Item 2. Properties
ITEM 2. PROPERTIES
Equipment Stores
As of January 31, 2023, we operated 121 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 12 4 — 16
Minnesota 13 3 — 16
Iowa 12 3 — 15
Nebraska 14 2 — 16
South Dakota 10 2 — 12
Colorado — 3 — 3
Idaho 1 — — 1
Kansas 1 — — 1
Missouri 1 — — 1
Montana 1 — — 1
Washington 1 — — 1
Wisconsin 1 1 — 2
Wyoming 1 — — 1
European Countries
Bulgaria — — 7 7
Germany — — 5 5
Romania — — 14 14
Ukraine — — 9 9
Total 68 18 35 121
Store Lease Arrangements
As of January 31, 2023, we leased 67 store facilities with lease arrangements expiring at various dates through February 28, 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.
In recent years, we have been strategically purchasing real estate and financing the purchases with long term debt, to take advantage of low interest rates. We currently own the store facilities for 50 U.S. dealership locations and four Germany dealership locations. We have incurred debt financing and have been granted mortgages on these owned facilities. The remainder of our U.S. and international store locations are leased from third parties.
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 real estate.
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
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Table of Conten ts
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.