Alexander's (ALX) investor relations material

Executive summary

• Business performance remains strong, with management confident in achieving industry-leading growth over the next two years, driven by robust leasing, strategic acquisitions, and a favorable landlord's market, especially in New York.

• Net income for Q1 2026 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 consists of 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.

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 reversals and higher net interest expense, partially offset by leasing gains.

• Full-year 2026 comparable FFO is expected to slightly exceed 2025, with sequential quarterly growth anticipated as new leases commence and interest expense declines.

• 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 Park Avenue Plaza acquisition is expected to be $0.10 accretive on a full-year GAAP basis, with in-place cash yields near 8% and significant mark-to-market rent upside.

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

• Cash and equivalents plus restricted cash totaled $152.1M at quarter-end, down from $192.2M at year-end 2025.

Outlook and guidance

• Significant earnings growth is projected for 2027 as lease-up at PENN 1 and PENN 2 matures and recent acquisitions contribute.

• Management expects portfolio occupancy to return to mid-90s percent over the next couple of years, driven by strong demand and limited new supply.

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

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

• No formal FFO guidance will be provided, but management continues to offer directional commentary.