AMREP Corporation Reports Increased Profitability Despite Revenue Decline in Latest Financial Results

AMREP Corporation reported its financial results for the three and nine months ended January 31, 2025, revealing a significant increase in profitability compared to the same period in the previous year. The company achieved a net income of $717,000, or $0.13 per diluted share, for the third quarter, up from $92,000, or $0.02 per diluted share, in the prior year. For the nine-month period, net income rose to $8.8 million, or $1.64 per diluted share, compared to $2.5 million, or $0.48 per diluted share, in the same period last year. Total revenues for the third quarter were $7.5 million, a decrease of 41% from $12.7 million in the prior year, while revenues for the nine months increased by 21% to $38.5 million from $31.8 million.

The company experienced notable changes in its revenue streams, particularly in land and home sales. Land sale revenues for the third quarter decreased to $2.9 million from $4.0 million, while home sale revenues increased significantly to $4.1 million from $2.6 million. For the nine-month period, land sale revenues rose to $18.1 million from $15.6 million, and home sale revenues surged to $18.4 million from $9.5 million. The increase in home sales was attributed to a higher number of homes sold, despite a decrease in average selling prices. Other revenues, however, saw a substantial decline, primarily due to the absence of investment asset sales, dropping to $518,000 from $6.1 million in the previous year.

Operationally, AMREP's total assets increased to $128.9 million as of January 31, 2025, compared to $122.8 million at the end of the previous fiscal year. The company reported a decrease in accounts payable and accrued expenses, which fell to $2.9 million from $4.7 million. The company’s real estate inventory also saw a slight decline, totaling $65.1 million, down from $66.0 million. The number of homes in production increased to 101, with 16 homes under contract, representing expected revenues of $7.2 million upon closure.

The company has faced challenges due to delays in municipal entitlements and rising costs associated with housing, which have pressured overall affordability and demand. In response, AMREP has implemented sales incentives, reduced the size of lots and homes, and slowed the pace of new projects. Looking ahead, the company anticipates a potential reduction in revenues from land sales in the upcoming fiscal year, reflecting ongoing market headwinds and uncertainty. Despite these challenges, AMREP remains focused on leveraging its existing assets and operational capabilities to navigate the evolving market landscape.