Financial Performance - For the three months ended January 31, 2024, the company reported a net loss of $(98,059), or $(0.04) per share, compared to a net income of $44,738, or $0.02 per share for the same period in 2023[70]. - For the six months ended January 31, 2024, the company reported a net loss of $(290,603), or $(0.14) per share, compared to a net income of $104,255, or $0.05 per share for the same period in 2023[75]. - Total revenues for the six months decreased to $10,738,644 from $11,607,553 in the comparable 2023 period, again primarily due to the loss of a tenant[76]. - Revenues decreased to $5,414,843 from $5,837,819 in the comparable 2023 period, primarily due to the loss of a tenant who terminated their lease effective March 31, 2023[71]. Operating Expenses - Real estate operating expenses decreased to $3,826,998 from $3,958,144 in the comparable 2023 period, mainly due to reduced rent expense and building maintenance costs[72]. Capital Expenditures and Liquidity - The company anticipates incurring an additional $3.2 million in capital expenditures over the next twelve months ending January 31, 2025[88]. - Total liquidity as of January 31, 2024, was $2,856,602, consisting of cash and cash equivalents of $691,515 and the fair value of marketable securities of $2,165,087[88]. - The company is in the process of securing an additional line of credit with Weinstein Enterprises, Inc. if needed[88]. Debt and Interest - As of January 31, 2024, the company had fixed-rate debt amounting to $4,552,114[97]. - Investment income exceeded interest expense by $233,986 in the current three months, compared to $9,733 in the comparable 2023 period, primarily due to increases in the fair value of marketable securities[73]. - The company does not use derivative financial instruments, mitigating exposure to market risk related to interest rate changes[97]. Risks and Forward-Looking Statements - The company faces various risks including economic growth fluctuations, regulatory changes, and increasing competition[96]. - Forward-looking statements may be affected by factors such as lease cancellations and the ongoing effects of COVID-19[95]. - The company emphasizes the importance of reviewing additional disclosures in quarterly and annual reports for updated information[96]. - The company has no obligation to publicly update forward-looking statements unless new information arises[96]. - The company’s financial condition may be influenced by the credit availability from financial institutions[96]. - The company is subject to risks related to the recoverability of claims against customers and third parties[96]. - The company’s estimates of costs and critical accounting policies may change, impacting financial results[96]. Lease Agreements - The company extended a lease with an office tenant for ten years, reducing the space from 46,421 to 23,210 square feet, with an annual base rent of $653,968 commencing after renovations[85]. Strategic Outlook - The company is monitoring the trends of office versus remote work practices as part of its strategic outlook[95].
J.W. Mays(MAYS) - 2024 Q2 - Quarterly Report