Alexander’s, Inc. (NYSE: ALX), a real estate investment trust (REIT) based in Delaware, reported a net income of $28.2 million, or $5.50 per diluted share, for the fiscal year ending December 31, 2025. This marks a significant decrease from the previous year's net income of $43.4 million, or $8.46 per diluted share. The company's funds from operations (FFO) also declined to $63.0 million, or $12.27 per diluted share, down from $78.0 million, or $15.19 per diluted share in 2024. The decrease in both net income and FFO is attributed primarily to lower rental revenues, which fell to $213.2 million from $226.4 million in the prior year, largely due to the expiration of significant leases, including Home Depot's lease at 731 Lexington Avenue.
In terms of operational changes, Alexander's portfolio consists of five properties in New York City, totaling approximately 2.4 million square feet. The commercial occupancy rate was reported at 94.6%, while the residential occupancy rate stood at 97.7%. The company is currently exploring sale opportunities for its Rego Park I property, which became vacant following the relocation of tenants to Rego Park II. Notably, Bloomberg L.P. remains a critical tenant, accounting for approximately 61% of rental revenues, with revenues from Bloomberg increasing slightly to $129.3 million in 2025 from $125.3 million in 2024.
Strategically, Alexander's has made significant adjustments to its financing structure. In December 2025, the company completed a $175 million refinancing of the mortgage loan on its Rego Park II shopping center, with the new loan carrying an interest rate of SOFR plus 2.00%. Additionally, a restructuring of the $300 million mortgage loan on the retail condominium portion of 731 Lexington Avenue was executed, which included a split into senior and junior notes with varying interest rates. These financial maneuvers are part of the company's ongoing efforts to manage its debt effectively amid fluctuating market conditions.
The company reported a total mortgage payable of $836.7 million as of December 31, 2025, with a debt-to-enterprise value ratio of 46%. Cash and cash equivalents decreased to $192.2 million from $393.8 million in the previous year, primarily due to significant cash outflows related to debt repayments and dividends. Looking ahead, Alexander's anticipates that its cash flow from operations, along with existing cash balances, will be sufficient to meet its operational needs, including debt service and capital expenditures, although the company acknowledges the potential impact of rising interest rates and inflation on its financial performance.
In summary, Alexander's, Inc. is navigating a challenging fiscal environment characterized by declining revenues and strategic financial restructuring. The company remains focused on maintaining its operational stability while exploring opportunities for property sales and managing its significant tenant relationships, particularly with Bloomberg. The outlook for 2026 will depend on the broader economic conditions affecting the New York City real estate market and the company's ability to adapt to these changes.
About ALEXANDERS INC
Alexander's Inc. is a real estate investment trust (REIT) focused on leasing, managing, and developing properties in New York City. Key assets include the 731 Lexington Avenue office building and two shopping centers in Queens. With a strong partnership with Vornado Realty Trust, Alexander's targets a diverse tenant base, including Bloomberg, which generates significant revenue. The company emphasizes sustainability initiatives and is exploring redevelopment opportunities to enhance its portfolio.
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