Alexander's (ALX) Q4 2025 earnings summary

Executive summary

• Achieved industry-leading leasing results in 2025, with 4.6 million sq ft leased, including a record 3.7 million sq ft in Manhattan and strong activity in San Francisco and Chicago.

• Manhattan office market fundamentals are described as the best in 20 years, with robust tenant demand and rising market rents.

• Major development projects advancing, including 350 Park Avenue (with Citadel as anchor), PENN 15, and 623 Fifth Avenue.

• Net income for Q4 2025 was $3.8 million ($0.74 per diluted share), down from $12.3 million ($2.39 per diluted share) in Q4 2024; full-year 2025 net income was $28.2 million ($5.50 per diluted share), compared to $43.4 million ($8.46 per diluted share) in 2024.

• Significant share buybacks executed, reflecting management's view of undervaluation.

Financial highlights

• Comparable FFO for 2025 was $2.32 per share, slightly higher year-over-year; Q4 comparable FFO was $0.55 per share, down from $0.61 in Q4 2024 due to higher interest expense and prior-year lease termination income.

• Q4 2025 revenues were $53.3 million, down from $55.9 million in Q4 2024; full-year 2025 revenues were $213.2 million, compared to $226.4 million in 2024.

• Same-store GAAP NOI up 5% for the quarter; same-store cash NOI down 8.3% due to free rent and ground lease adjustments.

• Office occupancy rose to 91.2% from 88.8% year-over-year, driven by Penn District leasing.

• Over $200 million in signed but not yet GAAP-recognized revenue to be realized over the next several years.

Outlook and guidance

• 2026 comparable FFO expected to be in line with 2025, with significant earnings growth projected for 2027 as PENN 1 and PENN 2 lease-up impacts materialize.

• Cash NOI expected to turn positive in the second half of 2026 as free rent burns off.

• New York office occupancy anticipated to continue rising as leasing pipeline remains robust.