Operating Leases

3 Months Ended

Oct. 31, 2022

6. Operating Leases:

Lessor

The Company leases office and retail space to tenants under operating leases in commercial buildings. Most 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 consolidated statements of operations.

The following table disaggregates the Company's revenues by lease and non-lease components:

	Three Months Ended October 31,
	2022		2021
Base rent - fixed	$	5,330,541	$	4,675,832
Reimbursements of common area costs		177,365		160,317
Non-lease components (real estate taxes)		261,828		243,398
Rental income	$	5,769,734	$	5,079,547

Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows:

	As of October 31, 2022
Fiscal Year	Company Owned Property		Leased Property		Total
For the remainder of 2023	$	9,403,294	$	4,043,967	$	13,447,261
2024		8,720,935		3,267,324		11,988,259
2025		8,191,367		2,689,008		10,880,375
2026		7,342,321		2,554,525		9,896,846
2027		6,631,391		2,411,741		9,043,132
2028		5,818,355		2,365,965		8,184,320
After 2028		25,800,170		3,090,048		28,890,218
Total	$	71,907,833	$	20,422,578	$	92,330,411

Lessee

The Company’s 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 July 2022, the Company entered into lease agreements with its landlord for two of its properties as follows:

Jamaica Avenue at 169th Street, Jamaica, New York - Giving the Company four five-year option periods to extend its lease beyond the current expiration date of May 31, 2030 for a total of twenty years through May 31, 2050. As of October 31, 2022, it is not reasonably certain such options to extend the lease will be exercised by the Company.

2)	504-506 Fulton Street, Brooklyn, New York – Modification of the lease agreement to increase monthly lease payments from $30,188 per month to $34,716 per month commencing on May 1, 2026 through April 30, 2031.

The landlord is Weinstein Enterprises, Inc., an affiliated company principally owned by the Chairman of the Board of Directors who also principally owns the Company.

The effect of the lease modification for 504-506 Fulton Street, Brooklyn, NY on the measurement of operating lease right-of-use assets, liabilities and rent expense follows:

	Increase From July 2022 Modification
	Operating Lease Right- of-Use-Asset		Operating Lease Liability		Monthly Rent Expense
Increase resulting from July 2022 lease modification	$	94,412	$	94,412	$	2,563

Operating lease costs for leased real property was exceeded by sublease rental income from the Company’s real estate operations as follows:

	Three Months Ended October 31,
	2022			2021
Sublease income	$	1,839,075		$	1,786,176
Operating lease cost		(840,400	)		(832,711	)
Excess of sublease income over lease cost	$	998,675		$	953,465

	Three Months Ended October 31,
Other information:	2022		2021
Operating cash flows from operating leases	$	531,288	$	527,214

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of October 31, 2022:

Period Ended	Operating Leases
October 31, 2023	$	2,137,167
October 31, 2024		2,154,504
October 31, 2025		2,171,537
October 31, 2026		2,272,955
October 31, 2027		2,333,737
Thereafter		22,672,158
Total undiscounted cash flows		33,742,058
Less: present value discount		(7,477,609	)
Total Lease Liabilities	$	26,264,449

As of October 31, 2022, our operating leases had a weighted average remaining lease term of 16.52 years and a weighted average discount rate of 2.96%.