Alexander's: Hold On To This 8.8% Yield From New York City

Core Viewpoint - Alexander's Inc (ALX) has maintained a strong dividend yield of 8.8% and reported a fiscal 2023 FFO of $81.1 million, which is above its peer group median by approximately 9% [2][3] Financial Performance - ALX declared a quarterly dividend of $4.9250 per share, with a total return of 23% over the last year [2] - The fourth quarter FFO was $25.6 million, or $4.99 per share, which covered the recent dividend by 111% [3] - ALX's cash and cash equivalents stood at $532 million at the end of the fourth quarter, with an additional $21.12 million in restricted cash [3] Asset Overview - The most significant asset is the 731 Lexington Avenue office, fully leased to Bloomberg, accounting for 38.2% of ALX's total portfolio [4] - The property has a weighted average escalated rent of $135.44 per square foot and is not set for lease expiration until 2029 [4] Debt and Interest Management - ALX has $500 million in debt tied to the 731 Lexington property due on June 11, 2024, with an interest rate of 6.00% [5] - Another $502 million in debt is due in 2025, which may increase interest expenses [5] - The REIT has utilized interest rate swaps and caps to manage interest exposure, maintaining stable cash from operations [5] Market Conditions - The Federal Reserve's actions regarding interest rates are critical for ALX, with current expectations for only one rate cut through 2024 [7][9] - The occupancy rate of the 731 Lexington property remains at 100%, which, along with a strong cash position, mitigates some risks [10]