AMREP CORP.

AMREP Corporation

Overview

• Organized in 1961 as an Oklahoma corporation.
• Operates two primary business segments through subsidiaries:
  • Land Development
  • Homebuilding
• All operations are within the United States.
• Executive operations located in Havertown, Pennsylvania.

Land Development (primary focus in New Mexico)

• Land holdings (as of April 30, 2026):
  • Approximately 16,200 acres in Sandoval County, New Mexico.
  • Approximately 15,300 acres of additional undeveloped acreage in Sandoval County (high and low contiguous ownership areas) suitable for potential development.
  • Minerals and mineral rights in and under approximately 55,000 surface acres in Sandoval County.
• Activities and services:
  • Develops residential lots and sites for commercial and industrial use.
  • Provides land/site planning, entitlement (including environmental approvals), utilities and storm drain installation, water service availability, road construction, and community amenity development.
  • Engineering performed by company employees and outside firms; construction and development work largely performed by outside contractors.
  • Offers landscaping services primarily for homebuilders.
  • Markets land for sale or lease directly and through brokers.
• Customers:
  • Sells land to the company’s internal homebuilder, national, regional and local homebuilders, commercial and industrial developers, and others.
  • In 2026, 100% of developed residential land sales were to three homebuilders.
• Development pipeline and projects:
  • Maintains a portfolio of subdivision development projects in New Mexico, including developed lots, under-development acreage, commercial/industrial parcels, and undeveloped acreage across multiple named developments (for example: Lomas Encantadas, Paseo Gateway, Hawk Site, Hawk Adjacent, Papillon, Park West Village, Orchard Park, Desert Sage, Northern Exposure, Alegria, Rancho La Mirada, Albuquerque/Playa del Sur).
• Development economics and timing:
  • Uses infrastructure reimbursement mechanisms such as public improvement districts (PIDs) and private infrastructure reimbursement covenants; these reimburse development costs via special levies or assessments and may involve discounted prepayments.
  • Impact fees are payable by homebuilders to fund capital improvements; the company receives credits or offsets and may sell these benefits to homebuilders.
• Market considerations:
  • The New Mexico housing market is competitive, with numerous national, regional and local builders.
  • Development and entitlements are subject to regulatory approvals, infrastructure costs, water availability, and environmental considerations.
• Financing and risk:
  • Development requires financing or other funding sources.
  • The company may pursue opportunistic land acquisitions, primarily in New Mexico.

Homebuilding

• Scope:
  • Owns and operates a homebuilder in New Mexico.
  • Builds single-family detached and attached homes with a variety of floor plans, elevations, and upgrade options.
• Sales and marketing:
  • Sells homes through internal operations and external sales brokers; uses model homes.
  • Offers built-to-order homes and spec homes to meet timelines.
• Transactions and contingencies:
  • Sales contracts require deposits at signing, with possible additional deposits for options and upgrades.
  • Financing contingencies may permit buyers to cancel if financing cannot be obtained within a specified period.
  • Other contingencies can include the sale of a pre-existing home.
• Construction management:
  • Construction is overseen by on-site field managers.
  • Most construction work is performed by independent subcontractors under defined scopes and fixed prices.
• Seasonality and demand:
  • Historically, closings have strengthened in the first and fourth quarters.
  • In 2026, the company did not experience the typical seasonality pattern.
• Competitive and market factors:
  • Competes with other homebuilders in New Mexico on location, price, quality, reputation, design, and amenities.
  • Also competes with resales of existing homes and rental housing.
• Materials and labor:
  • Sources materials from multiple suppliers; costs are influenced by commodity prices and regulations.
  • Availability of qualified labor can be tight; specialized trades and contractors can affect costs and timing.
• Regulatory environment:
  • Subject to federal, state, and local regulations including building codes, zoning, environmental, labor, and safety requirements.
  • Approvals and entitlements can be delayed by regulatory discretion and changing requirements.
• Financial considerations:
  • Cost and timing of construction inputs and financing affect margins and profitability.

Human Capital (as of April 30, 2026)

• 52 employees, all full-time.
• No union representation; employee relations described as good.
• Emphasizes competitive compensation, benefits, training, ethics, and corporate culture.

Information and Cybersecurity

• Maintains a corporate website with SEC filings, including annual, quarterly, and current reports.
• Cybersecurity framework includes risk management processes, use of third-party service providers, and ongoing monitoring by management and the Audit Committee.
• No material cybersecurity incidents reported for 2025 or 2026 in the provided text.

Properties and Facilities

• Executive office in Havertown, Pennsylvania (approximately 1,400 square feet).
• Land development and homebuilding offices in Rio Rancho, New Mexico (approximately 7,000 square feet) in an owned building.
• Leases approximately 2 acres in Rio Rancho for storage.
• Additional real estate inventory and investment property details are referenced in company filings.

Selected operating metrics

• 805 new construction single-family residential starts in Rio Rancho in 2026 by the company, its customers, and other builders; 973 starts in 2025.
• In 2026, developed residential land sales were exclusively to three homebuilders (100% of such sales).