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Operating Leases

3 Months Ended

Oct. 31, 2024

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 October 31,
	2024		2023
Base rent - fixed	$	5,087,276	$	4,921,887
Reimbursements of common area costs		150,732		146,860
Non-lease components (real estate taxes)		301,121		255,054
Rental income	$	5,539,129	$	5,323,801

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


	As of October 31, 2024
Fiscal Year	Company Owned Property		Leased Property		Total
For the remainder of 2025	$	9,204,641	$	4,698,019	$	13,902,660
2026		8,821,697		4,635,555		13,457,252
2027		7,917,146		4,289,367		12,206,513
2028		7,079,574		4,243,494		11,323,068
2029		6,347,171		3,418,470		9,765,641
2030		5,914,145		2,184,682		8,098,827
After 2030		15,805,054		5,052,775		20,857,829
Total	$	61,089,428	$	28,522,362	$	89,611,790

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:

Schedule of rental expense
	Three Months Ended October 31,
	2024			2023
Sublease rental income	$	1,821,654		$	1,824,879
Operating lease costs		(749,125	)		(748,711	)
Excess of sublease income over lease cost	$	1,072,529		$	1,076,168


	Three Months Ended October 31,
	2024		2023
Other information:
Operating cash flows from operating leases	$	540,300	$	531,288

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of October 31, 2024:


Period Ended October 31,	Operating Leases
2025	$	2,171,538
2026		2,272,955
2027		2,333,737
2028		2,354,249
2029		2,375,444
Thereafter		21,067,467
Total undiscounted cash flows		32,575,390
Less: present value discount		(7,577,169	)
Total Lease Liabilities	$	24,998,221

As of October 31, 2024, our operating leases had a weighted average remaining lease term of 15.70 years and a weighted average discount rate of 3.66%.