Alexanders Inc (ALX)

Price$262.42Cached quoteAs of 2026-09-05 20:54 UTC

AI: Overvalued

Price checkThe shares look expensive because recurring property earnings do not support the dividend.

The equity is valued around $1.27 billion. Against 2025 funds from operations of $12.27 a share—a property-earnings measure excluding depreciation and sale gains—the shares trade near 20 times; annualizing first-half 2026 gives about 22 times. The $18 yearly dividend yields roughly 7.2%, but equals about 160% of annualized first-half property earnings. That mismatch makes the yield partly dependent on asset-sale cash, supporting an Overvalued verdict unless recurring earnings rise sharply or hidden property value is realized.

Big pictureRental income remains resilient, but recurring earnings and cash coverage have weakened.

Revenue fell 6% to $213.2 million in 2025, while operating income declined 20% to $65.2 million. Funds from operations dropped from $15.19 to $12.27 a share, then fell another 19% year over year during the first half of 2026. Cash from operations swung from $109.1 million in 2023 to $54.1 million in 2024 and $73.4 million in 2025; the last two years did not cover roughly $92.4 million of annual dividends. Vacancies, leasing costs and property sales therefore create meaningful earnings cycles.

Business strengthLong leases and high occupancy help, but one tenant dominates the business.

The four-property portfolio was 94.6% commercially occupied and 97.4% residentially occupied. Bloomberg supplied about 60% of first-half rental revenue, although its lease extending through 2040 reduces near-term renewal risk. June cash of $303.3 million provides flexibility, but mortgages totaled $840.5 million, leaving roughly $537.2 million of net debt; $94 million matures in 2027 and $400 million in 2028. Quarter-end shares remained near 5.1 million from 2020 through 2026, indicating little historical dilution, while buybacks were absent and dividends consumed substantial cash.

What could change the storyBetter lease cash flow or disciplined debt reduction could justify the demanding valuation.

The bull case requires Target’s new lease, the end of Bloomberg’s temporary rent relief and other leasing gains to lift recurring property earnings toward $18 a share, where the annual dividend would become covered. Applying the $203 million Rego Park sale proceeds to debt could also reduce refinancing risk. The bear case is continued use of sale cash for distributions while underlying earnings remain near $11–$12 a share, followed by costly 2027–2028 refinancing. The valuation also assumes Bloomberg remains reliable and the remaining properties hold substantial unrecorded value.

AI: News

Sale Gain Masks Softer HalfA property-sale gain lifted reported profit, while the underlying property earnings measure improved only slightly.

On August 3, Alexander’s reported second-quarter net income of $155.4 million, including a $148.0 million property-sale gain. Funds from operations, which removes property sale gains and depreciation, rose 5% to $15.5 million for the quarter but fell 19% to $28.9 million for the half year. Shares gained 4.6% in the following session, although timing alone cannot prove that the earnings release caused the move.

Target Takes Major SpaceTarget’s long lease nearly fills the shopping center and reduces a large vacancy risk.

Alexander’s announced on June 29 that Target signed a 15-year lease for 135,000 square feet at the 600,000-square-foot Rego Park Shopping Center. The agreement lifted reported occupancy to 99% and extended the center’s weighted average remaining lease term to about 9.3 years. The previous tenant could terminate in August by paying approximately $29 million. Future rent, opening costs and Target’s commencement date were not disclosed, leaving the near-term cash benefit uncertain.

Rego Park Sale ClosesThe completed property sale raised liquidity but removed an asset from the future rent base.

On May 28, Alexander’s completed the Rego Park I sale to Northwell Health for $235.5 million. Net proceeds were about $203 million, and the company recorded a $148 million accounting gain. Cash subsequently rose substantially, strengthening near-term liquidity and the capacity to reduce debt or fund dividends. However, the sale also reduced the portfolio from five properties to four. Because the main terms were announced in March, the closing itself provided limited new economic information.

Loading local price history

Revenue

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

No reported data

Total cash / debt

CashTotal debt

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$213.2M	$226.4M	$225.0M	$205.8M	$206.1M	$199.1M	$226.3M	$232.8M	$230.6M	$226.9M	$207.9M	$200.8M	$196.5M	$191.3M	$185.2M	$174.2M	$223.5M
Operating expenses	$148.0M	$144.5M	$140.4M	$126.3M	$130.0M	$127.1M	$126.9M	$132.2M	$125.3M	$121.5M	$112.7M	$104.1M	$98.9M	$95.7M	$87.6M	$83.2M	$72.4M
Operating income	$65.2M	$81.8M	$84.5M	$79.5M	—	—	—	$100.6M	$105.3M	$105.5M	$95.2M	$96.7M	$97.5M	$95.6M	$97.7M	$91.0M	$151.2M
Operating margin	30.58%	36.15%	37.57%	38.61%	—	—	—	43.22%	45.66%	46.47%	45.79%	48.15%	49.64%	49.96%	52.73%	52.23%	67.62%
EBITDA	$118.0M	$144.2M	$195.2M	$117.7M	—	—	—	$139.1M	$144.0M	$141.8M	$128.9M	$128.6M	$128.9M	$131.9M	$134.8M	$125.8M	$181.6M
EBITDA margin	55.35%	63.68%	86.76%	57.18%	—	—	—	59.75%	62.43%	62.50%	61.98%	64.04%	65.62%	68.97%	72.75%	72.24%	81.24%
Net income	$28.2M	$43.4M	$102.4M	$57.6M	$132.9M	$41.9M	$60.1M	$32.8M	$80.5M	$86.5M	$76.9M	$67.9M	$56.9M	$674.4M	$79.4M	$66.4M	$132.2M
Net profit margin	13.24%	19.19%	45.52%	28.00%	64.48%	21.06%	26.54%	14.11%	34.92%	38.11%	36.99%	33.82%	28.97%	352.51%	42.87%	38.13%	59.14%
Basic EPSper basic share	$5.50	$8.46	$19.97	$11.24	$25.94	$8.19	$11.74	$6.42	$15.74	$16.91	$15.04	$13.29	$11.14	$132.04	$15.55	$13.01	$25.90
Diluted EPSper diluted share	$5.50	$8.46	$19.97	$11.24	$25.94	$8.19	$11.74	$6.42	$15.74	$16.91	$15.04	$13.29	$11.14	$132.04	$15.55	$13.01	$25.89

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

4.50%of listed shares

BlackRock, Inc.229.59K shares · Jun 30, 2026

View holders

Top 20 reported holders of ALX
Holder	% owned
BlackRock, Inc.	4.50%229.59K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	3.70%188.95K shares
MORGAN STANLEY	3.20%163.37K shares
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.	3.08%157.14K shares
GOLDMAN SACHS GROUP INC	2.63%134.08K shares
SOUTHEASTERN ASSET MANAGEMENT INC/TN/	1.94%99.01K shares
VANGUARD CAPITAL MANAGEMENT LLC	1.78%90.98K shares
HEALTHCARE OF ONTARIO PENSION PLAN TRUST FUND	1.78%90.73K shares
GEODE CAPITAL MANAGEMENT, LLC	1.21%61.61K shares
STATE STREET CORP	1.09%55.76K shares
TWO SIGMA INVESTMENTS, LP	1.05%53.54K shares
PUNCH & ASSOCIATES INVESTMENT MANAGEMENT, INC.	1.01%51.41K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.67%34.02K shares
DIMENSIONAL FUND ADVISORS LP	0.67%33.99K shares
CITIGROUP INC	0.63%31.94K shares
JACOBS LEVY EQUITY MANAGEMENT, INC	0.55%28.27K shares
SG Americas Securities, LLC	0.55%28.24K shares
Bulldog Investors, LLP	0.55%28K shares
Beverly Hills Private Wealth, LLC	0.51%25.91K shares
NORGES BANK	0.49%25.1K shares