ALEXANDERS INC 10-Q

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 June 30, 2025 December 31, 2024 Real estate, at cost: Land $ 32,271 $ 32,271 Buildings and leasehold improvements 1,051,319 1,046,132 Development and construction in progress 14,617 6,794 Total 1,098,207 1,085,197 Accumulated depreciation and amortization ( 458,727 ) ( 443,627 ) Real estate, net 639,480 641,570 Cash and cash equivalents 313,036 338,532 Restricted cash 77,269 55,304 Tenant and other receivables 4,136 5,112 Receivable arising from the straight-lining of rents 109,732 111,750 Deferred leasing costs, net, including unamortized leasing fees to Vornado of $ 21,406 and $ 22,380 , respectively 158,059 163,677 Other assets 19,104 25,350 $ 1,320,816 $ 1,341,295 LIABILITIES AND EQUITY Mortgages payable, net of deferred debt issuance costs $ 987,619 $ 988,019 Amounts due to Vornado 996 1,159 Accounts payable and accrued expenses 51,535 38,743 Lease incentive liabilities 113,618 115,118 Other liabilities 21,601 21,397 Total liabilities 1,175,369 1,164,436 Commitments and contingencies Preferred stock: $ 1.00 par value per share; authorized, 3,000,000 shares; issued and outstanding, none — — 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 35,159 34,765 Retained earnings 105,632 133,402 Accumulated other comprehensive (loss) income ( 149 ) 3,887 145,815 177,227 Treasury stock: 66,160 shares, at cost ( 368 ) ( 368 ) Total equity 145,447 176,859 $ 1,320,816 $ 1,341,295 See notes to consolidated financial statements (unaudited). 4 ALEXANDER’S, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Amounts in thousands, except share and per share amounts) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 REVENUES Rental revenues $ 51,589 $ 53,392 $ 106,504 $ 114,789 EXPENSES Operating, including fees to Vornado of $ 1,590 , $ 1,345 , $ 3,182 and $ 3,104 , respectively ( 25,934 ) ( 24,991 ) ( 51,498 ) ( 50,254 ) Depreciation and amortization ( 8,707 ) ( 8,697 ) ( 17,306 ) ( 18,174 ) General and administrative, including management fees to Vornado of $ 610 , $ 610 , $ 1,220 and $ 1,220 , respectively ( 1,955 ) ( 2,159 ) ( 3,546 ) ( 3,635 ) Total expenses ( 36,596 ) ( 35,847 ) ( 72,350 ) ( 72,063 ) Interest and other income 3,928 7,054 7,873 14,216 Interest and debt expense ( 12,801 ) ( 16,219 ) ( 23,595 ) ( 32,453 ) Net income $ 6,120 $ 8,380 $ 18,432 $ 24,489 Net income per common share - basic and diluted $ 1.19 $ 1.63 $ 3.59 $ 4.77 Weighted average shares outstanding - basic and diluted 5,134,599 5,131,902 5,134,069 5,131,290 See notes to consolidated financial statements (unaudited). 5 ALEXANDER’S, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 6,120 $ 8,380 $ 18,432 $ 24,489 Other comprehensive loss: Change in fair value of interest rate derivatives ( 1,055 ) ( 3,360 ) ( 4,036 ) ( 3,900 ) Comprehensive income $ 5,065 $ 5,020 $ 14,396 $ 20,589 See notes to consolidated financial statements (unaudited). 6 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 (Loss) Income Treasury Stock Total Equity Common Stock Shares Amount For the Three Months Ended June 30, 2025 Balance, March 31, 2025 5,173 $ 5,173 $ 34,765 $ 122,613 $ 906 $ ( 368 ) $ 163,089 Net income — — — 6,120 — — 6,120 Dividends paid ($ 4.50 per common share) — — — ( 23,101 ) — — ( 23,101 ) Change in fair value of interest rate derivatives — — — — ( 1,055 ) — ( 1,055 ) Deferred stock unit grants — — 394 — — — 394 Balance, June 30, 2025 5,173 $ 5,173 $ 35,159 $ 105,632 $ ( 149 ) $ ( 368 ) $ 145,447 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 Net income — — — 8,380 — — 8,380 Dividends paid ($ 4.50 per common share) — — — ( 23,088 ) — — ( 23,088 ) Change in fair value of interest rate derivatives — — — — ( 3,360 ) — ( 3,360 ) Deferred stock unit grants — — 450 — — — 450 Balance, June 30, 2024 5,173 $ 5,173 $ 34,765 $ 160,649 $ 12,301 $ ( 368 ) $ 212,520 Additional Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Treasury Stock Total Equity Common Stock Shares Amount For the Six Months Ended June 30, 2025 Balance, December 31, 2024 5,173 $ 5,173 $ 34,765 $ 133,402 $ 3,887 $ ( 368 ) $ 176,859 Net income — — — 18,432 — — 18,432 Dividends paid ($ 9.00 per common share) — — — ( 46,202 ) — — ( 46,202 ) Change in fair value of interest rate derivatives — — — — ( 4,036 ) — ( 4,036 ) Deferred stock unit grants — — 394 — — — 394 Balance, June 30, 2025 5,173 $ 5,173 $ 35,159 $ 105,632 $ ( 149 ) $ ( 368 ) $ 145,447 For the Six Months Ended June 30, 2024 Balance, December 31, 2023 5,173 $ 5,173 $ 34,315 $ 182,336 $ 16,201 $ ( 368 ) $ 237,657 Net income — — — 24,489 — — 24,489 Dividends paid ($ 9.00 per common share) — — — ( 46,176 ) — — ( 46,176 ) Change in fair value of interest rate derivatives — — — — ( 3,900 ) — ( 3,900 ) Deferred stock unit grants — — 450 — — — 450 Balance, June 30, 2024 5,173 $ 5,173 $ 34,765 $ 160,649 $ 12,301 $ ( 368 ) $ 212,520 See notes to consolidated financial statements (unaudited). 7 ALEXANDER’S, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands) For the Six Months Ended June 30, CASH FLOWS FROM OPERATING ACTIVITIES 2025 2024 Net income $ 18,432 $ 24,489 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization, including amortization of debt issuance costs 18,888 19,118 Straight-lining of rents 2,018 11,076 Interest rate cap premium amortization 322 5,908 Stock-based compensation expense 394 450 Other non-cash adjustments 4,336 ( 3,804 ) Change in operating assets and liabilities: Tenant and other receivables 976 674 Other assets 1,179 ( 142,782 ) Amounts due to Vornado ( 25 ) ( 218 ) Accounts payable and accrued expenses 14,277 ( 192 ) Lease incentive liabilities ( 1,500 ) 113,618 Other liabilities ( 10 ) ( 10 ) Net cash provided by operating activities 59,287 28,327 CASH FLOWS FROM INVESTING ACTIVITIES Construction in progress and real estate additions ( 14,633 ) ( 6,182 ) Proceeds from interest rate cap — 6,563 Net cash (used in) provided by investing activities ( 14,633 ) 381 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid ( 46,202 ) ( 46,176 ) Debt repayment ( 1,983 ) ( 10,000 ) Debt issuance costs — ( 1,132 ) Net cash used in financing activities ( 48,185 ) ( 57,308 ) Net decrease in cash and cash equivalents and restricted cash ( 3,531 ) ( 28,600 ) Cash and cash equivalents and restricted cash at beginning of period 393,836 552,977 Cash and cash equivalents and restricted cash at end of period $ 390,305 $ 524,377 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH Cash and cash equivalents at beginning of period $ 338,532 $ 531,855 Restricted cash at beginning of period 55,304 21,122 Cash and cash equivalents and restricted cash at beginning of period $ 393,836 $ 552,977 Cash and cash equivalents at end of period $ 313,036 $ 410,948 Restricted cash at end of period 77,269 113,429 Cash and cash equivalents and restricted cash at end of period $ 390,305 $ 524,377 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash payments for interest $ 20,910 $ 32,108 NON-CASH TRANSACTIONS Liability for real estate additions, including $ 207 and $ 126 , respectively for development fees due to Vornado $ 1,380 $ 964 Write-off of fully depreciated assets — 1,759 See notes to consolidated financial statements (unaudited). 8 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 (“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, 2024, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities, 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, 2025 are not necessarily indicative of the operating results for the full year. 3. Recently Issued Accounting Literature In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. 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. 9 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 and six months ended June 30, 2025 and 2024. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2025 2024 2025 2024 Lease revenues $ 49,502 $ 51,288 $ 102,228 $ 110,634 Parking revenue 1,218 1,185 2,414 2,315 Tenant services 869 919 1,862 1,840 Rental revenues $ 51,589 $ 53,392 $ 106,504 $ 114,789 The components of lease revenues for the three and six months ended June 30, 2025 and 2024 are as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2025 2024 2025 2024 Fixed lease revenues $ 33,009 $ 34,400 $ 68,363 $ 76,934 Variable lease revenues 16,493 16,888 33,865 33,700 Lease revenues $ 49,502 $ 51,288 $ 102,228 $ 110,634 Bloomberg L.P. (“Bloomberg”) accounted for revenue of $ 64,446,000 and $ 60,946,000 for the six months ended June 30, 2025 and 2024, respectively, representing approximately 61 % and 53 % of our rental revenues in each period, respectively. No other tenant accounted for more than 10% of our rental revenues. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data. On January 31, 2025, Home Depot’s 83,000 square foot lease at the retail portion of our 731 Lexington Avenue property expired. Annual rental revenues from Home Depot were approximately $ 15,000,000 . 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. 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. 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. 10 ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 5. Related Party Transactions Vornado As of June 30, 2025, 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) $ 387,000 , 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 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 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 June 30, For the Six Months Ended June 30, (Amounts in thousands) 2025 2024 2025 2024 Company management fees $ 700 $ 700 $ 1,400 $ 1,400 Development fees 207 111 626 126 Leasing fees 229 5,517 242 5,555 Property management, cleaning, engineering, parking and security fees 1,464 1,213 2,923 2,849 $ 2,600 $ 7,541 $ 5,191 $ 9,930 As of June 30, 2025 , the amounts due to Vornado were $ 547,000 for management, property management, cleaning, engineering and security fees, $ 242,000 for leasing fees and $ 207,000 for development 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. 11 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 June 30, 2025 and December 31, 2024. We may refinance our maturing debt as it comes due or choose to pay it down. Interest Rate at June 30, 2025 Balance at (Amounts in thousands) Maturity June 30, 2025 December 31, 2024 First mortgages secured by: 731 Lexington Avenue, office condominium Oct. 09, 2028 5.04 % $ 400,000 $ 400,000 731 Lexington Avenue, retail condominium (1)(2) Oct. 03, 2025 5.83 % 300,000 300,000 Rego Park II shopping center (1)(3) Dec. 12, 2025 5.60 % 200,561 202,544 The Alexander apartment tower Nov. 01, 2027 2.63 % 94,000 94,000 Total 994,561 996,544 Deferred debt issuance costs, net of accumulated amortization of $ 8,964 and $ 7,381 , respectively ( 6,942 ) ( 8,525 ) $ 987,619 $ 988,019 (1) Interest rate listed represents the rate in effect as of June 30, 2025 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. (3) Interest at SOFR plus 1.45 % (SOFR is capped at a rate of 4.15 % thr ough December 2025). The $ 300,000,000 mortgage loan on the retail condominium of our 731 Lexington Avenue property was scheduled to mature on August 5, 2025. On August 1, 2025, we entered into a 60-day extension with the lenders. The interest-only, non-recourse loan continues to bear interest at SOFR plus 1.51 % ( 5.83 % as of June 30, 2025) through the extended maturity date of October 3, 2025. 7. Stock-Based Compensation We account for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) Topic 718, Compensation – Stock Compensation (“ASC 718”). Our 2016 Omnibus Stock Plan (the “Plan”) provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, deferred stock units (“DSUs”) and performance shares, as defined, to the directors, officers and employees of the Company and Vornado. In May 2025, we granted each of the members of our Board of Directors 346 DSUs with a market value of $ 75,000 per grant. The grant date fair value of these awards was $ 56,250 per grant, or $ 394,000 in the aggregate, in accordance with ASC 718. The DSUs entitle the holders to receive shares of the Company’s common stock without the payment of any consideration. 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 or until a later date selected by the grantee. As of June 30, 2025, there were 28,666 DSUs outstanding and 477,121 shares were available for future grant under the Plan. 8. 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. 12 ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 8. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value Financial assets measured at fair value on our consolidated balance sheet as of June 30, 2025 consist of an interest rate cap, which is presented in the table below based on its level in the fair value hierarchy. There were no financial liabilities measured at fair value as of June 30, 2025. As of June 30, 2025 (Amounts in thousands) Total Level 1 Level 2 Level 3 Interest rate derivative (included in other assets) $ 129 $ — $ 129 $ — Financial assets measured at fair value on our consolidated balance sheet as of December 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 December 31, 2024. As of December 31, 2024 (Amounts in thousands) Total Level 1 Level 2 Level 3 Interest rate derivatives (included in other assets) $ 4,487 $ — $ 4,487 $ — 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 June 30, 2025 and December 31, 2024, respectively. Fair Value as of As of June 30, 2025 (Amounts in thousands) June 30, 2025 December 31, 2024 Notional Amount Swapped Rate Expiration Date Interest rate swap related to: 731 Lexington Avenue mortgage loan, retail condominium $ — $ 4,117 N/A N/A N/A Interest rate cap related to: Rego Park II shopping center mortgage loan 129 370 $ 200,561 (1) 12/25 Included in other assets $ 129 $ 4,487 (1) SOFR cap strike rate of 4.15 %. 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 June 30, 2025 and December 31, 2024, respectively. As of June 30, 2025 As of December 31, 2024 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash equivalents $ 63,906 $ 63,906 $ 61,889 $ 61,889 Liabilities: Mortgages payable (excluding deferred debt issuance costs, net) $ 994,561 $ 981,633 $ 996,544 $ 967,941 13 ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 9. 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 $ 338,000 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. 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. 10. Earnings Per Share The following table sets forth the computation of basic and diluted income per share, including 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 and six months ended June 30, 2025 and 2024. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands, except share and per share amounts) 2025 2024 2025 2024 Net income $ 6,120 $ 8,380 $ 18,432 $ 24,489 Weighted average shares outstanding – basic and diluted 5,134,599 5,131,902 5,134,069 5,131,290 Net income per common share – basic and diluted $ 1.19 $ 1.63 $ 3.59 $ 4.77 14 ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 11. 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 reportable 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 three and six months ended June 30, 2025 and 2024. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2025 2024 2025 2024 Rental revenues $ 51,589 $ 53,392 $ 106,504 $ 114,789 Real estate tax expense ( 14,758 ) ( 14,453 ) ( 29,684 ) ( 28,913 ) Other segment expenses (1) ( 11,176 ) ( 10,538 ) ( 21,814 ) ( 21,341 ) Total operating expenses ( 25,934 ) ( 24,991 ) ( 51,498 ) ( 50,254 ) NOI $ 25,655 $ 28,401 $ 55,006 $ 64,535 (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 three and six months ended June 30, 2025 and 2024. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2025 2024 2025 2024 NOI $ 25,655 $ 28,401 $ 55,006 $ 64,535 Interest and debt expense ( 12,801 ) ( 16,219 ) ( 23,595 ) ( 32,453 ) Interest and other income 3,928 7,054 7,873 14,216 General and administrative ( 1,955 ) ( 2,159 ) ( 3,546 ) ( 3,635 ) Depreciation and amortization ( 8,707 ) ( 8,697 ) ( 17,306 ) ( 18,174 ) Net income $ 6,120 $ 8,380 $ 18,432 $ 24,489 15 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 June 30, 2025, the related consolidated statements of income, comprehensive income, and changes in equity, for the three-month and six-month periods ended June 30, 2025 and 2024, and of cash flows for the six-month periods ended June 30, 2025 and 2024, 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, 2024, 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 10, 2025, 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, 2024, 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 August 4, 2025 16