AMREP Corporation Reports 66% Revenue Decline and Sharp Drop in Net Income for Quarter Ended July 31, 2026

AMREP Corporation reported a significant decline in financial performance for the three months ended July 31, 2026, with total revenues of $6.1 million, a decrease of 66% from $17.9 million in the same period last year. The company's net income also fell sharply to $276,000, or $0.05 per diluted share, compared to $4.7 million, or $0.87 per diluted share, in the prior year. The decline in revenue was primarily attributed to a substantial drop in land sale revenues, which plummeted by 98% to $173,000, and home sale revenues, which decreased by 49% to $4.9 million. The company cited reduced activity in land development and home sales as key factors behind these declines.

In terms of operational metrics, AMREP's home sales volume decreased from 22 homes sold in the previous year to just 12 in the latest quarter. The average selling price of homes also saw a slight decline, dropping from $434,000 to $407,000. The company had 83 homes in production as of July 31, 2026, with 23 under contract, representing an expected revenue of approximately $12.5 million upon closure. This is a slight increase in homes in production compared to 62 homes the previous year, indicating a strategic focus on maintaining production levels despite market challenges.

The company's general and administrative expenses rose by 30% to $2.4 million, driven by increased costs in land development, homebuilding, and corporate operations. Notably, the company incurred costs related to the termination of agreements with TV Investments, LLC, which contributed to the rise in expenses. Additionally, AMREP's cash and cash equivalents decreased to $48.7 million from $52.3 million at the end of April 2026, reflecting a cash outflow of $3.6 million during the quarter.

Looking ahead, AMREP Corporation anticipates continued challenges in the market, particularly in land sales, as it has reduced the number and scope of active land development projects. The company plans to focus on its homebuilding segment, which it believes will provide more stable revenue streams amid current market headwinds. The management has indicated that it expects to navigate these challenges by strategically managing its inventory and production levels while monitoring market conditions closely.