ALEXANDERS INC

Previous wording

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q or the date of any document incorporated by reference. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly, any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

Current wording

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q or the date of any document incorporated by reference. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly, any revisions to our forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q.

Previous wording

Management’s Discussion and Analysis of Financial Condition and Results of Operations include a discussion of our consolidated financial statements for the three months ended March 31, 2025. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the operating results for the full year.

Current wording

Management’s Discussion and Analysis of Financial Condition and Results of Operations include a discussion of our consolidated financial statements for the three and six months ended June 30, 2025. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the operating results for the full year.

Previous wording

A summary of the critical accounting policies and estimates used in the preparation of our consolidated financial statements is included in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024. For the three months ended March 31, 2025, there were no material changes to these estimates or policies.

Current wording

A summary of the critical accounting policies and estimates used in the preparation of our consolidated financial statements is included in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024. For the six months ended June 30, 2025, there were no material changes to these estimates or policies.

Previous wording

Quarter Ended March 31, 2025 Financial Results Summary

Current wording

Three Months Ended June 30, 2025 Financial Results Summary

Previous wording

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.

Current wording

Net income for the three months ended June 30, 2025 was $6,120,000, or $1.19 per diluted share, compared to $8,380,000 or $1.63 per diluted share in the prior year’s three months.

Previous wording

Funds from operations (“FFO”) (non-GAAP) for the quarter ended March 31, 2025 was $20,842,000, or $4.06 per diluted share, compared to $25,532,000 or $4.98 per diluted share in the prior year’s quarter.

Current wording

Funds from operations (“FFO”) (non-GAAP) for the three months ended June 30, 2025 was $14,762,000, or $2.88 per diluted share, compared to $17,009,000, or $3.31 per diluted share in the prior year’s three months.

Previous wording

Our portfolio is comprised of five properties aggregating 2,455,000 square feet. As of March 31, 2025, the commercial occupancy rate was 94.7% and the residential occupancy rate was 93.9%.

Current wording

Our portfolio is comprised of five properties aggregating 2,455,000 square feet. As of June 30, 2025, the commercial occupancy rate was 94.8% and the residential occupancy rate was 98.7%.

Previous wording

In the fourth quarter of 2024, we entered into ten-year leases with Burlington and Marshalls to relocate them to our Rego Park II property in 2025 from their current location at our Rego Park I property. Rego Park I will then be vacant and we are currently exploring sale and development opportunities for the property.

Current wording

In the fourth quarter of 2024, we entered into ten-year leases with Burlington and Marshalls to relocate them to our Rego Park II property in 2025 from our Rego Park I property. Rego Park I will then be vacant and we are currently exploring sale and development opportunities for the property.

Previous wording

Bloomberg L.P. (“Bloomberg”) accounted for revenue of $32,205,000 and $29,963,000 for the three months ended March 31, 2025 and 2024, respectively, representing approximately 59% and 49% of our rental revenues in each period, respectively. No other tenant accounted for more than 10% of our rental revenues. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data.

Current wording

Bloomberg L.P. (“Bloomberg”) accounted for revenue of $64,446,000 and $60,946,000 for the six months ended June 30, 2025 and 2024, respectively, representing approximately 61% and 53% of our rental revenues in each period, respectively. No other tenant accounted for more than 10% of our rental revenues. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data.

Previous wording

Operating expenses were $25,564,000 for the three months ended March 31, 2025, compared to $25,263,000 for the prior year’s three months, an increase of $301,000. This was primarily due to $840,000 of higher real estate taxes partially offset by higher capitalized expenses of $633,000.

Current wording

Operating expenses were $25,934,000 for the three months ended June 30, 2025, compared to $24,991,000 for the prior year’s three months, an increase of $943,000. This was primarily due to (i) $983,000 of higher operating expenses subject to recovery, including real estate taxes and common area maintenance and (ii) $454,000 of higher operating expenses not subject to recovery, partially offset by (iii) higher capitalized expenses of $494,000.

Previous wording

Interest and other income was $3,945,000 for the three months ended March 31, 2025, compared to $7,162,000 for the prior year’s three months, a decrease of $3,217,000. This was primarily due to a decrease in average interest rates and investment balances.

Current wording

Interest and other income was $3,928,000 for thethree months ended June 30, 2025, compared to $7,054,000 for the prior year’s three months, a decrease of $3,126,000. This was primarily due to a decrease in average interest rates and investment balances.

Previous wording

Interest and debt expense was $10,794,000 for the three months ended March 31, 2025, compared to $16,234,000 for the prior year’s three months, a decrease of $5,440,000. This was primarily due to (i) $3,225,000 of lower interest rate cap premium amortization, (ii) $1,500,000 from the downsize of the 731 Lexington Office loan in September 2024 and (iii) $1,105,000 from lower rates, partially offset by (iv) $390,000 of higher deferred debt issuance cost amortization.

Current wording

Interest and debt expense was $12,801,000 for thethree months ended June 30, 2025, compared to $16,219,000 for the prior year’s three months, a decrease of $3,418,000. This was primarily due to (i) $2,361,000 of lower interest rate cap premium amortization, (ii) $1,590,000 from the downsize of the 731 Lexington Office loan in September 2024 and (iii) $1,654,000 from lower rates, partially offset by (iv) $1,937,000 from the expiration of the 731 Lexington Retail swap in May 2025 and (v) $250,000 of higher deferred debt issuance cost amortization.

Previous wording

Rental revenues were $54,915,000 for the three months ended March 31, 2025, compared to $61,397,000 for the prior year’s three months, a decrease of $6,482,000. This was primarily due to (i) $8,902,000 of lower straight-line rental revenue from IKEA’s lease expiration at Rego Park I and (ii) $1,337,000 of lower straight-line rental revenue from Home Depot’s lease expiration at 731 Lexington Avenue, partially offset by (iii) $1,755,000 of payments received for tenant receivables that were previously written off and (iv) $1,740,000 of higher straight-line rental revenue from Bloomberg’s lease extension at 731 Lexington Avenue.

Current wording

Rental revenues were $106,504,000 for the six months ended June 30, 2025, compared to $114,789,000 for the prior year’s six months, a decrease of $8,285,000. This was primarily due to (i) $9,001,000 of lower straight-line rental revenue from IKEA’s lease expiration at Rego Park I and (ii) $6,285,000 of lower rental revenue from Home Depot’s lease expiration at 731 Lexington Avenue, partially offset by (iii) $2,583,000 of higher recoveries of operating expenses and capital expenditures, (iv) $2,321,000 of higher straight-line rental revenue from Bloomberg’s lease extension at 731 Lexington Avenue, (v) $1,705,000 of payments received for tenant receivables that were previously written off and (vi) $1,305,000 of higher straight-line rental revenue from new tenants at Rego Park II.

Previous wording

Depreciation and amortization was $8,599,000 for the three months ended March 31, 2025, compared to $9,477,000 for the prior year’s three months, a decrease of $878,000. This was due to a decrease of $1,110,000 associated with the accelerated depreciation and amortization related to IKEA’s lease expiration at Rego Park I in the prior year’s three months, partially offset by $232,000 of higher depreciation expense on capital projects placed into service.

Current wording

Depreciation and amortization was $17,306,000 for the six months ended June 30, 2025, compared to $18,174,000 for the prior year’s six months, a decrease of $868,000. This was primarily due to the accelerated depreciation and amortization related to IKEA’s lease expiration at Rego Park I in the prior year’s six months.

Previous wording

As of March 31, 2025, we had $377,645,000 of liquidity comprised of cash and cash equivalents and restricted cash. The ongoing challenges posed by fluctuations in interest rates and the effects of inflation could adversely affect our cash flow from continuing operations but we anticipate that cash flow from continuing operations over the next twelve months, together with existing cash balances, will be adequate to fund our business operations, cash dividends to stockholders, debt service and capital expenditures. We may refinance our maturing debt as it comes due or choose to pay it down. However, there can be no assurance that additional financing or capital will be available to refinance our debt, or that the terms will be acceptable or advantageous to us.

Current wording

As of June 30, 2025, we had $390,305,000 of liquidity comprised of cash and cash equivalents and restricted cash. The ongoing challenges posed by fluctuations in interest rates and the effects of inflation could adversely affect our cash flow from continuing operations but we anticipate that cash flow from continuing operations over the next twelve months, together with existing cash balances, will be adequate to fund our business operations, cash dividends to stockholders, debt service and capital expenditures. We may refinance our maturing debt as it comes due or choose to pay it down. However, there can be no assurance that additional financing or capital will be available to refinance our debt, or that the terms will be acceptable or advantageous to us.

Previous wording

Cash and cash equivalents and restricted cash were $377,645,000 as of March 31, 2025, compared to $393,836,000 as of December 31, 2024, a decr ease of $16,191,000. This decrease resulted from (i) $23,890,000 of net cash used in financing activities and (ii) $8,021,000 of net cash used in investing activities, partially offset by (iii) $15,720,000 of net cash provided by operating activities.

Current wording

Cash and cash equivalents and restricted cash were $390,305,000 as of June 30, 2025, compared to $393,836,000 as of December 31, 2024, a decr ease of $3,531,000. This decrease resulted from (i) $48,185,000 of net cash used in financing activities and (ii) $14,633,000 of net cash used in investing activities, partially offset by (iii) $59,287,000 of net cash provided by operating activities.

Previous wording

Net cash used in financing activities of $23,890,000 was comprised of $23,101,000 of dividends paid and $789,000 of debt repayments.

Current wording

Net cash used in financing activities of $48,185,000 was comprised of (i) $46,202,000 of dividends paid and (ii) $1,983,000 of debt repayments.

Previous wording

Net cash used in investing activities of $8,021,000 was comprised of construction in progress and real estate additions.

Current wording

Net cash used in investing activities of $14,633,000 was comprised of construction in progress and real estate additions.

Previous wording

Net cash provided by operating activities of $15,720,000 was comprised of (i) net income of $12,312,000 and (ii) adjustments for non-cash items of $12,743,000, partially offset by (iii) the net change in operating assets and liabilities of $9,335,000. The adjustments for non-cash items were comprised of (i) depreciation and amortization (including amortization of debt issuance costs) of $9,389,000, (ii) other non-cash adjustments of $2,158,000, (iii) straight-lining of rents of $1,020,000 and (iv) interest rate cap premium amortization of $176,000.

Current wording

Net cash provided by operating activities of $59,287,000 was comprised of (i) net income of $18,432,000, (ii) adjustments for non-cash items of $25,958,000 and (iii) the net change in operating assets and liabilities of $14,897,000. The adjustments for non-cash items were comprised of (i) depreciation and amortization (including amortization of debt issuance costs) of $18,888,000, (ii) other non-cash adjustments of $4,336,000, (iii) straight-lining of rents of $2,018,000, (iv) stock-based compensation expense of $394,000 and (v) interest rate cap premium amortization of $322,000.

Previous wording

Cash and cash equivalents and restricted cash were $547,399,000 as of March 31, 2024, compared to $552,977,000 as of December 31, 2023, a decr ease of $5,578,000. This decrease resulted from (i) $23,088,000 of net cash used in financing activities, partially offset by (ii) $16,825,000 of net cash provided by operating activities and (iii) $685,000 of net cash provided by investing activities.

Current wording

Cash and cash equivalents and restricted cash were $524,377,000 as of June 30, 2024, compared to $552,977,000 as of December 31, 2023, a decr ease of $28,600,000. This decrease resulted from (i) $57,308,000 of net cash used in financing activities, partially offset by (ii) $28,327,000 of net cash provided by operating activities and (iii) $381,000 of net cash provided by investing activities.

Previous wording

Net cash provided by operating activities of $16,825,000 was comprised of (i) net income of $16,109,000 and (ii) adjustments for non-cash items of $19,853,000, partially offset by (iii) the net change in operating assets and liabilities of $19,137,000. The adjustments for non-cash items were comprised of (i) depreciation and amortization (including amortization of debt issuance costs) of $9,917,000, (ii) straight-lining of rents of $9,355,000 and (iii) interest rate cap premium amortization of $3,401,000, partially offset by (iv) other non-cash adjustments of $2,820,000.

Current wording

Net cash provided by operating activities of $28,327,000 was comprised of (i) net income of $24,489,000 and (ii) adjustments for non-cash items of $32,748,000, partially offset by (iii) the net change in operating assets and liabilities of $28,910,000. The adjustments for non-cash items were comprised of (i) depreciation and amortization (including amortization of debt issuance costs) of $19,118,000, (ii) straight-lining of rents of $11,076,000, (iii) interest rate cap premium amortization of $5,908,000 and (iv) stock-based compensation expense of $450,000, partially offset by (v) other non-cash adjustments of $3,804,000.

Previous wording

Net cash provided by investing activities of $685,000 was comprised of $3,160,000 of proceeds from an interest rate cap, partially offset by construction in progress and real estate additions of $2,475,000.

Current wording

Net cash provided by investing activities of $381,000 was comprised of $6,563,000 of proceeds from an interest rate cap, partially offset by construction in progress and real estate additions of $6,182,000.

Previous wording

FFO (non-GAAP) for the quarters ended March 31, 2025 and 2024

Current wording

FFO (non-GAAP) for the three and six months ended June 30, 2025 and 2024