Alexander's, Inc.

What they do

Alexander's owns and leases commercial and residential property in New York City, managed by Vornado under automatically renewing agreements. Following the 2026 sale of Rego Park I, the portfolio is four properties totaling 2,110,000 square feet: 731 Lexington Avenue (office and retail), Rego Park II shopping center, the Flushing building subleased to New World Mall LLC, and the Alexander apartment tower. Vornado owned 32.4% of the common stock as of December 31, 2025.

Revenue drivers

• 731 Lexington Avenue office (Bloomberg) — Bloomberg leases approximately 952,000 square feet and paid $129.3M in 2025, about 61% of rental revenues; $65.2M in the first half of 2026, about 60%.
• Rego Park II retail — 606,000 square foot Queens shopping center anchored by Costco (145,000 sq ft) and Kohl's (133,000 sq ft), plus Burlington, Best Buy and Marshalls.
• Alexander apartment tower — 312 residential units totaling 255,000 square feet above Rego Park II; residential occupancy was 97.4% at June 30, 2026.
• Flushing building — 167,000 square feet on Roosevelt Avenue and Main Street in Queens, subleased to New World Mall LLC under a ground lease running through January 2037.

Recent performance

Full-year 2025 revenue was $213.2M and net income $28.2M, or $5.50 per diluted share, down from $43.4M or $8.46 in 2024. 2025 FFO was $63.0M, or $12.27 per diluted share, versus $77.97M or $15.19 in 2024. Home Depot's 83,000 square foot lease at 731 Lexington Avenue expired January 31, 2025, ending roughly $15M of annual rental revenue. Second quarter 2026 net income was $155.4M, or $30.24 per diluted share, including a $148.0M gain on the sale of Rego Park I; quarterly FFO was $15.5M versus $14.8M a year earlier.

Strategy

Management is simplifying the portfolio, having sold Rego Park I after relocating Burlington and Marshalls into Rego Park II under ten-year leases. At Rego Park II, a lease modification with a 135,000 square foot tenant gives both sides August 2026 early termination options against an approximately $29M tenant payment, paired with a new 15-year Target lease for the space. On December 5, 2025 the company completed a $175M interest-only refinancing of the Rego Park II mortgage at SOFR plus 2.00%, maturing 2030, paying down the prior $198.5M loan. The $300M 731 Lexington retail condominium mortgage was restructured on December 23, 2025 into a $132.5M senior A-Note held by a company subsidiary, a $167.5M PIK C-Note, and a B-Note for re-leasing capital, maturing December 2035.

Risks

• Tenant concentration — Bloomberg accounted for 61% of 2025 rental revenues and 60% in the first half of 2026; losing or impairing that tenant would materially hurt results.
• Office demand — The 10-K notes work-from-home, hybrid schedules and AI-driven space changes could reduce office tenants' long-term physical space needs.
• New York City concentration — All revenues come from New York City properties, exposing results to local economic cycles, business relocations and inflation.
• Refinancing and rate risk — Success depends on refinancing existing debt on acceptable terms; the 2025 Rego Park II loan is floating-rate at SOFR plus 2.00%.

Outlook

The filings describe 2026 activity around the Rego Park I sale, the Target lease at Rego Park II, and a March 31, 2026 Bloomberg lease amendment granting a $56.8M rent abatement from April 1 to December 1, 2026. Occupancy stood at 94.6% commercial and 97.4% residential as of June 30, 2026. Management cites interest rate fluctuations, inflation and potential economic downturn as continuing influences, and offers no earnings guidance in the excerpted material.