J.W. Mays(MAYS) - 2023 Q2 - Quarterly Report

Financial Performance - For the three months ended January 31, 2023, the company reported net income of $44,738, or $0.02 per share, compared to a net loss of $(195,830), or $(0.10) per share for the same period in 2022[72]. - For the six months ended January 31, 2023, the company reported net income of $104,255, or $0.05 per share, compared to a net loss of $(586,580), or $(0.29) per share for the same period in 2022[76]. Revenue Growth - Revenues increased to $5,837,819 for the three months ended January 31, 2023, up from $5,328,349 in the comparable 2022 period, primarily due to rental income from new tenants and increased rents from existing tenants[73]. - Revenues for the six months ended January 31, 2023, increased to $11,607,553 from $10,407,896 in the comparable 2022 period, driven by rental income from new tenants and increased rents from existing tenants[77]. Expenses - Real estate operating expenses rose to $3,958,144 for the three months ended January 31, 2023, compared to $3,670,065 in the same period in 2022, mainly due to higher real estate taxes and building maintenance costs[73]. - Administrative and general expenses decreased to $2,657,086 for the six months ended January 31, 2023, down from $2,821,524 in the comparable 2022 period, primarily due to lower bad debt expense and legal fees[78]. Debt and Interest - The company had fixed-rate debt of $5,832,207 as of January 31, 2023, which does not expose it to market risk related to changes in interest rates[92]. - Investment income exceeded interest expense by $9,733 for the three months ended January 31, 2023, a significant improvement from the prior year when interest expense exceeded investment income by $(63,290)[75]. Future Outlook - The company anticipates a loss in rental income of approximately $1,000,000 per annum due to a tenant's intent to terminate their lease effective March 31, 2023[83]. Capital Expenditures - The company completed facade restoration at its 9 Bond Street building for a total cost of $321,013 during the six months ended January 31, 2023[85].