J.W. Mays(MAYS) - 2021 Q4 - Annual Report

Real Estate Operations - The Company operates several commercial real estate properties, with a total of approximately 1,500,000 square feet across various locations in New York and Ohio[34]. - As of July 31, 2021, the occupancy rate for the properties was 62.31%, with a total of 23 leases covering 237,722 square feet and generating an annual rent of $8,028,008[39]. - The Company has faced significant impacts on demand for commercial real estate rental space due to the pandemic, leading to increased competition and a decline in office space rentals[30]. - The Company leased 5,300 square feet to a retail tenant in November 2020, with rental payments commencing in January 2021[37]. - The Company emphasizes tenant retention and actively markets available space to various sectors, including governmental agencies and educational institutions[30]. - The occupancy rate for the property as of July 31, 2021, is 72.54%, with a total of 12 leases covering 147,603 square feet and generating an annual rent of $3,753,774, which is 18.571% of gross annual rent[45]. - The occupancy rate for the Massapequa property is 100% as of July 31, 2021, with real estate taxes amounting to $164,929 per year[59]. Financial Performance and Taxation - The federal tax basis for the Brooklyn Fulton Street property is $22,559,989, with accumulated depreciation of $13,557,945, resulting in a net carrying value of $9,002,044 as of July 31, 2021[40]. - As of July 31, 2021, the federal tax basis for the property is $7,550,837 with accumulated depreciation of $4,844,409, resulting in a net carrying value of $2,706,428[45]. - The property in Fishkill, New York, has a federal tax basis of $20,523,193 and accumulated depreciation of $15,122,512, leading to a net carrying value of $5,400,681 as of July 31, 2021[56]. - The real estate taxes for the Fishkill property are $143,375 per year, with an average rate of $3.186 per $100 of assessed valuation[57]. - The Circleville property has a federal tax basis of $4,466,746 and accumulated depreciation of $3,901,221, resulting in a net carrying value of $565,525 as of July 31, 2021[65]. - The real estate taxes for the Circleville property are $38,186 per year, with an average rate of $5.080 per $100 of assessed valuation[66]. - The real estate taxes for the property amount to $772,959 per year, with an average rate of $11.197 per $100 of assessed valuation[46]. Lease Management - The Company plans to negotiate renewals of expiring leases, contingent on tenants maintaining adequate finances[38]. - The company plans to negotiate renewals for expiring leases, contingent on tenants maintaining adequate finances[49]. Shareholder and Audit Information - The company has approximately 800 shareholders of record as of September 6, 2021[74]. - The Company reported total audit fees of $170,000 for fiscal year 2021, an increase from $165,000 in fiscal year 2020[100]. - Total fees paid to the independent registered public accounting firm amounted to $226,000 in fiscal year 2021, down from $241,810 in fiscal year 2020[100]. - Tax fees decreased significantly to $45,000 in fiscal year 2021 from $66,310 in fiscal year 2020[100]. - The Company has no disagreements with its accountants regarding accounting or financial disclosures[81]. Internal Controls and Reporting - As of July 31, 2021, the Company's management assessed its internal control over financial reporting as effective[85]. - There were no significant deficiencies or material weaknesses noted in the Company's internal controls during the last fiscal quarter[84]. - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective[83]. - The Company has maintained its internal control systems to provide reasonable assurance regarding the preparation of financial statements[85]. - The independent registered public accounting firm did not provide an attestation report on internal controls due to the exemption for smaller reporting companies[86]. - The Company filed two reports on Form 8-K during the three months ended July 31, 2021[87].