AMREP Corporation Reports Significant Financial Growth with $4.04 Million Net Income

AMREP Corporation reported significant financial growth in its latest quarterly results, with net income reaching $4.04 million, or $0.75 per diluted share, for the three months ended October 31, 2024. This marks a substantial increase from the $1.11 million, or $0.21 per diluted share, reported in the same period last year. For the six months ending October 31, 2024, net income was $8.11 million, or $1.51 per diluted share, compared to $2.45 million, or $0.46 per diluted share, for the same period in 2023. Total revenues for the quarter were $11.91 million, up from $8.85 million a year earlier, while revenues for the six-month period increased to $30.99 million from $19.14 million.

The company experienced notable changes in its revenue streams, particularly in land and home sales. Land sale revenues for the three months ended October 31, 2024, were $5.86 million, a 20% increase from $4.88 million in the prior year. Home sale revenues also saw a significant rise, reaching $5.33 million compared to $3.52 million in the same quarter last year. For the six-month period, land sale revenues increased to $15.21 million from $11.54 million, while home sale revenues surged to $14.33 million from $6.92 million. The increase in revenues was attributed to a higher number of homes sold and an uptick in the sale of undeveloped land.

Operationally, AMREP Corporation reported a total of 70 homes in production as of October 31, 2024, including 15 homes under contract, which are expected to generate $6.61 million in future revenues. This is an increase from 41 homes in production, with 16 under contract, in the same period last year. The company also noted a decrease in real estate inventory, which totaled $63.35 million as of October 31, 2024, down from $65.98 million in April 2024. The reduction in inventory was primarily due to land sales and ongoing development activities.

Despite the positive financial results, AMREP Corporation acknowledged challenges in the market, including delays in municipal entitlements and rising costs associated with housing and construction. These factors have led the company to adjust its strategy by providing sales incentives, reducing the size of lots and homes, and slowing the pace of new projects. The company anticipates that these market conditions may result in reduced land sale revenues in the upcoming fiscal years.

Looking ahead, AMREP Corporation remains cautious about the housing market's trajectory, particularly concerning affordability challenges that may impact demand. The company has indicated that it will continue to monitor market conditions closely and adjust its operational strategies accordingly. The management expressed optimism about the potential for future growth, contingent on favorable market developments and the successful execution of its current projects.