Alexanders Inc. Files Q3 2024 10-Q

TL;DR

ALEXANDERS INC Q3 2024 10-Q FILED. FINANCIALS OUT.

AI Summary

Alexanders Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Specific financial figures and segment performance are outlined within the report.

Why It Matters

This filing provides investors with a crucial update on Alexanders Inc.'s financial health and operational status for the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the specific financial details and any disclosed risks within the full document could influence the risk level.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the specific quarter for which the 10-Q report is filed.)
• 2024-09-30 — As of Date (The date as of which the financial information is presented.)

Key Players & Entities

• ALEXANDERS INC (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241104 (date) — Date of filing
• 201-587-8541 (phone_number) — Business phone number

FAQ

Key Financial Figures

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

Filing Documents

• alx-20240930.htm (10-Q) — 759KB
• exhibit1010-731lexingtonof.htm (EX-10.10) — 1315KB
• exhibit1011-731lexingtonof.htm (EX-10.11) — 142KB
• exhibit1012-731lexingtonof.htm (EX-10.12) — 145KB
• exhibit1013-731lexofficexs.htm (EX-10.13) — 19KB
• exhibit151-10q9302024.htm (EX-15.1) — 3KB
• exhibit311-10q9302024.htm (EX-31.1) — 9KB
• exhibit312-10q9302024.htm (EX-31.2) — 9KB
• exhibit321-10q9302024.htm (EX-32.1) — 5KB
• exhibit322-10q9302024.htm (EX-32.2) — 5KB
• 0000003499-24-000041.txt ( ) — 6162KB
• alx-20240930.xsd (EX-101.SCH) — 37KB
• alx-20240930_cal.xml (EX-101.CAL) — 45KB
• alx-20240930_def.xml (EX-101.DEF) — 179KB
• alx-20240930_lab.xml (EX-101.LAB) — 382KB
• alx-20240930_pre.xml (EX-101.PRE) — 281KB
• alx-20240930_htm.xml (XML) — 476KB

Financial Information

PART I. Financial Information

Financial Statements

Item 1. Financial Statements: Consolidated Balance Sheets (Unaudited) as of September 30, 2024 and December 31, 2023 4 Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023 5 Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023 6 Consolidated Statements of Changes in Equity (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023 7 Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 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 16

Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures about Market Risk 25

Item 3. Quantitative and Qualitative Disclosures about Market Risk 25

Controls and Procedures 25

Item 4. Controls and Procedures 25

Other Information

PART II. Other Information

Legal Proceedings 26

Item 1. Legal Proceedings 26

Risk Factors 26

Item 1A. Risk Factors 26

Unregistered Sales of Equity Securities and Use of Proceeds 26

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26

Defaults Upon Senior Securities 26

Item 3. Defaults Upon Senior Securities 26

Mine Safety Disclosures 26

Item 4. Mine Safety Disclosures 26

Other Information 26

Item 5. Other Information 26

Exhibits 26

Item 6. Exhibits 26 Exhibit Index 27 Signatures 29 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 September 30, 2024 December 31, 2023 Real estate, at cost: Land $ 32,271 $ 32,271 Buildings and leasehold improvements 1,038,569 1,034,068 Development and construction in progress 8,030 281 Total 1,078,870 1,066,620 Accumulated depreciation and amortization ( 436,619 ) ( 415,903 ) Real estate, net 642,251 650,717 Cash and cash equivalents 354,817 531,855 Restricted cash 42,359 21,122 Tenant and other receivables 4,748 6,076 Receivable arising from the straight-lining of rents 112,986 124,866 Deferred leasing costs, net, including unamortized leasing fees to Vornado of $ 22,497 and $ 19,540 , respectively 163,860 24,888 Other assets 43,948 44,156 $ 1,364,969 $ 1,403,680 LIABILITIES AND EQUITY Mortgages payable, net of deferred debt issuance costs $ 987,978 $ 1,092,551 Amounts due to Vornado 943 715 Accounts payable and accrued expenses 50,443 51,750 Lease incentive liability 113,618 — Other liabilities 21,298 21,007 Total liabilities 1,174,280 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 34,765 34,315 Retained earnings 144,226 182,336 Accumulated other comprehensive income 6,893 16,201 191,057 238,025 Treasury stock: 66,160 shares, at cost ( 368 ) ( 368 ) Total equity 190,689 237,657 $ 1,364,969 $ 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 September 30, For the Nine Months Ended Septem

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 and nine months ended September 30, 2024 are not necessarily indicative of the operating results for the full year. We operate in one reportable segment.

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 and nine months ended September 30, 2024 and 2023. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2024 2023 2024 2023 Lease revenues $ 53,244 $ 52,954 $ 163,878 $ 155,502 Parking revenue 1,168 1,090 3,483 3,300 Tenant services 1,263 1,369 3,103 3,225 Rental revenues $ 55,675 $ 55,413 $ 170,464 $ 162,027 The components of lease revenues for the three and nine months ended September 30, 2024 and 2023 are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2024 2023 2024 2023 Fixed lease revenues $ 35,608 $ 34,926 $ 112,542 $ 104,489 Variable lease revenues 17,636 18,028 51,336 51,013 Lease revenues $ 53,244 $ 52,954 $ 163,878 $ 155,502 Bloomberg L.P. ("Bloomberg") accounted for revenue of $ 93,179,000 and $ 89,863,000 for the nine months ended September 30, 2024 and 2023, respectively, representing approximately 55 % of our rental revenues in each period. 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. On May 3, 2024, Alexander's and Bloomberg entered into 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. Upon e

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 6. Related Party Transactions Vornado As of September 30, 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 one-third 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 7. Mortgages Payable On June 9, 2023, we exercised our remaining one-year extension option on the $ 500,000,000 interest-only mortgage loan on the office condominium of our 731 Lexington Avenue property. The interest rate on the loan remained at LIBOR plus 0.90 % through July 15, 2023 and then at the Prime Rate through loan maturity on June 11, 2024. In addition, in June 2023, we purchased an interest rate cap for $ 11,258,000 , which capped LIBOR at 6.00 % through July 15, 2023 and then the Prime Rate at 6.00 % through loan maturity. On June 11, 2024, we entered into a four-month extension of the loan and simultaneously paid down the principal balance by $ 10,000,000 to $ 490,000,000 . On September 30, 2024, we entered into a new $ 400,000,000 mortgage loan on the office condominium portion of 731 Lexington Avenue. The interest-only loan has a fixed rate of 5.04 % and matures in October 2028. The loan is prepayable, at the Company's option, with no penalty, beginning in October 2026. The new loan replaces the previous $ 490,000,000 loan that bore interest at the Prime Rate and was scheduled to mature in October 2024. The following is a summary of our outstanding mortgages payable as of September 30, 2024 and December 31, 2023. We may refinance our maturing debt as it comes due or choose to pay it down. Interest Rate at September 30, 2024 Balance at (Amounts in thousands) Maturity September 30, 2024 December 31, 2023 First mortgages secured by: 731 Lexington Avenue, office condominium Oct. 9, 2028 5.04 % $ 400,000 $ 500,000 731 Lexington Avenue, retail condominium (1)(2) Aug. 05, 2025 1.76 % 300,000 300,000 Rego Park II shopping center (1)(3) Dec. 12, 2025 5.60 % 202,544 202,544 The Alexander apartment tower Nov. 01, 2027 2.63 % 94,000 94,000 Total 996,544 1,096,544 Deferred debt issuance costs, net of accumulated amortization of $ 6,589 and $ 17,639 , respectively ( 8,566 ) ( 3,9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 9. 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 inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Financial Assets and Liabilities Measured at Fair Value Financial assets measured at fair value on our consolidated balance sheet as of September 30, 2024 consist of interest rate derivatives, which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of September 30, 2024. As of September 30, 2024 (Amounts in thousands) Total Level 1 Level 2 Level 3 Interest rate derivatives (included in other assets) $ 7,087 $ — $ 7,087 $ — Financial assets measured at fair value on our consolidated balance sheet as of December 31, 2023 consist of interest rate derivatives, which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of December 31, 2023. As of December 31, 2023 (Amounts

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