Alexander’s(ALX) - 2025 Q1 - Quarterly Report

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]