What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2025-02-10 compared with 2024-02-12 · 101 added, 114 removed, 483 unchanged (31% of the section changed)

16 unchanged sentences

We have audited the accompanying consolidated balance sheets of Alexander’s, Inc.

and subsidiaries (the "Company") as of December 31, 2023, and 2022, the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2023, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements").

and subsidiaries (the "Company") as of December 31, 2024, and 2023, the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

45 unchanged sentences

Restricted cash 55,304 21,122

Investments in U.S.

Treasury bills — 266,963

Tenant and other receivables 5,112 6,076

9 unchanged sentences

Accounts payable and accrued expenses 38,743 51,750

Lease incentive liabilities 115,118 —

Other liabilities 21,397 21,007

30 unchanged sentences

Depreciation and amortization ( 34,782 ) ( 32,898 ) ( 29,797 )

General and administrative, including management fees to Vornado of $ 2,440 , $ 2,440 and $ 2,380 , respectively

General and administrative, including management fees to Vornado of $ 2,440 in

( 6,519 ) ( 6,341 ) ( 6,106 )

2 unchanged sentences

Interest and debt expense ( 62,818 ) ( 58,297 ) ( 28,602 )

Change in fair value of marketable securities — — 3,482

Net gains on sale of real estate 53,952 — 69,950

Income from continuing operations 102,413 57,632 130,582

Income from discontinued operations (see Note 8) — — 2,348

Net gain on sale of real estate — 53,952 —

Net income $ 43,444 $ 102,413 $ 57,632

Income per common share - basic and diluted:

Income from continuing operations $ 19.97 $ 11.24 $ 25.48

Income from discontinued operations (see Note 8) — — 0.46

Net income per common share $ 19.97 $ 11.24 $ 25.94

Net income per common share - basic and diluted $ 8.46 $ 19.97 $ 11.24

Weighted average shares outstanding - basic and diluted 5,132,418 5,129,330 5,126,100

16 unchanged sentences

Comprehensive

(Loss) Income

Common Stock Additional

7 unchanged sentences

Change in fair value of interest rate derivatives

and other — — — — 18,092 — 18,092

Deferred stock unit grants — — 450 — — — 450

11 unchanged sentences

Change in fair value of interest rate derivatives — — — — ( 12,314 ) — ( 12,314 )

and other — — — — ( 9,385 ) — ( 9,385 )

Deferred stock unit grants — — 450 — — — 450

11 unchanged sentences

Depreciation and amortization, including amortization of debt issuance costs 37,897 34,605 31,454

Net gains on sale of real estate (2021 includes $ 2,348 from discontinued operations)

( 53,952 ) — ( 72,298 )

Net gain on sale of real estate — ( 53,952 ) —

Straight-lining of rents 13,116 2,631 7,960

Stock-based compensation expense 450 450 450

Change in fair value of marketable securities — — ( 3,482 )

Interest rate cap premium amortization 6,483 7,770 —

5 unchanged sentences

Accounts payable and accrued expenses ( 13,695 ) 3,263 3,141

Lease incentive liabilities 115,118 — —

Other liabilities ( 19 ) ( 19 ) 338

6 unchanged sentences

Treasury bills — 264,881 99,358

Proceeds from sales of real estate 67,821 — 81,871

Proceeds from sale of real estate — 67,821 —

Purchase of interest rate cap — ( 11,258 ) —

Proceeds from interest rate cap 6,563 5,049 —

Return of short-term investment — — 3,600

Proceeds from sale of marketable securities — — 9,506

Net cash provided by (used in) investing activities 321,812 ( 279,266 ) 75,457

Net cash (used in) provided by investing activities ( 13,222 ) 321,812 ( 279,266 )

CASH FLOWS FROM FINANCING ACTIVITIES

2 unchanged sentences

Debt repayments ( 500,000 ) — —

Proceeds from borrowings 400,000 — —

Net cash used in financing activities ( 200,025 ) ( 92,424 ) ( 92,310 )

Net increase (decrease) in cash and cash equivalents and restricted cash 338,499 ( 269,027 ) 33,628

Net (decrease) increase in cash and cash equivalents and restricted cash ( 159,141 ) 338,499 ( 269,027 )

Cash and cash equivalents and restricted cash at beginning of year 552,977 214,478 483,505

36 unchanged sentences

(“Bloomberg”) occupies all of the office space.

The Home Depot ( 83,000 square feet) is the principal retail tenant;

The Home Depot ( 83,000 square feet) was the principal retail tenant at the property until its lease expired on January 31, 2025.

Annual rental revenues from the Home Depot at expiration was approximately $ 15,150,000 ;

• Rego Park I, a 338,000 square foot shopping center, is located on Queens Boulevard and 63 rd Road in Queens.

The center is anchored by a 50,000 square foot Burlington and a 36,000 square foot Marshalls.

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 accelerates its lease termination date to April 1, 2024.

Under the lease modification agreement, IKEA will pay its remaining rent due through March 16, 2026 and the $ 10,000,000 termination payment over the modified lease term;

The center was anchored by a 50,000 square foot Burlington and a 36,000 square foot Marshalls.

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;

• Rego Park II, a 615,000 square foot shopping center, is located adjacent to the Rego Park I shopping center in Queens.

1 unchanged sentence

• Flushing, a 167,000 square foot building, located on Roosevelt Avenue and Main Street in Queens, that is subleased to New World Mall LLC.

The property is ground leased through January 2027 with one 10-year extension option;

The property is ground leased through January 2027 with one ten-year extension option;

• The Alexander apartment tower, located above our Rego Park II shopping center, contains 312 units aggregating 255,000 square feet.

We have determined that our properties have similar economic characteristics and meet the criteria that permit the properties to be aggregated into one reportable segment (the leasing, management, development and redeveloping of properties in New York City).

Our chief operating decision-maker assesses and measures segment operating results based on a performance measure referred to as net operating income at the individual operating segment.

Net operating income for each property represents net rental revenues less operating expenses.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 unchanged sentences

Actual results could differ from those estimates.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Recently Issued Accounting Literature - In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04 establishing Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform, and in January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) :

Scope (collectively, “ASC 848”).

ASC 848 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts.

The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur.

We have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives.

Application of these expedients preserves the presentation of derivatives consistent with past presentation.

In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”), which was issued to defer the sunset date of ASC 848 to December 31, 2024.

ASU 2022-06 is effective immediately for all companies.

As of December 31, 2023, we have transitioned all of our LIBOR-indexed debt and derivatives and, for our derivatives in hedge accounting relationships, utilized the elective relief in ASC 848, allowing for the continuation of hedge accounting through the transition process.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Recently Issued Accounting Literature

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

3 unchanged sentences

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.

These consolidated financial statements incorporate the adoption of ASU 2023-07 as required.

Refer to Note 13 - Segment Information .

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

3 unchanged sentences

We are currently evaluating the impact of ASU 2023-09 on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date (“ASU 2025-01”).

ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement.

ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted.

We are currently evaluating the impact of these standards on our consolidated financial statements.

Real Estate – Real estate is carried at cost, net of accumulated depreciation and amortization.

5 unchanged sentences

General and administrative costs are expensed as incurred.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Our properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

6 unchanged sentences

Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

ALEXANDER’S, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue Recognition – Rental revenues include revenues from the leasing of space at our properties to tenants, tenant services and parking garage revenues.We have the following revenue recognition policies:

Revenue Recognition – Rental revenues include revenues from the leasing of space at our properties to tenants, tenant services and parking garage revenues.

We have the following revenue recognition policies:

• Revenues from the leasing of space at our properties to tenants include (i) lease components, including fixed and variable lease payments, and nonlease components which include reimbursement of common area maintenance expenses, and (ii) reimbursement of real estate taxes and insurance expenses.

12 unchanged sentences

To date we have not experienced any losses on our invested cash.

Restricted Cash – Restricted cash primarily consists of security deposits and other cash escrowed under loan and interest rate derivative agreements, including for debt service, real estate taxes, property insurance and capital improvements.

Investments in U.S.

Treasury Bills – Treasury bills are short-term debt obligations with maturities of one year or less backed by the U.S.

Treasury Department.

Treasury bills yield no interest, but are issued at a discount on their redemption prices.

We classify our investments in U.S.

Treasury bills as available-for-sale debt investments, recorded at fair value with any changes in fair value during the period recorded in other comprehensive income.

These investments are considered Level 1 within the fair value hierarchy as they are highly liquid and are traded in an active secondary market.

We use quoted market prices to determine the fair value of our investments in U.S.

Treasury bills.

Deferred Charges – Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense.

Direct and incremental costs related to successful leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases.

All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate.

Restricted Cash – Restricted cash primarily consists of cash escrowed under loan and interest rate derivative agreements, including for debt service, real estate taxes, property insurance, leasing costs and capital improvements, and security deposits.

ALEXANDER’S, INC.

2 unchanged sentences

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Deferred Charges – Direct financing costs are deferred and amortized on a straight-line basis, which approximates the effective interest rate method, over the terms of the related agreements as a component of interest and debt expense.

Direct and incremental costs related to successful leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases.

Income Taxes – We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”).

1 unchanged sentence

We distribute to our stockholders 100 % of our taxable income and therefore, no provision for Federal income taxes is required.

Dividends distributed for the year ended December 31, 2023 were characterized, for federal income tax purposes, as 41.5 % ordinary income and 58.5 % of long-term capital gain income.

Dividends distributed for the year ended December 31, 2024 were characterized, for federal income tax purposes, as 100 % ordinary income.

Dividends distributed for the year ended December 31, 2023 were characterized, for federal income tax purposes, as 41.5 % ordinary income and 58.5 % of long-term capital gain income.

Dividends distributed for the year ended December 31, 2022 were characterized, for federal income tax purposes, as 100.0 % ordinary income.

The estimated taxable income attributable to our common stockholders (unaudited) for the years ended December 31, 2024, 2023 and 2022 was approximately $ 65,493,000 , $ 98,555,000 , and $ 64,960,000 , respectively.

15 unchanged sentences

Lease revenues $ 217,656 $ 216,468 $ 197,230

REAL ESTATE SALES

REAL ESTATE SALE

On May 19, 2023, we sold the Rego Park III land parcel in Queens, New York, for $ 71,060,000 inclusive of consideration for Brownfield tax benefits and reimbursement of costs for plans, specifications and improvements to date.

Net proceeds from the sale were $ 67,821,000 after closing costs and the financial statement gain was $ 53,952,000 .

On June 4, 2021, we sold a parcel of land in the Bronx, New York for $ 10,000,000 .

Net proceeds from the sale were $ 9,291,000 after closing costs and the financial statement gain was $ 9,124,000 .

On October 4, 2021, we sold 30.3 acres of land located in Paramus, New Jersey to IKEA Property, Inc., the tenant at the property, for $ 75,000,000 , pursuant to the tenant’s purchase option contained in the lease.

Net proceeds from the sale were $ 4,580,000 after closing costs and the repayment of the $ 68,000,000 mortgage loan.

The financial statement gain was $ 60,826,000 .

ALEXANDER’S, INC.

13 unchanged sentences

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.

In the event third-party real estate brokers are used, the fees to Vornado increase by 1 % and Vornado is responsible for the fees to the third-party real estate brokers.

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 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.

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

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.

5 unchanged sentences

Leasing fees 6,084 1,213 1,378

Commissions on sales of real estate 711 — 1,050

Commission on sale of real estate — 711 —

Property management, cleaning, engineering, parking and security fees 6,053 6,005 5,912

$ 15,409 $ 10,729 $ 10,093

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.

As of December 31, 2024 , the amounts due to Vornado were $ 642,000 for management, property management, cleaning, engineering and security fees, $ 346,000 for development fees and $ 171,000 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

MORTGAGES PAYABLE

On June 9, 2023, we exercised our remaining one-year extension option on the $ 500,000,000 interest-only mortgage loan on the office condominium of our 731 Lexington Avenue property.

The interest rate on the loan remained at LIBOR plus 0.90 % through July 15, 2023 and currently bears interest at the Prime Rate ( 8.50 % as of December 31, 2023) through loan maturity on June 11, 2024.

In June 2023, we purchased an interest rate cap for $ 11,258,000 , which capped LIBOR at 6.00 % through July 15, 2023 and caps the Prime Rate at 6.00 % through loan maturity.

ALEXANDER’S, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

MORTGAGES PAYABLE - continued

MORTGAGES PAYABLE

On June 9, 2023, we exercised our remaining one-year extension option on the $ 500,000,000 interest-only mortgage loan on the office condominium of our 731 Lexington Avenue property.

The interest rate on the loan remained at LIBOR plus 0.90 % through July 15, 2023 and then at the Prime Rate through loan maturity on June 11, 2024.

In addition, in June 2023, we purchased an interest rate cap for $ 11,258,000 , which capped LIBOR at 6.00 % through July 15, 2023 and then the Prime Rate at 6.00 % through loan maturity.

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 .

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.

3 unchanged sentences

First mortgages secured by:

731 Lexington Avenue, office condominium (1)

731 Lexington Avenue, office condominium Oct.

09, 2028 5.04 % $ 400,000 $ 500,000

9 unchanged sentences

$ 988,019 $ 1,092,551

(1) Interest at the Prime Rate (capped at 6.00 % through loan maturity).

(1) Interest rate listed represents the rate in effect as of December 31, 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.

(4) Interest at SOFR plus 1.45 % (SOFR is capped at a rate of 4.15 % through November 2024).

(3) Interest at SOFR plus 1.45 % (SOFR is capped at a rate of 4.15 % through December 2025).

The net carrying value of real estate collateralizing the debt amou nted to $ 587,548,000 as of December 31, 2024.

4 unchanged sentences

2025 $ 502,544

MARKETABLE SECURITIES

In December 2021, we sold our 564,612 common shares of The Macerich Company (“Macerich”), realizing cash proceeds of $ 9,506,000 .

These shares were received in connection with the sale of Kings Plaza Regional Shopping Center (“Kings Plaza”) to Macerich in 2012.

The gains and losses resulting from the mark-to-market of these securities during 2021 were presented as “change in fair value of marketable securities” on our consolidated statement of income.

DISCONTINUED OPERATIONS

In 2012, when we sold Kings Plaza to Macerich, $ 2,348,000 of the financial statement gain was deferred since a portion of the sales price was received in Macerich common shares.

In December 2021, we recognized the $ 2,348,000 gain upon the disposition of our Macerich common shares.

As the results related to Kings Plaza were previously classified as discontinued operations, we have classified the gain as “income from discontinued operations” on our consolidated statement of income for the year ended December 31, 2021 in accordance with the provisions of ASC Topic 360, Property, Plant and Equipment.

ALEXANDER’S, INC.

4 unchanged sentences

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 as well as certain U.S.

Treasury securities that are highly liquid and are actively traded in secondary markets;

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;

8 unchanged sentences

Interest rate derivatives (included in other assets) $ 4,487 $ — $ 4,487 $ —

Financial assets measured at fair value on our consolidated balance sheet as of December 31, 2022 consist of U.S.

Treasury bills (classified as available for-sale) and interest rate derivatives, which are presented in the table below based on their level in the fair value hierarchy.

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.

1 unchanged sentence

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

Investments in U.S.

Treasury bills $ 266,963 $ 266,963 $ — $ —

Interest rate derivatives (included in other assets) $ 22,608 $ — $ 22,608 $ —

$ 296,314 $ 266,963 $ 29,351 $ —

Interest Rate Derivatives

10 unchanged sentences

(1) SOFR cap strike rate of 4.15 %.

(2) In June 2023, we purchased an interest rate cap for $ 11,258 , which capped LIBOR at 6.00 % through July 15, 2023 and caps the Prime Rate ( 8.50 % as of December 31, 2023) at 6.00 % through loan maturity.

See Note 6 - Mortgages Payable for further information.

ALEXANDER’S, INC.

8 unchanged sentences

As of December 31, 2024 As of December 31, 2023

Carrying Fair Carrying Fair

(Amounts in thousands) Amount Value Amount Value

(Amounts in thousands) Carrying Amount Fair

Value Carrying Amount Fair

Cash equivalents $ 61,889 $ 61,889 $ 363,535 $ 363,535

16 unchanged sentences

In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data.

On May 3, 2024, Alexander’s and Bloomberg entered into 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.

Upon execution of this lease extension, we paid a $ 32,000,000 leasing commission, of which $ 26,500,000 was to a third-party broker and $ 5,500,000 was to Vornado.

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, 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 liabilities,” on our consolidated balance sheet as of December 31, 2024.

ALEXANDER’S, INC.

2 unchanged sentences

LEASES - continued

We are the lessee under a ground lease at our Flushing property, classified as an operating lease, which expires in 2027 and has one 10 -year extension option.

In January 2022, New World Mall LLC, the subtenant at the property, exercised its one remaining 10 -year extension option through January 2037.

As a result of the subtenant exercising its extension option, we were required by GAAP to remeasure our ground lease liability based upon an estimate of lease payments to be made during the 10 -year extension period of our ground lease resulting in an incremental right-of-use asset and lease liability of approximately $ 16,000,000 .

As Lessor - continued

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.

On September 27, 2023, we entered into a lease modification agreement with IKEA which accelerated its lease termination date to April 1, 2024.

In 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.

We are the lessee under a ground lease at our Flushing property, classified as an operating lease, which expires in 2027 and has one ten-year extension option.

In January 2022, New World Mall LLC, the subtenant at the property, exercised its one remaining ten-year extension option through January 2037.

As a result of the subtenant exercising its extension option, we were required by GAAP to remeasure our ground lease liability based upon an estimate of lease payments to be made during the ten-year extension period of our ground lease resulting in an incremental right-of-use asset and lease liability of approximately $ 16,000,000 .

The discount rate applied in the remeasurement of the lease liability was based on the incremental borrowing rate (“IBR”) of 5.86 % at the time of the remeasurement.

9 unchanged sentences

We recognize rent exp ense as a component of “operating” expenses on our consolidated statements of income on a straight-line basis.

Rent expense was $ 2,161,000 , $ 2,161,000 and $ 746,000 in each of the years ended December 31, 2023, 2022 and 2021, respectively.

Rent expense was $ 2,161,000 in each of the years ended December 31, 2024, 2023 and 2022, respectively.

Cash paid for rent expense was $ 800,000 in each of the years ended December 31, 2024, 2023 and 2022, respectively.

15 unchanged sentences

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.

For NBCR acts, FNSIC is responsible for a deductible of $ 338,000 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.

5 unchanged sentences

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 December 31, 2023.

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

21 unchanged sentences

(Amounts in thousands, except share and per share amounts) 2024 2023 2022

Income from continuing operations $ 102,413 $ 57,632 $ 130,582

Income from discontinued operations (see Note 8) — — 2,348

Net income $ 43,444 $ 102,413 $ 57,632

Weighted average shares outstanding – basic and diluted 5,132,418 5,129,330 5,126,100

Income from continuing operations $ 19.97 $ 11.24 $ 25.48

Income from discontinued operations (see Note 8) — — 0.46

Net income per common share – basic and diluted $ 8.46 $ 19.97 $ 11.24

SEGMENT INFORMATION

We have determined that our properties, which are considered our operating segments, have similar economic characteristics and meet the criteria that permit these operating segments to be aggregated into one reportable segment (the leasing, management, development and redevelopment of properties in New York City).

Net operating income (“NOI”) represents total revenues less operating expenses.

The Company’s chief operating decision maker ("CODM") is its Chief Executive Officer, who considers NOI to be the financial measure of segment profit and loss for making decisions on how to allocate resources and assessing the performance of the segment.

Asset information by segment is not reported as the CODM does not use this measure to assess segment performance or to make resource allocation decisions.

Below is a summary of financial information for the years ended December 31, 2024, 2023 and 2022.

Year Ended December 31,

(Amounts in thousands) 2024 2023 2022

Rental revenues $ 226,374 $ 224,962 $ 205,814

Real estate tax expense ( 59,256 ) ( 57,722 ) ( 49,885 )

Other segment expenses (1)

( 43,984 ) ( 43,488 ) ( 40,561 )

Total operating expenses ( 103,240 ) ( 101,210 ) ( 90,446 )

NOI $ 123,134 $ 123,752 $ 115,368

(1) Includes various expenses associated with operating our properties including but not limited to ground rent, insurance, repairs and maintenance and utilities.

Below is a reconciliation of NOI to net income for the years ended December 31, 2024, 2023 and 2022.

Year Ended December 31,

(Amounts in thousands) 2024 2023 2022

NOI $ 123,134 $ 123,752 $ 115,368

Net gain on sale of real estate — 53,952 —

Interest and debt expense ( 62,818 ) ( 58,297 ) ( 28,602 )

Interest and other income 24,429 22,245 6,769

General and administrative ( 6,519 ) ( 6,341 ) ( 6,106 )

Depreciation and amortization ( 34,782 ) ( 32,898 ) ( 29,797 )

Net income $ 43,444 $ 102,413 $ 57,632

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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-K

Item 8. Financial Statements and Supplementary Data