Operating Leases

Lessor

The Company leases office and retail space to tenants under operating leases in commercial buildings. The rental terms range from approximately 5 to 49 years. The leases provide for the payment of fixed base rent payable monthly in advance as well as reimbursements of real estate taxes and common area costs. The Company has elected to account for lease revenues and the reimbursements of common area costs as a single component included as rental income in our condensed consolidated statements of operations and retained earnings.

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

	Three Months Ended October
	2019		2018
Base rent - fixed	$	4,536,099	$	4,698,885
Reimbursements of common area costs		149,660		164,588
Non-lease components (real estate taxes)		350,156		297,699
Rental income	$	5,035,915	$	5,161,172

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

	Under ASC 842
	As of October 31, 2019
	Company		Leased
Fiscal Year	Owned Property		Property		Total
For the remainder of 2020	$	7,529,034	$	4,590,212	$	12,119,246
2021		9,521,380		5,009,044		14,530,424
2022		7,878,165		4,039,069		11,917,234
2023		7,399,288		3,270,666		10,669,954
2024		6,483,940		2,987,050		9,470,990
2025		7,727,830		2,409,346		10,137,176
After 2025		44,904,996		12,433,194		57,338,190
Total	$	91,444,633	$	34,738,581	$	126,183,214

	Under ASC 840
	As of July 31, 2019
	Company		Leased
Fiscal Year	Owned Property		Property		Total
2020	$	10,038,712	$	6,120,283	$	16,158,995
2021		9,521,380		5,009,044		14,530,424
2022		7,878,165		4,039,069		11,917,234
2023		7,399,288		3,270,666		10,669,954
2024		6,483,940		2,987,050		9,470,990
After 2024		52,632,826		14,842,540		67,475,366
Total	$	93,954,311	$	36,268,652	$	130,222,963

	Lessee The Company’s real estate operations include leased properties under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2073, including options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements.

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

	Three Months Ended
	October 31, 2019
Operating lease cost	$	749,866
Sublease income		1,755,252
Excess of sublease income over lease cost	$	1,005,386

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of October 31, 2019:

October 31, 2020	$	1,896,768
October 31, 2021		1,976,288
October 31, 2022		2,058,457
October 31, 2023		2,072,707
October 31, 2024		2,087,467
Thereafter		11,800,909
Total undiscounted cash flows		21,892,596
Less: present value discount		(4,331,420	)
Total Lease Liabilities	$	17,561,176

Other information:
Operating cash flows from operating leases	$	473,105
Weighted-average remaining lease term – operating leases		11.48 years
Weighted-average discount rate – operating leases		3.88%

The following tables represents future minimum lease payments under noncancelable operating leases at July 31, 2019 as presented in the Company’s Annual Report on Form 10K:

	Operating
Fiscal Year	Leases
2020	$	1,897,318
2021		1,941,494
2022		2,057,814
2023		2,072,000
2024		2,086,697
After 2024		11,701,293
Total required*	$	21,756,616

Minimum payments have not been reduced by minimum sublease rentals of $36,268,652 under operating leases due in the future under non-cancelable leases.

Rent payments related to an affiliate principally owned by a director of the Company totaled $246,812 for the three months ended October 31, 2019 and 2018. The rental payments are for two leases which expire May 31, 2029 and April 30, 2031, respectively.