10-Q

FORM 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended  October 31, 2016

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission file number 1-3647

J.W. Mays, Inc.(Exact name of registrant as specified in its charter)

New York	11-1059070
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
9 Bond Street, Brooklyn, New York	11201-5805
(Address of principal executive offices)	(Zip Code)

(Registrant's telephone number, including area code) 718-624-7400

Not Applicable(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes     X      No         .

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes     X      No         .

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ____    Accelerated filer ____    Non-accelerated filer ____    Smaller reporting company    X   .

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes            No   X   .

Indicate the number of shares outstanding of the issuer's common stock, as of the latest practicable date.

Class	Outstanding at December 8, 2016
Common Stock, $1 par value	2,015,780 shares
	This report contains 24 pages.

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J. W. MAYS, INC.

INDEX

				Page No.
Part I - Financial Information:
	Item 1. Financial Statements
		Condensed Consolidated Balance Sheets – October 31, 2016 (unaudited)
			and July 31, 2016	3
		Condensed Consolidated Statements of Operations and Retained Earnings
			– Three months ended October 31, 2016 and 2015 (unaudited)	4
		Condensed Consolidated Statements of Comprehensive Income
			– Three months ended October 31, 2016 and 2015 (unaudited)	5
		Condensed Consolidated Statements of Cash Flows
			– Three months ended October 31, 2016 and 2015 (unaudited)	6
		Notes to Condensed Consolidated Financial Statements		7 - 15
	Item 2. Management's Discussion and Analysis of Financial Condition
			and Results of Operations	16 - 18
	Item 3. Quantitative and Qualitative Disclosures About Market Risk			18
	Item 4. Controls and Procedures			18
Part II - Other Information:
	Item 1. Legal Proceedings			19
	Item 1A. Risk Factors			19
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			19
	Item 3. Defaults Upon Senior Securities			19
	Item 4. Mine Safety Disclosures			19
	Item 5. Other Information			19
	Item 6. Exhibits and Reports on Form 8-K			19-20
	Signatures			21
	Exhibit 31 Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
		31.1 - Chief Executive Officer		22
		31.2 - Chief Financial Officer		23
	Exhibit 32 Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
		18 U.S.C. Section 1350		24

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Part 1 - Financial Information
      Item 1 - Financial Statements

J. W. MAYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	October 31		July 31
	2016		2016
	(Unaudited)		(Audited)
ASSETS
Property and Equipment - Net (Notes 5 and 6)	$	49,168,430	$	49,064,737
Current Assets:
Cash and cash equivalents (Note 4)		6,016,061		5,228,826
Receivables (Note 4)		581,410		293,317
Income taxes refundable		13,897		17,004
Prepaid expenses		926,073		1,553,217
Total current assets		7,537,441		7,092,364
Other Assets:
Deferred charges		3,348,031		3,348,031
Less: accumulated amortization		1,468,867		1,404,267
Net		1,879,164		1,943,764
Security deposits		1,161,485		1,159,338
Unbilled receivables (Notes 4 and 8)		2,127,814		2,222,846
Marketable securities (Notes 3 and 4)		2,002,818		2,062,205
Total other assets		7,171,281		7,388,153
TOTAL ASSETS	$	63,877,152	$	63,545,254
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-Term Debt:
Mortgage payable (Note 5)	$	5,538,505	$	5,572,477
Security deposits payable		902,117		897,965
Payroll and other accrued liabilities		60,916		90,917
Deferred Income Taxes (Note 1)		4,825,000		4,617,000
Total long-term debt		11,326,538		11,178,359
Current Liabilities:
Accounts payable		84,931		80,343
Payroll and other accrued liabilities		2,207,945		2,153,850
Deferred revenue (Note 13)		729,166		1,020,833
Other taxes payable		4,203		6,963
Current portion of note payable - related party (Note 7)		1,000,000		1,000,000
Current portion of long-term debt (Note 5)		135,397		133,969
Total current liabilities		4,161,642		4,395,958
TOTAL LIABILITIES		15,488,180		15,574,317
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
Unrealized gain on available-for-sale securities - net of deferred taxes of
$113,000 at October 31, 2016 and $136,000 at July 31, 2016		220,551		264,541
Retained earnings		43,931,731		43,469,706
		49,676,824		49,258,789
Less common stock held in treasury, at cost - 162,517
shares at October 31, 2016 and at July 31, 2016 (Note 11)		1,287,852		1,287,852
Total shareholders' equity		48,388,972		47,970,937
Contingencies (Note 14)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	63,877,152	$	63,545,254

See Notes to Condensed Consolidated Financial Statements.

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J. W. MAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS

	Three Months Ended
	October 31
	2016			2015
	(Unaudited)			(Unaudited)
Revenues
Rental income (Notes 4 and 8)	$	4,480,288		$	4,277,394
Recovery of real estate taxes		10,952			–
Revenue to temporarily vacate lease (Note 13)		291,667			291,667
Total revenues		4,782,907			4,569,061
Expenses
Real estate operating expenses		2,527,935			2,408,599
Administrative and general expenses		1,090,603			1,055,982
Depreciation and amortization (Note 6)		412,627			406,750
Total expenses		4,031,165			3,871,331
Income from operations before investment income,
interest expense and income taxes		751,742			697,730
Investment income and interest expense:
Investment income (Note 3)		3,161			7,222
Interest expense (Notes 5, 7 and 10)		(61,878	)		(64,577	)
		(58,717	)		(57,355	)
Income from operations before income taxes		693,025			640,375
Income taxes provided		231,000			239,000
Net income		462,025			401,375
Retained earnings, beginning of period		43,469,706			41,951,946
Retained earnings, end of period	$	43,931,731		$	42,353,321
Income per common share (Note 2)	$	.23		$	.20
Dividends per share	$	–		$	–
Average common shares outstanding		2,015,780			2,015,780

See Notes to Condensed Consolidated Financial Statements.

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J. W. MAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended
	October 31
	2016			2015
	(Unaudited)			(Unaudited)
Net income	$	462,025		$	401,375
Unrealized (loss) on available-for-sale securities:
Unrealized (losses) arising during the period,
net of taxes (benefit) of ($23,000) and ($11,000) for the three
months ended October 31, 2016 and 2015, respectively,		(43,990	)		(19,404	)
Comprehensive income	$	418,035		$	381,971

See Notes to Condensed Consolidated Financial Statements.

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J. W. MAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended
	October 31
	2016			2015
	(Unaudited)			(Unaudited)
Cash Flows From Operating Activities:
Net income	$	462,025		$	401,375
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		412,627			406,750
Amortization of deferred charges		64,600			80,879
Amortization of deferred finance costs		5,718			5,700
Realized loss on sale of marketable securities		7,421			-
Other assets - unbilled receivables		95,032			94,936
Deferred income taxes		231,000			239,000
Deferred revenue		(291,667	)		(291,667	)
Changes in:
Receivables		(288,093	)		131,187
Income taxes refundable		3,107			(174,654	)
Prepaid expenses		627,144			578,417
Accounts payable		4,588			29,509
Payroll and other accrued liabilities		24,094			(207,296	)
Other taxes payable		(2,760	)		(2,709	)
Cash provided by operating activities		1,354,836			1,291,427
Cash Flows From Investing Activities:
Capital expenditures		(516,320	)		(821,347	)
Security deposits		(2,147	)		(3,679	)
Marketable securities:
Receipts from sales or maturities		115,173			-
Payments for purchases		(130,197	)		(9,541	)
Cash (used) by investing activities		(533,491	)		(834,567	)
Cash Flows From Financing Activities:
Increase - security deposits		4,152			1,579
Mortgage and other debt payments		(38,262	)		(36,895	)
Cash (used) by financing activities		(34,110	)		(35,316	)
Increase in cash and cash equivalents		787,235			421,544
Cash and cash equivalents at beginning of period		5,228,826			4,085,704
Cash and cash equivalents at end of period	$	6,016,061		$	4,507,248

See Notes to Condensed Consolidated Financial Statements.

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J. W. MAYS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.

Accounting Records and 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 Company’s 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, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation and amortization, 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. The interim financial statements are prepared pursuant to the requirements for reporting on Form 10-Q. The July 31, 2016 condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes included in the Company's latest Form 10-K Annual Report for the fiscal year ended July 31, 2016. In the opinion of management, the interim financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for interim periods. The results of operations for the current period are not necessarily indicative of the results for the entire fiscal year ending July 31, 2017. The computation of the annual expected effective tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected operating income for the year and future periods, projections of the proportion of income (or loss), and permanent and temporary differences. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is acquired, or as additional information is obtained. To the extent that the estimated annual effective tax rate changes during a quarter, the effect of the change on prior quarters is included in tax expense for the current quarter. As of July 31, 2015 and 2016, the Company has a federal net operating loss approximating $6,609,000 and $6,576,000, respectively, which is available to offset future taxable income. In addition, as of July 31, 2015 and July 31, 2016, the Company had state and city net operating loss carryforwards of approximately $9,000,000 and $8,943,000, respectively, available to offset future state and city taxable income. The net operating loss carryforwards will begin to expire, if not used, in 2035. New York State and New York City taxes for years through July 31, 2015 were calculated using the higher of taxes based on income or the respective capital-based franchise taxes. In April 2014, the New York State governor signed into law legislation overhauling the New York State franchise tax on corporations. The changes in the law were effective for the Company’s year ended July 31, 2016. The state capital-based tax will be phased out over a 7-year period. The Company anticipates New York State taxes will be based on capital through 2022, and New York City taxes will be based on capital for the foreseeable future. Capital based franchise taxes are recorded to administrative and general expense. Due to the application of the capital-based tax while the net operating loss still applies, or due to the possible absence of State taxable income in the years beyond 2022 to which the State loss can be carried, the Company has not recorded the tax benefit of its New York State and New York City net operating loss carryforwards.

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	Recently issued accounting standards not yet adopted:
	In May 2014, the FASB issued 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. The adoption of the update on August 1, 2018 is not expected to have a significant impact on our consolidated financial statements.
	In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”) which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (“ASU 2016-10”) which provides further guidance on identifying performance obligations and improves the operability and understandability of the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016- 12”) which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. ASU 2016-08, ASU 2016-10 and ASU 2016-12 have the same effective date and transition requirements as ASU 2014-09. The Company is currently evaluating the impact of the adoption of the new standard on its consolidated financial statements and related disclosures.
	In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 is intended to increase transparency and comparability among organizations of 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. Lessor accounting remains similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. 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. Entities will be required to recognize and measure leases as of the earliest period presented using a modified retrospective approach. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new standard will be effective for the Company for the fiscal year beginning August 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new standard on its consolidated financial statements and related disclosures.
2.	Income Per Share of Common Stock:
	Income per share has been computed by dividing the net income for the periods by the weighted average number of shares of common stock outstanding during the periods, adjusted for the purchase of treasury stock. Shares used in computing income per share were 2,015,780 for the three months ended October 31, 2016 and October 31, 2015.
3.	Marketable Securities:
	The Company categorizes marketable securities as either trading, available-for-sale or held-to-maturity. Trading securities are carried at fair value with unrealized gains and losses included in income. Available-for-sale securities are carried at fair value measurements 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 are carried at amortized cost. 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 three months ended October 31, 2016 and July 31, 2016.

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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 entity’s 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 October 31, 2016 and July 31, 2016.

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 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.

-9-

In accordance with the provisions of Fair Value Measurements, the following are the Company's financial assets measured on a recurring basis presented at fair value.

	Fair value measurements at reporting date
	Total								Total
	October 31,								July 31,
Description	2016		Level 1		Level 2		Level 3		2016		Level 1		Level 2		Level 3
Assets:
Marketable securities -
available-for-sale	$	2,002,818	$	2,002,818	$	–	$	–	$	2,062,205	$	2,062,205	$	–	$	–

As of October 31, 2016 and July 31, 2016, the Company's marketable securities were classified as follows:

	October 31, 2016								July 31, 2016
			Gross		Gross						Gross		Gross
			Unrealized		Unrealized		Fair				Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
Noncurrent:
Available-for-sale:
Mutual funds	$	552,628	$	134,648	$	–	$	687,276	$	551,573	$	143,026	$	–	$	694,599
Equity securities		1,116,639		200,736		1,833		1,315,542		1,110,091		258,869		1,354		1,367,606
	$	1,669,267	$	335,384	$	1,833	$	2,002,818	$	1,661,664	$	401,895	$	1,354	$	2,062,205

The Company's debt and equity securities, gross unrealized losses and fair value, aggregated by investment category and length of time that the investment securities have been in a continuous unrealized loss position are as follows:

	October 31, 2016				July 31, 2016
			Less Than				Less Than
	Fair Value		12 Months		Fair Value		12 Months
Corporate equity securities	$	116,396	$	1,833	$	120,288	$	1,354

Investment income consists of the following:

	Three Months Ended
	October 31
	2016			2015
Loss on sale of marketable securities	$	(7,421	)	$	–
Interest income		3,304			909
Dividend income		7,278			6,313
Total	$	3,161		$	7,222

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4.	Financial Instruments and Credit Risk Concentrations:
	Financial instruments that are potentially subject to concentrations of credit risk consist principally of marketable securities, cash and cash equivalents and receivables. Marketable securities and cash and cash equivalents are placed with multiple financial institutions and multiple instruments to minimize risk. No assurance can be made that such financial institutions and instruments will minimize all such risk. The Company derives rental income from forty-nine tenants, of which one tenant accounted for 18.66%, another tenant accounted for 15.10% and a third tenant accounted for 10.52% of rental income during the three months ended October 31, 2016. The three months ended October 31, 2015 had one tenant account for 18.81% and another tenant account for 15.56% of rental income. No other tenant accounted for more than 10% of rental income during the same periods. The Company has one irrevocable Letter of Credit totaling $230,000 at October 31, 2016 and July 31, 2016 provided by a tenant as a security deposit.
5.	Long-Term Debt – Mortgage:

			October 31, 2016				July 31, 2016
	Current
	Annual	Final	Due		Due		Due		Due
	Interest	Payment	Within		After		Within		After
	Rate	Date	One Year		One Year		One Year		One Year
Bond St. building, Brooklyn, NY	3.54%	2/1/2020	$	158,269	$	5,589,994	$	156,846	$	5,629,679
Less: Deferred financing costs				22,872		51,489		22,877		57,202
Total			$	135,397	$	5,538,505	$	133,969	$	5,572,477
The Company, on August 19, 2004, closed a loan with a bank for a $12,000,000 multiple draw term loan. The loan consisted of: a) a permanent, first mortgage loan to refinance an existing first mortgage loan affecting the Fishkill, New York property, which matured on July 1, 2004 (the “First Permanent Loan”), b) a permanent subordinate mortgage loan in the amount of $1,870,000 (the “Second Permanent Loan”), and c) multiple, successively subordinate loans in the amount of $8,295,274 (“Subordinate Building Loans”). The Company, in February 2008, converted the loan totaling $12,000,000 to a seven (7) year permanent mortgage loan. The interest rate on conversion was 6.98%. On January 9, 2015, the Company refinanced the loan for $6,000,000, which included the outstanding balance as of January 2015 in the amount of $5,347,726 and an additional borrowing of $652,274. The loan is for a period of five years with a payment based on a twenty-five year amortization period. The interest rate for this period is fixed at 3.54% per annum. The mortgage loan is secured by the Bond Street building in Brooklyn, New York.

-11-

6. Property and Equipment – at cost:

	October 31		July 31
	2016		2016
Property:
Buildings and improvements	$	78,063,803	$	77,693,718
Improvements to leased property		1,478,012		1,478,012
Land		6,067,805		6,067,805
Construction in progress		1,843,527		1,697,292
		87,453,147		86,936,827
Less accumulated depreciation		38,410,937		38,008,810
Property - net		49,042,210		48,928,017
Fixtures and equipment and other:
Fixtures and equipment		144,545		144,545
Other fixed assets		195,478		195,478
		340,023		340,023
Less accumulated depreciation		213,803		203,303
Fixtures and equipment and other - net		126,220		136,720
Property and equipment - net	$	49,168,430	$	49,064,737
Construction in progress includes:
	October 31		July 31
	2016		2016
Building improvements at 9 Bond Street in Brooklyn, NY	$	114,695	$	–
Building improvements at 25 Elm Place in Brooklyn, NY		1,728,832		1,697,292
	$	1,843,527	$	1,697,292

7.	Note Payable - Related Party:
	On December 15, 2004, the Company borrowed $1,000,000 on an unsecured basis from a former director of the Company, who at the time was also a greater than 10% beneficial owner of the outstanding common stock of the Company. The former director passed away in November 2012 and the note is currently an asset of the estate of the former director. Interest payments pursuant to the note have been assigned to a trust provided for by the will of the deceased former director. The loan has been repeatedly renewed to its current maturity date of December 15, 2016 at an interest rate of 5% per annum. The note is prepayable in whole or in part at any time without penalty. The constant quarterly payment of interest is $12,500. The interest paid was $12,500 for each of the three month periods ended October 31, 2016 and 2015. It is the intention of the Company to pay this loan in full upon its maturity.
8.	Unbilled Receivables and Rental Income:
	Unbilled receivables 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 each lease.

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9.	Employees' Retirement Plan:
	The Company sponsors a noncontributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $102,509 and $97,423 as contributions to the Plan for the three months ended October 31, 2016 and 2015, 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 were $12,611 and $13,153 for the three months ended October 31, 2016 and 2015, 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 Plan:
	Information as to the Company’s 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 plan’s 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 employer’s participation in the multi-employer plan:

Legal name of Plan:	United Food and Commercial
	Workers Local 888 Pension Fund
Employer identification number:	13-6367793
Plan number:	001
Date of most recent Form 5500:	December 31, 2015
Certified zone status:	Critical and declining status
Status determination date:	January 1, 2015
Plan used extended amortization provisions in status
calculation:	Yes
Minimum required contribution:	None
Employer contributing greater than 5% of Plan
contributions for year ended December 31, 2015:	Yes
Rehabilitation plan implemented:	Yes
Employer subject to surcharge:	Yes

The contract expired November 30, 2016 and the Company is in the process of negotiating an extension of the contract until November 30, 2019.

-13-

10.	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 (3) months or less, which are readily convertible into cash.

Supplemental disclosure:	Three Months Ended
	October 31
	2016		2015
Interest paid, net of capitalized interest of $2,742 (2016)
and $11,348 (2015)	$	61,994	$	64,690
Income taxes paid	$	50,946	$	231,654

11.	Common Stock:
	The Company has one class of common stock with identical voting rights and rights to liquidation.
12.	Accumulated Other Comprehensive Income:
	The only component of accumulated other comprehensive income is unrealized (loss) on available-for-sale securities.
	A summary of the changes in accumulated other comprehensive income for the three months ended October 31, 2016 and 2015 is as follows:

	Three Months Ended
	October 31
	2016			2015
	(Unaudited)			(Unaudited)
Beginning balance, net of tax effect	$	264,541		$	196,033
Other comprehensive income, net of tax effect:
Unrealized (loss) on available-for-sale securities		(65,636	)		(30,404	)
Tax effect		22,500			11,000
Unrealized (loss) on available-for-sale
securities, net of tax effect		(43,136	)		(19,404	)
Amounts reclassified from accumulated other
comprehensive income, net of tax effect:
Unrealized (loss) on available-for-sale securities reclassified		(1,354	)		-
Tax effect		500			-
Amount reclassified, net of tax effect		(854	)		-
Ending balance, net of tax effect	$	220,551		$	176,629

A summary of the line items in the Consolidated Statements of Income and Retained Earnings affected by the amounts reclassified from accumulated other comprehensive income is as follows:

Details about accumulated other	Affected line item in the statement
comprehensive income components	where net income is presented
----------------------------------------------------------	---------------------------------------------------
Other comprehensive income reclassified	Investment income
tax effect	Income taxes provided

-14-

13.	Entry into a Material Definitive Agreement:
	On June 16, 2014, the Company entered into a Second Amendment of Lease (the "Amendment") with 33 Bond St. LLC ("Bond"), its landlord, for certain truck bays and approximately 1,000 square feet located at the cellar level within a garage at Livingston and Bond Street ("Premises"). Pursuant to the Amendment, (1) a lease option for the Premises was exercised extending the lease until December 8, 2043, (2) the Company, simultaneously with the execution of the Amendment, vacated the Premises so that Bond may demolish the building in which the Premises is located in order to develop and construct a new building at the location, and (3) Bond agreed to redeliver to the Company possession of the reconfigured Premises after construction.
	As consideration under the Amendment, Bond agreed to pay the Company a total of $3,500,000. Upon execution of the Amendment, the Company recorded $3,500,000 to deferred revenue to be amortized to revenue to temporarily vacate the premises over the expected vacate period of 36 months. Bond tendered $2,250,000 simultaneously with the execution of the Amendment, and the balance due of $1,250,000 on June 16, 2015 had been received by the Company.
	In connection with the Amendment, the parties also agreed to settle a pending lawsuit in the Supreme Court of the State of New York, Kings County, Index No. 50796/13 (the "Action"), in which the Company sought, among other things, a declaratory judgment that it validly renewed the lease for the Premises, and Bond sought, among other things, a declaratory judgment that the lease expired by its terms on December 8, 2013. Pursuant to a stipulation of settlement, filed on June 16, 2014, the Action, including all claims and counterclaims, has been discontinued with prejudice, without costs or attorneys' fees to any party as against the other. The stipulation of settlement also contains general releases by both parties of all claims.
14.	Contingencies:
	There are various 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 Company's Condensed 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.
	Due to defective workmanship and breach of contract, the Company continues to pursue damages and return in full of a $376,467 deposit paid a contractor when work commenced to replace a roof on the Fishkill, New York building. There is a reasonable possibility the Company will not be paid in full and a charge to real estate operating expenses in the amount of $279,213 was recorded for the fiscal year ended July 31, 2016. Following initial court decisions in this matter, another $141,132 was charged to operating expenses as of October 31, 2016.

-15-

Item 2.

J. W. MAYS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our financial statements and related notes thereto contained in this report. In this discussion, the words “Company”, “we”, “our” and “us” refer to J.W. Mays, Inc. and subsidiaries.

Forward Looking Statements:

The following can be interpreted as including forward looking statements under the Private Securities Litigation Reform Act of 1995. The words “outlook”, “intend”, “plans”, “efforts”, “anticipates”, “believes”, “expects” or words of similar import typically identify such statements. Various important factors that could cause actual results to differ materially from those expressed in the forward-looking statements are identified under the heading “Cautionary Statement Regarding Forward-Looking Statements” below. Our actual results may vary significantly from the results contemplated by these forward-looking statements based on a number of factors including, but not limited to, availability of labor, marketing success, competitive conditions and the change in economic conditions of the various markets we serve.

Critical Accounting Policies and Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. We believe the critical accounting policies in Note 1 to the Condensed Consolidated Financial Statements disclose our more significant judgments and estimates used in the preparation of our financial statements. Actual results may differ from these estimates under different assumptions and conditions. (See Note 1 on pages 7 and 8 to the Condensed Consolidated Financial Statements herein and Note 1 on pages 9 through 12 to the Consolidated Financial Statements in the Annual Report to Shareholders for the fiscal year ended July 31, 2016).

Results of Operations:

Three months ended October 31, 2016 compared to the three months ended October 31, 2015:

In the three months ended October 31, 2016, the Company reported net income of $462,025, or $.23 per share. In the comparable three months ended October 31, 2015, the Company reported net income of $401,375, or $.20 per share.

Revenues in the current three months increased to $4,782,907 from $4,569,061 in the comparable 2015 three months primarily due to increased rental income from existing tenants.

The recovery of real estate taxes in the current three months in the amount of $10,952, net of legal expenses, represents recovery of prior years’ real estate taxes from one of the Company’s properties. The comparable 2015 three months did not have a recovery of real estate taxes.

Real estate operating expenses in the current three months increased to $2,527,935 from $2,408,599 in the comparable 2015 three months primarily due to increases in real estate taxes and a charge for litigation against a contractor in the amount of $141,132 (see Note 14), partially offset by decreases in utility costs and leasing commission costs.

Administrative and general expenses in the current three months increased to $1,090,603 from $1,055,982 in the comparable 2015 three months primarily due to increases in payroll costs, medical costs and directors fees, partially offset by decreases in legal and professional costs

-16-

Depreciation and amortization expense in the current three months increased to $412,627 from $406,750 in the comparable 2015 three months primarily due to improvements in the Nine Bond Street building in Brooklyn, New York.

Interest expense exceeded investment income in the current three months by $58,717 and by $57,355 in the comparable 2015 three months.

Liquidity and Capital Resources:

Management considers current working capital and borrowing capabilities adequate to cover the Company’s planned operating and capital requirements. The Company’s cash and cash equivalents amounted to $6,016,061 at October 31, 2016.

In May 2015, the Company entered into a 20 year lease agreement with a new tenant (cancellation clause after the 10th year) to occupy 17,425 square feet of office space at the Jowein building in Brooklyn, New York. Occupancy is anticipated to commence in December 2016 and rent is anticipated to commence in March 2017. The amount of brokerage commissions and construction costs were $496,266 and $1,749,431, respectively. The construction was completed in November 2016.

In August 2016, a tenant at the Company’s Circleville, Ohio property leased an additional 12,000 square feet of warehouse space effective August 16, 2016.

In October 2016, a tenant at the Company’s Levittown, New York property extended its lease for an additional five years expiring May 3, 2023.

In October 2016, a tenant who occupies 2,680 square feet of retail space at the Company’s Jamaica, New York property vacated the space. The space was leased to an existing tenant at a higher annual rental income effective November 2016.

Cash Flows From Operating Activities:

Payroll and Other Accrued Liabilities: The Company had a balance due at October 31, 2016 for brokerage commissions of $256,105. Brokerage commissions in the amount of $60,005 were paid in the three months ended October 31, 2016.

Cash Flows From Investing Activities:

The Company had expenditures of $370,085 for the three months ended October 31, 2016 at its Jowein, New York building for renovations for an existing tenant. The cost of the project was $370,085 and was completed in September 2016.

The Company had expenditures of $31,540 for the three months ended October 31, 2016, for a new office tenant at its Jowein building in Brooklyn, New York. The cost of the project was $1,749,431 of which $1,728,832 has been paid. The project was completed in November 2016.

The Company had expenditures of $114,695 in the three months ended October 31, 2016 for façade restoration work at the Company’s Nine Bond Street, Brooklyn, New York building. The cost of the project was $199,883 and was completed in December 2016.

-17-

Cautionary Statement Regarding Forward-Looking Statements:

This section, Management’s Discussion and Analysis of Financial Condition and Results of Operations, other sections of this Report on Form 10-Q and other reports and verbal statements made by our representatives from time to time may contain forward-looking statements that are based on our assumptions, expectations and projections about us and the real estate industry. These include statements regarding our expectations about revenues, our liquidity, our expenses and our continued growth, among others. Such forward-looking statements by their nature involve a degree of risk and uncertainty. We caution that a variety of factors, including but not limited to the factors listed below, could cause business conditions and our results to differ materially from what is contained in forward-looking statements:

● changes in the rate of economic growth in the United States;

● the ability to obtain credit from financial institutions and the related costs;

● changes in the financial condition of our customers;

● changes in regulatory environment;

● lease cancellations;

● changes in our estimates of costs;

● war and/or terrorist attacks on facilities where services are or may be provided;

● outcomes of pending and future litigation;

● increasing competition by other companies;

● compliance with our loan covenants;

● recoverability of claims against our customers and others by us and claims by third parties against us; and

● changes in estimates used in our critical accounting policies.

Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by us.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to review any additional disclosures we make in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and any Form 8-K reports filed with the United States Securities and Exchange Commission.

Item 3. Quantitative and Qualitative Disclosures About Market Risk:

The Company uses fixed-rate debt to finance its capital requirements. These transactions do not expose the Company to market risk related to changes in interest rates. The Company does not use derivative financial instruments. At October 31, 2016, the Company had fixed-rate debt of $6,748,263.

Item 4. Controls and Procedures:

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded, as of the end of the period covered by this quarterly report, our disclosure controls and procedures were effective and provide reasonable assurance that the information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported accurately and within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are likely to materially affect, our internal control over financial reporting.

-18-

Part II - Other Information

Item 1. Legal Proceedings

From time to time we are involved in legal actions arising in the ordinary course of business. In our opinion, the outcome of such matters in the aggregate will not have a material adverse effect on our financial condition, results of operations or cash flows.

Item 1A. Risk Factors

There have been no changes to our risk factors from those disclosed in our Annual Report on Form 10-K for our fiscal year ended July 31, 2016.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8-K

(a) List of Exhibits:

		Sequentially
Exhibit		Numbered
Number	Exhibit	Page
(3)	Articles of Incorporation and Bylaws		N/A
(10)	Material contracts		N/A
(11)	Statement re computation of per share earnings		N/A
(12)	Statement re computation of ratios		N/A
(14)	Code of ethics		N/A
(15)	Letter re unaudited interim financial information		N/A
(18)	Letter re change in accounting principles		N/A
(19)	Report furnished to security holders		N/A
(31)	Additional exhibits - Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	(31.1) Chief Executive Officer		22
	(31.2) Chief Financial Officer		23
(32)	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350		24
(95)	Mine safety disclosure		N/A

-19-

EX-101.INS	XBRL Instance Document
EX-101.SCH	XBRL Taxonomy Extension Schema
EX-101.PRE	XBRL Taxonomy Extension Presentation Linkbase
EX-101.LAB	XBRL Taxonomy Extension Label Linkbase
EX-101.CAL	XBRL Taxonomy Extension Calculation Linkbase
EX-101.DEF	XBRL Taxonomy Extension Definition Linkbase

(b)	Reports on Form 8-K – One report on Form 8-K was filed by the registrant during the three months ended October 31, 2016.
	Items reported:
	The Company reported its financial results for the three months and year ended July 31, 2016. Date of report filed - October 6, 2016.

-20-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		J.W. MAYS, Inc.
		(Registrant)
Date:	December 8, 2016	Lloyd J. Shulman
		Lloyd J. Shulman
		President
		Chief Executive Officer
Date:	December 8, 2016	Mark S. Greenblatt
		Mark S. Greenblatt
		Vice President
		Chief Financial Officer

-21-

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Lloyd J. Shulman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of J.W. Mays, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	December 8, 2016
		/s/ Lloyd J. Shulman
		Lloyd J. Shulman
		President
		Chief Executive Officer

-22-

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Mark S. Greenblatt, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of J.W. Mays, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	December 8, 2016
		/s/ Mark S. Greenblatt
		Mark S. Greenblatt
		Vice President
		Chief Financial Officer

-23-

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of J.W. Mays, Inc. (the "Company") on Form 10-Q for the period ended October 31, 2016 as filed with the United States Securities and Exchange Commission (the "Report"), we, Lloyd J. Shulman and Mark S. Greenblatt, Chief Executive Officer and Chief Financial Officer, respectively, of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	December 8, 2016
		/s/ Lloyd J. Shulman
		Lloyd J. Shulman
		Chief Executive Officer
		/s/ Mark S. Greenblatt
		Mark S. Greenblatt
		Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to J.W. Mays, Inc. and will be retained by J.W. Mays, Inc. and furnished to the United States Securities and Exchange Commission or its staff upon request.

-24-

XML

DOCUMENT AND ENTITY INFORMATION - shares	3 Months Ended
	Oct. 31, 2016	Dec. 08, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	MAYS J W INC
Entity Central Index Key	0000054187
Current Fiscal Year End Date	--07-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	mays
Entity Common Stock, Shares Outstanding		2,015,780
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2016
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2017
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Oct. 31, 2016	Jul. 31, 2016
ASSETS
Property and Equipment - Net (Notes 5 and 6)	$ 49,168,430	$ 49,064,737
Current Assets:
Cash and cash equivalents (Note 4)	6,016,061	5,228,826
Receivables (Note 4)	581,410	293,317
Income taxes refundable	13,897	17,004
Prepaid expenses	926,073	1,553,217
Total current assets	7,537,441	7,092,364
Other Assets:
Deferred charges	3,348,031	3,348,031
Less accumulated amortization	1,468,867	1,404,267
Net	1,879,164	1,943,764
Security deposits	1,161,485	1,159,338
Unbilled receivables (Notes 4 and 8)	2,127,814	2,222,846
Marketable securities (Notes 3 and 4)	2,002,818	2,062,205
Total other assets	7,171,281	7,388,153
TOTAL ASSETS	63,877,152	63,545,254
Long-Term Debt:
Mortgage payable (Note 5)	5,538,505	5,572,477
Security deposits payable	902,117	897,965
Payroll and other accrued liabilities	60,916	90,917
Deferred Income Taxes (Note 1)	4,825,000	4,617,000
Total long-term debt	11,326,538	11,178,359
Current Liabilities:
Accounts payable	84,931	80,343
Payroll and other accrued liabilities	2,207,945	2,153,850
Deferred revenue (Note 13)	729,166	1,020,833
Other taxes payable	4,203	6,963
Current portion of note payable - related party (Note 7)	1,000,000	1,000,000
Current portion of long-term debt (Note 5)	135,397	133,969
Total current liabilities	4,161,642	4,395,958
TOTAL LIABILITIES	15,488,180	15,574,317
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
Unrealized gain on available-for-sale securities - net of deferred taxes of $113,000 at October 31, 2016 and $136,000 at July 31, 2016	220,551	264,541
Retained earnings	43,931,731	43,469,706
Stockholders' Equity before Treasury Stock	49,676,824	49,258,789
Less common stock held in treasury, at cost - 162,517 shares at October 31, 2016 and at July 31, 2016 (Note 11)	1,287,852	1,287,852
Total shareholders' equity	48,388,972	47,970,937
Contingencies (Note 14)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 63,877,152	$ 63,545,254

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Oct. 31, 2016	Jul. 31, 2016
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
Unrealized Gain on Available-for-sale Securities - Net of Deferred Taxes [Member]
Unrealized gain (loss) on available-for-sale securities, deferred taxes (benefit)	$ 113,000	$ 136,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS - USD ($)	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Revenues
Rental income (Notes 4 and 8)	$ 4,480,288	$ 4,277,394
Recovery of real estate taxes	10,952
Revenue to temporarily vacate lease (Note 13)	291,667	291,667
Total revenues	4,782,907	4,569,061
Expenses
Real estate operating expenses	2,527,935	2,408,599
Administrative and general expenses	1,090,603	1,055,982
Depreciation and amortization (Note 6)	412,627	406,750
Total expenses	4,031,165	3,871,331
Income from operations before investment income, interest expense and income taxes	751,742	697,730
Investment income and interest expense:
Investment income (Note 3)	3,161	7,222
Interest expense (Notes 5, 7 and 10)	(61,878)	(64,577)
Total investment income and interest expense	(58,717)	(57,355)
Income from operations before income taxes	693,025	640,375
Income taxes provided	231,000	239,000
Net income	462,025	401,375
Retained earnings, beginning of period	43,469,706	41,951,946
Retained earnings, end of period	$ 43,931,731	$ 42,353,321
Income per common share (Note 2)	$ 0.23	$ 0.20
Dividends per share
Average common shares outstanding	2,015,780	2,015,780

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 462,025	$ 401,375
Unrealized (loss) on available-for-sale securities:
Unrealized (losses) arising during the period, net of taxes (benefit) of ($23,000) and ($11,000) for the three months ended October 31, 2016 and 2015, respectively,	(43,990)	(19,404)
Comprehensive income	$ 418,035	$ 381,971

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Statement of Comprehensive Income [Abstract]
Unrealized holding gains arising during the period, tax	$ (23,000)	$ (11,000)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Cash Flows From Operating Activities
Net income	$ 462,025	$ 401,375
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	412,627	406,750
Amortization of deferred charges	64,600	80,879
Amortization of deferred finance costs	5,718	5,700
Realized loss on sale of marketable securities	7,421
Other assets - unbilled receivables	95,032	94,936
Deferred income taxes	231,000	239,000
Deferred revenue	(291,667)	(291,667)
Changes in:
Receivables	(288,093)	131,187
Income taxes refundable	3,107	(174,654)
Prepaid expenses	627,144	578,417
Accounts payable	4,588	29,509
Payroll and other accrued liabilities	24,094	(207,296)
Other taxes payable	(2,760)	(2,709)
Cash provided by operating activities	1,354,836	1,291,427
Cash Flows From Investing Activities
Capital expenditures	(516,320)	(821,347)
Security deposits	(2,147)	(3,679)
Marketable securities:
Receipts from sales or maturities	115,173
Payments for purchases	(130,197)	(9,541)
Cash (used) by investing activities	(533,491)	(834,567)
Cash Flows From Financing Activities
Increase - security deposits	4,152	1,579
Mortgage and other debt payments	(38,262)	(36,895)
Cash (used) by financing activities	(34,110)	(35,316)
Increase in cash and cash equivalents	787,235	421,544
Cash and cash equivalents at beginning of period	5,228,826	4,085,704
Cash and cash equivalents at end of period	$ 6,016,061	$ 4,507,248

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Accounting Records and Use of Estimates

3 Months Ended

Oct. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounting Records and Use of Estimates

1.

Accounting Records and 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 Company’s 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, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation and amortization, 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. The interim financial statements are prepared pursuant to the requirements for reporting on Form 10-Q. The July 31, 2016 condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes included in the Company's latest Form 10-K Annual Report for the fiscal year ended July 31, 2016. In the opinion of management, the interim financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for interim periods. The results of operations for the current period are not necessarily indicative of the results for the entire fiscal year ending July 31, 2017. The computation of the annual expected effective tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected operating income for the year and future periods, projections of the proportion of income (or loss), and permanent and temporary differences. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is acquired, or as additional information is obtained. To the extent that the estimated annual effective tax rate changes during a quarter, the effect of the change on prior quarters is included in tax expense for the current quarter. As of July 31, 2015 and 2016, the Company has a federal net operating loss approximating $6,609,000 and $6,576,000, respectively, which is available to offset future taxable income. In addition, as of July 31, 2015 and July 31, 2016, the Company had state and city net operating loss carryforwards of approximately $9,000,000 and $8,943,000, respectively, available to offset future state and city taxable income. The net operating loss carryforwards will begin to expire, if not used, in 2035. New York State and New York City taxes for years through July 31, 2015 were calculated using the higher of taxes based on income or the respective capital-based franchise taxes. In April 2014, the New York State governor signed into law legislation overhauling the New York State franchise tax on corporations. The changes in the law were effective for the Company’s year ended July 31, 2016. The state capital-based tax will be phased out over a 7-year period. The Company anticipates New York State taxes will be based on capital through 2022, and New York City taxes will be based on capital for the foreseeable future. Capital based franchise taxes are recorded to administrative and general expense. Due to the application of the capital-based tax while the net operating loss still applies, or due to the possible absence of State taxable income in the years beyond 2022 to which the State loss can be carried, the Company has not recorded the tax benefit of its New York State and New York City net operating loss carryforwards.

Recently issued accounting standards not yet adopted:

In May 2014, the FASB issued 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. The adoption of the update on August 1, 2018 is not expected to have a significant impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”) which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (“ASU 2016-10”) which provides further guidance on identifying performance obligations and improves the operability and understandability of the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016- 12”) which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. ASU 2016-08, ASU 2016-10 and ASU 2016-12 have the same effective date and transition requirements as ASU 2014-09. The Company is currently evaluating the impact of the adoption of the new standard on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 is intended to increase transparency and comparability among organizations of 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. Lessor accounting remains similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. 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. Entities will be required to recognize and measure leases as of the earliest period presented using a modified retrospective approach. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new standard will be effective for the Company for the fiscal year beginning August 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new standard on its consolidated financial statements and related disclosures.

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Income Per Share of Common Stock

3 Months Ended

Oct. 31, 2016

Earnings Per Share [Abstract]

Income Per Share of Common Stock

2.	Income Per Share of Common Stock:
	Income per share has been computed by dividing the net income for the periods by the weighted average number of shares of common stock outstanding during the periods, adjusted for the purchase of treasury stock. Shares used in computing income per share were 2,015,780 for the three months ended October 31, 2016 and October 31, 2015.

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Marketable Securities

3 Months Ended

Oct. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

3.

Marketable Securities:

The Company categorizes marketable securities as either trading, available-for-sale or held-to-maturity. Trading securities are carried at fair value with unrealized gains and losses included in income. Available-for-sale securities are carried at fair value measurements 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 are carried at amortized cost. 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 three months ended October 31, 2016 and July 31, 2016.

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 entity’s 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 October 31, 2016 and July 31, 2016.

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 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 Company's financial assets measured on a recurring basis presented at fair value.

	Fair value measurements at reporting date
	Total								Total
	October 31,								July 31,
Description	2016		Level 1		Level 2		Level 3		2016		Level 1		Level 2		Level 3
Assets:
Marketable securities -
available-for-sale	$	2,002,818	$	2,002,818	$	–	$	–	$	2,062,205	$	2,062,205	$	–	$	–

As of October 31, 2016 and July 31, 2016, the Company's marketable securities were classified as follows:

	October 31, 2016								July 31, 2016
			Gross		Gross						Gross		Gross
			Unrealized		Unrealized		Fair				Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
Noncurrent:
Available-for-sale:
Mutual funds	$	552,628	$	134,648	$	–	$	687,276	$	551,573	$	143,026	$	–	$	694,599
Equity securities		1,116,639		200,736		1,833		1,315,542		1,110,091		258,869		1,354		1,367,606
	$	1,669,267	$	335,384	$	1,833	$	2,002,818	$	1,661,664	$	401,895	$	1,354	$	2,062,205

The Company's debt and equity securities, gross unrealized losses and fair value, aggregated by investment category and length of time that the investment securities have been in a continuous unrealized loss position are as follows:

	October 31, 2016				July 31, 2016
			Less Than				Less Than
	Fair Value		12 Months		Fair Value		12 Months
Corporate equity securities	$	116,396	$	1,833	$	120,288	$	1,354

Investment income consists of the following:

	Three Months Ended
	October 31
	2016			2015
Loss on sale of marketable securities	$	(7,421	)	$	–
Interest income		3,304			909
Dividend income		7,278			6,313
Total	$	3,161		$	7,222

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Financial Instruments and Credit Risk Concentrations

3 Months Ended

Oct. 31, 2016

Fair Value Disclosures [Abstract]

Financial Instruments and Credit Risk Concentrations

4.

Financial Instruments and Credit Risk Concentrations:

Financial instruments that are potentially subject to concentrations of credit risk consist principally of marketable securities, cash and cash equivalents and receivables. Marketable securities and cash and cash equivalents are placed with multiple financial institutions and multiple instruments to minimize risk. No assurance can be made that such financial institutions and instruments will minimize all such risk. The Company derives rental income from forty-nine tenants, of which one tenant accounted for 18.66%, another tenant accounted for 15.10% and a third tenant accounted for 10.52% of rental income during the three months ended October 31, 2016. The three months ended October 31, 2015 had one tenant account for 18.81% and another tenant account for 15.56% of rental income. No other tenant accounted for more than 10% of rental income during the same periods. The Company has one irrevocable Letter of Credit totaling $230,000 at October 31, 2016 and July 31, 2016 provided by a tenant as a security deposit.

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Long-Term Debt – Mortgage

3 Months Ended

Oct. 31, 2016

Long-Term Debt – Mortgage [Abstract]

Long-Term Debt – Mortgage

5. Long-Term Debt – Mortgage:

			October 31, 2016				July 31, 2016
	Current
	Annual	Final	Due		Due		Due		Due
	Interest	Payment	Within		After		Within		After
	Rate	Date	One Year		One Year		One Year		One Year
Bond St. building, Brooklyn, NY	3.54%	2/1/2020	$	158,269	$	5,589,994	$	156,846	$	5,629,679
Less: Deferred financing costs				22,872		51,489		22,877		57,202
Total			$	135,397	$	5,538,505	$	133,969	$	5,572,477
The Company, on August 19, 2004, closed a loan with a bank for a $12,000,000 multiple draw term loan. The loan consisted of: a) a permanent, first mortgage loan to refinance an existing first mortgage loan affecting the Fishkill, New York property, which matured on July 1, 2004 (the “First Permanent Loan”), b) a permanent subordinate mortgage loan in the amount of $1,870,000 (the “Second Permanent Loan”), and c) multiple, successively subordinate loans in the amount of $8,295,274 (“Subordinate Building Loans”). The Company, in February 2008, converted the loan totaling $12,000,000 to a seven (7) year permanent mortgage loan. The interest rate on conversion was 6.98%. On January 9, 2015, the Company refinanced the loan for $6,000,000, which included the outstanding balance as of January 2015 in the amount of $5,347,726 and an additional borrowing of $652,274. The loan is for a period of five years with a payment based on a twenty-five year amortization period. The interest rate for this period is fixed at 3.54% per annum. The mortgage loan is secured by the Bond Street building in Brooklyn, New York.

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Property and Equipment – at cost

3 Months Ended

Oct. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment – at cost

6. Property and Equipment – at cost:

	October 31		July 31
	2016		2016
Property:
Buildings and improvements	$	78,063,803	$	77,693,718
Improvements to leased property		1,478,012		1,478,012
Land		6,067,805		6,067,805
Construction in progress		1,843,527		1,697,292
		87,453,147		86,936,827
Less accumulated depreciation		38,410,937		38,008,810
Property - net		49,042,210		48,928,017
Fixtures and equipment and other:
Fixtures and equipment		144,545		144,545
Other fixed assets		195,478		195,478
		340,023		340,023
Less accumulated depreciation		213,803		203,303
Fixtures and equipment and other - net		126,220		136,720
Property and equipment - net	$	49,168,430	$	49,064,737
Construction in progress includes:
	October 31		July 31
	2016		2016
Building improvements at 9 Bond Street in Brooklyn, NY	$	114,695	$	–
Building improvements at 25 Elm Place in Brooklyn, NY		1,728,832		1,697,292
	$	1,843,527	$	1,697,292

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Note Payable - Related Party

3 Months Ended

Oct. 31, 2016

Debt Disclosure [Abstract]

Note Payable - Related Party

7.

Note Payable - Related Party:

On December 15, 2004, the Company borrowed $1,000,000 on an unsecured basis from a former director of the Company, who at the time was also a greater than 10% beneficial owner of the outstanding common stock of the Company. The former director passed away in November 2012 and the note is currently an asset of the estate of the former director. Interest payments pursuant to the note have been assigned to a trust provided for by the will of the deceased former director. The loan has been repeatedly renewed to its current maturity date of December 15, 2016 at an interest rate of 5% per annum. The note is prepayable in whole or in part at any time without penalty. The constant quarterly payment of interest is $12,500. The interest paid was $12,500 for each of the three month periods ended October 31, 2016 and 2015. It is the intention of the Company to pay this loan in full upon its maturity.

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Unbilled Receivables and Rental Income

3 Months Ended

Oct. 31, 2016

Unbilled Receivables And Rental Income

Unbilled Receivables and Rental Income

8.	Unbilled Receivables and Rental Income:
	Unbilled receivables 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 each lease.

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Employees' Retirement Plan

3 Months Ended

Oct. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Employees' Retirement Plan

9.	Employees' Retirement Plan:
	The Company sponsors a noncontributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $102,509 and $97,423 as contributions to the Plan for the three months ended October 31, 2016 and 2015, 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 were $12,611 and $13,153 for the three months ended October 31, 2016 and 2015, 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 Plan:
	Information as to the Company’s 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 plan’s 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 employer’s participation in the multi-employer plan:

Legal name of Plan:	United Food and Commercial
	Workers Local 888 Pension Fund
Employer identification number:	13-6367793
Plan number:	001
Date of most recent Form 5500:	December 31, 2015
Certified zone status:	Critical and declining status
Status determination date:	January 1, 2015
Plan used extended amortization provisions in status
calculation:	Yes
Minimum required contribution:	None
Employer contributing greater than 5% of Plan
contributions for year ended December 31, 2015:	Yes
Rehabilitation plan implemented:	Yes
Employer subject to surcharge:	Yes

The contract expired November 30, 2016 and the Company is in the process of negotiating an extension of the contract until November 30, 2019.

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Cash Flow Information

3 Months Ended

Oct. 31, 2016

Supplemental Cash Flow Elements [Abstract]

Cash Flow Information

10.	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 (3) months or less, which are readily convertible into cash.

Supplemental disclosure:	Three Months Ended
	October 31
	2016		2015
Interest paid, net of capitalized interest of $2,742 (2016)
and $11,348 (2015)	$	61,994	$	64,690
Income taxes paid	$	50,946	$	231,654

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Common Stock

3 Months Ended

Oct. 31, 2016

Stockholders' Equity Note [Abstract]

Common Stock

11.	Common Stock:
	The Company has one class of common stock with identical voting rights and rights to liquidation.

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Accumulated Other Comprehensive Income

3 Months Ended

Oct. 31, 2016

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

12.	Accumulated Other Comprehensive Income:
	The only component of accumulated other comprehensive income is unrealized (loss) on available-for-sale securities.
	A summary of the changes in accumulated other comprehensive income for the three months ended October 31, 2016 and 2015 is as follows:

	Three Months Ended
	October 31
	2016			2015
	(Unaudited)			(Unaudited)
Beginning balance, net of tax effect	$	264,541		$	196,033
Other comprehensive income, net of tax effect:
Unrealized (loss) on available-for-sale securities		(65,636	)		(30,404	)
Tax effect		22,500			11,000
Unrealized (loss) on available-for-sale
securities, net of tax effect		(43,136	)		(19,404	)
Amounts reclassified from accumulated other
comprehensive income, net of tax effect:
Unrealized (loss) on available-for-sale securities reclassified		(1,354	)		-
Tax effect		500			-
Amount reclassified, net of tax effect		(854	)		-
Ending balance, net of tax effect	$	220,551		$	176,629

A summary of the line items in the Consolidated Statements of Income and Retained Earnings affected by the amounts reclassified from accumulated other comprehensive income is as follows:

Details about accumulated other	Affected line item in the statement
comprehensive income components	where net income is presented
----------------------------------------------------------	---------------------------------------------------
Other comprehensive income reclassified	Investment income
tax effect	Income taxes provided

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Entry into a Material Definitive Agreement

3 Months Ended

Oct. 31, 2016

Entry into a Material Definitive Agreement [Abstract]

Entry into a Material Definitive Agreement

13.	Entry into a Material Definitive Agreement:
	On June 16, 2014, the Company entered into a Second Amendment of Lease (the "Amendment") with 33 Bond St. LLC ("Bond"), its landlord, for certain truck bays and approximately 1,000 square feet located at the cellar level within a garage at Livingston and Bond Street ("Premises"). Pursuant to the Amendment, (1) a lease option for the Premises was exercised extending the lease until December 8, 2043, (2) the Company, simultaneously with the execution of the Amendment, vacated the Premises so that Bond may demolish the building in which the Premises is located in order to develop and construct a new building at the location, and (3) Bond agreed to redeliver to the Company possession of the reconfigured Premises after construction.
	As consideration under the Amendment, Bond agreed to pay the Company a total of $3,500,000. Upon execution of the Amendment, the Company recorded $3,500,000 to deferred revenue to be amortized to revenue to temporarily vacate the premises over the expected vacate period of 36 months. Bond tendered $2,250,000 simultaneously with the execution of the Amendment, and the balance due of $1,250,000 on June 16, 2015 had been received by the Company.
	In connection with the Amendment, the parties also agreed to settle a pending lawsuit in the Supreme Court of the State of New York, Kings County, Index No. 50796/13 (the "Action"), in which the Company sought, among other things, a declaratory judgment that it validly renewed the lease for the Premises, and Bond sought, among other things, a declaratory judgment that the lease expired by its terms on December 8, 2013. Pursuant to a stipulation of settlement, filed on June 16, 2014, the Action, including all claims and counterclaims, has been discontinued with prejudice, without costs or attorneys' fees to any party as against the other. The stipulation of settlement also contains general releases by both parties of all claims.

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Contingencies

3 Months Ended

Oct. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Contingencies

14.	Contingencies:
	There are various 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 Company's Condensed 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.
	Due to defective workmanship and breach of contract, the Company continues to pursue damages and return in full of a $376,467 deposit paid a contractor when work commenced to replace a roof on the Fishkill, New York building. There is a reasonable possibility the Company will not be paid in full and a charge to real estate operating expenses in the amount of $279,213 was recorded for the fiscal year ended July 31, 2016. Following initial court decisions in this matter, another $141,132 was charged to operating expenses as of October 31, 2016.

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Marketable Securities (Tables)

3 Months Ended

Oct. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of financial assets measured at fair value on recurring basis

	Fair value measurements at reporting date
	Total								Total
	October 31,								July 31,
Description	2016		Level 1		Level 2		Level 3		2016		Level 1		Level 2		Level 3
Assets:
Marketable securities -
available-for-sale	$	2,002,818	$	2,002,818	$	–	$	–	$	2,062,205	$	2,062,205	$	–	$	–

Schedule of classified marketable securities

October 31, 2016									July 31, 2016
			Gross		Gross							Gross		Gross
			Unrealized		Unrealized		Fair					Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value			Cost		Gains		Losses		Value
Noncurrent:
Available-for-sale:
Mutual funds	$	552,628	$	134,648	$	–	$	687,276		$	551,573	$	143,026	$	–	$	694,599
Equity securities		1,116,639		200,736		1,833		1,315,542			1,110,091		258,869		1,354		1,367,606
	$	1,669,267	$	335,384	$	1,833	$	2,002,818		$	1,661,664	$	401,895	$	1,354	$	2,062,205

Schedule of debt and equity securities, gross unrealized losses and fair value, aggregated by investment category and length of time that the investment securities have been in a continuous unrealized loss position

	October 31, 2016				July 31, 2016
			Less Than				Less Than
	Fair Value		12 Months		Fair Value		12 Months
Corporate equity securities	$	116,396	$	1,833	$	120,288	$	1,354

Schedule of investment income

	Three Months Ended
	October 31
	2016			2015
Loss on sale of marketable securities	$	(7,421	)	$	–
Interest income		3,304			909
Dividend income		7,278			6,313
Total	$	3,161		$	7,222

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Long-Term Debt – Mortgage (Tables)

3 Months Ended

Oct. 31, 2016

Long-Term Debt – Mortgage [Abstract]

Schedule of long-term debt

			October 31, 2016				July 31, 2016
	Current
	Annual	Final	Due		Due		Due		Due
	Interest	Payment	Within		After		Within		After
	Rate	Date	One Year		One Year		One Year		One Year
Bond St. building, Brooklyn, NY	3.54%	2/1/2020	$	158,269	$	5,589,994	$	156,846	$	5,629,679
Less: Deferred financing costs				22,872		51,489		22,877		57,202
Total			$	135,397	$	5,538,505	$	133,969	$	5,572,477

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Property and Equipment – at cost (Tables)

3 Months Ended

Oct. 31, 2016

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	October 31		July 31
	2016		2016
Property:
Buildings and improvements	$	78,063,803	$	77,693,718
Improvements to leased property		1,478,012		1,478,012
Land		6,067,805		6,067,805
Construction in progress		1,843,527		1,697,292
		87,453,147		86,936,827
Less accumulated depreciation		38,410,937		38,008,810
Property - net		49,042,210		48,928,017
Fixtures and equipment and other:
Fixtures and equipment		144,545		144,545
Other fixed assets		195,478		195,478
		340,023		340,023
Less accumulated depreciation		213,803		203,303
Fixtures and equipment and other - net		126,220		136,720
Property and equipment - net	$	49,168,430	$	49,064,737

Schedule of property and equipment construction in progress

Construction in progress includes:
		October 31		July 31
		2016		2016
	Building improvements at 9 Bond Street in Brooklyn, NY	$	114,695	$	–
	Building improvements at 25 Elm Place in Brooklyn, NY		1,728,832		1,697,292

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Cash Flow Information (Tables)

3 Months Ended

Oct. 31, 2016

Supplemental Cash Flow Elements [Abstract]

Schedule of cash flow information

Supplemental disclosure:	Three Months Ended
	October 31
	2016		2015
Interest paid, net of capitalized interest of $2,742 (2016)
and $11,348 (2015)	$	61,994	$	64,690
Income taxes paid	$	50,946	$	231,654

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Oct. 31, 2016

Accumulated Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

	Three Months Ended
	October 31
	2016			2015
	(Unaudited)			(Unaudited)
Beginning balance, net of tax effect	$	264,541		$	196,033
Other comprehensive income, net of tax effect:
Unrealized (loss) on available-for-sale securities		(65,636	)		(30,404	)
Tax effect		22,500			11,000
Unrealized (loss) on available-for-sale
securities, net of tax effect		(43,136	)		(19,404	)
Amounts reclassified from accumulated other
comprehensive income, net of tax effect:
Unrealized (loss) on available-for-sale securities reclassified		(1,354	)		-
Tax effect		500			-
Amount reclassified, net of tax effect		(854	)		-
Ending balance, net of tax effect	$	220,551		$	176,629

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Accounting Records and Use of Estimates (Narrative) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2016	Jul. 31, 2016	Jul. 31, 2015
Operating Loss Carryforwards [Line Items]
Period over which state capital-based tax will be phased out	7 years
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards		$ 6,576,000	$ 6,609,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards		$ 8,943,000	$ 9,000,000

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Income Per Share of Common Stock (Details) - shares	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Leases [Abstract]
Average common shares outstanding	2,015,780	2,015,780

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Marketable Securities (Schedule of financial assets measured at fair value on recurring basis) (Details) - USD ($)	Oct. 31, 2016	Jul. 31, 2016
Marketable securities -
available-for-sale	$ 2,002,818	$ 2,062,205
Fair Value, Inputs, Level 1 [Member]
Marketable securities -
available-for-sale	2,002,818	2,062,205
Fair Value, Inputs, Level 2 [Member]
Marketable securities -
available-for-sale
Fair Value, Inputs, Level 3 [Member]
Marketable securities -
available-for-sale

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Marketable Securities (Schedule of classified marketable securities) (Details) - USD ($)	Oct. 31, 2016	Jul. 31, 2016
Fair Value	$ 2,002,818	$ 2,062,205
Noncurrent [Member]
Cost	1,669,267	1,661,664
Gross Unrealized Gains	335,384	401,895
Gross Unrealized Losses	1,833	1,354
Fair Value	2,002,818	2,062,205
Noncurrent [Member] | Mutual Funds [Member]
Cost	552,628	551,573
Gross Unrealized Gains	134,648	143,026
Gross Unrealized Losses
Fair Value	687,276	694,599
Noncurrent [Member] | Corporate Equity Securities [Member]
Cost	1,116,639	1,110,091
Gross Unrealized Gains	200,736	258,869
Gross Unrealized Losses	1,833	1,354
Fair Value	$ 1,315,542	$ 1,367,606

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Marketable Securities (Schedule of Investment Securities In Continuous Unrealized Loss Position) (Details) - Corporate Equity Securities [Member] - USD ($)	Oct. 31, 2016	Jul. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Investment securities, continuous unrealized loss position, Fair Value	$ 116,396	$ 120,288
Investment securities, continuous unrealized loss position, Less Than 12 Months	$ 1,833	$ 1,354

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Marketable Securities (Schedule of investment income) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Loss on sale of marketable securities	$ (7,421)
Interest income	3,304	909
Dividend income	7,278	6,313
Total	$ 3,161	$ 7,222

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Financial Instruments and Credit Risk Concentrations (Details)	3 Months Ended		12 Months Ended
	Oct. 31, 2016 USD ($) tenants	Oct. 31, 2015	Jul. 31, 2016 USD ($)
Concentration Risk [Line Items]
Irrevocable letter of credit | $	$ 230,000		$ 230,000
Number of tenants | tenants	49
Customer One [Member] | Rental Income [Member]
Concentration Risk [Line Items]
Concentration risk	18.66%	18.81%
Customer Two [Member] | Rental Income [Member]
Concentration Risk [Line Items]
Concentration risk	15.10%	15.56%
Customer Three [Member] | Rental Income [Member]
Concentration Risk [Line Items]
Concentration risk	10.52%

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Long-Term Debt – Mortgage (Schedule of long-term debt) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2016	Jul. 31, 2016	Jan. 09, 2015
Less: Deferred financing costs
Due After One Year, Total	$ 5,538,505	$ 5,572,477
Bond St.Building Brooklyn NY Two [Member]
Mortgage:
Due Within One Year	158,269	156,846
Due After One Year	5,589,994	5,629,679
Less: Deferred financing costs
Due Within One Year	22,872	22,877
Due After One Year	51,489	57,202
Due Within One Year, Total	135,397	133,969
Due After One Year, Total	$ 5,538,505	$ 5,572,477
Current Annual Interest Rate	3.54%	3.54%	3.54%
Final Payment Date	Feb. 01, 2020

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Long-Term Debt – Mortgage (Narrative) (Details) - USD ($)		1 Months Ended
	Jan. 09, 2015	Feb. 29, 2008	Oct. 31, 2016	Jul. 31, 2016	Aug. 19, 2004
Bond St.Building Brooklyn NY Two [Member]
Closed bank liabilities	$ 6,000,000
Additional loans	652,274
Amount outstanding	$ 5,347,726
Term of loan	5 years
Amortization period of loan	25 years
Interest rate, percent	3.54%		3.54%	3.54%
Fishkill, New York Property [Member]
Closed bank liabilities					$ 12,000,000
Term of loan		7 years
Interest rate, percent		6.98%
Fishkill, New York Property [Member] | Multiple Successively Subordinate Loans [Member]
Closed bank liabilities					8,295,274
Fishkill, New York Property [Member] | Permanent Subordinate Mortgage [Member]
Closed bank liabilities					$ 1,870,000

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Property and Equipment – at cost (Details) - USD ($)	Oct. 31, 2016	Jul. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment - net	$ 49,168,430	$ 49,064,737
Building Improvements at 9 Bond Street in Brooklyn, NY [Member]
Property, Plant and Equipment [Line Items]
Construction in progress	114,695
Building improvements at 25 Elm Place in Brooklyn, NY [Member]
Property, Plant and Equipment [Line Items]
Construction in progress	1,728,832	1,697,292
Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	78,063,803	77,693,718
Improvements to Leased Property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	1,478,012	1,478,012
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	6,067,805	6,067,805
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	1,843,527	1,697,292
Property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	87,453,147	86,936,827
Less accumulated depreciation	38,410,937	38,008,810
Property and equipment - net	49,042,210	48,928,017
Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	144,545	144,545
Other Fixed Assets [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	195,478	195,478
Fixtures and equipment and other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	340,023	340,023
Less accumulated depreciation	213,803	203,303
Property and equipment - net	$ 126,220	$ 136,720

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Note Payable - Related Party (Details) - Related Party Note Payable [Member] - USD ($)		3 Months Ended
	Dec. 15, 2004	Oct. 31, 2016	Oct. 31, 2015
Debt Instrument [Line Items]
Proceeds from related party	$ 1,000,000
Minimum percentage of beneficially owned common stock	10.00%
Interest rate		5.00%
Periodic payment of interest		$ 12,500
Interest expense		$ 12,500	$ 12,500

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Employees' Retirement Plan (Details) - USD ($)	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Pension contributions	$ 102,509	$ 97,423
Employer contributions	$ 12,611	$ 13,153

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Cash Flow Information (Details) - USD ($)	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Supplemental Cash Flow Elements [Abstract]
Interest paid, net of capitalized interest of $2,742 (2016) and $11,348 (2015)	$ 61,994	$ 64,690
Income taxes paid	50,946	231,654
Capitalized interest	$ 2,742	$ 11,348

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Accumulated Other Comprehensive Income (Details) - USD ($)	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Accumulated Other Comprehensive Income [Abstract]
Beginning balance, net of tax effect	$ 264,541	$ 196,033
Other comprehensive income, net of tax effect:
Unrealized (loss) on available-for-sale securities	(65,636)	(30,404)
Tax effect	22,500	11,000
Unrealized (loss) on available-for-sale securities, net of tax effect	(43,136)	(19,404)
Amounts reclassified from accumulated other comprehensive income, net of tax effect:
Unrealized (losses) on available-for-sale securities reclassified	(1,354)
Tax effect	500
Amount reclassified, net of tax effect	(854)
Ending balance, net of tax effect	$ 220,551	$ 176,629

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Entry into a Material Definitive Agreement (Details) - Thirty Three Bond Street Llc [Member]	Jun. 16, 2015 USD ($)
Related Party Transaction [Line Items]
Deferred revenue	$ 3,500,000
Tendered amount with execution of the Amendment	2,250,000
Balance due	$ 1,250,000

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Contingencies (Details) - Fishkill, New York Property [Member] - USD ($)	3 Months Ended	12 Months Ended
	Oct. 31, 2016	Jul. 31, 2016
Damages filed		$ 376,467
Charge to operations	$ 141,132	$ 279,213