Residential Real Estate 41,658 46,722 30,694 Total Revenue 235,243 232,256 152,563 NOI from Hotels and Resorts 42,214 41,551 21,968 Total Adjusted EBITDA1 40,849 36,983 20,207 FFO1 18,3
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights CAD ‘000 December 31, 2019 December 31, 2018 Total Assets 675,846 776,594 Gross Debt1 302,814 367,269 Cash and Equivalents 26,874 27,983 Net Debt 275,940 339,286 Shareholders’ Equity 252,374 260,753 Non-Controlling Interest 24,467 40,087 Total Equity 276,841 300,840 Sharehol
Slide 12: Net Asset Value (in 000's CAD)
Net Asset Value (in 000’s CAD) Loan Balance Ownership BV 2018 NOI 2019 NOI 2019 NOI/BV LTV Equity December 31, 2019 Hotels and Resorts Deerhurst Resort (1) 100% 76,673 6,056 6,106 8.0% 49,249 64% 27,424 Horseshoe Resort 100% 41,500 3,335 2,854 6.9% 6,191 15% 35,309 Hyatt Regency Arcade 100% 68,757 5
Slide 13: Financial Strength and Flexibility
Financial Strength and Flexibility Strong Balance Sheet Expected Increase in Cash Flow Total equity to total assets ratio of 41.0% Final closing of major development project Net debt to net capital1 ratio of 49.9% Lakeside took place in Q4 2019 and early Q1 2020. Total net cash proceeds to be
Slide 14: Main Operating Assets in the United States
Main Operating Assets in the United States The Hyatt Regency Arcade, Cleveland, OH
Slide 15: USA - Economy and Hotel Market
USA - Economy and Hotel Market In 2019, GDP grew by 2.3% to US$21.3 trillion. Over the coming year, GDP is expected to grow by an additional 2.0% According to STR, in 2019, the U.S. showed continued growth, with RevPAR at an all-time high In 2019, Occupancy remained flat at 66.1% and ADR incre
Slide 16: 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 17: 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 18: 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 19: Courtyard by Marriott
Courtyard by Marriott Active Asset Management – Ft. Myers Courtyard Renovations Before Renovation After Renovation 19
Slide 20: Hyatt Regency Arcade
Hyatt Regency Arcade SKYLINE IN V ES TM ENT S HYATT REGENCY CLEVELAND
Slide 21: 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 22: Hyatt Regency Arcade
Hyatt Regency Arcade Active Asset Management – Hyatt Room Renovations Before Renovation After Renovation 22
Slide 23: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel
Slide 24: 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 25: Bear Valley
a2 Z, = > SZ WY Bear Valley
Slide 26: 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 27: Main Operating Assets in Canada
Main Operating Assets in Canada
Slide 28: Canada - Economy and Hotel Market
Canada - Economy and Hotel Market Canada’s GDP grew by 1.6% in 2019 buoyed by domestic consumption Hotel occupancy decreased slightly to 65.2% ADR increased by 1.2% to $165.23, while RevPAR decreased by 0.2% to $107.81 According to HVS, 2020 RevPAR is forecast to increase by 2.2% 2019 dema
Slide 29: Deerhurst
Deerhurst SKYLINE IN V ES TM ENT S \ Oe DEERHURST A SKYLINE MUSKOKA
Slide 30: 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 31: Horseshoe Resort
Horseshoe Resort SKYLINE IN V ES TM ENT S HORSESHOE A SKYLINE RESORT BARRIE
Slide 32: 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 33: Land Sales and Development
Land Sales and Development
Slide 34: Projects in Advanced Stage of Sale
Projects in Advanced Stage of Sale(1) Main Projects Under Development Expected Net # of Expected Recognized Revaluation Gross Profit Gross Profit Cash Proceeds # of Sales Expected Recognized Project Location Type Ownership Units Gross Gross Profit Incl. Rate Incl. Timing Units Rate Revenue Revenue G
Slide 35: Lakeside Lodge
Lakeside Lodge SKYLINE
Slide 36: Slopeside Lodge
Slopeside Lodge SRE LIINE
Slide 37: Blue Mountain Development Lands
Blue Mountain Development Lands Second Nature Phase 3/4 Second Nature Phase 1 Snowbridge Townhomes 37
Slide 38: Thank You!
Thank You! Questions? Please contact Rob Waxman | Chief Financial Officer 647-207-5312 | robw@skylineinvestments.com WWW.SKYLINEINVESTMENTS.COM
Slide 39: Appendix
Appendix
Slide 40: 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
Skyline Investments — Investor Presentation (December 2019) on 6ix