Item 1. Financial Statements
Item 1. Financial Statements
ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Amounts in thousands, except share and per share amounts)
As of
ASSETS March 31, 2024 December 31, 2023
Real estate, at cost:
Land $ 32,271 $ 32,271
Buildings and leasehold improvements 1,035,376 1,034,068
Development and construction in progress 2,172 281
Total 1,069,819 1,066,620
Accumulated depreciation and amortization ( 423,844 ) ( 415,903 )
Real estate, net 645,975 650,717
Cash and cash equivalents 526,340 531,855
Restricted cash 21,059 21,122
Tenant and other receivables 5,729 6,076
Receivable arising from the straight-lining of rents 115,511 124,866
Deferred leasing costs, net, including unamortized leasing fees to Vornado
of $ 18,282 and $ 19,540 , respectively
23,366 24,888
Other assets 53,294 44,156
$ 1,391,274 $ 1,403,680
LIABILITIES AND EQUITY
Mortgages payable, net of deferred debt issuance costs $ 1,092,952 $ 1,092,551
Amounts due to Vornado 493 715
Accounts payable and accrued expenses 46,589 51,750
Other liabilities 21,102 21,007
Total liabilities 1,161,136 1,166,023
Commitments and contingencies
Preferred stock: $ 1.00 par value per share; authorized, 3,000,000 shares;
issued and outstanding, no ne
— —
Common stock: $ 1.00 par value per share; authorized, 10,000,000 shares;
issued, 5,173,450 shares; outstanding, 5,107,290 shares
5,173 5,173
Additional capital 34,315 34,315
Retained earnings 175,357 182,336
Accumulated other comprehensive income 15,661 16,201
230,506 238,025
Treasury stock: 66,160 shares, at cost
( 368 ) ( 368 )
Total equity 230,138 237,657
$ 1,391,274 $ 1,403,680
See notes to consolidated financial statements (unaudited).
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ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Amounts in thousands, except share and per share amounts)
For the Three Months Ended March 31,
2024 2023
REVENUES
Rental revenues $ 61,397 $ 52,941
EXPENSES
Operating, including fees to Vornado of $ 1,759 and $ 1,539 , respectively
( 25,263 ) ( 24,944 )
Depreciation and amortization ( 9,477 ) ( 7,478 )
General and administrative, including management fees to Vornado of $ 610 in each period
( 1,476 ) ( 1,359 )
Total expenses ( 36,216 ) ( 33,781 )
Interest and other income 7,162 4,319
Interest and debt expense ( 16,234 ) ( 12,253 )
Net income $ 16,109 $ 11,226
Net income per common share - basic and diluted $ 3.14 $ 2.19
Weighted average shares outstanding - basic and diluted 5,130,678 5,127,086
See notes to consolidated financial statements (unaudited).
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ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(Amounts in thousands)
For the Three Months Ended March 31,
2024 2023
Net income $ 16,109 $ 11,226
Other comprehensive loss:
Change in fair value of interest rate derivatives and other ( 540 ) ( 3,644 )
Comprehensive income $ 15,569 $ 7,582
See notes to consolidated financial statements (unaudited).
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ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
(Amounts in thousands, except per share amounts)
Additional
Capital Retained
Earnings Accumulated
Other
Comprehensive Income Treasury
Stock Total Equity
Common Stock
Shares Amount
For the Three Months Ended March 31, 2024
Balance, December 31, 2023 5,173 $ 5,173 $ 34,315 $ 182,336 $ 16,201 $ ( 368 ) $ 237,657
Net income — — — 16,109 — — 16,109
Dividends paid ($ 4.50 per common share)
— — — ( 23,088 ) — — ( 23,088 )
Change in fair value of interest rate derivatives — — — — ( 540 ) — ( 540 )
Balance, March 31, 2024 5,173 $ 5,173 $ 34,315 $ 175,357 $ 15,661 $ ( 368 ) $ 230,138
For the Three Months Ended March 31, 2023
Balance, December 31, 2022 5,173 $ 5,173 $ 33,865 $ 172,243 $ 25,586 $ ( 368 ) $ 236,499
Net income — — — 11,226 — — 11,226
Dividends paid ($ 4.50 per common share)
— — — ( 23,072 ) — — ( 23,072 )
Change in fair value of interest rate derivatives and other — — — — ( 3,644 ) — ( 3,644 )
Balance, March 31, 2023 5,173 $ 5,173 $ 33,865 $ 160,397 $ 21,942 $ ( 368 ) $ 221,009
See notes to consolidated financial statements (unaudited).
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ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Amounts in thousands)
For the Three Months Ended March 31,
CASH FLOWS FROM OPERATING ACTIVITIES 2024 2023
Net income $ 16,109 $ 11,226
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including amortization of debt issuance costs 9,917 7,899
Straight-lining of rents 9,355 2,067
Interest rate cap premium amortization 3,401 —
Other non-cash adjustments ( 2,820 ) 1,741
Change in operating assets and liabilities:
Tenant and other receivables 347 ( 959 )
Other assets ( 13,357 ) 2,959
Amounts due to Vornado ( 236 ) ( 128 )
Accounts payable and accrued expenses ( 5,886 ) ( 4,063 )
Other liabilities ( 5 ) ( 6 )
Net cash provided by operating activities 16,825 20,736
CASH FLOWS FROM INVESTING ACTIVITIES
Construction in progress and real estate additions ( 2,475 ) ( 2,060 )
Proceeds from maturities of U.S. Treasury bills — 166,832
Proceeds from interest rate cap 3,160 —
Net cash provided by investing activities 685 164,772
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid ( 23,088 ) ( 23,072 )
Debt issuance costs — ( 38 )
Net cash used in financing activities ( 23,088 ) ( 23,110 )
Net (decrease) increase in cash and cash equivalents and restricted cash ( 5,578 ) 162,398
Cash and cash equivalents and restricted cash at beginning of period 552,977 214,478
Cash and cash equivalents and restricted cash at end of period $ 547,399 $ 376,876
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents at beginning of period $ 531,855 $ 194,933
Restricted cash at beginning of period 21,122 19,545
Cash and cash equivalents and restricted cash at beginning of period $ 552,977 $ 214,478
Cash and cash equivalents at end of period $ 526,340 $ 356,507
Restricted cash at end of period 21,059 20,369
Cash and cash equivalents and restricted cash at end of period $ 547,399 $ 376,876
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest $ 15,356 $ 11,476
NON-CASH TRANSACTIONS
Liability for real estate additions, including $ 14 for development fees due
to Vornado in 2024
$ 2,708 $ 1,481
Write-off of fully depreciated assets 15 4,044
Reclassification of asset held for sale — 13,794
See notes to consolidated financial statements (unaudited).
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ALEXANDER’S, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Organization
Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to “we,” “us,” “our,” “Company” and “Alexander’s” refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO). We have five properties in New York City.
2. Basis of Presentation
The accompanying consolidated financial statements are unaudited and include the accounts of Alexander’s and its consolidated subsidiaries. All adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These 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, 2023, as filed with the SEC.
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 months ended March 31, 2024 are not necessarily indicative of the operating results for the full year.
We operate in one reportable segment.
3. Recently Issued Accounting Literature
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The update also requires disclosure regarding the chief operating decision maker and expands the interim segment disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-07 on our consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-09 on our consolidated financial statements.
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ALEXANDER’S, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
4. Revenue Recognition
The following is a summary of revenue sources for the three months ended March 31, 2024 and 2023.
For the Three Months Ended March 31,
(Amounts in thousands) 2024 2023
Lease revenues $ 59,346 $ 51,036
Parking revenue 1,130 1,096
Tenant services 921 809
Rental revenues $ 61,397 $ 52,941
The components of lease revenues for the three months ended March 31, 2024 and 2023 are as follows:
For the Three Months Ended March 31,
(Amounts in thousands) 2024 2023
Fixed lease revenues $ 42,534 $ 34,724
Variable lease revenues 16,812 16,312
Lease revenues $ 59,346 $ 51,036
Bloomberg L.P. (“Bloomberg”) accounted for revenue of $ 29,963,000 and $ 29,516,000 for the three months ended March 31, 2024 and 2023, respectively, representing approximately 49 % and 56 % 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.
In May 2024, Alexander’s and Bloomberg reached an agreement to extend the leases covering approximately 947,000 square feet at our 731 Lexington Avenue property that were scheduled to expire in February 2029 for a term of eleven years to February 2040.
On December 3, 2022, IKEA closed its 112,000 square foot store at our Rego Park I property under a lease that was set to expire in December 2030. The lease included a right to terminate effective no earlier than March 16, 2026, subject to payment of rent through the termination date and an additional termination payment equal to the lesser of $ 10,000,000 or the amount of rent due under the remaining term. On September 27, 2023, we entered into a lease modification agreement with IKEA which accelerated its lease termination date to April 1, 2024. During the fourth quarter of 2023 and the first quarter of 2024, IKEA paid its remaining rent obligation through March 16, 2026 and the $ 10,000,000 termination payment .
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ALEXANDER’S, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
5. Related Party Transactions
Vornado
As of March 31, 2024, 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.
Management and Development Agreements
We pay Vornado an annual management fee equal to the sum of (i) $ 2,800,000 , (ii) 2 % of gross revenue from the Rego Park II shopping center, (iii) $ 0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $ 376,000 , escalating at 3 % per annum, for managing the common area of 731 Lexington Avenue. Vornado is also entitled to a development fee equal to 6 % of development costs, as defined.
Leasing and Other Agreements
Vornado also provides us with leasing services for a fee of 3 % of rent for the first ten years of a lease term, 2 % of rent for the eleventh through the twentieth year of a lease term, and 1 % of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants. Under the agreements in effect prior to May 1, 2024, in the event third-party real estate brokers were used, the fees to Vornado increased by 1 % and Vornado was responsible for the fees to the third-party real estate brokers (“Third-Party Lease Commissions”). On May 1, 2024, our Board of Directors approved amendments to the leasing agreements, subject to applicable lender consents, pursuant to which the Company is responsible for any Third-Party Lease Commissions and, in such circumstances, Vornado’s fee is 33 % of the applicable Third-Party Lease Commission.
Vornado is also entitled to a commission upon the sale of any of our assets equal to 3 % of gross proceeds, as defined, for asset sales less than $ 50,000,000 and 1 % of gross proceeds, as defined, for asset sales of $ 50,000,000 or more.
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. In addition, we have an agreement with a wholly owned subsidiary of Vornado to manage the parking garages at our Rego Park I and Rego Park II properties.
The following is a summary of fees earned by Vornado under the various agreements discussed above.
For the Three Months Ended March 31,
(Amounts in thousands) 2024 2023
Company management fees $ 700 $ 700
Development fees 15 —
Leasing fees 38 41
Property management, cleaning, engineering, parking and security fees 1,636 1,409
$ 2,389 $ 2,150
As of March 31, 2024, the amounts due to Vornado were $ 441,000 for management, property management, cleaning, engineering and security fees, $ 38,000 for leasing fees and $ 14,000 for development fees. As of December 31, 2023, the amounts due to Vornado were $ 646,000 for management, property management, cleaning, engineering and security fees and $ 69,000 for leasing fees.
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ALEXANDER’S, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
6. Mortgages Payable
The following is a summary of our outstanding mortgages payable as of March 31, 2024 and December 31, 2023. We may refinance our maturing debt as it comes due or choose to pay it down.
Interest Rate at March 31, 2024 Balance at
(Amounts in thousands) Maturity March 31, 2024 December 31, 2023
First mortgages secured by:
731 Lexington Avenue, office condominium (1)
Jun. 11, 2024 6.00 % $ 500,000 $ 500,000
731 Lexington Avenue, retail condominium (2)(3)
Aug. 05, 2025 1.76 % 300,000 300,000
Rego Park II shopping center (2)(4)
Dec. 12, 2025 5.60 % 202,544 202,544
The Alexander apartment tower Nov. 01, 2027 2.63 % 94,000 94,000
Total 1,096,544 1,096,544
Deferred debt issuance costs, net of accumulated amortization of $ 18,040 and $ 17,639 , respectively
( 3,592 ) ( 3,993 )
$ 1,092,952 $ 1,092,551
(1) Interest at the Prime Rate (capped at 6.00 % through loan maturity).
(2) Interest rate listed represents the rate in effect as of March 31, 2024 based on SOFR as of contractual reset date plus contractual spread, adjusted for hedging instruments as applicable.
(3) Interest at SOFR plus 1.51 % which was swapped to a fixed rate of 1.76 % through May 2025.
(4) Interest at SOFR plus 1.45 % (SOFR is capped at a rate of 4.15 % thr ough November 2024).
7. Fair Value Measurements
ASC Topic 820, Fair Value Measurement (“ASC 820”) defines fair value and establishes a framework for measuring fair value. ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities that are highly liquid and are actively traded in secondary markets; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 –unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. 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.
Financial Assets and Liabilities Measured at Fair Value
Financial assets measured at fair value on our consolidated balance sheet as of March 31, 2024 consist of interest rate derivatives, which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of March 31, 2024.
As of March 31, 2024
(Amounts in thousands) Total Level 1 Level 2 Level 3
Interest rate derivatives (included in other assets) $ 18,668 $ — $ 18,668 $ —
Financial assets measured at fair value on our consolidated balance sheet as of December 31, 2023 consist of interest rate derivatives, which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of December 31, 2023.
As of As of December 31, 2023
(Amounts in thousands) Total Level 1 Level 2 Level 3
Interest rate derivatives (included in other assets) $ 22,608 $ — $ 22,608 $ —
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ALEXANDER’S, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
7. Fair Value Measurements - continued
Interest Rate Derivatives
We recognize the fair value of all interest rate derivatives in “other assets” or “other liabilities” on our consolidated balance sheets and since all of our interest rate derivatives have been designated as cash flow hedges, changes in the fair value are recognized in other comprehensive income. The table below summarizes our interest rate derivatives, all of which hedge the interest rate risk attributable to the variable rate debt noted as of March 31, 2024 and December 31, 2023, respectively.
Fair Value as of As of March 31, 2024
(Amounts in thousands) March 31, 2024 December 31, 2023 Notional Amount Swapped Rate Expiration Date
Interest rate swap related to:
731 Lexington Avenue mortgage loan, retail condominium $ 14,878 $ 16,315 $ 300,000 1.76 % 05/25
Interest rate caps related to:
Rego Park II shopping center mortgage loan 1,293 1,370 202,544 (1) 11/24
731 Lexington Avenue mortgage loan, office condominium 2,497 4,923 500,000 (2) 06/24
Included in other assets $ 18,668 $ 22,608
(1) SOFR cap strike rate of 4.15 %.
(2) In June 2023, we purchased an interest rate cap for $ 11,258 , which capped the Prime Rate at 6.00 % ( 8.50 % as of March 31, 2024) through loan maturity.
Financial Assets and Liabilities not Measured at Fair Value
Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents and mortgages payable. Cash equivalents are carried at cost, which approximates fair value due to their short-term maturities and are classified as Level 1. 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 amount and fair value of these financial instruments as of March 31, 2024 and December 31, 2023, respectively.
As of March 31, 2024 As of December 31, 2023
(Amounts in thousands) Carrying
Amount Fair
Value Carrying
Amount Fair
Value
Assets:
Cash equivalents
$ 290,496 $ 290,496 $ 363,535 $ 363,535
Liabilities:
Mortgages payable (excluding deferred debt issuance costs, net) $ 1,096,544 $ 1,074,768 $ 1,096,544 $ 1,071,887
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ALEXANDER’S, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
8. Commitments and Contingencies
Insurance
We maintain general liability insurance with limits of $ 300,000,000 per occurrence and per property, of which the first $ 30,000,000 includes communicable disease coverage, and all-risk property and rental value insurance coverage with limits of $ 1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties and excluding communicable disease coverage.
Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027. Coverage for acts of terrorism (including NBCR acts) is up to $ 1.7 billion per occurrence and in the aggregate. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to FNSIC. For NBCR acts, FNSIC is responsible for a $ 316,000 deductible and 20 % of the balance of a covered loss, and the Federal government is responsible for the remaining 80 % of a covered loss. We are ultimately responsible for any loss incurred by FNSIC.
We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism or other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material.
Our loans contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance or refinance our properties.
Letters of Credit
Approximately $ 900,000 of standby letters of credit were issued and outstanding as of March 31, 2024.
Other
There are various legal actions brought against us from time-to-time in the ordinary course of business. In our opinion, the outcome of such pending matters in the aggregate will not have a material effect on our financial position, results of operations or cash flows.
9. Earnings Per Share
The following table sets forth the computation of basic and diluted income per share, including a reconciliation of net income and the number of shares used in computing basic and diluted income per share. Basic income per share is determined using the weighted average shares of common stock (including deferred stock units) outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock (including deferred stock units) 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 months ended March 31, 2024 and 2023.
For the Three Months Ended March 31,
(Amounts in thousands, except share and per share amounts)
2024 2023
Net income $ 16,109 $ 11,226
Weighted average shares outstanding – basic and diluted
5,130,678 5,127,086
Net income per common share – basic and diluted $ 3.14 $ 2.19
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of Alexander’s, Inc.
Results of Review of Interim Financial Information
We have reviewed the accompanying consolidated balance sheet of Alexander’s, Inc. and subsidiaries (the “Company”) as of March 31, 2024, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2024 and 2023, 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.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2023, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the year then ended (not presented herein); and in our report dated February 12, 2024, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2023, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.
Basis for Review Results
This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ DELOITTE & TOUCHE LLP
New York, New York
May 6, 2024
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