Alexander's (ALX) Q3 2026 earnings summary

Executive summary

• Comparable FFO was $0.65 per share, up 14% YoY and $0.02 above consensus; reported Q3 FFO was $36.3M, or $7.07 per diluted share.

• Q3 rental revenue was $72.1M, net income was $27.4M and diluted EPS was $5.33.

• Nine-month net income of $187.4M included a $148.0M Rego Park I sale gain; nine-month FFO was $65.3M, or $12.70 per diluted share.

• Manhattan office demand and leasing remained strong, supported by tight Class A availability and rising rents.

Financial highlights

• 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 in Q3.

• New York business same-store NOI increased 10.2% GAAP and 4.9% cash, or 8.4% cash excluding the accelerated Bloomberg rent abatement.

• Q3 rental revenue increased to $72.1M from $53.4M, primarily reflecting $18.8M higher straight-line revenue tied to Kohl's lease modification; operating expenses were $25.9M versus $26.7M.

• Q3 interest and debt expense declined to $10.9M from $14.1M; higher net interest expense partly offset comparable FFO gains due to the rate on 2033 bonds versus retired bonds.

• Nine-month revenue was $180.2M versus $159.9M; FFO was $65.3M versus $50.5M.

Outlook and guidance

• FY2026 comparable FFO is expected to exceed FY2025; 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 New York office leasing is projected at 2.4M sq ft, including Citadel's 1.05M sq ft lease; another 1.1M sq ft is in the pipeline.

• New York office occupancy reached 93%, up 80 bps QoQ and from 88.4% a year earlier.

• Leverage is expected to fall below 7x by late next year or early the following year as income comes online, despite development capital needs.