J.W. Mays, Inc. (MAYS) - 10-Q Summary
Business Context and Reporting Period
This is a Quarterly Report (Form 10-Q) for J.W. Mays, Inc., a commercial real estate company operating primarily in New York. The report covers the quarterly and six-month periods ended January 31, 2026. The company is classified as a non-accelerated filer and a smaller reporting company. As of March 12, 2026, there were 2,015,780 shares of common stock outstanding.
Key Financial Metrics
| Metric | Six Months Ended Jan 31, 2026 | Six Months Ended Jan 31, 2025 |
|---|---|---|
| Total Revenues | $10,462,896 | $11,182,573 |
| Net Loss | $(842,987) | $(131,024) |
| Loss Per Share (Basic & Diluted) | $(0.42) | $(0.07) |
| Net Cash Provided by Operating Activities | $1,192,140 | $1,419,209 |
| Cash and Cash Equivalents | $434,420 | $1,490,663 |
| Total Assets | $88,383,256 | $88,049,426 |
| Total Liabilities | $36,464,346 | $35,287,529 |
| Mortgage Payable | $3,154,093 | $3,235,561 |
Material Changes vs. Prior Period
- Revenue Decline: Revenues decreased by approximately 6.4% year-over-year for the six-month period. Management attributes this to tenant losses and rent concessions totaling $333,942, partially offset by new leases.
- Increased Net Loss: The net loss widened significantly from $131,024 to $842,987. This was driven by higher real estate operating expenses (increased taxes, insurance, utilities, and a loss on fixed asset disposal) and rent concessions.
- Operating Expenses: Real estate operating expenses rose to $8.2 million from $7.9 million. Administrative expenses decreased slightly to $2.5 million.
- Cash Flow: Net cash provided by operating activities decreased to $1.19 million from $1.42 million. Investing activities consumed $1.39 million, primarily for tenant improvements at 9 Bond Street, Fishkill, Jamaica, and Jowein properties.
Guidance, Outlook, and Risks
- Capital Expenditures: The company anticipates incurring an additional $12 million in capital expenditures over the next twelve months. It currently holds two loan commitments in the final stages of securing to fund these projects.
- Liquidity Concerns: While the company maintains a positive relationship with its lender, its only mortgage ($3.15 million) contains a balloon payment provision allowing the bank to demand full repayment at any time through April 1, 2040. Management notes this impacts financial ratios and short-term liquidity perception.
- Related Party Transactions: The company leases three properties from Weinstein Enterprises, Inc., an affiliate of the Chairman of the Board. In August 2025, the company exercised an option to extend the Jamaica Avenue lease through May 31, 2040.
- Risk Factors: Key risks include the ability to secure additional financing, changes in the commercial real estate market, tenant concentration (three tenants accounted for 37.43% of revenue in the last six months), and potential lease cancellations.
Investor Verification Checklist
- Financing Status: Verify the final closing of the two loan commitments mentioned to fund the anticipated $12 million in capital expenditures.
- Mortgage Terms: Confirm the bank's stance on the balloon payment clause and any potential acceleration of the $3.15 million mortgage.
- Tenant Concentration: Monitor the financial health of the top three tenants, who represent over one-third of rental revenue.
- Rent Concessions: Assess the long-term impact of the $333,942 in rent concessions granted during the period on future profitability.
- Capital Projects: Track the completion and ROI of the $1.39 million in tenant improvements and architectural work completed in the first half of the fiscal year.