J.W. Mays(MAYS) - 2022 Q1 - Quarterly Report

Financial Performance - For the three months ended October 31, 2021, the company reported a net loss of $(390,750), or $(0.19) per share, compared to a net loss of $(415,424), or $(0.21) per share, for the same period in 2020[88]. - Revenues increased to $5,079,547 from $4,834,994 in the comparable 2020 period, primarily due to rental income from two new tenants and increased rents from existing tenants[89]. - Real estate operating expenses rose to $3,630,122 from $3,582,617, mainly due to increased amortization expenses, partially offset by decreases in real estate taxes and utilities[89]. - Administrative and general expenses increased to $1,404,112 from $1,169,523, primarily due to higher insurance and bad debt expenses[90]. Bad Debt and Lease Termination - The company experienced bad debt expense of $63,000 from August 2021 to October 2021, reflecting ongoing impacts from COVID-19[92]. - A tenant at the Nine Bond Street building exercised their option to terminate their lease effective May 31, 2022, resulting in an annual loss of approximately $320,000 in rental income[95]. Debt and Financial Risk - The company had fixed-rate debt of $7,355,207 as of October 31, 2021, which does not expose it to market risk related to interest rate changes[105]. - The company continues to experience volatility in the valuation of its equity investments, which may impact future financial results[92]. Future Outlook - The company anticipates occupancy and rental payments from a new office tenant in December 2021, with renovation costs of approximately $625,000[93]. - The full impact of COVID-19 on the company's business remains uncertain, with potential adverse effects on revenue and tenant credit quality[84].