Breaking Down Alexander's, Inc. (ALX) Financial Health: Key Insights for Investors

You're looking at Alexander's, Inc. (ALX) and wondering how this New York REIT is holding up against the commercial real estate headwinds, especially with interest rates still high; the short answer is that the nine-month financials for 2025 show a clear pressure point, but also a core resilience. For the nine months ended September 30, 2025, the company reported total revenue of $159.93 million, a noticeable drop from the prior year, mostly due to the Home Depot lease expiring at the 731 Lexington Avenue property. This pushed nine-month net income down to $24.4 million, but the operational picture, as measured by Funds From Operations (FFO), is a bit more stable, with Q3 FFO per diluted share actually rising slightly to $2.91 from $2.84 a year ago. Still, at a market capitalization of about $1.11 billion as of mid-November 2025, Alexander's Inc. is managing to keep its commercial occupancy strong at 94.9%, which defintely anchors its valuation in a tough market, so we need to dig into what's driving that operational stability versus the headline revenue dip.

Revenue Analysis

You're looking at Alexander's, Inc. (ALX) because you want to know if the income stream is solid, and honestly, the picture is mixed. As a Real Estate Investment Trust (REIT), Alexander's, Inc.'s revenue is straightforward: it's almost entirely derived from Rental Revenues, plus a small amount from parking and tenant services, all sourced from its portfolio of properties in the greater New York City metropolitan area.

The core of the business is leasing, so tenant stability is everything.

The most recent data, covering the nine months ended September 30, 2025, shows a clear dip in the top line. Total rental revenues for that period were $159.9 million, a noticeable drop from the $170.5 million reported for the same nine months in the prior year. This isn't a minor fluctuation; it's a decline driven by specific lease events.

Here's the quick math on the year-over-year trend, which shows the near-term headwind:

• Trailing Twelve Months (TTM) Revenue (as of September 30, 2025): $215.84 million
• TTM Revenue Growth Rate: -7.52% year-over-year
• Q3 2025 Quarterly Revenue: $53.42 million, down from $55.7 million in Q3 2024

The revenue decline for the third quarter of 2025 was primarily due to the expiration of Home Depot's lease at 731 Lexington Avenue, which alone caused a $3,774,000 reduction in rental revenue for the quarter. That's a big hit for one quarter. To be fair, new leases at Rego Park II did help, offsetting some of that loss by adding $1,417,000 in rental revenue.

When you look at segment contribution, you see the real concentration risk. One tenant, Bloomberg L.P., is defintely the anchor.

Mission Statement, Vision, & Core Values of Alexander's, Inc. (ALX).

For the nine months ended September 30, 2025, Bloomberg L.P. accounted for approximately 60% of the company's total rental revenues. This is a massive concentration, but it's mitigated somewhat by the fact that Alexander's, Inc. secured an extension on Bloomberg's lease, covering about 947,000 square feet, all the way to February 2040. That long-term commitment is a huge stability factor. No other tenant contributed more than 10% of rental revenues, which means the company's revenue profile is essentially a two-tier system: one giant anchor and a collection of smaller tenants.

Here is a simplified view of the revenue contribution:

Profitability Metrics

When we look at Alexander's, Inc. (ALX) through the lens of profitability, the picture is one of high margins typical for a Real Estate Investment Trust (REIT) but with a clear, concerning downward trend in the Trailing Twelve Months (TTM) ending in late 2025. You need to focus on the margin contraction, not just the absolute numbers.

The core profitability ratios for Alexander's, Inc. (ALX) as of the 2025 TTM show a solid, but declining, performance. The company's TTM Gross Margin stands at 52.09%, which is the percentage of revenue left after covering the cost of goods sold. However, this is significantly lower than the industry average of 68.29%. The TTM Operating Margin is 33.59%, reflecting the company's profit after all operating expenses, and it is almost perfectly in line with the industry average of 33.47%.

• Gross Margin: 52.09% (TTM 2025)
• Operating Margin: 33.59% (TTM 2025)
• Net Profit Margin: 17.14% (TTM 2025)

Margin Trends and Operational Efficiency

The most critical insight is the trend: Alexander's, Inc. (ALX)'s profitability is under pressure. The TTM Net Profit Margin has fallen to 17.14%, a sharp drop from the previous year's 22.1%, and substantially below the five-year average of 35.65%. This margin contraction is happening despite a decrease in interest and debt expenses due to refinancing activities.

Here's the quick math on the most recent quarter: For Q3 2025, the company reported net income of $5.968 million on revenues of $53.424 million, which translates to a quarterly Net Profit Margin of only 11.17%. That's a serious dip.

This decline in margins maps directly to operational challenges. Revenue for Q3 2025 declined to $53.42 million from $55.68 million in Q3 2024, primarily because of the expiration of The Home Depot's lease at 731 Lexington Avenue. Plus, operating expenses slightly increased to $26.69 million in Q3 2025. This combination-lower revenue from a major tenant loss and slightly higher costs-is what compresses margins.

The Gross Margin contraction from a five-year average of 55.38% down to 52.09% TTM suggests a structural issue in revenue generation or a rise in property-related costs, which is challenging their ability to defend margins in a competitive New York City real estate market.

Industry Comparison and Actionable Insights

While the TTM Operating Margin is competitive, the Net Profit Margin of 17.14% is well below the US Retail REIT industry average of 24.87%. This gap suggests Alexander's, Inc. (ALX) is incurring higher non-operating costs-like interest, taxes, or non-recurring items-relative to its peers.

Mission Statement, Vision, & Core Values of Alexander's, Inc. (ALX).

The market is defintely pricing in a premium, with the stock's TTM Price-to-Earnings (P/E) ratio at 30.7x, significantly higher than the US Retail REIT industry average of 26x. This premium valuation does not align with the recent profit trends or the analyst expectation of a 20.1% annual earnings contraction over the next three years.

The key action is to monitor the re-leasing of the large vacant space and watch for cost management improvements that can stabilize the Gross Margin. If the company cannot reverse the Gross Margin decline, the Net Profit Margin will continue to erode, making the current valuation unsustainable.

Debt vs. Equity Structure

Alexander's, Inc. (ALX) operates with a highly leveraged financial structure, which is common for a Real Estate Investment Trust (REIT) but still warrants close attention; the company's Debt-to-Equity (D/E) ratio sits at an elevated 7.69 for the 2025 fiscal year, signaling a heavy reliance on debt to finance its high-value New York City properties. This aggressive leverage strategy maximizes potential returns on equity, but it also amplifies your risk in a rising interest rate environment.

Here's the quick math on their financing mix. As of the first quarter of 2025, the company reported total equity of approximately $163.089 million, compared to a primary debt load-mostly 'Mortgages payable'-of about $988.021 million. This high D/E ratio of 7.69 is at the higher end of the typical range for REITs, which often runs from 1.0 to over 8.0:1. It's a high-wire act, but one that's been historically supported by the stable, long-term nature of their prime assets, like the Bloomberg headquarters at 731 Lexington Avenue.

The company's debt is split between short-term and long-term obligations, and the near-term maturities are the most critical risk factor you need to watch. The total liabilities are substantial, with short-term liabilities around $544.8 million and long-term liabilities at about $623.1 million. The primary concern is refinancing risk, particularly for debt originated when interest rates were much lower.

• Total Debt (Q1 2025): approx. $988.021 million.
• Total Equity (Q1 2025): approx. $163.089 million.
• Debt-to-Equity Ratio: 7.69.

Refinancing activity is a major near-term headwind. The company already refinanced the office condominium portion of 731 Lexington Avenue in 2024 with a new $400 million interest-only loan, fixed at 5.04% and maturing in October 2028. However, a combined balance of $502.5 million in other debt is coming due in 2025, including the debt on the 731 Lexington retail condominium, which was financed at a very low 1.76%. Refinancing that debt at today's materially higher rates will defintely increase interest expense, which will pressure cash flow and the dividend's sustainability.

Alexander's, Inc. balances its high debt financing with a relatively small equity base, mainly relying on the predictable cash flow from its core assets-like the recently extended Bloomberg lease-to service the debt. This is the core of their capital allocation strategy: use debt to acquire and hold trophy assets, and use stable rental income to cover the interest payments. The company has not engaged in significant recent equity funding, preferring debt, so the focus is entirely on debt management and interest coverage. To understand who is holding the bag on this structure, you should read Exploring Alexander's, Inc. (ALX) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You want to know if Alexander's, Inc. (ALX) has the cash on hand to manage its short-term obligations, and honestly, the numbers paint a picture of exceptional, almost excessive, liquidity. As a real estate investment trust (REIT), ALX operates with a different balance sheet structure than a typical industrial company, but the core metrics still scream financial strength in the near term.

The company's liquidity positions, measured by the Current Ratio and Quick Ratio (acid-test ratio), are remarkably high. For the 2025 fiscal year, both the Current Ratio and the Quick Ratio stand at 10.25. This figure is unusually strong; a ratio of 2.0 is often considered healthy. The fact that both ratios are identical at 10.25 tells you that inventory is negligible-which makes perfect sense for a REIT whose primary assets are long-term properties, not goods for sale. Simply put, ALX has $10.25 in current assets for every dollar of current liabilities. That's a huge buffer.

Here's the quick math on working capital (current assets minus current liabilities): Based on the Q3 2025 data, with Current Assets at $466.24 million and Total Current Liabilities at about $45.491 million, Alexander's, Inc. maintains a massive positive working capital of approximately $420.749 million. This trend of high positive working capital is a clear strength, minimizing any potential liquidity concerns. You're defintely not looking at a cash crunch here.

• Current Ratio: 10.25 (Strongest indicator of short-term health).
• Quick Ratio: 10.25 (No reliance on inventory for quick cash).
• Working Capital: $420.749 million (Huge short-term financial cushion).

Now, let's look at the Cash Flow Statement, which shows where the money is actually moving. For the TTM (trailing twelve months) ending September 2025, Alexander's, Inc. generated $80.83 million in cash from operating activities (CFO). This is the lifeblood of the business, and it's robust. The trend shows that the core business of leasing and managing properties is a consistent cash generator.

The cash flow from investing activities (CFI) is where a REIT spends money on its properties. In Q1 2025, the company used $8.021 million in net cash for investing, primarily for construction in progress and real estate additions. This is a healthy sign of reinvestment into their New York City properties, which is necessary to maintain asset value and future rental income. What this estimate hides, however, is the full-year capital expenditure plan, but the Q1 figure shows active, measured development.

The financing cash flow (CFF) is critical for a high-dividend-paying REIT. For Q1 2025, Alexander's, Inc. used $23.890 million in net cash for financing activities. The largest component of this was the $23.101 million paid out in dividends, plus some debt repayments. The key takeaway is that the operating cash flow of $80.83 million (TTM) comfortably covers the quarterly dividend payout, which is a significant strength for long-term investors focused on income. For more on the company's long-term philosophy, you can check their Mission Statement, Vision, & Core Values of Alexander's, Inc. (ALX).

The table below summarizes the key cash flow trends, showing where the company is generating and spending its cash:

The overall picture is one of rock-solid short-term liquidity, backed by consistent operating cash flow that easily funds the substantial dividend. Your action item is to look past the liquidity and focus on the company's long-term debt structure, which is the real solvency question for any REIT.

Valuation Analysis

You need a clear signal on whether Alexander's, Inc. (ALX) is a buy, a hold, or a sell right now, and the short answer is that the market sees it as a mixed bag, leaning toward a Buy consensus despite some stretched valuation multiples. The Real Estate Investment Trust (REIT) structure, managing prime New York City metropolitan area properties like 731 Lexington Avenue, complicates a straightforward valuation, so you have to look past the typical earnings-based metrics.

The stock price has been volatile over the past year, closing at $218.15 as of November 13, 2025, which is a -1.84% decrease over the last 52 weeks. The 52-week range shows a high of $260.84 and a low of $184.76, so you've seen a nearly $76 swing. Honestly, that kind of volatility in a REIT suggests market uncertainty about commercial real estate's near-term recovery, especially for a stock that hit an all-time high of $248.96 back in July 2025.

Here's the quick math on Alexander's, Inc.'s key valuation ratios, based on trailing twelve months (TTM) data as of the 2025 fiscal year:

• Price-to-Earnings (P/E) Ratio: 30.93. This is high, especially compared to the US Retail REITs industry average, suggesting the stock is expensive relative to its current earnings.
• Price-to-Book (P/B) Ratio: 8.79. A P/B this high means the market values the company at nearly nine times its book value (assets minus liabilities), which is a huge premium and points to significant intangible value or expected future growth in its real estate holdings.
• Enterprise Value-to-EBITDA (EV/EBITDA): 17.67. This is a better metric for REITs, and while it's not cheap, it gives you a clearer view of the operational value, including debt, which is substantial for a REIT.

The high trailing P/E of 30.93 is a warning flag if you only look at earnings, but what this estimate hides is the nature of a REIT, where Funds From Operations (FFO) is the more critical measure. You can dig deeper into that by Exploring Alexander's, Inc. (ALX) Investor Profile: Who's Buying and Why?

When looking at income, the dividend picture is compelling but carries risk. Alexander's, Inc. has an annual dividend of $18.00 per share, translating to a dividend yield of about 8.01%. That's a massive yield in the current market. But, the payout ratio is a concerning 129%. A ratio over 100% means the company is paying out more in dividends than it is earning, which is defintely not sustainable long-term without tapping into reserves or taking on more debt. You are being paid a lot, but you need to watch that safety net.

Wall Street analysts have a mixed but overall positive view on the stock right now. The consensus rating is a 'Buy,' based on the few analysts covering the stock, with the ratings split between 1 'Hold' and 1 'Strong Buy'. However, the single published analyst price target I see is $180, which suggests a significant downside from the current price. This divergence tells you that while the market is technically bullish, the fundamental price targets are lagging or extremely cautious.

Your action here is to treat Alexander's, Inc. as an income play with a high-risk premium. The high yield is the draw, but the high payout ratio and stretched P/E mean any hiccup in occupancy or rent collection could force a dividend cut, which would crush the stock price. Keep your position size small.

Risk Factors

You're looking at Alexander's, Inc. (ALX) as a stable real estate investment trust (REIT), and for good reason-it holds prime New York City properties. But as a realist, I have to point out that the company faces a few substantial headwinds that could defintely impact your returns. The core issue is a mix of tenant concentration, a heavy debt load, and the pressure on its dividend payout.

The biggest near-term risk is operational, specifically tenant concentration. Alexander's, Inc. relies heavily on a few key tenants, most notably Bloomberg. This single-tenant dependency means any financial or strategic shift by Bloomberg could disproportionately hit ALX's revenue. We saw the impact of tenant turnover when a lease expired for Home Depot at the 731 Lexington Avenue property, which previously generated around $15.00 million in annual rental revenue.

This revenue loss is already showing up in the numbers. For the third quarter ended September 30, 2025, Alexander's, Inc. reported rental revenues of $53.42 million, a noticeable decrease from the prior year's $55.67 million. This is a clear signal that backfilling large, vacated retail spaces is challenging in the current market. The good news is the portfolio's occupancy remains high, with the commercial rate at 94.9% and residential at 97.1% as of September 30, 2025. Still, you can't ignore the revenue decline.

Here's the quick math on the financial risk: Alexander's, Inc. carries a significant amount of leverage. As of March 31, 2025, the company had $988.021 million in mortgages payable. This high debt exposure is reflected in a debt-to-equity ratio that stands at an elevated 6.79. A ratio this high suggests greater financial risk and vulnerability to economic downturns, plus it makes refinancing existing debt a critical, high-stakes event, especially with fluctuating interest rates.

The pressure on the balance sheet directly impacts the strategic risk around the dividend. Alexander's, Inc. has maintained a quarterly dividend of $4.50 per share, which annualizes to $18.00. However, the payout ratio is a staggering 247.25%. This means the company is paying out far more than its current profits, raising a serious question about the long-term sustainability of that dividend if earnings continue to contract, as analysts expect an earnings decline of 20.1% per year over the next three years.

The primary mitigation strategy is lease-up and diversification. Management must focus on re-tenanting the large vacant spaces and reducing the reliance on any single entity. Also, they must manage the refinancing of debt to avoid being caught by a sudden spike in borrowing costs.

You need to watch these key metrics closely.

To get a full picture of who is taking these risks, you should read Exploring Alexander's, Inc. (ALX) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking for a clear path forward with Alexander's, Inc. (ALX), and the story is one of strategic asset optimization in a high-demand market. The direct takeaway is this: Alexander's, Inc.'s future growth is less about massive new acquisitions and more about extracting greater value from its existing, prime New York City real estate portfolio. This focus on redevelopment and lease management is a smart, lower-risk path for a real estate investment trust (REIT).

The company's growth drivers are rooted in its core strength: irreplaceable property locations. The management team, leveraging its relationship with Vornado Realty Trust for operational expertise, is executing a clear strategy. They are defintely not sitting still.

• Asset Repositioning: Redeveloping and repositioning properties to increase their appeal and value, like the proactive efforts at $\mathbf{731}$ Lexington Avenue and the Rego Park II property.
• High Occupancy and Rent Growth: Maintaining a commercial occupancy rate of $\mathbf{94.9\%}$ and a residential rate of $\mathbf{97.1\%}$ as of September $\mathbf{30}$, $\mathbf{2025}$ gives them pricing power. Management is optimistic about rent growth, potentially exceeding $\mathbf{20-25\%}$ over the next four to five years.
• De-risking Revenue: The long-term lease extension with Bloomberg L.P., covering approximately $\mathbf{947,000}$ square feet until February $\mathbf{2040}$, provides an incredibly stable revenue base, even though it creates a tenant concentration risk.

To be fair, the company is still exposed to the competitive New York City real estate market, but its strategic locations are a significant competitive advantage. You can see their foundational strategy laid out in their Mission Statement, Vision, & Core Values of Alexander's, Inc. (ALX).

Here's the quick math on what analysts are projecting for the near-term financials. While the overall annual revenue growth is forecast to be modest at $\mathbf{1.2\%}$ per year, the stability from existing leases and the potential for higher rents in a recovering market are the real story.

What this estimate hides is the long-term compounding effect of those $\mathbf{20\%+}$ rent increases on a portfolio of this quality. The short-term earnings per share (EPS) forecast shows a decline, from $\mathbf{\$11.50}$ to $\mathbf{\$10.51}$ in the next year, but this is often a result of non-recurring items or the timing of development expenses, not a fundamental flaw in the business. The company's strong free cash flow generation, reported at $\mathbf{\$97}$ million annually, demonstrates a developing operational efficiency that will fund future projects.