Operating Leases

9 Months Ended

Apr. 30, 2025

Operating Leases

Operating Leases

6. Operating Leases:

Lessor

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

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

	Three Months Ended April 30				Nine Months Ended April 30
	2025		2024		2025		2024
Base rent - fixed	$	5,108,916	$	4,897,366	$	15,380,462	$	14,773,886
Reimbursements of common area costs		190,017		201,494		491,610		548,048
Non-lease components (real estate taxes)		333,218		265,464		942,652		781,034
Rental income	$	5,632,151	$	5,364,324	$	16,814,724	$	16,102,968

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

	As of April 30, 2025
Fiscal Year	Company Owned Property		Leased Property		Total
For the remainder of 2025	$	3,219,428	$	1,658,327	$	4,877,755
2026		9,388,302		5,030,361		14,418,663
2027		8,134,370		4,569,238		12,703,608
2028		7,296,798		4,523,987		11,820,785
2029		6,564,395		3,699,601		10,263,996
2030		5,008,575		2,277,687		7,286,262
After 2030		16,897,629		6,801,309		23,698,938
Total	$	56,509,497	$	28,560,510	$	85,070,007

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.

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

	Three Months Ended April 30						Nine Months Ended April 30
	2025			2024			2025			2024
Sublease income included in base rent-fixed	$	1,863,814		$	1,813,879		$	5,529,394		$	5,485,078
Operating lease cost		(749,726	)		(749,180	)		(2,248,031	)		(2,246,875	)
Excess of sublease income over lease cost	$	1,114,088		$	1,064,699		$	3,281,363		$	3,238,203

	Three Months Ended April 30				Nine Months Ended April 30
Other information:	2025		2024		2025		2024
Operating cash flows from operating leases	$	542,501	$	538,294	$	1,623,144	$	1,610,243

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of April 30, 2025:

Period Ended April 30,	Operating Leases
2026	$	2,201,559
2027		2,323,725
2028		2,343,903
2029		2,364,753
2030		2,386,296
Thereafter		19,871,896
Total undiscounted cash flows		31,492,132
Less: present value discount		(7,131,001	)
Total Lease Liabilities	$	24,361,131

As of April 30, 2025, our operating leases had a weighted average remaining lease term of 15.36 years and a weighted average discount rate of 3.63%.