Alexander's, Inc. Reports Decline in Revenue and Net Income for Q2 and First Half of 2025

Alexander’s, Inc. (NYSE: ALX) reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and net income compared to the same periods in 2024. For the three months ended June 30, 2025, the company recorded net income of $6.12 million, or $1.19 per diluted share, down from $8.38 million, or $1.63 per diluted share, in the prior year. For the six months, net income was $18.43 million, or $3.59 per diluted share, compared to $24.49 million, or $4.77 per diluted share, in 2024. Rental revenues also decreased, totaling $51.59 million for the quarter and $106.50 million for the half-year, reflecting declines of 3.4% and 7.2%, respectively.

The decrease in rental revenues was primarily attributed to the expiration of significant leases, including Home Depot's lease at the 731 Lexington Avenue property, which accounted for a loss of approximately $3.78 million in the second quarter. Additionally, the expiration of IKEA's lease at Rego Park I contributed to a $9 million decline in rental revenues for the first half of the year. Despite these losses, the company noted increases in recoveries of operating expenses and straight-line rental revenues from new tenants, which partially offset the declines.

Operationally, Alexander’s portfolio consists of five properties totaling 2.45 million square feet, with a commercial occupancy rate of 94.8% and a residential occupancy rate of 98.7% as of June 30, 2025. The company continues to rely heavily on its largest tenant, Bloomberg L.P., which accounted for approximately 61% of rental revenues in the first half of 2025. The company has extended Bloomberg's leases at 731 Lexington Avenue through 2040, which is expected to stabilize future revenues.

In terms of financial management, Alexander’s reported a decrease in cash and cash equivalents to $313.04 million as of June 30, 2025, down from $338.53 million at the end of 2024. The company experienced net cash used in financing activities of $48.19 million, primarily due to dividend payments totaling $46.20 million. The company’s total liabilities increased slightly to $1.18 billion, with mortgages payable remaining stable at approximately $987.62 million.

Looking ahead, Alexander’s management expressed cautious optimism regarding future performance, emphasizing the importance of maintaining occupancy rates and managing operational costs effectively. The company plans to explore development opportunities for its vacant properties, particularly Rego Park I, while continuing to monitor market conditions and tenant performance closely. The ongoing challenges posed by interest rate fluctuations and inflation remain a concern, but management believes that cash flow from operations will be sufficient to meet upcoming obligations.