DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Jul. 31, 2020 | Sep. 07, 2020 | Jan. 31, 2020 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | MAYS J W INC | ||
Entity Central Index Key | 0000054187 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 31, 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity Incorporation State Country Code | NY | ||
Entity File Number | 11-1059070 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 2,015,780 | ||
Entity Public Float | $ 12,202,544 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Property and Equipment-at cost: | ||
Land | $ 6,067,805 | $ 6,067,805 |
Buildings held for leasing: | ||
Buildings, improvements and fixtures | 73,271,398 | 88,247,976 |
Construction in progress | 1,266,723 | 2,325,940 |
Property, Plant and Equipment, Gross | 74,538,121 | 90,573,916 |
Accumulated depreciation | (33,007,989) | (43,512,418) |
Buildings - net | 41,530,132 | 47,061,498 |
Property and equipment-net | 47,597,937 | 53,129,303 |
Cash and cash equivalents | 3,260,135 | 4,117,647 |
Restricted cash | 1,143,666 | 1,146,077 |
Receivables, net | 2,219,946 | 2,070,615 |
Marketable securities | 3,744,905 | 3,580,227 |
Prepaids and other assets | 2,389,582 | 2,169,384 |
Deferred charges, net | 2,986,648 | 2,575,822 |
Operating lease right-of-use assets | 37,077,038 | |
TOTAL ASSETS | 100,419,857 | 68,789,075 |
Liabilities: | ||
Mortgage payable | 8,627,965 | 5,287,162 |
Note payable | 722,726 | |
Accounts payable and accrued expenses | 2,771,540 | 2,915,285 |
Security deposits payable | 809,652 | 882,615 |
Operating lease liabilities | 29,044,966 | |
Deferred income taxes | 4,741,000 | 5,096,000 |
Total liabilities | 46,717,849 | 14,181,062 |
Shareholders Equity: | ||
Common stock, par value $1 each share (shares-5,000,000 authorized; 2,178,297 issued) | 2,178,297 | 2,178,297 |
Additional paid in capital | 3,346,245 | 3,346,245 |
Retained earnings | 49,465,318 | 50,371,323 |
Stockholders' Equity before Treasury Stock | 54,989,860 | 55,895,865 |
Common stock held in treasury, at cost - 162,517 shares at July 31, 2020 and July 31, 2019 | (1,287,852) | (1,287,852) |
Total shareholders' equity | 53,702,008 | 54,608,013 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 100,419,857 | $ 68,789,075 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 31, 2020 | Jul. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,178,297 | 2,178,297 |
Treasury stock, shares | 162,517 | 162,517 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Revenues | ||
Rental income | $ 19,531,846 | $ 21,086,454 |
Recovery of real estate taxes | 53,341 | |
Total revenues | 19,531,846 | 21,139,795 |
Expenses | ||
Real estate operating expenses | 14,024,623 | 11,892,572 |
Administrative and general expenses | 5,085,360 | 5,468,489 |
Depreciation | 1,661,280 | 1,960,994 |
Total expenses | 20,771,263 | 19,322,055 |
Income (loss) from operations | (1,239,417) | 1,817,740 |
Investment income and interest expense | ||
Investment income | 145,561 | 209,020 |
Change in fair value of marketable securities | 35,372 | 278,629 |
Interest expense | (202,521) | (200,588) |
Total investment income and interest expense: | (21,588) | 287,061 |
Income (loss) before provision for income tax | (1,261,005) | 2,104,801 |
Income tax provision (benefit) | (355,000) | 590,000 |
Net income (loss) | $ (906,005) | $ 1,514,801 |
Income (loss) per common share, basic and diluted | $ (0.45) | $ 0.75 |
Dividends per share | ||
Average common shares outstanding, basic and diluted | 2,015,780 | 2,015,780 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid In Capital [Member] | Unrealized Gain on Marketable securities [Member] | Retained Earnings [Member] | Common Stock Held in Treasury [Member] | Total |
Balance at Jul. 31, 2018 | $ 2,178,297 | $ 3,346,245 | $ 487,136 | $ 48,369,386 | $ (1,287,852) | $ 53,093,212 |
Reclassification of unrealized gains on marketable securities to retained earnings | (487,136) | 487,136 | ||||
Net income | 1,514,801 | 1,514,801 | ||||
Balance at Jul. 31, 2019 | 2,178,297 | 3,346,245 | 50,371,323 | (1,287,852) | 54,608,013 | |
Net income | (906,005) | (906,005) | ||||
Balance at Jul. 31, 2020 | $ 2,178,297 | $ 3,346,245 | $ 49,465,318 | $ (1,287,852) | $ 53,702,008 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ (906,005) | $ 1,514,801 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Bad debt expense | 255,060 | |
Provision (benefit) for deferred income tax | (355,000) | 590,000 |
Disposition of property and equipment | 40,992 | |
Net realized and unrealized (gain) on sale of marketable securities | (63,918) | (325,044) |
Depreciation | 1,661,280 | 1,960,994 |
Amortization of deferred charges | 297,887 | 295,926 |
Operating lease expense in excess of cash payments | 1,209,357 | |
Deferred finance costs included in interest expense | 31,991 | 22,877 |
Deferred charges | (708,713) | (1,013,031) |
Changes in Operating Assets and Liabilities: | ||
Receivables | (394,708) | (141,218) |
Prepaids and other assets | (229,881) | (209,460) |
Accounts payable and accrued expenses | 805,160 | 728,481 |
Security deposits payable | (72,963) | (461,056) |
Net cash provided by operating activities | 1,570,539 | 2,963,270 |
Cash Flows From Investing Activities: | ||
Acquisition of property and equipment | (6,361,240) | (4,297,313) |
Marketable securities: | ||
Receipts from sales | 621,161 | 219,744 |
Payments for purchases | (721,921) | (333,099) |
Net cash (used) in investing activities | (6,462,000) | (4,410,668) |
Cash Flows From Financing Activities: | ||
Proceeds from borrowings - mortgage and other debt | 4,866,806 | |
Payments - mortgage and other debt | (603,068) | (168,501) |
Mortgage financing costs paid | (232,200) | |
Net cash provided (used) by financing activities | 4,031,538 | (168,501) |
Net decrease in cash, cash equivalents and restricted cash | (859,923) | (1,615,899) |
Cash, cash equivalents and restricted cash at beginning of year | 5,263,724 | 6,879,623 |
Cash, cash equivalents and restricted cash at end of year | $ 4,403,801 | $ 5,263,724 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization J.W. Mays, Inc. (the Company or Registrant) with executive offices at 9 Bond Street, Brooklyn, New York 11201, operates a number of commercial real estate properties in New York and one building in Ohio. The Companys business was founded in 1924 and incorporated under the laws of the State of New York on July 6, 1927. Principles of Consolidation The consolidated financial statements include the accounts of the Company, a New York corporation and its subsidiaries (J. W. M. Realty Corp. and Dutchess Mall Sewage Plant, Inc.), which are wholly-owned. Material intercompany items have been eliminated in consolidation. The Impact of COVID-19 on Our Results and Operations In late 2019, an outbreak of COVID-19 emerged and by March 11, 2020 was declared a global pandemic by The World Health Organization. Throughout the United States and locally, governments and municipalities instituted measures in an effort to control the spread of COVID-19, including quarantines, shelter-in-place orders, school closings, travel restrictions and the closure of non-essential businesses. By the end of March 2020, the economic impacts became significant for the remainder of the year ending July 31, 2020. Beginning March and April 2020, we experienced an increase in late payments due to the impact of COVID-19 and the related reductions in economic activity from government mandated business disruptions and shelter -in- place orders. The effects of COVID-19 on our tenants have been reflected in an increase in our allowance for credit losses for accounts receivable. In limited circumstances, we have agreed to rent abatements and deferrals for certain tenants. In addition, we experienced volatility in the valuation of our equity investments. Looking ahead, the full impact of COVID-19 on our business is unknown and highly unpredictable. Third and fourth quarter rent collections and increased past due activity may not be indicative of unpaid rents in any future period. Our past results may not be indicative of our future performance and historical trends in revenues, income from operations, net income, earnings per share, cash provided by operating activities, among others, may differ materially. For example, to the extent the pandemic continues to disrupt economic activity nationally and in New York, NY, like other businesses, it could adversely affect our business operations and financial results through prolonged decreases in revenue, credit deterioration of our tenants, depressed economic activity, or declines in capital markets. In addition, many of our expenses are less variable in nature and may not correlate to changes in revenues. The extent of the impact will depend on a number of factors, including the duration and severity of the pandemic; advances in testing, treatment and prevention; and the macroeconomic impact of government measures to contain the spread of the virus and related government stimulus measures. Use of Estimates The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America (GAAP). The preparation of the Companys financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities, incremental borrowing rates and recognition of renewal options for operating lease right-of-use assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation, income tax assets and liabilities, fair value of marketable securities and revenue recognition. Estimates are based on historical experience where applicable or other assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from those estimates under different assumptions or conditions. Restricted Cash Restricted cash primarily consists of cash held in bank accounts for tenant security deposits and other amounts required under certain loan agreements. Marketable Securities Prior to the adoption of ASU 2016-01, the Company categorized marketable securities as either trading, available-for-sale or held-to-maturity at the time of purchase. Trading securities were carried at fair value with unrealized gains and losses included in income. Available-for-sale securities were carried at fair value using quoted prices in active markets for identical assets or liabilities with unrealized gains and losses recorded as a separate component of shareholders equity. Held-to-maturity securities were carried at amortized cost. With the adoption of ASU 2016-01 effective August 1, 2018, equity securities with readily determinable fair values are reported at fair value as marketable securities in the other assets section of the balance sheet. Also, effective August 1, 2018, changes in fair value of marketable securities are recorded in the investment income and interest expense section of the statement of operations. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The Company did not classify any securities as trading or held to maturity during the years ended July 31, 2020 or 2019. The Company follows GAAP which establishes a fair value hierarchy that prioritizes the valuation techniques and creates the following three broad levels, with Level 1 valuation being the highest priority: Level 1 valuation inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date (e.g., equity securities traded on the New York Stock Exchange). Level 2 valuation inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted market prices of similar assets or liabilities in active markets, or quoted market prices for identical or similar assets or liabilities in markets that are not active). Level 3 valuation inputs are unobservable (e.g., an entitys own data) and should be used to measure fair value to the extent that observable inputs are not available. Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used at July 31, 2020 and 2019. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded that the Company has access to. Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission. These funds are required to publish their daily net asset value (NAV) and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. In accordance with the provisions of Fair Value Measurements, the following are the Companys financial assets measured on a recurring basis presented at fair value. Fair value measurements at reporting date using Description July 31, 2020 Level 1 Level 2 Level 3 July 31, 2019 Level 1 Level 2 Level 3 Assets: Marketable securities - available-for-sale $3,744,905 $3,744,905 $ $ $3,580,227 $3,580,227 $ $ Accounts Receivable Generally, rent is due from tenants at the beginning of the month in accordance with terms of each lease. Based upon its periodic assessment of the quality of the receivables, management uses its historical knowledge of the tenants and industry experience to determine whether a reserve or write-off is required. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectibility become known. Collectibility issues include late rent payments, circumstances when a tenant indicates their intention to vacate the property without paying, or when tenant litigation or bankruptcy proceedings are not expected to result in full payment. Management also assesses collectibility by reviewing accounts receivable on an aggregate basis where similar characteristics exist. In determining the amount of the allowance for credit losses, the Company considers historical collectibility based on past due status and a tenants payment history. We also consider current market conditions and reasonable and supportable forecasts of future economic conditions. Our assessment as of July 31, 2020 considered business and market disruptions caused by COVID-19. The continued volatility in market conditions and evolving shifts in credit trends are difficult to predict causing variability and volatility that may have a material impact on our allowance for uncollectible accounts receivables in future periods. As of July 31, 2019, Management determined no allowance for uncollected accounts receivables was considered necessary. As of July 31, 2020, and primarily as a result of the effects of COVID-19, the Company recorded an allowance for uncollectible receivables in the amount of $82,000, as an offset to receivables. Activity in the allowance for uncollectible receivables for each period follows: Allowance for Uncollectible Bad Debt Expense as a Accounts Receivable Reduction to Rent Revenue Year Ended July 31 Year Ended July 31 2020 2019 2020 2019 Beginning balance $ $ $ $ Charge-offs prior to recording allowance April 30, 2020 40,292 118,238 Initial recording of allowance, April 30, 2020 556,000 556,000 Charge-offs (132,768 ) Recoveries (91,840 ) (91,840 ) COVID 19 rent abatements reclassed to reduce rental income (249,392 ) (249,392 ) Ending Balance $ 82,000 $ $ 255,060 $ 118,238 Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of improvements to leased property is calculated over the life of the lease. Lives used to determine depreciation and amortization are generally as follows: Buildings and improvements 18-40 years Improvements to leased property 3-10 years Fixtures and equipment 7-12 years Other 3-5 years Maintenance, repairs, renewals and improvements of a non-permanent nature are charged to expense when incurred. Expenditures for additions and major renewals or improvements are capitalized along with the associated interest cost during construction. The cost of assets sold or retired, and the accumulated depreciation or amortization thereon are eliminated from the respective accounts in the year of disposal, and the resulting gain or loss is credited or charged to income. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the assets estimated useful life. The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. At July 31, 2020 and 2019, the Company has determined there was no impairment of its property and equipment. Deferred Charges Deferred charges consist principally of costs incurred in connection with the leasing of property to tenants. Such costs are amortized over the related lease periods, ranging from 1 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed. Leases Lessor Revenue Recognition The Company accounts for revenue in accordance with Accounting Standards Update (ASU) 2014-09 (Topic 606) Revenue from Contracts with Customers. Rental income is recognized from tenants under executed leases no later than on an established date or on an earlier date if the tenant should commence conducting business. Unbilled receivables are included in accounts receivable and represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, are recognized in the period when the lease modification is signed. At the time of the lease modification, we assess the realizability of any accrued but unpaid rent and amounts that had been recognized as revenue in prior periods. As lessor, we have elected to combine the lease components (base rent), non-lease components (reimbursements of common area maintenance expenses) and reimbursements of real estate taxes and account for the components as a single lease component in accordance with ASC 842. If the amounts are not determined to be realizable, the accrued but unpaid rent is written off. Accounts receivable are recognized in accordance with lease agreements at its net realizable value. Rental payments received in advance are deferred until earned. Leases Lessee The Company determines if an arrangement is a lease at inception. With the adoption of ASC 842, operating leases are included in operating lease right-of-use assets and operating lease liabilities on the Companys balance sheet. Operating lease right-of-use assets represent the Companys right to use an underlying asset for the lease term and lease liabilities represent the Companys obligation to make payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Companys leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Companys lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Taxes Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Companys assets and liabilities. Deferred tax assets result principally from the recording of certain accruals, reserves and net operating loss carry forwards which currently are not deductible for tax purposes. Deferred tax liabilities result principally from temporary differences in the recognition of unrealized gains and losses from certain investments and from the use, for tax purposes, of accelerated depreciation. Deferred tax assets and liabilities are offset for each jurisdiction and are presented net on the balance sheet. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Actual income taxes could vary from these estimates due to future changes in income tax law or results from the final review of tax returns by federal, state or city tax authorities. Financial statement effects on tax positions are recognized in the period in which it is more likely than not that the position will be sustained upon examination, the position is effectively settled or when the statute of limitations to challenge the position has expired. Interest and penalties, if any, related to unrecognized tax benefits are recorded as interest expense and administrative and general expenses, respectively. Income Per Share of Common Stock Income per share has been computed by dividing net income for the year by the weighted average number of shares of common stock outstanding during the year, adjusted for the purchase of treasury stock. Shares used in computing income per share were 2,015,780 in fiscal years 2020 and 2019. Reclassification The consolidated financial statements for prior years reflect certain reclassifications to conform with classifications adopted in the year ended July 31, 2020. These reclassifications have no effect on net income or loss as previously reported. As of July 31, 2020, the Company changed its balance sheet presentation from classified to unclassified to more generally conform with norms in the real estate industry. Many of the prior year reclassifications relate to this change in presentation. Recently adopted accounting standards: In May 2014, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) 2014-09 Revenue from Contracts with Customers (ASU 2014-09) establishing ASC Topic 606 Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting in fiscal years that begin after December 15, 2016. ASU 2015-14 extended the implementation date for fiscal years beginning after December 31, 2017. Subsequent to the issuance of ASU 2014-09, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The additional ASUs clarified certain provisions of ASU 2014-09 in response to recommendations from the Transition Resource Group established by the FASB and have the same effective date and transition requirements as ASU 2014-09. We adopted these standards effective August 1, 2018 using the modified retrospective approach, which allows us to apply the new standard to all existing contracts not yet completed as of the effective date and record a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, however there was no cumulative-effect required to be recognized in our retained earnings as the date of adoption. The adoption of this standard did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU No. 2016-01 is effective for interim and annual periods beginning after December 15, 2017. We adopted this standard effective August 1, 2018 and recorded a cumulative effect adjustment to increase opening retained earnings at August 1, 2018 by $487,136 as required for equity investments recorded at fair value, formerly available-for-sale securities. In November 2016, the FASB issued ASU 2016-18, Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this standard effective August 1, 2018 with retrospective application to our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 is intended to increase transparency and comparability among organizations in accounting for leasing arrangements. This guidance establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, which provides amendments and clarification to ASU 2016-12 based on the FASBs interaction with stakeholders. In July 2018, the FASB issued ASU No. 2018-11 Leases (Topic 842): Targeted Improvements, which amends Leases (Topic 842) to (i) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (ii) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842) Narrow-Scope Improvement for Lessors, which clarifies how to apply the leases standard when accounting for sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and non-lease components. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) Codification Improvements, which provides amendments for issues brought to the Boards attention through its interactions with stakeholders. The issues identified are as follows: (1) Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers, (2) Presentation on the statement of cash flows-sales-type and direct financing leases, and (3) Transition disclosures related to Topic 250, Accounting Changes and Error Corrections. These standards are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new standards were adopted by the Company for the fiscal year beginning August 1, 2019. Upon adoption of Topic 842, the Company elected the following practical expedients: 1. The Company applied the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the initial period of adoption. Upon adoption on August 1, 2019, the Company did not have an adjustment to opening retained earnings. 2. As lessee and lessor, the Company has elected not to reassess lease classifications and all leases will continue to be classified as operating leases under the new standard. As a result of the adoption of the new lease accounting guidance, the Company recognized on August 1, 2019: ● Operating lease right-of-use assets of $27.1 million. ● Operating lease liabilities of approximately $17.9 million, based on the net present value of remaining minimum rental payments, discounted using the Companys incremental borrowing rate of 3.88%. ● The initial recording of operating lease right-of-use assets of $27.1 million includes adjustments of approximately $10.2 million primarily relating to building and improvements, net of accumulated depreciation, required pursuant to a ground lease with an affiliate, principally owned by a director of the Company (landlord). Upon lease termination in 2030, the building and all improvements will be turned over to the landlord as property owner. ● The initial operating lease liability of $17.9 million includes an adjustment of remaining accrued rent of approximately $.95 million. The Companys lessor accounting remains similar under Topic 842 but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). Upon adoption of the lease standards on August 1, 2019, changes in accounting for the Companys lease revenue as lessor were not significant. In April 2020, the FASB issued a Staff Q&A on accounting for leases during the COVID-19 pandemic, focused on the application of lease guidance in ASC Topic 842, Leases (ASC 842). The Q&A states that it would be acceptable to make a policy election regarding rent concessions resulting from COVID-19, which would not require entities to account for these rent concessions as lease modifications under certain conditions. Entities making the election will continue to recognize rental revenue on a straight-line basis for qualifying concessions. Rent abatements would be recognized as reductions to revenue during the period in which they were granted. Rent deferrals would result in an increase to accounts receivable during the deferral period with no impact on rental revenue recognition. The Company elected this policy for the year ended July 31, 2020. Rent abatements and deferrals resulting from COVID-19 aggregated $433,517 and $459,429, respectively, for the year ending July 31, 2020. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Jul. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | 2. MARKETABLE SECURITIES: As of July 31, 2020 and 2019, the Companys marketable securities were classified as follows: July 31, 2020 July 31, 2019 Gross Gross Gross Gross Unrealized Unrealized Fair Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Non-current: $ 1,077,493 $ 297,064 $ $ 1,374,557 $ 845,306 $ 264,425 $ $ 1,109,731 1,553,275 823,010 5,937 2,370,348 1,656,156 814,340 2,470,496 $ 2,630,768 $ 1,120,074 $ 5,937 $ 3,744,905 $ 2,501,462 $ 1,078,765 $ $ 3,580,227 Investment income for the years ended July 31, 2020 and 2019 consists of the following: 2020 2019 Interest income $ 20,446 $ 56,918 Dividend income 96,569 105,687 Gain on sale of marketable securities 28,546 46,415 $ 145,561 $ 209,020 |
LONG-TERM DEBT-MORTGAGE
LONG-TERM DEBT-MORTGAGE | 12 Months Ended |
Jul. 31, 2020 | |
LONG-TERM DEBT - MORTGAGES AND TERM LOAN [Abstract] | |
LONG-TERM DEBT-MORTGAGE | 3. LONG-TERM DEBTMORTGAGE: Years Ended July 31, Current Annual Final Interest Payment Rate Date 2020 2019 Mortgage: 4.375 % 12/1/2024 $ 4,829,832 $ 5,298,610 3.980 % 4/1/2025 3,967,100 168,967 11,448 $ 8,627,965 $ 5,287,162 (1) In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street building in Brooklyn, New York. (2) In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years. Maturities of long-term mortgage and term loan payable outstanding at July 31, 2020 are as follows: Year Ended July 31: Amount 2021 $ 1,147,300 2022 1,198,600 2023 1,252,196 2024 1,308,070 2025 3,890,766 Subtotal 8,796,932 Deferred financing costs 168,967 Total $ 8,627,965 The carrying value of the property collateralizing the above debt is $33,409,210 at July 31, 2020. |
NOTE PAYABLE
NOTE PAYABLE | 12 Months Ended |
Jul. 31, 2020 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE | 4. NOTE PAYABLE: In April 2020, the Company obtained a $722,726 loan, with an interest rate of .98% per annum, issued by a bank through the Small Business Administrations (SBA) Paycheck Protection Program (PPP) under Division A. Title I of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). PPP provides forgiveness of loan proceeds used for qualified and documented payroll costs, mortgage interest payments, rent payments and utilities, if less than 40% of such proceeds are used for non-payroll costs. PPP loan payments are deferred until the SBA remits the Companys loan forgiveness to the lender, or July 26, 2021 if the Company does not apply for forgiveness of loan proceeds. Thereafter, payments aggregating $722,726 will be due over a four-year period. The Company expects to apply for loan forgiveness as soon as lender application forms become available. After the SBA remits the Companys loan forgiveness to the lender, such proceeds expected in the first quarter of the year ending July 31, 2021 will be recorded as a reduction of the note payable and extinguishment of debt income. Currently, it is expected such proceeds will be excluded from taxable income when received. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
OPERATING LEASES | 5. OPERATING LEASES: Lessor The Company leases office and retail space to tenants under operating leases in commercial buildings. The rental terms range from approximately 5 to 49 years. The leases provide for the payment of fixed base rent payable monthly in advance as well as reimbursements of real estate taxes and common area costs. The Company has elected to account for lease revenues and the reimbursements of common area costs as a single component included as rental income in our condensed consolidated statements of operations and retained earnings. The following table disaggregates the Companys revenues by lease and non-lease components: Years Ended July 31, 2020 2019 Base rent - fixed $ 17,392,398 $ 19,126,372 Reimbursements of common area costs 781,119 769,767 Non-lease components (real estate taxes) 1,358,329 1,190,315 Rental income $ 19,531,846 $ 21,086,454 Rental income for each of the fiscal years 2020 and 2019 is as follows: Years Ended July 31, 2020 2019 Minimum rentals $ 10,940,491 $ 12,448,374 6,451,907 6,677,998 17,392,398 19,126,372 Contingent rentals 1,454,827 1,422,990 684,621 537,092 2,139,448 1,960,082 $ 19,531,846 $ 21,086,454 Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows: As of July 31, 2020 Company Owned Leased Fiscal Year Property Property Total 2021 $ 10,114,252 $ 5,509,242 $ 15,623,494 2022 8,037,688 3,938,533 11,976,221 2023 7,212,832 3,170,131 10,382,963 2024 5,401,738 2,886,515 8,288,253 2025 5,219,923 2,501,112 7,721,035 After 2025 22,733,655 9,486,990 32,220,645 $ 58,720,088 $ 27,492,523 $ 86,212,611 As of July 31, 2019 Company Owned Leased Fiscal Year Property Property Total 2020 $ 10,038,712 $ 6,120,283 $ 16,158,995 2021 9,521,380 5,009,044 14,530,424 2022 7,878,165 4,039,069 11,917,234 2023 7,399,288 3,270,666 10,669,954 2024 6,483,940 2,987,050 9,470,990 After 2024 52,632,826 14,842,540 67,475,366 $ 93,954,311 $ 36,268,652 $ 130,222,963 Lessee The Companys real estate operations include leased properties under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2073, including options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. In April 2020, four of the Companys property leases were extended. The effect of these lease extensions on the measurement of operating lease right-of-use assets, liabilities and rent expense follows: Operating Operating Monthly Lease Right- Lease Rent of-Use-Asset Liability Expense Upon initial adoption, August 1, 2019 $ 27,104,937 $ 17,863,507 $ 249,955 After various lease extensions through April 30, 2020 $ 37,698,819 $ 29,326,365 $ 277,570 Operating lease costs for leased real property was exceeded by sublease rental income from the Companys real estate operations as follows: Years Ended July 31, 2020 2019 Sublease income $ 7,136,528 $ 7,215,090 Operating lease cost (4,517,273 ) (3,150,327 ) Excess of sublease income over lease cost $ 2,619,255 $ 4,064,763 The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of July 31, 2020: Operating July 31 Leases 2021 $ 2,024,009 2022 2,116,363 2023 2,132,945 2024 2,150,129 2025 2,167,284 Thereafter 27,551,301 Total undiscounted cash flows 38,142,031 Less: present value discount (9,097,065 ) Total Lease Liabilities $ 29,044,966 Other information: Operating cash flows from operating leases $ 1,931,545 Weighted-average remaining lease term - operating leases 18.05 years Weighted-average discount rate - operating leases 2.89% The following table represents future minimum lease payments under non-cancelable operating leases at July 31, 2019 as presented in the Companys Annual Report on Form 10-K: Operating July 31 Leases 2020 $ 1,897,318 2021 1,941,494 2022 2,057,814 2023 2,072,000 2024 2,086,697 After 2024 11,701,293 Total required* $ 21,756,616 * Minimum payments have not been reduced by minimum sublease rentals of $27,492,523 under operating leases due in the future under non-cancelable leases. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 6. INCOME TAX: Income taxes provided for the years ended July 31, 2020 and 2019 consist of the following: 2020 2019 Current: Federal $ - $ - Deferred taxes (benefit): Federal (247,000 ) 456,000 State (108,000 ) 134,000 Income tax provision (benefit) $ (355,000 ) $ 590,000 Taxes provided for the years ended July 31, 2020 and 2019 differ from amounts which would result from applying the federal statutory tax rate to pre-tax income, as follows: 2020 2019 Income (loss) before income taxes $ (1,261,005) $ 2,104,801 Other-net (16,158) (17,397) Adjusted pre-tax income (loss) $ (1,277,163) $ 2,087,404 Statutory rate 21.00% 21.00% Income tax provision (benefit) at statutory rate $ (268,204) $ 438,355 State deferred income taxes (benefit) (108,000) 134,000 Other-net 21,204 17,645 Income tax provision (benefit) $ (355,000) $ 590,000 The Company has a federal net operating loss carryforward approximating $8,404,000 and $4,002,000 as of July 31, 2020 and July 31, 2019, respectively, available to offset future taxable income. As of July 31, 2020 and 2019, the Company had unused state and city net operating loss carryforwards of approximately $10,526,000 and $10,170,000, for state, respectively, and $8,274,000 for city, available to offset future taxable income. The net operating loss carryforwards will begin to expire, if not used, in 2035. New York State and New York City taxes are calculated using the higher of taxes based on income or the respective capital-based franchise taxes. Beginning with the Companys tax year ended July 31, 2016, changes in the law required the state capital-based tax will be phased out over a 7-year period. New York City taxes will be based on capital for the foreseeable future. Capital-based franchise taxes are recorded to administrative and general expense. State tax amounts in excess of the capital-based franchise taxes are recorded to income tax expenses. Due to both the application of the capital-based tax and due to the possible absence of city taxable income, the Company does not record city deferred taxes. The Companys federal tax returns have been audited through the year ended July 31, 2013 and the New York State and New York City tax returns have been audited through July 31, 2012. Generally, tax returns filed are subject to audit for three years by the appropriate taxing jurisdictions. The statute of limitations in each of the state jurisdictions in which the Company operates remain open until the years are settled for federal income tax purposes, at which time amended state income tax returns reflecting all federal income tax adjustments are filed. As of July 31, 2020, there were no income tax audits in progress that would have a material impact on the consolidated financial statements. Significant components of the Companys deferred tax assets and liabilities as of July 31, 2020 and 2019 are a result of temporary differences related to the items described as follows: 2020 2019 Deferred Deferred Deferred Deferred Tax Assets Tax Liabilities Tax Assets Tax Liabilities Rental income received in advance $ 175,145 $ $ 214,793 $ Anticipated PPP loan expenses to be forgiven 199,390 Operating lease liabilities 8,013,099 Federal net operating loss carryforward 1,764,769 840,122 State net operating loss carryforward 693,541 670,997 Unbilled receivables 412,343 460,328 Property and equipment 4,671,246 6,362,708 Unrealized gain on marketable securities 307,375 297,964 Operating lease right-of-use assets 10,229,036 Other 33,056 299,088 $ 10,879,000 $ 15,620,000 $ 2,025,000 $ 7,121,000 Net deferred tax liability $ 4,741,000 $ 5,096,000 Management periodically assesses the realization of its net deferred tax assets by evaluating all available evidence, both positive and negative, associated with the Company and determining whether, based on the weight of that associated evidence, a valuation allowance for the deferred tax assets is needed. Based on this analysis, management has determined that it is more likely than not that future taxable income will be sufficient to fully utilize the federal and state deferred tax assets at July 31, 2020. Components of the deferred tax provision (benefit) for the years ended July 31, 2020 and 2019 consist of the following: 2020 2019 Tax depreciation exceeding book depreciation $ (1,691,703 ) $ 446,551 Lease expense per book in excess of cash paid 2,477,725 Federal net operating loss carryforward (924,647 ) 11,053 State net operating loss carryforward (22,687 ) (5,063 ) Decrease (increase) of rental income received in advance 39,637 (39,818 ) Increase in anticipated PPP loan expenses to be forgiven (199,390 ) (Decrease) in unbilled receivables (47,962 ) (2,358 ) (Decrease) in average rent payable (25,186 ) Litigation deposit due from contractor 103,862 Other 14,027 100,959 $ (355,000 ) $ 590,000 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Jul. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES: Payroll and other accrued liabilities for the fiscal years ended July 31, 2020 and 2019 consist of the following: 2020 2019 Accounts payable $ 68,076 $ 39,811 Payroll 130,778 131,095 Interest 33,576 16,152 Professional fees 166,000 155,600 Rents received in advance 643,628 783,678 Utilities 7,900 13,400 Brokers commissions 1,115,743 728,322 Construction costs 576,131 66,829 Other 29,708 980,398 Total $ 2,771,540 $ 2,915,285 |
EMPLOYEES' RETIREMENT PLANS
EMPLOYEES' RETIREMENT PLANS | 12 Months Ended |
Jul. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEES' RETIREMENT PLANS | 8. EMPLOYEES RETIREMENT PLANS: The Company sponsors a non-contributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $424,401 and $427,420 as contributions to the Plan for fiscal years 2020 and 2019, respectively. MULTI-EMPLOYER PLAN: The Company contributes to a union sponsored multi-employer pension plan covering its union employees. The Company contributions to the pension plan for the years ended July 31, 2020 and 2019 were $59,434 and $61,588, respectively. Contributions and costs are determined in accordance with the provisions of negotiated labor contracts or terms of the plans. The Company also contributes to union sponsored health benefit plans. CONTINGENT LIABILITY FOR PENSION PLANS: Information as to the Companys portion of accumulated plan benefits and plan assets is not reported separately by the pension plan. Under the Employee Retirement Income Security Act, upon withdrawal from a multi-employer benefit plan, an employer is required to continue to pay its proportionate share of the plans unfunded vested benefits, if any. Any liability under this provision cannot be determined: however, the Company has not made a decision to withdraw from the plan. Information for contributing employers participation in the multi-employer plan: United Food and Commercial Workers Legal name of Plan: Local 888 Pension Fund Employer identification number: 13-6367793 Plan number: 001 Date of most recent Form 5500: December 31, 2018 Certified zone status: Critical and declining status Status determination date: January 1, 2019 Plan used extended amortization provisions in status calculation: Yes Minimum required contribution: Yes Employer contributing greater than 5% of Plan contributions for year ended December 31, 2018: Yes Rehabilitation plan implemented: Yes Employer subject to surcharge: Yes Contract expiration date: November 30, 2022 For the plan years 2019-2020, under the pension funds rehabilitation plan, the Company agreed to pay a minimum contribution rate equal to 9.1% of the prior year total contribution rate. The Company has 29 employees and has a contract, expiring November 30, 2022, with a union covering rates of pay, hours of employment and other conditions of employment for approximately 21% of its employees. The Company considers that its labor relations with its employees and union are good. |
CASH FLOW INFORMATION
CASH FLOW INFORMATION | 12 Months Ended |
Jul. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
CASH FLOW INFORMATION | 9. CASH FLOW INFORMATION: For purposes of reporting cash flows, the Company considers cash equivalents to consist of short-term highly liquid investments with maturities of three months or less, which are readily convertible into cash. The following is a reconciliation of the Companys cash and cash equivalents and restricted cash to the total presented on the consolidated statement of cash flows: July 31, 2020 2019 Cash and cash equivalents $ 3,260,135 $ 4,117,647 Restricted cash 1,143,666 1,146,077 $ 4,403,801 $ 5,263,724 Amounts in restricted cash primarily consist of cash held in bank accounts for tenant security deposits, amounts set aside in accordance with certain loan agreements, and security deposits with landlords and utility companies. Supplemental disclosure: July 31, 2020 2019 Cash Flow Information Interest paid, net of capitalized interest of $112,074 (2020), and $77,880 (2019) $ 153,107 $ 115,657 Income tax (refunded) (23,041 ) Non-cash information Recognition of operating lease right-of-use assets $ 39,464,411 $ Recognition of operating lease liabilities 30,222,981 Mortgage refinance 5,255,920 |
FINANCIAL INSTRUMENTS AND CREDI
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS | 12 Months Ended |
Jul. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS | 10. FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS: The following disclosure of estimated fair value was determined by the Company using available market information and appropriate valuation methods. Considerable judgment is necessary to develop estimates of fair value. The estimates presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The Company estimates the fair value of its financial instruments using the following methods and assumptions: (i) quoted market prices, when available, are used to estimate the fair value of investments in marketable debt and equity securities; (ii) discounted cash flow analyses are used to estimate the fair value of long-term debt, using the Companys estimate of current interest rates for similar debt; and (iii) carrying amounts in the balance sheet approximate fair value for cash and cash equivalents, restricted cash, and tenant security deposits due to their high liquidity. July 31, 2020 July 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Cash and cash equivalents $ 3,260,135 $ 3,260,135 $ 4,117,647 $ 4,117,647 Marketable securities $ 3,744,905 $ 3,744,905 $ 3,580,227 $ 3,580,227 Restricted cash $ 1,143,666 $ 1,143,666 $ 1,146,077 $ 1,146,077 Security deposits payable $ 809,652 $ 809,652 $ 882,615 $ 882,615 Mortgages and note payable $ 9,519,658 $ 9,915,121 $ 5,298,610 $ 5,298,610 Financial instruments that are potentially subject to concentrations of credit risk consist principally of marketable securities, restricted cash, cash and cash equivalents, and receivables. Marketable securities, restricted cash, cash and cash equivalents are placed with multiple financial institutions and instruments to minimize risk. No assurance can be made that such financial institutions and instruments will minimize all such risk. As of July 31, 2020 and 2019, four tenants accounted for approximately 54.97% and 68.51% of receivables, respectively. During the year ended July 31, 2020 and 2019, three tenants accounted for 43.65% and 44.47% of total rental revenue, respectively. |
DEFERRED CHARGES
DEFERRED CHARGES | 12 Months Ended |
Jul. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
DEFERRED CHARGES | 11. DEFERRED CHARGES: Deferred charges for the fiscal years ended July 31, 2020 and 2019 consist of the following: July 31, 2020 July 31, 2019 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Leasing brokerage commissions $ 4,204,638 $ 1,281,010 $ 3,578,114 $ 1,076,694 Professional fees for leasing 151,704 88,684 151,704 77,302 Total $ 4,356,342 $ 1,369,694 $ 3,729,818 $ 1,153,996 The aggregate amortization expense for the periods ended July 31, 2020 and July 31, 2019 were $297,887, and $295,926, respectively. The weighted average life of current year additions to deferred charges was nine years. The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: Fiscal Year Amortization 2021 $ 377,689 2022 $ 353,142 2023 $ 338,381 2024 $ 307,765 2025 $ 271,905 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS: The Company has two operating leases with Weinstein Enterprises, Inc. (Landlord), an affiliated company, principally owned by the Chairman of the Board of Directors of both the Company and Landlord. One lease is for building, improvements, and land (Premises) located at Jamaica Avenue at 169 th Rent payments and expense relating to these two operating leases with Landlord follow: Rent Payments Rent Expense Year Ended July 31 Year Ended July 31 Property 2020 2019 2020 2019 Jamaica Avenue at 169 th $ 624,994 $ 624,994 $ 1,582,344 $ 624,994 504-506 Fulton Street 362,256 362,256 350,437 362,256 Total $ 987,250 $ 987,250 $ 1,932,781 $ 987,250 The following summarizes assets and liabilities related to these two leases as of July 31, 2020: Operating Lease Right-Of-Use Property Assets Liabilities Expiration Date Jamaica Avenue at 169 th $ 14,230,659 $ 5,455,029 May 31, 2030 504-506 Fulton Street 3,063,268 3,190,253 April 30, 2031 Total $ 17,293,927 $ 8,645,282 Upon termination of the Jamaica, New York lease in 2030, all premises included in operating lease right-of-use assets plus leasehold improvements will be turned over to the Landlord. Until that time, the Company remains solely entitled to tax depreciation and other tax deductions relating to the building, improvements, and maintenance of the property. As of July 31, 2020, the federal tax basis is $13,863,981 with accumulated depreciation of $9,143,642 for a net tax book value of $4,720,339. |
CAPITALIZATION
CAPITALIZATION | 12 Months Ended |
Jul. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
CAPITALIZATION | 13. CAPITALIZATION: The Company is capitalized entirely through common stock with identical voting rights and rights to liquidation. Treasury stock is recorded at cost and consists of 162,517 shares at July 31, 2020 and at July 31, 2019. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jul. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 14. CONTINGENCIES: On November 2, 2018 the Company settled the lawsuit relating to defective workmanship and breach of contract to replace a roof and various other work on its Fishkill, New York building. The Company agreed to pay $635,000 to the Plaintiffs, D. Owens Electric, Inc., Mid-Hudson Structural Concrete, Inc. d/b/a Recycle Depot, and BSB Construction, Inc., in settlement of the claims made against the Company. This settlement resolves the actions and disputes referred to in the Decision and Order dated October 30, 2018 of the Supreme Court of the State of New York, County of Dutchess. The $635,000 was paid in full on November 6, 2018. There are various other lawsuits and claims pending against the Company. It is the opinion of management that the resolution of these matters will not have a material adverse effect on the Companys Consolidated Financial Statements. If the Company sells, transfers, disposes of or demolishes 25 Elm Place, Brooklyn, New York, then the Company may be liable to create a condominium unit for the loading dock. The necessity of creating the condominium unit and the cost of such condominium unit cannot be determined at this time. |
REAL ESTATE AND ACCUMULATED DEP
REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Jul. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
REAL ESTATE AND ACCUMULATED DEPRECIATION | J.W. MAYS, INC. Col. A Col. B Col. C Col. D Col. E Col. F Col. G Col. H Col. I Cost Capitalized Life on Which Subsequent to Gross Amount at Which Carried Depreciation in Initial Cost to Company Acquisition At Close of Period Latest Income Building & Carried Building & Accumulated Date of Date Statement is Description Encumbrances Land Improvements Improvements Cost Land Improvements Total Depreciation Construction Acquired Computed Office and Rental Buildings $ 4,829,832 $ 3,901,349 $ 7,403,468 $ 24,346,123 $ $ 3,901,349 $ 31,749,591 $ 35,650,940 $ 13,934,889 Various Various (1)(2) Jamaica, New York 233,118 233,118 233,118 30,915 1959 1959 (3) Fishkill, New York 3,967,100 594,723 7,212,116 13,314,681 594,723 20,526,797 21,121,520 9,428,361 10/74 11/72 (1) Brooklyn, New York 1,324,957 728,327 16,505,630 1,324,957 17,233,957 18,558,914 6,382,385 1915 1950 (1)(2) Levittown, New York Hempstead Turnpike 125,927 125,927 125,927 4/69 6/62 (1) Circleville, Ohio Tarlton Road 120,849 4,388,456 86,520 120,849 4,474,976 4,595,825 3,028,668 9/92 12/92 (1) Total(A) $ 8,796,932 $ 6,067,805 $ 19,732,367 $ 54,486,072 $ $ 6,067,805 $ 74,218,439 $ 80,286,244 $ 32,805,218 ____________________ (1) Building and improvements 1840 years (2) Improvements to leased property 340 years (3) The initial recording of operating lease right-of-use assets of $27.1 million includes adjustments of approximately $10.2 million primarily relating to building and improvements, net of accumulated depreciation, required pursuant to a ground lease with an affiliate, principally owned by a director of the Company (landlord). Upon lease termination in 2030, the building and all improvements will be turned over to the landlord as property owner (See Notes 1 and 12 to the Accompanying Consolidated Financial Statements). Leasehold improvements are amortized over the life of the lease. (A) Does not include Office Furniture and Equipment and Transportation Equipment in the amount of $319,683 and Accumulated Depreciation thereon of $202,771 at July 31, 2020. Year Ended July 31, 2020 2019 Investment in Real Estate Balance at Beginning of Year $ 96,333,110 $ 92,061,623 Improvements 5,840,914 4,271,487 Retirements (21,887,780 ) Balance at End of Year $ 80,286,244 $ 96,333,110 Accumulated Depreciation Balance at Beginning of Year $ 43,310,270 $ 41,382,962 Additions Charged to Costs and Expenses 1,626,230 1,927,308 Retirements (12,131,282 ) Balance at End of Year $ 32,805,218 $ 43,310,270 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization | Organization J.W. Mays, Inc. (the Company or Registrant) with executive offices at 9 Bond Street, Brooklyn, New York 11201, operates a number of commercial real estate properties in New York and one building in Ohio. The Companys business was founded in 1924 and incorporated under the laws of the State of New York on July 6, 1927. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, a New York corporation and its subsidiaries (J. W. M. Realty Corp. and Dutchess Mall Sewage Plant, Inc.), which are wholly-owned. Material intercompany items have been eliminated in consolidation. |
The Impact of COVID-19 on Our Results and Operations | The Impact of COVID-19 on Our Results and Operations In late 2019, an outbreak of COVID-19 emerged and by March 11, 2020 was declared a global pandemic by The World Health Organization. Throughout the United States and locally, governments and municipalities instituted measures in an effort to control the spread of COVID-19, including quarantines, shelter-in-place orders, school closings, travel restrictions and the closure of non-essential businesses. By the end of March 2020, the economic impacts became significant for the remainder of the year ending July 31, 2020. Beginning March and April 2020, we experienced an increase in late payments due to the impact of COVID-19 and the related reductions in economic activity from government mandated business disruptions and shelter -in- place orders. The effects of COVID-19 on our tenants have been reflected in an increase in our allowance for credit losses for accounts receivable. In limited circumstances, we have agreed to rent abatements and deferrals for certain tenants. In addition, we experienced volatility in the valuation of our equity investments. Looking ahead, the full impact of COVID-19 on our business is unknown and highly unpredictable. Third and fourth quarter rent collections and increased past due activity may not be indicative of unpaid rents in any future period. Our past results may not be indicative of our future performance and historical trends in revenues, income from operations, net income, earnings per share, cash provided by operating activities, among others, may differ materially. For example, to the extent the pandemic continues to disrupt economic activity nationally and in New York, NY, like other businesses, it could adversely affect our business operations and financial results through prolonged decreases in revenue, credit deterioration of our tenants, depressed economic activity, or declines in capital markets. In addition, many of our expenses are less variable in nature and may not correlate to changes in revenues. The extent of the impact will depend on a number of factors, including the duration and severity of the pandemic; advances in testing, treatment and prevention; and the macroeconomic impact of government measures to contain the spread of the virus and related government stimulus measures. |
Use of Estimates | Use of Estimates The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America (GAAP). The preparation of the Companys financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities, incremental borrowing rates and recognition of renewal options for operating lease right-of-use assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation, income tax assets and liabilities, fair value of marketable securities and revenue recognition. Estimates are based on historical experience where applicable or other assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from those estimates under different assumptions or conditions. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash held in bank accounts for tenant security deposits and other amounts required under certain loan agreements. |
Marketable Securities | Marketable Securities Prior to the adoption of ASU 2016-01, the Company categorized marketable securities as either trading, available-for-sale or held-to-maturity at the time of purchase. Trading securities were carried at fair value with unrealized gains and losses included in income. Available-for-sale securities were carried at fair value using quoted prices in active markets for identical assets or liabilities with unrealized gains and losses recorded as a separate component of shareholders equity. Held-to-maturity securities were carried at amortized cost. With the adoption of ASU 2016-01 effective August 1, 2018, equity securities with readily determinable fair values are reported at fair value as marketable securities in the other assets section of the balance sheet. Also, effective August 1, 2018, changes in fair value of marketable securities are recorded in the investment income and interest expense section of the statement of operations. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The Company did not classify any securities as trading or held to maturity during the years ended July 31, 2020 or 2019. The Company follows GAAP which establishes a fair value hierarchy that prioritizes the valuation techniques and creates the following three broad levels, with Level 1 valuation being the highest priority: Level 1 valuation inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date (e.g., equity securities traded on the New York Stock Exchange). Level 2 valuation inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted market prices of similar assets or liabilities in active markets, or quoted market prices for identical or similar assets or liabilities in markets that are not active). Level 3 valuation inputs are unobservable (e.g., an entitys own data) and should be used to measure fair value to the extent that observable inputs are not available. Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used at July 31, 2020 and 2019. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded that the Company has access to. Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission. These funds are required to publish their daily net asset value (NAV) and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. In accordance with the provisions of Fair Value Measurements, the following are the Companys financial assets measured on a recurring basis presented at fair value. Fair value measurements at reporting date using Description July 31, 2020 Level 1 Level 2 Level 3 July 31, 2019 Level 1 Level 2 Level 3 Assets: Marketable securities - available-for-sale $3,744,905 $3,744,905 $ $ $3,580,227 $3,580,227 $ $ |
Accounts Receivable | Accounts Receivable Generally, rent is due from tenants at the beginning of the month in accordance with terms of each lease. Based upon its periodic assessment of the quality of the receivables, management uses its historical knowledge of the tenants and industry experience to determine whether a reserve or write-off is required. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectibility become known. Collectibility issues include late rent payments, circumstances when a tenant indicates their intention to vacate the property without paying, or when tenant litigation or bankruptcy proceedings are not expected to result in full payment. Management also assesses collectibility by reviewing accounts receivable on an aggregate basis where similar characteristics exist. In determining the amount of the allowance for credit losses, the Company considers historical collectibility based on past due status and a tenants payment history. We also consider current market conditions and reasonable and supportable forecasts of future economic conditions. Our assessment as of July 31, 2020 considered business and market disruptions caused by COVID-19. The continued volatility in market conditions and evolving shifts in credit trends are difficult to predict causing variability and volatility that may have a material impact on our allowance for uncollectible accounts receivables in future periods. As of July 31, 2019, Management determined no allowance for uncollected accounts receivables was considered necessary. As of July 31, 2020, and primarily as a result of the effects of COVID-19, the Company recorded an allowance for uncollectible receivables in the amount of $82,000, as an offset to receivables. Activity in the allowance for uncollectible receivables for each period follows: Allowance for Uncollectible Bad Debt Expense as a Accounts Receivable Reduction to Rent Revenue Year Ended July 31 Year Ended July 31 2020 2019 2020 2019 Beginning balance $ $ $ $ Charge-offs prior to recording allowance April 30, 2020 40,292 118,238 Initial recording of allowance, April 30, 2020 556,000 556,000 Charge-offs (132,768 ) Recoveries (91,840 ) (91,840 ) COVID 19 rent abatements reclassed to reduce rental income (249,392 ) (249,392 ) Ending Balance $ 82,000 $ $ 255,060 $ 118,238 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of improvements to leased property is calculated over the life of the lease. Lives used to determine depreciation and amortization are generally as follows: Buildings and improvements 18-40 years Improvements to leased property 3-10 years Fixtures and equipment 7-12 years Other 3-5 years Maintenance, repairs, renewals and improvements of a non-permanent nature are charged to expense when incurred. Expenditures for additions and major renewals or improvements are capitalized along with the associated interest cost during construction. The cost of assets sold or retired, and the accumulated depreciation or amortization thereon are eliminated from the respective accounts in the year of disposal, and the resulting gain or loss is credited or charged to income. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the assets estimated useful life. The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. At July 31, 2020 and 2019, the Company has determined there was no impairment of its property and equipment. |
Deferred Charges | Deferred Charges Deferred charges consist principally of costs incurred in connection with the leasing of property to tenants. Such costs are amortized over the related lease periods, ranging from 1 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed. |
Leases - Lessor Revenue Recognition | Leases Lessor Revenue Recognition The Company accounts for revenue in accordance with Accounting Standards Update (ASU) 2014-09 (Topic 606) Revenue from Contracts with Customers. Rental income is recognized from tenants under executed leases no later than on an established date or on an earlier date if the tenant should commence conducting business. Unbilled receivables are included in accounts receivable and represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, are recognized in the period when the lease modification is signed. At the time of the lease modification, we assess the realizability of any accrued but unpaid rent and amounts that had been recognized as revenue in prior periods. As lessor, we have elected to combine the lease components (base rent), non-lease components (reimbursements of common area maintenance expenses) and reimbursements of real estate taxes and account for the components as a single lease component in accordance with ASC 842. If the amounts are not determined to be realizable, the accrued but unpaid rent is written off. Accounts receivable are recognized in accordance with lease agreements at its net realizable value. Rental payments received in advance are deferred until earned. |
Leases - Lessee | Leases Lessee The Company determines if an arrangement is a lease at inception. With the adoption of ASC 842, operating leases are included in operating lease right-of-use assets and operating lease liabilities on the Companys balance sheet. Operating lease right-of-use assets represent the Companys right to use an underlying asset for the lease term and lease liabilities represent the Companys obligation to make payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Companys leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Companys lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Taxes | Taxes Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Companys assets and liabilities. Deferred tax assets result principally from the recording of certain accruals, reserves and net operating loss carry forwards which currently are not deductible for tax purposes. Deferred tax liabilities result principally from temporary differences in the recognition of unrealized gains and losses from certain investments and from the use, for tax purposes, of accelerated depreciation. Deferred tax assets and liabilities are offset for each jurisdiction and are presented net on the balance sheet. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Actual income taxes could vary from these estimates due to future changes in income tax law or results from the final review of tax returns by federal, state or city tax authorities. Financial statement effects on tax positions are recognized in the period in which it is more likely than not that the position will be sustained upon examination, the position is effectively settled or when the statute of limitations to challenge the position has expired. Interest and penalties, if any, related to unrecognized tax benefits are recorded as interest expense and administrative and general expenses, respectively. |
Income Per Share of Common Stock | Income Per Share of Common Stock Income per share has been computed by dividing net income for the year by the weighted average number of shares of common stock outstanding during the year, adjusted for the purchase of treasury stock. Shares used in computing income per share were 2,015,780 in fiscal years 2020 and 2019. |
Reclassification | Reclassification The consolidated financial statements for prior years reflect certain reclassifications to conform with classifications adopted in the year ended July 31, 2020. These reclassifications have no effect on net income or loss as previously reported. As of July 31, 2020, the Company changed its balance sheet presentation from classified to unclassified to more generally conform with norms in the real estate industry. Many of the prior year reclassifications relate to this change in presentation. |
Recently adopted accounting standards: | Recently adopted accounting standards: In May 2014, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) 2014-09 Revenue from Contracts with Customers (ASU 2014-09) establishing ASC Topic 606 Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting in fiscal years that begin after December 15, 2016. ASU 2015-14 extended the implementation date for fiscal years beginning after December 31, 2017. Subsequent to the issuance of ASU 2014-09, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The additional ASUs clarified certain provisions of ASU 2014-09 in response to recommendations from the Transition Resource Group established by the FASB and have the same effective date and transition requirements as ASU 2014-09. We adopted these standards effective August 1, 2018 using the modified retrospective approach, which allows us to apply the new standard to all existing contracts not yet completed as of the effective date and record a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, however there was no cumulative-effect required to be recognized in our retained earnings as the date of adoption. The adoption of this standard did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU No. 2016-01 is effective for interim and annual periods beginning after December 15, 2017. We adopted this standard effective August 1, 2018 and recorded a cumulative effect adjustment to increase opening retained earnings at August 1, 2018 by $487,136 as required for equity investments recorded at fair value, formerly available-for-sale securities. In November 2016, the FASB issued ASU 2016-18, Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this standard effective August 1, 2018 with retrospective application to our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 is intended to increase transparency and comparability among organizations in accounting for leasing arrangements. This guidance establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, which provides amendments and clarification to ASU 2016-12 based on the FASBs interaction with stakeholders. In July 2018, the FASB issued ASU No. 2018-11 Leases (Topic 842): Targeted Improvements, which amends Leases (Topic 842) to (i) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (ii) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842) Narrow-Scope Improvement for Lessors, which clarifies how to apply the leases standard when accounting for sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and non-lease components. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) Codification Improvements, which provides amendments for issues brought to the Boards attention through its interactions with stakeholders. The issues identified are as follows: (1) Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers, (2) Presentation on the statement of cash flows-sales-type and direct financing leases, and (3) Transition disclosures related to Topic 250, Accounting Changes and Error Corrections. These standards are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new standards were adopted by the Company for the fiscal year beginning August 1, 2019. Upon adoption of Topic 842, the Company elected the following practical expedients: 1. The Company applied the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the initial period of adoption. Upon adoption on August 1, 2019, the Company did not have an adjustment to opening retained earnings. 2. As lessee and lessor, the Company has elected not to reassess lease classifications and all leases will continue to be classified as operating leases under the new standard. As a result of the adoption of the new lease accounting guidance, the Company recognized on August 1, 2019: ● Operating lease right-of-use assets of $27.1 million. ● Operating lease liabilities of approximately $17.9 million, based on the net present value of remaining minimum rental payments, discounted using the Companys incremental borrowing rate of 3.88%. ● The initial recording of operating lease right-of-use assets of $27.1 million includes adjustments of approximately $10.2 million primarily relating to building and improvements, net of accumulated depreciation, required pursuant to a ground lease with an affiliate, principally owned by a director of the Company (landlord). Upon lease termination in 2030, the building and all improvements will be turned over to the landlord as property owner. ● The initial operating lease liability of $17.9 million includes an adjustment of remaining accrued rent of approximately $.95 million. The Companys lessor accounting remains similar under Topic 842 but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). Upon adoption of the lease standards on August 1, 2019, changes in accounting for the Companys lease revenue as lessor were not significant. In April 2020, the FASB issued a Staff Q&A on accounting for leases during the COVID-19 pandemic, focused on the application of lease guidance in ASC Topic 842, Leases (ASC 842). The Q&A states that it would be acceptable to make a policy election regarding rent concessions resulting from COVID-19, which would not require entities to account for these rent concessions as lease modifications under certain conditions. Entities making the election will continue to recognize rental revenue on a straight-line basis for qualifying concessions. Rent abatements would be recognized as reductions to revenue during the period in which they were granted. Rent deferrals would result in an increase to accounts receivable during the deferral period with no impact on rental revenue recognition. The Company elected this policy for the year ended July 31, 2020. Rent abatements and deferrals resulting from COVID-19 aggregated $433,517 and $459,429, respectively, for the year ending July 31, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Investments Measured At Fair Value | In accordance with the provisions of Fair Value Measurements, the following are the Companys financial assets measured on a recurring basis presented at fair value. Fair value measurements at reporting date using Description July 31, 2020 Level 1 Level 2 Level 3 July 31, 2019 Level 1 Level 2 Level 3 Assets: Marketable securities - available-for-sale $3,744,905 $3,744,905 $ $ $3,580,227 $3,580,227 $ $ |
Schedule of Allowance for Uncollectible Receivables | Activity in the allowance for uncollectible receivables for each period follows: Allowance for Uncollectible Bad Debt Expense as a Accounts Receivable Reduction to Rent Revenue Year Ended July 31 Year Ended July 31 2020 2019 2020 2019 Beginning balance $ $ $ $ Charge-offs prior to recording allowance April 30, 2020 40,292 118,238 Initial recording of allowance, April 30, 2020 556,000 556,000 Charge-offs (132,768 ) Recoveries (91,840 ) (91,840 ) COVID 19 rent abatements reclassed to reduce rental income (249,392 ) (249,392 ) Ending Balance $ 82,000 $ $ 255,060 $ 118,238 |
Schedule of Property and Equipment Depreciation and Amortization Period | Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of improvements to leased property is calculated over the life of the lease. Lives used to determine depreciation and amortization are generally as follows: Buildings and improvements 18-40 years Improvements to leased property 3-10 years Fixtures and equipment 7-12 years Other 3-5 years |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Classified Marketable Securities | As of July 31, 2020 and 2019, the Companys marketable securities were classified as follows: July 31, 2020 July 31, 2019 Gross Gross Gross Gross Unrealized Unrealized Fair Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Non-current: $ 1,077,493 $ 297,064 $ $ 1,374,557 $ 845,306 $ 264,425 $ $ 1,109,731 1,553,275 823,010 5,937 2,370,348 1,656,156 814,340 2,470,496 $ 2,630,768 $ 1,120,074 $ 5,937 $ 3,744,905 $ 2,501,462 $ 1,078,765 $ $ 3,580,227 |
Schedule of Investment Income | Investment income for the years ended July 31, 2020 and 2019 consists of the following: 2020 2019 Interest income $ 20,446 $ 56,918 Dividend income 96,569 105,687 Gain on sale of marketable securities 28,546 46,415 $ 145,561 $ 209,020 |
LONG-TERM DEBT-MORTGAGE (Tables
LONG-TERM DEBT-MORTGAGE (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
LONG-TERM DEBT - MORTGAGES AND TERM LOAN [Abstract] | |
Schedule of Long-term Debt | Years Ended July 31, Current Annual Final Interest Payment Rate Date 2020 2019 Mortgage: 4.375 % 12/1/2024 $ 4,829,832 $ 5,298,610 3.980 % 4/1/2025 3,967,100 168,967 11,448 $ 8,627,965 $ 5,287,162 (1) In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street building in Brooklyn, New York. (2) In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years. |
Schedule of Maturities of Long-term Mortgage and Term Loan Payable Outstanding | Maturities of long-term mortgage and term loan payable outstanding at July 31, 2020 are as follows: Year Ended July 31: Amount 2021 $ 1,147,300 2022 1,198,600 2023 1,252,196 2024 1,308,070 2025 3,890,766 Subtotal 8,796,932 Deferred financing costs 168,967 Total $ 8,627,965 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Schedule of Revenues By Lease And Non-lease Components | The following table disaggregates the Companys revenues by lease and non-lease components: Years Ended July 31, 2020 2019 Base rent - fixed $ 17,392,398 $ 19,126,372 Reimbursements of common area costs 781,119 769,767 Non-lease components (real estate taxes) 1,358,329 1,190,315 Rental income $ 19,531,846 $ 21,086,454 |
Schedule of Rental Income | Rental income for each of the fiscal years 2020 and 2019 is as follows: Years Ended July 31, 2020 2019 Minimum rentals $ 10,940,491 $ 12,448,374 6,451,907 6,677,998 17,392,398 19,126,372 Contingent rentals 1,454,827 1,422,990 684,621 537,092 2,139,448 1,960,082 $ 19,531,846 $ 21,086,454 |
Schedule of Future Minimum Non-cancelable Rental Income | Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows: As of July 31, 2020 Company Owned Leased Fiscal Year Property Property Total 2021 $ 10,114,252 $ 5,509,242 $ 15,623,494 2022 8,037,688 3,938,533 11,976,221 2023 7,212,832 3,170,131 10,382,963 2024 5,401,738 2,886,515 8,288,253 2025 5,219,923 2,501,112 7,721,035 After 2025 22,733,655 9,486,990 32,220,645 $ 58,720,088 $ 27,492,523 $ 86,212,611 As of July 31, 2019 Company Owned Leased Fiscal Year Property Property Total 2020 $ 10,038,712 $ 6,120,283 $ 16,158,995 2021 9,521,380 5,009,044 14,530,424 2022 7,878,165 4,039,069 11,917,234 2023 7,399,288 3,270,666 10,669,954 2024 6,483,940 2,987,050 9,470,990 After 2024 52,632,826 14,842,540 67,475,366 $ 93,954,311 $ 36,268,652 $ 130,222,963 |
Schedule of Effect On Operating Lease Right-of-use Assets, Liabilities And Rent Expense | In April 2020, four of the Companys property leases were extended. The effect of these lease extensions on the measurement of operating lease right-of-use assets, liabilities and rent expense follows: Operating Operating Monthly Lease Right- Lease Rent of-Use-Asset Liability Expense Upon initial adoption, August 1, 2019 $ 27,104,937 $ 17,863,507 $ 249,955 After various lease extensions through April 30, 2020 $ 37,698,819 $ 29,326,365 $ 277,570 |
Schedule of Rental Expense | Operating lease costs for leased real property was exceeded by sublease rental income from the Companys real estate operations as follows: Years Ended July 31, 2020 2019 Sublease income $ 7,136,528 $ 7,215,090 Operating lease cost (4,517,273 ) (3,150,327 ) Excess of sublease income over lease cost $ 2,619,255 $ 4,064,763 |
Schedule of Annual Undiscounted Cash Flows Of The Operating Lease Liabilities | The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of July 31, 2020: Operating July 31 Leases 2021 $ 2,024,009 2022 2,116,363 2023 2,132,945 2024 2,150,129 2025 2,167,284 Thereafter 27,551,301 Total undiscounted cash flows 38,142,031 Less: present value discount (9,097,065 ) Total Lease Liabilities $ 29,044,966 Other information: Operating cash flows from operating leases $ 1,931,545 Weighted-average remaining lease term - operating leases 18.05 years Weighted-average discount rate - operating leases 2.89% |
Schedule of Additional Information Related To Leases | The following table represents future minimum lease payments under non-cancelable operating leases at July 31, 2019 as presented in the Companys Annual Report on Form 10-K: Operating July 31 Leases 2020 $ 1,897,318 2021 1,941,494 2022 2,057,814 2023 2,072,000 2024 2,086,697 After 2024 11,701,293 Total required* $ 21,756,616 * Minimum payments have not been reduced by minimum sublease rentals of $27,492,523 under operating leases due in the future under non-cancelable leases. |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income taxes provided for the years ended July 31, 2020 and 2019 consist of the following: 2020 2019 Current: Federal $ - $ - Deferred taxes (benefit): Federal (247,000 ) 456,000 State (108,000 ) 134,000 Income tax provision (benefit) $ (355,000 ) $ 590,000 |
Schedule of Effective Income Tax Rate Reconciliation | Taxes provided for the years ended July 31, 2020 and 2019 differ from amounts which would result from applying the federal statutory tax rate to pre-tax income, as follows: 2020 2019 Income (loss) before income taxes $ (1,261,005) $ 2,104,801 Other-net (16,158) (17,397) Adjusted pre-tax income (loss) $ (1,277,163) $ 2,087,404 Statutory rate 21.00% 21.00% Income tax provision (benefit) at statutory rate $ (268,204) $ 438,355 State deferred income taxes (benefit) (108,000) 134,000 Other-net 21,204 17,645 Income tax provision (benefit) $ (355,000) $ 590,000 |
Schedule of Deferred Tax Assets And Liabilities | Significant components of the Companys deferred tax assets and liabilities as of July 31, 2020 and 2019 are a result of temporary differences related to the items described as follows: 2020 2019 Deferred Deferred Deferred Deferred Tax Assets Tax Liabilities Tax Assets Tax Liabilities Rental income received in advance $ 175,145 $ $ 214,793 $ Anticipated PPP loan expenses to be forgiven 199,390 Operating lease liabilities 8,013,099 Federal net operating loss carryforward 1,764,769 840,122 State net operating loss carryforward 693,541 670,997 Unbilled receivables 412,343 460,328 Property and equipment 4,671,246 6,362,708 Unrealized gain on marketable securities 307,375 297,964 Operating lease right-of-use assets 10,229,036 Other 33,056 299,088 $ 10,879,000 $ 15,620,000 $ 2,025,000 $ 7,121,000 Net deferred tax liability $ 4,741,000 $ 5,096,000 |
Components of Deferred Tax Provision (benefit) | Components of the deferred tax provision (benefit) for the years ended July 31, 2020 and 2019 consist of the following: 2020 2019 Tax depreciation exceeding book depreciation $ (1,691,703 ) $ 446,551 Lease expense per book in excess of cash paid 2,477,725 Federal net operating loss carryforward (924,647 ) 11,053 State net operating loss carryforward (22,687 ) (5,063 ) Decrease (increase) of rental income received in advance 39,637 (39,818 ) Increase in anticipated PPP loan expenses to be forgiven (199,390 ) (Decrease) in unbilled receivables (47,962 ) (2,358 ) (Decrease) in average rent payable (25,186 ) Litigation deposit due from contractor 103,862 Other 14,027 100,959 $ (355,000 ) $ 590,000 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Payroll And Other Accrued Liabilities | Payroll and other accrued liabilities for the fiscal years ended July 31, 2020 and 2019 consist of the following: 2020 2019 Accounts payable $ 68,076 $ 39,811 Payroll 130,778 131,095 Interest 33,576 16,152 Professional fees 166,000 155,600 Rents received in advance 643,628 783,678 Utilities 7,900 13,400 Brokers commissions 1,115,743 728,322 Construction costs 576,131 66,829 Other 29,708 980,398 Total $ 2,771,540 $ 2,915,285 |
CASH FLOW INFORMATION (Tables)
CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash and Cash Equivalents and Restricted Cash | The following is a reconciliation of the Companys cash and cash equivalents and restricted cash to the total presented on the consolidated statement of cash flows: July 31, 2020 2019 Cash and cash equivalents $ 3,260,135 $ 4,117,647 Restricted cash 1,143,666 1,146,077 $ 4,403,801 $ 5,263,724 |
Schedule of Cash Flow Information | Supplemental disclosure: July 31, 2020 2019 Cash Flow Information Interest paid, net of capitalized interest of $112,074 (2020), and $77,880 (2019) $ 153,107 $ 115,657 Income tax (refunded) (23,041 ) Non-cash information Recognition of operating lease right-of-use assets $ 39,464,411 $ Recognition of operating lease liabilities 30,222,981 Mortgage refinance 5,255,920 |
FINANCIAL INSTRUMENTS AND CRE_2
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | July 31, 2020 July 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Cash and cash equivalents $ 3,260,135 $ 3,260,135 $ 4,117,647 $ 4,117,647 Marketable securities $ 3,744,905 $ 3,744,905 $ 3,580,227 $ 3,580,227 Restricted cash $ 1,143,666 $ 1,143,666 $ 1,146,077 $ 1,146,077 Security deposits payable $ 809,652 $ 809,652 $ 882,615 $ 882,615 Mortgages and note payable $ 9,519,658 $ 9,915,121 $ 5,298,610 $ 5,298,610 |
DEFERRED CHARGES (Tables)
DEFERRED CHARGES (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Charges | Deferred charges for the fiscal years ended July 31, 2020 and 2019 consist of the following: July 31, 2020 July 31, 2019 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Leasing brokerage commissions $ 4,204,638 $ 1,281,010 $ 3,578,114 $ 1,076,694 Professional fees for leasing 151,704 88,684 151,704 77,302 Total $ 4,356,342 $ 1,369,694 $ 3,729,818 $ 1,153,996 |
Schedule of Estimated Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: Fiscal Year Amortization 2021 $ 377,689 2022 $ 353,142 2023 $ 338,381 2024 $ 307,765 2025 $ 271,905 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jul. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Rent Payments Expenses | Rent payments and expense relating to these two operating leases with Landlord follow: Rent Payments Rent Expense Year Ended July 31 Year Ended July 31 Property 2020 2019 2020 2019 Jamaica Avenue at 169 th $ 624,994 $ 624,994 $ 1,582,344 $ 624,994 504-506 Fulton Street 362,256 362,256 350,437 362,256 Total $ 987,250 $ 987,250 $ 1,932,781 $ 987,250 |
Schedule of Summarizes Assets and Liabilities Related | The following summarizes assets and liabilities related to these two leases as of July 31, 2020: Operating Lease Right-Of-Use Property Assets Liabilities Expiration Date Jamaica Avenue at 169 th $ 14,230,659 $ 5,455,029 May 31, 2030 504-506 Fulton Street 3,063,268 3,190,253 April 30, 2031 Total $ 17,293,927 $ 8,645,282 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Allowance for Expected uncollectible receivables | $ 82,000 | |
Weighted average number of shares outstanding, basic (in shares) | 2,015,780 | 2,015,780 |
Unrealized gain on marketable securities reclassified to retained earnings, net of tax effect | $ 487,136 | |
Additional Lease term | Jul. 31, 2030 | |
Operating lease right-of-use assets | $ 39,464,411 | $ 27,100,000 |
Operating lease liabilities | 30,222,981 | $ 17,900,000 |
Incremental borrowing rate | 3.88% | |
Building and improvements net of accumulated depreciation | $ 10,200,000 | |
Accrued rent | $ 950,000 | |
Rent abatements | 433,517 | |
Amount of Deferrals | $ 459,429 | |
Minimum [Member] | ||
Deferred charges amortization period | 1 year | |
Maximum [Member] | ||
Deferred charges amortization period | 21 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Financial Assets Measured at Fair Value on Recurring Basis) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - available-for-sale | $ 3,744,905 | $ 3,580,227 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - available-for-sale | 3,744,905 | 3,580,227 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - available-for-sale | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - available-for-sale |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Allowance For Uncollectible Receivables) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Balance | $ 82,000 | |
Allowance for Uncollectible Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | ||
Charge-offs prior to recording allowance April 30, 2020 | ||
Initial recording of allowance, April 30, 2020 | 556,000 | |
Charge-offs | (132,768) | |
Recoveries | (91,840) | |
COVID 19 rent abatements reclassed to reduce rental income | (249,392) | |
Ending Balance | 82,000 | |
Bad Debt Expense as a Reduction to Rent Revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 118,238 | |
Charge-offs prior to recording allowance April 30, 2020 | 40,292 | 118,238 |
Initial recording of allowance, April 30, 2020 | 556,000 | |
Charge-offs | ||
Recoveries | (91,840) | |
COVID 19 rent abatements reclassed to reduce rental income | (249,392) | |
Ending Balance | $ 255,060 | $ 118,238 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Depreciation and Amortization Period) (Details) | 12 Months Ended |
Jul. 31, 2020 | |
Buildings and improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 18 years |
Buildings and improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Improvements to leased property [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Improvements to leased property [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 12 years |
Other [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Other [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of Classified Marketable Securities) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Fair Value | $ 3,744,905 | $ 3,580,227 |
Noncurrent [Member] | ||
Fair Value | 3,744,905 | 3,580,227 |
Gross Unrealized Gains | 1,120,074 | 1,078,765 |
Gross Unrealized Losses | 5,937 | |
Cost | 2,630,768 | 2,501,462 |
Noncurrent [Member] | Mutual Fund [Member] | ||
Fair Value | 1,374,557 | 1,109,731 |
Gross Unrealized Gains | 297,064 | 264,425 |
Gross Unrealized Losses | ||
Cost | 1,077,493 | 845,306 |
Noncurrent [Member] | Corporate Equity Securities [Member] | ||
Fair Value | 2,370,348 | 2,470,496 |
Gross Unrealized Gains | 823,010 | 814,340 |
Gross Unrealized Losses | 5,937 | |
Cost | $ 1,553,275 | $ 1,656,156 |
MARKETABLE SECURITIES (Schedu_2
MARKETABLE SECURITIES (Schedule of Investment Income) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Interest income | $ 20,446 | $ 56,918 |
Dividend income | 96,569 | 105,687 |
Gain on sale of marketable securities | 28,546 | 46,415 |
Total | $ 145,561 | $ 209,020 |
LONG-TERM DEBT-MORTGAGE (Narrat
LONG-TERM DEBT-MORTGAGE (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Nov. 30, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 5,255,920 | |||
Carrying value of properties collateralizing debt | $ 33,409,210 | |||
Bond St. Building Brooklyn, NY [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 5,255,920 | |||
Additional loans | 144,080 | |||
Amount outstanding | $ 5,400,000 | |||
Term of loan | 5 years | |||
Maturity date of loan | Dec. 1, 2024 | |||
Interest rate, percent | 4.375% | 4.375% | ||
Bond St. Building Brooklyn, NY [Member] | Another Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 6,000,000 | |||
Interest rate, percent | 3.54% | |||
Fishkill, New York Property [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 4,000,000 | |||
Term of loan | 20 years | |||
Maturity period of loan | 5 years | |||
Maturity date of loan | Apr. 1, 2025 | |||
Interest rate, percent | 3.98% | 3.98% |
LONG-TERM DEBT - MORTGAGE (Sche
LONG-TERM DEBT - MORTGAGE (Schedule of Long-term Debt) (Details) - USD ($) | 12 Months Ended | |||||
Jul. 31, 2020 | Mar. 31, 2020 | Nov. 30, 2019 | Jul. 31, 2019 | |||
Mortgage: | ||||||
Less: Deferred financing costs | $ 168,967 | $ 11,448 | ||||
Total | $ 8,627,965 | 5,287,162 | ||||
Bond St. Building Brooklyn, NY [Member] | ||||||
Mortgage: | ||||||
Current Annual Interest Rate | 4.375% | 4.375% | ||||
Final Payment Date | Dec. 1, 2024 | |||||
Long term loan | [1] | $ 4,829,832 | 5,298,610 | |||
Fishkill, New York Property [Member] | ||||||
Mortgage: | ||||||
Current Annual Interest Rate | 3.98% | 3.98% | ||||
Final Payment Date | Apr. 1, 2025 | |||||
Long term loan | $ 3,967,100 | [2] | ||||
[1] | In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street building in Brooklyn, New York. | |||||
[2] | In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years. |
LONG-TERM DEBT - MORTGAGE (Sc_2
LONG-TERM DEBT - MORTGAGE (Schedule of Maturities of long-term Mortgage and Term Loan Payable Outstanding) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 1,147,300 | |
2022 | 1,198,600 | |
2023 | 1,252,196 | |
2024 | 1,308,070 | |
2025 | 3,890,766 | |
Subtotal | 8,796,932 | |
Deferred financing costs | 168,967 | $ 11,448 |
Total | $ 8,627,965 | $ 5,287,162 |
NOTE PAYABLE (Details)
NOTE PAYABLE (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2020 | Apr. 30, 2020 | Jul. 31, 2019 | |
Debt instrument face amount | $ 5,255,920 | ||
SBA Loan [Member] | |||
Debt instrument face amount | $ 722,726 | ||
Current Annual Interest Rate | 0.98% | ||
Final Payment Date | Jul. 31, 2021 |
OPERATING LEASES (Narrative) (D
OPERATING LEASES (Narrative) (Details) | Jul. 31, 2020USD ($) |
Lessor, Lease, Description [Line Items] | |
Minimum sublease rentals | $ 27,492,523 |
Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Operating leases extended period | 5 years |
Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Operating leases extended period | 49 years |
OPERATING LEASES (Schedule of R
OPERATING LEASES (Schedule of Revenues by Lease and Non-Lease Components) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Leases [Abstract] | ||
Base rent - fixed | $ 17,392,398 | $ 19,126,372 |
Reimbursements of common area costs | 781,119 | 769,767 |
Non-lease components (real estate taxes) | 1,358,329 | 1,190,315 |
Rental income | $ 19,531,846 | $ 21,086,454 |
OPERATING LEASES (Schedule of_2
OPERATING LEASES (Schedule of Rental Income) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Operating Leased Assets [Line Items] | ||
Minimum rentals | $ 17,392,398 | $ 19,126,372 |
Contingent rentals | 2,139,448 | 1,960,082 |
Total | 19,531,846 | 21,086,454 |
Company Owned Property [Member] | ||
Operating Leased Assets [Line Items] | ||
Minimum rentals | 10,940,491 | 12,448,374 |
Contingent rentals | 1,454,827 | 1,422,990 |
Leased Property [Member] | ||
Operating Leased Assets [Line Items] | ||
Minimum rentals | 6,451,907 | 6,677,998 |
Contingent rentals | $ 684,621 | $ 537,092 |
OPERATING LEASES (Schedule of F
OPERATING LEASES (Schedule of Future Minimum Non-Cancelable Rental Income) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Lessor, Lease, Description [Line Items] | ||
2020 | $ 16,158,995 | |
2021 | $ 15,623,494 | 14,530,424 |
2022 | 11,976,221 | 11,917,234 |
2023 | 10,382,963 | 10,669,954 |
2024 | 8,288,253 | 9,470,990 |
2025 | 7,721,035 | |
After 2024 and 2025 | 32,220,645 | 67,475,366 |
Total | 86,212,611 | 130,222,963 |
Company Owned Property [Member] | ||
Lessor, Lease, Description [Line Items] | ||
2020 | 10,038,712 | |
2021 | 10,114,252 | 9,521,380 |
2022 | 8,037,688 | 7,878,165 |
2023 | 7,212,832 | 7,399,288 |
2024 | 5,401,738 | 6,483,940 |
2025 | 5,219,923 | |
After 2024 and 2025 | 22,733,655 | 52,632,826 |
Total | 58,720,088 | 93,954,311 |
Leased Property [Member] | ||
Lessor, Lease, Description [Line Items] | ||
2020 | 6,120,283 | |
2021 | 5,509,242 | 5,009,044 |
2022 | 3,938,533 | 4,039,069 |
2023 | 3,170,131 | 3,270,666 |
2024 | 2,886,515 | 2,987,050 |
2025 | 2,501,112 | |
After 2024 and 2025 | 9,486,990 | 14,842,540 |
Total | $ 27,492,523 | $ 36,268,652 |
OPERATING LEASES (Schedule of E
OPERATING LEASES (Schedule of Effect of Operating Lease Right-of-Use Assets, Liabilities and Rent Expense) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Leases [Abstract] | ||
Operating Lease Right-of-Use-Asset | $ 37,077,038 | |
Operating lease liabilities | 29,044,966 | |
Monthly Rent Expense | $ 277,570 | $ 249,955 |
OPERATING LEASES (Schedule of_3
OPERATING LEASES (Schedule of Rental Expense) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Leases [Abstract] | ||
Sublease income | $ 7,136,528 | $ 7,215,090 |
Operating lease cost | (4,517,273) | (3,150,327) |
Excess of sublease income over lease cost | $ 2,619,255 | $ 4,064,763 |
OPERATING LEASES (Schedule of U
OPERATING LEASES (Schedule of Undiscounted Cash Flows Operating Lease Liabilities) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Leases [Abstract] | ||
July 31, 2021 | $ 2,024,009 | |
July 31, 2022 | 2,116,363 | |
July 31, 2023 | 2,132,945 | |
July 31, 2024 | 2,150,129 | |
July 31, 2025 | 2,167,284 | |
Thereafter | 27,551,301 | |
Total undiscounted cash flows | 38,142,031 | |
Less: present value discount | (9,097,065) | |
Total Lease Liabilities | $ 29,044,966 |
OPERATING LEASES (Schedule of A
OPERATING LEASES (Schedule of Additional Information Related to Leases) (Details) | 12 Months Ended |
Jul. 31, 2020USD ($) | |
Other information: | |
Operating cash flows from operating leases | $ 1,931,545 |
Weighted-average remaining lease term - operating leases | 18 years 18 days |
Weighted-average discount rate - operating leases | 2.89% |
OPERATING LEASES (Schedule of_4
OPERATING LEASES (Schedule of Future Minimum Non-cancelable Rental Commitments) (Details) | Jul. 31, 2019USD ($) | |
Leases [Abstract] | ||
2020 | $ 1,897,318 | |
2021 | 1,941,494 | |
2022 | 2,057,814 | |
2023 | 2,072,000 | |
2024 | 2,086,697 | |
After 2024 | 11,701,293 | |
Total required | $ 21,756,616 | [1] |
[1] | Minimum payments have not been reduced by minimum sublease rentals of $27,492,523 under operating leases due in the future under non-cancelable leases. |
INCOME TAX (Narrative) (Details
INCOME TAX (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 | |
Period over which state capital-based tax will be phased out | 7 years | ||
State and Local Jurisdiction [Member] | |||
Operating loss carryforwards | $ 10,526,000 | $ 10,170,000 | $ 8,274,000 |
Domestic Tax Authority [Member] | |||
Operating loss carryforwards | $ 8,404,000 | $ 4,002,000 |
INCOME TAX (Schedule of Income
INCOME TAX (Schedule of Income Tax Expense) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Current: | ||
Federal | ||
Deferred taxes (benefit): | ||
Federal | (247,000) | 456,000 |
State | (108,000) | 134,000 |
Income tax provision (benefit) | $ (355,000) | $ 590,000 |
INCOME TAX (Schedule of Effecti
INCOME TAX (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ (1,261,005) | $ 2,104,801 |
Other-net | (16,158) | (17,397) |
Adjusted pre-tax income (loss) | $ (1,277,163) | $ 2,087,404 |
Statutory rate | 21.00% | 21.00% |
Income tax provision (benefit) at statutory rate | $ (268,204) | $ 438,355 |
State deferred income taxes (benefit) | (108,000) | 134,000 |
Other-net | 21,204 | 17,645 |
Income tax provision (benefit) | $ (355,000) | $ 590,000 |
INCOME TAX (Schedule of Deferre
INCOME TAX (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Deferred Tax Assets | ||
Rental income received in advance | $ 175,145 | $ 214,793 |
Anticipated PPP loan expenses to be forgiven | 199,390 | |
Operating lease liabilities | 8,013,099 | |
Federal net operating loss carryforward | 1,764,769 | 840,122 |
State net operating loss carryforward | 693,541 | 670,997 |
Other | 33,056 | 299,088 |
Total | 10,879,000 | 2,025,000 |
Deferred Tax Liabilities | ||
Unbilled receivables | 412,343 | 460,328 |
Property and equipment | 4,671,246 | 6,362,708 |
Unrealized gain on marketable securities | 307,375 | 297,964 |
Operating lease right-of-use assets | 10,229,036 | |
Total | 15,620,000 | 7,121,000 |
Net deferred tax liability | $ 4,741,000 | $ 5,096,000 |
INCOME TAX (Components of Defer
INCOME TAX (Components of Deferred Tax Provision (Benefit)) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Deferred tax provision (benefit) | $ (355,000) | $ 590,000 |
Tax Depreciation Exceeding Book Depreciation [Member] | ||
Deferred tax provision (benefit) | (1,691,703) | 446,551 |
Lease Expense Per Book in Excess of Cash Paid [Member] | ||
Deferred tax provision (benefit) | 2,477,725 | |
Federal Net Operating Loss Carryforward [Member] | ||
Deferred tax provision (benefit) | (924,647) | 11,053 |
State net operating loss carryforward [Member] | ||
Deferred tax provision (benefit) | (22,687) | (5,063) |
Decrease (Increase) of Rental Income Received in Advance [Member] | ||
Deferred tax provision (benefit) | 39,637 | (39,818) |
Increase in Anticipated PPP Loan Expenses to be Forgiven [Member] | ||
Deferred tax provision (benefit) | (199,390) | |
(Decrease) In Unbilled Receivables [Member] | ||
Deferred tax provision (benefit) | (47,962) | (2,358) |
(Decrease) in Average Rent Payable [Member] | ||
Deferred tax provision (benefit) | (25,186) | |
Litigation Deposit Due From Contractor [Member] | ||
Deferred tax provision (benefit) | 103,862 | |
Other Deferred Income Tax Expense [Member] | ||
Deferred tax provision (benefit) | $ 14,027 | $ 100,959 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 68,076 | $ 39,811 |
Payroll | 130,778 | 131,095 |
Interest | 33,576 | 16,152 |
Professional fees | 166,000 | 155,600 |
Rents received in advance | 643,628 | 783,678 |
Utilities | 7,900 | 13,400 |
Brokers commissions | 1,115,743 | 728,322 |
Construction costs | 576,131 | 66,829 |
Other | 29,708 | 980,398 |
Total | $ 2,771,540 | $ 2,915,285 |
EMPLOYEES' RETIREMENT PLANS (De
EMPLOYEES' RETIREMENT PLANS (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Pension contributions | $ 424,401 | $ 427,420 |
Employer contributions | $ 59,434 | $ 61,588 |
Minimum contribution rate | 9.10% |
CASH FLOW INFORMATION (Schedule
CASH FLOW INFORMATION (Schedule of Cash and Cash Equivalents and Restricted Cash) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 |
Supplemental Cash Flow Elements [Abstract] | |||
Cash and cash equivalents | $ 3,260,135 | $ 4,117,647 | |
Restricted cash | 1,143,666 | 1,146,077 | |
Cash flow information | $ 4,403,801 | $ 5,263,724 | $ 6,879,623 |
CASH FLOW INFORMATION (Schedu_2
CASH FLOW INFORMATION (Schedule of Supplemental Disclosure) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Cash Flow Information | ||
Interest paid, net of capitalized interest of $112,074 (2020), and $77,880 (2019) | $ 153,107 | $ 115,657 |
Income tax (refunded) | (23,041) | |
Capitalized interest | 112,074 | 77,880 |
Non-cash information | ||
Recognition of operating lease right-of-use assets | 39,464,411 | 27,100,000 |
Recognition of operating lease liabilities | 30,222,981 | 17,900,000 |
Mortgage refinance | $ 5,255,920 |
FINANCIAL INSTRUMENTS AND CRE_3
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS (Narrative) (Details) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Four Customers [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk | 54.97% | 68.51% |
Three Customers [Member] | Rental Income [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk | 43.65% | 44.47% |
FINANCIAL INSTRUMENTS AND CRE_4
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS (Schedule of Fair Value of Financial Instruments) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 3,744,905 | $ 3,580,227 |
Restricted cash | 1,143,666 | 1,146,077 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 3,260,135 | 4,117,647 |
Marketable securities | 3,744,905 | 3,580,227 |
Restricted cash | 1,143,666 | 1,146,077 |
Security deposits payable | 809,652 | 882,615 |
Mortgage | 9,519,658 | 5,298,610 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 3,260,135 | 4,117,647 |
Marketable securities | 3,744,905 | 3,580,227 |
Restricted cash | 1,143,666 | 1,146,077 |
Security deposits payable | 809,652 | 882,615 |
Mortgage | $ 9,915,121 | $ 5,298,610 |
DEFERRED CHARGES (Narrative) (D
DEFERRED CHARGES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amortization of deferred charges | $ 297,887 | $ 295,926 |
Weighted average life of current year additions to deferred charges | 9 years |
DEFERRED CHARGES (Schedule of D
DEFERRED CHARGES (Schedule of Deferred Charges) (Details) - USD ($) | Jul. 31, 2020 | Jul. 31, 2019 |
Leasing Charges | ||
Deferred charges | $ 2,986,648 | $ 2,575,822 |
Less accumulated amortization | 1,369,694 | 1,153,996 |
Leasing Brokerage Commissions [Member] | ||
Leasing Charges | ||
Deferred charges | 4,204,638 | 3,578,114 |
Less accumulated amortization | 1,281,010 | 1,076,694 |
Professional Fees For Leasing [Member] | ||
Leasing Charges | ||
Deferred charges | 151,704 | 151,704 |
Less accumulated amortization | $ 88,684 | $ 77,302 |
DEFERRED CHARGES (Schedule of E
DEFERRED CHARGES (Schedule of Estimated Aggregate Amortization Expense) (Details) | Jul. 31, 2020USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2021 | $ 377,689 |
2022 | 353,142 |
2023 | 338,381 |
2024 | 307,765 |
2025 | $ 271,905 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Federal tax basis | ||
Federal tax basis with accumulated depreciation | 9,143,642 | |
Net tax book value | $ 4,720,339 |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of Rent Payments Expenses) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Rent Payments | $ 987,250 | $ 987,250 |
Rent Expense | 1,932,781 | 987,250 |
Jamaica Avenue at 169th Street [Member] | ||
Rent Payments | 624,994 | 624,994 |
Rent Expense | 1,582,344 | 624,994 |
504-506 Fulton Street [Member] | ||
Rent Payments | 362,256 | 362,256 |
Rent Expense | $ 350,437 | $ 362,256 |
RELATED PARTY TRANSACTIONS (S_2
RELATED PARTY TRANSACTIONS (Schedule of Summarizes Assets and Liabilities) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Operating Lease Right-Of-Use Assets | $ 37,077,038 | |
Operating Lease liabilities | $ 29,044,966 | |
Expiration Date | Jul. 31, 2030 | |
Jamaica Avenue at 169th Street [Member] | ||
Operating Lease Right-Of-Use Assets | $ 14,230,659 | |
Operating Lease liabilities | $ 5,455,029 | |
Expiration Date | May 31, 2030 | |
504-506 Fulton Street [Member] | ||
Operating Lease Right-Of-Use Assets | $ 3,063,268 | |
Operating Lease liabilities | $ 3,190,253 | |
Expiration Date | Apr. 30, 2031 |
CAPITALIZATION (Details)
CAPITALIZATION (Details) - shares | Jul. 31, 2020 | Jul. 31, 2019 |
Stockholders' Equity Note [Abstract] | ||
Treasury stock, shares | 162,517 | 162,517 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | Nov. 06, 2018USD ($) |
Settled Litigation [Member] | |
Payment of litigation settlement | $ 635,000 |
REAL ESTATE AND ACCUMULATED D_2
REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) | 12 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 8,796,932 | |||
Initial Cost to Company | ||||
Land | 6,067,805 | |||
Building & Improvements | 19,732,367 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 54,486,072 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 6,067,805 | |||
Building & Improvements | 74,218,439 | |||
Total | $ 80,286,244 | $ 96,333,110 | 80,286,244 | $ 96,333,110 |
Accumulated Depreciation | 32,805,218 | 43,310,270 | 32,805,218 | 43,310,270 |
Operating Lease Right-of-Use-Asset | 37,077,038 | |||
Property and Equipment | 74,538,121 | 90,573,916 | ||
Accumulated depreciation | 33,007,989 | $ 43,512,418 | ||
Investment in Real Estate | ||||
Balance at Beginning of Year | 96,333,110 | 92,061,623 | ||
Improvements | 5,840,914 | 4,271,487 | ||
Retirements | (21,887,780) | |||
Balance at End of Year | 80,286,244 | 96,333,110 | ||
Accumulated Depreciation | ||||
Balance at Beginning of Year | 43,310,270 | 41,382,962 | ||
Additions Charged to Costs and Expenses | 1,626,230 | 1,927,308 | ||
Retirements | (12,131,282) | |||
Balance at End of Year | $ 32,805,218 | $ 43,310,270 | ||
Buildings and Improvements [Member] | Minimum [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Life on Which Depreciation in Latest Income Statement is Computed | 18 years | |||
Buildings and Improvements [Member] | Maximum [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Life on Which Depreciation in Latest Income Statement is Computed | 40 years | |||
Improvements to leased property [Member] | Minimum [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Life on Which Depreciation in Latest Income Statement is Computed | 3 years | |||
Improvements to leased property [Member] | Maximum [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Life on Which Depreciation in Latest Income Statement is Computed | 40 years | |||
Office Furniture and Equipment and Transportation Equipment [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Property and Equipment | 319,683 | |||
Accumulated depreciation | 202,771 | |||
Bond St. Building Brooklyn, NY [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 4,829,832 | |||
Initial Cost to Company | ||||
Land | 3,901,349 | |||
Building & Improvements | 7,403,468 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 24,346,123 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 3,901,349 | |||
Building & Improvements | 31,749,591 | |||
Total | $ 35,650,940 | 35,650,940 | ||
Accumulated Depreciation | 13,934,889 | 13,934,889 | ||
Investment in Real Estate | ||||
Balance at End of Year | 35,650,940 | |||
Accumulated Depreciation | ||||
Balance at End of Year | 13,934,889 | |||
Jamaica, New York [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | ||||
Initial Cost to Company | ||||
Land | ||||
Building & Improvements | ||||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 233,118 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | ||||
Building & Improvements | 233,118 | |||
Total | 233,118 | 233,118 | ||
Accumulated Depreciation | 30,915 | 30,915 | ||
Operating Lease Right-of-Use-Asset | 27,100,000 | |||
Operating Lease Right-of-Use-Asset, Adjustment | 10,200,000 | |||
Investment in Real Estate | ||||
Balance at End of Year | 233,118 | |||
Accumulated Depreciation | ||||
Balance at End of Year | 30,915 | |||
Fishkill, New York Property [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 3,967,100 | |||
Initial Cost to Company | ||||
Land | 594,723 | |||
Building & Improvements | 7,212,116 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 13,314,681 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 594,723 | |||
Building & Improvements | 20,526,797 | |||
Total | 21,121,520 | 21,121,520 | ||
Accumulated Depreciation | 9,428,361 | 9,428,361 | ||
Investment in Real Estate | ||||
Balance at End of Year | 21,121,520 | |||
Accumulated Depreciation | ||||
Balance at End of Year | 9,428,361 | |||
Brooklyn, New York, Jowein Building, Fulton Street and Elm Place Property [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | ||||
Initial Cost to Company | ||||
Land | 1,324,957 | |||
Building & Improvements | 728,327 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 16,505,630 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 1,324,957 | |||
Building & Improvements | 17,233,957 | |||
Total | 18,558,914 | 18,558,914 | ||
Accumulated Depreciation | 6,382,385 | 6,382,385 | ||
Investment in Real Estate | ||||
Balance at End of Year | 18,558,914 | |||
Accumulated Depreciation | ||||
Balance at End of Year | 6,382,385 | |||
Levittown, New York, Hempstead Turnpike [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | ||||
Initial Cost to Company | ||||
Land | 125,927 | |||
Building & Improvements | ||||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | ||||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 125,927 | |||
Building & Improvements | ||||
Total | 125,927 | 125,927 | ||
Accumulated Depreciation | ||||
Investment in Real Estate | ||||
Balance at End of Year | 125,927 | |||
Accumulated Depreciation | ||||
Balance at End of Year | ||||
Circleville, Ohio, Tarlton Road [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | ||||
Initial Cost to Company | ||||
Land | 120,849 | |||
Building & Improvements | 4,388,456 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 86,520 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 120,849 | |||
Building & Improvements | 4,474,976 | |||
Total | 4,595,825 | 4,595,825 | ||
Accumulated Depreciation | 3,028,668 | $ 3,028,668 | ||
Investment in Real Estate | ||||
Balance at End of Year | 4,595,825 | |||
Accumulated Depreciation | ||||
Balance at End of Year | $ 3,028,668 |