Financial Analysis

(13) COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases an office and office equipment in Pennsylvania and office equipment in New Mexico. The leases are generally non-cancelable operating leases with an initial term of two to five years. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The lease agreements do not contain any residual value guarantees or material restrictive covenants. As of April 30, 2026, right-of-use assets and lease liabilities were $144,000 and $149,000. As of April 30, 2025, right-of-use assets and lease liabilities were $39,000 and $42,000. Total operating lease expense was $64,000 and $58,000 for 2026 and 2025. Remaining operating lease payments for these leases subsequent to April 30, 2026 are $24,000 in fiscal year 2027, $26,000 in fiscal year 2028, $27,000 in fiscal year 2029, $29,000 in fiscal year 2030, $31,000 in fiscal year 2031 and $11,000 in fiscal year 2032. Remaining operating lease payments had imputed interest resulting in a present value of these lease liabilities of $120,000 as of April 30, 2026. For 2026, the weighted average remaining lease term and weighted average discount rate of the Companys operating leases were 5.34 years and 6.77%. For 2025, the weighted average remaining lease term and weighted average discount rate of the Companys operating leases were 1.34 years and 5.50%. The lease contracts for the Company generally do not provide a readily determinable imp …

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(6) NOTES PAYABLE The following tables present information on the Companys notes payable in effect as of April 30, 2026 (dollars in thousands): Principal Amount Available Outstanding for New Borrowings Principal Amount April 30, April 30, Loan Identifier Lender 2026 2026 2025 Revolving Line of Credit BOKF $ 4,438 $ $ Equipment Financing DC 18 26 Total $ 4,438 $ 18 $ 26 April 30, 2026 Interest Mortgaged Property Scheduled Loan Identifier Rate Book Value Maturity Revolving Line of Credit 6.80 % $ 1,721 August 2028 Equipment Financing 2.35 % 18 June 2028 Principal Repayments Capitalized Interest and Fees Year ended April 30, Year ended April 30, Loan Identifier 2026 2025 2026 2025 Revolving Line of Credit $ $ $ $ Equipment Financing 8 9 Total $ 8 $ 9 $ $ As of April 30, 2026, the Company was in compliance with the financial covenants contained in the loan documentation for the then outstanding notes payable. Additional information regarding each of the above notes payable is provided below. Revolving Line of Credit . AMREP Southwest Inc. (ASW), a subsidiary of AMREP Corporation, and BOKF, NA dba Bank of Albuquerque (BOKF) are parties to a loan agreement (as amended). The Loan Agreement is evidenced by a promissory note and is secured by a mortgage, security agreement and fixture filing with respect to property in the Paseo Gateway subdivision located in Rio Rancho. BOKF has agreed to lend up to $6,500,000 to ASW on a revolving line of credit basis for general corporate purposes, …

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Other revenues consist of (in thousands): Year Ended April 30, 2026 2025 Landscaping revenues $ 2,394 $ 2,089 Miscellaneous other revenues 1,163 709 Total $ 3,557 $ 2,798 …

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(10) FAIR VALUE MEASUREMENTS The FASBs accounting guidance defines fair value and establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The FASBs guidance classifies the inputs to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs for the asset or liability are unobservable and reflect the reporting entitys own assumptions about the assumptions that market participants would use in pricing the asset or liability. The fair value measurement level of an asset or liability within the fair value hierarchy is based on the lowest level of any inp …

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(12) INCOME TAXES All income from continuing operations before income taxes was attributable to U.S. domestic operations. The provision (benefit) for income taxes consists of the following (in thousands): Year Ended April 30, 2026 2025 Current: Federal $ 642 $ (994) State and local (66) 642 (1,060) Deferred: Federal 2,635 2,082 State and local 561 (13) 3,196 2,069 Total provision for income taxes $ 3,838 $ 1,009 The components of the net deferred income taxes are as follows (in thousands): April 30, 2026 2025 Deferred income tax assets: State tax loss carryforwards $ 2,009 $ 2,701 U.S. federal NOL carryforward 4,330 6,819 Vacation accrual 58 32 Real estate basis differences 2,581 2,419 Other 492 420 Total deferred income tax assets 9,470 12,391 Deferred income tax liabilities: Depreciable assets (128) (40) Deferred gains on investment assets (2,400) (2,401) Other (43) (48) Total deferred income tax liabilities (2,571) (2,489) Valuation allowance for realization of certain deferred income tax assets (1,127) (933) Net deferred income tax asset $ 5,772 $ 8,969 A valuation allowance is provided when it is considered more likely than not that certain deferred tax assets will not be realized. The valuation allowance relates primarily to deferred tax assets, including net operating loss carryforwards, in states where the Company either has no current operations or its operations are not considered likely to realize the deferred tax assets due to the amount of the applicable state ne …

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Recent accounting pronouncements In December 2023, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes, which provides for enhanced transparency and decision usefulness of income tax disclosures. ASU 2023-09 was effective for the Companys fiscal year ending April 30, 2026. The adoption of ASU 2023-09 by the Company did not have a material effect on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Expenses (as modified by ASU 2025-01), 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 Companys 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. Other than as described above, there are no new accounting standards or updates to be adopted that the Company currently believes might have a significant impact on its consolidated financial statements. …

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(11) BENEFIT PLANS Pension plan During the fiscal year ending April 30, 2024, the Company transferred $547,000, which was the amount of residual assets (after satisfying any pension plan liabilities) following termination of the Companys defined benefit pension plan, from the defined benefit pension plan to the Companys 401(k) retirement plan available for future awards to eligible employees. This amount that was transferred to the Companys 401(k) retirement plan is recognized as restricted cash on the Companys balance sheet. The Company utilized restricted cash of $137,000 and $92,000 during 2026 and 2025 to fund its 401(k) employer contributions. The Company recognized the known changes in the funded status of the pension plan in the period in which the changes occur through other comprehensive income, net of the related income tax effect. In connection with the termination of the Companys 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 2025. 401(k) The Company provides a 401(k) with a profit sharing plan as a retirement plan for eligible employees. Under the plan, eligible employees may contribute a portion of their annual pre-tax compensation, the Company will contribute 3% of each eligible employees annual pre-tax compensation each year and the Company may make discretionary contributions to eligible employees on a profit sharing basis. The …

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(7) REVENUES Land sale revenues . Land sale revenues are sales of developed residential land, developed commercial land and undeveloped land. Home sale revenues . Home sale revenues are sales of homes constructed and sold by the Company. Other revenues . Other revenues consist of (in thousands): Year Ended April 30, 2026 2025 Landscaping revenues $ 2,394 $ 2,089 Miscellaneous other revenues 1,163 709 Total $ 3,557 $ 2,798 Landscaping revenues consist of landscaping services provided by the Company primarily to homebuilders. Miscellaneous other revenues for 2026 primarily consist of management fees for homeowners associations, residential rental revenues and billboard advertising revenues. Miscellaneous other revenues for 2025 primarily consist of extension fees for purchase contracts, management fees for homeowners associations and residential rental revenues. Major customers . A majority of land sale revenues were received from three customers during 2026 and three customers during 2025. Other than receivables for immaterial amounts (if any), there were no outstanding receivables from these customers as of April 30, 2026 or April 30, 2025. There was one customer that contributed in excess of 10% of the Companys revenues for 2026. The revenues from such customer for 2026 were as follows: $8,954,000, with this revenue reported in the Companys land development business segment. There were two customers that each contributed in excess of 10% of the Companys revenues for 2025. Th …

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(15) INFORMATION ABOUT THE COMPANYS OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS The Company manages its operations through two reportable segments: land development and homebuilding. The land development segment develops residential lots and sites for commercial and industrial use, including land and site planning, obtaining governmental and environmental approvals (entitlements), installing utilities and storm drains, ensuring the availability of water service, building or improving roads necessary for land development and constructing community amenities. The homebuilding segment focuses on building and selling single-family detached and attached homes. The Companys chief operating decision maker (CODM) is its President and Chief Executive Officer. The two segments have been identified based on the way in which financial information is regularly reviewed by the CODM to assess financial performance and allocate resources. The CODM uses each segments profit (loss) in assessing segment performance and deciding how to allocate resources. The Company incurs general and administrative expenses associated with certain corporate functions, which are not specific to a particular segment. With respect to the tables below, (1) revenue information provided for the land development segment includes certain amounts classified as home sale revenues in the accompanying consolidated statements of operations, (2) general and administrative expenses primarily relate to payroll, employee benefit …

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(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES Organization and principles of consolidation The consolidated financial statements include the accounts of AMREP Corporation, an Oklahoma corporation, and its subsidiaries (collectively, the Company). The Company is primarily engaged in two business segments: land development and homebuilding. The Company has no foreign sales. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated balance sheets are presented in an unclassified format since the Company has substantial operations in the real estate industry and its operating cycle is greater than one year. Fiscal year The Companys fiscal year ends on April 30. All references to 2026 and 2025 mean the fiscal years ended April 30, 2026 and 2025, unless the context otherwise indicates. Revenue recognition The Company accounts for land sale revenues, home sale revenues and other revenues in accordance with Accounting Standards Codification (ASC) Topic 606 ( Revenue from Contracts with Customers ). Land sale revenues : Revenues and cost of revenues from land sales are recognized when the parties are bound by the terms of a contract, consideration has been exchanged, control, title and other attributes of ownership have been conveyed to the buyer by means of a closing and the Company is not obligated to perform further significant development of the specific property sold. In general, the Companys performance obligation …

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(11) COMMITMENTS AND CONTINGENCIES Refer to Note 13 to the consolidated financial statements contained in the 2025 Form 10-K for detail regarding the Companys warranty reserves, security for performance obligations and litigation. Warranty Reserves . Changes in warranty reserves were as follows (in thousands): Three Months Ended Six Months Ended October 31, October 31, 2025 2024 2025 2024 Balance at beginning of period $ 303 $ 215 $ 259 $ 174 Warranty issued during period 40 25 91 70 Change in pre-existing reserves Warranty expenditures during period (3) (6) (10) (10) Balance at end of period $ 340 $ 234 $ 340 $ 234 Security for Performance Obligations . As of October 31, 2025, the Company had loan reserves outstanding under its Revolving Line of Credit in the aggregate principal amount of $1,812,000 in favor of a municipality guarantying the completion of improvements in a subdivision being constructed by the Company. Litigation . The Company has not accrued any amounts related to litigation matters as of October 31, 2025. …

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(6) NOTES PAYABLE The following tables present information on the Companys notes payable in effect as of October 31, 2025 (dollars in thousands): Principal Amount Available for Outstanding Principal New Borrowings Amount October 31, October 31, April 30, Loan Identifier Lender 2025 2025 2025 Revolving Line of Credit BOKF $ 4,438 $ $ Equipment Financing DC 23 26 Total $ 4,438 $ 23 $ 26 October 31, 2025 Interest Mortgaged Property Scheduled Loan Identifier Rate Book Value Maturity Revolving Line of Credit 7.18 % $ 1,721 August 2028 Equipment Financing 2.35 % 23 June 2028 Principal Repayments Three Months Ended Six Months Ended October 31, October 31, Loan Identifier 2025 2024 2025 2024 Revolving Line of Credit $ $ $ $ Equipment Financing 2 2 3 3 Total $ 2 $ 2 $ 3 $ 3 There were no capitalized interest and fees for the three and six months ended October 31, 2025 and October 31, 2024 for the Companys notes payable in effect as of October 31, 2025. As of October 31, 2025, the Company was 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 2025 Form 10-K for detail about the above notes payable. In August 2025, ASW and BOKF entered into the Seventh Modification Agreement to the Loan Agreement and ASW entered into the Second Amended and Restated Revolving Line of Credit Promissory Note in favor of BOKF. These documents resulted in the following …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

(10) BENEFIT PLANS 401(k) . Refer to Note 11 to the consolidated financial statements contained in the 2025 Form 10-K for detail regarding the Companys 401(k) plan. For its 401(k) employer contribution, the Company accrued $36,000 and $67,000 for the three and six months ended October 31, 2025 and $41,000 and $63,000 for the three and six months ended October 31, 2024. Equity compensation plan . Refer to Note 11 to the consolidated financial statements contained in the 2025 Form 10-K for detail regarding the AMREP Corporation 2016 Equity Compensation Plan (the Equity Plan). The summary of the restricted share award activity for the six months ended October 31, 2025 presented below represents the maximum number of shares that could become vested after that date: Number of Restricted share awards Shares Non-vested as of April 30, 2025 31,942 Granted during the six months ended October 31, 2025 18,500 Vested during the six months ended October 31, 2025 (15,715) Forfeited during the six months ended October 31, 2025 (750) Non-vested as of October 31, 2025 33,977 The Company recognized non-cash compensation expense related to the vesting of restricted shares of common stock net of forfeitures of $85,000 and $149,000 for the three and six months ended October 31, 2025 and $86,000 and $139,000 for the three and six months ended October 31, 2024. As of October 31, 2025, there was $454,000 of unrecognized compensation expense related to restricted shares of common stock previously iss …

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(13) INFORMATION ABOUT THE COMPANYS OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS Refer to Note 15 to the consolidated financial statements contained in the 2025 Form 10-K for detail regarding the Companys operations in different industry segments. With respect to the tables below, (1) revenue information provided for the land development segment includes certain amounts classified as home sale revenues in the accompanying condensed consolidated statements of operations, (2) general and administrative expenses primarily relate to payroll, employee benefits and professional expenses and (3) segment assets exclude corporate assets, such as cash and cash equivalents, corporate facilities and tax assets. Three months ended October 31, 2025 . The following table sets forth summarized data for the industry segments in which the Company operated for the three months ended October 31, 2025 (in thousands): For the Three Months Ended Land October 31, 2025 Development Homebuilding Consolidated Revenues $ 2,204 $ 6,346 $ 8,550 Other Revenues 826 22 848 Segment Revenues 3,030 6,368 9,398 Cost of Revenues 1,221 4,778 5,999 Other Cost of Revenues 324 324 General and administrative expenses 1,042 479 1,521 Segment profit (loss) 443 1,111 1,554 Interest income, net 459 Other income Unallocated amounts: Other corporate general and administrative expenses (435) Income before income taxes $ 1,578 Depreciation and amortization $ 77 $ 4 Capital expenditures $ (3) $ 63 Three months ended October 31, 20 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES The accompanying unaudited condensed consolidated financial statements have been prepared by AMREP Corporation (the Company) pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC) for interim financial information, and do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The Company, through its subsidiaries, is primarily engaged in two 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 2026 and 2025 are to the fiscal years ending April 30, 2026 and 2025. The unaudited condensed consolidated financial statements herein should be read in conjunction with the Companys annua …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing