Alexander's, Inc. Reports Decline in Net Income and Rental Revenues for Q3 2025

Alexander's, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a decline in both net income and rental revenues compared to the same periods in 2024. For the three months ended September 30, 2025, the company recorded a net income of $5.968 million, or $1.16 per diluted share, down from $6.678 million, or $1.30 per diluted share, in the prior year. For the nine-month period, net income was $24.4 million, or $4.75 per diluted share, compared to $31.167 million, or $6.07 per diluted share, in 2024. Rental revenues also decreased, totaling $53.424 million for the third quarter and $159.928 million for the nine months, reflecting declines of 4% and 6% respectively.

The decrease in rental revenues was primarily attributed to the expiration of Home Depot's lease at the 731 Lexington Avenue property, which accounted for a loss of approximately $3.774 million in the third quarter alone. Additionally, the company experienced lower rental income from IKEA's lease expiration at Rego Park I. However, this was partially offset by increased revenues from new leases at Rego Park II and recoveries of operating expenses. Operating expenses rose slightly to $26.693 million for the third quarter, while depreciation and amortization expenses increased to $9.018 million, reflecting higher costs associated with new leases.

In terms of strategic developments, Alexander's continues to manage its properties under the guidance of Vornado Realty Trust, which owns 32.4% of the company. The firm has been actively negotiating lease extensions, including a significant eleven-year extension with Bloomberg L.P. for approximately 947,000 square feet at 731 Lexington Avenue, which is crucial as Bloomberg accounted for about 60% of the company's rental revenues in the first nine months of 2025. The company is also exploring sale opportunities for its Rego Park I property, which is currently vacant following the expiration of its leases.

As of September 30, 2025, Alexander's reported a commercial occupancy rate of 94.9% and a residential occupancy rate of 97.1%. The company’s total assets were valued at $1.296 billion, with total liabilities of $1.168 billion, resulting in total equity of $128.326 million. The firm had cash and cash equivalents of $286.142 million, down from $338.532 million at the end of 2024, reflecting cash used in financing and investing activities.

Looking ahead, Alexander's management expressed cautious optimism regarding its financial outlook, emphasizing the importance of maintaining liquidity amid fluctuating interest rates and inflationary pressures. The company anticipates that its cash flow from operations, combined with existing cash reserves, will be sufficient to meet its operational needs, including debt service and dividends to shareholders. However, the firm acknowledged the potential challenges in refinancing maturing debt and securing favorable financing terms in the current economic climate.