Financial Data and Key Metrics Changes - Comparable FFO for the first quarter was $0.63 per share, an increase of $0.08 compared to last year's first quarter, primarily due to the positive ground rent reset at PENN1 and higher NOI from rent commencements [24][16] - Overall GAAP same store NOI increased by 3.5% [16] - The company expects 2025 comparable FFO to be essentially flat compared to last year, with significant earnings growth anticipated by 2027 [25][24] Business Line Data and Key Metrics Changes - The company leased a total of 1,039,000 square feet, with 709,000 square feet in New York office space at starting rents of $95 per square foot and positive mark-to-market of 6.5% [16][27] - A major lease of 337,000 square feet was completed with Universal Music Group at PENN2, contributing to the overall leasing activity [28][16] - At 555 California Street, 222,000 square feet were leased at starting rents of $120 per square foot, demonstrating strong performance in a historically soft market [18][16] Market Data and Key Metrics Changes - New York office occupancy decreased to 84.4% from 88.8% due to PENN2 being placed fully into service, but is expected to rise to the low 90s over the next year [25][16] - The New York office leasing market maintained strong momentum, with the strongest quarterly volume since Q4 2019 [25][27] - Availability in the best ISA market continues to shrink, with only 500,000 square feet of new construction set to deliver in the coming years [26] Company Strategy and Development Direction - The company is focused on the Penn District as a growth engine, with expectations of significant rental rate increases as supply tightens [20][19] - Plans include a robust development program at 350 Park Avenue and the Penn District, with a small apartment project also in the works [45][105] - The company aims to maintain a strong financial position, leveraging cash reserves for new investments and debt management [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market despite current volatility, noting that demand for quality office space remains strong [27][25] - The company anticipates that as occupancy rises, earnings will significantly increase, with a target of reaching around 94% occupancy in the next couple of years [60][61] - Management highlighted the importance of high-quality buildings in driving demand and rental growth [98][97] Other Important Information - The company has reduced its debt by $915 million and increased cash balances to $1.4 billion, providing immediate liquidity of $3 billion [15][16] - A favorable ruling on the PENN1 ground lease rent reset will increase GAAP earnings by approximately $36 million [11][15] - The company has achieved 100% sustainability certification across its portfolio, reflecting its commitment to environmental responsibility [22] Q&A Session Summary Question: Can you break down the 2,000,000 square foot negotiation between PENN1, PENN2, and the balance of the portfolio? - Approximately 50% of the 2,000,000 square foot pipeline is from PENN1 and PENN2, with strong activity at PENN2 and continued leasing at PENN1 [37][38] Question: What is the confidence level around reaching 80% occupancy at PENN2 by the end of the year? - Management remains confident in reaching the target, emphasizing that timing is less critical than achieving the desired rental rates [39][40] Question: What are the plans for the cash on the balance sheet? - The cash will be used for debt management, maintaining liquidity, and funding new development opportunities [44][45] Question: Can you comment on the trend of owner-occupiers in the market? - There is a notable trend of retailers and companies wanting to own their spaces in prime locations, driven by the desire for long-term control and stability [90][89] Question: How do you view the current real estate valuations? - The company believes that great assets will command great prices, and they are not willing to sell high-quality assets at distressed prices [55][53]

Core Viewpoint - Alexander's reported quarterly funds from operations (FFO) of $4.06 per share, exceeding the Zacks Consensus Estimate of $3.57 per share, but down from $4.98 per share a year ago, indicating a 13.73% FFO surprise [1][2] Financial Performance - The company posted revenues of $54.92 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.94%, and down from $61.4 million year-over-year [2] - Over the last four quarters, Alexander's has surpassed consensus FFO estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Alexander's shares have increased approximately 7.4% since the beginning of the year, contrasting with the S&P 500's decline of -3.3% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call and future FFO expectations [3][4] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $2.80 on $56 million in revenues, and for the current fiscal year, it is $11.50 on $223.8 million in revenues [7] - The estimate revisions trend for Alexander's is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The REIT and Equity Trust - Other industry is currently in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Insights - Alexander's, Inc. reported a decline in net income for Q1 2025, with net income at $12.3 million ($2.40 per diluted share), down from $16.1 million ($3.14 per diluted share) in Q1 2024 [1][6] - Funds from operations (FFO) also decreased to $20.8 million ($4.06 per diluted share) in Q1 2025, compared to $25.5 million ($4.98 per diluted share) in Q1 2024 [2][6] Financial Performance - Revenues for the quarter ended March 31, 2025, were $54.9 million, a decrease from $61.4 million in the same quarter of 2024 [6] - The weighted average shares outstanding for basic and diluted calculations were 5,133,534 for Q1 2025, slightly up from 5,130,678 in Q1 2024 [6] - Depreciation and amortization of real property for Q1 2025 was $8.5 million, compared to $9.4 million in Q1 2024 [7] FFO Reconciliation - The reconciliation of net income to FFO shows that net income was $12.3 million, with depreciation and amortization of real property adding $8.5 million, resulting in FFO of $20.8 million [7] - FFO is defined by NAREIT as GAAP net income adjusted for specific items, providing a measure for comparing operating performance across periods and peers [7]

Financial Performance - Net income for the quarter ended March 31, 2025, was $12,312,000, or $2.40 per diluted share, compared to $16,109,000, or $3.14 per diluted share in the prior year's quarter, representing a decrease of 23.5%[84] - Funds from operations (FFO) for the quarter ended March 31, 2025, was $20,842,000, or $4.06 per diluted share, down from $25,532,000, or $4.98 per diluted share in the prior year's quarter, a decrease of 18.4%[84] - Rental revenues decreased to $54,915,000 for the three months ended March 31, 2025, from $61,397,000 in the prior year's quarter, a decline of 10.6%[88] - FFO (non-GAAP) for Q1 2025 was $20,842,000, or $4.06 per diluted share, down from $25,532,000, or $4.98 per diluted share in Q1 2024, representing a decrease of 18.5% in FFO[109] - Net income for Q1 2025 was $12,312,000, compared to $16,109,000 in Q1 2024, indicating a decline of 23.3%[109] - The company’s FFO per diluted share decreased by 18.5% year-over-year, reflecting challenges in operational performance[109] Revenue Sources - Bloomberg L.P. accounted for approximately 59% of rental revenues for the three months ended March 31, 2025, compared to 49% in the prior year, highlighting significant reliance on a single tenant[87] Occupancy Rates - The commercial occupancy rate was 94.7% and the residential occupancy rate was 93.9% as of March 31, 2025[85] Operating Expenses - Operating expenses increased to $25,564,000 for the three months ended March 31, 2025, from $25,263,000 in the prior year's quarter, an increase of 1.2%[89] Interest and Debt Management - Interest and debt expense decreased to $10,794,000 for the three months ended March 31, 2025, from $16,234,000 in the prior year's quarter, a reduction of 33.5%[93] - The total fair value of consolidated debt as of March 31, 2025, was estimated at $972,192,000, slightly up from $967,941,000 as of December 31, 2024[114] - The company has a variable rate exposure of $201,754,000 at an interest rate of 5.60%, with a potential effect of a 1% change resulting in a $2,018 impact on earnings per share[112] - The company holds an interest rate cap on a mortgage loan with a notional amount of $201,754,000, capping SOFR at 4.15% through December 2025[112] - An interest rate swap related to a mortgage loan on a retail condominium has a notional amount of $300,000,000, swapping SOFR plus 1.51% for a fixed rate of 1.76% through May 2025[113] - The weighted average interest rate for fixed-rate debt is 3.52%, while the overall weighted average interest rate for total debt is 3.94%[112] Cash Flow and Future Outlook - Cash and cash equivalents and restricted cash were $377,645,000 as of March 31, 2025, down from $393,836,000 as of December 31, 2024, a decrease of 4.1%[96] - The company anticipates that cash flow from continuing operations over the next twelve months will be adequate to fund business operations, cash dividends, debt service, and capital expenditures[95] Strategic Initiatives - The company is exploring sale and development opportunities for the Rego Park I property after relocating tenants to Rego Park II[86] Risk Factors - The company’s exposure to interest rate fluctuations remains a significant risk factor, impacting financial performance[111]

Company Overview - ALX Oncology Holdings Inc. is a clinical-stage biotechnology company focused on developing novel therapies for cancer treatment and improving patient survival [2] - The company's lead candidate, evorpacept, is positioned as a potential cornerstone therapy in immuno-oncology and is currently undergoing multiple clinical trials across various cancer indications [2] - ALX Oncology's second candidate, ALX2004, is an innovative EGFR-targeted antibody-drug conjugate expected to enter Phase 1 trials in mid-2025 [2] Financial Reporting - ALX Oncology plans to report its first quarter 2025 financial results on May 8, 2025, before the market opens [1] - The company will not hold a teleconference in conjunction with the financial results press release [1]

Core Viewpoint - The performance of Real Estate Investment Trusts (REITs) can vary significantly, with some struggling even in favorable conditions, while others can thrive and provide substantial returns during challenging times [1] Group 1 - REITs can be poor investments during the best of times [1] - Conversely, certain REITs can flourish and yield high returns during the worst of times [1]

Core Points - Alexander's, Inc. will file its quarterly report on Form 10Q for the quarter ended March 31, 2025, with the U.S. Securities and Exchange Commission and will issue its first quarter earnings release on May 5, 2025, before the market opens [1] - Vornado Realty Trust, which manages Alexander's operations, will host a quarterly earnings conference call and audio webcast on May 6, 2025, at 10:00 a.m. Eastern Time [2] - The conference call can be accessed via a domestic and international dialing option, and a live webcast will be available on Vornado's website [3] Company Overview - Alexander's, Inc. is a real estate investment trust (REIT) that owns five properties in New York City [3]

Group 1 - The recent heavy sell-off in the market has created opportunities in high-yield REITs, attracting investors seeking higher returns as a hedge against volatility [1] - There is a cautionary note that the yield advertised may not reflect the actual yield received, as companies have the ability to cut dividends [1]

Group 1 - NCR Atleos Corporation (NATL) has seen a 9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - BGC Group, Inc. (BGC) has experienced a 9.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Naspers Limited (NPSNY) has seen a 14.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Alexander's, Inc. (ALX) has experienced a 15% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Veeva Systems Inc. (VEEV) has seen a 4.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Group 1 - Alexander's (ALX) has gained about 5.3% year-to-date, outperforming the average gain of 2.4% for Finance stocks [4] - The Zacks Rank for Alexander's is 2 (Buy), indicating a positive earnings outlook with a 15% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Alexander's belongs to the REIT and Equity Trust - Other industry, which has seen a year-to-date gain of 4.3%, indicating that ALX is performing better than its peers in this specific group [5] Group 2 - Banco Bilbao (BBVA) has significantly outperformed the sector with a year-to-date return of 41.2% and has a Zacks Rank of 1 (Strong Buy) [4][5] - The Banks - Foreign industry, to which Banco Bilbao belongs, is ranked 29 and has moved up by 10.2% this year [6] - Investors interested in Finance stocks should closely monitor both Alexander's and Banco Bilbao for their solid performance [6]