AMREP Corporation Reports Decrease in Revenue but Increase in Net Income for Fiscal Year Ending April 30, 2025

AMREP Corporation reported its financial results for the fiscal year ending April 30, 2025, revealing a total revenue of $49.7 million, a decrease from $51.4 million in the previous year. The decline was primarily driven by a drop in land sale revenues, which fell to $25.6 million from $26.8 million in 2024. This decrease was attributed to a reduction in revenues from undeveloped land sales, partially offset by an increase in developed land sales, which rose to $21.9 million from $18.5 million. Home sale revenues also increased significantly, reaching $21.2 million compared to $17.2 million in the prior year, reflecting a rise in the number of homes sold, which increased to 50 from 36, despite a decrease in average selling prices.

The company's cost of revenues decreased to $30.3 million from $36.9 million, leading to an operating income of $12.1 million, up from $7.6 million in 2024. The gross margin for land sales improved to 52% from 36%, while home sale gross margins decreased to 21% from 25%, influenced by rising building material costs and increased sales incentives. Net income for the year was reported at $12.7 million, or $2.39 per share, compared to $6.7 million, or $1.26 per share, in the previous year.

Operationally, AMREP Corporation had 88 homes in production as of April 30, 2025, with 28 homes under contract, representing expected revenues of approximately $12.8 million. This compares to 64 homes in production and 20 under contract in the previous year. The company also reported an increase in landscaping revenues to $2.1 million from $1.2 million, reflecting its ongoing services to homebuilders. The total cash and cash equivalents increased to $39.9 million from $30.2 million, bolstered by cash flows from operations.

Strategically, AMREP Corporation has focused on expanding its homebuilding operations and enhancing its information technology capabilities. The company has also terminated its defined benefit pension plan, transferring residual assets to its 401(k) plan, which is expected to streamline its retirement benefits. Looking ahead, AMREP anticipates continued demand for its land and homebuilding services, although it acknowledges potential challenges from inflation and market conditions that could impact future sales and profitability. The company remains committed to evaluating opportunities for land acquisition and development to support its growth objectives.