Financial Performance - For the three months ended April 30, 2024, the company reported a net loss of $(84,880), or $(0.04) per share, compared to a net loss of $(39,160), or $(0.02) per share for the same period in 2023[71]. - For the nine months ended April 30, 2024, the company reported a net loss of $(375,483), or $(0.19) per share, compared to net income of $65,095, or $0.03 per share for the same period in 2023[76]. - Revenues decreased to $5,364,324 from $5,563,396 in the comparable 2023 period, primarily due to the loss of a tenant who terminated their lease effective March 31, 2023[72]. - Revenues for the nine months decreased to $16,102,968 from $17,170,949 in the comparable 2023 period, primarily due to the loss of a tenant[77]. Operating Expenses - Real estate operating expenses decreased to $3,826,499 from $3,851,857 in the comparable 2023 period, mainly due to reductions in rent expense and employee payroll costs[73]. Liquidity and Capital Expenditures - Total liquidity as of April 30, 2024, was $3,321,117, consisting of cash and cash equivalents of $1,171,121 and the fair value of marketable securities of $2,149,996[89]. - The company anticipates incurring an additional $2 million in capital expenditures over the next twelve months ending April 30, 2025[89]. Lease Agreements - In August 2023, a tenant renewed its lease for another five-year term through June 30, 2028, occupying 22,045 square feet[81]. - The company leased approximately 1,600 square feet to a coffee store retailer for ten years, with renovation costs expected to be around $1,000,000[83]. - The lease for Jamaica Avenue at 169th Street has been extended to May 31, 2035, with four additional five-year options available, potentially extending the lease to May 31, 2050[95]. - Monthly lease payments for 504-506 Fulton Street have been modified to increase from $30,188 to $34,716 starting May 1, 2026, through April 30, 2031[95]. Debt and Financing - The Company has fixed-rate debt amounting to $4,223,243 as of April 30, 2024, which mitigates market risk related to interest rate changes[99]. - The Company plans to secure an additional line of credit with Weinstein Enterprises, Inc. if needed[89]. - The Company does not utilize derivative financial instruments, maintaining a straightforward approach to financing[99]. Risks and Uncertainties - The Company faces various risks including economic growth fluctuations, credit availability, and increasing competition, which could impact future performance[96]. - The Company is subject to risks from regulatory changes, lease cancellations, and litigation outcomes that could affect financial results[96]. - The Company’s financial condition is influenced by customer creditworthiness and the recoverability of claims against customers[96]. - The Company’s operations may be affected by external factors such as pandemics and shifts in work practices[96]. - There is uncertainty regarding the exercise of remaining lease extension options beyond May 31, 2035[95]. - The Company has no obligation to update forward-looking statements, emphasizing the importance of reviewing additional disclosures[98].
J.W. Mays(MAYS) - 2024 Q3 - Quarterly Report