BJs owns less than a third of their clubs, the rest are leased. The annual report states that as of January 2006, 106 warehouse clubs are leased, 48 are owned, 11 are owned but subject to long term ground leases. The leases run from 4 to 25 years. Most of the leases have an initial term of 20 years and require escalating payments over the term of the lease. They account for land and leaseholds at cost on the balance sheet. So the older owned stores have appreciated from the initial cost. They operated 69 clubs before 1995. The annual report doesn't indicate how many of those 69 clubs are owned. You can't tell from the annual report if the leases are at below market rates. You would have to call BJ's investor relations to try to find out more, the information is not in the annual report.
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