EXHIBIT 13

J.W. MAYS, INC.     Annual Report
  2011Year Ended July 31, 2011




---

J.W. MAYS, INC.
Contents
Page No.Summary of Selected Financial Data
    
    
    
    2The Company
    
    
    
    2Message to Shareholders
    
    
    
    3Consolidated Balance Sheets
    
    
    
    4-5Consolidated Statements of Income and
      Retained Earnings
    
    
    
    6Consolidated Statements of Comprehensive
      Income
    
    
    
    6Consolidated Statements of Cash Flows
    
    
    
    7Notes to Consolidated Financial Statements
    
    
    
    8-18Report of Management
    
    
    
    19Report of Independent Registered Public
      Accounting Firm
    
    
    
    19Five Year Summary of Consolidated
      Operations
    
    
    
    20Managements Discussion and Analysis of
      Financial Condition and Results of Operations
    
    
    
    21-24Controls and Procedures
    
    
    
    24Quarterly Financial Information (Unaudited)
    
    
    
    25Common Stock and Dividend Information
    
    
    
    26Officers and Directors
    
    
    
    27Executive Offices9 Bond Street, Brooklyn, N.Y. 11201-5805
Transfer Agent and RegistrarAmerican Stock Transfer & Trust Company59 Maiden LaneNew York, N.Y. 10038-4502
Special CounselHolland & Knight LLP31 West 52nd StreetNew York, N.Y. 10019
Independent Registered Public Accounting FirmDArcangelo & Co., LLP800 Westchester Avenue, Suite N-400Rye Brook, N.Y. 10573-1301
Annual MeetingThe Annual Meeting of Shareholders will beheld on Tuesday, November 22, 2011, at10:00 A.M., New York time, at J.W. MAYS, INC.,9 Bond Street, Brooklyn, New York.

J.W. MAYS, INC.
Summary of Selected Financial Data(dollars in thousands except per share data)
2011
    
    2010
    
    2009
    
    2008
    
    2007Rental Income
    
    
    $
    
    14,857
    
    
    
    $
    
    14,525
    
    
    
    $
    
    13,853
    
    
    
    $
    
    12,295
    
    
    
    $
    
    11,364Recovery of Real Estate Taxes
    
    
    
    
    
    243
    
    
    
    
    547
    
    
    
    
    91
    
    
    
    
    39Gain (Loss) on Disposition of Property and Equipment
    
    
    
    (8
    )
    
    
    
    
    
    
    (5
    )
    
    
    
    
    (17
    )
    
    
    
    
    4,309Total Revenues
    
    
    
    14,849
    
    
    
    
    14,768
    
    
    
    
    14,395
    
    
    
    
    12,369
    
    
    
    
    15,712Net Income (loss) from Continuing Operations
    
    
    
    758
    
    
    
    
    661
    
    
    
    
    665
    
    
    
    
    (174
    )
    
    
    
    
    1,780Net Income (loss) from Discontinued Operationsnet of taxes
    
    
    
    (228
    )
    
    
    
    
    (229
    )
    
    
    
    
    91
    
    
    
    
    98
    
    
    
    
    276Net Income (loss)
    
    
    
    530
    
    
    
    
    432
    
    
    
    
    756
    
    
    
    
    (76
    )
    
    
    
    
    2,056Real EstateNet
    
    
    
    44,592
    
    
    
    
    44,374
    
    
    
    
    44,831
    
    
    
    
    45,277
    
    
    
    
    44,779Total Assets
    
    
    
    56,341
    
    
    
    
    55,245
    
    
    
    
    55,707
    
    
    
    
    57,283
    
    
    
    
    60,162Long-Term Debt:Mortgages and Term Loan Payable
    
    
    
    5,750
    
    
    
    
    9,096
    
    
    
    
    8,564
    
    
    
    
    9,514
    
    
    
    
    11,554Note Payable
    
    
    
    1,000
    
    
    
    
    
    
    1,000
    
    
    
    
    1,000
    
    
    
    
    1,000Other
    
    
    
    922
    
    
    
    
    557
    
    
    
    
    805
    
    
    
    
    1,370
    
    
    
    
    1,078Total
    
    
    
    7,672
    
    
    
    
    9,653
    
    
    
    
    10,369
    
    
    
    
    11,884
    
    
    
    
    13,632Shareholders Equity
    
    
    
    41,433
    
    
    
    
    40,818
    
    
    
    
    40,286
    
    
    
    
    39,454
    
    
    
    
    39,697Income (loss) per Common Share from Continuing Operations
    
    
    
    .37
    
    
    
    
    .33
    
    
    
    
    .33
    
    
    
    
    (.09
    )
    
    
    
    
    .88Income (loss) per Common Share from Discontinued Operations
    
    
    
    (.11
    )
    
    
    
    
    (.12
    )
    
    
    
    
    .05
    
    
    
    
    .05
    
    
    
    
    .14Income (loss) Per Common Share
    
    
    $
    
    .26
    
    
    
    $
    
    .21
    
    
    
    $
    
    .38
    
    
    
    $
    
    (.04
    )
    
    
    
    $
    
    1.02Cash Dividends Declared Per Share
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    Average common shares outstanding for fiscal years 2007 through 2011; 2,015,780.
The Company

J.W. Mays, Inc. was founded in 1924 and incorporated under the laws of the State of New York on July 6, 1927.
The Company operates a number of commercial real estate properties located in Brooklyn and Jamaica in New York City, in Levittown and Massapequa, Long Island, New York, in Fishkill, Dutchess County, New York and in Circleville, Ohio. The major portion of these properties is owned and the balance
  is leased. A substantial percentage of these properties are leased to tenants while the remainder is available for lease.
More comprehensive information concerning the Company appears in its Form 10-K Annual Report for the fiscal year ended July 31, 2011.
2

J.W. MAYS, INC.
To Our Shareholders:

The financial condition of our Company continued to be positive during the fiscal year ended July 31, 2011 with profits earned in three of the four quarters, notwithstanding the continued national and international recession during this period.
In fiscal 2011, our revenues from continuing operations were $14,848,512 compared to $14,767,737 in the 2010 fiscal year. Net income for fiscal 2011 was $530,356, or $.26 per share. This compares to net income of $432,208, or $.21 per share for fiscal 2010.
Increased rentals from existing tenants and a new tenant that will commence occupancy and payment of rent in fiscal 2012, should adequately cover the Companys planned operating and capital requirements.
Our emphasis on pursuing and obtaining government agencies, educational institutions and prospective corporate and retail tenants in the last several years has helped us weather the commercial property headwinds which, hopefully, are abating.
I believe our Company is well-positioned to continue its positive operational performance. I specifically want to thank the Mays personnel and our Board colleagues for their ongoing commitment and support, and I want to thank our shareholders for their continuing belief in our Company and its future.
Lloyd J. ShulmanChairman, President and Chief Executive Officer
October 6, 2011
3

J.W. MAYS, INC.
Consolidated Balance Sheets
July 31, 2011 and 2010Assets
2011
    
    2010Property and Equipmentat cost (Notes 1, 3, 4 and 15):Buildings and improvements
    
    
    $
    
    65,575,947
    
    
    
    $
    
    65,404,942Improvements to leased property
    
    
    
    3,445,698
    
    
    
    
    3,445,698Fixtures and equipment
    
    
    
    533,341
    
    
    
    
    533,341Land
    
    
    
    6,067,805
    
    
    
    
    6,067,805Other
    
    
    
    209,864
    
    
    
    
    245,387Construction in progress
    
    
    
    1,554,457
    
    
    77,387,112
    
    
    
    
    75,697,173Less accumulated depreciation and amortization
    
    
    
    32,696,221
    
    
    
    
    31,156,602Property and equipmentnet
    
    
    
    44,690,891
    
    
    
    
    44,540,571Current Assets:Cash and cash equivalents (Notes 10 and 11)
    
    
    
    2,656,354
    
    
    
    
    1,551,630Marketable securities (Notes 1, 2 and 11)
    
    
    
    619,096
    
    
    
    
    351,267Receivables (Notes 1, 7 and 11)
    
    
    
    264,857
    
    
    
    
    249,968Income taxes refundable
    
    
    
    315,577
    
    
    
    
    256,198Deferred income taxes (Notes 1 and 5)
    
    
    
    331,000
    
    
    
    
    285,000Security deposits
    
    
    
    128,704
    
    
    
    
    333,590Prepaid expenses
    
    
    
    1,197,574
    
    
    
    
    1,236,551Total current assets
    
    
    
    5,513,162
    
    
    
    
    4,264,204Other Assets:Deferred charges (Notes 1 and 12)
    
    
    
    3,468,585
    
    
    
    
    3,433,658Less accumulated amortization (Notes 1 and 12)
    
    
    
    1,565,380
    
    
    
    
    1,842,480Net
    
    
    
    1,903,205
    
    
    
    
    1,591,178Receivables (Notes 1 and 7)
    
    
    
    150,000
    
    
    
    
    150,000Security deposits
    
    
    
    1,145,434
    
    
    
    
    862,911Unbilled receivables (Notes 1, 7 and 11)
    
    
    
    1,606,099
    
    
    
    
    1,925,781Marketable securities (Notes 1, 2 and 11)
    
    
    
    1,332,460
    
    
    
    
    1,910,407Total other assets
    
    
    
    6,137,198
    
    
    
    
    6,440,277TOTAL ASSETS
    
    
    $
    
    56,341,251
    
    
    
    $
    
    55,245,052See Notes to Consolidated Financial Statements.
4

Liabilities and Shareholders Equity
2011
    
    2010Long-Term Debt:Mortgages and term loan payable (Notes 4 and 11)
    
    
    $
    
    5,750,259
    
    
    
    $
    
    9,096,527Note payablerelated party (Notes 11 and 14)
    
    
    
    1,000,000
    
    
    Security deposits payable (Note 11)
    
    
    
    836,235
    
    
    
    
    556,736Payroll and other accrued liabilities (Notes 6 and 8)
    
    
    
    85,570
    
    
    Total long-term debt
    
    
    
    7,672,064
    
    
    
    
    9,653,263Deferred Income Taxes (Notes 1 and 5):
    
    
    
    2,091,000
    
    
    
    
    1,804,000Current Liabilities:Accounts payable
    
    
    
    142,593
    
    
    
    
    95,049Payroll and other accrued liabilities (Notes 6 and 8)
    
    
    
    1,511,225
    
    
    
    
    1,159,881Other taxes payable
    
    
    
    3,376
    
    
    
    
    2,695Current portion of long-term debt (Notes 4, 11 and 14)
    
    
    
    3,346,267
    
    
    
    
    1,365,606Current portion of security deposits payable (Note 11)
    
    
    
    141,704
    
    
    
    
    346,590Total current liabilities
    
    
    
    5,145,165
    
    
    
    
    2,969,821Total liabilities
    
    
    
    14,908,229
    
    
    
    
    14,427,084Shareholders Equity:Common stock, par value $1 each share (shares5,000,000 authorized; 2,178,297 issued)
    
    
    
    2,178,297
    
    
    
    
    2,178,297Additional paid in capital
    
    
    
    3,346,245
    
    
    
    
    3,346,245Unrealized gain on available-for-sale securitiesnet of deferred taxes of $64,000 at July 31, 2011 and $21,000 at July 31, 2010. (Notes 1, 2, 5 and 11)
    
    
    
    126,415
    
    
    
    
    41,717Retained earnings
    
    
    
    37,069,917
    
    
    
    
    36,539,56142,720,874
    
    
    
    
    42,105,820Less common stock held in treasury, at cost162,517 shares at July 31, 2011 and July 31, 2010 (Note 13)
    
    
    
    1,287,852
    
    
    
    
    1,287,852Total shareholders equity
    
    
    
    41,433,022
    
    
    
    
    40,817,968Commitments (Notes 6 and 7) and Contingencies (Note 15)TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    
    $
    
    56,341,251
    
    
    
    $
    
    55,245,052See Notes to Consolidated Financial Statements.
5

J.W. MAYS, INC.
Consolidated Statements of Income and Retained Earnings
Years Ended July 31,2011
    
    2010
    
    2009RevenuesRental income (Notes 1, 3 and 7)
    
    
    $
    
    14,856,365
    
    
    
    $
    
    14,524,314
    
    
    
    $
    
    13,853,916Recovery of real estate taxes
    
    
    
    
    
    
    
    
    243,423
    
    
    
    
    546,418(Loss) on disposition of property and equipment
    
    
    
    (7,853
    )
    
    
    
    
    
    
    
    
    
    (5,184
    )Total revenues
    
    
    
    14,848,512
    
    
    
    
    14,767,737
    
    
    
    
    14,395,150ExpensesReal estate operating expenses (Notes 3 and 6)
    
    
    
    7,837,227
    
    
    
    
    7,583,514
    
    
    
    
    7,281,481Administrative and general expenses (Note 3)
    
    
    
    3,574,616
    
    
    
    
    3,828,033
    
    
    
    
    3,470,670Depreciation and amortization (Notes 1 and 3)
    
    
    
    1,556,788
    
    
    
    
    1,563,225
    
    
    
    
    1,497,675Total expenses
    
    
    
    12,968,631
    
    
    
    
    12,974,772
    
    
    
    
    12,249,826Income from continuing operations before investment income (loss), interest expense and income taxes
    
    
    
    1,879,881
    
    
    
    
    1,792,965
    
    
    
    
    2,145,324Investment income (loss) and interest expense:Investment income (loss) (Notes 1 and 2)
    
    
    
    103,084
    
    
    
    
    71,720
    
    
    
    
    (77,877
    )Interest expense (Notes 3, 4, 10 and 14)
    
    
    
    (652,830
    )
    
    
    
    
    (723,747
    )
    
    
    
    
    (762,766
    )(549,746
    )
    
    
    
    
    (652,027
    )
    
    
    
    
    (840,643
    )Income from continuing operations before income taxes
    
    
    
    1,330,135
    
    
    
    
    1,140,938
    
    
    
    
    1,304,681Income taxes provided (Notes 1 and 5)
    
    
    
    572,000
    
    
    
    
    480,000
    
    
    
    
    640,000Net income from continuing operations
    
    
    
    758,135
    
    
    
    
    660,938
    
    
    
    
    664,681Discontinued operations (Note 3)Income (loss) from discontinued operationsnet of taxes
    
    
    
    (227,779
    )
    
    
    
    
    (228,730
    )
    
    
    
    
    91,405Net income
    
    
    
    530,356
    
    
    
    
    432,208
    
    
    
    
    756,086Retained earnings, beginning of year
    
    
    
    36,539,561
    
    
    
    
    36,107,353
    
    
    
    
    35,351,267Retained earnings, end of year
    
    
    $
    
    37,069,917
    
    
    
    $
    
    36,539,561
    
    
    
    $
    
    36,107,353Income per common share from continuing operations
    
    
    $
    
    .37
    
    
    
    $
    
    .33
    
    
    
    $
    
    .33Income (loss) per common share from discontinued operations
    
    
    
    (.11
    )
    
    
    
    
    (.12
    )
    
    
    
    
    .05Income per common share
    
    
    $
    
    .26
    
    
    
    $
    
    .21
    
    
    
    $
    
    .38Dividends per share
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    Average common shares outstanding
    
    
    
    2,015,780
    
    
    
    
    2,015,780
    
    
    
    
    2,015,780See Notes to Consolidated Financial Statements.
Consolidated Statements of Comprehensive Income
Years Ended July 31,2011
    
    2010
    
    2009Net income
    
    
    $
    
    530,356
    
    
    
    $
    
    432,208
    
    
    
    $
    
    756,086Other comprehensive income, net of taxUnrealized gain (loss) on available-for-sale securities, net of taxes of $43,000, $51,000 and $40,000 for the fiscal years 2011, 2010 and 2009, respectively
    
    
    
    70,978
    
    
    
    
    99,795
    
    
    
    
    (29,346
    )Reclassification adjustment
    
    
    
    13,720
    
    
    
    
    
    
    
    
    
    105,680Net change in other comprehensive income
    
    
    
    84,698
    
    
    
    
    99,795
    
    
    
    
    76,334Comprehensive income
    
    
    $
    
    615,054
    
    
    
    $
    
    532,003
    
    
    
    $
    
    832,420See Notes to Consolidated Financial Statements.
6

J.W. MAYS, INC.
Consolidated Statements of Cash Flows
Years Ended July 31,2011
    
    2010
    
    2009Cash Flows From Operating ActivitiesIncome from continuing operations
    
    
    $
    
    758,135
    
    
    
    $
    
    660,938
    
    
    
    $
    
    664,681Income (loss) from discontinued operationsnet of taxes
    
    
    
    (227,779
    )
    
    
    
    
    (228,730
    )
    
    
    
    
    91,405Net income
    
    
    
    530,356
    
    
    
    
    432,208
    
    
    
    
    756,086Adjustments to reconcile net income to net cash provided by operating activities:Gain on nonmonetary exchange of fixed assets
    
    
    
    
    
    (900,000
    )
    
    
    Deferred income taxes
    
    
    
    198,000
    
    
    
    
    (101,000
    )
    
    
    
    
    (86,000
    )Realized (gain) loss on marketable securities
    
    
    
    (10,264
    )
    
    
    
    
    43,880
    
    
    
    
    223,881Loss on disposition of property and equipment
    
    
    
    7,853
    
    
    
    
    
    
    5,184Depreciation and amortization
    
    
    
    1,556,788
    
    
    
    
    1,660,684
    
    
    
    
    1,625,016Amortization of deferred charges
    
    
    
    363,148
    
    
    
    
    383,454
    
    
    
    
    413,736Other assetsdeferred charges
    
    
    
    (675,175
    )
    
    
    
    
    (288,464
    )
    
    
    unbilled receivables
    
    
    
    319,682
    
    
    
    
    550,807
    
    
    
    
    382,488receivables
    
    
    
    
    
    31,467
    
    
    
    
    (178,400
    )Changes in:Receivables
    
    
    
    (14,889
    )
    
    
    
    
    18,533
    
    
    
    
    (97,470
    )Prepaid expenses
    
    
    
    38,977
    
    
    
    
    737,927
    
    
    
    
    (140,909
    )Income taxes refundable
    
    
    
    (59,379
    )
    
    
    
    
    (256,198
    )
    
    
    Accounts payable
    
    
    
    47,544
    
    
    
    
    3,646
    
    
    
    
    52,039Payroll and other accrued liabilities
    
    
    
    436,914
    
    
    
    
    (317,074
    )
    
    
    
    
    (576,653
    )Income taxes payable
    
    
    
    
    
    (346,355
    )
    
    
    
    
    243,410Other taxes payable
    
    
    
    681
    
    
    
    
    395
    
    
    
    
    409Net cash provided by operating activities
    
    
    
    2,740,236
    
    
    
    
    1,653,910
    
    
    
    
    2,622,817Cash Flows From Investing ActivitiesAcquisition of property and equipment
    
    
    
    (1,714,961
    )
    
    
    
    
    (263,758
    )
    
    
    
    
    (1,243,590
    )Security deposits
    
    
    
    (77,637
    )
    
    
    
    
    197,011
    
    
    
    
    48,735Marketable securities:Receipts from sales or maturities
    
    
    
    804,259
    
    
    
    
    1,006,120
    
    
    
    
    176,119Payments for purchases
    
    
    
    (356,179
    )
    
    
    
    
    (1,485,439
    )
    
    
    
    
    (304,169
    )Net cash (used) by investing activities
    
    
    
    (1,344,518
    )
    
    
    
    
    (546,066
    )
    
    
    
    
    (1,322,905
    )Cash Flows From Financing ActivitiesIncrease (decrease)security deposits payable
    
    
    
    74,613
    
    
    
    
    (158,538
    )
    
    
    
    
    (53,944
    )Borrowingsmortgage and other debt
    
    
    
    
    
    850,000
    
    
    Paymentsmortgage and other debt payments
    
    
    
    (365,607
    )
    
    
    
    
    (901,395
    )
    
    
    
    
    (2,067,639
    )Net cash (used) by financing activities
    
    
    
    (290,994
    )
    
    
    
    
    (209,933
    )
    
    
    
    
    (2,121,583
    )Net increase (decrease) in cash and cash equivalents
    
    
    
    1,104,724
    
    
    
    
    897,911
    
    
    
    
    (821,671
    )Cash and cash equivalents at beginning of year
    
    
    
    1,551,630
    
    
    
    
    653,719
    
    
    
    
    1,475,390Cash and cash equivalents at end of year
    
    
    $
    
    2,656,354
    
    
    
    $
    
    1,551,630
    
    
    
    $
    
    653,719See Notes to Consolidated Financial Statements.
7

J.W. MAYS, INC.
Notes to Consolidated Financial Statements

1. Summary of Significant Accounting Policies:
CONSOLIDATION: The consolidated financial statements include the accounts of the Company, a New York corporation and its subsidiaries, which are wholly-owned. Material intercompany items have been eliminated in consolidation.
ACCOUNTING RECORDS AND USE OF ESTIMATES: The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America (GAAP). The preparation of the Companys financial statements in accordance with GAAP requires management to
  make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance
  for doubtful accounts, depreciation and amortization, income tax assets and liabilities, fair value of marketable securities and revenue recognition. Estimates are based on historical experience where applicable or other assumptions that management believes are reasonable under the circumstances. Due to
  the inherent uncertainty involved in making estimates, actual results may differ from those estimates under different assumptions or conditions.
RENTAL INCOME: All of the real estate owned by the Company is held for leasing to tenants except for a small portion used for Company offices. Rent is recognized from tenants under executed leases no later than on an established date or on an earlier date if the tenant should commence conducting
  business. Unbilled receivables represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. Contingent rental income is recorded when earned and is not based on tenant revenue. Based upon its
  periodic assessment of the quality of the receivables, management, using its historical knowledge of the tenants and industry experience, determines whether a reserve or write-off is required. Management has determined that no allowance for uncollectable receivables is considered necessary.
PROPERTY AND EQUIPMENT: Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of improvements to leased property is calculated over the shorter of the life of the lease or the estimated useful life of the
  improvements. Lives used to determine depreciation and amortization are generally as follows:
Buildings and improvements
    
    
    
    18-40 yearsImprovements to leased property
    
    
    
    3-40 yearsFixtures and equipment
    
    
    
    7-12 yearsOther
    
    
    
    3-5 yearsMaintenance, repairs, renewals and improvements of a non-permanent nature are charged to expense when incurred. Expenditures for additions and major renewals or improvements are capitalized along with the associated interest cost during construction. The cost of assets sold or retired and the
  accumulated depreciation or amortization thereon are eliminated from the respective accounts in the year of disposal, and the resulting gain or loss is credited or charged to income. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the assets estimated useful life.
The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. At July 31, 2011 and 2010, there were no impairments of its property and equipment.
COMPREHENSIVE INCOME: FASB (Financial Accounting Standards Board) ASC (Accounting Standards Codification) 220-10, Reporting Comprehensive Income, establishes standards for the reporting of comprehensive income and its components. It requires all items that are required to be
  recognized as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other income statement information. Comprehensive income is defined to include all changes in equity except those resulting from investments by and distributions to
  shareholders.
8

DEFERRED CHARGES: Deferred charges consist principally of costs incurred in connection with the leasing of property to tenants. Such costs are amortized over the related lease periods, ranging from 1 to 21 years, using the straight-line method.
INCOME TAXES: Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Companys assets and liabilities. Deferred tax assets result principally from the recording of certain accruals and reserves which currently are not deductible
  for tax purposes. Deferred tax liabilities result principally from temporary differences in the recognition of gains and losses from certain investments and from the use, for tax purposes, of accelerated depreciation.
INCOME PER SHARE OF COMMON STOCK: Income per share has been computed by dividing net income for the year by the weighted average number of shares of common stock outstanding during the year, adjusted for the purchase of treasury stock. Shares used in computing income per share
  were 2,015,780 in fiscal years 2011, 2010 and 2009.
NONMONETARY ASSET EXCHANGES: In connection with the lease termination and settlement, the Company transferred title to 484 Fulton Street, Brooklyn, New York and in return received title to 14 Hanover Place, Brooklyn, New York. These transactions are recorded at the appraised values of the
  buildings transferred and received. The appraised values of the two properties were not derived from a negotiation between parties as to the actual purchase and sale prices for such properties since no such negotiation took place. The exchange was accounted for under ASC Topic 805 Exchanges of
  Nonmonetary Assets.
MARKETABLE SECURITIES: The Company categorizes marketable securities as either trading, available-for-sale or held-to-maturity at the time of purchase. Trading securities are carried at fair value with unrealized gains and losses included in income. Available-for-sale securities are carried at fair value
  measurements using quoted prices in active markets for identical assets or liabilities (which is considered a Level 1 valuation) with unrealized gains and losses recorded as a separate component of shareholders equity. Held-to-maturity securities are carried at amortized cost. Dividends and interest income
  are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The Company did
  not classify any securities as trading during the three years ended July 31, 2011. The implementation of ASC 810-10, Fair Value Measurements, had no impact on the presentation of marketable securities in the Companys financial statements. The Company does not have any assets valued using Level 2 or
  3 valuation methods during the three years ended July 31, 2011.
In accordance with the provisions of Fair Value Measurements, the following are the entitys financial assets presented at fair value at July 31, 2011.
Fair value measurements at reporting date using
Description
    
    July 312011
    
    Quoted pricesin activemarkets foridenticalassets/liabilities
    
    Significantotherobservableinputs
    
    Significantunobservableinputs
    
    July 312010
    
    Quoted pricesin activemarkets foridenticalassets/liabilities
    
    Significantotherobservableinputs
    
    Significantunobservableinputs(Level 1)
    
    (Level 2)
    
    (Level 3)
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Assets:Marketable securitiesAvailable-for-sale
    
    
    $
    
    1,332,460
    
    
    
    $
    
    1,332,460
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    1,248,707
    
    
    
    $
    
    1,248,707
    
    
    
    $
    
    
    
    
    
    $
    
    Held-to-maturity
    
    
    
    575,937
    
    
    
    
    575,937
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    979,218
    
    
    
    
    979,218
    
    
    
    
    
    
    
    
    
    
    
    
    $
    
    1,908,397
    
    
    
    $
    
    1,908,397
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    2,227,925
    
    
    
    $
    
    2,227,925
    
    
    
    $
    
    
    
    
    
    $
    
    RECLASSIFICATIONS: The consolidated financial statements for prior years reflect certain reclassifications to conform with classifications adopted in 2010. These reclassifications have no effect on net income or loss.
9

2. Marketable Securities:
As of July 31, 2011 and 2010, the Companys marketable securities were classified as follows:
July 31, 2011
    
    July 31, 2010Cost
    
    GrossUnrealizedGains
    
    GrossUnrealizedLosses
    
    FairValue
    
    Cost
    
    GrossUnrealizedGains
    
    GrossUnrealizedLosses
    
    FairValueCurrent:Held-to-Maturity:Certificate of deposit
    
    
    $
    
    50,157
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    50,157
    
    
    
    $
    
    50,032
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    50,032Corporate debt securities
    
    
    
    568,939
    
    
    
    
    7,072
    
    
    
    
    74
    
    
    
    
    575,937
    
    
    
    
    301,235
    
    
    
    
    3,412
    
    
    
    
    123
    
    
    
    
    304,524$
    
    619,096
    
    
    


    $
    
    7,072
    
    
    
    $
    
    74
    
    
    
    $
    
    626,094
    
    
    
    $
    
    351,267
    
    
    
    $
    
    3,412
    
    
    
    $
    
    123
    
    
    
    $
    
    354,556Non-current:Available-for-sale:Mutual funds
    
    
    $
    
    1,031,793
    
    
    
    $
    
    107,627
    
    
    
    $
    
    
    
    
    
    $
    
    1,139,420
    
    
    
    $
    
    675,739
    
    
    
    $
    
    10,328
    
    
    
    $
    
    
    
    
    
    $
    
    686,067Equity securities
    
    
    
    110,252
    
    
    
    
    82,788
    
    

    
    
    
    
    
    
    
    193,040
    
    
    
    
    510,252
    
    
    
    
    60,428
    
    
    
    
    8,040
    
    
    
    
    562,640$
    
    1,142,045
    
    
    
    $
    
    190,415
    
    
    
    $
    
    
    
    
    
    $
    
    1,332,460
    
    
    
    $
    
    1,185,991
    
    
    
    $
    
    70,756
    
    
    
    $
    
    8,040
    
    
    
    $
    
    1,248,707Held-to-Maturity:Corporate debt securitiesSecurities
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    661,700
    
    
    
    $
    
    13,127
    
    
    
    $
    
    133
    
    
    
    $
    
    674,694The Companys debt and equity securities, gross unrealized losses and fair value, aggregated by investment category and length of time that the investment securities have been in a continuous unrealized loss position, at July 31, 2011 are as follows. All of our investments in corporate debt securities
  mature in the 1-5 year time frame.
Fair Value
    
    Less Than12 MonthsCorporate debt securities
    
    
    $
    
    91,024
    
    
    
    $
    
    74Investment income (loss) for the years ended July 31, 2011, 2010 and 2009 consists of the following:
2011
    
    2010
    
    2009Interest income
    
    
    $
    
    44,409
    
    
    
    $
    
    34,379
    
    
    
    $
    
    17,029Dividend income
    
    
    
    48,072
    
    
    
    
    81,221
    
    
    
    
    128,975Gain (loss) on sale of marketable securities
    
    
    
    10,603
    
    
    
    
    (43,880
    )
    
    
    
    
    (223,881
    )Total
    
    
    $
    
    103,084
    
    
    
    $
    
    71,720
    
    
    
    $
    
    (77,877
    )3. Discontinued Operations:
The Companys lease with its landlords at the Jowein building in Brooklyn, New York expired on April 30, 2010. The Company returned the premises in as is condition and the Company has no obligation to correct, cure or take any action relating to repairing such premises other than the cure of certain
  existing violations.
As part of the settlement the Company paid to the landlords successor (490 Owner) $1,000,000. The Company also transferred to 490 Owner title to 484 Fulton Street, Brooklyn, New York (with an appraised value of $4,490,000) subject to the existing tenancy and 490 Owner has caused title to 14
  Hanover Place, Brooklyn, New York (with an appraised value of $900,000) to be transferred to the Company. The appraised values of the two buildings were merely based upon a review of comparables (other properties which are believed by the appraisers to be similar to the properties subject to the
  appraisals). The appraised values of the two properties were not derived from a negotiation between the parties as to the actual purchase and sale prices for such properties since no such negotiation took place. Nor were such appraised values derived using other valuation methods, such as the net present
  value from cash flows. Accordingly, these appraised values are merely estimated values of the properties. The exchange was accounted for under ASC Topic 805 Exchanges of Nonmonetary Assets. The tax treatment was reported as a 1031 exchange.
10

The Consolidated Statements of Income and Retained Earnings have been reclassified to show discontinued operations as a single line item. The Components are as follows:
Years Ended July 31,2011
    
    2010
    
    2009RevenuesRental income
    
    
    $
    
    
    
    
    
    $
    
    1,437,819
    
    
    
    $
    
    2,249,566Fair value adjustmentnonmonetary exchange
    
    
    
    
    
    4,490,000
    
    
    Total
    
    
    
    
    
    5,927,819
    
    
    
    
    2,249,566ExpensesReal estate operating expenses
    
    
    
    
    
    1,498,676
    
    
    
    
    1,942,820Lease termination expenses
    
    
    
    327,779
    
    
    
    
    4,731,414
    
    
    Depreciation and amortization
    
    
    
    
    
    97,459
    
    
    
    
    127,341Total
    
    
    
    327,779
    
    
    
    
    6,327,549
    
    
    
    
    2,070,161Income (loss) from discontinued operations
    
    
    
    (327,779
    )
    
    
    
    
    (399,730
    )
    
    
    
    
    179,405Income tax (benefit)
    
    
    
    (100,000
    )
    
    
    
    
    (171,000
    )
    
    
    
    
    88,000Net income (loss) from discontinued operationsnet of taxes
    
    
    $
    
    (227,779
    )
    
    
    
    $
    
    (228,730
    )
    
    
    
    $
    
    91,405As of July 31, 2010, The Company accrued all reasonably estimable expenses related to the termination of the lease. The termination agreement required the Company to remove a foot bridge over Fulton Street by June 2012. The removal of the foot bridge commenced during the year ended July 31,
  2011 and is anticipated to be completed in October 2011, accounting for substantially all the costs incurred in the current year. Approximately $160,000 of the costs incurred are included in accounts payable at July 31, 2011. No substantial costs related to the termination of the lease agreement are expected
  to be incurred in the future.
4. Long-Term DebtMortgages and Term Loan:
CurrentAnnualInterestRate
    
    FinalPaymentDate
    
    July 31, 2011
    
    July 31, 2010DueWithinOne Year
    
    DueAfterOne Year
    
    DueWithinOne Year
    
    DueAfterOne YearMortgages:Jamaica, New York property
    
    
    
    (a
    )
    
    
    
    
    6
    %
    
    
    
    
    4/01/12
    
    
    
    $
    
    1,085,542
    
    
    
    $
    
    
    
    
    
    $
    
    69,844
    
    
    
    $
    
    1,085,542Jamaica, New York property
    
    
    
    (b
    )
    
    
    
    
    6.81
    %
    
    
    
    
    10/01/11
    
    
    
    
    2,113,948
    
    
    
    
    
    
    137,910
    
    
    
    
    2,113,949Fishkill, New York property
    
    
    
    (c,d
    )
    
    
    
    
    6.98
    %
    
    
    
    
    2/18/15
    
    
    
    
    41,655
    
    
    
    
    1,631,924
    
    
    
    
    39,122
    
    
    
    
    1,673,579Bond St. building, Brooklyn, NY
    
    
    
    (d
    )
    
    
    
    
    6.98
    %
    
    
    
    
    2/18/15
    
    
    
    
    105,122
    
    
    
    
    4,118,335
    
    
    
    
    98,730
    
    
    
    
    4,223,457Jowein building, Brooklyn, NY
    
    
    
    (e
    )
    
    
    Variable
    
    
    
    8/01/10
    
    
    
    
    
    
    
    
    20,000
    
    
    Total
    
    
    
    
    
    
    
    
    $
    
    3,346,267
    
    
    
    $
    
    5,750,259
    
    
    
    $
    
    365,606
    
    
    
    $
    
    9,096,527(a) The Company, on September 11, 1996, closed a loan with a bank in the amount of $4,000,000. The loan is secured by a first mortgage lien covering the entire leasehold interest of the Company, as tenant, in a certain ground lease and building in the Jamaica, New York property. In March, 2007, the
  Company extended the loan for five years with an option for an additional five-year period. The interest rate for the extended period is 6.00% per annum. Interest and amortization of principal is being made in constant monthly amounts based on a fifteen year (15) payout period. The outstanding balance of the
  loan totaling $1,036,602 will become due and payable on April 1, 2012. The Company has not determined whether it will extend this loan or pay it in full upon maturity.
(b) The Company, on December 13, 2000, closed a loan with a bank in the amount of $3,500,000. The loan is secured by a second position leasehold mortgage covering the entire leasehold interest of the Company, as tenant, in a certain ground lease and building in the Jamaica, New York property. The
  outstanding balance of
11

the loan, totaling $2,739,452 became due and payable on October 1, 2006. The Company exercised its option to extend the loan for an additional five (5) years to October 1, 2011. The interest rate for the extended period is 6.81% per annum. The Company paid the balance due on the loan in the amount of
  $2,090,493 in September, 2011.
(c) On August 19, 2004 the Company extended the then existing loan for forty-two (42) months, with an option to convert the loan to a seven (7) year permanent mortgage loan. (See Note 4(d) below). The Company, in February 2008, converted the loan to a seven (7) year permanent mortgage loan. The
  interest rate on conversion was 6.98%.
(d) The Company, on August 19, 2004, closed a loan with a bank for a $12,000,000 multiple draw term loan. This loan financed seventy-five (75%) percent of the cost of capital improvements for an existing lease to a tenant and capital improvements for future tenant leases at the Companys Brooklyn,
  New York (Bond Street building) and Fishkill, New York properties through February 2008. The loan also financed $850,000 towards the construction of two new elevators at the Companys Brooklyn, New York property (Bond Street building). The loan consists of: a) a permanent, first mortgage loan to
  refinance an existing first mortgage loan affecting the Fishkill, New York property, which matured on July 1, 2004 (the First Permanent Loan)(see Note 4(c)), b) a permanent subordinate mortgage loan in the amount of $1,870,000 (the Second Permanent Loan), and c) multiple, successively subordinate
  loans in the amount $8,295,274 (Subordinate Building Loans). As of August 19, 2004, the Company refinanced the existing mortgage on the Companys Fishkill, New York property, which balance was $1,834,726 and took down an additional $2,820,000 for capital improvements for two tenants at the
  Companys Bond Street building in Brooklyn, New York. In fiscal 2006, 2007 and 2008, the Company drew down additional amounts totaling $916,670, on its multiple draw term loan to finance tenant improvements and brokerage commissions for the leasing of 13,026 square feet for office use at the
  Companys Bond Street building in Brooklyn, New York. The Company in February 2008 converted the loan to a seven (7) year permanent mortgage loan. The interest rate on conversion was 6.98%. Since the loan has been converted to a permanent mortgage loan, the balance of the financing on this loan
  was for the new elevators at the Companys Bond Street building in Brooklyn, New York in the amount of $850,000 referred to above. The $850,000 was drawn down in fiscal 2010.
(e) The Company, on July 22, 2005, closed a loan with a bank for $1,200,000. The loan was used to finance the construction costs and brokerage commissions associated with the leasing of 15,000 square feet for office use to a tenant at the Companys Jowein building in Brooklyn, New York. The loan
  was secured by the assignment of lease of 15,000 square feet. The loan was for a period of five (5) years and was self-amortizing, at a floating interest rate of prime plus 1.00% per annum. The loan was paid in full as of August 1, 2010.
Maturities of long-term debt-mortgages and term loan payable outstanding at July 31, 2011, are as follows: Years ending July 31, 2012 (included in current liabilities); $3,346,267, 2013; $158,662; 2014; $170,262; 2015; $5,421,335.
The carrying value of all properties collateralizing the above debt is $33,236,162 at July 31, 2011.
12

5. Income Taxes:
Significant components of the Companys deferred tax assets and liabilities as of July 31, 2011 and 2010 are a result of temporary differences related to the items described as follows:
2011
    
    2010DeferredTax Assets
    
    DeferredTax Liabilities
    
    DeferredTax Assets
    
    DeferredTax LiabilitiesRental income received in advance
    
    
    $
    
    75,942
    
    
    
    $
    
    
    
    
    
    $
    
    61,147
    
    
    
    $
    
    Unbilled receivables
    
    
    
    
    
    546,074
    
    
    
    
    
    
    654,766Property and equipment
    
    
    
    
    
    1,480,944
    
    
    
    
    
    
    1,123,591Unrealized gain on marketable securities
    
    
    
    
    
    64,741
    
    
    
    
    
    
    21,323Other
    
    
    
    255,817
    
    
    
    
    
    
    224,533
    
    
    
    
    5,000$
    
    331,759
    
    
    
    $
    
    2,091,759
    
    
    
    $
    
    285,680
    
    
    
    $
    
    1,804,680The Company has determined, based on its history of operating earnings and expectations for the future, that it is more likely than not that future taxable income will be sufficient to fully utilize the deferred tax assets at July 31, 2011 and 2010.
Income taxes provided for the years ended July 31, 2011, 2010 and 2009 consist of the following:
2011
    
    2010
    
    2009Current:Federal
    
    
    $
    
    21,519
    
    
    
    $
    
    315,000
    
    
    
    $
    
    475,000State and City
    
    
    
    186,720
    
    
    
    
    143,932
    
    
    
    
    277,000Prior:Federal
    
    
    
    47,326
    
    
    
    
    State and City
    
    
    
    18,435
    
    
    
    
    (48,932
    )
    
    
    
    
    62,000Deferred taxes (benefit)
    
    
    
    198,000
    
    
    
    
    (101,000
    )
    
    
    
    
    (86,000
    )Total provision
    
    
    $
    
    472,000
    
    
    
    $
    
    309,000
    
    
    
    $
    
    728,000Income taxes provided for the years ended July 31, 2011, 2010 and 2009 consist of the following:
2011
    
    2010
    
    2009Continuing operations
    
    
    $
    
    572,000
    
    
    
    $
    
    480,000
    
    
    
    $
    
    640,000Discontinued operations
    
    
    
    (100,000
    )
    
    
    
    
    (171,000
    )
    
    
    
    
    88,000Total provision
    
    
    $
    
    472,000
    
    
    
    $
    
    309,000
    
    
    
    $
    
    728,000Components of the deferred tax provision (benefit) for the years ended July 31, 2011, 2010 and 2009 consist of the following:
2011
    
    2010
    
    2009Book depreciation exceeding tax depreciation
    
    
    $
    
    357,354
    
    
    
    $
    
    10,372
    
    
    
    $
    
    87,557Reduction (increase) of rental income received in advance
    
    
    
    (14,795
    )
    
    
    
    
    104,739
    
    
    
    
    111,833(Decrease) in unbilled receivables
    
    
    
    (108,692
    )
    
    
    
    
    (187,274
    )
    
    
    
    
    (130,046
    )Other
    
    
    
    (35,867
    )
    
    
    
    
    (28,837
    )
    
    
    
    
    (155,344
    )$
    
    198,000
    
    
    
    $
    
    (101,000
    )
    
    
    
    $
    
    (86,000
    )13

Taxes provided for the years ended July 31, 2011, 2010 and 2009 differ from amounts which would result from applying the federal statutory tax rate to pre-tax income, as follows:
2011
    
    2010
    
    2009Income before income taxes
    
    
    $
    
    1,002,302
    
    
    
    $
    
    741,207
    
    
    
    $
    
    1,541,311Dividends received deduction
    
    
    
    (8,412
    )
    
    
    
    
    (14,214
    )
    
    
    
    
    (48,983
    )Othernet
    
    
    
    9,792
    
    
    
    
    5,546
    
    
    
    
    (4,800
    )Adjusted pre-tax income
    
    
    $
    
    1,003,682
    
    
    
    $
    
    732,539
    
    
    
    $
    
    1,487,528Statutory rate
    
    
    
    34%
    
    
    
    
    34%
    
    
    
    
    34%Income tax provision at statutory rate
    
    
    $
    
    336,598
    
    
    
    $
    
    246,300
    
    
    
    $
    
    506,000State and City income taxes, net of federal income tax benefit
    
    
    
    135,402
    
    
    
    
    62,700
    
    
    
    
    222,000Income tax provision
    
    
    $
    
    472,000
    
    
    
    $
    
    309,000
    
    
    
    $
    
    728,000The Company evaluates the effect of uncertain tax positions in accordance with the provisions of GAAP. The Company records interest and penalties relating to its tax returns and provisions as interest expense and administrative and general expenses, respectively.
The Companys tax returns through the year ended July 31, 2006 have been audited by the various taxing authorities. Generally tax returns filed are subject to audit for three years by the appropriate taxing jurisdictions.
6. Leases:
The Companys real estate operations encompass both owned and leased properties. The current leases on leased property, most of which have options to extend the terms, range from 2 year to 20 years. Certain of the leases provide for additional rentals under certain circumstances and obligate the
  Company for payments of real estate taxes and other expenses.
Rental expense for leased real property for each of the three fiscal years in the period ended July 31, 2011 was exceeded by sublease rental income, as follows:
2011
    
    2010
    
    2009Minimum rental expense
    
    
    $
    
    1,709,197
    
    
    
    $
    
    2,108,028
    
    
    
    $
    
    2,000,787Contingent rental expense
    
    
    
    726,340
    
    
    
    
    1,594,141
    
    
    
    
    1,766,3612,435,537
    
    
    
    
    3,702,169
    
    
    
    
    3,767,148Sublease rental income
    
    
    
    5,807,901
    
    
    
    
    7,405,626
    
    
    
    
    7,807,957Excess of sublease income over expense
    
    
    $
    
    3,372,364
    
    
    
    $
    
    3,703,457
    
    
    
    $
    
    4,040,809Rent expense related to an affiliate principally owned by certain directors of the Company totaled $825,000 for fiscal years ended July 31, 2011, 2010 and 2009. The rent expense is derived from two leases which expire July 31, 2027 and April 30, 2031, respectively. Rent expense is recognized on a
  straight-line basis over the lives of the leases.
Future minimum non-cancelable rental commitments for operating leases with initial or remaining terms of one year or more are payable as follows:
FiscalYear
    
    OperatingLeases2012
    
    
    $
    
    1,729,1162013
    
    
    
    1,729,1162014
    
    
    
    1,717,7552015
    
    
    
    1,711,5042016
    
    
    
    1,711,504After 2016
    
    
    
    21,006,723Total required*
    
    
    $
    
    29,605,71814

*
    
    
    
    Minimum payments have not been reduced by minimum sublease rentals of $38,351,149 under operating leases due in the future under non-cancelable leases.7. Rental Income:
Rental income for each of the fiscal years 2011, 2010 and 2009 is as follows:
July 31,2011
    
    2010
    
    2009Minimum rentalsCompany owned property
    
    
    $
    
    8,564,516
    
    
    
    $
    
    8,071,157
    
    
    
    $
    
    7,672,673Leased property
    
    
    
    5,483,174
    
    
    
    
    6,769,132
    
    
    
    
    7,043,38414,047,690
    
    
    
    
    14,840,289
    
    
    
    
    14,716,057Contingent rentalsCompany owned property
    
    
    
    483,948
    
    
    
    
    485,350
    
    
    
    
    622,852Leased property
    
    
    
    324,727
    
    
    
    
    636,494
    
    
    
    
    764,573808,675
    
    
    
    
    1,121,844
    
    
    
    
    1,387,425Total
    
    
    $
    
    14,856,365
    
    
    
    $
    
    15,962,133
    
    
    
    $
    
    16,103,482Rental income for each of the fiscal years 2011, 2010 and 2009 is as follows:
2011
    
    2010
    
    2009Continuing operations
    
    
    $
    
    14,856,365
    
    
    
    $
    
    14,524,314
    
    
    
    $
    
    13,853,916Discontinued operations
    
    
    
    
    
    
    
    
    1,437,819
    
    
    
    
    2,249,566Total
    
    
    $
    
    14,856,365
    
    
    
    $
    
    15,962,133
    
    
    
    $
    
    16,103,482Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows:
FiscalYear
    
    CompanyOwned Property
    
    LeasedProperty
    
    Total2012
    
    
    $
    
    9,081,824
    
    
    
    $
    
    5,671,797
    
    
    
    $
    
    14,753,6212013
    
    
    
    8,325,106
    
    
    
    
    5,260,338
    
    
    
    
    13,585,4442014
    
    
    
    7,304,053
    
    
    
    
    4,453,867
    
    
    
    
    11,757,9202015
    
    
    
    6,500,880
    
    
    
    
    3,821,701
    
    
    
    
    10,322,5812016
    
    
    
    6,442,941
    
    
    
    
    3,583,386
    
    
    
    
    10,026,327After 2016
    
    
    
    27,431,710
    
    
    
    
    15,560,060
    
    
    
    
    42,991,770Total
    
    
    $
    
    65,086,514
    
    
    
    $
    
    38,351,149
    
    
    
    $
    
    103,437,663Rental income is recognized on a straight-line basis over the lives of the leases.
15

8. Payroll and Other Accrued Liabilities:
Payroll and other accrued liabilities for the fiscal years ended July 31, 2011, and 2010 consist of the following:
2011
    
    2010Payroll
    
    
    $
    
    133,020
    
    
    
    $
    
    126,165Interest
    
    
    
    59,349
    
    
    
    
    64,522Professional fees
    
    
    
    147,741
    
    
    
    
    192,382Rents received in advance
    
    
    
    223,360
    
    
    
    
    179,844Utilities
    
    
    
    10,800
    
    
    
    
    45,500Brokers commissions
    
    
    
    313,140
    
    
    
    
    87,000Construction costs
    
    
    
    160,905
    
    
    Other
    
    
    
    548,480
    
    
    
    
    464,468Total
    
    
    
    1,596,795
    
    
    
    
    1,159,881Less current portion
    
    
    
    1,511,225
    
    
    
    
    1,159,881Long-term portion
    
    
    $
    
    85,570
    
    
    
    $
    
    9. Employees Retirement Plan:
The Company contributes to a union sponsored multi-employer pension plan covering its union employees. The Company contributions to the pension plan for the years ended July 31, 2011, 2010 and 2009 were $27,039, $23,142 and $20,168, respectively. Contributions and costs are determined in
  accordance with the provisions of negotiated labor contracts or terms of the plans. The Company also contributes to union sponsored health benefit plans.
Contingent liability for pension plan
Information as to the Companys portion of accumulated pension plan benefits and plan assets is not reported separately by the union sponsored pension plan. A contingent liability may exist because an employer under the Employee Retirement Income Security Act, upon withdrawal from a multi-
  employer defined benefit plan, is required to continue to pay its proportionate share of the plans unfunded vested benefits, if any. The liability under this provision has not been determined; however, the Company has no intention of withdrawing from the plan. Union annuity and health and welfare benefits
  plans are defined contribution plans and do not have unfunded vested benefits.
The Company sponsors a non-contributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $340,751, $330,789 and $311,539 as contributions to the Plan for fiscal years 2011, 2010 and 2009, respectively.
10. Cash Flow Information:
For purposes of reporting cash flows, the Company considers cash equivalents to consist of short-term highly liquid investments with maturities of three months or less, which are readily convertible into cash.
Supplemental disclosures:
July 31,2011
    
    2010
    
    2009Interest paid, net of capitalized interest of $44,108 (2011) $569 (2010) and $65,745 (2009)
    
    
    $
    
    658,004
    
    
    
    $
    
    723,623
    
    
    
    $
    
    745,668Income taxes paid
    
    
    $
    
    333,380
    
    
    
    $
    
    864,174
    
    
    
    $
    
    601,58716

11. Financial Instruments and Credit Risk Concentrations:
The following disclosure of estimated fair value was determined by the Company using available market information and appropriate valuation methods. Considerable judgment is necessary to develop estimates of fair value. The estimates presented herein are not necessarily indicative of the amounts
  that could be realized upon disposition of the financial instruments.
The Company estimates the fair value of its financial instruments using the following methods and assumptions: (i) quoted market prices, when available, are used to estimate the fair value of investments in marketable debt and equity securities; (ii) discounted cash flow analyses are used to estimate the
  fair value of long-term debt, using the Companys estimate of current interest rates for similar debt; and (iii) carrying amounts in the balance sheet approximate fair value for cash and cash equivalents and tenant security deposits due to their high liquidity.
July 31, 2011CarryingValue
    
    FairValueCash and cash equivalents
    
    
    $
    
    2,656,354
    
    
    
    $
    
    2,656,354Marketable securities
    
    
    $
    
    1,951,556
    
    
    
    $
    
    1,958,554Security deposits payable
    
    
    $
    
    977,939
    
    
    
    $
    
    977,939Mortgages, note and term loan payable
    
    
    $
    
    10,096,526
    
    
    
    $
    
    11,517,059Financial instruments that are potentially subject to concentrations of credit risk consist principally of marketable securities and cash and cash equivalents. Marketable securities and cash and cash equivalents are placed with multiple financial institutions and instruments to minimize risk. No assurance
  can be made that such financial institutions and instruments will minimize all such risk.
Other assets subject to credit risk include receivables and unbilled receivables. The Company derived rental income from forty-eight tenants, of which one tenant accounted for 18.62% and another tenant accounted for 16.58% of rental income during the year ended July 31, 2011. No other tenant
  accounted for more than 10% of rental income during the year ended July 31, 2011. Of the receivables recorded at July 31, 2011, one tenant accounted for 77.53% of the receivables due to a restructuring of the payments due on leases. Of the unbilled receivables, one tenant accounted for 27% of the
  balance at July 31, 2011. No other tenants accounted for either 10% of billed receivables, unbilled receivables, or combined billed and unbilled receivables. Write-offs of uncollectible amounts were minimal for the three years ended July 31, 2011.
The Company has one irrevocable letter of credit totaling $230,000 at July 31, 2011 provided by one tenant and two irrevocable letters of credit totaling $297,500 at July 31, 2010 provided by two tenants as security.
12. Deferred Charges:
Deferred charges for the fiscal years ended July 31, 2011 and 2010 consist of the following:
July 31, 2011
    
    July 31, 2010Gross CarryingAmount
    
    AccumulatedAmortization
    
    Gross CarryingAmount
    
    AccumulatedAmortizationLeasing brokerage commissions
    
    
    $
    
    2,349,667
    
    
    
    $
    
    796,518
    
    
    
    $
    
    2,306,365
    
    
    
    $
    
    1,121,462Professional fees for leasing
    
    
    
    324,183
    
    
    
    
    127,679
    
    
    
    
    332,558
    
    
    
    
    129,257Financing costs
    
    
    
    760,671
    
    
    
    
    629,829
    
    
    
    
    760,671
    
    
    
    
    591,761Other
    
    
    
    34,064
    
    
    
    
    11,354
    
    
    
    
    34,064
    
    
    Total
    
    
    $
    
    3,468,585
    
    
    
    $
    
    1,565,380
    
    
    
    $
    
    3,433,658
    
    
    
    $
    
    1,842,480The aggregate amortization expense for the three years in the period ended July 31, 2011 was $363,148, $383,454 and $413,736, respectively.
The weighted average life of current year additions to deferred charges was 15.77 years.
17

The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows:
FiscalYear2012
    
    
    $
    
    338,5892013
    
    
    $
    
    323,0592014
    
    
    $
    
    257,2982015
    
    
    $
    
    211,9622016
    
    
    $
    
    171,89913. Capitalization:
The Company is capitalized entirely through common stock with identical voting rights and rights to liquidation. Treasury stock is recorded at cost and consists of 162,517 shares at July 31, 2011 and at July 31, 2010.
14. Note Payable:
On December 15, 2004, the Company borrowed $1,000,000 from a former director of the Company, who is also a greater than 10% beneficial owner of the outstanding common stock of the Company. The term of the loan was for a period of three (3) years maturing on December 15, 2007 and was
  extended for an additional three (3) years maturing on December 15, 2010, at an interest rate of 7.50% per annum. The loan is unsecured. The note is prepayable in whole or in part at any time without penalty. The constant quarterly payments of interest were $18,750 through December 15, 2010. The
  Company, on November 11, 2010, further extended the note for an additional three (3) years maturing on December 15, 2013, at an interest rate of 5.00% per annum. The constant quarterly payment of interest is $12,500. The interest paid for the year ended July 31, 2011 was $59,375 and for the years 2010
  and 2009 was $75,000.
15. Contingencies:
There are various lawsuits and claims pending against the Company. It is the opinion of management that the resolution of these matters will not have a material adverse effect on the Companys Consolidated Financial Statements.
The Company is required to remove the foot bridge over Bond Street in Brooklyn, New York by June 2012. The removal of the foot bridge is anticipated to be completed in October 2011 at a cost of $309,423.
If the Company sells, transfers, disposes of or demolishes 25 Elm Place, Brooklyn, New York, then the Company may be liable to create a condominium unit for the loading dock. The necessity of creating the condominium unit and the cost of such condominium unit cannot be determined at this time.
18

J.W. MAYS, INC.
Report of Management

Management is responsible for the preparation and reliability of the financial statements and the other financial information in this Annual Report. Management has established systems of internal control over financial reporting designed to provide reasonable assurance that the financial records used for
  preparing financial statements are reliable and reflect the transactions of the Company and that established policies and procedures are carefully followed. The Company reviews, modifies and improves its system of internal controls in response to changes in operations.
The Board of Directors, acting through the Audit Committee, which is comprised solely of independent directors who are not employees of the Company, oversees the financial reporting process. The financial statements have been prepared in accordance with accounting standards generally accepted
  in the United States of America and include amounts based on judgments and estimates made by management. Actual results could differ from estimated amounts.
To ensure complete independence, DArcangelo & Co., LLP, the independent registered public accounting firm, has full and free access to meet with the Audit Committee, without management representatives present, to discuss results of the audit, the adequacy of internal controls and the quality of
  financial reporting.
Report of Independent Registered Public Accounting Firm

To the Board of Directors and ShareholdersJ.W. Mays, Inc. and Subsidiaries
We have audited the accompanying consolidated balance sheets of J.W. Mays, Inc. and subsidiaries as of July 31, 2011 and 2010, and the related consolidated statements of income and retained earnings, comprehensive income, and cash flows for each of the years in the three year period ended July
  31, 2011. J.W. Mays, Inc. and subsidiaries management is responsible for these consolidated financial statements. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material
  misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not
  for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements,
  assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of J.W. Mays, Inc. and subsidiaries as of July 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the three year period ended July
  31, 2011, in conformity with accounting principles generally accepted in the United States of America.
DARCANGELO & CO., LLPRye Brook, New YorkOctober 6, 2011
19

J.W. MAYS, INC.
Five Year Summary of Consolidated Operations(dollars in thousands except per share data)
Years Ended July 31,2011
    
    2010
    
    2009
    
    2008
    
    2007RevenuesRental income
    
    
    $
    
    14,857
    
    
    
    $
    
    14,525
    
    
    
    $
    
    13,853
    
    
    
    $
    
    12,295
    
    
    
    $
    
    11,364Recovery of real estate taxes
    
    
    
    
    
    
    
    
    243
    
    
    
    
    547
    
    
    
    
    91
    
    
    
    
    39Gain (loss) on disposition of property and equipment
    
    
    
    (8
    )
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    
    
    (17
    )
    
    
    
    
    4,309Total revenues
    
    
    
    14,849
    
    
    
    
    14,768
    
    
    
    
    14,395
    
    
    
    
    12,369
    
    
    
    
    15,712ExpensesReal estate operating expenses
    
    
    
    7,837
    
    
    
    
    7,584
    
    
    
    
    7,281
    
    
    
    
    7,088
    
    
    
    
    6,785Administrative and general expenses
    
    
    
    3,575
    
    
    
    
    3,828
    
    
    
    
    3,471
    
    
    
    
    3,252
    
    
    
    
    3,255Depreciation and amortization
    
    
    
    1,557
    
    
    
    
    1,563
    
    
    
    
    1,497
    
    
    
    
    1,477
    
    
    
    
    1,451Total expenses
    
    
    
    12,969
    
    
    
    
    12,975
    
    
    
    
    12,249
    
    
    
    
    11,817
    
    
    
    
    11,491Income from continuing operations before investment income (loss), interest expense, and income taxes
    
    
    
    1,880
    
    
    
    
    1,793
    
    
    
    
    2,146
    
    
    
    
    552
    
    
    
    
    4,221Investment income (loss) and interest expense:Investment income (loss)
    
    
    
    103
    
    
    
    
    72
    
    
    
    
    (78
    )
    
    
    
    
    213
    
    
    
    
    84Interest expense
    
    
    
    (653
    )
    
    
    
    
    (724
    )
    
    
    
    
    (763
    )
    
    
    
    
    (884
    )
    
    
    
    
    (997
    )(550
    )
    
    
    
    
    (652
    )
    
    
    
    
    (841
    )
    
    
    
    
    (671
    )
    
    
    
    
    (913
    )Income (loss) from continuing operations before income taxes
    
    
    
    1,330
    
    
    
    
    1,141
    
    
    
    
    1,305
    
    
    
    
    (119
    )
    
    
    
    
    3,308Income taxes provided
    
    
    
    572
    
    
    
    
    480
    
    
    
    
    640
    
    
    
    
    55
    
    
    
    
    1,528Net income (loss) from continuing operations
    
    
    
    758
    
    
    
    
    661
    
    
    
    
    665
    
    
    
    
    (174
    )
    
    
    
    
    1,780Discontinued operationsNet income (loss) from discontinued operationsnet of taxes
    
    
    
    (228
    )
    
    
    
    
    (229
    )
    
    
    
    
    91
    
    
    
    
    98
    
    
    
    
    276Net Income (loss)
    
    
    $
    
    530
    
    
    
    $
    
    432
    
    
    
    $
    
    756
    
    
    
    $
    
    (76
    )
    
    
    
    $
    
    2,056Income per common shareIncome (loss) per common share from continuing operations
    
    
    $
    
    .37
    
    
    
    $
    
    .33
    
    
    
    $
    
    .33
    
    
    
    $
    
    (.09
    )
    
    
    
    $
    
    .88Income (loss) per common share from discontinued operations
    
    
    
    (.11
    )
    
    
    
    
    (.12
    )
    
    
    
    
    .05
    
    
    
    
    .05
    
    
    
    
    .14Net income (loss) per common share
    
    
    $
    
    .26
    
    
    
    $
    
    .21
    
    
    
    $
    
    .38
    
    
    
    $
    
    (.04
    )
    
    
    
    $
    
    1.02Dividends per share
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    
    
    
    
    $
    
    Average common shares outstanding
    
    
    
    2,015,780
    
    
    
    
    2,015,780
    
    
    
    
    2,015,780
    
    
    
    
    2,015,780
    
    
    
    
    2,015,78020

J.W. MAYS, INC.Managements Discussion and Analysis of Financial Condition andResults of Operations

Managements Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our financial statements and related notes thereto contained in this report. In this discussion, the words Company, we, our and us refer to J.W. Mays, Inc. and subsidiaries.
Forward Looking Statements
The following can be interpreted as including forward-looking statements under the Private Securities Litigation Reform Act of 1995. The words outlook, intend, plans, efforts, anticipates, believes, expects or words of similar import typically identify such statements. Various important factors
  that could cause actual results to differ materially from those expressed in the forward-looking statements are identified under the heading Cautionary Statement Regarding Forward-Looking Statements below. Our actual results may vary significantly from the results contemplated by these forward-looking
  statements based on a number of factors including, but not limited to, availability of labor, marketing success, competitive conditions and the change in economic conditions of the various markets we serve.
Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. We
  believe the critical accounting policies in Note 1 affect our more significant judgments and estimates used in the preparation of our financial statements. Actual results may differ from these estimates under different assumptions and conditions. (See Note 1 on pages 8 through 9 to the Consolidated Financial
  Statements).
Fiscal 2011 Compared to Fiscal 2010
Net income for the year ended July 31, 2011 amounted to $530,356, or $.26 per share, compared to net income for the year ended July 31, 2010 of $432,208, or $.21 per share.
Net income from continuing operations for the year ended July 31, 2011 amounted to $758,135, or $.37 per share, compared to net income from continuing operations for the year ended July 31, 2010 of $660,938, or $.33 per share.
Net loss from discontinued operations for the year ended July 31, 2011 amounted to ($227,779), or ($.11) per share, compared to a net loss from discontinued operations for the year ended July 31, 2010 of ($228,730), or ($.12) per share. The loss in the 2011 year was due to the cost of removing the foot
  bridge over Bond Street in Brooklyn, New York.
Revenues from continuing operations in the current year increased to $14,848,512 from $14,767,737 in the comparable 2010 year. The increase in revenues was due to increased rental income from existing tenants, offset by the recovery of real estate taxes in fiscal 2010 (see below).
The recovery of real estate taxes in the 2010 year in the amount of $243,423, net of legal expenses, represents prior years real estate taxes from two of the Companys properties. The comparable 2011 year did not have a recovery of real estate taxes.
Real estate operating expenses from continuing operations in the current year increased to $7,837,227 from $7,583,514 in the comparable 2010 year primarily due to increases in real estate taxes and payroll costs, partially offset by decreases in maintenance, insurance, utility costs and rental expense.
Administrative and general expenses from continuing operations in the current year decreased to $3,574,616 from $3,828,033 in the comparable 2010 year primarily due to decreases in legal and professional and insurance costs, partially offset by increases in payroll costs, medical costs and data
  processing costs.
Depreciation and amortization expense from continuing operations in the current year decreased to $1,556,788 from $1,563,225 in the comparable 2010 year.
21

Interest expense and other investment expenses in the current year exceeded investment income by $549,746 and by $652,027 in the comparable 2010 year. The decrease in the excess of interest expense over investment income was primarily due to scheduled repayments of debt.
Fiscal 2010 Compared to Fiscal 2009
Net income for the year ended July 31, 2010 amounted to $432,208, or $.21 per share, compared to net income for the year ended July 31, 2009 of $756,086, or $.38 per share.
Net income from continuing operations for the year ended July 31, 2010 amounted to $660,938, or $.33 per share, compared to net income from continuing operations for the year ended July 31, 2009 of $664,681, or $.33 per share.
Net loss from discontinued operations for the year ended July 31, 2010 amounted to ($228,730), or ($.12) per share, compared to net income from discontinued operations for the year ended July 31, 2009 of $91,405, or $.05 per share. The loss in the 2010 year was due to the payment of $1,000,000 for
  the settlement of the litigation and $141,414 for the New York State and New York City transfer taxes on the properties transferred.
Revenues from continuing operations in 2010 increased to $14,767,737 from $14,395,150 in the comparable 2009 year. The increase in revenues was due to the Company leasing to one additional tenant at the Companys Brooklyn, New York, Nine Bond Street property and increased rental income from
  existing tenants, offset by a larger real estate tax refund in the 2009 year (see below).
The recovery of real estate taxes in 2010 in the amount of $243,423, net of legal expenses, represents prior years real estate taxes from two of the Companys properties. The comparable 2009 year had a recovery of real estate taxes in the amount of $546,418 net of legal expenses.
Real estate operating expenses from continuing operations in 2010 increased to $7,583,514 from $7,281,481 in the comparable 2009 year primarily due to increases in rental expense and real estate taxes, partially offset by decreases in maintenance, insurance and utility costs.
Administrative and general expenses from continuing operations in 2010 increased to $3,828,033 from $3,470,670 in the comparable 2009 year primarily due to increases in legal and professional and payroll costs, partially offset by decreases in insurance costs.
Depreciation and amortization expense from continuing operations in 2010 increased to $1,563,225 from $1,497,675 in the comparable 2009 year primarily due to increased depreciation on the Nine Bond Street, Brooklyn, New York property.
Interest expense and other investment expenses in 2010 exceeded investment income by $652,027 and by $840,643 in the comparable 2009 year. The decrease in the excess of interest expense over investment income was due to the principal write-down of $99,900 due to the impairment of the
  Companys investment in Lehman Brothers Holdings Inc. preferred stock and the losses on the sale of marketable securities in the 2009 year and by scheduled repayments of debt, partially offset by additional interest expense on the additional elevator loan.
Liquidity and Capital Resources:
The Company has been operating as a real estate enterprise since the discontinuance of the retail department store segment of its operations on January 3, 1989.
Management considers current working capital and borrowing capabilities adequate to cover the Companys planned operating and capital requirements. The Companys cash and cash equivalents amounted to $2,656,354 at July 31, 2011.
In September 2009, the Company entered into a lease agreement with a drive-in restaurant at the Companys Massapequa premises. The drive-in restaurant intends to construct a new building. The tenants occupancy is subject to it receiving the necessary building permits and licenses to construct the
  building and open for business within a reasonable time period. Rent is anticipated to commence in 2012. This will replace
22

the tenant that vacated the premises in April 2009. The rental income from this lease agreement will more than offset the rental income lost from the previous tenant.
In October 2010, the Company entered into a lease agreement with a tenant for 18,218 square feet for office space at the Companys Nine Bond Street, Brooklyn, New York building. The cost of construction and brokerage commissions to the Company will be approximately $2,100,000. The Company has
  financed these costs through operating funds. Rent is anticipated to commence in early 2012.
In September, 2011, the Company paid the outstanding balance of a loan on the Jamaica, New York property in the amount of $2,090,493 (see Note 4(b) to the Consolidated Financial Statements)
Contractual Obligations:
At July 31, 2011, the Company had certain contractual cash obligations, as set forth in the following tables:
Contractual CashObligations
    
    Payment Due by PeriodTotal
    
    Less than 1Year
    
    1-3Years
    
    4-5Years
    
    After 5YearsMortgages and term loan payable
    
    
    $
    
    9,096,526
    
    
    
    $
    
    3,346,267
    
    
    
    $
    
    328,924
    
    
    
    $
    
    5,421,335
    
    
    $ Note payable
    
    
    
    1,000,000
    
    
    
    
    
    
    1,000,000
    
    
    
    
    Security deposits payable
    
    
    
    977,939
    
    
    
    
    141,704
    
    
    
    
    166,936
    
    
    
    
    381,276
    
    
    
    
    288,023Operating leases
    
    
    
    29,605,718
    
    
    
    
    1,729,116
    
    
    
    
    3,446,871
    
    
    
    
    3,423,008
    
    
    
    
    21,006,723Total contractual cash obligations
    
    
    $
    
    40,680,183
    
    
    
    $
    
    5,217,087
    
    
    
    $
    
    4,942,731
    
    
    
    $
    
    9,225,619
    
    
    
    $
    
    21,294,746Cash Flows
The following table summarizes our cash flow activity for the fiscal years ended July 31, 2011, 2010 and 2009:
2011
    
    2010
    
    2009Net cash provided by operating activities
    
    
    $
    
    2,740,236
    
    
    
    $
    
    1,653,910
    
    
    
    $
    
    2,622,817Net cash (used) by investing activities
    
    
    
    (1,344,518
    )
    
    
    
    
    (546,066
    )
    
    
    
    
    (1,322,905
    )Net cash (used) by financing activities
    
    
    
    (290,994
    )
    
    
    
    
    (209,933
    )
    
    
    
    
    (2,121,583
    )Cash Flows From Operating Activities:
Deferred Charges:The Company had expenditures for brokerage commissions for the year ended July 31, 2011 in the amount of $488,562, relating to two tenants at its Nine Bond Street, Brooklyn, New York property. The Company also incurred $169,740 for brokerage commissions on renewals of
  existing tenant leases.
Payroll and Other Accrued Liabilities:The Company incurred $488,562 for brokerage commissions in order to lease space at the Companys property at Nine Bond Street, Brooklyn, New York for the year ended July 31, 2011. The Company also incurred $169,740 for brokerage commissions on renewals
  of existing tenant leases
Cash Flows From Investing Activities:
The Company had expenditures of $1,492,112 for the year ended July 31, 2011, for the renovation of 18,218 square feet for office space for a tenant at the Companys Nine Bond Street, Brooklyn, New York building. The cost of the project is estimated to be $1,600,000 and is anticipated to be completed
  in late 2011.
The Company had expenditures of $309,423 for the year ended July 31, 2011 for the removal of the foot bridge over Bond Street in Brooklyn, New York. The removal of the foot bridge is anticipated to be completed in October 2011. (See Note 3 to the Consolidated Financial Statements).
Cautionary Statement Regarding Forward-Looking Statements:
This section, Managements Discussion and Analysis of Financial Condition and Results of Operations, other sections of the Annual Report on Form 10-K and this Annual Report to Shareholders and other reports and
23

verbal statements made by our representatives from time to time may contain forward-looking statements that are based on our assumptions, expectations and projections about us and the real estate industry. These include statements regarding our expectations about revenues, our liquidity, or expenses
  and our continued growth, among others. Such forward-looking statements by their nature involve a degree of risk and uncertainty. We caution that a variety of factors, including but not limited to the factors described under Item 1A, Risk Factors in our Form 10-K for the fiscal year ended July 31, 2011 and
  the following, could cause business conditions and our results to differ materially from what is contained in forward-looking statements:

    
    
    
    changes in the rate of economic growth in the United States;
    
    
    
    changes in the financial condition of our customers;
    
    
    
    changes in regulatory environment;
    
    
    
    lease cancellations;
    
    
    
    changes in our estimates of costs;
    
    
    
    war and/or terrorist attacks on facilities where services are or may be provided;
    
    
    
    outcomes of pending and future litigation;
    
    
    
    increasing competition by other companies;
    
    
    
    compliance with our loan covenants;
    
    
    
    recoverability of claims against our customers and others by us and claims by third parties against us; and
    
    
    
    changes in estimates used in our critical accounting policies.Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are
  difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by us.
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures we make in proxy statements, quarterly reports on Form 10-Q, Annual Reports on Form 10-K
  and current reports on Form 8-K filed with the Securities and Exchange Commission.
Controls and Procedures
The Companys management reviewed the Companys internal controls and procedures and the effectiveness of these controls. As of July 31, 2011, the Company carried out an evaluation, under the supervision and with the participation of the Companys management, including its Chief Executive
  Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Companys disclosure controls and procedures pursuant to Rules 13a-14(c) and 15d-14(c) of the Securities Exchange Act of 1934. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer
  concluded that the Companys disclosure controls and procedures are effective in timely alerting them to material information relating to the Company required to be included in its periodic SEC filings.
There was no change in the Companys internal controls over financial reporting or in other factors during the Companys last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Companys internal controls over financial reporting. There were no significant deficiencies or
  material weaknesses, and therefore there were no corrective actions taken.
24

Quarterly Financial Information (Unaudited)(dollars in thousands except per share data)

Three Months EndedOct. 31, 2010
    
    Jan. 31, 2011
    
    Apr. 30, 2011
    
    July 31, 2011Revenues
    
    
    $
    
    3,608
    
    
    
    $
    
    3,707
    
    
    
    $
    
    3,794
    
    
    
    $
    
    3,740Revenues less expenses
    
    
    $
    
    324
    
    
    
    $
    
    85
    
    
    
    $
    
    434
    
    
    
    $
    
    487Net income (loss) from continuing operations
    
    
    $
    
    175
    
    
    
    $
    
    (6
    )
    
    
    
    $
    
    214
    
    
    
    $
    
    375(Loss) from discontinued operations(net of tax)
    
    
    
    
    
    
    
    
    (177
    )
    
    
    
    
    (11
    )
    
    
    
    
    (40
    )Net income (loss)
    
    
    $
    
    175
    
    
    
    $
    
    (183
    )
    
    
    
    $
    
    203
    
    
    
    $
    
    335Net income (loss) per common shareFrom continuing operations
    
    
    $
    
    .09
    
    
    
    $
    
    
    
    
    
    $
    
    .11
    
    
    
    $
    
    .17From discontined operations
    
    
    
    
    
    
    
    
    (.09
    )
    
    
    
    
    
    
    
    
    
    (.02
    )Total income (loss) per common share
    
    
    $
    
    .09
    
    
    
    $
    
    (.09
    )
    
    
    
    $
    
    .11
    
    
    
    $
    
    .15Three Months EndedOct. 31, 2009
    
    Jan. 31, 2010
    
    Apr. 30, 2010
    
    July 31, 2010Revenues
    
    
    $
    
    3,753
    
    
    
    $
    
    3,625
    
    
    
    
    $
    
    3,764
    
    
    
    $
    
    3,626Revenues less expenses
    
    
    $
    
    505
    
    
    
    $
    
    158
    
    
    
    $
    
    384
    
    
    
    $
    
    94Net income from continuing operations
    
    
    $
    
    329
    
    
    
    $
    
    111
    
    
    
    $
    
    61
    
    
    
    $
    
    160Income (loss) from discontinued operations(net of tax)
    
    
    
    (30
    )
    
    
    
    
    8
    
    
    
    
    (15
    )
    
    
    
    
    (192
    )Net income (loss)
    
    
    $
    
    299
    
    
    
    $
    
    119
    
    
    
    $
    
    46
    
    
    
    $
    
    (32
    )Net income (loss) per common shareFrom continuing operations
    
    
    $
    
    .16
    
    
    
    $
    
    .06
    
    
    
    $
    
    .03
    
    
    
    $
    
    .08From discontined operations
    
    
    
    (.01
    )
    
    
    
    
    
    
    
    
    
    (.01
    )
    
    
    
    
    (.10
    )Total income (loss) per common share
    
    
    $
    
    .15
    
    
    
    $
    
    .06
    
    
    
    $
    
    .02
    
    
    
    $
    
    (.02
    )Income per share is computed independently for each of the quarters presented on the basis described in Note 1 to the Consolidated Financial Statements.
25

Common Stock and Dividend Information
Effective November 8, 1999, the Companys common stock commenced trading on The Nasdaq Capital Market tier of The Nasdaq Stock Market under the Symbol: Mays. Such shares were previously traded on The Nasdaq National Market. Effective August 1, 2006, NASDAQ became operational as an
  exchange in NASDAQ-Listed Securities. It is now known as The NASDAQ Stock Market LLC.
The following is the sales price range per share of J.W. Mays, Inc. common stock during the fiscal years ended July 31, 2011 and 2010:
Three Months Ended
    
    Sales PriceHigh
    
    LowOctober 31, 2010
    
    
    $
    
    16.89
    
    
    
    $
    
    12.60January 31, 2011
    
    
    
    19.91
    
    
    
    
    11.73April 30, 2011
    
    
    
    20.00
    
    
    
    
    17.25July 31, 2011
    
    
    
    20.05
    
    
    
    
    16.50October 31, 2009
    
    
    $
    
    15.91
    
    
    
    $
    
    12.64January 31, 2010
    
    
    
    21.28
    
    
    
    
    12.50April 30, 2010
    
    
    
    23.55
    
    
    
    
    13.12July 31, 2010
    
    
    
    21.92
    
    
    
    
    13.00The quotations were obtained for the respective periods from the National Association of Securities Dealers, Inc. There were no dividends declared in either of the two fiscal years.
On September 9, 2011, the Company had approximately 1,350 shareholders of record.
26

J.W. MAYS, INC.

Officers
Lloyd J. Shulman
    
    Chairman of the Board, Chief Executive Officer and President and Chief Operating OfficerMark S. Greenblatt
    
    Vice President and TreasurerWard N. Lyke, Jr.
    
    Vice President and Assistant TreasurerGeorge Silva
    
    Vice PresidentOperationsSalvatore Cappuzzo
    
    SecretaryBoard of DirectorsMark S. Greenblatt3,5
    
    Vice President and Treasurer, J.W. Mays, Inc.Dean L. Ryder1,2,3,4,6
    
    President, Putnam County National BankJack Schwartz1,2,3,4,6
    
    Private ConsultantLloyd J. Shulman1,3
    
    Chairman of the Board, Chief Executive Officer and President and Chief Operating Officer, J.W. Mays, Inc.Lewis D. Siegel2,3,4,6
    
    Senior Vice PresidentInvestments, Wells Fargo Advisers, LLC.Committee Assignments Key:1Member of Executive Committee2Member of Audit Committee3Member of Investment Advisory Committee4Member of Executive Compensation Committee5
Member of Disclosure Committee (Mr. Lyke is also a member)6Member of Nominating Committee
Form 10-K Annual Report
Copies of the Companys Form 10-K Annual Reportto the Securities and Exchange Commissionfor the fiscal year ended July 31, 2011will be furnished without charge toshareholders upon written requestto: Secretary, J.W. Mays, Inc.9 Bond Street, Brooklyn, New York 11201-5805.
Copies of the Notice of meeting, Proxy Statement,Proxy Card and Annual Report to Shareholders are available at:http://www.amstock.com/proxyservices/viewmaterial.asp?CoNumber=03443
27