ALEXANDERS INC. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>ALEXANDERS INC. has filed its Q1 2024 10-Q report.</b>

AI Summary

ALEXANDERS INC (ALX) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. ALEXANDERS INC. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. ALEXANDERS INC. is incorporated in Delaware. The company's principal business address is in Paramus, NJ.

Why It Matters

For investors and stakeholders tracking ALEXANDERS INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational updates for ALEXANDERS INC. for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential risks moving forward.

Risk Assessment

Risk Level: low — ALEXANDERS INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant negative news or disclosures that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand revenue trends and operational efficiency for Q1 2024.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-05-06 — Filing Date (10-Q filing)
• 6798 — SIC Code (ALEXANDERS INC.)
• DE — State of Incorporation (ALEXANDERS INC.)

Key Players & Entities

• ALEXANDERS INC. (company) — FILER
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-06 (date) — FILED AS OF DATE
• Paramus, NJ (location) — BUSINESS ADDRESS

FAQ

Industry Context

ALEXANDERS INC. operates within the Real Estate Investment Trusts (REITs) sector, focusing on properties and related services.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key metrics for Q1 2024.
2. Examine any disclosures regarding related party transactions or significant business segments.
3. Review the company's business address and contact information for any changes or updates.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-06: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Key Financial Figures

• $1 — ange on which registered Common Stock, $1 par value per share ALX New York Stock

Filing Documents

• alx-20240331.htm (10-Q) — 572KB
• a101thirdamendmenttoblplea.htm (EX-10.1) — 22KB
• a102fourthamendmenttoblple.htm (EX-10.2) — 95KB
• a103fifthamendmenttoblplea.htm (EX-10.3) — 26KB
• a104sixthamendmenttoblplea.htm (EX-10.4) — 35KB
• a105seventhamendmenttoblpl.htm (EX-10.5) — 38KB
• a106eighthamendmenttoblple.htm (EX-10.6) — 27KB
• a107ninthamendmenttoblplea.htm (EX-10.7) — 278KB
• exhibit151-10q33124.htm (EX-15) — 2KB
• exhibit311-10q33124.htm (EX-31.1) — 9KB
• exhibit312-10q33124.htm (EX-31.2) — 9KB
• exhibit321-10q33124.htm (EX-32.1) — 5KB
• exhibit322-10q33124.htm (EX-32.2) — 5KB
• 0000003499-24-000015.txt (&nbsp;) — 4140KB
• alx-20240331.xsd (EX-101.SCH) — 32KB
• alx-20240331_cal.xml (EX-101.CAL) — 40KB
• alx-20240331_def.xml (EX-101.DEF) — 155KB
• alx-20240331_lab.xml (EX-101.LAB) — 335KB
• alx-20240331_pre.xml (EX-101.PRE) — 248KB
• alx-20240331_htm.xml (XML) — 368KB

Financial Information

PART I. Financial Information

Financial Statements

Item 1. Financial Statements: Consolidated Balance Sheets (Unaudited) as of March 31, 2024 and December 31, 2023 4 Consolidated Statements of Income (Unaudited) for the Three Months Ended March 31, 2024 and 2023 5 Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2024 and 2023 6 Consolidated Statements of Changes in Equity (Unaudited) for the Three Months Ended March 31, 2024 and 2023 7 Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2024 and 2023 8

Notes to Consolidated Financial Statements (Unaudited) 9

Notes to Consolidated Financial Statements (Unaudited) 9 Report of Independent Registered Public Accounting Firm 15

Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures about Market Risk 22

Item 3. Quantitative and Qualitative Disclosures about Market Risk 22

Controls and Procedures 22

Item 4. Controls and Procedures 22

Other Information

PART II. Other Information

Legal Proceedings 23

Item 1. Legal Proceedings 23

Risk Factors 23

Item 1A. Risk Factors 23

Unregistered Sales of Equity Securities and Use of Proceeds 23

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23

Defaults Upon Senior Securities 23

Item 3. Defaults Upon Senior Securities 23

Mine Safety Disclosures 23

Item 4. Mine Safety Disclosures 23

Other Information 24

Item 5. Other Information 24

Exhibits 24

Item 6. Exhibits 24 Exhibit Index 25 Signatures 26 3

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ALEXANDER'S, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands, except share and per share amounts) As of ASSETS March 31, 2024 December 31, 2023 Real estate, at cost: Land $ 32,271 $ 32,271 Buildings and leasehold improvements 1,035,376 1,034,068 Development and construction in progress 2,172 281 Total 1,069,819 1,066,620 Accumulated depreciation and amortization ( 423,844 ) ( 415,903 ) Real estate, net 645,975 650,717 Cash and cash equivalents 526,340 531,855 Restricted cash 21,059 21,122 Tenant and other receivables 5,729 6,076 Receivable arising from the straight-lining of rents 115,511 124,866 Deferred leasing costs, net, including unamortized leasing fees to Vornado of $ 18,282 and $ 19,540 , respectively 23,366 24,888 Other assets 53,294 44,156 $ 1,391,274 $ 1,403,680 LIABILITIES AND EQUITY Mortgages payable, net of deferred debt issuance costs $ 1,092,952 $ 1,092,551 Amounts due to Vornado 493 715 Accounts payable and accrued expenses 46,589 51,750 Other liabilities 21,102 21,007 Total liabilities 1,161,136 1,166,023 Commitments and contingencies Preferred stock: $ 1.00 par value per share; authorized, 3,000,000 shares; issued and outstanding, no ne — — Common stock: $ 1.00 par value per share; authorized, 10,000,000 shares; issued, 5,173,450 shares; outstanding, 5,107,290 shares 5,173 5,173 Additional capital 34,315 34,315 Retained earnings 175,357 182,336 Accumulated other comprehensive income 15,661 16,201 230,506 238,025 Treasury stock: 66,160 shares, at cost ( 368 ) ( 368 ) Total equity 230,138 237,657 $ 1,391,274 $ 1,403,680 See notes to consolidated financial statements (unaudited). 4 ALEXANDER'S, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Amounts in thousands, except share and per share amounts) For the Three Months Ended March 31, 2024 2023 REVENUES Rental revenues $ 61,397 $ 52,941 EXPENSES Operatin

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Organization Alexander's, Inc. (NYSE: ALX) is a real estate investment trust ("REIT"), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to "we," "us," "our," "Company" and "Alexander's" refer to Alexander's, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust ("Vornado") (NYSE: VNO). We have five properties in New York City. 2. Basis of Presentation The accompanying consolidated financial statements are unaudited and include the accounts of Alexander's and its consolidated subsidiaries. All adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted. These consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (the "SEC") and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the operating results for the full year. We operate in one reportable segment. 3. Recently

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 4. Revenue Recognition The following is a summary of revenue sources for the three months ended March 31, 2024 and 2023. For the Three Months Ended March 31, (Amounts in thousands) 2024 2023 Lease revenues $ 59,346 $ 51,036 Parking revenue 1,130 1,096 Tenant services 921 809 Rental revenues $ 61,397 $ 52,941 The components of lease revenues for the three months ended March 31, 2024 and 2023 are as follows: For the Three Months Ended March 31, (Amounts in thousands) 2024 2023 Fixed lease revenues $ 42,534 $ 34,724 Variable lease revenues 16,812 16,312 Lease revenues $ 59,346 $ 51,036 Bloomberg L.P. ("Bloomberg") accounted for revenue of $ 29,963,000 and $ 29,516,000 for the three months ended March 31, 2024 and 2023, respectively, representing approximately 49 % and 56 % of our rental revenues in each period, respectively. No other tenant accounted for more than 10% of our rental revenues. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg's creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data. In May 2024, Alexander's and Bloomberg reached an agreement to extend the leases covering approximately 947,000 square feet at our 731 Lexington Avenue property that were scheduled to expire in February 2029 for a term of eleven years to February 2040. On December 3, 2022, IKEA closed its 112,000 square foot store at our Rego Park I property under a lease that was set to expire in December 2030. The lease included a right to terminate effective no earlier than March 16, 2026, subject to payment of

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 5. Related Party Transactions Vornado As of March 31, 2024, Vornado owned 32.4 % of our outstanding common stock. We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable. Management and Development Agreements We pay Vornado an annual management fee equal to the sum of (i) $ 2,800,000 , (ii) 2 % of gross revenue from the Rego Park II shopping center, (iii) $ 0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $ 376,000 , escalating at 3 % per annum, for managing the common area of 731 Lexington Avenue. Vornado is also entitled to a development fee equal to 6 % of development costs, as defined. Leasing and Other Agreements Vornado also provides us with leasing services for a fee of 3 % of rent for the first ten years of a lease term, 2 % of rent for the eleventh through the twentieth year of a lease term, and 1 % of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants. Under the agreements in effect prior to May 1, 2024, in the event third-party real estate brokers were used, the fees to Vornado increased by 1 % and Vornado was responsible for the fees to the third-party real estate brokers ("Third-Party Lease Commissions"). On May 1, 2024, our Board of Directors approved amendments to the leasing agreements, subject to applicable lender consents, pursuant to which the Company is responsible for any Third-Party Lease Commissions and, in such circumstances, Vornado's fee is 33 % of the applicable Third-Party Lease Commission. Vornado is also entitled to a commission upon the sale of any of our assets equal to 3 % of gross proceeds, as defined, for asset sales less than $ 50,000,000 and 1 % of gross proceeds, as defined, for asset sales of $ 50,000,000 or more.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 6. Mortgages Payable The following is a summary of our outstanding mortgages payable as of March 31, 2024 and December 31, 2023. We may refinance our maturing debt as it comes due or choose to pay it down. Interest Rate at March 31, 2024 Balance at (Amounts in thousands) Maturity March 31, 2024 December 31, 2023 First mortgages secured by: 731 Lexington Avenue, office condominium (1) Jun. 11, 2024 6.00 % $ 500,000 $ 500,000 731 Lexington Avenue, retail condominium (2)(3) Aug. 05, 2025 1.76 % 300,000 300,000 Rego Park II shopping center (2)(4) Dec. 12, 2025 5.60 % 202,544 202,544 The Alexander apartment tower Nov. 01, 2027 2.63 % 94,000 94,000 Total 1,096,544 1,096,544 Deferred debt issuance costs, net of accumulated amortization of $ 18,040 and $ 17,639 , respectively ( 3,592 ) ( 3,993 ) $ 1,092,952 $ 1,092,551 (1) Interest at the Prime Rate (capped at 6.00 % through loan maturity). (2) Interest rate listed represents the rate in effect as of March 31, 2024 based on SOFR as of contractual reset date plus contractual spread, adjusted for hedging instruments as applicable. (3) Interest at SOFR plus 1.51 % which was swapped to a fixed rate of 1.76 % through May 2025. (4) Interest at SOFR plus 1.45 % (SOFR is capped at a rate of 4.15 % thr ough November 2024). 7. Fair Value Measurements ASC Topic 820, Fair Value Measurement ("ASC 820") defines fair value and establishes a framework for measuring fair value. ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities that are highly liquid and are actively traded in secondary markets; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 –unobservable i

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 7. Fair Value Measurements - continued Interest Rate Derivatives We recognize the fair value of all interest rate derivatives in "other assets" or "other liabilities" on our consolidated balance sheets and since all of our interest rate derivatives have been designated as cash flow hedges, changes in the fair value are recognized in other comprehensive income. The table below summarizes our interest rate derivatives, all of which hedge the interest rate risk attributable to the variable rate debt noted as of March 31, 2024 and December 31, 2023, respectively. Fair Value as of As of March 31, 2024 (Amounts in thousands) March 31, 2024 December 31, 2023 Notional Amount Swapped Rate Expiration Date Interest rate swap related to: 731 Lexington Avenue mortgage loan, retail condominium $ 14,878 $ 16,315 $ 300,000 1.76 % 05/25 Interest rate caps related to: Rego Park II shopping center mortgage loan 1,293 1,370 202,544 (1) 11/24 731 Lexington Avenue mortgage loan, office condominium 2,497 4,923 500,000 (2) 06/24 Included in other assets $ 18,668 $ 22,608 (1) SOFR cap strike rate of 4.15 %. (2) In June 2023, we purchased an interest rate cap for $ 11,258 , which capped the Prime Rate at 6.00 % ( 8.50 % as of March 31, 2024) through loan maturity. Financial Assets and Liabilities not Measured at Fair Value Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents and mortgages payable. Cash equivalents are carried at cost, which approximates fair value due to their short-term maturities and are classified as Level 1. The fair value of our mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist, and is classified as Level 2. The table below summa

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 8. Commitments and Contingencies Insurance We maintain general liability insurance with limits of $ 300,000,000 per occurrence and per property, of which the first $ 30,000,000 includes communicable disease coverage, and all-risk property and rental value insurance coverage with limits of $ 1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties and excluding communicable disease coverage. Fifty Ninth Street Insurance Company, LLC ("FNSIC"), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological ("NBCR") acts, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027. Coverage for acts of terrorism (including NBCR acts) is up to $ 1.7 billion per occurrence and in the aggregate. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to FNSIC. For NBCR acts, FNSIC is responsible for a $ 316,000 deductible and 20 % of the balance of a covered loss, and the Federal government is responsible for the remaining 80 % of a covered loss. We are ultimately responsible for any loss incurred by FNSIC. We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism or other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material. Our loans contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, w

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