Alexander’s, Inc. (ALX): A Bull Case Theory

Core Thesis - Alexander's, Inc. (ALX) presents a compelling deep-value opportunity in New York City real estate, supported by a concentrated portfolio of high-density properties, including the fully leased Bloomberg Tower, which secures a significant portion of rental income [2][5] Company Overview - Alexander's, Inc. is a real estate investment trust (REIT) focused on leasing, managing, developing, and redeveloping properties [2] - The company is externally managed by Vornado Realty Trust, with CEO Steve Roth holding a 32.4% stake, aligning interests with shareholders [3] Financial Metrics - As of February 17th, ALX's share price was $229.32, with a trailing P/E ratio of 42.52 [1] - The company has $352 million in liquidity, ensuring dividend coverage while pursuing asset sales or leasing [4] - ALX's current funds from operations (FFO) stand at $12.27, with a maintained dividend of $18 per share [4] Strategic Actions - Recent strategic actions include addressing retail vacancies through redevelopment or asset sales, which the market has mispriced [3] - A refinancing of the $300 million Bloomberg Tower mortgage has been executed, saving approximately $7.6 million annually [4] Valuation Insights - A sum-of-the-parts valuation indicates a 31% discount to net asset value (NAV), with potential upside from leasing vacant retail space or completing strategic sales [5] - The intrinsic value could rise toward $350 per share, offering an 8.3% yield backed by a strong balance sheet and exposure to premium Manhattan assets [5]