NoHo Partners prepares its financial statements in accordance with international IFRS standards. The IFRS 16 standard, which came into effect in 2019, requires NoHo Partners to recognize all of the company’s lease agreements as assets and liabilities, significantly impacting the company’s key financial figures. 

The growth and continuity of our business are based on long-term and favorable lease agreements in prime locations. As our business grows, our IFRS 16 lease liabilities naturally increase. We are also actively negotiating new lease agreements in attractive commercial locations. At the same time, all lease agreements essential to the company are sellable, if necessary, which is why the company does not consider the IFRS 16 liability to be actual debt. Therefore, in our financial reporting, we also present interest-bearing net debt excluding the IFRS 16 impact. We do not aim to optimize the amount of IFRS 16 liabilities, as the development of the lease portfolio is a key prerequisite for the company’s operations. 

In the long-term, our aim is to decrease the ratio of net debt to operational EBITDA, adjusted for IFRS 16 lease liability, to the level of approx. 2.