Business Context and Reporting Period
Company: J. W. Mays, Inc.
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended July 31, 1999
Business Overview: The Company operates a portfolio of commercial real estate properties, primarily in New York and Ohio. It discontinued its department store business in 1989 and focuses on leasing real estate. The Company employs approximately 31 people, with 19% covered by a union contract.
Key Financial Metrics
Note: Specific revenue, profit, cash flow, and margin figures are incorporated by reference from the Annual Report to Shareholders and are not explicitly detailed in the provided text. The following metrics are derived from the provided schedules and property descriptions.
- Real Estate Investment: Total investment in real estate was $50,621,497 as of July 31, 1999.
- Accumulated Depreciation: Total accumulated depreciation on real estate was $22,035,880.
- Net Carrying Value: The net carrying value of the real estate portfolio is approximately $28.6 million (calculated as Investment less Accumulated Depreciation).
- Debt and Encumbrances: Total encumbrances (mortgages) on real estate properties listed in Schedule III are $7,836,644. Mortgaged properties include the Jowein Building, Jamaica Building, Fishkill property, Ohio property, and a portion of the former Brooklyn store.
- Liquidity and Market Value: The aggregate market value of voting stock held by non-affiliates was approximately $3,880,806 as of September 24, 1999. There were 2,135,780 shares of common stock outstanding.
- Valuation Allowances: Allowance for net unrealized gains/losses on marketable securities was $206,998. Deferred income tax asset valuation allowance was $9,171.
Material Changes and Property Status
The filing details the status of eight primary properties. Key observations regarding occupancy and changes include:
- Brooklyn (Fulton/Bond): Occupancy rate was 31.57% for the year ended July 31, 1999. One major tenant occupies 26.11% of rentable space.
- Brooklyn (Jowein Building): Approximately 50% owned, 50% leased. Occupancy rate was 65.19%. Approximately 110,000 square feet were available for lease.
- Jamaica, NY: Occupancy rate was 62.34%. Approximately 83,000 square feet were available for lease. Renovations for office space were completed in 1997-1998.
- Fishkill, NY: Occupancy rate dropped significantly to 12.28% for the year ended July 31, 1999. Approximately 186,000 square feet were available for lease.
- Levittown, NY: 100% occupied by a single tenant (game room/fast food).
- Massapequa, NY: 100% occupied (sub-leased to a gas station and a bank). The Company does not own this property.
- Circleville, OH: 100% occupied by a single tenant (warehouse/distribution).
Outlook, Risks, and Management Commentary
- Legal Proceedings: Various lawsuits and claims are pending. Management believes the resolution of these matters will not have a material adverse effect on the financial statements.
- Improvement Plans: Limited capital improvement plans are noted, including a new lobby entrance in the Brooklyn (Bond Street) building, facade renovation in Jamaica, and HVAC replacement in Fishkill.
- Lease Expirations: The portfolio contains long-term leases with renewal options extending as far as 2073. However, significant vacancy exists in the Fishkill and Jamaica properties.
- Accounting: No disagreements with accountants regarding financial disclosure. The independent auditors (D'Arcangelo & Co., LLP) issued an unqualified opinion on the financial statements.
Investor Verification Checklist
- Revenue and Profitability: Verify total rental income, operating expenses, and net income in the "Annual Report to Shareholders" (incorporated by reference), as these figures are not present in the 10-K text.
- Vacancy Rates: Investigate the strategy to fill the 186,000 sq. ft. vacancy in Fishkill and 83,000 sq. ft. in Jamaica, which represent significant portions of the portfolio.
- Debt Service: Review the specific terms and interest rates of the $7.8 million in encumbrances to assess liquidity risks.
- Tenant Concentration: Confirm the financial stability of major tenants, including the NYC agency in the Jowein Building (31.19% of space) and the department store in Jamaica (27.50% of space).
- Market Value: Compare the $3.88 million aggregate market value of non-affiliate stock against the net asset value of the real estate portfolio.