Core Viewpoint - AMREP Corporation experienced strong earnings growth in fiscal 2025 despite a decline in annual revenues, with net income increasing significantly while revenues were impacted by lower other revenues and high-value transactions [2][11]. Financial Performance - Net income surged 90.1% to $12.7 million, or $2.37 per diluted share, compared to $6.7 million, or $1.25 per share, in fiscal 2024 [2]. - Revenues fell 3.3% to $49.7 million from $51.4 million, primarily due to a 61.9% decline in other revenues, which offset a 23.6% increase in home sale revenues [2]. - Fourth-quarter fiscal 2025 net income was $3.9 million, or $0.73 per share, down from $4.1 million, or $0.77 per share, in the previous year [3]. - Fourth-quarter revenues declined 42.8% to $11.2 million from $19.5 million, reflecting reduced high-value transactions [3]. Segmental Breakdown - Land sales for the full fiscal year decreased 4.4% to $25.6 million from $26.8 million, influenced by a reduced volume of high-priced undeveloped land sales [4]. - Home sale revenue rose 23.6% to $21.2 million from $17.2 million, driven by an increase in the number of closings, despite a 10.9% drop in average selling prices [5]. Cost and Margin Analysis - Land sale cost of revenues dropped 28.2% to $12.4 million from $17.2 million, with gross profit margins improving in the land segment to 52% from 36% [6]. - Homebuilding margins compressed to 21% from 25% due to elevated costs and a shift toward smaller homes [6]. Operational Metrics - General and administrative expenses rose 5.9% to $7.3 million, mainly due to expanded homebuilding operations and IT costs [7]. - Interest income surged 97.1% to $1.6 million from $0.8 million, attributed to increased holdings of U.S. government securities [7]. Management Insights - Management noted delays in municipal approvals and utility access affecting construction timelines, leading to a strategic moderation in development projects [8]. - The company ended the year with 88 homes under production, including 28 under contract, indicating an improving sales pipeline [9]. Future Outlook - Management cautioned about a likely decline in developed land sales in fiscal 2026 due to fewer active development projects and infrastructure bottlenecks [14]. - AMREP believes it is well-positioned to handle near-term volatility, supported by year-end cash and equivalents totaling $39.9 million [14][13]. Other Developments - AMREP expanded its leasing strategy, increasing homes under lease to 21 from 10 in the prior year, diversifying revenue sources [15]. - The company terminated its defined benefit pension plan, simplifying its balance sheet and eliminating long-term pension obligations [16].