Properties

Retail locations and 2006 changes to the Company's store count were as follows:

January 1,
2006		 Opened /
Acquired		 Closed /
Sold /
Divested		 December 31,
2006
Stop & Shop / Giant-Landover Arena 573 15 13 575
Giant-Carlisle / Tops Arena 267 20 67 220
Albert Heijn Arena 1,651 94 34 1,711
Central Europe Arena 502 33 19 516
Schuitema 462 6 10 458
Total 3,455 168 143 3,480
 

As of December 31, 2006, of the 3,480 locations, 1,088 were operated by franchisees or associates. Of the 2,392 locations not operated by franchisees or associates, 16 percent were subject to finance leases, 65 percent to operating leases and 19 percent were company owned. The Company's retail locations range in size from 35 to 10,000 square meters.

The Company also operated the following other properties as of December 31, 2006:

 
Warehouses / distribution centers / production facilities 247
Offices 89
Properties held for future development or sale / not in use 445
Properties under construction / development 79
Residential properties 142
Total 1,002
 

Of these other properties, 6 percent were subject to finance leases, 45 percent to operating leases and 49 percent were company owned. Further, of these 1,002 properties 36 percent were subleased to franchisees, operators of associated stores or third parties.

Our leased properties have terms ranging up to 25 years with renewal options for additional periods. Store rentals are normally payable monthly at a stated amount or at a guaranteed minimum amount plus a percentage of sales over a defined base. For additional information on lease obligations, see Notes 27 and 34 to the consolidated financial statements included in this Annual Report.

Ahold believes that its current facilities are adequate to meet the requirements of its present and foreseeable future operations.

Capital expenditures of EUR 1.5 billion in 2006, EUR 1.4 billion in 2005 and EUR 1.7 billion in 2004 were primarily related to the construction and expansion of stores and supply chain infrastructure improvements. The increase in capital expenditures over 2005 was primarily due to the acquisition of Konmar stores in the Netherlands and Clemens Markets in the United States.