Alexander's (ALX) investor relations material

Executive summary

• Comparable FFO was $0.65/share, up 14% YoY and $0.02 ahead of consensus, driven by leasing, mark-to-market gains and same-store growth.

• Q3 net income was $27.4M and FFO was $36.3M, or $7.07 per diluted share; nine-month net income included a $148.0M Rego Park I sale gain.

• Manhattan was described as a landlord’s market, with rising demand, tight Class A availability and minimal new supply.

Financial highlights

• Q3 rental revenue was $72.1M versus $53.4M YoY, primarily reflecting $18.8M higher straight-line revenue tied to Kohl's lease modification.

• Q3 operating expenses were $25.9M versus $26.7M; interest and debt expense declined to $10.9M from $14.1M YoY.

• New York office same-store NOI rose 11.9% GAAP and 8.7% cash; street retail NOI rose 8.4% GAAP and 9.3% cash.

• Overall New York same-store NOI increased 10.2% GAAP and 4.9% cash, or 8.4% cash excluding Bloomberg's accelerated rent abatement at 731 Lexington.

• Nine-month rental revenue was $180.2M versus $159.9M; net income was $187.4M versus $24.4M, including the $148.0M Rego Park I sale gain.

Outlook and guidance

• FY2026 comparable FFO is expected to exceed 2025; Q3 was described as a reasonable net run rate through 2027, with significant growth expected in 2028 and beyond.

• Strong same-store growth is expected through 2027; New York office growth is expected at or above current levels, while retail results may be lumpier.

• 2026 Manhattan office leasing is projected at 2.4M sq ft; New York office occupancy reached 93%, with a 1.1M sq ft pipeline beyond the completed Citadel lease.

• Leverage is expected to trend below 7x by late 2027 or early 2028 as income comes online, despite development capital spending.

• Cash flow from continuing operations and existing cash are expected to cover 12 months of operations, dividends, debt service and capital expenditures; maturing debt may be refinanced or paid down.