ALEXANDERS INC SEC 10-Q Report

Alexander's Inc., a real estate investment trust (REIT) specializing in the ownership, management, and development of properties, has released its Form 10-Q report for the third quarter of 2025. The report provides a detailed overview of the company's financial performance and operational highlights for the period ending September 30, 2025. Financial Highlights Rental Revenues: Alexander's Inc. reported rental revenues of $53.4 million for the three months ended September 30, 2025, a decrease from $55.7 million in the same period of the previous year. This decline was primarily due to the expiration of Home Depot’s lease.Net Income: The company achieved a net income of $6.0 million for the three months ended September 30, 2025, compared to $6.7 million in the prior year’s corresponding period. The decrease in net income reflects lower rental revenues and interest income.Net Income Per Share: Net income per share was $1.16 for the three months ended September 30, 2025, down from $1.30 in the same period last year, influenced by the factors affecting net income.Rental Revenues (Nine Months): For the nine months ended September 30, 2025, rental revenues were $159.9 million, a decrease from $170.5 million in the prior year’s nine months. This reduction was impacted by lease expirations and lower lease termination fee income.Net Income (Nine Months): Net income for the nine months ended September 30, 2025, was $24.4 million, compared to $31.2 million in the same period of the previous year, influenced by decreased rental revenues and interest income.Net Income Per Share (Nine Months): Net income per share for the nine months ended September 30, 2025, was $4.75, down from $6.07 in the prior year’s nine months, reflecting the decline in net income. Business Highlights Revenue Segments: Bloomberg L.P. accounted for approximately 60% of rental revenues for the nine months ended September 30, 2025, underscoring its importance as a major tenant. No other tenant contributed more than 10% of rental revenues.Leasing Activity: The expiration of Home Depot's lease at 731 Lexington Avenue resulted in a $3,774,000 reduction in rental revenue for the three months ended September 30, 2025. This was partially offset by new leases at Rego Park II, which increased rental revenue by $1,417,000.Occupancy Rates: As of September 30, 2025, the commercial occupancy rate stood at 94.9%, while the residential occupancy rate was 97.1%, indicating strong occupancy levels across the portfolio.Significant Tenant Developments: In May 2024, Alexander's Inc. reached an agreement with Bloomberg to extend leases covering approximately 947,000 square feet at 731 Lexington Avenue, extending the term to February 2040.Property Portfolio: The company's portfolio consists of five properties totaling 2,455,000 square feet. Alexander's Inc. continues to focus on maintaining high occupancy and optimizing rental income.Future Outlook: The company is exploring sale opportunities for the Rego Park I property, which is currently vacant, and is in advanced negotiations with a potential buyer. Additionally, discussions are ongoing with lenders regarding a potential loan restructuring for the retail condominium at 731 Lexington Avenue.Operational Challenges: Alexander's Inc. faces challenges from interest rate fluctuations and inflation, which could impact cash flow from operations. However, the company anticipates that cash flow from operations, along with existing cash balances, will be sufficient to fund business operations and capital expenditures over the next twelve months.SEC Filing: ALEXANDERS INC [ ALX ] - 10-Q - Nov. 03, 2025