Operating Leases

6 Months Ended

Jan. 31, 2021

Leases [Abstract]

Operating Leases

7. 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.

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

	Three Months Ended				Six Months Ended
	January 31				January 31
	2021		2020		2021		2020
Base rent - fixed	$	4,629,553	$	4,515,930	$	9,062,131	$	9,052,029
Reimbursements of common area costs		152,164		163,775		306,695		313,435
Non-lease components (real estate taxes)		265,150		359,355		513,035		709,511
Rental income	$	5,046,867	$	5,039,060	$	9,881,861	$	10,074,975

Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows:
	As of January 31, 2021
	Company Owned		Leased
Fiscal Year	Property		Property		Total
For the remainder of 2021	$	5,358,155	$	2,768,597	$	8,126,752
2022		10,111,752		3,998,024		14,109,776
2023		9,349,055		3,229,623		12,578,678
2024		7,537,962		2,946,006		10,483,968
2025		7,169,666		2,560,604		9,730,270
2026		5,152,745		1,932,534		7,085,279
After 2026		33,156,557		7,738,817		40,895,374
Total	$	77,835,892	$	25,174,205	$	103,010,097

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. Effective April 1, 2020, four of the Company’s property leases were extended. The effect of these lease extensions on the measurement of operating lease right-of-use assets, liabilities and rent expense follows:
	Operating Lease		Operating		Monthly Rent
	Right-of-Use-Asset		Lease Liability		Expense
Upon initial adoption, August 1, 2019	$	27,104,937	$	16,728,284	$	235,350
After various lease extensions through April 30, 2020	$	37,698,819	$	29,326,365	$	277,570

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						Six Months Ended
	January 31						January 31
	2021			2020			2021			2020
Sublease income	$	1,740,248		$	1,766,609		$	3,468,281		$	3,521,861
Operating lease cost		(832,707	)		(760,191	)		(1,665,420	)		(1,510,057	)
Excess of sublease income over lease cost	$	907,541		$	1,006,418		$	1,802,861		$	2,011,804

As of January 31, 2021, our operating leases had a weighted average remaining lease term of 17.71 years and a weighted average discount rate of 2.88%.

	Three Months Ended				Six Months Ended
	January 31				January 31
Other information:	2021		2020		2021		2020
Operating cash flows from operating leases	$	497,281	$	492,332	$	989,613	$	950,809

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of January 31, 2021:
January 31, 2022	$	2,089,683
January 31, 2023		2,124,546
January 31, 2024		2,141,424
January 31, 2025		2,158,823
January 31, 2026		2,181,170
Thereafter		26,456,772
Total undiscounted cash flows		37,152,418
Less: present value discount		(8,682,186	)
Total Lease Liabilities	$	28,470,232