Alexander’s, Inc. (ALX) reported first‑quarter 2026 results on May 4, 2026, posting net income of $4.7 million and revenue of $53.412 million. Earnings per share were $0.91, a 62% decline from the $12.3 million net income and $2.40 EPS reported in Q1 2025. Funds from Operations, a key metric for REITs, fell to $13.4 million ($2.60 per share) from $20.8 million ($4.06 per share) in the prior year.
The revenue decline of 2.7% reflects the impact of several lease expirations and tenant concentration. Home Depot’s lease at 731 Lexington Avenue expired, and the company’s largest tenant, Bloomberg LP, received a substantial rent abatement, reducing rental income. The combined effect of these events, along with modest demand weakness in the New York City market, pushed revenue below the consensus estimate of $53.40 million.
The earnings miss was driven by lower rental income and higher operating costs. EPS of $0.91 fell 70% below the analyst consensus of $3.08, a miss of $2.17 per share. The FFO miss of $0.48 per share (36% lower than the $3.08 estimate) underscores the pressure on operating cash flow from the lease expirations and cost inflation. Management did not provide forward guidance, indicating caution about near‑term performance.
A significant tailwind is the pending sale of the Rego Park I shopping center. The company agreed to sell the property for $235.5 million, with an expected net gain of about $147 million, targeted for closing by Q3 2026. The proceeds are expected to improve liquidity and reduce debt, offsetting some of the earnings pressure seen in the quarter.
Alexander’s declared a regular quarterly dividend of $4.50 per share, payable May 29, 2026. The dividend, yielding roughly 7.2%–7.4% annually, remains a key attraction for income‑focused investors, though its sustainability will be monitored as the company navigates the current earnings miss and the impact of the Rego Park I sale.
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