AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. It operates through two segments, Land Development and Homebuilding. The company sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. As of July 1, 2021, it owned approximately 18,000 acres in Rio Rancho, New Mexico. The company owns tracts of land in Colorado, including 1 property of approximately 160 acres planned for approximately 410 homes. It also owns subsurface oil, gas, and mineral interests covering an area of approximately 55,000 surface acres of land located in Rio Rancho. Additionally, the company focuses on developing single-family detached homes and attached townhomes. AMREP Corporation was incorporated in 1961 and is headquartered in Plymouth Meeting, Pennsylvania.
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Amrep is a holding company with two distinct business segments:
- A regional land developer, similar to the early-stage work of a Lennar or D.R. Horton.
- A niche logistics provider, like a specialized UPS for newspaper distribution and publisher fulfillment.
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- Real Estate Development and Sales: Develops and sells residential lots and homes, primarily in Rio Rancho, New Mexico, and manages long-term land holdings.
- Newspaper Publishing: Publishes daily and weekly newspapers along with their companion websites in Northern New Jersey and Southern New York State.
- Commercial Printing: Offers commercial printing services for a variety of publications.
- Shopping Center Operations: Owns and operates a portfolio of shopping centers.
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Amrep (AXR) - Major Customers
Amrep Corporation (AXR) primarily operates in real estate development, serving two distinct major customer groups: other companies and individuals. Based on recent financial reports, revenue contributions from land sales (to companies) and home sales (to individuals) are relatively balanced, making it difficult to designate one group as "primarily" served. Therefore, both significant customer types are described below.
**Customers that are Other Companies:**
Amrep sells developed and undeveloped land to homebuilding companies, developers, and other third parties for the construction of residential and commercial properties.
* **Names of Customer Companies:** Amrep's regulatory filings (e.g., 10-K reports) do not typically disclose the names of specific homebuilding companies or developers that represent a significant concentration of their total revenue (e.g., 10% or more from a single customer). Therefore, specific customer company names and their symbols are not publicly available or disclosed by Amrep.
* **Customer Category:** These customers are generally regional and national homebuilding companies and real estate developers who acquire land for their own construction projects.
**Customers that are Individuals:**
Amrep also sells single-family homes directly to individuals and rents residential properties.
* **Categories of Customers:**
1. **Individual Homebuyers:** These are individuals who purchase newly constructed single-family homes directly from Amrep's homebuilding operations, primarily in its master-planned community of Rio Rancho, New Mexico.
2. **Individual Residential Tenants:** These customers are individuals who rent single-family homes or townhouses from Amrep on a short-term basis in its communities.
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Christopher V. Vitale, President and Chief Executive Officer
Mr. Vitale has served as President and Chief Executive Officer of AMREP Corporation since September 18, 2017. Prior to this role, he held positions as Executive Vice President, Chief Administrative Officer, and General Counsel since September 2014, and Vice President and General Counsel from 2013 to 2014. Mr. Vitale has been responsible for managing AMREP's operations, leading the restructuring and simplification of its business portfolio and balance sheet, and guiding the company's expansion and growth.
Adrienne M. Uleau, Chief Financial Officer and Vice President
Ms. Uleau holds the position of Chief Financial Officer and Vice President at AMREP Corporation. Further detailed background information regarding her prior experience with other companies, company sales, or involvement with private equity-backed firms is not readily available in the provided sources.
Edward B. Cloues, II, Chairman of the Board
Mr. Cloues serves as the Chairman of the Board for AMREP Corporation. He previously held the roles of Chairman of the Board and CEO of K-Tron International, Inc., an industrial manufacturer. K-Tron International, Inc. was acquired by Hillenbrand in 2010.
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Key Risks to Amrep (AXR)
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Volatility of Land Development and Homebuilding Business / Economic Conditions: Amrep's primary business segments, land development and homebuilding, are highly susceptible to economic fluctuations. The company's financial performance is significantly impacted by factors such as interest rate changes, inflation, rising housing costs, and mortgage rates, all of which directly affect housing affordability and consumer demand. Recent reports indicate a decline in land sale revenues due to prevailing market headwinds and delays in securing necessary entitlements. In response, Amrep has implemented strategies like offering sales incentives, reducing lot sizes, and leasing completed homes to counteract softened demand.
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Regulatory and Entitlement Delays: Amrep faces substantial operational challenges due to material delays in obtaining municipal entitlements, ensuring infrastructure availability, securing approvals and inspections, and experiencing slow utility response times. These delays impede construction timelines, escalate costs, and defer revenue recognition across both its land development and homebuilding operations. Such regulatory hurdles have led the company to scale back existing development projects and postpone new ones.
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Geographical Concentration: A significant portion of Amrep's business activities is concentrated in Rio Rancho, New Mexico. This high degree of geographical concentration exposes the company to specific regional economic downturns, localized regulatory shifts, or other challenges that could disproportionately affect its operations compared to a more geographically diversified real estate firm.
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Additive manufacturing (3D printing) poses an emerging threat to Amrep's manufacturing segment, New York Twist Drill Corp. As advancements in 3D printing technologies for metals and other materials continue, they could reduce the overall demand for traditional subtractive manufacturing processes, which rely heavily on the cutting tools produced by Amrep's subsidiary. This shift could diminish the market for their core product.
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Amrep (AXR) operates primarily in two business segments: land development and homebuilding in New Mexico, and media services.
Land Development and Homebuilding
The addressable market size for Amrep's land development and homebuilding operations in New Mexico cannot be precisely quantified from the available information. While the construction industry contributed approximately $6 billion to New Mexico's GDP in the second quarter of 2024, this figure encompasses both residential and non-residential construction and is not specific to land development and homebuilding by private companies like Amrep. Information on the New Mexico real estate market includes median home prices (around $358,800 in April 2024) and the number of homes sold, but a total annual market size for land development and homebuilding is not explicitly provided. Therefore, the addressable market for this segment is: null
Media Services
Amrep's media services division, operated through Kable Media Services, Inc. (now Palm Coast Data), provides fulfillment services for magazines and publishers. The addressable market for these services can be understood in terms of the broader magazine publishing industry.
- Globally, the magazine publishing market was valued at approximately USD 82.98 billion in 2024, with projections to reach US$ 140.07 billion by 2034. Other estimates place the global market size at USD 103.6 billion in 2024, expected to grow to USD 120.9 billion by 2033, or USD 88.6 billion in 2025, projected to reach USD 106.3 billion by 2033.
- In the U.S., the magazine and periodical publishing market size is estimated to be $40.2 billion in 2025.
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Here are 3-5 expected drivers of future revenue growth for Amrep (AXR) over the next 2-3 years:
- Development and Sale of Existing Land Holdings: Amrep, as a significant landholder in New Mexico, particularly with over 16,000 acres in Rio Rancho, is expected to drive future revenue through the continued development and sale of its substantial land assets. The geographical constraints on Albuquerque's growth suggest that future expansion in the region will likely occur on land owned by Amrep, positioning the company for long-term revenue generation from land sales. However, the realization of these revenues can fluctuate due to factors like the nature and timing of specific transactions.
- Growth in Homebuilding Activities: As an award-winning homebuilder in New Mexico, Amrep's revenue growth will be significantly influenced by its homebuilding segment. The company's ability to increase the number of homes sold and potentially their average selling prices will contribute to top-line expansion. Recent financial reports indicate an increase in home sale revenues, attributed to a higher number of homes sold.
- Improved Operational Efficiencies and Addressing Market Challenges: Amrep's focus on operational enhancements and strategic initiatives has positively impacted its net income and revenue in recent periods. The company also acknowledges the need to address challenges in housing affordability and market conditions. By successfully implementing strategies to navigate these market dynamics and enhance operational efficiency in both land development and homebuilding, Amrep can improve its revenue realization and gross margins. However, material delays in municipal entitlements, infrastructure, approvals, and utility response times have caused delays in construction and revenue recognition, indicating that overcoming these operational hurdles will be crucial for consistent growth.
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Share Repurchases
- Amrep authorized a share repurchase program on March 28, 2022, to repurchase up to 2,096,061 shares, representing 28.6% of its outstanding share capital, at $10.45 per share, totaling $21.9 million.
- The company reported stock buybacks valued at $886.72K for the period ending January 30, 2021.
Share Issuance
- The weighted average number of common shares outstanding (diluted) slightly increased from 5,307,000 for the fiscal year ended April 30, 2023, to 5,347,000 for the fiscal year ended April 30, 2024.
- For the first quarter of fiscal 2026 (ended July 31, 2025), the diluted weighted average common shares outstanding were 5,375,000, up from 5,353,000 in the same period of the prior year (Q1 fiscal 2025).
Inbound Investments
- No significant large-scale strategic investments in the company by third-parties were explicitly reported in the provided information.
- In August 2025, AMREP Southwest Inc., a subsidiary of AMREP, amended its revolving line of credit facility with BOKF, NA dba Bank of Albuquerque, increasing the maximum borrowing capacity by $750,000 to $6.5 million and extending the maturity to August 15, 2028.
Outbound Investments
- No information available regarding Amrep making strategic investments in other companies.
Capital Expenditures
- Net cash used in investing activities for both fiscal years 2024 and 2023 was primarily due to an increase in capital expenditures for property and equipment.
- In 2024, the company reduced the number and scope of active land development projects and delayed new projects due to market headwinds, uncertainty, and increased entitlement and infrastructure delays, which may lead to reduced developed residential revenues in fiscal year 2025.
- The primary focus of capital expenditures includes land and site planning, obtaining governmental and environmental approvals, installing utilities and storm drains, ensuring water service, and building or improving roads and community amenities related to its land development and homebuilding segments in New Mexico.
