AMREP Corporation reported a decline in financial performance for the second quarter of fiscal year 2026, with net income of $1.2 million, or $0.22 per diluted share, compared to $4.0 million, or $0.75 per diluted share, in the same period last year. For the six months ending October 31, 2025, the company recorded net income of $5.9 million, down from $8.1 million in the prior year. Total revenues for the quarter were $9.4 million, a decrease of 21% from $11.9 million in the previous year, while revenues for the six-month period fell 12% to $27.3 million from $31.0 million.
The decline in revenue was primarily attributed to a significant drop in land sale revenues, which decreased by 86% to $825,000 for the quarter and 45% to $8.3 million for the six months. This was offset somewhat by a 45% increase in home sale revenues for the quarter, totaling $7.7 million, and a 21% increase for the six months, reaching $17.3 million. The company noted that delays in municipal entitlements and construction approvals, along with rising costs in housing and inflationary pressures, have negatively impacted demand and sales.
Operationally, AMREP's real estate inventory increased to $68.6 million as of October 31, 2025, up from $66.8 million in April 2025. The company reported a total of 59 homes in production, with 16 under contract, representing $7.4 million in expected revenues. The company has also opportunistically leased completed homes to mitigate demand challenges. The total assets of AMREP rose to $140.1 million, compared to $133.8 million at the end of the previous fiscal period, reflecting a strategic focus on maintaining liquidity amid market uncertainties.
Looking ahead, AMREP anticipates continued challenges in the housing market due to affordability issues and rising interest rates, which may affect future sales. The company has adjusted its strategy by providing sales incentives, reducing home sizes, and slowing the pace of new projects. Management indicated that while they are taking steps to navigate these challenges, the overall economic environment remains uncertain, and future performance may be impacted by various macroeconomic factors.
About AMREP CORP.
AMREP Corporation is a real estate development and homebuilding company based in New Mexico, primarily focused on land development and residential construction. With approximately 16,600 acres owned, it targets national and local homebuilders. The company is addressing market challenges by adapting its development strategies and expanding its homebuilding operations. AMREP aims to leverage its land assets to meet growing housing demands in a competitive market.
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