Earnings

Alexander's Third-Quarter FFO Rebounds After Rego Park Sale

The Tip Desk · November 10, 2026 · 4 min read

Funds from operations were $36.35 million, or $7.07 a share, as Kohl’s lease modification lifted straight-line rental revenue.

Alexander’s, Inc. (ALX), a New York City real estate investment trust managed by Vornado Realty Trust, reported funds from operations of $36.35 million, or $7.07 a diluted share, for the three months ended September 30, 2026, compared with $14.92 million, or $2.91 a share, a year earlier.

The sequential rebound followed a June quarter in which FFO was $15.54 million, or $3.02 a share. GAAP net income was $27.40 million, or $5.33 a share, versus $5.97 million, or $1.16 a share, in the year-ago quarter. The Rego Park I sale gain was recognized in the second quarter, so it did not sit in the third-quarter income line.

Rental revenues were $72.06 million, up $18.63 million from $53.42 million a year earlier. The company said the increase was primarily $18.80 million of higher straight-line revenue from the Kohl’s lease modification at the Rego Park shopping center and $1.14 million of higher operating-expense recoveries, partly offset by $1.04 million of lower rental revenue from retail tenant expirations at 731 Lexington Avenue. Sequential rental revenue was $72.06 million after $54.71 million in the June quarter.

On June 26, 2026, Alexander’s entered a lease modification with Kohl’s for its 135,000-square-foot Rego Park store, providing options to early terminate in August 2026 subject to about $29.00 million from Kohl’s, and simultaneously signed a 15-year lease, plus renewal options, with Target for that space. On August 2, 2026, Kohl’s terminated and paid the remaining $25.10 million of the $29.00 million termination payment.

Operating expenses were $25.89 million, down $808,000 from $26.69 million a year earlier, primarily from $2.62 million of lower operating expenses after the Rego Park I sale and $626,000 of higher capitalized expenses, offset by $1.26 million of higher recoverable operating expenses and $1.17 million of higher non-recoverable operating expenses. Depreciation and amortization was $8.98 million. General and administrative expenses were $1.99 million, primarily from higher professional fees.

Interest and debt expense was $10.93 million, down $3.15 million from $14.08 million a year earlier, primarily from $2.52 million of lower interest expense after the December 2025 731 Lexington Avenue retail loan restructuring and $403,000 of lower interest expense after the December 2025 Rego Park shopping center loan refinancing. Interest and other income was $3.13 million.

The May 28, 2026 sale of Rego Park I for $235.50 million, with $202.75 million of proceeds net of costs and a $148.00 million financial-statement gain, had already closed in the second quarter. The portfolio then comprised four properties aggregating 2,106,000 square feet, down from five properties aggregating 2,446,000 square feet as of March 31, 2026. Commercial occupancy was 94.6% and residential occupancy 98.1% as of September 30, 2026.

Bloomberg L.P. leases about 952,000 square feet at 731 Lexington Avenue and accounted for $99.00 million of revenue for the nine months ended September 30, 2026, about 55% of rental revenues, versus $96.66 million and about 60% a year earlier. A March 31, 2026 amendment provided Bloomberg a $56.81 million rent abatement for April 1, 2026 to December 1, 2026, reducing the tenant fund from $113.62 million to $56.81 million over that period. The lease incentive liability was $73.83 million as of September 30, 2026.

Cash and cash equivalents and restricted cash were $349.13 million as of September 30, 2026. The company said it anticipates that cash flow from continuing operations over the next twelve months, together with existing cash balances, will be adequate to fund operations, cash dividends, debt service and capital expenditures. Mortgages payable, net of deferred debt issuance costs, were $837.16 million.

An August 2026 arbitration panel set the Flushing ground-lease fair market rental value so that, effective February 2027, annual ground rent will increase from $800,000 to $5.40 million and New World Mall’s annual rent from $3.70 million to $6.60 million.