What changed in this filing

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Item 1. Financial Statements

2024-11-04 compared with 2024-08-05 · 55 added, 56 removed, 357 unchanged (24% of the section changed)

4 unchanged sentences

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

ASSETS June 30, 2024 December 31, 2023

ASSETS September 30, 2024 December 31, 2023

Real estate, at cost:

45 unchanged sentences

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

For the Three Months Ended June 30, For the Six Months Ended June 30,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

17 unchanged sentences

(Amounts in thousands)

For the Three Months Ended June 30, For the Six Months Ended June 30,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

Net income $ 6,678 $ 10,754 $ 31,167 $ 86,127

Other comprehensive (loss) income:

Other comprehensive loss:

Change in fair value of interest rate derivatives and other ( 5,408 ) ( 1,486 ) ( 9,308 ) ( 2,020 )

10 unchanged sentences

Shares Amount

For the Three Months Ended June 30, 2024

Balance, March 31, 2024 5,173 $ 5,173 $ 34,315 $ 175,357 $ 15,661 $ ( 368 ) $ 230,138

For the Three Months Ended September 30, 2024

Balance, June 30, 2024 5,173 $ 5,173 $ 34,765 $ 160,649 $ 12,301 $ ( 368 ) $ 212,520

Net income — — — 6,678 — — 6,678

2 unchanged sentences

Change in fair value of interest rate derivatives — — — — ( 5,408 ) — ( 5,408 )

Deferred stock unit grants — — 450 — — — 450

Balance, September 30, 2024 5,173 $ 5,173 $ 34,765 $ 144,226 $ 6,893 $ ( 368 ) $ 190,689

For the Three Months Ended September 30, 2023

Balance, June 30, 2023 5,173 $ 5,173 $ 34,315 $ 201,472 $ 25,052 $ ( 368 ) $ 265,644

For the Three Months Ended June 30, 2023

Balance, March 31, 2023 5,173 $ 5,173 $ 33,865 $ 160,397 $ 21,942 $ ( 368 ) $ 221,009

Net income — — — 10,754 — — 10,754

1 unchanged sentence

— — — ( 23,088 ) — — ( 23,088 )

Change in fair value of interest rate derivatives and other — — — — 3,110 — 3,110

Deferred stock unit grants — — 450 — — — 450

Balance, June 30, 2023 5,173 $ 5,173 $ 34,315 $ 201,472 $ 25,052 $ ( 368 ) $ 265,644

Change in fair value of interest rate derivatives — — — — ( 1,486 ) — ( 1,486 )

Balance, September 30, 2023 5,173 $ 5,173 $ 34,315 $ 189,138 $ 23,566 $ ( 368 ) $ 251,824

Capital Retained

3 unchanged sentences

Shares Amount

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

Balance, December 31, 2023 5,173 $ 5,173 $ 34,315 $ 182,336 $ 16,201 $ ( 368 ) $ 237,657

4 unchanged sentences

Deferred stock unit grants — — 450 — — — 450

Balance, June 30, 2024 5,173 $ 5,173 $ 34,765 $ 160,649 $ 12,301 $ ( 368 ) $ 212,520

For the Six Months Ended June 30, 2023

Balance, September 30, 2024 5,173 $ 5,173 $ 34,765 $ 144,226 $ 6,893 $ ( 368 ) $ 190,689

For the Nine Months Ended September 30, 2023

Balance, December 31, 2022 5,173 $ 5,173 $ 33,865 $ 172,243 $ 25,586 $ ( 368 ) $ 236,499

4 unchanged sentences

Deferred stock unit grants — — 450 — — — 450

Balance, June 30, 2023 5,173 $ 5,173 $ 34,315 $ 201,472 $ 25,052 $ ( 368 ) $ 265,644

Balance, September 30, 2023 5,173 $ 5,173 $ 34,315 $ 189,138 $ 23,566 $ ( 368 ) $ 251,824

See notes to consolidated financial statements (unaudited).

3 unchanged sentences

(Amounts in thousands)

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES 2024 2023

22 unchanged sentences

Purchase of interest rate cap — ( 11,258 )

Net cash provided by investing activities 381 318,550

Net cash (used in) provided by investing activities ( 3,273 ) 319,537

CASH FLOWS FROM FINANCING ACTIVITIES

Debt repayments ( 500,000 ) —

Proceeds from borrowing 400,000 —

Dividends paid ( 69,277 ) ( 69,232 )

Debt repayment ( 10,000 ) —

Debt issuance costs ( 6,547 ) ( 69 )

15 unchanged sentences

to Vornado in 2024

$ 6,143 $ 652

Write-off of fully depreciated assets 1,760 5,964

16 unchanged sentences

Actual results could differ from those estimates.

The results of operations for the three and six months ended June 30, 2024 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, 2024 are not necessarily indicative of the operating results for the full year.

We operate in one reportable segment.

16 unchanged sentences

Revenue Recognition

The following is a summary of revenue sources for the three and six months ended June 30, 2024 and 2023.

For the Three Months Ended June 30, For the Six Months Ended June 30,

The following is a summary of revenue sources for the three and nine months ended September 30, 2024 and 2023.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

(Amounts in thousands) 2024 2023 2024 2023

3 unchanged sentences

Rental revenues $ 55,675 $ 55,413 $ 170,464 $ 162,027

The components of lease revenues for the three and six months ended June 30, 2024 and 2023 are as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

The components of lease revenues for the three and nine months ended September 30, 2024 and 2023 are as follows:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

(Amounts in thousands) 2024 2023 2024 2023

3 unchanged sentences

Bloomberg L.P.

(“Bloomberg”) accounted for revenue of $ 60,946,000 and $ 59,177,000 for the six months ended June 30, 2024 and 2023, respectively, representing approximately 53 % and 56 % of our rental revenues in each period, respectively.

(“Bloomberg”) accounted for revenue of $ 93,179,000 and $ 89,863,000 for the nine months ended September 30, 2024 and 2023, respectively, representing approximately 55 % of our rental revenues in each period.

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

5 unchanged sentences

In connection with the lease extension, Bloomberg is entitled to a $ 113,618,000 tenant fund which is accounted for as a lease incentive under GAAP.

Accordingly, we recorded a deferred lease incentive asset of $ 113,618,000 , which is amortized as a reduction to rental revenues over the remaining term of the lease, and a corresponding liability.

These amounts are included in “Deferred leasing costs, net” and “Lease incentive liability,” respectively, on our consolidated balance sheet as of June 30, 2024.

Accordingly, during the second quarter of 2024, we recorded a deferred lease incentive asset of $ 113,618,000 , which is amortized as a reduction to rental revenues over the remaining term of the lease, and a corresponding liability.

These amounts are included in “Deferred leasing costs, net” and “Lease incentive liability,” respectively, on our consolidated balance sheet as of September 30, 2024.

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.

9 unchanged sentences

Related Party Transactions

As of June 30, 2024, Vornado owned 32.4 % of our outstanding common stock.

As of September 30, 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.

5 unchanged sentences

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.

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 one-third 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.

2 unchanged sentences

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

For the Three Months Ended June 30, For the Six Months Ended June 30,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

(Amounts in thousands) 2024 2023 2024 2023

5 unchanged sentences

$ 2,580 $ 3,116 $ 12,510 $ 8,356

As of June 30, 2024, the amounts due to Vornado were $ 480,000 for management, property management, cleaning, engineering and security fees, $ 126,000 for development fees and $ 17,000 for leasing fees.

As of September 30, 2024, the amounts due to Vornado were $ 734,000 for management, property management, cleaning, engineering and security fees, $ 192,000 for development fees and $ 17,000 for leasing 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.

7 unchanged sentences

On June 11, 2024, we entered into a four-month extension of the loan and simultaneously paid down the principal balance by $ 10,000,000 to $ 490,000,000 .

The interest-only mortgage loan remains at the Prime rate ( 8.50 % as of June 30, 2024) through the extended loan maturity of October 11, 2024.

We also escrowed $ 66,808,000 with the lender in connection with the tenant fund in the Bloomberg lease extension which is included in “Restricted cash” on our consolidated balance sheet as of June 30, 2024.

The following is a summary of our outstanding mortgages payable as of June 30, 2024 and December 31, 2023.

On September 30, 2024, we entered into a new $ 400,000,000 mortgage loan on the office condominium portion of 731 Lexington Avenue.

The interest-only loan has a fixed rate of 5.04 % and matures in October 2028.

The loan is prepayable, at the Company’s option, with no penalty, beginning in October 2026.

The new loan replaces the previous $ 490,000,000 loan that bore interest at the Prime Rate and was scheduled to mature in October 2024.

The following is a summary of our outstanding mortgages payable as of September 30, 2024 and December 31, 2023.

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

Interest Rate at June 30, 2024 Balance at

(Amounts in thousands) Maturity June 30, 2024 December 31, 2023

Interest Rate at September 30, 2024

(Amounts in thousands) Maturity September 30, 2024 December 31, 2023

First mortgages secured by:

731 Lexington Avenue, office condominium (1)

731 Lexington Avenue, office condominium Oct.

9, 2028 5.04 % $ 400,000 $ 500,000

9 unchanged sentences

$ 987,978 $ 1,092,551

(1) Interest at the Prime Rate.

(2) Interest rate listed represents the rate in effect as of June 30, 2024 based on SOFR as of contractual reset date plus contractual spread, adjusted for hedging instruments as applicable.

(1) Interest rate listed represents the rate in effect as of September 30, 2024 based on SOFR as of contractual reset date plus contractual spread, adjusted for hedging instruments as applicable.

(2) Interest at SOFR plus 1.51 % which was swapped to a fixed rate of 1.76 % through May 2025.

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, 2024, there were 26,244 DSUs outstanding and 479,543 shares were available for future grant under the Plan.

As of September 30, 2024, there were 26,244 DSUs outstanding and 479,543 shares were available for future grant under the Plan.

ALEXANDER’S, INC.

10 unchanged sentences

Financial Assets and Liabilities Measured at Fair Value

Financial assets measured at fair value on our consolidated balance sheet as of June 30, 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 June 30, 2024.

As of June 30, 2024

Financial assets measured at fair value on our consolidated balance sheet as of September 30, 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 September 30, 2024.

As of September 30, 2024

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

2 unchanged sentences

There were no financial liabilities measured at fair value as of December 31, 2023.

As of As of December 31, 2023

As of December 31, 2023

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

2 unchanged sentences

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 June 30, 2024 and December 31, 2023, respectively.

Fair Value as of As of June 30, 2024

(Amounts in thousands) June 30, 2024 December 31, 2023 Notional Amount Swapped Rate Expiration Date

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 September 30, 2024 and December 31, 2023, respectively.

Fair Value as of As of September 30, 2024

(Amounts in thousands) September 30, 2024 December 31, 2023 Notional Amount Swapped Rate Expiration Date

Interest rate swap related to:

13 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 amount and fair value of these financial instruments as of June 30, 2024 and December 31, 2023, respectively.

As of June 30, 2024 As of December 31, 2023

The table below summarizes the carrying amount and fair value of these financial instruments as of September 30, 2024 and December 31, 2023, respectively.

As of September 30, 2024 As of December 31, 2023

(Amounts in thousands) Carrying

17 unchanged sentences

Letters of Credit

Approximately $ 900,000 of standby letters of credit were issued and outstanding as of June 30, 2024.

Approximately $ 900,000 of standby letters of credit were issued and outstanding as of September 30, 2024.

There are various legal actions brought against us from time-to-time in the ordinary course of business.

7 unchanged sentences

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 and six months ended June 30, 2024 and 2023.

For the Three Months Ended June 30, For the Six Months

Ended June 30,

There were no potentially dilutive securities outstanding during the three and nine months ended September 30, 2024 and 2023.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

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

2 unchanged sentences

Weighted average shares outstanding - basic and diluted 5,133,534 5,130,678 5,132,043 5,128,875

5,131,902 5,128,823 5,131,290 5,127,959

Net income per common share - basic and diluted $ 1.30 $ 2.10 $ 6.07 $ 16.79

3 unchanged sentences

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

and subsidiaries (the “Company”) as of June 30, 2024, the related consolidated statements of income, comprehensive income, and changes in equity, for the three-month and six-month periods ended June 30, 2024 and 2023, and of cash flows for the six-month periods ended June 30, 2024 and 2023, and the related notes (collectively referred to as the “interim financial information”).

and subsidiaries (the “Company”) as of September 30, 2024, the related consolidated statements of income, comprehensive income, and changes in equity, for the three-month and nine-month periods ended September 30, 2024 and 2023, and of cash flows for the nine-month periods ended September 30, 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.

12 unchanged sentences

New York, New York

August 5, 2024

November 4, 2024

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