Alexander’s Inc. Reports Decline in Quarterly Earnings

Alexander’s Inc ( (ALX) ) has released its Q2 earnings. Here is a breakdown of the information Alexander’s Inc presented to its investors.

Alexander’s Inc., a real estate investment trust (REIT) based in Delaware, specializes in leasing, managing, developing, and redeveloping properties, primarily in New York City. The company is managed by Vornado Realty Trust and owns five properties in the city.

In its recent earnings report for the quarter ending June 30, 2025, Alexander’s Inc. reported a decrease in net income to $6.12 million, or $1.19 per diluted share, compared to $8.38 million, or $1.63 per diluted share, in the same period last year. The company also noted a decline in funds from operations (FFO), a key performance metric for REITs, to $14.76 million, or $2.88 per diluted share, from $17.01 million, or $3.31 per diluted share, year-over-year.

Key financial highlights include a decrease in rental revenues to $51.59 million from $53.39 million due to the expiration of Home Depot’s lease at 731 Lexington Avenue. Operating expenses increased slightly, while interest and other income saw a significant drop due to lower average interest rates and investment balances. The company’s interest and debt expenses decreased, benefiting from lower interest rate cap premium amortization and reduced debt levels.

Looking ahead, Alexander’s Inc. faces challenges such as refinancing existing debt and maintaining occupancy levels amidst economic uncertainties. However, the company’s management remains focused on exploring sale and development opportunities, particularly for its Rego Park I property, which will soon be vacant.

Overall, Alexander’s Inc. continues to navigate a competitive real estate market, with its performance closely tied to economic trends and the financial health of its major tenant, Bloomberg L.P., which accounts for a significant portion of its rental revenues.