Part I [Business](index=5&type=section&id=Item%201.%20Business) Alexander's, Inc. is a REIT managing seven NYC metropolitan area properties, externally managed by Vornado Realty Trust, with Bloomberg L.P. contributing approximately **55%** of 2020 revenues - The company's portfolio consists of seven properties in the greater New York City metropolitan area, including six operating properties and one property to be developed[11](index=11&type=chunk)[12](index=12&type=chunk) - Alexander's is managed, leased, and developed by Vornado Realty Trust, which owned **32.4%** of the company's common stock as of December 31, 2020. Key executives of Alexander's also hold senior positions at Vornado[13](index=13&type=chunk)[14](index=14&type=chunk) Significant Tenant Revenue Contribution (Bloomberg L.P.) | Year | Revenue (in thousands) | Percentage of Total Revenue | | :--- | :--- | :--- | | 2020 | $109,066 | ~55% | | 2019 | $109,113 | ~48% | | 2018 | $107,356 | ~46% | - The company is considered a "controlled" company under NYSE Rules due to the combined ownership of Vornado and Interstate Properties, which exempts it from certain corporate governance requirements like having a majority of independent directors[20](index=20&type=chunk) [Risk Factors](index=7&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from COVID-19 impacts, NYC geographic concentration, single-tenant reliance, substantial debt, and Vornado-related conflicts of interest [Risks Related to Our Properties and Industry](index=7&type=section&id=Risks%20Related%20to%20Our%20Properties%20and%20Industry) COVID-19, NYC geographic concentration, and significant revenue reliance on 731 Lexington Avenue and Bloomberg L.P. pose material property and industry risks - The COVID-19 pandemic has adversely affected the business, leading to temporary closures of "non-essential" retail tenants and agreements for rent deferrals and abatements[23](index=23&type=chunk) - On September 10, 2020, tenant Century 21, which leased **135,000 square feet** at the Rego Park II shopping center, filed for Chapter 11 bankruptcy and closed its store[24](index=24&type=chunk)[39](index=39&type=chunk) - All company properties are located in the greater New York City metropolitan area, making the business highly susceptible to local economic cycles and risks[27](index=27&type=chunk)[28](index=28&type=chunk) Revenue Concentration by Property and Tenant | Entity | Revenue Contribution (2020, in thousands) | Percentage of Total Revenue (2020) | | :--- | :--- | :--- | | 731 Lexington Avenue | $137,718 | ~69% | | Bloomberg L.P. | $109,066 | ~55% | [Risks Related to Our Indebtedness and Access to Capital](index=12&type=section&id=Risks%20Related%20to%20Our%20Indebtedness%20and%20Access%20to%20Capital) Substantial mortgage indebtedness of **$1.16 billion** as of year-end 2020, secured by four properties, restricts flexibility and poses refinancing and cash flow risks - As of December 31, 2020, the company had outstanding mortgage indebtedness of **$1.16 billion**, secured by four of its properties, which contains restrictive covenants[51](index=51&type=chunk) - The company's ratio of total debt to total enterprise value was **54.1%** as of December 31, 2020. Cash payments for principal and interest were **$72.5 million** for the year[53](index=53&type=chunk) [Risks Related to Our Organization and Structure](index=12&type=section&id=Risks%20Related%20to%20Our%20Organization%20and%20Structure) Dependence on CEO Steven Roth, substantial influence from Vornado and Interstate (**58.5%** ownership), and charter provisions create organizational risks and potential conflicts of interest - The company is dependent on the efforts of its CEO, Steven Roth, and the loss of his services could harm operations[54](index=54&type=chunk) - Vornado, Interstate, and its partners collectively own approximately **58.5%** of the company's outstanding common stock, giving them substantial influence over the company and potentially creating conflicts of interest[58](index=58&type=chunk)[63](index=63&type=chunk) - The company's charter includes provisions that may delay or prevent a change in control, such as a classified board of directors and limits on stock ownership[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) [General Risks](index=18&type=section&id=General%20Risks) General risks include cybersecurity threats, economic volatility, potential underinsured losses (e.g., terrorism), and the financial impact of the upcoming LIBOR phase-out - The company faces risks from security breaches and cyber attacks, which could disrupt operations, compromise confidential information, and negatively impact financial results[81](index=81&type=chunk)[82](index=82&type=chunk) - The company maintains all-risk property insurance of **$1.7 billion** per occurrence, including terrorism coverage. A wholly-owned subsidiary, FNSIC, acts as a direct insurer for certain terrorism acts under the Terrorism Risk Insurance Act[86](index=86&type=chunk)[87](index=87&type=chunk) - The planned phase-out of LIBOR after 2021 presents a risk, as the company has outstanding variable-rate debt based on LIBOR. The transition to an alternative rate like SOFR could change interest payments[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [Unresolved Staff Comments](index=20&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) No unresolved comments from the Securities and Exchange Commission staff as of the Annual Report date - There are no unresolved comments from the SEC staff as of the filing date of this Form 10-K[93](index=93&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) The company's portfolio comprises seven properties in the greater NYC metropolitan area, including office, retail, and residential assets, with detailed information on each Summary of Properties (as of December 31, 2020) | Property | Type | Total Sq. Ft. | Occupancy Rate | Key Tenants/Info | | :--- | :--- | :--- | :--- | :--- | | 731 Lexington Ave | Office/Retail | 1,075,000 | 100% (Office), 93% (Retail) | Bloomberg L.P., The Home Depot | | Rego Park I | Retail | 338,000 | 100% (in service) | IKEA, Burlington, Bed Bath & Beyond | | Rego Park II | Retail | 609,000 | 96% | Costco, Kohl's (subleased) | | The Alexander | Residential | 255,000 (312 units) | 82% | Residential tenants | | Paramus, NJ | Land (Ground Lease) | 30.3 acres | 100% | IKEA (ground lessee) | | Flushing, NY | Retail (Sub-lease) | 167,000 | 100% | New World Mall LLC | | Rego Park III | Land for Development | 3.2 acres | N/A | To be developed | - The 731 Lexington Avenue property is encumbered by two separate mortgage loans: a **$500 million** loan on the office portion maturing in June 2021 (with extensions) and a **$300 million** loan on the retail portion maturing in August 2025[98](index=98&type=chunk)[99](index=99&type=chunk) - The Paramus, NJ property is ground leased to IKEA until 2041, with a purchase option for IKEA in October 2021 for **$75 million**. If exercised, it would result in a gain on sale of approximately **$60 million**[104](index=104&type=chunk) [Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) The company faces ordinary course legal actions, including a stayed Sears lawsuit for approximately **$650,000** in property damages at Rego Park I - In June 2014, Sears filed a lawsuit regarding its former lease at the Rego Park I property. The remaining claim is for property damages estimated at approximately **$650,000**. The case is currently stayed due to Sears' bankruptcy filing in October 2018[109](index=109&type=chunk) [Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[110](index=110&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ALX common stock is listed on the NYSE, with a **$100** investment in 2015 yielding **$92** by 2020, underperforming key market indices - The company's common stock is traded on the New York Stock Exchange under the symbol "ALX"[111](index=111&type=chunk) Five-Year Cumulative Return Comparison (2015-2020) | Index | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Alexander's | $100 | $116 | $112 | $90 | $103 | $92 | | S&P 500 Index | $100 | $112 | $136 | $130 | $171 | $203 | | NAREIT All Equity Index | $100 | $109 | $118 | $113 | $146 | $138 | [Selected Financial Data](index=27&type=section&id=Item%206.%20Selected%20Financial%20Data) This section is omitted due to the early adoption of SEC amendments eliminating the Selected Financial Data requirement - The company has omitted this section due to the early adoption of SEC Final Rule Release No. 33-10890, which eliminates the requirement for Selected Financial Data[116](index=116&type=chunk)[120](index=120&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) COVID-19 significantly impacted 2020 financial performance, decreasing rental revenues and FFO, despite **95%** Q4 rent collection and **$455.9 million** year-end liquidity [Overview](index=28&type=section&id=Overview) COVID-19 adversely affected retail tenants, leading to decreased Net Income and FFO in 2020, despite **95%** Q4 rent collection and significant financing activities - The company collected approximately **95%** of rent billed for Q4 2020 (**96%** including deferrals). This includes **100%** from its office tenant, **90%** from retail tenants, and **98%** from residential tenants[122](index=122&type=chunk) - Due to tenant credit issues, the company wrote off **$4.1 million** in tenant receivables and **$10.8 million** in straight-line rent receivables during 2020, reducing rental revenues. A significant portion of these write-offs was attributable to Century 21[123](index=123&type=chunk) Financial Results Summary (FY 2020 vs. FY 2019) | Metric | 2020 (in thousands) | 2019 (in thousands) | | :--- | :--- | :--- | | Net Income | $41,939 | $60,075 | | Diluted EPS (per share) | $8.19 | $11.74 | | FFO (non-GAAP) | $82,509 | $99,670 | | FFO per Diluted Share | $16.11 | $19.47 | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Rental revenues decreased by **$27.2 million** in 2020 (due to write-offs and vacancies) and **$6.5 million** in 2019 (Sears vacancy), while interest expense decreased due to lower LIBOR Comparison of Operations (2020 vs. 2019) | Account | 2020 (in thousands) | 2019 (in thousands) | Change (in thousands) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Rental Revenues | $199,142 | $226,350 | ($27,208) | Write-offs of straight-line rent, uncollectible retail rents, and retail vacancies. | | Operating Expenses | $88,403 | $89,738 | ($1,335) | Lower recoverable operating expenses. | | Interest and Debt Expense | $24,204 | $38,901 | ($14,697) | Decrease in LIBOR. | Comparison of Operations (2019 vs. 2018) | Account | 2019 (in thousands) | 2018 (in thousands) | Change (in thousands) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Rental Revenues | $226,350 | $232,825 | ($6,475) | Sears vacancy at Rego Park I property. | | Operating Expenses | $89,738 | $93,775 | ($4,037) | Lower bad debt expense compared to 2018 (Sears bankruptcy). | | Interest and Debt Expense | $38,901 | $44,533 | ($5,632) | Refinancing of Rego Park II shopping center loan. | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity of **$455.9 million** at year-end 2020, with **$1.16 billion** in total debt, and completed significant financing activities including a new **$94 million** loan for The Alexander - As of December 31, 2020, the company had **$455.9 million** of liquidity, comprised of **$449.9 million** in cash and restricted cash, and **$6.0 million** in marketable securities[154](index=154&type=chunk) - In 2020, the company paid down its 731 Lexington Avenue retail loan by **$50 million** to **$300 million** and extended the maturity to 2025. It also completed a new **$94 million** financing for The Alexander apartment tower at a fixed rate of 2.63%[126](index=126&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) Outstanding Debt Summary (as of December 31, 2020) | Property | Balance (in thousands) | Interest Rate | Maturity | | :--- | :--- | :--- | :--- | | Paramus | $68,000 | 4.72% | Oct. 2021 | | 731 Lexington Ave, office | $500,000 | 1.06% | Jun. 2024 | | 731 Lexington Ave, retail | $300,000 | 1.55% | Aug. 2025 | | Rego Park II | $202,544 | 1.50% | Dec. 2025 | | The Alexander tower | $94,000 | 2.63% | Nov. 2027 | | **Total** | **$1,164,544** | | | [Funds from Operations (FFO) (non-GAAP)](index=38&type=section&id=Funds%20from%20Operations%20%28FFO%29%20%28non-GAAP%29) Full-year FFO (non-GAAP) decreased to **$82.5 million** (**$16.11** per share) in 2020 from **$99.7 million** in 2019, though Q4 2020 FFO slightly increased Reconciliation of Net Income to FFO (non-GAAP) | (in thousands) | For the Year Ended Dec 31, 2020 | For the Year Ended Dec 31, 2019 | For the Qtr Ended Dec 31, 2020 | For the Qtr Ended Dec 31, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net income | $41,939 | $60,075 | $18,432 | $14,434 | | Depreciation and amortization | $31,971 | $30,838 | $9,165 | $7,692 | | Change in fair value of marketable securities | $8,599 | $8,757 | ($2,190) | $2,500 | | **FFO (non-GAAP)** | **$82,509** | **$99,670** | **$25,407** | **$24,626** | [Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk from **$1.0 billion** in variable-rate debt, with a **1%** rate increase potentially adding **$10.0 million** in annual interest expense, partially mitigated by derivatives Interest Rate Sensitivity (as of December 31, 2020) | Debt Type | Balance (in thousands) | Weighted Avg. Interest Rate | Effect of 1% Change in Base Rates (in thousands) | | :--- | :--- | :--- | :--- | | Variable rate | $1,002,544 | 1.30% | $10,025 | | Fixed rate | $162,000 | 3.51% | $0 | | **Total** | **$1,164,544** | **1.60%** | **$10,025** | - The company utilizes derivatives to manage interest rate risk, including an interest rate cap with a notional amount of **$500 million** that caps LIBOR at 6.0%, and an interest rate swap with a notional amount of **$300 million** that fixes the rate at 1.72%[183](index=183&type=chunk)[184](index=184&type=chunk) [Financial Statements and Supplementary Data](index=40&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for FY2020, including balance sheets, income statements, and cash flow statements, along with the independent auditor's report Consolidated Balance Sheet Summary | (in thousands) | Dec 31, 2020 (in thousands) | Dec 31, 2019 (in thousands) | | :--- | :--- | :--- | | Total Real estate, net | $720,921 | $716,843 | | Cash and cash equivalents | $428,710 | $298,063 | | **Total Assets** | **$1,404,138** | **$1,265,511** | | Mortgages payable, net | $1,156,170 | $970,961 | | **Total Liabilities** | **$1,200,910** | **$1,011,996** | | **Total Equity** | **$203,228** | **$253,515** | Consolidated Statement of Income Summary | (in thousands) | 2020 (in thousands) | 2019 (in thousands) | 2018 (in thousands) | | :--- | :--- | :--- | :--- | | Rental Revenues | $199,142 | $226,350 | $232,825 | | Total Expenses | ($127,067) | ($126,861) | ($132,207) | | **Net Income** | **$41,939** | **$60,075** | **$32,844** | | **Diluted EPS** | **$8.19** | **$11.74** | **$6.42** | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=61&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) No changes in or disagreements with accountants on accounting and financial disclosure were reported - None reported[296](index=296&type=chunk) [Controls and Procedures](index=61&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and independent auditors concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2020, with no material changes in Q4 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[297](index=297&type=chunk) - Management's assessment, based on the COSO framework, determined that the company's internal control over financial reporting was effective as of December 31, 2020. This assessment was audited by Deloitte & Touche LLP, which issued an unqualified opinion[301](index=301&type=chunk)[303](index=303&type=chunk)[306](index=306&type=chunk) [Other Information](index=64&type=section&id=Item%209B.%20Other%20Information) No other information is reported under this item - None[312](index=312&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=64&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors and corporate governance is incorporated by reference from the Proxy Statement, identifying Steven Roth (CEO) and Matthew Iocco (CFO) who also hold Vornado roles - Most information for this section is incorporated by reference from the forthcoming Proxy Statement[313](index=313&type=chunk) Executive Officers | Name | Age | Position | | :--- | :--- | :--- | | Steven Roth | 79 | Chairman of the Board and Chief Executive Officer | | Matthew Iocco | 50 | Chief Financial Officer | [Executive Compensation](index=65&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the definitive Proxy Statement - Information is incorporated by reference from the Proxy Statement[317](index=317&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=65&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the Proxy Statement, detailing **14,916** securities for exercise and **490,871** available for future issuance Equity Compensation Plan Information (as of Dec 31, 2020) | Plan Category | Securities to be Issued Upon Exercise | Securities Remaining Available for Future Issuance | | :--- | :--- | :--- | | Approved by security holders | 14,916 | 490,871 | [Certain Relationships and Related Transactions, and Director Independence](index=65&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the Proxy Statement - Information is incorporated by reference from the Proxy Statement[320](index=320&type=chunk) [Principal Accounting Fees and Services](index=65&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the definitive Proxy Statement - Information is incorporated by reference from the Proxy Statement[321](index=321&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=66&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists Form 10-K exhibits, including consolidated financial statements, Schedule III, and various governance, management, and financing agreements, many with Vornado Realty Trust - The filing includes Financial Statement Schedule III – Real Estate and Accumulated Depreciation[324](index=324&type=chunk) - Exhibits filed include governance documents, descriptions of securities, and numerous material contracts such as management and leasing agreements with Vornado Realty Trust and loan agreements for major properties[332](index=332&type=chunk) [Form 10-K Summary](index=75&type=section&id=Item%2016.%20Form%2010-K%20Summary) No summary is provided under this item - None[349](index=349&type=chunk)

Alexander's, Inc. (NYSE:ALX) Q3 2020 Earnings Conference Call November 4, 2020 10:00 AM ET Company Participants Cathy Creswell – Director of Investor Relations Steven Roth – Chairman and Chief Executive Officer Michael Franco – President Haim Chera – Executive Vice President and Head of Retail Glen Weiss – Executive Vice President Office Leasing and Co-Head of Real Estate Joseph Macnow – Executive Vice President, Chief Financial Officer and Chief Administrative Officer Conference Call Participants Manny Kor ...

[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements show a significant decline in net income and rental revenues due to the COVID-19 pandemic [Consolidated Balance Sheets (Unaudited)](index=4&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) Consolidated Balance Sheet Highlights (Amounts in thousands) | Metric | September 30, 2020 | December 31, 2019 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $1,327,905 | $1,265,511 | +$62,394 | | Cash and cash equivalents | $355,712 | $298,063 | +$57,649 | | Mortgages payable, net | $1,066,403 | $970,961 | +$95,442 | | Total Equity | $208,511 | $253,515 | -$45,004 | [Consolidated Statements of Income (Unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) Consolidated Statements of Income (Amounts in thousands, except per share) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Change | | :--- | :--- | :--- | :--- | | Rental revenues | $43,499 | $57,760 | -$14,261 | | Net income | $6,604 | $16,493 | -$9,889 | | Net income per common share - basic and diluted | $1.29 | $3.22 | -$1.93 | | **Metric** | **Nine Months Ended Sep 30, 2020** | **Nine Months Ended Sep 30, 2019** | **Change** | | Rental revenues | $143,087 | $170,470 | -$27,383 | | Net income | $23,507 | $45,641 | -$22,134 | | Net income per common share - basic and diluted | $4.59 | $8.92 | -$4.33 | [Consolidated Statements of Comprehensive Income (Unaudited)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Consolidated Statements of Comprehensive Income (Amounts in thousands) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Change | | :--- | :--- | :--- | :--- | | Net income | $6,604 | $16,493 | -$9,889 | | Change in fair value of interest rate cap | -$14 | $22 | -$36 | | Comprehensive income | $6,590 | $16,515 | -$9,925 | | **Metric** | **Nine Months Ended Sep 30, 2020** | **Nine Months Ended Sep 30, 2019** | **Change** | | Net income | $23,507 | $45,641 | -$22,134 | | Change in fair value of interest rate cap | $7 | $54 | -$47 | | Comprehensive income | $23,514 | $45,695 | -$22,181 | [Consolidated Statements of Changes in Equity (Unaudited)](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity%20(Unaudited)) Consolidated Statements of Changes in Equity (Nine Months Ended Sep 30, 2020, Amounts in thousands) | Metric | December 31, 2019 | September 30, 2020 | | :--- | :--- | :--- | | Balance, Total Equity | $253,515 | $208,511 | | Net income | $23,507 | $23,507 | | Dividends paid | -$69,118 | -$69,118 | | Deferred stock unit grants | $600 | $600 | | Change in fair value of interest rate cap | $7 | $7 | [Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Consolidated Statements of Cash Flows (Nine Months Ended Sep 30, Amounts in thousands) | Metric | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $55,521 | $99,953 | -$44,432 | | Net cash used in investing activities | -$23,630 | -$6,566 | -$17,064 | | Net cash provided by (used in) financing activities | $23,910 | -$69,105 | +$93,015 | | Net increase in cash and cash equivalents and restricted cash | $55,801 | $24,282 | +$31,519 | | Cash and cash equivalents and restricted cash at end of period | $369,778 | $313,777 | +$56,001 | - Net cash provided by financing activities in 2020 was primarily driven by **$145,708,000 in proceeds from borrowing**, partially offset by $69,118,000 in dividends paid and $50,000,000 in debt repayments[16](index=16&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) [1. Organization](index=9&type=section&id=1.%20Organization) - Alexander's, Inc is a real estate investment trust (REIT) incorporated in Delaware, engaged in leasing, managing, developing, and redeveloping properties[18](index=18&type=chunk) - The company is managed by **Vornado Realty Trust** and owns seven properties in the greater New York City metropolitan area[18](index=18&type=chunk) [2. COVID-19 Pandemic](index=9&type=section&id=2.%20COVID-19%20Pandemic) - The COVID-19 pandemic adversely affected the business, leading to temporary closures for non-essential retail tenants and agreements for **rent deferrals and abatements**[19](index=19&type=chunk)[20](index=20&type=chunk) Rent Collection Rates for Q3 2020 | Tenant Type | Collection Rate (including deferrals) | | :--- | :--- | | Office | 100% | | Retail | 89% | | Residential | 97% | | Overall | 96% | - **Century 21**, a tenant leasing 135,000 square feet at Rego Park II shopping center ($6.4 million annual revenue), filed for **Chapter 11 bankruptcy** on September 10, 2020[22](index=22&type=chunk) Rent Write-offs (Amounts in thousands) | Type of Write-off | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Uncollectible tenant receivables | $3,100 (Century 21: $2,716) | $4,122 (Century 21: $2,716) | | Straight-lining of rents receivables | $6,590 (Century 21: $5,919) | $10,837 (Century 21: $5,919) | [3. Basis of Presentation](index=9&type=section&id=3.%20Basis%20of%20Presentation) - The consolidated financial statements are unaudited and prepared in accordance with SEC Form 10-Q instructions, with all intercompany amounts eliminated[24](index=24&type=chunk) - The company operates in **one reportable segment**[26](index=26&type=chunk) [4. Recently Issued Accounting Literature](index=10&type=section&id=4.%20Recently%20Issued%20Accounting%20Literature) - The company is evaluating ASU 2020-04 (Reference Rate Reform) for its potential impact[27](index=27&type=chunk) - A policy election was made under FASB Staff Q&A for COVID-19 related rent concessions, allowing rent abatements to be recognized as reductions to rental revenue[28](index=28&type=chunk) [5. Revenue Recognition](index=10&type=section&id=5.%20Revenue%20Recognition) - Rental revenues include lease revenues (recognized straight-line), parking revenue, and tenant services[29](index=29&type=chunk)[30](index=30&type=chunk) Summary of Revenue Sources (Amounts in thousands) | Revenue Type | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Lease revenues | $41,394 | $55,267 | $137,479 | $163,597 | | Parking revenue | $1,106 | $1,366 | $3,046 | $4,222 | | Tenant services | $999 | $1,127 | $2,562 | $2,651 | | **Total Rental Revenues** | **$43,499** | **$57,760** | **$143,087** | **$170,470** | Components of Lease Revenues (Amounts in thousands) | Lease Type | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Fixed lease revenues | $33,609 | $36,025 | $101,348 | $107,657 | | Variable lease revenues | $7,785 | $19,242 | $36,131 | $55,940 | | **Total Lease Revenues** | **$41,394** | **$55,267** | **$137,479** | **$163,597** | - **Bloomberg** accounted for approximately **56% ($80,696,000) of total revenues** for the nine months ended September 30, 2020, making it a significant tenant[34](index=34&type=chunk) [6. Related Party Transactions](index=11&type=section&id=6.%20Related%20Party%20Transactions) - **Vornado Realty Trust**, which owns **32.4%** of the company's common stock, manages the company and its properties[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) Fees Paid to Vornado (Amounts in thousands) | Fee Type | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Company management fees | $700 | $700 | $2,100 | $2,100 | | Development fees | $188 | $0 | $456 | $0 | | Leasing fees | $113 | $1,422 | $172 | $4,000+ (partial data) | | Property management, cleaning, engineering, security fees | $1,074 | $1,239 | $3,519 | $3,000+ (partial data) | | **Total** | **$2,075** | **$3,361** | **$6,247** | **$9,000+ (partial data)** | - Amounts due to Vornado as of September 30, 2020, totaled **$1,178,000**[41](index=41&type=chunk) [7. Marketable Securities](index=12&type=section&id=7.%20Marketable%20Securities) - The company owned **564,612 common shares** of The Macerich Company (MAC) as of September 30, 2020[42](index=42&type=chunk) Fair Value of Marketable Securities (Amounts in thousands) | Date | Fair Value | | :--- | :--- | | September 30, 2020 | $3,834 | | December 31, 2019 | $14,409 | *The decrease is primarily due to Macerich's share price declining from $26.92 to $6.79 per share* [8. Mortgages Payable](index=12&type=section&id=8.%20Mortgages%20Payable) - In February 2020, the company reduced its participation in the Rego Park II shopping center loan to **$50,000,000**, receiving approximately **$145,000,000 in cash proceeds**[43](index=43&type=chunk) - In September 2020, the **$350,000,000 mortgage loan** on the 731 Lexington Avenue retail condominium was amended and extended, with a **$50,000,000 paydown**[44](index=44&type=chunk) - In October 2020, a **$94,000,000 interest-only loan** with a fixed rate of **2.63%** was completed for The Alexander apartment tower[45](index=45&type=chunk) Summary of Outstanding Mortgages Payable (September 30, 2020, Amounts in thousands) | Property | Maturity | Interest Rate | Balance | | :--- | :--- | :--- | :--- | | Paramus | Oct. 04, 2021 | 4.72% | $68,000 | | 731 Lexington Avenue, office | Jun. 11, 2024 | 1.05% | $500,000 | | 731 Lexington Avenue, retail | Aug. 05, 2025 | 1.56% | $300,000 | | Rego Park II shopping center | Dec. 12, 2025 | 1.50% | $202,544 | | **Total** | | | **$1,070,544** | [9. Stock-Based Compensation](index=13&type=section&id=9.%20Stock-Based%20Compensation) - In May 2020, the company granted **Deferred Stock Units (DSUs)** to Board members and a newly appointed Director[48](index=48&type=chunk) - These DSUs **vested immediately** and were expensed on the grant date[48](index=48&type=chunk) - As of September 30, 2020, there were **14,916 DSUs outstanding**[48](index=48&type=chunk) [10. Fair Value Measurements](index=13&type=section&id=10.%20Fair%20Value%20Measurements) - The company uses a fair value hierarchy (Level 1, 2, 3) to measure financial assets and liabilities[49](index=49&type=chunk) Financial Assets Measured at Fair Value (Amounts in thousands) | Asset | September 30, 2020 (Total) | September 30, 2020 (Level 1) | | :--- | :--- | :--- | | Marketable securities | $3,834 | $3,834 | | **Asset** | **December 31, 2019 (Total)** | **December 31, 2019 (Level 1)** | | Marketable securities | $14,409 | $14,409 | - Cash equivalents are classified as **Level 1**, and mortgages payable are classified as **Level 2**[53](index=53&type=chunk) Financial Assets and Liabilities Not Measured at Fair Value (Amounts in thousands) | Instrument | September 30, 2020 (Carrying Amount) | September 30, 2020 (Fair Value) | | :--- | :--- | :--- | | Cash equivalents | $318,260 | $318,260 | | Mortgages payable (excluding deferred debt issuance costs, net) | $1,070,544 | $1,032,000 | | **Instrument** | **December 31, 2019 (Carrying Amount)** | **December 31, 2019 (Fair Value)** | | Cash equivalents | $263,688 | $263,688 | | Mortgages payable (excluding deferred debt issuance costs, net) | $974,836 | $974,000 | [11. Commitments and Contingencies](index=14&type=section&id=11.%20Commitments%20and%20Contingencies) - The company maintains general liability insurance (**$300M per occurrence**) and all-risk property and rental value insurance (**$1.7B per occurrence**)[55](index=55&type=chunk) - Fifty Ninth Street Insurance Company, LLC (FNSIC), a wholly-owned subsidiary, acts as a direct insurer for NBCR acts of terrorism[56](index=56&type=chunk) - IKEA Property, Inc has a purchase option for **$75,000,000** on the Paramus land in October 2021, with an expected **$60,000,000 gain on sale** if exercised[59](index=59&type=chunk) - The Rego Park I litigation with Sears Roebuck and Co has a remaining claim for property damages estimated at **$650,000**[60](index=60&type=chunk) - The company paid **$23,797,000** in April 2018 related to the Kings Plaza sale, following an unfavorable legal precedent[61](index=61&type=chunk) [12. Earnings Per Share](index=15&type=section&id=12.%20Earnings%20Per%20Share) Net Income Per Common Share (Amounts in thousands, except per share) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net income | $6,604 | $16,493 | $23,507 | $45,641 | | Weighted average shares outstanding | 5,122,206 | 5,118,698 | 5,120,490 | 5,118,030 | | Net income per common share – basic and diluted | $1.29 | $3.22 | $4.59 | $8.92 | [Report of Independent Registered Public Accounting Firm](index=16&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) - Deloitte & Touche LLP reviewed the interim financial information and found **no material modifications necessary** for conformity with GAAP[67](index=67&type=chunk) - The consolidated balance sheet as of December 31, 2019, was **fairly stated in all material respects**, as per their unqualified opinion[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The COVID-19 pandemic significantly impacted rental revenues, net income, and FFO, though the company maintains high occupancy and liquidity [Forward-Looking Statements](index=17&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements subject to risks, with the **COVID-19 pandemic** being a significant factor affecting future results[72](index=72&type=chunk)[73](index=73&type=chunk) - Readers are cautioned not to place undue reliance on these statements[74](index=74&type=chunk) [Critical Accounting Policies](index=17&type=section&id=Critical%20Accounting%20Policies) - There were **no material changes** to the company's critical accounting policies for the nine months ended September 30, 2020[76](index=76&type=chunk) [Overview](index=18&type=section&id=Overview) - Alexander's, Inc is a REIT managed by Vornado Realty Trust, operating seven properties in the greater New York City metropolitan area[78](index=78&type=chunk) - The COVID-19 pandemic has adversely affected the business, leading to challenges in rent collection[80](index=80&type=chunk)[81](index=81&type=chunk) Key Financial Results Summary (Amounts in thousands, except per share) | Metric | Q3 2020 | Q3 2019 | Change | | :--- | :--- | :--- | :--- | | Net income | $6,604 | $16,493 | -$9,889 | | Net income per diluted share | $1.29 | $3.22 | -$1.93 | | FFO (non-GAAP) | $15,363 | $25,208 | -$9,845 | | FFO per diluted share | $3.00 | $4.92 | -$1.92 | | **Metric** | **Nine Months Ended Sep 30, 2020** | **Nine Months Ended Sep 30, 2019** | **Change** | | Net income | $23,507 | $45,641 | -$22,134 | | Net income per diluted share | $4.59 | $8.92 | -$4.33 | | FFO (non-GAAP) | $57,102 | $75,044 | -$17,942 | | FFO per diluted share | $11.15 | $14.66 | -$3.51 | - As of September 30, 2020, the portfolio comprised 2,449,000 square feet with **96% occupancy**[87](index=87&type=chunk) - Significant financing activities included reducing loan participation by **$145,000,000** and paying down **$50,000,000** on another loan[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - **Bloomberg** remains a significant tenant, accounting for approximately **56% of total revenues**[91](index=91&type=chunk) [Results of Operations – Three Months Ended September 30, 2020, compared to September 30, 2019](index=20&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20Months%20Ended%20September%2030%2C%202020%2C%20compared%20to%20September%2030%2C%202019) - Rental revenues **decreased by $14,261,000**, primarily due to **$6,590,000 in straight-line rent write-offs** related to Century 21[93](index=93&type=chunk) - Operating expenses **decreased by $941,000** due to lower reimbursable operating expenses[94](index=94&type=chunk) - Interest and other income, net, **decreased by $1,855,000**, mainly from lower interest and dividend income[96](index=96&type=chunk) - Interest and debt expense **decreased by $5,309,000**, driven by lower LIBOR[97](index=97&type=chunk) - Change in fair value of marketable securities resulted in an **expense of $1,231,000** due to a decrease in Macerich's share price[98](index=98&type=chunk) [Results of Operations – Nine Months Ended September 30, 2020, compared to September 30, 2019](index=21&type=section&id=Results%20of%20Operations%20%E2%80%93%20Nine%20Months%20Ended%20September%2030%2C%202020%2C%20compared%20to%20September%2030%2C%202019) - Rental revenues **decreased by $27,383,000**, primarily due to **$10,837,000 in straight-line rent write-offs** and tenant vacancies[100](index=100&type=chunk) - Operating expenses **decreased by $2,926,000** due to lower reimbursable operating expenses[101](index=101&type=chunk) - General and administrative expenses **increased by $477,000**, mainly due to higher stock-based compensation and professional fees[103](index=103&type=chunk) - Interest and other income, net, **decreased by $3,955,000** from lower average interest rates[104](index=104&type=chunk) - Interest and debt expense **decreased by $10,888,000**, mainly from lower LIBOR[105](index=105&type=chunk) - Change in fair value of marketable securities resulted in an **expense of $10,789,000** from a **$20.13 decrease** in Macerich's share price[106](index=106&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) - Rental revenue, the primary source of cash flow, has been impacted by the COVID-19 pandemic and the **Century 21 bankruptcy**[108](index=108&type=chunk) - As of September 30, 2020, **liquidity totaled $373,612,000**[109](index=109&type=chunk) - Net cash provided by operating activities for the nine months was **$55,521,000**, a decrease from $99,953,000 in the prior year[110](index=110&type=chunk)[113](index=113&type=chunk) - Net cash provided by financing activities was **$23,910,000**, a significant shift from a net use of $69,105,000 in the prior year[112](index=112&type=chunk)[113](index=113&type=chunk) - The company expects existing cash and cash flows to be **adequate to fund operations** and dividends for the next twelve months[109](index=109&type=chunk) - The company paid **$23,797,000** in additional real property transfer taxes and interest related to the Kings Plaza sale[121](index=121&type=chunk) [Funds from Operations ("FFO") (non-GAAP)](index=25&type=section&id=Funds%20from%20Operations%20(%22FFO%22)%20(non-GAAP)) - FFO is a non-GAAP measure used to compare operating performance, excluding real estate depreciation and net gains on sales[124](index=124&type=chunk) FFO (non-GAAP) Summary (Amounts in thousands, except per share) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Change | | :--- | :--- | :--- | :--- | | FFO (non-GAAP) | $15,363 | $25,208 | -$9,845 | | FFO per diluted share | $3.00 | $4.92 | -$1.92 | | **Metric** | **Nine Months Ended Sep 30, 2020** | **Nine Months Ended Sep 30, 2019** | **Change** | | FFO (non-GAAP) | $57,102 | $75,044 | -$17,942 | | FFO per diluted share | $11.15 | $14.66 | -$3.51 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate fluctuations, with a 1% change in rates materially impacting diluted earnings per share Interest Rate Exposure (September 30, 2020, Amounts in thousands) | Debt Type | Balance | Weighted Average Interest Rate | | :--- | :--- | :--- | | Variable Rate | $1,002,544 | 1.29% | | Fixed Rate | $68,000 | 4.72% | | **Total** | **$1,070,544** | **1.51%** | *Effect of 1% change in rates on diluted earnings per share: $1.96* - The company holds an interest rate cap with a notional amount of **$500,000,000**, capping LIBOR at **6.0%**[129](index=129&type=chunk) Fair Value of Mortgages Payable (Amounts in thousands) | Date | Estimated Fair Value | | :--- | :--- | | September 30, 2020 | $1,032,000 | | December 31, 2019 | $974,000 | [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2020 - The Chief Executive Officer and Chief Financial Officer concluded that **disclosure controls and procedures were effective** as of September 30, 2020[131](index=131&type=chunk) - There were **no material changes** in internal control over financial reporting during the fiscal quarter[132](index=132&type=chunk) [PART II. Other Information](index=27&type=section&id=PART%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) Legal actions in the ordinary course of business are not expected to have a material effect on the company's financial condition - Various legal actions in the ordinary course of business are **not expected to materially affect** financial position, results of operations, or cash flows[134](index=134&type=chunk) - Further discussion of the Rego Park I litigation is provided in Note 11 to the financial statements[134](index=134&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) The COVID-19 pandemic continues to be a significant adverse risk factor impacting the company's business and financial condition - The **COVID-19 pandemic** continues to adversely affect the company's business, financial condition, results of operations, and cash flows[135](index=135&type=chunk)[138](index=138&type=chunk) - Specific impacts include rent deferrals, tenant bankruptcies (e.g., Century 21), and potential declines in real estate asset values[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - None reported[139](index=139&type=chunk) [Item 3. Defaults Upon Senior Securities](index=27&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported for the period - None reported[139](index=139&type=chunk) [Item 4. Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[140](index=140&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No other information was reported under this item - None reported[140](index=140&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including loan documents, certifications, and iXBRL financial data [Exhibit Index](index=29&type=section&id=Exhibit%20Index) - Key exhibits include loan amendments, CEO and CFO certifications, and financial information formatted in Inline Extensible Business Reporting Language (iXBRL)[142](index=142&type=chunk) [Signatures](index=30&type=section&id=Signatures) The report is duly signed on behalf of Alexander's, Inc by the Chief Financial Officer on November 2, 2020 - The report was signed by **Matthew Iocco, Chief Financial Officer**, on November 2, 2020[144](index=144&type=chunk)

Alexander’s, Inc. (NYSE:ALX) Q2 2020 Results Earnings Conference Call August 4, 2020 10:00 AM ET Company Participants Cathy Creswell - Director, Investor Relations Steven Roth - Chairman of the Board and Chief Executive Officer Michael Franco - President Glen Weiss - Executive Vice President-Office Leasing-Co-Head of Real Estate David Greenbaum - Vice Chairman Joseph Macnow - Executive Vice President-Chief Financial Officer and Chief Administrative Officer Thomas Sanelli - Chief Financial Officer Conference ...

[PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) This section provides the company's consolidated financial statements and management's discussion and analysis for the reported period [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited consolidated financial statements, detailing decreased rental revenues and net income due to COVID-19, and shifts in assets and liabilities [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities increased, primarily due to mortgages payable, while total equity decreased Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$1,384,162** | **$1,265,511** | | Cash and cash equivalents | $441,905 | $298,063 | | Real estate, net | $716,559 | $716,843 | | **Total Liabilities** | **$1,159,191** | **$1,011,996** | | Mortgages payable, net | $1,118,813 | $970,961 | | **Total Equity** | **$224,971** | **$253,515** | - The increase in total liabilities was primarily driven by a rise in mortgages payable, which grew from **$971.0 million** to **$1.12 billion**[4](index=4&type=chunk) - Total equity decreased from **$253.5 million** at the end of 2019 to **$225.0 million** as of June 30, 2020, mainly due to dividends paid exceeding net income[5](index=5&type=chunk) [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Rental revenues decreased, leading to a significant 42% drop in net income for the six-month period Income Statement Summary (in thousands, except per share data) | Metric | Q2 2020 | Q2 2019 | Six Months 2020 | Six Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Rental Revenues | $45,478 | $55,932 | $99,588 | $112,710 | | Total Expenses | ($29,522) | ($31,429) | ($60,635) | ($62,351) | | **Net Income** | **$12,331** | **$11,283** | **$16,903** | **$29,148** | | **Net Income per Share** | **$2.41** | **$2.20** | **$3.30** | **$5.70** | - For the six months ended June 30, 2020, net income decreased by **42%** year-over-year, falling from **$29.1 million** to **$16.9 million**. This was largely driven by lower rental revenues and a significant negative change in the fair value of marketable securities[7](index=7&type=chunk) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the six months ended June 30, 2020, decreased compared to the prior year Comprehensive Income Summary (in thousands) | Period | 2020 | 2019 | | :--- | :--- | :--- | | Three Months Ended June 30 | $12,327 | $11,302 | | Six Months Ended June 30 | $16,924 | $29,180 | [Consolidated Statements of Changes in Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity declined due to dividends paid significantly exceeding net income - Total equity decreased from **$253.5 million** at December 31, 2019, to **$225.0 million** at June 30, 2020[15](index=15&type=chunk)[5](index=5&type=chunk) - The primary drivers for the decrease in equity during the first six months of 2020 were dividends paid of **$46.1 million**, which significantly exceeded the net income of **$16.9 million**[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash increased significantly, primarily driven by financing activities including new borrowings Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $52,756 | $50,798 | | Net Cash used in Investing Activities | ($13,009) | ($4,901) | | Net Cash from Financing Activities | $99,541 | ($46,070) | | **Net Increase (Decrease) in Cash** | **$139,288** | **($173)** | - The significant increase in cash was driven by **$99.5 million** in net cash from financing activities, primarily from **$145.7 million** in proceeds from borrowing, offset by **$46.1 million** in dividends paid[18](index=18&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail rent collection challenges due to COVID-19, significant tenant concentration, and a mortgage loan transaction - Due to the COVID-19 pandemic, the company collected approximately **89%** of rent billed for Q2 2020 (**92%** including deferrals). It wrote off **$1.022 million** in uncollectible rent and **$4.247 million** in straight-line rent receivables during the period[24](index=24&type=chunk)[25](index=25&type=chunk) - Bloomberg is a significant tenant, accounting for approximately **53%** of total revenues for the first six months of 2020[37](index=37&type=chunk) - Vornado Realty Trust, which owns **32.4%** of the company's common stock, serves as manager and developer, receiving various fees for its services[38](index=38&type=chunk) - On February 14, 2020, the company reduced its participation in the Rego Park II mortgage loan, receiving cash proceeds of approximately **$145 million**[45](index=45&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses COVID-19's adverse impact on financial results, including declining rental revenues and FFO, while highlighting strong liquidity from a mortgage loan transaction [Overview](index=22&type=section&id=Overview) The overview details the adverse impact of COVID-19 on New York City properties, rent collection rates, and key financial highlights - The company's properties, all located in the greater New York City area, were adversely affected by the COVID-19 pandemic, with most retail tenants closing in March 2020 and reopening with limitations in June 2020[84](index=84&type=chunk) - For the quarter ended June 30, 2020, the company collected approximately **89%** of billed rent (**92%** including deferrals). Collection rates were **100%** for office, **76%** for retail (**83%** with deferrals), and **96%** for residential tenants[86](index=86&type=chunk) Q2 2020 Financial Highlights vs. Q2 2019 | Metric | Q2 2020 | Q2 2019 | | :--- | :--- | :--- | | Net Income per Share | $2.41 | $2.20 | | FFO per Diluted Share (non-GAAP) | $3.51 | $4.75 | [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Operational results show decreased rental revenues due to tenant vacancies and write-offs, partially offset by lower interest expenses - Q2 2020 rental revenues decreased by **$10.5 million** compared to Q2 2019, primarily due to a **$4.2 million** write-off of straight-line rents, **$3.0 million** from retail tenant vacancies, and **$1.0 million** in uncollectible rent[93](index=93&type=chunk) - Q2 2020 interest and debt expense fell by **$4.0 million** year-over-year, mainly due to a decrease in LIBOR[98](index=98&type=chunk) - For the first six months of 2020, rental revenues decreased by **$13.1 million** compared to the same period in 2019, driven by tenant vacancies and write-offs related to the pandemic's impact[101](index=101&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity, significantly boosted by financing activities including proceeds from a mortgage loan transaction - As of June 30, 2020, the company had a strong liquidity position of **$458.3 million**, consisting of cash, restricted cash, and marketable securities[110](index=110&type=chunk) - Cash and restricted cash increased by **$139.2 million** in the first half of 2020, largely due to **$99.5 million** in net cash provided by financing activities, including proceeds from reducing participation in the Rego Park II mortgage loan[111](index=111&type=chunk)[112](index=112&type=chunk) - A non-recourse mortgage loan for the 731 Lexington Avenue retail condominiums matures on August 5, 2020, and the company is in discussions with the lender for refinancing[110](index=110&type=chunk) [Funds from Operations ("FFO") (non-GAAP)](index=29&type=section&id=Funds%20from%20Operations%20%28%22FFO%22%29%20%28non-GAAP%29) FFO decreased in Q2 2020, reflecting operational challenges during the pandemic FFO Reconciliation Summary (in thousands) | Metric | Q2 2020 | Q2 2019 | Six Months 2020 | Six Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $12,331 | $11,283 | $16,903 | $29,148 | | Adjustments | $5,664 | $13,022 | $24,836 | $20,688 | | **FFO (non-GAAP)** | **$17,995** | **$24,305** | **$41,739** | **$49,836** | - FFO for Q2 2020 was **$18.0 million** (**$3.51 per share**), a decrease from **$24.3 million** (**$4.75 per share**) in Q2 2019, reflecting the operational challenges during the pandemic[130](index=130&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate exposure on its variable-rate debt, with a 1% rate change impacting earnings by **$10.5 million**, partially mitigated by an interest rate cap Interest Rate Sensitivity Analysis (as of June 30, 2020) | Debt Type | Balance (in thousands) | Weighted Avg. Rate | Effect of 1% Rate Change (in thousands) | | :--- | :--- | :--- | :--- | | Variable Rate | $1,052,544 | 1.33% | $10,525 | | Fixed Rate | $68,000 | 4.72% | $0 | | **Total** | **$1,120,544** | **1.54%** | **$10,525** | - The company utilizes an interest rate cap with a notional amount of **$500 million** that caps LIBOR at **6.0%** to mitigate some of its interest rate risk[135](index=135&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective[137](index=137&type=chunk) - No changes in internal control over financial reporting occurred during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[138](index=138&type=chunk) [PART II. Other Information](index=31&type=section&id=PART%20II.%20Other%20Information) This section covers legal proceedings, updated risk factors, and other required disclosures [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal actions not expected to have a material impact, with a specific Sears litigation stayed due to bankruptcy, involving a **$650,000** claim - The company states that the outcome of various legal actions arising in the ordinary course of business will not have a material effect on its financial condition or results of operations[141](index=141&type=chunk) - A lawsuit from Sears regarding the Rego Park I property is stayed due to Sears' Chapter 11 bankruptcy. The remaining property damage claim is estimated to be approximately **$650,000**[124](index=124&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, emphasizing the significant and ongoing adverse effects of the COVID-19 pandemic on operations, rent collection, and potential long-term impacts on capital access and asset values - The primary updated risk factor is the continued adverse effect of the COVID-19 pandemic on the business, financial condition, and cash flows[142](index=142&type=chunk) - The pandemic has negatively impacted all properties, which are located in the hard-hit New York City metropolitan area, leading to tenant store closures and operational limitations upon reopening[144](index=144&type=chunk) - Potential long-term impacts include constrained access to capital, decreased occupancy and rent levels, and a decline in real estate asset values, which could result in non-cash impairment charges[147](index=147&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported for the period[148](index=148&type=chunk) [Item 3. Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None reported for the period[148](index=148&type=chunk) [Item 4. Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[148](index=148&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed in this item - None reported for the period[148](index=148&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and financial data in iXBRL format - The report includes required exhibits such as officer certifications and financial statements formatted in iXBRL[148](index=148&type=chunk)

Alexander's, Inc. (NYSE:ALX) Q1 2020 Earnings Conference Call May 5, 2020 10:00 AM ET Company Participants Cathy Creswell - Director, Investor Relations Steven Roth - Chairman & Chief Executive Officer Michael Franco - President David Greenbaum - Vice Chairman Haim Chera - Executive Vice President & Head, Retail Glen Weiss - Executive Vice President Office, Leasing & Co-Head, Real Estate Joseph Macnow - Executive Vice President, Chief Financial Officer & Chief Administrative Officer Conference Call Particip ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2020 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File Number: 001-06064 ALEXANDERS INC (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Alexander's, Inc. is a REIT owning and managing seven properties in the greater New York City area, with significant revenue from a single tenant, Bloomberg L.P - The company operates as a REIT, focusing on leasing, managing, and developing its seven properties located in the greater New York City metropolitan area It is managed by Vornado Realty Trust[9](index=9&type=chunk) - The property portfolio includes six operating properties (731 Lexington Avenue, Rego Park I & II, The Alexander apartment tower, Paramus, and Flushing) and one property to be developed (Rego Park III)[10](index=10&type=chunk)[11](index=11&type=chunk) - As of December 31, 2019, Vornado owned **32.4%** of Alexander's common stock, with significant executive management overlaps[14](index=14&type=chunk) Revenue from Significant Tenant (Bloomberg L.P.) | Year | Revenue (in thousands) | Percentage of Total Revenue | | :--- | :--- | :--- | | 2019 | $109,113 | ~48% | | 2018 | $107,356 | ~46% | | 2017 | $105,224 | ~46% | [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from geographic concentration, reliance on a single property and tenant, tenant bankruptcies, cybersecurity threats, and related-party conflicts - All properties are located in the greater New York City metropolitan area, concentrating risk related to local economic conditions and real estate demand[23](index=23&type=chunk)[24](index=24&type=chunk) - The **731 Lexington Avenue** property accounted for approximately **68%** of total revenues in 2019, and its primary tenant, Bloomberg, accounted for **48%**, posing severe financial impact if lost[42](index=42&type=chunk)[43](index=43&type=chunk) - The company faces risks from anchor tenant closures and bankruptcies, including Sears at Rego Park I and Kohl's at Rego Park II[40](index=40&type=chunk) - Significant ownership and management overlap with Vornado Realty Trust and Interstate Properties creates potential conflicts of interest[86](index=86&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - As of December 31, 2019, the company had **$974.8 million** in total debt, posing risks related to debt service, refinancing, and potential foreclosure[71](index=71&type=chunk)[72](index=72&type=chunk) - The company faces cybersecurity risks, potentially disrupting operations, compromising confidential information, and damaging business relationships[45](index=45&type=chunk)[46](index=46&type=chunk) [Unresolved Staff Comments](index=19&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved comments from the Securities and Exchange Commission staff as of the report date - There are no unresolved SEC staff comments as of the filing date of this Form 10-K[95](index=95&type=chunk) [Properties](index=20&type=section&id=Item%202.%20Properties) The company's portfolio comprises seven properties totaling 2.45 million square feet, with key operating assets and significant mortgage loans Property Portfolio Overview (as of Dec 31, 2019) | Property | Type | Total Square Feet | Occupancy Rate (In Service) | | :--- | :--- | :--- | :--- | | 731 Lexington Avenue | Office/Retail | 1,075,000 | 100% (Office), 93% (Retail) | | Rego Park I | Retail | 343,000 | 100% | | Rego Park II | Retail | 609,000 | 92% | | The Alexander | Residential | 255,000 (312 units) | 94% | | Paramus, NJ | Land (Ground Lease) | 30.3 acres | 100% | | Flushing, Queens | Retail (Sub-lease) | 167,000 | 100% | | Rego Park III | Development Land | 140,000 | N/A | - The **731 Lexington Avenue** property is encumbered by two mortgage loans totaling **$850 million** as of December 31, 2019[105](index=105&type=chunk)[106](index=106&type=chunk) - At Rego Park I, Sears closed its **195,000 sq ft** store, with IKEA leasing **113,000 sq ft** of this space in September 2019[107](index=107&type=chunk) - At Rego Park II, Kohl's closed its store in April 2019 but subleased it to At Home in January 2020, remaining obligated until 2031[108](index=108&type=chunk) [Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary legal actions, including a stayed Sears lawsuit for **$650,000** related to Rego Park I - In June 2014, Sears filed a lawsuit regarding its leased space at Rego Park I, with a remaining claim for approximately **$650,000**[116](index=116&type=chunk) - The Sears lawsuit was automatically stayed following Sears' Chapter 11 bankruptcy filing on October 15, 2018[116](index=116&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[117](index=117&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE under 'ALX', with no equity repurchases in 2019, and underperformed key indices - The company's common stock is listed on the NYSE under the ticker symbol 'ALX', with **212** holders of record as of January 31, 2020[119](index=119&type=chunk) - During 2019, the company did not sell any unregistered securities or repurchase any of its equity securities[120](index=120&type=chunk) Five-Year Cumulative Total Return Comparison (2014-2019) | Index | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Alexander's | $100 | $91 | $105 | $102 | $82 | $94 | | S&P 500 Index | $100 | $101 | $114 | $138 | $132 | $174 | | NAREIT All Equity Index | $100 | $103 | $112 | $121 | $116 | $150 | [Selected Financial Data](index=26&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year financial summary, showing 2019 revenues of **$226.4 million** and net income of **$60.1 million** Selected Financial Data (2017-2019) | (In thousands, except per share) | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Total revenues | $226,350 | $232,825 | $230,574 | | Income from continuing operations | $60,075 | $56,641 | $80,509 | | Net income | $60,075 | $32,844 | $80,509 | | Net income per common share - diluted | $11.74 | $6.42 | $15.74 | | Dividends per common share | $18.00 | $18.00 | $17.00 | | Total assets | $1,265,511 | $1,285,549 | $1,632,395 | | Mortgages payable, net | $970,961 | $965,826 | $1,240,222 | | Total equity | $253,515 | $285,092 | $343,955 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses 2019 revenue decrease due to Sears vacancy, increased net income, and liquidity from rental income, with FFO at **$99.7 million** [Overview](index=27&type=section&id=Item%207.%20Overview) 2019 net income reached **$60.1 million** ($11.74/share), with the portfolio **96.5%** occupied and IKEA signing a key lease Financial Results Summary (FY 2019 vs FY 2018) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Net Income | $60,075,000 | $32,844,000 | | Diluted EPS | $11.74 | $6.42 | | FFO (non-GAAP) | $99,670,000 | $77,429,000 | | Diluted FFO per Share | $19.47 | $15.13 | - The 2018 results included a **$23,797,000** ($4.65/share) expense for potential transfer taxes on the 2012 sale of Kings Plaza Regional Shopping Center[130](index=130&type=chunk)[131](index=131&type=chunk) - As of Dec 31, 2019, the portfolio's **2,230,000** in-service square feet was **96.5%** occupied, with **219,000** square feet out of service for redevelopment[133](index=133&type=chunk) [Results of Operations](index=30&type=section&id=Item%207.%20Results%20of%20Operations) 2019 rental revenues decreased by **$6.5 million** due to Sears vacancy, while operating and interest expenses also declined - **2019 vs. 2018:** Rental Revenues decreased by **$6,475,000** due to Sears vacancy; Operating Expenses decreased by **$4,037,000** due to lower bad debt; Interest Expense decreased by **$5,632,000** from Rego Park II refinancing[148](index=148&type=chunk)[152](index=152&type=chunk) - **2018 vs. 2017:** Rental Revenues increased by **$2,251,000**; Operating Expenses increased by **$8,648,000** due to higher bad debt and real estate taxes; Interest Expense increased by **$13,059,000** from rising rates and refinancing[156](index=156&type=chunk)[157](index=157&type=chunk)[161](index=161&type=chunk) - The company recorded an expense of **$8,757,000** in 2019 and **$11,990,000** in 2018 from the decrease in the fair value of its investment in Macerich common stock[153](index=153&type=chunk)[162](index=162&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Item%207.%20Liquidity%20and%20Capital%20Resources) Property rental income is the primary liquidity source, with **$974.8 million** in outstanding debt and cash increasing by **$24.5 million** in 2019 - Primary source of cash flow is property rental income, expected to be adequate for operations, dividends, and capital expenditures for the next twelve months[168](index=168&type=chunk) Outstanding Debt Summary (as of Dec 31, 2019) | Property | Balance (in thousands) | Interest Rate | Maturity | | :--- | :--- | :--- | :--- | | Paramus | $68,000 | 4.72% | Oct. 2021 | | 731 Lexington, retail | $350,000 | 3.10% | Aug. 2022 | | 731 Lexington, office | $500,000 | 2.64% | Jun. 2024 | | Rego Park II | $56,836 | 3.15% | Dec. 2025 | | **Total** | **$974,836** | | | - On February 14, 2020, the company reduced its participation in the Rego Park II mortgage loan to **$50,000,000**, receiving cash proceeds of approximately **$145,000,000**[170](index=170&type=chunk) - Cash and cash equivalents increased by **$24,482,000** during 2019, driven by **$126,070,000** in net cash from operations, offset by **$92,139,000** used in financing[186](index=186&type=chunk) [Funds from Operations (FFO)](index=36&type=section&id=Item%207.%20Funds%20from%20Operations%20(FFO)) FFO, a non-GAAP measure, increased to **$99.7 million** ($19.47 per diluted share) in 2019 from **$77.4 million** in 2018 FFO Reconciliation (in thousands) | | Year Ended Dec 31, 2019 | Year Ended Dec 31, 2018 | | :--- | :--- | :--- | | Net income | $60,075 | $32,844 | | Depreciation and amortization of real property | 30,838 | 32,595 | | Change in fair value of marketable securities | 8,757 | 11,990 | | **FFO (non-GAAP)** | **$99,670** | **$77,429** | - FFO per diluted share increased to **$19.47** in 2019 from **$15.13** in 2018, with the 2018 figure including a **$4.65** per share negative impact from the Kings Plaza transfer tax expense[197](index=197&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk from **$906.8 million** in variable-rate debt, with a 1% rate increase impacting annual interest expense by **$9.1 million** Interest Rate Risk Exposure (as of Dec 31, 2019) | Debt Type | Balance (in thousands) | Weighted Avg. Rate | Effect of 1% Rate Change (in thousands) | | :--- | :--- | :--- | :--- | | Variable Rate | $906,836 | 2.85% | $9,068 | | Fixed Rate | $68,000 | 4.72% | $0 | | **Total** | **$974,836** | **2.98%** | **$9,068** | - The estimated fair value of the company's consolidated debt was **$974,000,000** as of December 31, 2019, closely approximating its carrying value[202](index=202&type=chunk) [Financial Statements and Supplementary Data](index=38&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for FY2019, including balance sheets, income statements, and cash flows, with total assets of **$1.27 billion** [Report of Independent Registered Public Accounting Firm](index=39&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP issued an unqualified opinion on the financial statements, identifying real estate impairment as a critical audit matter - The auditor, Deloitte & Touche LLP, provided an unqualified opinion on the financial statements and on the effectiveness of internal control over financial reporting[205](index=205&type=chunk)[206](index=206&type=chunk) - The audit identified the impairment evaluation of real estate as a Critical Audit Matter, highlighting significant management judgment in estimating capitalization rates[209](index=209&type=chunk)[210](index=210&type=chunk) [Consolidated Financial Statements](index=41&type=section&id=Consolidated%20Financial%20Statements) As of Dec 31, 2019, total assets were **$1.27 billion**, total liabilities **$1.01 billion**, and net income for FY2019 was **$60.1 million** Consolidated Balance Sheet Highlights (as of Dec 31, 2019) | Account | Amount (in thousands) | | :--- | :--- | | Real estate, net | $716,843 | | Cash and cash equivalents | $298,063 | | **Total Assets** | **$1,265,511** | | Mortgages payable, net | $970,961 | | **Total Liabilities** | **$1,011,996** | | **Total Equity** | **$253,515** | Consolidated Statement of Income Highlights (FY 2019) | Account | Amount (in thousands) | | :--- | :--- | | Rental revenues | $226,350 | | Total expenses | ($126,861) | | Income from continuing operations | $60,075 | | **Net Income** | **$60,075** | - Net cash provided by operating activities was **$126.1 million** in 2019, with **$92.1 million** used in financing activities, almost entirely for dividend payments[227](index=227&type=chunk)[228](index=228&type=chunk) [Notes to Consolidated Financial Statements](index=47&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail significant revenue concentration from Bloomberg, extensive related-party transactions with Vornado, and **$974.8 million** in mortgage debt - Bloomberg accounted for **48%** of total revenues in 2019, with its loss adversely affecting financial results[290](index=290&type=chunk) - The company has extensive related-party agreements with Vornado for management, development, and leasing services, totaling **$12.6 million** in fees in 2019[262](index=262&type=chunk)[268](index=268&type=chunk) - In 2018, the company accrued a **$23.8 million** loss from discontinued operations for potential transfer taxes related to the 2012 Kings Plaza sale, paid in April 2018[271](index=271&type=chunk) - The company maintains general liability insurance of **$300 million** per occurrence and all-risk property insurance of **$1.7 billion** per occurrence, including terrorism coverage[295](index=295&type=chunk)[296](index=296&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=61&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure - None reported[313](index=313&type=chunk) [Controls and Procedures](index=61&type=section&id=Item%209A.%20Controls%20and%20Procedures) Disclosure controls and internal control over financial reporting were deemed effective by management and audited by Deloitte & Touche LLP - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the fiscal year[314](index=314&type=chunk) - Management assessed internal control over financial reporting as effective, an assessment concurred by Deloitte & Touche LLP[318](index=318&type=chunk)[322](index=322&type=chunk) [Other Information](index=64&type=section&id=Item%209B.%20Other%20Information) No other information is reported for this period - None[328](index=328&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=64&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors and corporate governance is incorporated by reference, listing Steven Roth and Matthew Iocco as executive officers - Most information is incorporated by reference from the Proxy Statement; executive officers listed are Steven Roth (**78**, Chairman & CEO) and Matthew Iocco (**49**, CFO)[329](index=329&type=chunk)[331](index=331&type=chunk) [Executive Compensation](index=65&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the company's Proxy Statement - Information is incorporated by reference from the Proxy Statement[333](index=333&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=65&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference, with **11,408** securities to be issued and **494,379** available for future issuance Equity Compensation Plan Information (as of Dec 31, 2019) | Plan Category | Securities to be Issued (a) | Securities Remaining for Future Issuance (b) | | :--- | :--- | :--- | | Approved by security holders | 11,408 | 494,379 | | Not approved by security holders | N/A | N/A | | **Total** | **11,408** | **494,379** | [Certain Relationships and Related Transactions, and Director Independence](index=65&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the Proxy Statement - Information is incorporated by reference from the Proxy Statement[337](index=337&type=chunk) [Principal Accounting Fees and Services](index=65&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the Proxy Statement - Information is incorporated by reference from the Proxy Statement[338](index=338&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=66&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists documents filed as part of the Annual Report, including financial statements, schedules, and a comprehensive list of exhibits - Financial Statement Schedule III - Real Estate and Accumulated Depreciation is included in the filing[341](index=341&type=chunk) - A detailed list of exhibits is provided, including governance documents, material contracts, loan agreements, and CEO/CFO certifications[348](index=348&type=chunk)[350](index=350&type=chunk)[356](index=356&type=chunk) [Form 10-K Summary](index=80&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided for this period - None[359](index=359&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2019 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File Number: 001-06064 ALEXANDERS INC (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2019 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File Number: 001-06064 ALEXANDERS INC (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...