(4)        INVESTMENT ASSETS, NET

(5)         OTHER ASSETS

MHWDC and ASW made certain representations and warranties in connection with this loan and are required to comply with various covenants, reporting requirements and other customary requirements for similar loans. The loan documentation contains customary events of default for similar financing transactions, including: MHWDC’s failure to make principal, interest or other payments when due; the failure of MHWDC or ASW to observe or perform their respective covenants under the loan documentation; the representations and warranties of MHWDC or ASW being false; the insolvency or bankruptcy of MHWDC or ASW; and the failure of ASW to maintain a net worth of at least $32 million. Upon the occurrence and during the continuance of an event of default, BOKF may declare the outstanding principal amount and all other obligations under the loan immediately due and payable. MHWDC incurred customary costs and expenses and paid certain fees to BOKF in connection with the loan. The Company capitalized no interest or fees related to this loan during the three and nine months ended January 31, 2021. The total book value of the property mortgaged pursuant to this loan was $1,298,000 as of January 31, 2021. At January 31, 2021, MHWDC was in compliance with the financial covenants contained in the loan documentation.

Refer to Note 8 to the consolidated financial statements contained in the 2020 Form 10-K for additional detail about each of the following expired or terminated financing facilities:

The following table summarizes the scheduled principal repayments subsequent to January 31, 2021 with respect to the outstanding financing facilities as of January 31, 2021:

(8)       REVENUES

OtherLand sale revenues for the third quarter and first nine months of 2018 and 2017. Land sale revenues consist of:

Deferred revenueSubstantially all of the land sale revenues in New Mexico were received from four customers for the nine months ended January 31, 2021 and other includesJanuary 31, 2020 and also for the recognitionthree months ended January 31, 2021 and January 31, 2020. Corporate land sale revenues resulted from the sale of deferred revenue related to an oiltwo undeveloped properties in Palm Coast, Florida during the three and gas lease noted below, as well as feesnine months ended January 31, 2020.

Home sale revenues. Home sale revenues are from homes constructed and forfeited depositssold by the Company in the Albuquerque metropolitan area. Home sale revenues were received from six and seven customers earned by AMREP Southwest, together with miscellaneous other income items.during the three months and nine months ended January 31, 2021.

Rental revenues. Rental revenues consist of rent received from tenants at the Company’s warehouse and office buildings in Palm Coast, Florida and at a retail building in the Las Fuentes at Panorama Village subdivision in Rio Rancho, New Mexico.

Other revenues. Other revenues consist of:

Refer to Note 9 to the consolidated financial statements contained in the 20172020 Form 10-K for additional detail about the settlement agreement entered into between Palm Coast and the Stateeach category of Florida in the first quarter of 2018. In June 2009, Palm Coast received $3,000,000 pursuant to an agreement with the State of Florida (the “Award Agreement”) as part of the incentives made available in connection with the consolidation of the Company’s fulfillment services operations at its Palm Coast, Florida location. The Award Agreement included certain performance requirements in terms of job retention, job creation and capital investment which, if not met by Palm Coast, entitled the State of Florida to obtain the return of a portion, or all, of the $3,000,000. Palm Coast had not met certain of the performance requirements in the Award Agreement. During the first quarter of 2018, Palm Coast entered into a Settlement Agreement and Mutual General Release (the “Settlement Agreement”) with the State of Florida. Pursuant to the Settlement Agreement, (1) the Award Agreement was terminated, (2) each of the parties released all claims relating to the Award Agreement that the releasing party may have had against the other party and (3) Palm Coast agreed to pay the State of Florida $1,763,000 as follows: (a) $163,000 during the first quarter of 2018 and (b) 40 quarterly payments of $40,000 each, without interest, on the first business day of each calendar quarter starting on October 1, 2017 and ending on July 1, 2027. Palm Coast timely paid the State of Florida $163,000 during the first quarter of 2018, $40,000 during the second quarter of 2018 and $40,000 during the third quarter of 2018, leaving a balance owed to the State of Florida of $1,520,000 as of January 31, 2018.revenues.

In the Company’s consolidated financial statementsThe Company owns certain minerals and asmineral rights in and under approximately 55,000 surface acres of land in Sandoval County, New Mexico. The lease to a result of entering into the Settlement Agreement, Palm Coast reduced its previously recorded liability of $3,000,000 and a related $26,000 interest accrual by $1,620,000 to $1,406,000 by recognizing a pre-tax gain of $1,318,000 and recording deferred revenue of $302,000. The $1,318,000 pre-tax gain was determined based on depreciation previously taken on assets acquired with Award Agreement funds that were retained by Palm Coast and was recognized in Other revenues during the first nine months of 2018. The $302,000 deferred revenue will be recognized over the remaining life of these assets (approximately seven years from January 31, 2018), with $61,000 having been recognized during the first nine months of 2018 resulting in a deferred revenue balance of $241,000 as of January 31, 2018. As a result of paying the State of Florida $163,000 during the first quarter of 2018, $40,000 during the second quarter of 2018 and $40,000 during the third quarter of 2018, Palm Coast recognized $41,000 of imputed interest expense and reduced its remaining balance sheet liability of $1,406,000 as of the date of the Settlement Agreement to $1,204,000 as of January 31, 2018. These balance sheet liability numbers are less than the amounts owed to the State of Florida of $1,763,000 as of the date of the Settlement Agreement and $1,520,000 as of January 31, 2018 because they have been adjusted to reflect the present values of these deferred non-interest bearing obligations. In February 2018, the Company, Palm Coast and the State of Florida entered into an agreementparty with respect to such mineral rights expired in September 2020 and no drilling had commenced with respect to such mineral rights. The Company did not record any revenue in the remaining payment obligations under the Settlement Agreement (see Note 10).nine months ended 2021 related to this lease.

In addition, refer(9)       LAND SALE COST OF REVENUES

Land sale cost of revenues consist of:

(10)       GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses consist of:

Corporate general and administrative expenses included a non-cash pre-tax pension settlement charge of $2,929,000 in the nine months ended January 31, 2020, due to the Company’s defined benefit pension plan paying an aggregate of $7,280,000 in lump sum payouts of pension benefits to former employees. No such settlement expense was incurred in 2021.

(11)       BENEFIT PLANS

Pension Plan

Refer to Note 1011 to the consolidated financial statements contained in the 20172020 Form 10-K for detail aboutregarding the Oil and Gas Lease and the Addendum thereto with Thrust Energy, Inc. and Cebolla Roja, LLC. No royalties under the Lease were received during the first nine months of 2018. Revenue from this transaction is being recorded over the lease term and approximately $57,000 and $171,000 was recognized during the third quarter and first nine months of each of 2018 and 2017. At January 31, 2018, there was approximately $133,000 of deferred revenue remaining to be recognized before the end of the lease term in September 2018.

During the first quarter of 2017, a subsidiary of AMREP Southwest sold a single tenant retail commercial building in Rio Rancho, New Mexico, which resulted in a pre-tax gain of $1,496,000 that was recognized in Other revenues during the first nine months of 2018.

Retirement plan

The Company has aCompany’s defined benefit retirement plan for which accumulated benefits were frozen and future service credits were curtailed as of March 1, 2004. The Company has secured $4,535,000 of accrued pension-related obligations with first lien mortgages on certain real property in favor of the Pension Benefit Guaranty Corporation (the “PBGC”). On an annual basis, the Company is required to provide updated appraisals on each mortgaged property and, if the appraised value of the mortgaged properties is less than two times the amount of the accrued pension-related obligations secured by the mortgages, the Company is required to make a payment to its pension plan in an amount equal to one-half of the amount of the shortfall. During the third quarter of 2018, there was no change in the appraised value of the mortgaged properties that required the Company to make any additional payments to its pension plan.

The Company recognizes the known changes in the funded status of the pension plan in the period in which the changes occur through other comprehensive income, (loss) net of the related deferred income tax effect. The Company recognized other comprehensive income of $225,000$270,000 and $674,000$2,378,000 for the three and nine months ended January 31, 2018,2021 and $248,000January 31, 2020 and $746,000$90,000 and $77,000 for the same periods of 2017,three months ended January 31, 2021 and January 31, 2020 related to the amortization of the plan’s unrecognized net loss includeda decrease in the Accumulated other comprehensive loss,Company’s pension liability, net in the accompanying financial statements.

of tax. The Company funds the pension plan in compliance with IRS funding requirements. The Company contributed $1,040,000made voluntary contributions to the pension plan of $1,847,000 during the nine months ended January 31, 20182021 and none for$3,600,000 during the same period of 2017.nine months ended January 31, 2020.

Equity compensation planCompensation Plan

In September 2016,Refer to Note 11 to the consolidated financial statements contained in the 2020 Form 10-K for detail regarding the AMREP Corporation 2016 Equity Compensation Plan (the “2016 Equity“Equity Plan”) replaced the AMREP Corporation 2006 Equity Compensation Plan (together with the 2016 Equity Plan, the “Equity Plans”). The Company issued 25,7509,000 shares of restricted common stock under the 2016 Equity Plan during each of the first nine months of 2018. In addition, 5,000 shares of restricted common stock issued under the 2006 Equity Plan prior to 2018 were returned to the Company during the second quarter of 2018ended January 31, 2021 and will not vest due to the retirement of an employee.January 31, 2020. During the first nine months of 2018, 10,500ended January 31, 2021 and January 31, 2020, 12,834 shares and 14,833 shares of restricted common stock previously issued under the Equity Plans vested leaving 34,750Plan vested. As of January 31, 2021 and January 31, 2020, 29,000 shares and 36,834 shares of restricted sharescommon stock previously issued under the Equity Plans thatPlan had not vested as of January 31, 2018. For the third quarter and first nine months of 2018, thevested. The Company recognized $31,000 and $76,000 of non-cash compensation expense related to the vesting of restricted shares of common stock issued,net of forfeitures of $27,000 and $19,000 and $48,000$83,000 for the same periods of 2017.nine months ended January 31, 2021 and January 31, 2020 and $20,000 and $29,000 for the three months ended January 31, 2021 and January 31, 2020. As of January 31, 2018,2021 and January 31, 2020, there was $138,000$53,000 and $105,000 of unrecognized compensation expense related to restricted shares of common stock previously issued under the Equity PlansPlan which had not vested as of that date,those dates, which is expected to be recognized over the remaining vesting term not to exceed three years.

OnIn connection with the last trading dayresignation of a director in September 2020, the Company (i) issued 12,411 shares of common stock in October 2020 pursuant to an equivalent number of deferred common share units previously issued to such director and (ii) paid $20,000 in September 2020 to such director in lieu of issuance of deferred common share units earned for calendar year 2017, and based upon days of service, each2020. The Company recognized non-cash expense related to deferred common share units expected to be issued to non-employee membermembers of the Company’s Board of Directors was issued the number of deferred common share units of the Company under the 2016 Equity Plan equal to $20,000 divided by the closing price per share of common stock reported on the New York Stock Exchange on such date. Based on the closing price per share of $7.02 on December 29, 2017, the Company issued a total of 11,396 deferred common share units to members of the Company’s Board of Directors. Director compensation expense is recognized$57,500 and $60,000 for the annual grant of deferred common share units ratably over the director’s service in office during the calendar year.During the first nine months of 2018,ended January 31, 2021 and January 31, 2020 and $15,000 and $20,000 for the total non-cash director fee compensation related to the deferred common share units was $60,000.three months ended January 31, 2021 and January 31, 2020.

The U.S. Tax Cuts and Jobs Act (the “Act”) was signed into law in December 2017. The Act significantly revised the future ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates. The Act reduces the federal corporate tax rate to 21.0% effective January 1, 2018. As the Company has an April 30 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal corporate tax rate of approximately 29.7% for our fiscal year ending April 30, 2018, and a 21% rate for subsequent fiscal years. The 29.7% federal corporate tax rate is a blended rate for the April 30, 2018 fiscal year-end based on a prorated percentage of the number of days prior and subsequent to the January 1, 2018 effective date.

In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the Act. SAB 118 provides for a measurement period that should not extend beyond one year from the Act enactment date for companies to complete the accounting under Accounting Standards Codification Topic 740, Income Taxes (“ASC 740”). In accordance with SAB 118, a company must reflect theInterest (expense) income, tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Act.net consists of:

As of January 31, 2018, the Company had not completed its accounting for the tax effects of the Act, but was able to make reasonable estimates of the impact of the reduction in corporate tax rate and the re-measurement of deferred tax balances:

The Company’s effective tax rate for the third quarter and first nine months was increased by the effect of a net income tax expense increase of $3,057,000 related to accounting for the tax effects of the Act. Excluding this increase, the Company’s effective tax rate was 27.7% and 32.5% for the third quarter and first nine months of 2018 compared to 35.5% and 32.5% for the same periods of 2017. The difference between the statutory rate and the effective rate of the tax provision after excluding the $3,057,000 was primarily due to state taxes.

The total tax effect of gross unrecognized tax benefits in the accompanying financial statements at both January 31, 2018 and April 30, 2017 was $58,000, which, if recognized, would have an impact on the effective tax rate. The Company believes it is reasonably possible that the liability for unrecognized tax benefits will not change in the next twelve months.

Refer to Note 72 to the consolidated financial statements contained in the 2020 Form 10-K for detail aboutregarding the deferred purchase price with respect to a former business segment of the Company.

(13)       OTHER INCOME

Other income consists of:

Settlement Agreement betweenPayment. Other income for the Statenine months ended January 31, 2021 included a settlement payment of Florida and Palm Coast entered into$650,000 from a former business segment of the Company. Refer to Note 2 to the consolidated financial statements contained in the first quarter2020 Form 10-K for detail regarding the former business segment of 2018. In February 2018, Palm Coastthe Company. During the nine months ended January 31, 2021, affiliates of the Company and the Companyaffiliates of this former business segment entered into a Release Agreement (the “Release Agreement”)settlement agreement pursuant to which, among other things, the Company received $650,000 as a settlement payment and $350,000 for rent with respect to properties in Palm Coast, Florida for the Stateperiod May 2020 through August 2020.

Forgiveness of Florida. PursuantDebt. Other income for the three and nine months ended January 31, 2021 included income from forgiveness of debt with respect to the Release Agreement, (1) Palm Coast paidloan received by the State of Florida $956,000, (2) eachCompany pursuant to the Paycheck Protection Program administered by the U.S. Small Business Administration. Refer to Note 7 of the parties released all claims relatingnotes to these consolidated financial statements for detail regarding this debt forgiveness.

(14)       STOCK REPURCHASES

In August 2020, the Company repurchased 11,847 shares of common stock of the Company at a price of $4.48 per share in a privately negotiated transaction. As of the date of the repurchase, the repurchased shares were retired and returned to the guaranty agreement (the “Guaranty Agreement”) betweenstatus of authorized but unissued shares of common stock.

In September 2020, the Board of Directors of the Company andauthorized the StateCompany to purchase up to 1,000,000 shares of Florida entered into incommon stock of the first quarterCompany from time to time pursuant to a share repurchase program, subject to the total expenditure for the purchase of 2018 and the payment obligationsshares under the Settlement Agreement thatshare repurchase program not exceeding $5,000,000, exclusive of any fees, commissions and other expenses related to such repurchases. Under the releasing party may have had against eachshare repurchase program, the Company was authorized to repurchase its common stock from time to time, in amounts, at prices, and at such times as the Company deemed appropriate, subject to market conditions, legal requirements and other considerations. The Company’s repurchases could be executed using open market purchases, unsolicited or solicited privately negotiated transactions or other transactions, and could be effected pursuant to trading plans intended to qualify under Rule 10b5-1 of the other partiesSecurities Exchange Act of 1934, as amended. The share repurchase program did not obligate the Company to repurchase any specific number of shares and (3) eachcould be suspended, modified or terminated at any time without prior notice. The share repurchase program did not contain a time limitation during which repurchases were permitted to occur. In October 2020, the Company repurchased 675,616 shares of common stock of the Guaranty Agreement andCompany at a price of $6.18 per share in a privately negotiated transaction pursuant to the payment obligations under the Settlement Agreement shall be deemed terminated and noneshare repurchase program. As of the parties shall have any further liabilities or obligations with respect thereto. The Company expects to recognize a gain relateddate of the repurchase, the repurchased shares were retired and returned to the Release Agreementstatus of approximately $257,000 during the fourth quarterauthorized but unissued shares of 2018.common stock.

In November 2020, the Company’s share repurchase program was terminated.

(15)       TREASURY STOCK

During the three months ended January 31, 2021, 225,250 shares of common stock of the Company held as treasury stock were retired and returned to the status of authorized but unissued shares of common stock.

(16)        INFORMATION ABOUT THE COMPANY’S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS

The following tables set forth summarized data relative to the industry segments in which the Company operated for the three and nine month periods ended January 31, 2018 and 2017indicated (in thousands):