Alexander’s(ALX) - 2024 Q1 - Quarterly Report

Financial Performance - Net income for the quarter ended March 31, 2024, was $16,109,000, or $3.14 per diluted share, compared to $11,226,000, or $2.19 per diluted share in the prior year's quarter, representing a 43% increase in net income [75]. - Funds from operations (FFO) for the quarter ended March 31, 2024, was $25,532,000, or $4.98 per diluted share, compared to $18,633,000, or $3.63 per diluted share in the prior year's quarter, reflecting a 37% increase [75]. - Net income for Q1 2024 was $16,109,000, compared to $11,226,000 in Q1 2023, indicating a year-over-year increase of approximately 43% [98]. - FFO (non-GAAP) for Q1 2024 was $25,532,000, or $4.98 per diluted share, up from $18,633,000, or $3.63 per diluted share in Q1 2023, representing a 37% increase in FFO [97]. Revenue and Occupancy - Rental revenues increased to $61,397,000 for the three months ended March 31, 2024, from $52,941,000 in the prior year's quarter, an increase of 16% [80]. - The commercial occupancy rate was 92.5% and the residential occupancy rate was 96.8% as of March 31, 2024 [76]. - Bloomberg L.P. accounted for approximately 49% of rental revenues in Q1 2024, generating $29,963,000, compared to 56% in Q1 2023 [77]. Expenses and Debt - Operating expenses for the quarter were $25,263,000, an increase of 1.3% from $24,944,000 in the prior year's quarter [81]. - Interest and debt expense rose to $16,234,000 for the quarter, up 32.5% from $12,253,000 in the prior year's quarter [84]. - The company has a total debt fair value of $1,074,768,000 as of March 31, 2024, compared to $1,071,887,000 as of December 31, 2023 [102]. Cash Flow and Future Outlook - Cash and cash equivalents and restricted cash were $547,399,000 as of March 31, 2024, a decrease of $5,578,000 from $552,977,000 as of December 31, 2023 [88]. - 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 [87]. Lease Agreements - In May 2024, the company and Bloomberg extended leases covering approximately 947,000 square feet at the 731 Lexington Avenue property for an additional eleven years [78]. Depreciation and Interest Rates - Depreciation and amortization of real property for Q1 2024 was $9,423,000, compared to $7,407,000 in Q1 2023, reflecting a 27% increase [98]. - The weighted average interest rate for variable rate debt is 5.88% as of March 31, 2024, with a total variable rate balance of $702,544,000 [100]. - The company has an interest rate cap on a mortgage loan with a notional amount of $500,000,000, capping the Prime Rate at 6.00% [100]. - An interest rate cap on the Rego Park II shopping center mortgage loan has a notional amount of $202,544,000, capping SOFR at 4.15% through November 2024 [100]. - The company has an interest rate swap on a mortgage loan with a notional amount of $300,000,000, swapping SOFR plus 1.51% for a fixed rate of 1.76% through May 2025 [100]. - The total effect on diluted earnings per share from interest rate changes is estimated at $1.37 [100]. - The weighted average shares used in computing FFO per diluted share increased slightly to 5,130,678 in Q1 2024 from 5,127,086 in Q1 2023 [98].