Performance Analysis:
J. W. Mays Inc. reported a net income of $44,738 or $0.02 per share in the three months ended January 31, 2023, compared to a net loss of $(195,830) or $(0.10) per share for the same period in the prior year. The improvement in the 2023 three months was primarily due to an increase in rental income from several new tenants combined with increased rents from existing tenants, a decrease in bad debt expense, and increases in fair value of marketable securities; partially offset by increases in real estate taxes, building maintenance costs, and state capital-based franchise taxes.
In the six months ended January 31, 2023, J. W. Mays Inc. reported net income of $104,255 or $0.05 per share compared to a net loss of $(586,580) or $(0.29) per share for the same period in the prior year. The improvement was primarily due to an increase in rental income from several new tenants combined with increased rents from existing tenants, a decrease in bad debt expense, and increases in fair value of marketable securities; partially offset by increases in real estate taxes, building maintenance costs, and state capital-based franchise taxes.
The company's revenues increased to $11,607,553 in the current six months from $10,407,896 in the comparable 2022 six months primarily due to rental income from several new tenants and increased rents from existing tenants. However, the expenses also increased primarily due to increases in real estate taxes and building maintenance costs.
Forward Looking Analysis:
J. W. Mays, Inc.'s financial performance has improved due to an increase in rental income from new and existing tenants, alongside a decrease in bad debt expense, and an increase in the fair value of marketable securities. The company's competitive position is stable, considering the lease extensions exercised by tenants at three of its properties in New York. The CEO, Harold Mays, stated, “we continue our efforts to increase occupancy at our properties, with a focus on attracting new and retention of current tenants.”
The current trend in the industry reflects the impact of COVID-19 on the real estate market. As a result, there may be fluctuations in occupancy rates and rental income. The company has not provided any guidance related to the impact of the pandemic on its operations. It is, however, worth noting that the lease extensions exercised by tenants provide stability to the company's rental income for the time being.
In conclusion, while J. W. Mays, Inc.'s financial performance has improved in the six months ended January 31, 2023, there remain uncertainties with respect to the potential impact of the pandemic on the real estate market. Investors may want to keep an eye on future financial results and any guidance provided by the company regarding the impact of COVID-19.