Alexander's, Inc. (ALX) Bundle
A Brief History of Alexander's, Inc.
Alexander's, Inc. is a real estate investment trust (REIT) that operates primarily in New York City. As of 2024, it has a portfolio that includes five properties, totaling approximately 2,456,000 square feet. The company is managed by Vornado Realty Trust, which owns 32.4% of its outstanding common stock.
Financial Performance Overview
For the nine months ended September 30, 2024, Alexander's reported rental revenues of $170,464,000, an increase from $162,027,000 in the same period in 2023. This revenue growth was attributed to several factors, including increased rental income from lease modifications and extensions.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Rental Revenues | $170,464,000 | $162,027,000 |
| Net Income | $31,167,000 | $86,127,000 |
| Net Income per Share | $6.07 | $16.79 |
| Funds from Operations (FFO) | $57,123,000 | $55,464,000 |
| FFO per Share | $11.13 | $10.81 |
Key Transactions and Developments
On May 3, 2024, Alexander's and Bloomberg L.P. extended their lease covering approximately 947,000 square feet at 731 Lexington Avenue until February 2040. This lease extension included a leasing commission of $32,000,000, with significant amounts paid to third-party brokers and Vornado.
In 2023, the company sold the Rego Park III land parcel for $71,060,000, resulting in net proceeds of $67,821,000 after closing costs, contributing to a significant net gain of $53,952,000.
Occupancy and Leasing Activity
As of September 30, 2024, Alexander's reported a commercial occupancy rate of 92.1% and a residential occupancy rate of 96.5%. The major tenant, Bloomberg, accounted for approximately 55% of the rental revenues, which were $93,179,000 for the nine months ended September 30, 2024.
Debt and Financing Activities
As of September 30, 2024, Alexander's had total mortgages payable of $996,544,000. A new $400,000,000 mortgage loan was secured with a fixed interest rate of 5.04%, maturing in October 2028. The company also entered into a four-month extension of a previous $500,000,000 mortgage loan.
| Debt Summary | Amount | Interest Rate | Maturity |
|---|---|---|---|
| Mortgage Loan (Office Condominium) | $400,000,000 | 5.04% | October 2028 |
| Previous Mortgage Loan | $490,000,000 | Prime Rate | October 2024 |
| Mortgage Loan (Retail Condominium) | $300,000,000 | 1.76% | August 2025 |
| Mortgage Loan (Rego Park II) | $202,544,000 | 5.60% | December 2025 | Mortgage Loan (The Alexander Apartment Tower) | $94,000,000 | 2.63% | November 2027 |
Cash Flow and Liquidity
As of September 30, 2024, Alexander's had cash and cash equivalents of $354,817,000 and restricted cash of $42,359,000. The company reported net cash provided by operating activities of $23,296,000, with total liquidity of $397,176,000.
Net cash used in financing activities was $175,824,000, which included significant debt repayments and dividends paid totaling $69,277,000.
| Cash Flow Summary | 2024 |
|---|---|
| Cash and Cash Equivalents | $354,817,000 |
| Restricted Cash | $42,359,000 |
| Net Cash from Operating Activities | $23,296,000 |
| Net Cash Used in Financing Activities | ($175,824,000) |
| Total Liquidity | $397,176,000 |
A Who Owns Alexander's, Inc. (ALX)
Ownership Structure
As of September 30, 2024, the ownership of Alexander's, Inc. is significantly influenced by Vornado Realty Trust, which holds a substantial stake in the company.
| Owner | Ownership Percentage | Type of Ownership |
|---|---|---|
| Vornado Realty Trust | 32.4% | Common Stock |
| Institutional Investors | Approx. 60% | Common Stock |
| Retail Investors | Approx. 7.6% | Common Stock |
Major Shareholders
Vornado Realty Trust is the largest shareholder, maintaining a critical role in management and operational decisions due to its ownership stake. The company is managed by Vornado under agreements that are automatically renewable each year, which underscores the importance of this relationship.
Institutional Ownership
Institutional investors account for a significant portion of the company's total shares. Notable institutional shareholders include:
| Institution | Ownership Percentage |
|---|---|
| The Vanguard Group | 9.5% |
| BlackRock, Inc. | 8.3% |
| State Street Corporation | 7.4% |
| Other Institutions | Approx. 35% |
Recent Financial Performance
For the nine months ended September 30, 2024, Alexander's, Inc. reported a net income of $31,167,000. This translates to earnings of $6.07 per diluted share, compared to $86,127,000, or $16.79 per diluted share, for the same period in 2023.
Dividend Information
The company declared dividends of $4.50 per common share for the three months ended September 30, 2024, resulting in total dividends paid amounting to $23,101,000 for that period.
Liquidity and Capital Resources
As of September 30, 2024, Alexander's, Inc. reported liquidity of $397,176,000, which includes cash and cash equivalents as well as restricted cash. This is a decrease from $552,977,000 at the end of 2023, primarily attributed to financing activities and cash used in investing activities.
Debt Structure
As of September 30, 2024, the company's outstanding mortgages payable totaled $996,544,000, with a weighted average interest rate of 3.94%:
| Property | Loan Amount | Interest Rate | Maturity |
|---|---|---|---|
| 731 Lexington Avenue (Office) | $400,000,000 | 5.04% | October 2028 |
| 731 Lexington Avenue (Retail) | $300,000,000 | 1.76% | August 2025 |
| Rego Park II Shopping Center | $202,544,000 | 5.60% | December 2025 |
| The Alexander Apartment Tower | $94,000,000 | 2.63% | November 2027 |
Management Agreements
Vornado Realty Trust manages Alexander's, Inc. and is entitled to various fees including:
- Annual management fee of $2,800,000
- 2% of gross revenue from the Rego Park II shopping center
- $0.50 per square foot for tenant-occupied office and retail space at 731 Lexington Avenue
- Escalating management fees for common area management
In summary, Vornado Realty Trust remains the principal owner and manager of Alexander's, Inc., significantly influencing its operational strategy and financial performance. The company's strong institutional backing and robust financial metrics highlight its position in the real estate market.
Alexander's, Inc. (ALX) Mission Statement
As of 2024, Alexander's, Inc. (NYSE: ALX) aims to enhance the value of its properties through strategic leasing, management, and development while maintaining a commitment to delivering strong financial performance and shareholder value. The company focuses on providing high-quality real estate solutions in urban environments, particularly in New York City.
Core Objectives
- Maximize rental income through effective leasing strategies.
- Maintain high occupancy rates across its portfolio.
- Implement sustainable practices in property management and development.
- Provide exceptional service to tenants and stakeholders.
- Enhance shareholder value through prudent capital management.
Financial Overview
As of September 30, 2024, Alexander's reported the following key financial metrics:
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in thousands) | $6,678 | $10,754 | $31,167 | $86,127 |
| Net Income per Share (Basic and Diluted) | $1.30 | $2.10 | $6.07 | $16.79 |
| Funds from Operations (FFO) (in thousands) | $14,582 | $18,623 | $57,123 | $55,464 |
| FFO per Share | $2.84 | $3.63 | $11.13 | $10.81 |
| Rental Revenues (in thousands) | $55,675 | $55,413 | $170,464 | $162,027 |
| Operating Expenses (in thousands) | $26,446 | $25,593 | $76,700 | $75,355 |
| Cash and Cash Equivalents (in thousands) | $354,817 | $531,855 | $397,176 | $552,977 |
Occupancy and Leasing Activity
As of September 30, 2024, Alexander's portfolio consists of five properties totaling 2,456,000 square feet. The occupancy rates are as follows:
| Property Type | Occupancy Rate |
|---|---|
| Commercial | 92.1% |
| Residential | 96.5% |
Major Tenants
Bloomberg L.P. is a significant tenant, accounting for approximately 55% of rental revenue. The revenue generated from Bloomberg for the nine months ended September 30, 2024, was $93,179,000, compared to $89,863,000 in the same period of 2023.
Recent Developments
On May 3, 2024, Alexander's entered into a lease extension agreement with Bloomberg for approximately 947,000 square feet at the 731 Lexington Avenue property, extending the lease term to February 2040. This extension included a leasing commission of $32,000,000.
As of September 30, 2024, Alexander's had a liquidity position comprising cash and cash equivalents and restricted cash totaling $397,176,000, a decrease from $552,977,000 as of December 31, 2023, largely due to financing activities including $500,000,000 in debt repayments and $69,277,000 in dividends paid.
How Alexander's, Inc. (ALX) Works
Business Model
Alexander's, Inc. operates as a real estate investment trust (REIT) focused on leasing, managing, and developing properties primarily in New York City. The company manages five properties with a total square footage of approximately 2,456,000. As of September 30, 2024, the commercial occupancy rate was 92.1% and the residential occupancy rate was 96.5%.
Financial Performance Overview
For the three months ended September 30, 2024, Alexander's reported net income of $6,678,000, or $1.30 per diluted share, down from $10,754,000, or $2.10 per diluted share, in the same period of the previous year. For the nine months ended September 30, 2024, net income was $31,167,000, or $6.07 per diluted share, compared to $86,127,000, or $16.79 per diluted share, for the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income ($000) | 6,678 | 10,754 | 31,167 | 86,127 |
| Net Income per Share ($) | 1.30 | 2.10 | 6.07 | 16.79 |
| Funds from Operations (FFO) ($000) | 14,582 | 18,623 | 57,123 | 55,464 |
| FFO per Share ($) | 2.84 | 3.63 | 11.13 | 10.81 |
Revenue Sources
Rental revenues for the three months ended September 30, 2024, amounted to $55,675,000, compared to $55,413,000 for the same period in the previous year. For the nine months ended September 30, 2024, rental revenues were $170,464,000, up from $162,027,000 in 2023.
| Revenue Breakdown ($000) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Lease Revenues | 53,244 | 52,954 | 163,878 | 155,502 |
| Parking Revenue | 1,168 | 1,090 | 3,483 | 3,300 |
| Tenant Services | 1,263 | 1,369 | 3,103 | 3,225 |
| Total Rental Revenues | 55,675 | 55,413 | 170,464 | 162,027 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were $26,446,000, compared to $25,593,000 for the same period in 2023. For the nine months ended September 30, 2024, operating expenses totaled $76,700,000, versus $75,355,000 in 2023.
| Operating Expenses ($000) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Expenses | 26,446 | 25,593 | 76,700 | 75,355 | Depreciation and Amortization | 7,972 | 7,933 | 26,146 | 23,492 | General and Administrative Expenses | 1,423 | 1,580 | 5,058 | 4,845 |
Debt and Financing
As of September 30, 2024, Alexander's had total debt of $996,544,000, with a weighted average interest rate of 3.94%. The company has various mortgage loans, including a $400,000,000 loan with a fixed rate of 5.04% maturing in October 2028.
| Debt Summary ($000) | Balance | Interest Rate | Maturity Date |
|---|---|---|---|
| 731 Lexington Avenue, Office Condominium | 400,000 | 5.04% | Oct. 9, 2028 |
| 731 Lexington Avenue, Retail Condominium | 300,000 | 1.76% | Aug. 5, 2025 |
| Rego Park II Shopping Center | 202,544 | 5.60% | Dec. 12, 2025 |
| The Alexander Apartment Tower | 94,000 | 2.63% | Nov. 1, 2027 |
Liquidity Position
As of September 30, 2024, the company's liquidity comprised cash and cash equivalents totaling $397,176,000, a decrease from $552,977,000 at the end of 2023. This decrease resulted from net cash used in financing activities and investing activities.
| Liquidity Summary ($000) | As of Sept 30, 2024 | As of Dec 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | 397,176 | 552,977 |
| Net Cash Used in Financing Activities | (175,824) | (69,301) |
| Net Cash Used in Investing Activities | (3,273) | 319,537 |
| Net Cash Provided by Operating Activities | 23,296 | 64,367 |
How Alexander's, Inc. (ALX) Makes Money
Business Model Overview
Alexander's, Inc. operates as a real estate investment trust (REIT) focused on leasing, managing, developing, and redeveloping its properties. The company primarily generates revenue through rental income from its commercial and residential properties, along with other income streams such as parking and tenant services.
Revenue Streams
The primary source of revenue for Alexander's, Inc. is rental income. As of the nine months ended September 30, 2024, the total rental revenues amounted to $170,464,000, compared to $162,027,000 for the same period in 2023. This represents an increase of $8,437,000.
| Revenue Source | Q3 2024 Revenue ($) | Q3 2023 Revenue ($) | 9M 2024 Revenue ($) | 9M 2023 Revenue ($) |
|---|---|---|---|---|
| Lease Revenues | 53,244,000 | 52,954,000 | 163,878,000 | 155,502,000 |
| Parking Revenue | 1,168,000 | 1,090,000 | 3,483,000 | 3,300,000 |
| Tenant Services | 1,263,000 | 1,369,000 | 3,103,000 | 3,225,000 |
| Total Rental Revenues | 55,675,000 | 55,413,000 | 170,464,000 | 162,027,000 |
Significant Tenant Contributions
Bloomberg L.P. is a significant tenant, accounting for approximately 55% of total rental revenues. For the nine months ended September 30, 2024, Bloomberg contributed $93,179,000 in revenue, up from $89,863,000 in the same period in 2023.
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses amounted to $76,700,000, an increase from $75,355,000 in 2023. The increase was primarily attributed to higher real estate tax expenses.
Net Income and Funds from Operations (FFO)
Net income for the nine months ended September 30, 2024, was $31,167,000, or $6.07 per diluted share, compared to $86,127,000, or $16.79 per diluted share for the same period in 2023. The significant decline in net income was largely due to a prior year's gain from the sale of real estate.
Funds from operations (FFO) for the nine-month period in 2024 was $57,123,000, or $11.13 per diluted share, compared to $55,464,000, or $10.81 per diluted share in the previous year.
| Financial Metric | 9M 2024 ($) | 9M 2023 ($) |
|---|---|---|
| Net Income | 31,167,000 | 86,127,000 |
| FFO | 57,123,000 | 55,464,000 |
Debt and Financing Activities
As of September 30, 2024, the total debt stood at $996,544,000. Recent financing activities include a new $400,000,000 mortgage loan on the office condominium portion of 731 Lexington Avenue at a fixed rate of 5.04%, maturing in October 2028.
Cash Flow and Liquidity
The company reported net cash provided by operating activities of $23,296,000 for the nine months ended September 30, 2024. Cash and cash equivalents and restricted cash totaled $397,176,000 as of September 30, 2024.
| Cash Flow Type | 9M 2024 ($) | 9M 2023 ($) |
|---|---|---|
| Operating Activities | 23,296,000 | 64,367,000 |
| Investing Activities | (3,273,000) | 319,537,000 |
| Financing Activities | (175,824,000) | (69,301,000) |
Occupancy Rates
As of September 30, 2024, the commercial occupancy rate was 92.1%, while the residential occupancy rate was 96.5%.
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Resources:
- Alexander's, Inc. (ALX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alexander's, Inc. (ALX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alexander's, Inc. (ALX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.