AMREP Corporation (AXR) reported a significant decline in net income for the second quarter of fiscal 2026, totaling $1.2 million, or $0.22 per diluted share, a decrease of 70.3% from $4 million, or $0.75 per diluted share, in the same quarter last year. Revenue also fell 21.1% to $9.4 million from $11.9 million. Over the past month, AMREP shares have decreased by 3.7%, while the S&P 500 increased by 2.6% during the same period.
For the first half of fiscal 2026, AMREP’s net income was $5.9 million, or $1.09 per diluted share, down 27.3% from $8.1 million, or $1.51 per diluted share, year-over-year, with revenues declining 12.1% to $27.3 million. Land sale revenues plummeted 85.9% this quarter and 45.3% year-to-date, due to fewer land transactions, while home sale revenues increased by 44.8% for the quarter and 20.7% for the half-year, reflecting higher sales volume.
Management noted ongoing challenges such as municipal delays and high mortgage rates, which are impacting housing demand. They have responded by offering sales incentives and adjusting home prices. Despite improved gross margins from land sales and home sales, operating income fell to $1.1 million, down 64.4% compared to a year ago, driven by lower land activity and higher costs.
