Property and Equipment

3 Months Ended

Oct. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

5.	Property and Equipment:
	All buildings owned by the Company are held for leasing except for a small portion used for Company Offices.

	October 31		July 31
	2019		2019
Land	$	6,067,805	$	6,067,805
Buildings held for leasing:
Buildings and improvements		66,112,845		86,461,353
Improvements to leased property		–		1,478,012
Construction in progress		3,252,057		2,325,940
		69,364,902		90,265,305
Less accumulated depreciation		31,564,537		43,310,270
Buildings - net		37,800,365		46,955,035
Fixtures and equipment and other:
Fixtures and equipment		144,545		144,545
Other fixed assets		162,010		164,066
		306,555		308,611
Less accumulated depreciation		177,497		202,148
Fixtures and equipment and other - net		129,058		106,463
Property and equipment - net	$	43,997,228	$	53,129,303
Construction in progress includes:
	October 31		July 31
	2019		2019
Building improvements at 9 Bond Street in Brooklyn, NY	$	223,680	$	29,132
Building improvements at 25 Elm Place in Brooklyn, NY		581,783		426,533
Improvements to leased property		131,119		303,975
Building improvements at Fishkill, NY building		2,315,475		1,566,300
	$	3,252,057	$	2,325,940
Leased property included in the Company's real estate rental operations consists of the following:

	Estimated Useful Life	October 31, 2019
Operating lease right-of-use-assets	Lease Terms – 7 to 54 years	$	27,104,937
Less: Accumulated Amortization			(579,094	)
Operating lease right-of-use-assets		$	26,525,843

The initial recording of operating lease right-of-use assets on August 1, 2019 includes adjustments of $10,190,334, net of accumulated amortization, primarily relating to building and improvements included in a ground lease with an affiliate, principally owned by a director of the Company (“landlord”). The ground lease required the Company to construct a building during the lease period. Upon lease termination in 2029, the building and all improvements are turned over to the landlord as property owner.

Until this lease agreement with the landlord terminates in 2029, the Company remains solely responsible for the building, improvements and maintenance of the property included in this lease, and is solely entitled to tax depreciation and other tax deductions.