Business Context and Reporting Period
Company: J. W. Mays, Inc.
Filing Type: Form 10-K (Annual Report)
Period Ended: July 31, 2001
Business Overview: The Company operates a portfolio of commercial real estate properties in New York and Ohio. It discontinued its department store business in 1989 and now focuses exclusively on leasing real estate. The Company employs approximately 29 people, with 17% 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.
- Real Estate Assets: Total gross carrying value of real estate and improvements is $55,542,713 as of July 31, 2001.
- Accumulated Depreciation: $24,017,932 as of July 31, 2001.
- Net Real Estate Value: Approximately $31.5 million (Gross less Accumulated Depreciation).
- Encumbrances (Mortgages): Total encumbrances on real estate properties are $8,299,844.
- Marketable Securities: Allowance for net unrealized gains/losses on marketable securities was $780,878 at period end.
- Stock Information: As of September 21, 2001, there were 2,033,280 shares of common stock outstanding. The aggregate market value of voting stock held by nonaffiliates was approximately $5,218,144.
Material Changes and Property Status
The filing details specific occupancy and lease status for eight major properties. Key observations include:
- Brooklyn (Fulton/Bond): One major tenant occupies 26.11% of rentable space; lease expires April 30, 2011. A lease for 1/3 of the premises expired in January 2001 and is currently month-to-month.
- Brooklyn (Jowein Building): Approximately 100,000 square feet is available for lease. A NYC agency tenant occupies 33.33% of rentable space; lease expires April 29, 2010.
- Jamaica, NY: Occupancy rate improved to 80.34% for the year ended July 31, 2001. A new tenant commenced occupancy in May 2001 in 42,250 sq. ft. of renovated office space. Approximately 27,000 sq. ft. remains available.
- Fishkill, NY: Occupancy remains low at 12.28%. Approximately 177,000 square feet is available for lease.
- Levittown, NY: 100% occupied by a single tenant (game room/fast food) through September 30, 2004.
- Massapequa, NY: 100% occupied (sub-leased to a gas station and bank). The Company does not own this property.
- Circleville, OH: 100% occupied by a manufacturer/warehouse tenant. Lease expires September 30, 2002, with renewal options.
Outlook, Risks, and Contingencies
- Legal Proceedings: Various lawsuits and claims are pending. Management opines that their resolution will not have a material adverse effect on the financial statements.
- Lease Expirations: Significant lease expirations are noted for the Brooklyn Jowein building (2010) and the Brooklyn Fulton/Bond property (2011). The Circleville, OH lease expires in 2002 but includes renewal options.
- Management Commentary: The filing incorporates the full Management's Discussion and Analysis (MD&A) from the Annual Report to Shareholders. No specific forward-looking guidance or unusual items are detailed in the provided text.
- Accounting: No disagreements with accountants were reported. The independent auditors (D'Arcangelo & Co., LLP) issued an unqualified opinion on the financial statements.
Investor Verification Checklist
- Revenue and Profitability: Verify the specific revenue, net income, and cash flow figures in the "Annual Report to Shareholders" (Exhibit 13), as these are not explicitly stated in the 10-K text provided.
- Vacancy Rates: Confirm the current status of the 177,000 sq. ft. vacancy in Fishkill, NY, and the 100,000 sq. ft. vacancy in the Brooklyn Jowein building, as these represent significant unutilized assets.
- Lease Renewals: Monitor the negotiation status of the month-to-month lease at the Brooklyn Fulton/Bond property and the upcoming 2002 expiration of the Circleville, OH lease.
- Debt Service: Review the specific terms and interest rates of the $8.3 million in encumbrances listed in Schedule III to assess liquidity impact.
- Legal Exposure: Review the details of the "various lawsuits and claims" mentioned in Item 3 to ensure they remain non-material.