MAYS J W INC
For the period ended Oct 31, 2024. Filed Dec 12, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 31, 2024 · Filed Dec 12, 2024
MAYS$42.15-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-04-30; filed 2024-06-13.
0001206774-24-000621
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 16 -Current report: 10-Q
Period ended 2024-10-31; filed 2024-12-12.
0001206774-24-001105
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 15 -The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 58 previous paragraphs and 43 current paragraphs.
18 unchanged; 10 reworded; 15 added; 30 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 26 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Current report
Revenues in the current three months increased to $5,539,129 from $5,323,801 in the comparable three months ended October 31, 2023, primarily due to increased rent for existing tenants and several new leases; partially offset by the loss of a few tenants.
Current report
Administrative and general expenses increased in the current three months to $1,292,753 from $1,254,573 in the comparable three months ended October 31, 2023, primarily due to an increase in legal and professional fees; partially offset by a reduction in payroll cost.
Current report
Other income and interest expense improved in the current three months to $(19,514) compared to $(195,892) in the comparable three months ended October 31, 2023, primarily due to a net unrealized loss on marketable securities only in the 2023 three months.
Current report
In August 2024, a tenant extended its lease through June 30, 2025 with the same terms for 10,569 square feet at the Company’s Jowein building in Brooklyn, New York.
Current report
In August 2024, the Company leased 2,051 square feet to an office tenant at the Company’s Jamaica, New York premises for ten years, with five separate one year renewal options. Monthly rent of approximately $5,500, with annual increases, is expected to commence by January 1, 2025 when renovations to the premises are expected to be complete. The Company’s costs of renovations are expected to approximate $470,000, of which $235,000 will be reimbursed by the office tenant.
Current report
In August 2024, a tenant who occupies warehouse space at the Company’s building in Circleville, Ohio, extended its lease from May 31, 2026 for additional three years to May 31, 2029. Effective November 1, 2024, the size of the leased premises expanded by 84,000 feet, including space previously leased by another tenant whose lease expired October 31, 2024. After the lease expansion, annual base rent for the warehouse space will be $877,440 per annum with increases annually. Brokerage commissions were $106,867.
Current report
In November 2024, a tenant who occupies 700 square feet at the Company’s 9 Bond Street building in Brooklyn, New York agreed for a base rent increase of $2,400 annually to expand their space to include an additional 130 square feet through lease expiration on January 31, 2026.
Current report
Cash Flows:
Current report
The following table summarizes our cash flow activity for the three months ended October 31, 2024 and 2023:
Current report
Deferred Expenses: The Company incurred $106,867 for brokerage commissions during the three months ended October 31, 2024. Commissions due were for one tenant’s lease extension at the Company’s Circleville, Ohio property.
Current report
Source of Funds; Cash Flows from Financing Activities; Company Indebtedness
Current report
The Company plans to negotiate terms on an existing $3,354,768 mortgage. At any time between April 1, 2025 and April 1, 2040, the bank may demand a balloon payment for the full amount outstanding.
Current report
Another mortgage with a bank was fully paid off on December 1, 2024. The Company intends to explore other lending options to replace this mortgage.
Current report
For a more detailed description of the Company’s indebtedness, see Note 5 - Mortgages Payable to the Consolidated Financial Statements.
Removed paragraphs (30)
Previous report
Three months ended April 30, 2024 compared to the three months ended April 30, 2023:
Previous report
Revenues in the current three months decreased to $5,364,324 from $5,563,396 in the comparable 2023 three months primarily due to the loss of a tenant who agreed to terminate their lease effective March 31, 2023; combined with a decrease in rent revenue from a seasonal tenant occupying less space.
Previous report
Administrative and general expenses in the current three months decreased to $1,265,307 from $1,313,372 in the comparable 2023 three months primarily due to decreases in employee payroll and benefits in the current three months.
Previous report
Interest expense, net of capitalized interest, exceeded investment income by $(39,183) in the current three months compared to $(34,119) in the three months ended April 30, 2023. Net unrealized loss in the current three months increased from declining values of marketable securities; partially offset by less interest expense, net of capitalized interest.
Previous report
Nine months ended April 30, 2024 compared to the nine months ended April 30, 2023:
Previous report
In the nine months ended April 30, 2024, the Company reported net loss of $(375,483), or $(.19) per share. In the comparable nine months ended April 30, 2023, the Company reported net income of $65,095, or $.03 per share. The change in the 2024 nine months was primarily due to a decrease in rental income; partially offset by a decrease in real estate operating expenses, a decrease in interest expense, net of capitalized interest, a decrease in net unrealized loss, and a realized gain on the sale of marketable securities.
Previous report
Revenues in the current nine months decreased to $16,102,968 from $17,170,949 in the comparable 2023 nine months primarily due to the loss of a tenant who agreed to terminate their lease effective March 31, 2023; combined with a decrease in rent revenue from a seasonal tenant occupying less space.
Previous report
Real estate operating expenses in the current nine months decreased to $11,346,113 from $11,595,422 in the comparable 2023 nine months primarily due to decreases in rent expense for the Jamaica, New York lease, and employee payroll costs; partially offset by increases in real estate taxes and insurance expense.
Previous report
Administrative and general expenses in the current nine months of $4,006,512 was slightly increased from $3,970,458 in the comparable 2023 nine months. Reductions in payroll and benefit costs in the current period were offset by higher legal and professional fees; combined with less recoveries of bad debt in the current period, as recoveries resulting from the COVID-19 pandemic are now mostly complete.
Previous report
Depreciation expense in the current nine months of $1,286,787 approximated $1,263,519 in the comparable 2023 nine months.
Previous report
Interest expense, net of capitalized interest, exceeded investment income by $(1,089) in the current nine months compared to $(265,455) in the nine months ended April 30, 2023 primarily due to less interest expense, net of capitalized interest, in the current nine months; combined with a decrease in net unrealized loss and a realized gain on the on marketable securities.
Previous report
In August 2023, a tenant who occupies 22,045 square feet at the Company’s Jamaica, New York premises renewed its lease for another five-year term through June 30, 2028. Brokerage commissions were $128,021.
Previous report
In September 2023, a tenant extended its leases for one year through September 30, 2024 as follows:
Previous report
In November 2023, a tenant who occupies 785 square feet at the Company’s 9 Bond Street building in Brooklyn, New York premises renewed its lease for another two-year term through January 31, 2026.
Previous report
In November 2023, the Company leased approximately 1,600 square feet to a coffee store retailer at the Company’s 9 Bond Street building in Brooklyn, New York for ten years from rent commencement anticipated November 1, 2024, with two options for an additional five years. The costs of renovations for this tenant are expected to be approximately $1,000,000. Brokerage commissions were $95,760.
Previous report
In December 2023, the Company leased approximately 4,000 square feet at the Company’s Fishkill, New York building for use as a cross-fit gym. Rent commencement is expected in the summer of 2024 for a term of ten years from rent commencement. The costs of renovations for this tenant are anticipated to be completed by summer 2024 for approximately $100,000. Brokerage commissions were $48,532.
Previous report
In December 2023, the Company extended a lease with an office tenant at the Company’s Jamaica, New York premises for ten years expiring November 30, 2033, including a space reduction from 46,421 to 23,210 square feet. The annual base rent of $653,968 (reduced from $1,098,500) commences after renovations are complete. Renovations are expected to be completed in the summer of 2024 at an approximate cost of $1,300,000. Once renovations are complete, additional rent of $156,000 will be paid annually over ten years. Brokerage commissions were $365,755.
Previous report
In December 2023, the Company leased approximately 5,632 square feet at the Company’s 9 Bond Street building in Brooklyn, New York to an office tenant, rent commencing on May 1, 2024 for a term of ten years through May 1, 2034. There are two renewal options for an additional five years. The costs of renovations for this tenant were approximately $100,000. Brokerage commissions were $50,714.
Previous report
In March 2024, the Company leased 5,800 square feet to an office tenant at the Company’s Jowein building in Brooklyn, New York for a term of eighteen months with monthly rent of $17,833 commenced April 1, 2024 through March 31, 2025; increasing to monthly payments of $18,420 beginning April 1, 2025 through August 31, 2025. There is a renewal option for six months. Brokerage commissions were $10,730.
Previous report
In April 2024, a tenant who occupies warehouse space at the Company’s building in Circleville, Ohio, exercised its option to reduce the size of the leased premises from 84,000 to 72,000 square feet with an annual rent reduction of approximately $37,000.
Previous report
During the nine months ended April 30, 2024, the Company had expenditures at its:
Previous report
Fishkill, New York building of:
Previous report
9 Bond Street building in Brooklyn, New York of:
Previous report
Costs incurred for tenant improvements at the Company’s Jamaica, New York premises were $193,729 as of April 30, 2024, including:
Previous report
Source of Funds
Previous report
Related Party Transactions:
Previous report
The Company has two operating leases with Weinstein Enterprises, Inc. (“Landlord”), an affiliated company, principally owned by the Chairman of the Board of Directors of both the Company and Landlord. One lease is for building, improvements, and land located at Jamaica Avenue at 169th Street, Jamaica, New York. Another lease is for Premises located at 504-506 Fulton Street, Brooklyn, New York.
Previous report
In July 2022, the Company entered into lease agreements with Landlord as follows:
Previous report
Rent payments and expense relating to these two operating leases with Landlord follow:
Previous report
The following summarizes assets and liabilities related to these two leases:
Reworded paragraphs (10)
Previous wording
Critical accounting policies are defined as those most important to the portrayal of a company’s financial condition and results and require the most difficult, subjective, or complex judgments. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported amount of revenues, and expenses during the reporting period and related disclosure of contingent assets and liabilities. Estimates are based on historical experience, where applicable or other assumptions that management believes are reasonable under the circumstances. Actual results may differ from these estimates under different assumptions and conditions.
Current wording
Critical accounting policies are defined as those most important to the portrayal of a company’s financial condition and results and require the most difficult, subjective or complex judgments. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported amount of revenues, and expenses during the reporting period and related disclosure of contingent assets and liabilities. We believe the critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements. Estimates are based on historical experience, where applicable or other assumptions that management believes are reasonable under the circumstances. We have identified the policies described below as our critical accounting policies. Actual results may differ from these estimates under different assumptions and conditions. There have been no significant changes to our critical accounting policies and estimates during the three months ended October 31, 2024 from those disclosed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our 2024 Annual Report to Shareholders incorporated by reference into our Annual Report on Form 10-K for the period ended July 31, 2024.
Previous wording
In the three months ended April 30, 2024, the Company reported net loss of $(84,880), or $(.04) per share. In the comparable three months ended April 30, 2023, the Company reported net loss of $(39,160), or $(.02) per share. The change in the 2024 three months was primarily due to a decrease in rental income; partially offset by decreases in real estate operating expenses and administrative and general expenses.
Current wording
In the three months ended October 31, 2024, the Company reported net income of $26,657, or $.01 per share. In the comparable three months ended October 31, 2023, the Company reported net loss of ($192,544), or ($.10) per share. The increase in the 2024 three months was primarily due to increased rent for existing tenants and several new leases combined with a net unrealized loss on marketable securities only in the 2023 three months.
Previous wording
Real estate operating expenses in the current three months decreased to $3,826,499 from $3,851,857 in the comparable 2023 three months primarily due to decreases in rent expense for the Jamaica, New York lease, and employee payroll costs; partially offset by increases in real estate taxes and insurance expense.
Current wording
Real estate operating expenses in the current three months increased to $3,750,139 from $3,692,616 in the comparable three months ended October 31, 2023, primarily due to an increase in real estate taxes and insurance expense; partially offset by decreases in building maintenance costs.
Previous wording
Depreciation expense in the current three months of $429,215 approximated $422,208 in the comparable 2023 three months.
Current wording
Depreciation expense in the current three months of $444,066 approximated $428,264 in the comparable three months ended October 31, 2023.
Previous wording
In September 2023, the Company leased approximately 25,000 square feet at the Company’s Fishkill, New York building for use as storage space for four months expiring December 31, 2023. Total rent of $162,363 was prepaid at lease commencement and was being amortized as revenue over the entire term of the lease.
Current wording
Effective October 1, 2024, the Company leased approximately 12,500 square feet at the Company’s Fishkill, New York building for use as storage space for three months expiring December 31, 2024. Total rent of $61,219 was prepaid at lease commencement and is being amortized as revenue over the term of the lease.
Previous wording
Accounts Payable and Accrued Expenses: The Company had a balance due on April 30, 2024 for brokerage commissions of $654,279.
Current wording
Accounts Payable and Accrued Expenses: The Company had a balance due on October 31, 2024 for brokerage commissions of $406,701.
Previous wording
During the nine months ended April 30, 2024, the Company had expenditures of $64,573 for roof work at its 25 Bond Street building in Brooklyn, New York, and $6,819 of steel work at the Company’s Jowein building in Brooklyn, New York.
Current wording
During the three months ended October 31, 2024, the Company had expenditures of:
Previous wording
Including the estimated costs to complete improvements mentioned above, the Company anticipates incurring an additional $2 million in capital expenditures over the next twelve months ending April 30, 2025. The Company’s primary source of liquidity is 1) cash provided by operations, 2) marketable securities, and 3) borrowings. Total liquidity as of April 30, 2024 was $3,321,117, which consists of cash and cash equivalents of $1,171,121 and the fair value of marketable securities of $2,149,996. Total liquidity includes proceeds from fixed rate borrowings as of April 30, 2024. In addition, the Company’s plans include securing an additional line of credit, if needed, with an affiliated entity, Weinstein Enterprises, Inc. (“Weinstein”), principally owned by the Chairman of the Board of Directors of both the Company and Weinstein.
Current wording
Including the estimated costs to complete improvements mentioned above, the Company anticipates incurring an additional $1.6 million in capital expenditures over the next twelve months ending October 31, 2025. The Company’s primary source of liquidity is 1) cash provided by operations, and 2) borrowings. Total liquidity as of October 31, 2024 consists of cash and cash equivalents of $2,316,114. Total liquidity includes proceeds from fixed rate borrowings as of October 31, 2024.
Previous wording
This section, Management’s Discussion and Analysis of Financial Condition and Results of Operations, other sections of this Report on Form 10-Q, and other reports and verbal statements made by our representatives from time to time may contain forward-looking statements that are based on our assumptions, expectations and projections about us and the real estate industry. These include statements regarding our expectations about revenues, our liquidity, our expenses, and our continued growth, among others. Such forward-looking statements by their nature involve a degree of risk and uncertainty. We caution that a variety of factors, including but not limited to the factors listed below, could cause business conditions and our results to differ materially from what is contained in forward-looking statements:
Current wording
This section, Management’s Discussion and Analysis of Financial Condition and Results of Operations, other sections of this Report on Form 10-Q, and other reports and verbal statements made by our representatives from time to time may contain forward-looking statements that are based on our assumptions, expectations and projections about us and the real estate industry. These include statements regarding our expectations about revenues, our liquidity, or expenses and our continued growth, among others. Such forward-looking statements by their nature involve a degree of risk and uncertainty. We caution that a variety of factors, including but not limited to the factors described under Item 1A, “Risk Factors” in our Form 10-K for the fiscal year ended July 31, 2024 and the following, could cause business conditions and our results to differ materially from what is contained in forward-looking statements:
Previous wording
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to review any additional disclosures we make in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and any Form 8-K reports filed with the United States Securities and Exchange Commission.
Current wording
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures we make in proxy statements, Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K filed with the U. S. Securities and Exchange Commission.