Revenue and Income - Bloomberg accounted for rental revenues of $125.35 million, $120.35 million, and $115.13 million for the years ended December 31, 2024, 2023, and 2022, respectively, representing approximately 55%, 54%, and 56% of total rental revenues[23]. - 731 Lexington Avenue generated revenues of $153.3 million, $148.8 million, and $138.8 million for the years ended December 31, 2024, 2023, and 2022, respectively, accounting for approximately 68%, 66%, and 67% of total rental revenues[44]. - Rental revenues increased to $226,374,000 in 2024 from $224,962,000 in 2023, an increase of $1,412,000, primarily due to higher rental revenue from Bloomberg's lease extension[152]. - Net income for the year ended December 31, 2024, was $43,444,000 or $8.46 per diluted share, a decrease from $102,413,000 or $19.97 per diluted share in 2023[142]. - Funds from operations (FFO) for the year ended December 31, 2024, was $77,968,000 or $15.19 per diluted share, compared to $81,067,000 or $15.80 per diluted share in 2023[143]. - Comprehensive income for 2024 was $31,130,000, down from $93,028,000 in 2023, a decrease of 66.6%[211]. Property and Development - The Rego Park I shopping center will be vacant in 2025 after the relocation of Burlington and Marshalls, and the company is exploring sale and development opportunities for the property[22]. - The company is exploring sale and development opportunities for the vacant Rego Park I property[119]. - As of December 31, 2024, the portfolio comprised five properties totaling 2,455,000 square feet, with a commercial occupancy rate of 99.1% and a residential occupancy rate of 94.2%[144]. Financial Position and Debt - As of December 31, 2024, total mortgages payable amounted to $996,544,000, with a total debt to total enterprise value ratio of 59%[67]. - The company faces risks associated with its outstanding debt, including potential difficulties in refinancing on acceptable terms, which could adversely affect future operations[67]. - Total liabilities were $1,164,436,000 as of December 31, 2024, compared to $1,166,023,000 in 2023[205]. - The company anticipates that cash flow from continuing operations will be adequate to fund business operations, cash dividends, debt service, and capital expenditures over the next twelve months[163]. Operational Risks - The company faces risks from trends in office real estate, including the prevalence of work-from-home policies, which could affect tenant space utilization and rental revenues[36]. - The company is subject to various risks affecting the retail environment, including consumer spending levels, tourism, and competition from online retailers[39]. - The company faces risks related to tenant bankruptcies, which could lead to decreased revenues and operational difficulties, impacting cash flow and distributions to stockholders[47]. - Significant inflation could adversely affect the company's ability to raise rental rates, potentially reducing profit margins and increasing operating costs[61]. - The company is exposed to risks associated with property development and redevelopment, including cost overruns and regulatory approval delays, which could adversely affect financial results[63]. Insurance and Compliance - The company maintains general liability insurance with limits of $300 million per occurrence and property insurance coverage of $1.7 billion per occurrence, including terrorism coverage[49]. - The company is subject to various federal, state, and local regulatory requirements, and noncompliance could result in substantial costs[99]. - The company may incur significant costs due to potential adverse federal tax audits and changes in federal tax laws[95]. Environmental and Sustainability Initiatives - Vornado has adopted a 10-year plan, "Vision 2030," to make its buildings carbon neutral by 2030, focusing on energy reduction, recovery, and renewable power[25]. - Vornado operates over 26 million square feet of LEED certified buildings, representing 100% of its certifiable office portfolio, with over 24 million square feet at LEED Gold or Platinum[25]. - The company is subject to transitional risks related to climate-related policy changes, which could lead to increased operating costs and compliance expenses[57]. - The impact of climate change and natural disasters could significantly damage properties and affect demand, leading to adverse financial results[55]. Cybersecurity - The company has implemented various measures to manage cybersecurity risks, but there is no assurance that these measures will be fully effective against evolving threats[87]. - A significant disruption in IT networks could adversely affect operations and result in unauthorized access to sensitive information, potentially harming financial results[88]. - The company has a comprehensive cybersecurity risk management strategy integrated into its overall enterprise risk management program[105]. - The Board of Directors oversees cybersecurity risks, with the Audit Committee responsible for the implementation of the cybersecurity risk management program[107]. Shareholder and Stockholder Matters - Vornado and its affiliates collectively own approximately 58.4% of the outstanding shares of common stock, potentially reducing the likelihood of a tender offer or change in control[77]. - The company may change its operational and financial policies without stockholder approval, limiting stockholder control over significant decisions[78]. - As of December 31, 2024, the company had authorized but unissued 4,826,550 shares of common stock and 3,000,000 shares of preferred stock, which could dilute current stockholders' interests[92]. - The company is dependent on key personnel, including Steven Roth, the Chairman and CEO, and their loss could adversely affect operations and stock value[93].
Alexander’s(ALX) - 2024 Q4 - Annual Report