MAYS.NASDAQMays J W INC
10-K: J.W. Mays Narrows Loss, Boosts Revenue in 2025
Sentiment:
Annual Report
J.W. Mays, Inc. reported a significantly reduced net loss and increased rental income for fiscal year 2025, despite ongoing challenges in the commercial real estate market.
Capital raiseThe company anticipates incurring an additional $13.4 million in capital expenditures over the next twelve months ending July 31, 2026, of which a major portion is pending financing.The company's primary source of liquidity includes borrowings, and there is no assurance it will be successful in securing additional sources of financing when needed.
Better than expectedNet loss significantly decreased from $(406,568) in 2024 to $(136,240) in 2025.Total revenues increased to $22,469,710 in 2025 from $21,593,264 in 2024.Net cash provided by operating activities substantially increased to $2,520,634 in 2025 from $1,434,730 in 2024.Administrative and general expenses decreased, contributing to the improved loss.
Summary
- Net loss decreased to $(136,240) in fiscal year 2025 from $(406,568) in 2024, improving loss per common share to $(0.07) from $(0.20).
- Total revenues increased to $22,469,710 in 2025 from $21,593,264 in 2024, driven by rent increases and new leases, partially offset by tenant losses and rent concessions.
- Cash flows from operations significantly increased to $2,520,634 in 2025 compared to $1,434,730 in 2024.
- Real estate operating expenses rose to $15,655,276 in 2025 from $15,151,406 in 2024, primarily due to increases in real estate taxes, insurance, and maintenance.
- Administrative and general expenses decreased to $5,168,751 in 2025 from $5,336,672 in 2024, mainly due to reductions in executive payroll and benefit costs.
- The company operates commercial real estate properties in New York (Brooklyn, Jamaica, Levittown, Massapequa, Fishkill) and Circleville, Ohio.
- A mortgage on the Bond Street building in Brooklyn, New York, was fully paid off in December 2024.
- The Fishkill building mortgage has a balloon payment demand provision effective April 1, 2025, through April 1, 2040, though the bank has not communicated intent to accelerate repayment as of October 23, 2025.
- Anticipated capital expenditures for the next twelve months ending July 31, 2026, are $13.4 million, with a major portion pending financing.
Sentiment
Score: 6
Explanation: While the company significantly reduced its net loss and increased revenue, it remains unprofitable. Strong operational cash flow is a positive, but ongoing market challenges in commercial real estate, tenant losses, and the need for future financing for capital expenditures temper the overall sentiment. The Fishkill mortgage balloon payment provision also introduces uncertainty.
Positives
- Net loss significantly decreased to $(136,240) in 2025 from $(406,568) in 2024.
- Total revenues increased to $22,469,710 in 2025 from $21,593,264 in 2024.
- Net cash provided by operating activities substantially increased to $2,520,634 in 2025 from $1,434,730 in 2024.
- Administrative and general expenses decreased to $5,168,751 in 2025 from $5,336,672 in 2024.
- The company successfully paid off the Bond Street building mortgage in December 2024.
- The strategy of pursuing leases with governmental agencies, healthcare providers, and educational institutions continues to serve the company well.
- Management concluded that disclosure controls and procedures, and internal control over financial reporting, were effective as of July 31, 2025.
- Labor relations with employees and the union are considered good.
Negatives
- The company reported a net loss of $(136,240) in 2025, indicating continued unprofitability.
- Real estate operating expenses increased to $15,655,276 in 2025 from $15,151,406 in 2024.
- Significant rental income losses are anticipated from tenants not renewing leases, including approximately $885,000 per annum from the Jowein building, $120,000 per annum from a 9 Bond Street tenant, $142,000 per annum from another 9 Bond Street tenant, and $64,000 per annum from a Jamaica, NY tenant.
- Other income (loss) decreased to $(40,908) in 2025 from $76,537 in 2024, primarily due to the absence of a net realized gain on marketable securities sales from the prior year.
- The Fishkill building mortgage includes a balloon payment demand provision effective April 1, 2025, which could pose a liquidity risk if the bank demands repayment and refinancing is not secured.
- Anticipated capital expenditures of $13.4 million for the next 12 months have a major portion pending financing, creating uncertainty.
Risks
- The controlling shareholder group may vote in favor of its interests, potentially conflicting with other shareholders.
- Perceived conflicts of interest exist due to the relationship between the company and its largest shareholder, an affiliated corporation.
- Changes in economic growth rates and interest rates, both nationally and locally, could impact business operations.
- Existing indebtedness, including the potential for accelerated maturities such as the Fishkill mortgage balloon payment, poses a financial risk.
- The ability to obtain additional financing at reasonable costs and interest rates is not assured.
- Changes in the financial condition of tenants, particularly smaller businesses in a high interest rate environment, could lead to lease defaults.
- Increasing local, state, and federal regulatory requirements and taxes could burden operations.
- Lease cancellations and the loss of key tenants could significantly reduce rental income.
- Changes in cost estimates could negatively impact financial performance.
- The loss of key personnel could disrupt operations.
- War and/or terrorist attacks could significantly impact buildings leased to tenants.
- The continued availability of insurance for various policies at reasonable rates is a concern.
- Outcomes of pending and future litigation could have adverse financial effects.
- Increasing competition from other companies in the commercial real estate market.
- Compliance with loan covenants is critical to avoid default.
- Climate change could introduce unforeseen risks to properties.
- Recoverability of claims against tenants and others, and claims by third parties against the company, are uncertain.
- Changes in estimates used in critical accounting policies could affect reported financial results.
- Cybersecurity threats or incidents, despite implemented controls, could materially affect the company.
- Pandemics and the related trends of office versus remote work practices continue to reduce demand for commercial office and retail space.
- Investment in property development may be limited by increasing costs, potentially leading to forgone revenue opportunities.
- The company may be subject to environmental liability as an owner or operator of old properties, requiring remediation for hazardous elements.
- A contingent liability exists to create a condominium unit for a loading dock if 25 Elm Place, Brooklyn, New York, is sold, transferred, disposed of, or demolished, with undetermined cost.
Future Outlook
The company anticipates incurring an additional $13.4 million in capital expenditures over the next twelve months ending July 31, 2026, with a major portion pending financing. Management is hopeful New York City and the company will continue moving forward from challenging economic times, leveraging its long history of resilience. The strategy of pursuing leases with governmental agencies, healthcare providers, and educational institutions is expected to continue serving the company well. The company intends to negotiate renewals of expiring leases, provided tenants maintain adequate finances. Provisional estimates related to the One Big Beautiful Bill Act (OBBBA) are expected to be finalized by December 31, 2025. The state capital-based tax will be phased out starting with the company's tax year ending July 31, 2027.
Management Comments
- Remote work and on-line shopping trends, which surged during the pandemic, continue to have a significant nationwide effect on office and retail commercial real estate rentals.
- Even with ongoing reduced nationwide and local demand for office and retail rentals, local real estate taxes in New York City have increased while costs of inflation were higher than anticipated.
- Our strategy of pursuing and entering into leases with governmental agencies and health care providers as tenants, as well as a significant educational institution in our Fishkill building, and our ability to retain significant tenants over a long period of time, continues to serve our Company well.
- As Brooklyn continues to become a borough of choice for many individuals residences, businesses are also slowly shifting from Manhattan to the outer boroughs.
- With our long history of resilience when facing difficult market conditions, we are hopeful New York City and our Company will continue moving forward from these challenging economic times.
- I specifically want to thank Mays personnel and our Board colleagues for their ongoing commitment and support, our shareholders for their continuing belief in our Company and its future and our tenants for their continuing loyalty to our Company. (Lloyd J. Shulman)
- The resolution of legal proceedings will not have a material adverse effect on the Consolidated Financial Statements.
- 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, 2025.
- The Company maintains a positive relationship with the bank and remains in full compliance with terms of the loan provisions (regarding Fishkill mortgage).
Industry Context
The company operates within a challenging commercial real estate market, significantly impacted by persistent remote work and online shopping trends that reduce demand for office and retail space nationwide. Its strategy to secure leases with stable tenants like governmental agencies, healthcare providers, and educational institutions is a direct response to these headwinds. The company also notes increasing local real estate taxes in New York City and higher-than-anticipated inflation costs as broader industry challenges. The observation of businesses slowly shifting from Manhattan to outer boroughs like Brooklyn provides a localized positive trend for some of its properties, but the high interest rate environment and reduced liquidity for smaller businesses continue to pose risks to tenant financial health across the industry.
Management Changes
| Role | Previous Person | New Person | Effective Date | Reason |
|---|---|---|---|---|
| Chief Financial Officer and Treasurer | Mark Greenblatt (formerly) | Ward N. Lyke, Jr. | January 2024 | Promotion/Role change; Mr. Lyke previously served as Vice President and Assistant Treasurer. |
| Vice President and Chief Financial Officer | Mark Greenblatt | NA | October 22, 2024 | Transitioned from officer to independent contractor/consultant role. |
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Policy Adoption | The Board adopted a clawback policy effective January 1, 2024, for the recovery of erroneously awarded compensation to executive officers in the event of an accounting restatement. | January 1, 2024 | Enhances accountability for executive compensation in line with SEC requirements. |
| Policy Adoption | An Insider Trading Policy was made effective as of June 3, 2025, for directors, officers, and employees regarding trading in company securities and securities of business partners. | June 3, 2025 | Strengthens compliance with federal and state securities laws and prevents insider trading. |
| Oversight Structure | The Board maintains oversight responsibility for cybersecurity risks, primarily through the Audit Committee, which receives periodic updates from management. The CFO, Ward Lyke, provides leadership for cybersecurity risk management processes. | Ongoing | Ensures robust management and mitigation of cybersecurity threats to critical information systems. |
| Accounting Standard Adoption | The company adopted ASU No. 2023-07, Segment Reporting, on its July 31, 2025 annual report, identifying the CEO as the Chief Operating Decision Maker (CODM) and determining it has one operating segment. | July 31, 2025 | Aligns segment reporting with new FASB requirements, providing clearer insights into operational decision-making. |
| Accounting Standard Evaluation | The company is evaluating the effect of ASU No. 2023-09, Income Taxes, which will require additional disclosures in its income tax rate reconciliation and disaggregation of income taxes paid. | NA (evaluation in progress) | Expected to enhance transparency in income tax disclosures upon adoption. |
| Accounting Standard Evaluation | The company is evaluating the effect of ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, which will require disclosure of employee compensation and depreciation amounts in expense captions. | NA (evaluation in progress) | Expected to provide more detailed insights into expense components upon adoption. |
Legal Proceedings
- The company is subject to various legal proceedings, claims, and litigation arising in the ordinary course of business operations, including contractual disputes and third-party slip and fall or personal injury claims.
- Management believes the resolution of these matters will not have a material adverse effect on the Consolidated Financial Statements.
Related Party Transactions
- The company has three 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.
- These leases are for properties at Jamaica Avenue at 169th Street, Jamaica, New York; 504-506 Fulton Street, Brooklyn, New York; and 508 Fulton Street (acquired by Landlord in December 2024, with J.W. Mays beginning rent payments in January 2025).
- Total rent payments to Landlord were $1,020,519 in 2025 and $987,250 in 2024.
- Total rent expense relating to these leases was $1,574,285 in 2025 and $1,531,877 in 2024.
- Upon termination of the Jamaica, New York lease (currently 2035), all premises included in operating lease right-of-use assets plus leasehold improvements will be turned over to the Landlord.
Stakeholder Impact
- Shareholders: The reduced net loss and increased revenue are positive, but continued unprofitability and potential financing needs for capital expenditures could impact future returns. The Fishkill mortgage balloon payment is a risk.
- Employees: Labor relations with the 28 full-time employees and their union are considered good. Executive payroll and benefit costs were reduced.
- Customers (Tenants): Rent concessions were granted to some tenants, while others expanded space or signed new leases. However, several tenants did not renew or terminated leases, leading to significant rental income losses. The company emphasizes retaining tenants and aggressively marketing available space.
- Creditors: The company paid off one mortgage and maintains a positive relationship with its bank for the remaining mortgage, which has a balloon payment provision. Future capital expenditures are pending financing.
- Management: Executive officers have three-year employment agreements. Ward Lyke, Jr. is now CFO, and Mark Greenblatt transitioned to a consulting role.
Next Steps
- Negotiate renewals of expiring leases, provided tenants maintain adequate finances.
- Finalize provisional estimates related to the One Big Beautiful Bill Act (OBBBA) by December 31, 2025.
- Incur an additional $13.4 million in capital expenditures over the next twelve months ending July 31, 2026, with a major portion pending financing.
- Hold the Annual Meeting of Shareholders on Tuesday, November 25, 2025.
- Negotiate a new union contract as the current one expires November 30, 2025.
Key Dates
| Date | Description |
|---|---|
| 1927-07-06 | Company incorporated under the laws of the State of New York. |
| 1978-11 | Lloyd J. Shulman became President. |
| 1984-02 | Ward N. Lyke, Jr. became Vice President. |
| 1995-03 | George Silva became Vice President-Operations. |
| 1996-11 | Lloyd J. Shulman became Chairman of the Board and Chief Executive Officer. |
| 1999-11-08 | Common stock commenced trading on The Nasdaq Capital Market. |
| 2003-08-01 | Ward N. Lyke, Jr. became Assistant Treasurer. |
| 2006-08-01 | NASDAQ became operational as an exchange. |
| 2006-10 | Company entered into a lease agreement with a restaurant in Levittown, New York. |
| 2008-05 | Restaurant in Levittown, New York, opened a new 10,000 square foot building. |
| 2011-08-01 | Executive officers' three-year employment agreements became effective (renewed every three years). |
| 2019-07 | Company leased 47,000 square feet to a community college at its Fishkill, New York building. |
| 2019-11 | Company refinanced the remaining balance of a $6,000,000 loan for the Bond Street building. |
| 2020-03 | Company obtained a $4,000,000 loan to finance renovations and brokerage commissions relating to space leased at the Fishkill, New York building. |
| 2022-07 | Company entered into an agreement with Landlord for the Jamaica Property, giving four five-year option periods through May 31, 2050. |
| 2022-09 | Levittown restaurant extended its lease for an additional five years expiring May 3, 2028. |
| 2023-04 | Company exercised the first five-year option period for the Jamaica Property lease, extending it to May 31, 2035. |
| 2023-08-01 | Executive officers' employment agreements renewed, expiring July 31, 2026. |
| 2024-01 | Ward N. Lyke, Jr. became Chief Financial Officer and Treasurer. |
| 2024-01-01 | Clawback policy adopted by the Board became effective. |
| 2024-07 | Internal Revenue Service (IRS) initiated a one-year examination of the tax year ending July 31, 2022 (now closed with no findings). |
| 2024-08 | A tenant at the Jowein building extended its lease through June 30, 2025. |
| 2024-08 | Company leased 2,051 square feet to an office tenant at the Jamaica, New York premises for ten years, with rent commencing January 1, 2025. |
| 2024-08 | A tenant at the Circleville, Ohio building extended its warehouse lease from May 31, 2026, for an additional three years to May 31, 2029. |
| 2024-10-01 | Company leased approximately 12,500 square feet at the Fishkill, New York building for storage space for three months, expiring December 31, 2024. |
| 2024-10-22 | Amended Consulting Agreement with Mark Greenblatt became effective. |
| 2024-11 | A tenant at the 9 Bond Street building expanded their space by 130 square feet for increased rent of $2,400 annually through April 30, 2026. |
| 2024-11 | Company leased 305 square feet of office space at the Jowein building for two years at an annual rent of $7,320. |
| 2024-11 | A tenant at the Jowein building agreed to rent an additional 3,920 square feet of office space for increased rent of $12,087 a month. |
| 2024-11-01 | Size of leased premises at Circleville, Ohio building expanded by 84,000 feet. |
| 2024-12 | Weinstein Enterprises, Inc. (Landlord) purchased 25% of the 508 Fulton Street property. |
| 2024-12-01 | Bond Street building mortgage was fully paid off. |
| 2025-01 | Company began making rent payments to Landlord for the 508 Fulton Street property. |
| 2025-01 | A tenant at the 9 Bond Street building was given a six-month rent concession of $25,000 per month (February to July 2025) and a deferral of $54,825 receivable. |
| 2025-01 | Tenant improvements for two tenants at the Jamaica, New York premises were completed. |
| 2025-02 | A tenant at the Jamaica, New York premises extended their lease to January 2030 with a yearly rent of $24,000. |
| 2025-03 | A tenant at the Jowein building exercised their first of three six-month extensions to February 2026, with a monthly rent of $30,869. |
| 2025-03 | Company leased 6,761 square feet of office space at the Jamaica, New York premises for fifteen years, effective August 2025. |
| 2025-03-01 | A tenant occupying 1,600 square feet at the 9 Bond Street building terminated their lease. |
| 2025-04 | Company leased 2,800 square feet of office space at the 9 Bond Street building for ten years, with rent commencement in October 2025. |
| 2025-04-01 | The bank may demand a balloon payment for the full amount outstanding on the Fishkill building loan. |
| 2025-05 | A tenant at the Jowein building provided notice they would not be renewing leases ending June 30, 2025, and January 19, 2026. |
| 2025-05 | A tenant at the 9 Bond Street building provided notice they would not be renewing their lease ending June 30, 2025. |
| 2025-05 | A tenant at the Jowein building extended its lease through September 30, 2025. |
| 2025-06-03 | Insider Trading Policy became effective. |
| 2025-06 | A tenant at the Jamaica, New York premises provided notice they would be vacating the space effective July 30, 2025. |
| 2025-07 | Company leased 1,800 square feet of office space at the Jowein building on a month-to-month basis. |
| 2025-07-04 | The One Big Beautiful Bill Act (OBBBA) was signed into law in the United States. |
| 2025-07-31 | Fiscal year ended. |
| 2025-08 | A tenant at the 9 Bond Street building was given a six-month rent concession of $40,000 per month (August 2025 to January 2026). |
| 2025-08 | Company leased 20,000 square feet of retail space at the Massapequa building for five years. |
| 2025-08 | Company leased 5,500 square feet of retail space at the Jowein building. |
| 2025-08 | Company exercised the second of four five-year option periods to extend the Jamaica Avenue at 169th Street lease through May 31, 2040. |
| 2025-08 | Improvements for a third tenant at the Jamaica, New York premises were completed and placed in service. |
| 2025-09-02 | 2,015,780 shares of common stock outstanding. |
| 2025-10 | A tenant at the Jowein building extended their lease from May 2026 to October 2026 and was given a rent concession effective November 2025 to October 2026. |
| 2025-10-23 | Filing date of the Annual Report on Form 10-K. |
| 2025-11-25 | Annual Meeting of Shareholders will be held. |
| 2025-11-30 | Union contract expiration date. |
| 2025-12-31 | Expected finalization of provisional estimates related to the One Big Beautiful Bill Act (OBBBA). |
| 2026-07-31 | Executive officers' employment agreements expire. |
| 2027-07-31 | State capital-based tax will be phased out beginning with this tax year. |
| 2028-05-03 | Levittown restaurant lease expires (with two five-year renewal options). |
| 2029-05-31 | Circleville, Ohio warehouse lease extended to this date. |
| 2030-05-14 | Massapequa lease expires. |
| 2031-04-30 | 504-506 Fulton Street lease expiration. |
| 2035 | Federal net operating loss carryforwards begin to expire. |
| 2035-05-31 | Jamaica Avenue at 169th Street lease expiration. |
| 2040-04-01 | Fishkill building mortgage final payment date. |
| 2043-12-08 | One lease at 9 Bond Street expires, with a renewal option through December 8, 2073. |
| 2044-04-30 | 508 Fulton Street lease expiration. |
| 2050-05-31 | Jamaica Property lease option periods total through this date. |
| 2073 | Longest lease term for properties extends to this year. |
Recommendation
holdWhile the company showed improved financial performance with a reduced net loss and increased revenue, it remains unprofitable. The strong cash flow from operations is a positive, but this is offset by significant tenant losses, increased operating expenses, and the uncertainty surrounding the Fishkill mortgage balloon payment and future capital expenditure financing. The commercial real estate market faces headwinds from remote work and online retail. A 'hold' recommendation is appropriate as the company navigates these challenges, showing some signs of improvement but still facing considerable risks and needing to secure future financing. Investors should monitor the company's ability to fill vacant spaces, manage its debt, and adapt to market trends.
Keywords
Commercial Real Estate, Property Management, SEC Filing, 10-K, Financial Results, Rental Income, New York Real Estate, Ohio Real Estate, Leasing, Risk Factors, Corporate Governance, Financial Performance, Real Estate Investment, Tenant Relations, Liquidity
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