What changed in this filing

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Item 1. Financial Statements

2020-11-02 compared with 2020-08-03 · 150 added, 112 removed, 303 unchanged (46% of the section changed)

4 unchanged sentences

(Amounts in thousands, except share and per share amounts)

June 30, 2020

December 31, 2019

ASSETS September 30, 2020 December 31, 2019

Real estate, at cost:

$ 44,971 $ 44,971

Buildings and leasehold improvements

986,589 984,053

Development and construction in progress

33,437 12,318

Total 1,064,997 1,041,342

Accumulated depreciation and amortization ( 343,984 ) ( 324,499 )

7 unchanged sentences

of $ 30,073 and $ 32,374 , respectively

38,097 41,123

Other assets 40,257 6,691

$ 1,327,905 $ 1,265,511

LIABILITIES AND EQUITY

17 unchanged sentences

Accumulated other comprehensive loss ( 42 ) ( 49 )

208,879 253,883

Treasury stock:

66,160 shares, at cost

( 368 ) ( 368 )

Total equity 208,511 253,515

$ 1,327,905 $ 1,265,511

See notes to consolidated financial statements (unaudited).

3 unchanged sentences

(Amounts in thousands, except share and per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 2020 2019

Rental revenues $ 43,499 $ 57,760 $ 143,087 $ 170,470

Operating, including fees to Vornado of $ 1,177 , $ 1,310 , $ 3,795 and $ 3,930 respectively

( 22,448 ) ( 23,389 ) ( 63,979 ) ( 66,905 )

Depreciation and amortization ( 7,587 ) ( 7,831 ) ( 23,129 ) ( 23,528 )

General and administrative, including management fees to Vornado of $595 and $1,190 in each three and six month period, respectively

General and administrative, including management fees to Vornado of $ 595 and $ 1,785 in each three and nine month period, respectively

( 1,386 ) ( 1,333 ) ( 4,948 ) ( 4,471 )

Total expenses ( 31,421 ) ( 32,553 ) ( 92,056 ) ( 94,904 )

1 unchanged sentence

Interest and debt expense

( 4,463 ) ( 9,772 ) ( 19,208 ) ( 30,096 )

Change in fair value of marketable securities

( 1,231 ) ( 1,017 ) ( 10,789 ) ( 6,257 )

Net income $ 6,604 $ 16,493 $ 23,507 $ 45,641

Net income per common share - basic and diluted $ 1.29 $ 3.22 $ 4.59 $ 8.92

5 unchanged sentences

(Amounts in thousands)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 2020 2019

Net income $ 6,604 $ 16,493 $ 23,507 $ 45,641

Other comprehensive (loss) income:

6 unchanged sentences

(Amounts in thousands, except per share amounts)

Comprehensive Loss

Three Months Ended June 30, 2020

Balance, March 31, 2020

Capital Retained

Earnings Accumulated

Comprehensive Loss Treasury

Stock Total Equity

Shares Amount

Three Months Ended September 30, 2020

Balance, June 30, 2020 5,173 $ 5,173 $ 32,965 $ 187,229 $ ( 28 ) $ ( 368 ) $ 224,971

Net income — — — 6,604 — — 6,604

Dividends paid ($ 4.50 per common share)

— — — ( 23,050 ) — — ( 23,050 )

Change in fair value of interest rate cap — — — — ( 14 ) — ( 14 )

Deferred stock unit grants

Balance, September 30, 2020 5,173 $ 5,173 $ 32,965 $ 170,783 $ ( 42 ) $ ( 368 ) $ 208,511

Three Months Ended September 30, 2019

Balance, June 30, 2019 5,173 $ 5,173 $ 32,365 $ 231,535 $ ( 95 ) $ ( 368 ) $ 268,610

Three Months Ended June 30, 2019

Balance, March 31, 2019

Net income — — — 16,493 — — 16,493

Dividends paid ($ 4.50 per common share)

— — — ( 23,034 ) — — ( 23,034 )

Change in fair value of interest rate cap

Deferred stock unit grants

Balance, June 30, 2019

Comprehensive Loss

Six Months Ended June 30, 2020

— — — — 22 — 22

Balance, September 30, 2019 5,173 $ 5,173 $ 32,365 $ 224,994 $ ( 73 ) $ ( 368 ) $ 262,091

Capital Retained

Earnings Accumulated

Comprehensive Loss Treasury

Stock Total Equity

Shares Amount

Nine Months Ended September 30, 2020

Balance, December 31, 2019 5,173 $ 5,173 $ 32,365 $ 216,394 $ ( 49 ) $ ( 368 ) $ 253,515

Net income — — — 23,507 — — 23,507

Dividends paid ($ 13.50 per common share)

— — — ( 69,118 ) — — ( 69,118 )

Change in fair value of interest rate cap — — — — 7 — 7

Deferred stock unit grants — — 600 — — — 600

Balance, June 30, 2020

Six Months Ended June 30, 2019

Balance, September 30, 2020 5,173 $ 5,173 $ 32,965 $ 170,783 $ ( 42 ) $ ( 368 ) $ 208,511

Nine Months Ended September 30, 2019

Balance, December 31, 2018 5,173 $ 5,173 $ 31,971 $ 248,443 $ ( 127 ) $ ( 368 ) $ 285,092

Net income — — — 45,641 — — 45,641

Dividends paid ($ 13.50 per common share)

— — — ( 69,090 ) — — ( 69,090 )

Change in fair value of interest rate cap

— — — — 54 — 54

Deferred stock unit grants — — 394 — — — 394

Balance, June 30, 2019

Balance, September 30, 2019 5,173 $ 5,173 $ 32,365 $ 224,994 $ ( 73 ) $ ( 368 ) $ 262,091

See notes to consolidated financial statements (unaudited).

3 unchanged sentences

(Amounts in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES 2020 2019

Net income $ 23,507 $ 45,641

Adjustments to reconcile net income to net cash provided by operating activities:

7 unchanged sentences

Tenant and other receivables ( 4,886 ) ( 1,549 )

Other assets ( 33,731 ) 7,957

Amounts due to Vornado ( 697 ) 3,981

9 unchanged sentences

Proceeds from borrowing

Debt repayments ( 50,000 ) —

Net cash provided by (used in) financing activities 23,910 ( 69,105 )

Net increase (decrease) in cash and cash equivalents and restricted cash

Net increase in cash and cash equivalents and restricted cash 55,801 24,282

Cash and cash equivalents and restricted cash at beginning of period 313,977 289,495

11 unchanged sentences

Liability for real estate additions, including $ 456 and $ 18 for development fees due to Vornado in 2020 and 2019, respectively

Write-off of fully amortized and/or depreciated assets

$ 3,622 $ 233

Write-off of fully depreciated assets 457 —

Lease liability arising from the recognition of right-of-use asset

2 unchanged sentences

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Alexander’s, Inc.

ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties.

4 unchanged sentences

COVID-19 Pandemic

In December 2019, a novel strain of coronavirus (“COVID-19”) was identified in Wuhan, China and by March 11, 2020, the World Health Organization had declared it a global pandemic.

Many states in the U.S., including New York and New Jersey, implemented stay-at-home orders for all “non-essential” business and activity in an aggressive effort to curb the spread of the virus.

In June 2020, the New York City metropolitan area began a phased re-opening of the businesses that were previously ordered to close, with limitations on occupancy and certain other restrictions.

It is uncertain as to how long these restrictions will continue or if additional restrictions or closures will be imposed.

As a result of the COVID-19 pandemic, the U.S.

economy has suffered and there has been significant volatility in the financial markets.

industries and businesses have been negatively affected and millions of people have filed for unemployment.

Our properties, which are all located in the greater New York City metropolitan area, have been adversely affected as a result of the COVID-19 pandemic and the preventive measures taken to help curb the spread of the virus.

Other than grocery stores and other “essential” businesses, all of our retail tenants closed their stores in March 2020 and although substantially all have re-opened in the latter part of June 2020, when the phased re-opening began, there are limitations on occupancy and other restrictions that limit their ability to resume full operations.

Because certain of our redevelopment projects are deemed “non-essential,” they were temporarily paused in March 2020 due to New York State executive orders and resumed under updated safety guidelines once the orders were lifted in June 2020.

Our business has been adversely affected by the ongoing COVID-19 pandemic.

In March 2020, our “non-essential” retail tenants were ordered to temporarily close and although substantially all re-opened in the latter part of June 2020, there are limitations on occupancy and other restrictions that affect their ability to resume full operations.

In limited circumstances, we have agreed to and may continue to agree to rent deferrals and abatements for certain of our tenants.

1 unchanged sentence

See Note 4 - Recently Issued Accounting Literature for additional information.

Overall, we have collected approximately 89 % of rent billed for the quarter ended June 30, 2020 ( 92 % including rent deferrals under agreements which generally require repayment in monthly installments over a period of time not to exceed twelve months), including 100 % for our office tenant, approximately 76 % for our retail tenants ( 83 % including rent deferrals) and approximately 96 % for our residential tenants.

Based on our assessment of the probability of collecting the rent for certain tenants, we have written off as uncollectible $ 1,022,000 resulting in a reduction of rental revenues during the three and six months ended June 30, 2020.

In addition, we have written off receivables arising from the straight-lining of rents of $ 4,247,000 related to these tenants resulting in a reduction of rental revenues during the three and six months ended June 30, 2020.

Overall, we have collected approximately 95 % of rent billed for the quarter ended September 30, 2020 ( 96 % including rent deferrals under agreements which generally require repayment in monthly installments over a period of time not to exceed twelve months), including 100 % for our office tenant, approximately 87 % for our retail tenants ( 89 % including rent deferrals) and approximately 97 % for our residential tenants.

On September 10, 2020, Century 21, which leases 135,000 square feet at our Rego Park II shopping center ($ 6,400,000 of annual revenue), filed for Chapter 11 bankruptcy.

There are $ 1,619,000 of unamortized deferred leasing costs on our consolidated balance sheet related to Century 21 as of September 30, 2020.

Based on our assessment of the probability of collecting rent from certain tenants, we have written off as uncollectible $ 3,100,000 and $ 4,122,000 for the three and nine months ended September 30, 2020, respectively, resulting in a reduction of rental revenues during these periods.

Of these amounts, $ 2,716,000 in each period is attributable to Century 21.

In addition, we have written off receivables arising from the straight-lining of rents related to these tenants of $ 6,590,000 and $ 10,837,000 for the three and nine months ended September 30, 2020, respectively, resulting in a reduction of rental revenues during these periods.

Of these amounts, $ 5,919,000 in each period is attributable to Century 21.

Prospectively, revenue recognition for these tenants will be based on actual amounts received.

5 unchanged sentences

These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Basis of Presentation - continued

We have made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated 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, 2020 are not necessarily indicative of the operating results for the full year.

The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the operating results for the full year.

We operate in one reportable segment.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Recently Issued Accounting Literature

6 unchanged sentences

Entities making the election will continue to recognize rental revenue on a straight-line basis for qualifying concessions.

During the three months ended June 30, 2020, in limited circumstances, we granted temporary rent deferrals and rent abatements to certain tenants.

In limited circumstances, we granted temporary rent deferrals and rent abatements to certain tenants as a result of the COVID-19 pandemic.

We have made a policy election in accordance with the Staff Q&A allowing us to not account for these rent concessions as lease modifications.

16 unchanged sentences

This revenue is recognized as the services are transferred in accordance with ASC 606.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Revenue Recognition - continued

The following is a summary of revenue sources for the three and six months ended June 30, 2020 and 2019.

Three Months Ended June 30,

Six Months Ended June 30,

The following is a summary of revenue sources for the three and nine months ended September 30, 2020 and 2019.

Three Months Ended September 30, Nine Months Ended September 30,

(Amounts in thousands) 2020 2019 2020 2019

3 unchanged sentences

Rental revenues $ 43,499 $ 57,760 $ 143,087 $ 170,470

The components of lease revenues for the three and six months ended June 30, 2020 and 2019 are as follows:

Three Months Ended June 30,

Six Months Ended June 30,

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Revenue Recognition - continued

The components of lease revenues for the three and nine months ended September 30, 2020 and 2019 are as follows:

Three Months Ended September 30, Nine Months Ended September 30,

(Amounts in thousands) 2020 2019 2020 2019

2 unchanged sentences

Lease revenues $ 41,394 $ 55,267 $ 137,479 $ 163,597

Bloomberg accounted for revenue of $ 53,180,000 and $ 53,676,000 for the six months ended June 30, 2020 and 2019, respectively, representing approximately 53 % and 48 % of our total revenues in each period, respectively.

Bloomberg accounted for revenue of $ 80,696,000 and $ 81,314,000 for the nine months ended September 30, 2020 and 2019, respectively, representing approximately 56 % and 48 % of our total revenues in each period, respectively.

No other tenant accounted for more than 10% of our total revenues.

3 unchanged sentences

Related Party Transactions

As of June 30, 2020 , Vornado owned 32.4 % of our outstanding common stock.

As of September 30, 2020, Vornado owned 32.4 % of our outstanding common stock.

We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable.

7 unchanged sentences

We also have agreements with Building Maintenance Services LLC, a wholly owned subsidiary of Vornado, to supervise (i) cleaning, engineering and security services at our 731 Lexington Avenue property and (ii) security services at our Rego Park I and Rego Park II properties and The Alexander apartment tower.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Related Party Transactions - continued

The following is a summary of fees to Vornado under the various agreements discussed above.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(Amounts in thousands) 2020 2019 2020 2019

1 unchanged sentence

Development fees 188 — 456 29

Leasing fees 113 1,422 172 4,168

Property management, cleaning, engineering and security fees

As of June 30, 2020 , the amounts due to Vornado were $ 659,000 for management, property management, cleaning, engineering and security fees and $ 337,000 for development fees.

1,074 1,239 3,519 3,683

$ 2,075 $ 3,361 $ 6,247 $ 9,980

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Related Party Transactions - continued

As of September 30, 2020, the amounts due to Vornado were $ 644,000 for management, property management, cleaning, engineering and security fees;

$ 524,000 for development fees;

and $ 10,000 for leasing fees.

As of December 31, 2019, the amounts due to Vornado were $ 795,000 for management, property management, cleaning, engineering and security fees;

2 unchanged sentences

Marketable Securities

As of June 30, 2020 and December 31, 2019, we owned 564,612 and 535,265 common shares, respectively, of The Macerich Company (“Macerich”) (NYSE:

As of September 30, 2020 and December 31, 2019, we owned 564,612 and 535,265 common shares, respectively, of The Macerich Company (“Macerich”) (NYSE:

The increase in shares owned was due to a dividend received in stock from Macerich during the three months ended June 30, 2020.

As of June 30, 2020 and December 31, 2019, the fair value of these shares was $ 5,065,000 and $ 14,409,000 , respectively, based on Macerich’s closing share price of $ 8.97 per share and $ 26.92 per share, respectively.

As of September 30, 2020 and December 31, 2019, the fair value of these shares was $ 3,834,000 and $ 14,409,000 , respectively, based on Macerich’s closing share price of $ 6.79 per share and $ 26.92 per share, respectively.

These shares are presented at fair value as “marketable securities” on our consolidated balance sheets and the gains and losses resulting from the mark-to-market of these securities are recognized in current period earnings.

Mortgages Payable

On December 12, 2018, we completed a refinancing of our Rego Park II shopping center in the amount of $ 252,544,000 .

The loan is at LIBOR plus 1.35 % ( 1.53 % as of June 30, 2020) and matures in December 2025.

As of December 31, 2019, we had a participation in the mortgage in the amount of $ 195,708,000 which for GAAP purposes was netted against the mortgage balance.

On February 14, 2020, we reduced our participation in the mortgage loan to $ 50,000,000 and received cash proceeds of approximately $ 145,000,000 .

Therefore, the balance sheet amount of the mortgage loan was $ 202,544,000 and $ 56,836,000 as of June 30, 2020 and December 31, 2019, respectively.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Mortgages Payable - continued

The following is a summary of our outstanding mortgages payable as of June 30, 2020 and December 31, 2019.

On February 14, 2020, we reduced our participation in our Rego Park II shopping center loan to $ 50,000,000 and received cash proceeds of approximately $ 145,000,000 .

On September 14, 2020, we amended and extended the $ 350,000,000 mortgage loan on the retail condominium of our 731 Lexington Avenue property.

Under the terms of the amendment, we paid down the loan by $ 50,000,000 to $ 300,000,000 , extended the maturity date to August 2025 and guaranteed the interest payments and certain leasing costs.

The principal of the loan is non-recourse to us.

The interest-only loan remains at the same rate, LIBOR plus 1.40 % ( 1.56 % as of September 30, 2020).

On October 23, 2020, we completed a financing of The Alexander apartment tower in the amount of $ 94,000,000 .

The interest-only loan has a fixed rate of 2.63 % and matures in November 2027.

The following is a summary of our outstanding mortgages payable as of September 30, 2020 and December 31, 2019.

We may refinance our maturing debt as it comes due or choose to pay it down.

(Amounts in thousands)

Interest Rate at June 30, 2020

June 30, 2020

December 31, 2019

(Amounts in thousands) Maturity Interest Rate at September 30, 2020 September 30, 2020 December 31, 2019

First mortgages secured by:

731 Lexington Avenue, retail condominium (1)

04, 2021 4.72 % $ 68,000 $ 68,000

731 Lexington Avenue, office condominium (1)

11, 2024 1.05 % 500,000 500,000

731 Lexington Avenue, retail condominium (2)

05, 2025 1.56 % 300,000 350,000

Rego Park II shopping center (3)

12, 2025 1.50 % 202,544 56,836

1,070,544 974,836

Deferred debt issuance costs, net of accumulated amortization of $ 12,701 and $ 14,362 , respectively

Interest at LIBOR plus 1.40 % .

This loan matures on August 5, 2020;

we are in discussions with the lender.

( 4,141 ) ( 3,875 )

$ 1,066,403 $ 970,961

(1) Interest at LIBOR plus 0.90 %.

1 unchanged sentence

(2) Interest at LIBOR plus 1.40 %.

The amount of this loan is net of our loan participation of $ 50,000 and $ 195,708 as of June 30, 2020 and December 31, 2019, respectively.

(3) Interest at LIBOR plus 1.35 %.

The amount of this loan is net of our loan participation of $ 50,000 and $ 195,708 as of September 30, 2020 and December 31, 2019, respectively.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Stock-Based Compensation

7 unchanged sentences

The DSUs vested immediately and accordingly, were expensed on the date of grant, but the shares of common stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Company’s Board of Directors.

As of June 30, 2020, there were 14,916 DSUs outstanding and 490,871 shares were available for future grant under the Plan.

As of September 30, 2020, there were 14,916 DSUs outstanding and 490,871 shares were available for future grant under the Plan.

Fair Value Measurements

6 unchanged sentences

In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Fair Value Measurements - continued

Financial Assets and Liabilities Measured at Fair Value

Financial assets measured at fair value on our consolidated balance sheets as of June 30, 2020 and December 31, 2019, consist of marketable securities, which are presented in the table below based on their level in the fair value hierarchy, and an interest rate cap, which fair value was insignificant as of June 30, 2020 and December 31, 2019.

There were no financial liabilities measured at fair value as of June 30, 2020 and December 31, 2019.

As of June 30, 2020

(Amounts in thousands)

Financial assets measured at fair value on our consolidated balance sheets as of September 30, 2020 and December 31, 2019, consist of marketable securities, which are presented in the table below based on their level in the fair value hierarchy, and an interest rate cap, which fair value was insignificant as of September 30, 2020 and December 31, 2019.

There were no financial liabilities measured at fair value as of September 30, 2020 and December 31, 2019.

As of September 30, 2020

(Amounts in thousands) Total Level 1 Level 2 Level 3

Marketable securities $ 3,834 $ 3,834 $ — $ —

As of December 31, 2019

(Amounts in thousands)

(Amounts in thousands) Total Level 1 Level 2 Level 3

Marketable securities $ 14,409 $ 14,409 $ — $ —

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Fair Value Measurements - continued

Financial Assets and Liabilities not Measured at Fair Value

2 unchanged sentences

The fair value of our mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist, and is classified as Level 2.

The table below summarizes the carrying amounts and fair values of these financial instruments as of June 30, 2020 and December 31, 2019.

As of June 30, 2020

As of December 31, 2019

(Amounts in thousands)

Carrying Amount

The table below summarizes the carrying amounts and fair values of these financial instruments as of September 30, 2020 and December 31, 2019.

As of September 30, 2020 As of December 31, 2019

(Amounts in thousands) Carrying

Value Carrying

Cash equivalents

$ 318,260 $ 318,260 $ 263,688 $ 263,688

Mortgages payable (excluding deferred debt issuance costs, net)

$ 1,070,544 $ 1,032,000 $ 974,836 $ 974,000

Commitments and Contingencies

8 unchanged sentences

We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Commitments and Contingencies - continued

Our mortgage loans are non-recourse to us and contain customary covenants requiring us to maintain insurance.

7 unchanged sentences

If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $ 68,000,000 over the remaining 20 -year lease term.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Commitments and Contingencies - continued

Rego Park I Litigation

13 unchanged sentences

On February 16, 2018, the New York City Tax Appeals Tribunal (the “Tribunal”) overturned the January 2017 determination.

The Vornado joint venture appealed the Tribunal’s decision to the Appellate Division of the Supreme Court of the

State of New York and on April 25, 2019, the Tribunal’s decision was unanimously upheld.

The Vornado joint venture appealed the Tribunal’s decision to the Appellate Division of the Supreme Court of the State of New York and on April 25, 2019, the Tribunal’s decision was unanimously upheld.

The Vornado joint venture filed a motion to reargue the Appellate Division’s decision or for leave to appeal to the New York State Court of Appeals.

3 unchanged sentences

Letters of Credit

Approximately $ 1,030,000 of standby letters of credit were issued and outstanding as of June 30, 2020 .

Approximately $ 1,030,000 of standby letters of credit were issued and outstanding as of September 30, 2020.

There are various other legal actions against us in the ordinary course of business.

In our opinion, the outcome of such matters in the aggregate will not have a material effect on our financial position, results of operations or cash flows.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Earnings Per Share

2 unchanged sentences

Diluted income per share is determined using the weighted average shares of common stock outstanding during the period, and assumes all potentially dilutive securities were converted into common shares at the earliest date possible.

There were no potentially dilutive securities outstanding during the three and six months ended June 30, 2020 and 2019.

Three Months Ended June 30,

Six Months Ended June 30,

There were no potentially dilutive securities outstanding during the three and nine months ended September 30, 2020 and 2019.

Three Months Ended September 30, Nine Months Ended September 30,

(Amounts in thousands, except share and per share amounts)

2020 2019 2020 2019

Net income $ 6,604 $ 16,493 $ 23,507 $ 45,641

Weighted average shares outstanding – basic and diluted

5,122,206 5,118,698 5,120,490 5,118,030

Net income per common share – basic and diluted $ 1.29 $ 3.22 $ 4.59 $ 8.92

3 unchanged sentences

We have reviewed the accompanying consolidated balance sheet of Alexander’s, Inc.

and subsidiaries (the “Company”) as of June 30, 2020, the related consolidated statements of income, comprehensive income and changes in equity, for the three-month and six-month periods ended June 30, 2020 and 2019, and of cash flows for the six-month periods ended June 30, 2020 and 2019, and the related notes (collectively referred to as the “interim financial information”).

and subsidiaries (the “Company”) as of September 30, 2020, the related consolidated statements of income, comprehensive income and changes in equity, for the three-month and nine-month periods ended September 30, 2020 and 2019, and of cash flows for the nine-month periods ended September 30, 2020 and 2019, and the related notes (collectively referred to as the “interim financial information”).

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

12 unchanged sentences

New York, New York

August 3, 2020

November 2, 2020

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements