AMREP CORP. - Quarter Report: 2025 January (Form 10-Q)

AMREP CORP. - Quarter Report: 2025 January (Form 10-Q)

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AMREP CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share amounts)


	January 31,		April 30,
	2025		2024
	(Unaudited)
ASSETS
Cash and cash equivalents	$		$
Restricted cash
Real estate inventory
Investment assets, net
Other assets
Income taxes receivable, net
Deferred income taxes, net
TOTAL ASSETS	$		$

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable and accrued expenses	$		$
Notes payable
TOTAL LIABILITIES

Commitments and Contingencies (Note 11)

SHAREHOLDERS’ EQUITY:
Common stock, $ par value; shares authorized – ; shares issued – at January 31, 2025 and at April 30, 2024
Capital contributed in excess of par value
Retained earnings
Accumulated other comprehensive income, net		—
TOTAL SHAREHOLDERS’ EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$		$

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these unaudited condensed consolidated financial statements.

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AMREP CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three and Nine Months Ended January 31, 2025 and 2024

(Amounts in thousands, except per share amounts)


	Three Months ended January 31,			Nine Months ended January 31,
	2025	2024		2025	2024
REVENUES:
Land sale revenues	$	$		$	$
Home sale revenues
Other revenues
Total revenues

COSTS AND EXPENSES:
Land sale cost of revenues, net
Home sale cost of revenues
Other cost of revenues
General and administrative expenses
Total costs and expenses
Operating income			()

Interest income, net
Income before income taxes

Provision for income taxes
Net income	$	$		$	$

Earnings per share – basic	$	$		$	$
Earnings per share – diluted	$	$		$	$
Weighted average number of common shares outstanding – basic
Weighted average number of common shares outstanding – diluted

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these unaudited condensed consolidated financial statements.

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AMREP CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three and Nine Months Ended January 31, 2025 and 2024

(Amounts in thousands)


	Three Months ended				Nine Months ended
	January 31,				January 31,
	2025		2024		2025		2024
Net income	$		$		$		$
Other comprehensive income, net of tax:
Reclassification of the balance of accumulated other comprehensive income (loss) to a benefit for income taxes		—		—		()		—

Decrease in pension liability		—				—
Income tax effect		—		—		—		—
Decrease in pension liability, net of tax		—				—
Other comprehensive income		—				()
Total comprehensive income	$		$		$		$

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these unaudited condensed consolidated financial statements.

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AMREP CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

Three and Nine Months Ended January 31, 2025 and 2024

(Amounts in thousands)

Capital

Accumulated

Contributed

Other

Common Stock

in Excess of

Retained

Comprehensive

Shares

Amount

Par Value

Earnings

Income (Loss)

Total

Balance, November 1, 2023

$

Stock compensation expense

—

Compensation related to issuance of option to purchase common stock

—

Issuance of deferred common share units

—

Net income

—

Other comprehensive income

—

Balance, January 31, 2024

$

Balance, November 1, 2024

$

—

$

Stock compensation expense

—

Compensation related to issuance of option to purchase common stock

—

Issuance of deferred common share units

—

Net income

—

Other comprehensive income

—

Balance, January 31, 2025

$

—

$

Balance, May 1, 2023

$

Issuance of restricted common stock

—

Stock compensation expense

—

Compensation related to issuance of option to purchase common stock

—

Issuance of deferred common share units

—

Net income

—

Other comprehensive income

—

Balance, January 31, 2024

$

Balance, May 1, 2024

$

Issuance of restricted common stock

—

Stock compensation expense

—

Compensation related to issuance of option to purchase common stock

—

Issuance of deferred common share units

—

Net income

—

Other comprehensive income

—

()

Balance, January 31, 2025

$

—

$

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these unaudited condensed consolidated financial statements.

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AMREP CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended January 31, 2025 and 2024

(Amounts in thousands)


	Nine Months Ended January 31,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$		$
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
Non-cash credits and charges:
Stock-based compensation
Deferred income tax provision
Net periodic pension cost		—
Changes in assets and liabilities:
Real estate inventory				()
Investment assets, net		()
Other assets
Accounts payable and accrued expenses		()
Income taxes receivable, net
Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures of property and equipment		()		()
Purchase of short-term investments		—		()
Proceeds from the sale of property and equipment				—
Net cash used in investing activities		()		()

CASH FLOWS FROM FINANCING ACTIVITIES:
Debt payments		()		()
Net cash used in financing activities		()		()

Increase (decrease) in cash, cash equivalents and restricted cash				()
Cash, cash equivalents and restricted cash, beginning of period
Cash, cash equivalents and restricted cash, end of period	$		$

SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes refunded, net	$		$	—

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these unaudited condensed consolidated financial statements.

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AMREP CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Three and Nine Months Ended January 31, 2025 and 2024

business segments: land development and homebuilding. The Company has no foreign sales. Unless the context otherwise indicates, all references to the Company in this quarterly report on Form 10-Q include the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, considered necessary to reflect a fair statement of the results for the interim periods presented. The results of operations for such interim periods are not necessarily indicative of what may occur in future periods. Unless the context otherwise indicates, all references to 2025 and 2024 are to the fiscal years ending April 30, 2025 and 2024.

The unaudited condensed consolidated financial statements herein should be read in conjunction with the Company’s annual report on Form 10-K for the year ended April 30, 2024, which was filed with the SEC on July 23, 2024 (the “2024 Form 10-K”). The significant accounting policies used in preparing these unaudited condensed consolidated financial statements are consistent with the accounting policies described in the 2024 Form 10-K.

Recent Accounting Pronouncements:

●

In November 2023, the Financial Accounting Standards Board issued ASU 2023-07, Segment Reporting, which provides enhanced disclosures about significant segment expenses. ASU 2023-07 will be effective for the Company’s fiscal year ending April 30, 2025. The adoption of ASU 2023-07 by the Company is not expected to have a material effect on its consolidated financial statements.

●

In November 2024, the Financial Accounting Standards Board issued ASU 2024-03, Disaggregation of Income Expenses, which provides for disclosure of certain disaggregated information about expense captions that are presented on the income statement. ASU 2024-03 will be effective for the Company’s fiscal year ending April 30, 2028. The adoption of ASU 2024-03 by the Company is not expected to have a material effect on its consolidated financial statements.

There are no other new accounting standards or updates to be adopted that the Company currently believes might have a significant impact on its unaudited condensed consolidated financial statements.

$

Homebuilding model inventory

Homebuilding construction in process

Total

$

Refer to Note 2 to the consolidated financial statements contained in the 2024 Form 10-K for detail regarding real estate inventory. interest was capitalized in real estate inventory for the three or nine months ended January 31, 2025 or January 31, 2024. Loan costs and real estate taxes capitalized in real estate inventory were $ and $ for the three and nine months ended January 31, 2025 and $ and $ for the three and nine months ended January 31, 2024.

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$

Owned real estate leased or intended to be leased

Less accumulated depreciation

()

Owned real estate leased or intended to be leased, net

Total

$

Refer to Note 3 to the consolidated financial statements contained in the 2024 Form 10-K for detail regarding investment assets. As of January 31, 2025, homes were leased to residential tenants. As of April 30, 2024, homes were leased to residential tenants. Depreciation associated with owned real estate leased or intended to be leased was $ and $ for the three and nine months ended January 31, 2025 and $ and $ for the three and nine months ended January 31, 2024.

$

Miscellaneous assets

Property

Equipment

Less accumulated depreciation of property and equipment

()

Property and equipment, net

Total

$

Prepaid expenses as of January 31, 2025 primarily consist of land development cash collateralized performance guaranties and insurance. Prepaid expenses as of April 30, 2024 primarily consist of land development cash collateralized performance guaranties, insurance and income taxes. Amortized lease cost for right-of-use assets associated with leases of office facilities was $ and $ for the three and nine months ended January 31, 2025 and $ and $ for the three and nine months ended January 31, 2024. Depreciation expense associated with property and equipment was $ and $ for the three and nine months ended January 31, 2025 and $ and $ for the three and nine months ended January 31, 2024.

$

Trade payables

Customer deposits

Corporate operations

Total

$

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$

Equipment Financing

DC

Total

$


	January 31, 2025
	Interest		Mortgaged Property	Scheduled
Loan Identifier	Rate		Book Value	Maturity
Revolving Line of Credit		%	$	August 2025
Equipment Financing		%		June 2028


	Principal Repayments
	Three Months Ended		Nine Months Ended
	January 31,		January 31,
Loan Identifier	2025	2024	2025	2024
Revolving Line of Credit	$	$	$	$
Equipment Financing
Total	$	$	$	$


	Capitalized Interest and Fees
	Three Months Ended		Nine Months Ended
	January 31,		January 31,
Loan Identifier	2025	2024	2025	2024
Revolving Line of Credit	$	$	$	$
Equipment Financing
Total	$	$	$	$

As of January 31, 2025, the Company and its subsidiaries were in compliance with the financial covenants contained in the loan documentation for the then outstanding notes payable. Refer to Note 6 to the consolidated financial statements contained in the 2024 Form 10-K for detail about the above notes payable.

As of January 31, 2025, the Company had (a) one letter of credit outstanding under its Revolving Line of Credit in the aggregate principal amount of $ in favor of a municipality guarantying the completion of improvements in a subdivision being constructed by the Company, (b) loan reserves outstanding under its Revolving Line of Credit in the aggregate principal amount of $ in favor of a municipality guarantying the completion of improvements in a subdivision being constructed by the Company and (c) $ reserved under its Revolving Line of Credit for credit card usage. The amounts under the letter of credit, loan reserves and credit card reserve are not reflected as outstanding principal in notes payable.

2026

2027

2028

2029

Total

$

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$

Landscaping revenues

Miscellaneous other revenues

Total

$

Refer to Note 7 to the consolidated financial statements contained in the 2024 Form 10-K for detail about the categories of other revenues.

Sale of investment assets for the three and nine months ended January 31, 2024 consist of the sale of two buildings leased to commercial tenants.

Miscellaneous other revenues for the three and nine months ended January 31, 2025 primarily consist of extension fees for purchase contracts, management fees for homeowners’ associations and residential rental revenues. Miscellaneous other revenues for the three and nine months ended January 31, 2024 primarily consist of extension fees for purchase contracts, forfeited deposits and residential rental revenues.

Major customers:

●

Substantially all of the land sale revenues were received from customers for each of the three and nine months ended January 31, 2025 and customers and customers for the three and nine months ended January 31, 2024. Other than receivables for immaterial amounts, there were outstanding receivables from these customers as of January 31, 2025 or January 31, 2024.

●

There were customers that each contributed in excess of 10% of the Company’s revenues for the three months ended January 31, 2025. The revenues for such customers for the three months ended January 31, 2025 were as follows: $ and $, with this revenue reported in the Company’s land development business segment. There was customer that contributed in excess of 10% of the Company’s revenues for the three months ended January 31, 2024. The revenue from such customer for the three months ended January 31, 2024 was $, with this revenue reported in the Company’s land development business segment.

●

There were customers that each contributed in excess of 10% of the Company’s revenues for the nine months ended January 31, 2025. The revenues from such customers for the nine months ended January 31, 2025 were as follows: $ and $, with this revenue reported in the Company’s land development business segment. There were customers that each contributed in excess of 10% of the Company’s revenues for the nine months ended January 31, 2024. The revenues from such customers for the nine months ended January 31, 2024 were as follows: $ and $, with this revenue reported in the Company’s land development business segment.

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$

Less:

Public improvement district reimbursements

()

Private infrastructure covenant reimbursements

()

Payments for impact fee credits

()

Land sale cost of revenues, net

$

Refer to Note 8 to the consolidated financial statements contained in the 2024 Form 10-K for detail about land sale cost of revenues, net.

Home sale cost of revenues includes costs for residential homes that were sold.

Other cost of revenues for the three and nine months ended January 31, 2025 consists of the cost of goods sold for landscaping services. Other cost of revenues for the three and nine months ended January 31, 2024 consists of the costs associated with the sale of investment assets and the cost of goods sold for landscaping services.

$

Homebuilding

Corporate

Total

$

and $ for its 401(k) employer contribution during the three and nine months ended January 31, 2025. The Company accrued $ and $ for its Simple IRA employer contribution during the three and nine months ended January 31, 2024. The Company’s Simple IRA plan was terminated in December 2023. During the three and nine months ended January 31, 2025, the Company utilized $ of restricted cash to fund its 401(k) employer contribution for the calendar year ended December 31, 2024.

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Granted during the nine months ended January 31, 2025

Vested during the nine months ended January 31, 2025

()

Forfeited during the nine months ended January 31, 2025

Non-vested as of January 31, 2025

The Company recognized non-cash compensation expense related to the vesting of restricted shares of common stock net of forfeitures of $ and $ for the three and nine months ended January 31, 2025 and $ and $ for the three and nine months ended January 31, 2024. As of January 31, 2025, there was $ of unrecognized compensation expense related to restricted shares of common stock previously issued under the Equity Plan which had not vested, which is expected to be recognized over the remaining vesting term not to exceed .

Refer to Note 11 to the consolidated financial statements contained in the 2024 Form 10-K for detail regarding the option to purchase shares of common stock of the Company under the Equity Plan. As of January 31, 2025, the option had not been exercised, cancelled or forfeited. The Company recognized non-cash compensation expense related to the option of $ and $ for the three and nine months ended January 31, 2025 and $ and $ for the three and nine months ended January 31, 2024. As of January 31, 2025 and January 31, 2024, the option was in-the-money and therefore was included in “weighted average number of common shares outstanding – diluted” when calculating diluted earnings per share.

Director compensation non-cash expense, which is recognized for the annual grant of deferred common share units to non-employee members of the Company’s Board of Directors ratably over each director’s service in office during the calendar year, was $ and $ for the three and nine months ended January 31, 2025 and $ and $ for the three and nine months ended January 31, 2024. As of January 31, 2025, there was $ of accrued compensation expense related to the deferred common share units expected to be issued in December 2025. As of January 31, 2024, there was $ of accrued compensation expense related to the deferred common share units issued in December 2024.

Pension Plan

In connection with the termination of the Company’s defined benefit pension plan, $ of income tax effects that remained in accumulated other comprehensive income (loss) were reclassified to a benefit for income taxes during the nine months ended January 31, 2025. Refer to Note 11 to the consolidated financial statements contained in the 2024 Form 10-K for detail regarding accumulated other comprehensive income (loss).

comprehensive limited warranty and coverage for certain other aspects of the home’s construction and operating systems for periods of up to . The Company’s homebuilding work is performed by subcontractors who must agree to indemnify the Company with regard to their work and provide certificates of insurance demonstrating that they have met the Company’s insurance requirements and have named the Company as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors.

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$

Warranty issued during period

Change in pre-existing reserves

()

Warranty expenditures during period

()

Balance at end of period

$

Security for Performance Obligations

The Company is required from time to time to provide security (such as letters of credit, surety bonds or cash collateral) for performance obligations in support of the Company’s land development and homebuilding obligations to municipalities related to the construction of improvements in subdivisions. Cash collateral on deposit with municipalities is included in other assets within the condensed consolidated balance sheets. In the event any letter of credit or surety bond is drawn, the Company would be obligated to reimburse the issuer of the letter of credit or surety bond. As of January 31, 2025, the Company had (a) one letter of credit outstanding under its Revolving Line of Credit in the aggregate principal amount of $ in favor of a municipality guarantying the completion of improvements in a subdivision being constructed by the Company, (b) loan reserves outstanding under its Revolving Line of Credit in the aggregate principal amount of $ in favor of a municipality guarantying the completion of improvements in a subdivision being constructed by the Company and (c) cash collateral of $ on deposit with a municipality. As of April 30, 2024, the Company had one letter of credit outstanding under its Revolving Line of Credit in the aggregate principal amount of $ in favor of a municipality guarantying the completion of improvements in a subdivision being constructed by the Company and cash collateral of $ on deposit with municipalities.

Litigation

The Company may be subject to various lawsuits and legal claims. Certain of the liabilities resulting from these actions may be covered in whole or in part by insurance. The Company establishes liabilities for litigation and legal claims when such matters are both probable of occurring and any potential loss is reasonably estimable. The Company accrues for such matters based on the facts and circumstances specific to each matter and revises these estimates as the matters evolve. In such cases, there may exist an exposure to loss in excess of any amounts currently accrued. To the extent the liability arising from the ultimate resolution of any lawsuit or legal claim exceeds the

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$

Denominator:

Weighted average number of common shares outstanding – basic

Earnings per share – basic

$

Earnings per share – diluted is calculated by dividing net income by the sum of (1) the weighted-average number of common shares outstanding during the period plus (2) the dilutive effects of unvested shares of restricted common stock, shares issuable upon the exercise of stock options that are in-the-money and other potentially dilutive instruments.

$

Denominator:

Weighted average number of common shares outstanding – basic

Dilutive effect of shares of restricted common stock

Dilutive effect of shares issuable upon the exercise of stock options that are in-the-money

Weighted average number of common shares outstanding – diluted

Earnings per share – diluted

$

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$

Net income (loss)

$

()

$

Capital expenditures

$

Three months ended January 31, 2024 (a)

Revenues

$

Net income (loss)

$

()

$

Capital expenditures

$

Nine months ended January 31, 2025 (a)

Revenues

$

Net income (loss)

$

()

$

Capital expenditures

$

Total assets as of January 31, 2025

$

Nine months ended January 31, 2024 (a)

Revenues

$

Net income (loss)

$

()

$

Capital expenditures

$

Total assets as of January 31, 2024

$

(a)

Revenue information provided for each segment may include amounts classified as other revenues in the accompanying condensed consolidated statements of operations. Revenue information provided for the land development segment includes amounts classified as home sale revenues in the accompanying condensed consolidated statements of operations. Corporate is net of intercompany eliminations.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

AMREP Corporation (the “Company”), through its subsidiaries, is primarily engaged in two business segments: land development and homebuilding. The Company has no foreign sales or activities outside the United States. Unless the context otherwise indicates, all references to the Company in this quarterly report on Form 10-Q include the Company and its subsidiaries. The following provides information that management believes is relevant to an assessment and understanding of the Company’s unaudited condensed consolidated results of operations and financial condition. The information contained in this Item 2 should be read in conjunction with the unaudited condensed consolidated financial statements and related notes thereto included in this report on Form 10-Q and with the Company’s annual report on Form 10-K for the year ended April 30, 2024, which was filed with the Securities and Exchange Commission on July 23, 2024 (the “2024 Form 10-K”). Many of the amounts and percentages presented in this Item 2 have been rounded for convenience of presentation. Unless the context otherwise indicates, all references to 2025 and 2024 are to the fiscal years ending April 30, 2025 and 2024.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s discussion and analysis of financial condition and results of operations is based on the accounting policies used and disclosed in the 2024 consolidated financial statements and accompanying notes that were prepared in accordance with accounting principles generally accepted in the United States of America and included as part of the 2024 Form 10-K. The preparation of the unaudited condensed consolidated financial statements included in this report on Form 10-Q required management to make estimates and assumptions that affected the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual amounts or results could differ from those estimates and assumptions.

The Company’s critical accounting policies, assumptions and estimates are described in Item 7 of Part II of the 2024 Form 10-K. There have been no changes in these critical accounting policies.

Information concerning the Company’s implementation and the impact of recent accounting standards or updates issued by the Financial Accounting Standards Board is included in the notes to the consolidated financial statements contained in the 2024 Form 10-K and in the notes to the unaudited condensed consolidated financial statements included in this report on Form 10-Q. The Company did not adopt any accounting policy in the nine months ended January 31, 2025 that had a material effect on its unaudited condensed consolidated financial statements.

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RESULTS OF OPERATIONS

For the three months ended January 31, 2025, the Company had net income of $717,000, or $0.13 per diluted share, compared to net income of $92,000, or $0.02 per diluted share, for the three months ended January 31, 2024. For the nine months ended January 31, 2025, the Company had net income of $8,823,000, or $1.64 per diluted share, compared to net income of $2,546,000, or $0.48 per diluted share, for the nine months ended January 31, 2024.

During the nine months ended January 31, 2025 and January 31, 2024, the Company experienced material delays in municipal entitlements, infrastructure availability, approvals and inspections and utility response times in both the land development business segment and homebuilding business segment, which caused delays in construction and the realization of revenues and increases in cost of revenues. The rising cost of housing due to increases in average sales prices in recent years and the level of mortgage interest rates, coupled with general inflation in the U.S. economy and other macroeconomic factors, have placed pressure on overall housing affordability, negatively affecting demand and have caused many potential homebuyers to pause and reconsider their housing choices. In addition, any tariffs on goods used as inputs in both the land development business segment and homebuilding business segment may result in further increases in the cost of housing and average sales prices. Given the affordability challenges and the resulting impact on demand, the Company has provided sales incentives on certain homes, reduced the size of lots and homes, opportunistically leased completed homes and slowed the pace of housing starts and land development projects. During 2024 and 2025, the Company reduced the number and scope of its active land development projects and delayed proceeding with certain new land development projects due to market headwinds and uncertainty and an increase in entitlement and infrastructure delays as compared to prior years. This may result in a reduction of revenues from the sale of developed residential land during 2025 and is expected to result in a reduction of revenues from the sale of developed residential land during the fiscal year ending April 30, 2026 as compared to 2024 and 2025.

Revenues. The following presents information on revenues (dollars in thousands):


	Three Months Ended January 31,				Increase
	2025		2024		(decrease)
Land sale revenues	$	2,908	$	4,033	$	(1,125)	(28)	%
Home sale revenues		4,094		2,604		1,490	57	%
Other revenues		518		6,052		(5,534)	(91)	%
Total	$	7,520	$	12,689		(5,169)	(41)	%


	Nine Months Ended January 31,				Increase
	2025		2024		(decrease)
Land sale revenues	$	18,113	$	15,576	$	2,537	16	%
Home sale revenues		18,420		9,527		8,893	93	%
Other revenues		1,983		6,730		(4,747)	(71)	%
Total	$	38,516	$	31,833		6,683	21	%

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●

The change in land sale revenues for the three months ended January 31, 2025 compared to the prior period was primarily due to a decrease in revenues from the sale of developed residential land and a decrease in revenues from the sale of undeveloped land. The change in land sale revenues for the nine months ended January 31, 2025 compared to the prior period was primarily due to an increase in revenues from the sale of developed residential land and undeveloped land offset in part by a decrease in revenues from the sale of commercial developed land. During the nine months ended January 31, 2025, the Company sold 549 acres of contiguous undeveloped land in Sandoval County, New Mexico, representing $2,502,000 of revenue, to one purchaser. The Company’s land sale revenues consist of (dollars in thousands):


	Three Months Ended January 31, 2025					Three Months Ended January 31, 2024
	Acres Sold	Revenues		Revenue Per Acre¹		Acres Sold	Revenues		Revenue Per Acre¹
Developed
Residential	4.1	$	2,855	$	696	4.6	$	3,600	$	783
Commercial	—		—		—	—		—		—
Total Developed	4.1		2,855		696	4.6		3,600		783
Undeveloped	5.7		53		9	43.0		433		10
Total	9.8	$	2,908		297	47.6	$	4,033		85


	Nine Months Ended January 31, 2025					Nine Months Ended January 31, 2024
	Acres Sold	Revenues		Revenue Per Acre¹		Acres Sold	Revenues		Revenue Per Acre¹
Developed
Residential	20.1	$	15,322	$	762	22.5	$	14,524	$	646
Commercial	—		—		—	1.5		549		366
Total Developed	20.1		15,322		762	24.0		15,073		628
Undeveloped	590.8		2,791		5	51.8		503		10
Total	610.9	$	18,113		30	75.8	$	15,576		205

The changes in the revenue per acre of developed residential land, developed commercial land and undeveloped land for the three and nine months ended January 31, 2025 compared to the prior periods were primarily due to the location and mix of land sold.

●

The changes in home sale revenues for the three and nine months ended January 31, 2025 compared to the prior periods were primarily due to an increase in the number of homes sold. The changes in average selling prices for the three and nine months ended January 31, 2025 compared to the prior periods were primarily due to the location, size and mix of homes sold. The Company’s home sale revenues consist of (dollars in thousands):

As of January 31, 2025, the Company had 101 homes in production, including 16 homes under contract, which homes under contract represented $7,204,000 of expected home sale revenues when closed, subject to customer cancellations and change orders. As of January 31, 2024, the Company had 62 homes in production, including 19 homes under contract, which homes under contract represented $8,300,000 of expected home sale revenues when closed, subject to customer cancellations and change orders.

¹ Revenue per acre may not calculate precisely due to the rounding of revenues to the nearest thousand dollars.

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●

Other revenues consist of (in thousands):


	Three Months Ended January 31,				Nine Months Ended January 31,
	2025		2024		2025		2024
Sale of investment assets	$	—	$	5,701	$	—	$	5,701
Landscaping revenues		370		213		1,473		639
Miscellaneous other revenues		148		138		510		390
Total	$	518	$	6,052	$	1,983	$	6,730

Sale of investment assets for the three and nine months ended January 31, 2024 consist of the sale of two buildings leased to commercial tenants.

Miscellaneous other revenues for the three and nine months ended January 31, 2025 primarily consist of extension fees for purchase contracts, management fees for homeowners’ associations and residential rental revenues. Miscellaneous other revenues for the three and nine months ended January 31, 2024 primarily consist of extension fees for purchase contracts, forfeited deposits and residential rental revenues.

Cost of Revenues. The following presents information on cost of revenues (dollars in thousands):


	Three Months Ended January 31,				Increase
	2025		2024		(decrease)
Land sale cost of revenues, net	$	1,860	$	2,647	$	(787)	(30)	%
Home sale cost of revenues		3,173		2,020		1,153	57	%
Other cost of revenues		180		6,269		(6,089)	(97)	%
Total	$	5,213	$	10,936		(5,723)	(52)	%


	Nine Months Ended January 31,				Increase
	2025		2024		(decrease)
Land sale cost of revenues, net	$	9,095	$	10,512	$	(1,417)	(13)	%
Home sale cost of revenues		14,694		6,924		7,700	112	%
Other cost of revenues		828		6,450		(5,622)	(87)	%
Total	$	24,617	$	23,886		731	3	%

●

Land sale cost of revenues, net consists of (in thousands):


	Three Months Ended January 31,
	2025		2024
Land sale cost of revenues	$	2,206	$	3,368
Less:
Public improvement district reimbursements		—		(329)
Private infrastructure covenant reimbursements		(57)		(114)
Payments for impact fee credits		(289)		(278)
Land sale cost of revenues, net	$	1,860	$	2,647


	Nine Months Ended January 31,
	2025		2024
Land sale cost of revenues	$	12,097	$	12,770
Less:
Public improvement district reimbursements		(814)		(575)
Private infrastructure covenant reimbursements		(430)		(388)
Payments for impact fee credits		(1,758)		(1,295)
Land sale cost of revenues, net	$	9,095	$	10,512

Land sale gross margins were 36% and 50% for the three and nine months ended January 31, 2025 compared to 34% and 33% for the three and nine months ended January 31, 2024. The changes in gross margin were primarily due to changes in public

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improvement district reimbursements, private infrastructure covenant reimbursements and payments for impact fee credits and the location, size and mix of property sold (including the sale of 5.7 acres and 590.8 acres for the three and nine months ended January 31, 2025 as compared to 43.0 acres and 51.8 acres for the three and nine months ended January 31, 2024 of undeveloped land with a low associated land sale cost of revenues) and the demand for lots by builders resulting in higher revenue per developed lot.

●

The changes in home sale cost of revenues for the three and nine months ended January 31, 2025 compared to the prior periods were primarily due to the number, location, size and mix of homes sold and increases in the prices of building materials and skilled labor. Home sale gross margins were 23% and 20% for the three and nine months ended January 31, 2025 compared to 22% and 27% for the three and nine months ended January 31, 2024. The changes in gross margin were primarily due to the location, size and mix of homes sold and increases in the prices of building materials and skilled labor.

●

Other cost of revenues for the three and nine months ended January 31, 2025 consists of the cost of goods sold for landscaping services. Other cost of revenues for the three and nine months ended January 31, 2024 consists of the costs associated with the sale of investment assets and the cost of goods sold for landscaping services.

As a result of many factors, including the nature and timing of specific transactions and the type and location of land or homes being sold, revenues, average selling prices and related gross margins from land sales or home sales can vary significantly from period to period and prior results are not necessarily a good indication of what may occur in future periods.

General and Administrative Expenses. The following presents information on general and administrative expenses (dollars in thousands):


	Three Months Ended January 31,				Increase
	2025		2024		(decrease)
Land development	$	989	$	1,172	$	(183)	(16)	%
Homebuilding		467		283		184	65	%
Corporate		419		446		(27)	(6)	%
Total	$	1,875	$	1,901		(26)	(1)	%


	Nine Months Ended January 31,				Increase
	2025		2024		(decrease)
Land development	$	2,884	$	2,836	$	48	2	%
Homebuilding		1,274		887		387	44	%
Corporate		1,173		1,298		(125)	(10)	%
Total	$	5,331	$	5,021		310	6	%

●

The changes in land development general and administrative expenses for the three and nine months ended January 31, 2025 compared to the prior periods were primarily due to an increase in payroll costs for landscaping services and a decrease in property taxes as a result of refunds of previously paid amounts.

●

The changes in homebuilding general and administrative expenses for the three and nine months ended January 31, 2025 compared to the prior periods were primarily due to expansion of the Company’s homebuilding operations and information technology expenses.

●

The changes in corporate general and administrative expenses for the three and nine months ended January 31, 2025 compared to the prior periods were primarily due to a decrease in professional services and pension benefit expenses as a result of the termination of the Company’s pension plan in the prior period and an increase in bank charges.

The Company did not record any non-cash impairment charges on real estate inventory or investment assets in the three and nine months ended January 31, 2025 or January 31, 2024. Due to volatility in market conditions and development costs, the Company may experience future impairment charges.

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Interest Income, net. The Company had interest income, net of $410,000 and $1,267,000 for the three and nine months ended January 31, 2025 and $262,000 and $473,000 for the three and nine months ended January 31, 2024. There were no interest or loan costs capitalized in real estate inventory in the three and nine months ended January 31, 2025 or January 31, 2024.

Income Taxes. The Company had a provision for income taxes of $125,000 and $1,012,000 for the three and nine months ended January 31, 2025. The provision for income taxes for the three and nine months ended January 31, 2025 related to the amount of income before income taxes during each period and, for the nine months ended January 31, 2025, to the reclassification of the balance of accumulated other comprehensive income (loss) to a benefit for income taxes. In connection with the termination of the Company’s defined benefit pension plan, $1,230,000 of income tax effects that remained in accumulated other comprehensive income (loss) were reclassified to a benefit for income taxes during the nine months ended January 31, 2025. Refer to Note 11 to the consolidated financial statements contained in the 2024 Form 10-K for detail regarding accumulated other comprehensive income (loss). The Company had a provision for income taxes of $22,000 and $853,000 for the three and nine months ended January 31, 2024 related to the amount of income before income taxes during each period.

LIQUIDITY AND CAPITAL RESOURCES

As of January 31, 2025 and April 30, 2024, the Company had cash, cash equivalents and restricted cash as follows (in thousands):


	January 31,		April 30,
	2025		2024
Cash	$	8,794	$	10,465
U.S. Government Securities		28,142		19,229
Restricted Cash		455		547
Total	$	37,391	$	30,241

AMREP Corporation is a holding company that conducts substantially all of its operations through subsidiaries. As a holding company, AMREP Corporation is dependent on its available cash and on cash from subsidiaries to pay expenses and fund operations. The Company’s liquidity is affected by many factors, including some that are based on normal operations and some that are related to the real estate industry and the economy generally.

Except as described herein, there have been no material changes to the Company’s liquidity and capital resources as reflected in the Liquidity and Capital Resources section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2024 Form 10-K.

Cash Flow. The following presents information on cash flows (in thousands):


	Nine Months Ended January 31,
	2025		2024
Net cash provided by (used in) operating activities	$	7,273	$	3,381
Net cash provided by (used in) investing activities		(116)		(5,354)
Net cash provided by (used in) financing activities		(7)		(7)
Increase (decrease) in cash and cash equivalents	$	7,150	$	(1,980)

The net cash provided by operating activities for the nine months ended January 31, 2025 was primarily due to cash generated from business operations and a reduction in real estate inventory and other assets offset in part by an increase in investment assets, net and a reduction in accounts payable and accrued expenses. The net cash provided by operating activities for the nine months ended January 31, 2024 was primarily due to cash generated from business operations and a reduction in investment and other assets offset in part by an increase in real estate inventory.

Notes payable decreased from $35,000 as of April 30, 2024 to $29,000 as of January 31, 2025 due to principal debt repayments. Refer to Note 6 to the unaudited condensed consolidated financial statements included in this report on Form 10-Q and Note 6 to the consolidated financial statements contained in the 2024 Form 10-K for detail regarding the Company’s notes payable.

During the three and nine months ended January 31, 2025, the Company utilized $92,000 of restricted cash to fund its 401(k) employer contribution for the calendar year ended December 31, 2024. Refer to Note 10 to the unaudited condensed consolidated financial

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statements included in this report on Form 10-Q and Note 11 to the consolidated financial statements contained in the 2024 Form 10-K for detail regarding the Company’s 401(k) plan.

Asset and Liability Levels. The following presents information on certain assets and liabilities (dollars in thousands):


	January 31,		April 30,		Increase
	2025		2024		(decrease)
Real estate inventory	$	65,102	$	65,983	$	(881)	(1)	%
Investment assets, net		14,498		12,551		1,947	16	%
Other assets		2,801		2,990		(189)	(6)	%
Deferred income taxes, net		9,142		11,038		(1,896)	(17)	%
Accounts payable and accrued expenses		2,933		4,745		(1,812)	(38)	%
Income taxes receivable, net		4		27		(23)	(85)	%

●

Real estate inventory consists of (dollars in thousands):


	January 31,		April 30,		Increase
	2025		2024		(decrease)
Land inventory	$	53,345	$	57,527	$	(4,182)	(7)	%
Homebuilding model inventory		6,519		4,138		2,381	58	%
Homebuilding construction in process		5,238		4,318		920	21	%
Total	$	65,102	$	65,983

From April 30, 2024 to January 31, 2025, the change in land inventory in New Mexico was primarily due to the sale of land offset in part by land development activity, the change in homebuilding model inventory was primarily due to the sale of homes offset in part by the completion of homes not yet sold and the change in homebuilding construction in process was primarily due to an increase in the number of homes that started construction.

●

Investment assets consist of (dollars in thousands):


	January 31,		April 30,		Increase
	2025		2024		(decrease)
Land held for long-term investment	$	8,879	$	9,200	$	(321)	(3)	%
Owned real estate leased or intended to be leased		5,781		3,449		2,332	68	%
Less accumulated depreciation		(162)		(98)		(64)	(65)	%
Owned real estate leased or intended to be leased, net		5,619		3,351		2,268	68	%
Total	$	14,498	$	12,551

During the nine months ended January 31, 2025, the Company sold 585.2 acres of undeveloped property in Sandoval County, New Mexico categorized as land held for long-term investment.

As of January 31, 2025, fifteen homes were leased to residential tenants. As of April 30, 2024, ten homes were leased to residential tenants. Given the impact on demand as a result of affordability challenges, the Company has opportunistically leased completed homes. Depreciation associated with owned real estate leased or intended to be leased was $33,000 and $64,000 for the three and nine months ended January 31, 2025 and $12,000 and $60,000 for the three and nine months ended January 31, 2024.

●

From April 30, 2024 to January 31, 2025:

o

The change in other assets was primarily due to a decrease in prepaid expenses related to the termination of a land development cash collateralized performance guaranty.

o

The change in deferred income taxes, net was primarily due to the income tax effect of the amount of income before income taxes for the nine months ended January 31, 2025.

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o

The change in accounts payable and accrued expenses was primarily due to an increase in accrued property taxes and a decrease in accounts payable, accrued expenses and customer deposits.

o

The change in income taxes receivable, net was primarily due to the payment of taxes and the accrual of state income taxes payable.

Off-Balance Sheet Arrangements. As of January 31, 2025 and January 31, 2024, the Company did not have any off-balance sheet arrangements (as defined in Item 303(a)(4)(ii) of Regulation S-K).

Recent Accounting Pronouncements. Refer to Note 1 to the consolidated financial statements contained in the 2024 Form 10-K and Note 1 to the unaudited condensed consolidated financial statements included in this report on Form 10-Q for a discussion of recently issued accounting pronouncements.

Statement of Forward-Looking Information

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. The Company and its representatives may from time to time make written or oral statements that are “forward-looking”, including statements contained in this report and other filings with the Securities and Exchange Commission, reports to the Company’s shareholders and news releases. All statements that express expectations, estimates, forecasts or projections are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, other written or oral statements, which constitute forward-looking statements, may be made by or on behalf of the Company. Words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “projects”, “forecasts”, “may”, “should”, variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and contingencies that are difficult to predict. All forward-looking statements speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are qualified by the cautionary statements in this section. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in or suggested by such forward-looking statements.

The forward-looking statements contained in this report include, but are not limited to, statements regarding (1) the Company’s ability to finance its future working capital, land development, acquisition of land, homebuilding, commercial projects, general and administrative expenses and capital expenditure needs, (2) the Company’s expected liquidity sources, including the availability of bank financing for projects and the utilization of existing bank financing, (3) estimates of the Company’s exposure to warranty claims and liabilities for litigation and legal claims, estimates of the cost to complete of common land development costs and the estimated relative sales values of individual parcels of land in connection with the allocation of common land development costs, (4) the adequacy of warranty reserves, subcontractor indemnities and third-party insurance to cover the ultimate resolution of any potential liabilities associated with known and anticipated warranty and construction defect related claims and litigation, (5) the conditions resulting in homebuyer affordability challenges, (6) the amount of land sale revenues during 2025 and the fiscal year ending April 30, 2026, (7) the backlog of homes under contract and in production and the dollar amount of expected sale revenues when such homes are closed, (8) the categorization of homes and buildings leased or intended to be leased to third parties, (9) the timing of recognizing unrecognized compensation expense related to shares of common stock issued under the AMREP Corporation 2016 Equity Compensation Plan, (10) the future issuance of deferred stock units to directors of the Company, (11) the dilution to earnings per share that unvested shares of restricted common stock or shares issuable upon the exercise of stock options may cause in the future and (12) the future business conditions that may be experienced by the Company. The Company undertakes no obligation to update or publicly release any revisions to any forward-looking statement to reflect events, circumstances or changes in expectations after the date of such forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Vice President, Finance and Accounting, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. As a result of such evaluation, the Company’s Chief Executive Officer and Vice President, Finance and Accounting have concluded that such disclosure controls and procedures were effective as of January 31, 2025 to provide reasonable assurance that the information required to be disclosed in the reports the Company files or submits under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and (ii) accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Vice President, Finance and Accounting, as appropriate, to allow timely decisions regarding disclosure. The Company believes that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

Changes in Internal Control over Financial Reporting

No change in the Company’s system of internal control over “financial reporting” (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934) occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 5. Other Information

During the three months ended January 31, 2025, no director or officer of the Company or a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement”, as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits


Exhibit Number		Description
31.1		Certification required by Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2		Certification required by Rule 13a-14(a) under the Securities Exchange Act of 1934
32		Certification required pursuant to 18 U.S.C. Section 1350
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase
104		Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: March 7, 2025	AMREP CORPORATION
	(Registrant)

	By:	/s/ Adrienne M. Uleau
		Name: Adrienne M. Uleau
		Title: Vice President, Finance and Accounting
		(Principal Accounting Officer)

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EXHIBIT INDEX


Exhibit Number		Description
31.1		Certification required by Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2		Certification required by Rule 13a-14(a) under the Securities Exchange Act of 1934
32		Certification required pursuant to 18 U.S.C. Section 1350
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase
104		Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit)

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Three Months Ended January 31,

Homes sold

Average selling price