Business Context and Reporting Period
Company: J.W. Mays, Inc. (MAYS)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended July 31, 2025
Business Overview: The Company operates a portfolio of commercial real estate properties primarily in New York (Brooklyn, Jamaica, Fishkill, Levittown, Massapequa) and Ohio (Circleville). Properties include retail, office, warehouse, and distribution facilities. The Company employs 28 full-time employees, with approximately 21% covered by a union contract expiring November 30, 2025.
Key Financial Metrics
Note: The provided text incorporates the Consolidated Financial Statements by reference and does not contain the specific numerical values for total revenue, net income, cash flow, or debt balances for the fiscal year ended July 31, 2025. The following metrics are derived from property-level disclosures within the text.
- Revenue Sources: Rental income from long-term leases. Specific annual rent figures are disclosed for individual properties (e.g., Brooklyn Fulton Street: $7,461,079; Jamaica Avenue: $5,804,327).
- Property Valuation (Net Carrying Value as of July 31, 2025):
- Brooklyn (Fulton St): $7,333,896
- Brooklyn (Jowein): $2,071,445
- Jamaica: $3,523,231
- Fishkill: $6,432,755
- Circleville: $82,647
- Debt/Liquidity: The Fishkill building is subject to a mortgage. The filing text does not provide total debt balances or liquidity ratios.
- Dividends: No cash dividends were declared during the fiscal year; the Company plans to retain earnings.
- Accounting Fees (Fiscal 2025): Total fees paid to Prager Metis CPAs, LLC were $263,578.
Material Changes and Operational Activity
The Company experienced significant lease activity and tenant changes during the fiscal year and subsequent period through September 2025:
- Lease Terminations and Vacancies:
- Brooklyn (Fulton St): Loss of approximately $120,000 annual rent (March 2025 termination) and $142,000 annual rent (May 2025 non-renewal).
- Brooklyn (Jowein): Loss of approximately $885,000 annual rent due to non-renewals in May 2025.
- Jamaica: Loss of approximately $64,000 annual rent (June 2025 vacancy).
- New Leases and Expansions:
- Brooklyn (Fulton St): Leased 2,800 sq. ft. for $216,000 annual rent (commencing Oct 2025); tenant expansion adding $2,400 annual rent.
- Brooklyn (Jowein): Leased 5,500 sq. ft. retail space ($15,000/month); tenant expansion adding $12,087/month.
- Jamaica: Leased 6,761 sq. ft. for $135,220 annual rent; tenant expansion adding $5,500/month.
- Massapequa: Leased 20,000 sq. ft. retail space ($4,500/month increasing to $5,500).
- Circleville: Tenant expanded lease by 84,000 sq. ft., increasing annual base rent to $877,440.
- Rent Concessions: Granted concessions totaling $25,000/month (Feb-July 2025) and $40,000/month (Aug 2025-Jan 2026) to a Brooklyn tenant, plus a $54,825 receivable deferral.
- Ownership Changes: Weinstein Enterprises, Inc. purchased a portion of the 508 Fulton Street property in December 2024; the Company began paying rent to this new landlord in January 2025.
Guidance, Risks, and Management Commentary
Outlook and Strategy: Management emphasizes tenant retention and aggressive marketing of available space to governmental, medical, industrial, and educational institutions. The Company intends to negotiate renewals for expiring leases provided tenants maintain adequate finances.
Risk Factors:
- Market Conditions: Risks include high interest rates, reduced liquidity for smaller businesses, and declining demand for office space due to remote work trends.
- Tenant Concentration: Several properties have tenants occupying over 10% of rentable square footage (e.g., a department store at Fulton St occupying 20.60%).
- Environmental and Regulatory: Potential liability for hazardous materials in older properties and increasing compliance costs.
- Cybersecurity: Reliance on third-party service providers for IT and financial systems; no material cybersecurity incidents reported as of the filing date.
- Ownership Structure: A controlling shareholder group may vote in ways that do not coincide with other shareholders' interests.
Legal Proceedings: The Company is subject to ordinary course litigation (contractual disputes, personal injury claims). Management believes resolution will not have a material adverse effect.
Investor Verification Checklist
- Financial Statements: Verify total revenue, net income, and cash flow figures in the "2025 Annual Report to Shareholders" (incorporated by reference), as these specific totals are not in the 10-K text provided.
- Debt Obligations: Review the specific terms and balances of the mortgage on the Fishkill property and any other indebtedness in the Notes to Consolidated Financial Statements.
- Occupancy Rates: Confirm current occupancy rates for the Brooklyn and Jamaica properties following the reported lease terminations and new signings.
- Tenant Creditworthiness: Assess the financial stability of key tenants, particularly those occupying >10% of space, given the noted risks of high interest rates.
- Related Party Transactions: Review Note 10 of the financial statements regarding the Jamaica property lease with an affiliated company and the Fulton Street property purchase by Weinstein Enterprises.