Business Context and Reporting Period
Company: J.W. Mays, Inc. (MAYS)
Filing Type: Form 10-Q (Quarterly Report)
Reporting Period: Nine months ended April 30, 2026 (Fiscal Year 2026)
Business Overview: The Company operates commercial real estate properties, primarily leasing office and retail space in New York and Ohio. It is classified as a non-accelerated filer and a smaller reporting company.
Key Financial Metrics
| Metric | Nine Months Ended April 30, 2026 |
Nine Months Ended April 30, 2025 |
|---|---|---|
| Total Revenues | $15,777,647 | $16,814,724 |
| Net Income/(Loss) | $(1,059,850) | $(44,240) |
| EPS (Basic & Diluted) | $(0.53) | $(0.02) |
| Operating Cash Flow | $2,633,274 | $3,347,851 |
| Total Assets | $90,221,176 | $88,049,426 |
| Total Liabilities | $38,519,129 | $35,287,529 |
| Cash & Equivalents | $2,110,713 | $2,278,824 |
| Mortgages Payable | $6,131,664 | $3,235,561 |
Material Changes vs. Prior Period
- Revenue Decline: Revenues decreased by approximately $1.04 million (6.2%) year-over-year. Management attributes this primarily to the loss of tenants and rent concessions totaling $544,351, partially offset by rent escalations.
- Increased Net Loss: The net loss widened significantly from $(44,240) to $(1,059,850). This was driven by higher real estate operating expenses (increased taxes, insurance, utilities, and maintenance) and the aforementioned revenue reductions.
- Debt Restructuring: In March 2026, the Company obtained a new $6.2 million mortgage at 7.00% interest to refinance an existing loan and fund capital improvements. This increased total mortgages payable by nearly $3 million.
- Capital Expenditures: Investing cash outflows increased to $4.15 million from $1.72 million, driven by significant tenant improvements at the Fishkill, NY and Jowein, NY properties.
Outlook, Risks, and Unusual Items
- Subsequent Financing: On May 12, 2026, the Company secured an $8.0 million non-revolving line of credit secured by the Fishkill property to fund an expansion project. Approximately $2.0 million was advanced at closing.
- Tenant Volatility: A major tenant at the Jowein building vacated in June 2026, resulting in an estimated rent loss of $243,000. Conversely, the Company secured several new and extended leases, including a 15-year lease for 75,500 sq. ft. at Fishkill effective September 2026.
- Asset Disposal: The Company is actively marketing the 25 Elm Place property in Brooklyn for sale. A potential liability exists regarding the creation of a condominium unit for a loading dock if the property is sold.
- Risk Factors: Key risks include interest rate fluctuations, the ability to secure additional financing, tenant concentration (three tenants accounted for ~37% of revenue), and the impact of remote work trends on commercial leasing.
Investor Verification Checklist
- Debt Service Coverage: Verify the Company's ability to service the new $6.2M mortgage (7.00% rate) and the subsequent $8.0M line of credit given the current net loss.
- Tenant Concentration: Assess the impact of the recent vacancy at the Jowein building and the reliance on top tenants for nearly 40% of revenue.
- Capital Expenditure Needs: Confirm the timeline and funding sources for the anticipated $7.8 million in capital expenditures over the next 12 months.
- Related Party Leases: Review the terms of leases with Weinstein Enterprises (affiliated with the Chairman), which represent a significant portion of operating lease liabilities.
- Asset Sale Contingencies: Monitor the status of the 25 Elm Place sale and any potential costs associated with the loading dock condominium requirement.