J.W. Mays(MAYS) - 2022 Q4 - Annual Report

Real Estate Operations - The Company operates several commercial real estate properties, with a total of approximately 1,000,000 square feet across various locations in New York and Ohio[33]. - As of July 31, 2022, the occupancy rate for the Brooklyn Fulton Street property was 63.38%, with 27 leases covering 245,611 square feet and generating an annual rent of $7,587,797[39]. - The Company has long-term leases for its properties, with the longest extending to 2073, and most leases include renewal options[33]. - The Company leased 14,100 square feet to an office tenant in April 2022 for a term of ten years, with rent commencing in June 2022[38]. - The occupancy rate for the property as of July 31, 2022, is 80.84%[44]. - Approximately 23,000 square feet of the building is currently available for lease, with plans to renovate upon future lease execution[48]. - The occupancy rate for the Fishkill property is 22.27% as of July 31, 2022[56]. - The company owns the entire property in Circleville, Ohio, with a federal tax basis of $4,466,746 and accumulated depreciation of $4,042,544, resulting in a net carrying value of $424,202[64]. Financial Performance and Risks - The Company has experienced an increase in late payments due to COVID-19, impacting its allowance for credit losses for accounts receivable[25]. - The Company is subject to various risks, including economic downturns, environmental liabilities, and the ongoing effects of COVID-19 on commercial real estate demand[30]. - The federal tax basis for the Brooklyn Fulton Street property is $22,559,989, with accumulated depreciation of $14,020,057, resulting in a net carrying value of $8,539,932[40]. - As of July 31, 2022, the federal tax basis for the property is $7,550,837 with accumulated depreciation of $5,008,330, resulting in a net carrying value of $2,542,507[44]. - The company has a total of 15 leases with a gross annual rent of $4,659,996, which represents 21.780% of the total gross annual rent[44]. - The real estate taxes for the property amount to $777,700 per year, with an average rate of $11.908 per $100 of assessed valuation[45]. - The real estate taxes for this second property are $971,968 per year, with an average rate of $11.306 per $100 of assessed valuation[53]. Lease Management - The Company emphasizes tenant retention and has diversified its tenant base to mitigate risks associated with financially unstable tenants[30]. - The Company plans to negotiate lease renewals as they come due, contingent on tenants maintaining adequate finances[43]. - The company plans to negotiate renewals for expiring leases, contingent on tenants maintaining adequate finances[49]. Internal Controls and Audit - The Company's audit fees for fiscal year 2022 were $170,000, consistent with the previous year, while total fees increased slightly to $227,100 from $226,000 in 2021[96]. - There were no changes in the Company's internal controls over financial reporting during the last fiscal quarter, and no significant deficiencies or material weaknesses were noted[82]. - The Company's management assessed the effectiveness of internal control over financial reporting as of July 31, 2022, concluding that it is effective based on established criteria[83].