Alexander's (ALX) investor relations material

Executive summary

• Business performance remains strong in some segments, with management confident in delivering industry-leading growth over the next two years, driven by leasing momentum and strategic acquisitions, though Q1 2026 net income was $4.7M ($0.91 per share), down from $12.3M ($2.40 per share) year-over-year, primarily due to lower rental revenues and higher operating expenses.

• Funds from operations (FFO, non-GAAP) for Q1 2026 was $13.4M ($2.60 per share), down from $20.8M ($4.06 per share) in Q1 2025.

• Portfolio includes five NYC properties totaling 2.45M sq. ft., with commercial occupancy at 94.4% and residential at 97.4%.

• Major tenant Bloomberg L.P. accounted for 61% of rental revenues; lease extended to 2040 with significant incentives and a rent abatement in 2026.

• Entered agreement to sell Rego Park I shopping center for $235.5M, expecting a $147M gain; closing anticipated by Q3 2026.

Financial highlights

• First quarter comparable FFO was $0.52/share, down from $0.63/share year-over-year, mainly due to prior period ground rent reversal and higher net interest expense.

• Liquidity stands at $2.6 billion, including $1.2 billion in cash and $1.4 billion in undrawn credit lines.

• Rental revenues decreased to $53.4M from $54.9M year-over-year, mainly due to lease expirations and lower recoveries.

• Operating expenses rose to $29.0M from $25.6M, driven by higher recoverable expenses and lower capitalized costs.

• Recent acquisition of a 49% interest in Park Avenue Plaza is expected to be $0.10 accretive on a full-year basis, with a cash yield of roughly 8% and GAAP yield in double digits.

Outlook and guidance

• Full-year 2026 comparable FFO is expected to be slightly higher than 2025, with significant earnings growth projected for 2027 as lease-up at PENN 1 and PENN 2 and new acquisitions take effect.

• Management expects operating cash flow and existing cash to be sufficient for operations, dividends, debt service, and capital expenditures over the next 12 months.

• Sale of Rego Park I expected to close by Q3 2026, with proceeds of ~$222.8M and a $147M gain.

• Free rent burn-off and reduced tenant improvements are anticipated to materially boost cash flow by 2028.

• Management does not provide formal FFO guidance but offers selective forward-looking commentary.