AMREP Corporation reported fiscal second‑quarter 2026 results for the quarter ended October 31, 2025, showing net income of $1.20 million, or $0.22 per diluted share. The company’s revenue for the period was $9.398 million, a decline from $11.906 million in the same quarter of fiscal 2025.
The decline in revenue is largely attributable to a sharp drop in land‑sale activity. Land‑sale revenue fell from $5.9 million in Q2 FY2025 to $0.8 million in Q2 FY2026, while home‑sale revenue grew, partially offsetting the loss. Management cited entitlement and infrastructure delays, elevated construction costs, and affordability pressures from higher home prices and mortgage rates as the primary drivers of the reduced land‑sale volume.
For the first six months of fiscal 2026, AMREP generated net income of $5.892 million, or $1.09 per diluted share, compared with $8.106 million, or $1.51 per diluted share, for the first half of fiscal 2025. Total revenue for the six‑month period was $27.250 million, down from $30.997 million in the same period of fiscal 2025. The year‑over‑year decline in revenue reflects the continued weakness in the land‑development segment.
Earnings per share of $0.22 fell short of analyst consensus of $0.44, a miss of $0.22 or 50%. The miss is driven by the steep contraction in land‑sale revenue and the associated margin compression, as the company’s higher‑margin land‑development business underperformed. Management indicated that the company is implementing price reductions, incentives, smaller product offerings, increased leasing of completed homes, and a slower development pace to mitigate the headwinds.
Looking ahead, AMREP expects lower revenues from developed residential land sales in fiscal 2026 compared with fiscal 2025, signaling management’s cautious outlook for the key segment. The company’s strong balance sheet, with ample cash and minimal debt, provides a buffer against the current market pressures, but the guidance underscores the need for continued cost discipline and strategic adjustments.
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