Alexander’s(ALX) - 2019 Q3 - Quarterly Report

Financial Performance - Net income for the quarter ended September 30, 2019, was $16,493,000, or $3.22 per diluted share, an increase from $15,003,000, or $2.93 per diluted share in the prior year's quarter [97]. - Funds from operations (FFO) for the quarter ended September 30, 2019, was $25,208,000, or $4.92 per diluted share, compared to $23,945,000, or $4.68 per diluted share in the prior year's quarter [97]. - FFO for the nine months ended September 30, 2019, was $75,044,000, or $14.66 per diluted share, compared to $53,271,000, or $10.41 per diluted share in the prior year [139]. Revenue and Occupancy - Rental revenues for the nine months ended September 30, 2019, were $170,470,000, a decrease of $4,788,000 from $175,258,000 in the prior year's nine months [112]. - As of September 30, 2019, the portfolio comprised seven properties totaling 2,449,000 square feet, with 99.5% occupancy in the in-service square feet [100]. - Significant tenant Bloomberg L.P. accounted for approximately 48% of total revenues for the nine months ended September 30, 2019, with revenue of $81,314,000 [102]. Expenses and Cash Flow - Operating expenses for the nine months ended September 30, 2019, were $66,905,000, down from $70,207,000 in the prior year's nine months, primarily due to reduced bad debt expense [113]. - Interest and debt expense for the nine months ended September 30, 2019, was $30,096,000, a decrease from $32,115,000 in the prior year's nine months [117]. - Net cash provided by operating activities was $99,953,000, consisting of net income of $45,641,000, non-cash adjustments of $36,002,000, and a net change in operating assets and liabilities of $18,310,000 [122]. Financing Activities - Net cash used in financing activities totaled $150,471,000, primarily due to debt repayments of $81,214,000 and dividends paid of $69,072,000 [125]. - The fair value of mortgages payable was estimated at $973,000,000 as of September 30, 2019, compared to $969,000,000 as of December 31, 2018 [145]. Cash and Equivalents - Cash and cash equivalents as of September 30, 2019, were $313,777,000, an increase of $24,282,000 from $289,495,000 as of December 31, 2018 [121]. - Cash and cash equivalents decreased by $84,032,000 to $309,247,000 as of September 30, 2018, compared to $393,279,000 as of December 31, 2017 [124]. Lease Agreements and Insurance - A 10-year lease agreement with IKEA for 112,500 square feet was signed on September 23, 2019, at the Rego Park I shopping center [101]. - The company maintains general liability insurance with limits of $300,000,000 per occurrence and all-risk property insurance coverage with limits of $1.7 billion per occurrence [127]. Marketable Securities and Interest Rates - Change in fair value of marketable securities was an expense of $6,257,000 for the nine months ended September 30, 2019, compared to $5,561,000 in the prior year's nine months [118]. - The company has an interest rate cap with a notional amount of $500,000,000 that caps LIBOR at a rate of 6.0% [144]. - The company has exposure to fluctuations in interest rates, with a weighted average interest rate of 3.17% for variable rate debt as of September 30, 2019 [144]. Non-Cash Adjustments - The adjustments for non-cash items in operating activities included depreciation and amortization of $27,401,000 and stock-based compensation expense of $394,000 [122].