v3.26.1
Operating Leases
9 Months Ended
Apr. 30, 2026
Operating Leases  
Operating Leases

5. 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
April 30
   Nine Months Ended
April 30
 
   2026   2025   2026   2025 
Base rent - fixed  $4,791,801   $5,108,916   $14,289,285   $15,380,462 
Reimbursements of common area costs   169,193    190,017    457,324    491,610 
Non-lease components (real estate taxes)   353,757    333,218    1,031,038    942,652 
Rental income  $5,314,751   $5,632,151   $15,777,647   $16,814,724 

 

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

 

            
   As of April 30, 2026 
Fiscal Year  Company
Owned
Property
   Leased
Property
   Total 
For the remainder of 2026  $3,035,429   $1,520,879   $4,556,308 
2027   10,365,723    5,093,778    15,459,501 
2028   9,961,035    4,948,347    14,909,382 
2029   9,196,290    4,008,463    13,204,753 
2030   7,553,790    2,359,731    9,913,521 
2031   6,246,983    1,719,222    7,966,205 
After 2031   31,581,376    6,639,757    38,221,133 
Total  $77,940,626   $26,290,177   $104,230,803 

 

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. As of April 30, 2026, our operating leases had a weighted average remaining lease term of 15.55 years and a weighted average discount rate of 3.75%.

 

In August 2025, the Company exercised the second of four five-year option periods with its landlord to extend the Jamaica Avenue at 169th Street, Jamaica, New York property lease beyond May 31, 2035 for a total of five years through May 31, 2040.

 

The effect of the five-year lease extension on the measurement of operating right-of-use assets, liabilities, and monthly rent expense follows:

 

               
    Jamaica Avenue at 169th Street 
    Increase in    Increase in    Decrease in 
    Operating    Operating    Monthly 
    Lease Right-    Lease    Rent 
    of-Use Asset    Liability    Expense 
Remeasurement change resulting from August 2025 lease extension  $1,575,690   $1,575,690   $(14,766)

 

As of April 30, 2026, it is not reasonably certain the remaining two options to extend the lease from May 31, 2040 to May 31, 2050 will be exercised by the Company. The landlord is Weinstein Enterprises, Inc., an affiliated company principally owned by the Chairman of the Board of Directors who also is the largest stockholder of the Company.

 

Sublease rental income from the Company’s real estate operations for leased real property exceeded operating lease costs as follows:

 

                       
   Three Months Ended
April 30
   Nine Months Ended
April 30
 
   2026   2025   2026   2025 
Sublease income  $1,868,414   $1,863,814   $5,599,971   $5,529,394 
Operating lease cost   (705,166)   (749,726)   (2,115,498)   (2,248,031)
Excess of sublease income over lease cost  $1,163,248   $1,114,088   $3,484,473   $3,281,363 

 

                       
  Three Months Ended
April 30
   Nine Months Ended
April 30
 
Other information:  2026   2025   2026   2025 
Operating cash flows from operating leases  $562,890   $542,501   $1,657,419   $1,623,144 

 

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of April 30, 2026:

 

     
Period Ended April 30,  Operating
Leases
 
2027  $2,323,725 
2028   2,343,903 
2029   2,364,753 
2030   2,386,297 
2031   1,870,411 
Thereafter   21,126,482 
Total undiscounted cash flows   32,415,571 
Less: present value discount   (7,771,959)
Total Lease Liabilities  $24,643,612