Item 2. Properties
ITEM 2. PROPERTIES
Equipment Stores
As of January 31, 2021, we operated 109 agricultural and construction equipment stores in the United States and Europe in the following locations:
Agriculture Segment Construction Segment International Segment Total
United States
North Dakota 10 5 — 15
Minnesota 10 3 — 13
Iowa 10 3 — 13
Nebraska 13 2 — 15
South Dakota 8 2 — 10
Colorado — 3 — 3
Montana — 3 — 3
Wisconsin — 1 — 1
Wyoming 1 1 — 2
European Countries
Bulgaria — — 7 7
Germany — — 5 5
Romania — — 12 12
Ukraine — — 9 9
Serbia — — 1 1
Total 52 23 34 109
Store Lease Arrangements
As of January 31, 2021, we leased 96 store facilities with lease arrangements expiring at various dates through January 31, 2031. Many of our lease agreements include fair market value purchase options, rights of first refusal, lease term extension options, or month-to-month or year-to-year automatic renewal provisions at the conclusion of the original lease period. A majority of the leases provide for fixed monthly rental payments and require us to pay the real estate taxes on the properties for the lease periods. We are generally responsible for utilities and maintenance of the leased premises. All of the leases require that we maintain public liability, property casualty, and personal property insurance on each of the leased premises. The leases generally require us to indemnify the lessor in connection with any claims arising from the leased premises during our occupation of the property. We believe our facilities are adequate to meet our current and anticipated needs.
As part of our due diligence review prior to a dealership acquisition, we evaluate the adequacy, suitability and condition of the related real estate. Our evaluation typically includes a Phase I environmental study, and if deemed necessary, a Phase II environmental study, of the real property to determine whether there are any environmental concerns. If any environmental concerns exist, we generally require that such concerns be addressed prior to acquisition of the dealership.
We have not historically owned significant amounts of real estate, although we evaluate opportunities to invest in our real estate on a case by case basis. We currently own the store facilities for eleven U.S. dealership locations and four Germany dealership locations. We have incurred debt financing and granted mortgages on these owned facilities. The remainder of our U.S. and international store locations are leased from third parties.
Headquarters
We currently lease and occupy approximately 48,000 square feet in West Fargo, North Dakota for our headquarters and this lease expires on January 31, 2028. We continually review our location needs, including the adequacy of our headquarters space, to ensure our space is sufficient to support our operations. We believe there is ample opportunity for expansion in our West Fargo headquarters facility if necessary.
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