EBITDAR · FAVÖKAR

EBITDAR

Short definition

EBITDAR is EBITDA before rent. It is used to compare operators who lease with those who own (retail, airlines, hotels). It does not remove the cash rent outflow.

Detailed explanation

The point is comparability between a firm that owns property and one that leases it. After IFRS 16 most leases are on balance sheet as a right-of-use asset and lease liability, so EBITDA may already exclude the old rent line (now interest and depreciation). Which “rent” is added back — cash rent, contingent rent, short-term leases — must be the contract definition.

If EBITDAR is used in valuation or leverage, lease liabilities belong in enterprise value or the multiple must be consistent with post-rent cash. Otherwise the denominator is inflated and rent-like debt is hidden.

Why it matters for the CFO

In M&A and credit, rent-adjusted leverage makes sale-and-leaseback visible. A CFO should not quote capacity on EBITDAR without putting lease liabilities into the debt-like stack.

How it is calculated

EBITDAR = EBITDA + Kira gideri

Rent may be cash rent or the P&L rent line, depending on the facility agreement. IFRS 16 interest plus depreciation is not equal to legacy rent.

Variables in the formula

• EBITDAR: EBITDA before rent
• EBITDA: EBITDA
• Rent: Cash rent / lease expense (definition is contract-specific)

How to read it

EBITDAR margin exceeds EBITDA margin in rent-heavy models; that is not “higher profitability”, it is rent moved above the line. Turnover rents make EBITDAR volatile. IFRS 16 adoption breaks the historical series.

Numerical example

EBITDA 120 mn TL, contract-defined cash rent 30 mn TL → EBITDAR = 120 + 30 = 150 mn TL.

Definitions are educational. They are not investment, credit or tax advice.