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 redevelopment and development projects underway, including PENN 1, PENN 2, 350 Park Avenue, and 623 Fifth Avenue.

• Significant progress in occupancy, with New York office occupancy rising to 91.2% from 88.8% year-over-year.

• 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.

Financial highlights

• Comparable FFO for 2025 was $2.32 per share, slightly higher than 2024; 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 increased 5% for the quarter, while same-store cash NOI declined 8.3% due to free rent and ground lease adjustments.

• Depreciation and amortization of real property for Q4 2025 was $8.6 million; for the year, $34.8 million.

• Funds from operations (FFO) for Q4 2025 was $12.5 million ($2.43 per diluted share), down from $20.8 million ($4.06 per diluted share) in Q4 2024; full-year 2025 FFO was $63.0 million ($12.27 per diluted share), compared to $78.0 million ($15.19 per diluted share) in 2024.

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 and tenants commence rent payments.

• Occupancy anticipated to continue increasing as leasing pipeline remains robust.