ALX 10-K & 10-Q changes, risk factors and insider trading

We may be adversely affected by trends in office real estate, including work from home trends.estate.

In 2024,2025, approximately 55%61% of our rental revenues was from Bloomberg, the office tenant at our 731 Lexington Avenue office property. Work from home, flexible or hybrid work schedules, open workplaces, videoconferencing, and teleconferencing remainhave prevalentbecome more common in certainrecent situations, following the COVID-19 pandemic.years. Changes in tenant space utilization, including from the continuation of work from home and flexible work arrangement policies, may cause office tenants to reassess their long-term physical space needs, which could have an adverse effect on our business. Additionally, the increased use of artificial intelligence (“AI”) could result in changes in tenant space utilization, including the need to reduce or reconfigure space.

All of our revenues come from properties located in New York City. Real estate markets are affected by economic downturns and we cannot predict how economic conditions will impact thisthe New York City market in either the short or long term. Declines in the economy and declines in the New York City real estate market have affectedimpacted and could affectimpact our financial performance and the value of our properties. In addition to the factors affecting the national economic conditionconditions generally, the factors affecting economic conditions in this area include:

•the fiscal health and policies of New York State and New York City governments and local transit authorities;

•changes in rates or limitations ofon the deductibility of state and local taxes.

Certain of our properties are New York City retail properties and thus are affected by the general and New York City retail environments, including the level of consumer spending and consumer confidence, New York City tourism, office and residential occupancy rates, employer remote-working policies, the threat of terrorism or other criminal acts, increasing competition from online retailers and other retail centers,centers and the impact of technological change upon the retail environment generally. These factors could adversely affect the financial condition of our retail tenants, or result in the bankruptcy of such tenants, and the willingnessdemand offor retailers to leasephysical space in our retail locations, which could have an adverse effect on the value of our properties, our business and profitability.

The value of our real estate and the value of an investment in us fluctuates depending on conditions in the general economy and the real estate business. These conditions may also adversely affectimpact our revenues and cash flows.

•potential changes in trade relationships, new tariffs and other trade protection measures or barriers that may adversely affect retailers and retail store values;

Real estate is a competitive business and that competition may adversely affectimpact us.

We compete with a large number of real estate investors, property owners and developers, some of whom may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, tenant concessions offered, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Substantially all of our properties face competition from similar properties in the same market, which may adversely affectimpact the rents we can charge at those properties and our results of operations.

When our tenants decide not to renew their leases upon their expiration, we may not be able to relet the space. Even if tenants do renew or we can relet the space, the terms of renewal or reletting, considering among other things, rent and concessions, the cost of improvements to the property and leasing commissions, may be on less economically favorable terms. In addition, changes in space utilization by our tenants may impact our ability to renew or relet space without the need to incur substantial costs in renovating or redesigning the internal configuration of the relevant property and/or space. If we are unable to promptly renew the leases or relet the space at similar rates, lease vacant space, or if we are otherwise not able to maintain occupancy on economically favorable terms, our cash flow and ability to service debt obligations and pay dividends and distributions to stockholders could be adversely affected.

We depend upon anchor tenants to attract shoppers at our Rego Park II retail propertiesproperty and decisions made by these tenants, or adverse developments in the businesses of these tenants, could materially affect our financial condition and results of operations.

Our Rego Park II retail propertiesproperty areis anchored by well-known large format retailers and other tenants who generate shopping traffic. The value of thesethis propertiesproperty would be adversely affected if our anchor tenants failed to meet their contractual obligations, sought concessions in order to continue operations or ceased their operations, including as a result of bankruptcy. If the level of sales at stores operating inat ourthis propertiesproperty were to decline significantly due to economic conditions, increased competition from online shopping, closing of anchors or for other reasons, tenants may be unable to pay their minimum rents or expense recovery charges. In the event of a default by a tenant or anchor, we may experience delays and costs in enforcing our rights as landlord. Additionally, closure of an anchor or major tenant could result in lease terminations by, or reductions of rent from other tenants if the other tenants’ leases have co-tenancy clauses.

From time-to-time, some of our tenants have declared bankruptcy, and other tenants may declare bankruptcy, become insolvent or experience a material business downturn adversely affecting their ability to make timely rental payments in the future. If a tenant does not pay its rent, we may face delays enforcing our rights as landlord and may incur substantial legal and other costs. Even if we are able to enforce our rights, a tenant may not have recoverable assets. The bankruptcy or insolvency of a major tenant may delay our efforts to collect past-due balances under the relevant leases and could ultimately preclude collection of these amounts altogether. As a result, the bankruptcy or insolvency of, or nonpayment by, a major tenant could cause us to suffer lower revenues and operational difficulties, including leasing the remainder of the property, which could in turn result in decreased net income and funds available to pay our indebtedness andor make distributions to stockholders.

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.

All of our properties are located in New York City, and our most significant property, 731 Lexington Avenue, is located on Lexington Avenue and 59th Street in Manhattan. In response to a terrorist attack, the perceived threat of terrorism or other criminal acts, tenants in this area may choose to relocate their businesses to less populated, lower-profile areas of the United States that may be perceived to be less likely targets of future terrorist activity or have lower rates of crime and fewer customers may choose to patronize businesses in this area. This, in turn, couldwould trigger a decrease in the demand for space in this area, which could increase vacancies in our properties and force us to lease space on less favorable terms. Furthermore, we may experience increased costs for security, equipment and personnel. As a result, the value of our properties and the level of our revenues and cash flows could decline materially.

The effects of climate change and natural disasters could have a concentrated impact on the area where we operate and could adversely affectimpact our results.

Our properties are located in New York City. Physical climate change and natural disasters, including earthquakes, storms, storm surges, tornados, floodsfloods, hurricanes and hurricanes,rising sea levels, could cause significant damage to our properties and the surrounding environment or area. Potentially adverse consequences of climate change, including rising sea levels and increased temperature fluctuations, could similarly have an impact on our properties and the economies of the metropolitan area in which we operate. Government efforts to combat climate change may impact the cost of operating our properties. Over time, these conditions could result in declining demand for space in our buildings or the inability of us to operate the buildings at all. ClimateExtreme changeweather events may also have indirect effects on our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy at our properties and requiring us to expend funds as we seek to repair and protect our properties against such risks. The incurrence of these losses, costs or business interruptions may adversely affectimpact our operating and financial results.

Our properties are located in an urban area, which means the vitality of our properties is reliant on sound transportation and utility infrastructure systems. If one of those systems is compromised in any way by an extreme weather event, such a compromise could have an adverse effectimpact on our local economies and populations, as well as on our tenants’ ability to do business in our buildings.

De-carbonizationDecarbonization of grid-supplied energy (as has been mandated by the Climate Leadership and Community Protection Act (“CLCPA”) in New York State) could lead to increased energy costs and operating expenses for our buildings. In October 2025, the Albany County Supreme Court ordered the New York Department of Environmental Conservation (“DEC”) to finalize regulations required under the CLCPA. This ruling compels the DEC to implement a cap-and-invest program to enforce greenhouse gas emission limits, which had been delayed. Retrofitting our building systems to consume less energy couldhas leadled to increased capital costs. In addition, buildings which consume fossil fuel onsite may be subject to penalties in the future. Although these laws and regulations have not had any material adverse effects on our business to date, they could result in substantial costs, including compliance costs, increased energy costs, retrofit costs and construction costs. We cannot predict how future laws and regulations, or future interpretations of current laws and regulations, related to climate change will affect our business, results of operations and financial condition.

We may become subject to costs, taxes or penalties, or increases therein, associated with natural resource or energy usage, such as a “carbon tax” and by local legislation such as New York City’s Local Law 97, which sets limits on carbon emissions in our buildings and imposes penalties if we exceed those limits, and New York City’s Intro 2317, or the “gas ban” bill, which limits any onsite fossil fuel combustion in new construction and major renovations. We actively track and assess possible impact from regulations across our buildings and evaluate cost of compliance versus impact on business operations and property valuations in our regular capital cycles. These costs, taxes or penalties could increase our operating costs and decrease the cash available to pay our indebtednessobligations and make distributions to our stockholders.

The rules dealing with U.S. federal, state and local income taxation are constantly under review by persons involved in the legislative process and by the IRS and the Treasury Department. Changes to tax laws (which changes may have retroactive application) could adversely affect the taxation of REITs and their shareholders. We cannot predict whether, when, in what form, or with what effective dates, tax laws, regulations and rulings may be enacted, promulgated or decided, or technical corrections made, which could result in an increase in our, or our stockholders’, tax liability or require changes in the manner in which we operate in order to minimize increases in our tax liability. If such changes occur, we may be required to pay additional taxes on our assets or income and/or be subject to additional restrictions. These increased tax costs could, among other things, adversely affect the trading price for our common shares, our financial condition, our results of operations and the amount of cash available to pay our indebtedness and make distributions to our stockholders.

Elevated rates of inflation, both real and anticipated, may impact our business and results of operations. In a highly inflationary environment, we may be unable to raise rental rates at or above the rate of inflation, which could reduce our profit margins. In addition, our cost of labor and materials could increase, which could have an adverse effectimpact on our business and financial results. Increased inflation could also adversely affect us by increasing costs of construction and renovation. While increases in most operating expenses at our properties can be passed on to our office and retail tenants, some tenants have fixed reimbursement charges, and expenses at our residential property may not be able to be passed on to residential tenants. An increase in unreimbursed operating expenses may reduce cash flow available to pay our indebtedness and make distributions to our stockholders.

Although our current business strategy is not to engage in acquisitions, we may acquire, develop or redevelop properties when we believe that an acquisition, development or redevelopment project is otherwise consistent with our business strategy. We may not succeed in (i) acquiring, developing,developing or redeveloping properties; (ii) completing these activities on time or within budget; and (iii) leasing or selling acquired, developed,developed or redeveloped properties at amounts sufficient to cover our costs. Competition in these activities could also significantly increase our costs. Difficulties in integrating acquisitions may prove costly or time-consuming and could divert management’s attention. Acquisitions, developments or redevelopments in new markets or types of properties where we do not have the same level of market knowledge may result in weaker than anticipated performance. We may also abandon acquisition, development or redevelopment opportunities that we have begun pursuing and consequently fail to recover expenses already incurred. Furthermore, we may be exposed to the liabilities of properties acquired, some of which we may not be aware of at the time of acquisition.

We continue to engage in development, redevelopment and repositioning activities with respect to our properties, and,and accordinglyaccordingly, we are subject to certain risks in connection with development and redevelopment activities, which could adversely affect us, including our financial condition and results of operations. These risks include, without limitation, (i) the availability and pricing of financing on favorable terms or at all; (ii) the availability and timely receipt of zoning and other regulatory approvals; (iii) cost overruns, especially in an inflationary environment, and untimely completion of construction (including risks beyond our control, such as weather or labor conditions, material shortages or supply chain delays); (iv) the potential for the fluctuation of occupancy rates and rents at redeveloped properties, which may result in our investment not being profitable; (v) start up, repositioning and redevelopment costs may be higher than anticipated; (vi) the potential that we may fail to recover expenses already incurred if we abandon development or redevelopment opportunities after we begin to explore them; (vii) the potential that we may expend funds on and devote management’s time to projects which we do not complete; (viii) the inability to complete leasing of a property on schedule or at all, resulting in an increase in carrying or redevelopment costs and (ix) the possibility that properties will be leased at below expected rental rates. These risks could result in substantial unanticipated delays or expenses and couldexpenses, prevent the initiation or the completion of redevelopment activities or reduce the ultimate rents achieved on new developments. These outcomes could have an adverse effect on our financial condition, results of operations, cash flow, the market value of our common shares and ability to paysatisfy our indebtedness and make distributions to our stockholders.

Significantly tighter capitalCapital markets and economic conditions can materially affect our liquidity, financial condition and results of operations as well as the value of an investment in our common stock.

There are many factors that can affect the value of our equitycommon securities,stock, including the state of the capital markets and the economy. Demand for office and retail space typically declines nationwide due to an economic downturn, bankruptcies, downsizing, layoffs and cost cutting. Government action or inaction may adversely affect the state of the capital markets. The cost and availability of credit may be adversely affected by illiquid credit markets and wider credit spreads, which may adversely affect our liquidity and financial condition, including our results of operations, and the liquidity and financial condition of our tenants. Our inability or the inability of our tenants to timely refinance maturing liabilities andliabilities, access the capital markets and obtain reasonable pricing to meet liquidity needs may materially affect our financial condition and results of operations and the value of our common stock.

We have outstanding debt, and the amount of debt and its cost may continue to increase and; refinancing may not be available on acceptable terms,terms whichand could affect our future operations.

If a property is mortgaged to secure payment of indebtedness and income from such property is insufficient to pay that indebtedness, the property could be foreclosed upon by the mortgagee resulting in aour loss of the property.

If we are unable to obtain additional debt financing or refinance existing indebtedness upon maturity, our financial condition and results of operations would likely be adversely affected. In addition, the volatility in the interest rate environment in recent years has led to an increasefluctuations in interest rates on our variable rate debt, including on new hedging instruments, and an increase in the cost of refinancing our existing debt and entering into new debt, all which have reduced, and could continue to reduce our operating cash flows. While certain of our debt is fixed by an interest rate swap arrangement, the arrangement expires earlier than the mortgage loan maturity, resulting in future exposure to rising interest rates, which could further reduce our available cash. If the cost or amount of our indebtedness continues to increaseincreases or we cannot refinance our debt in sufficient amounts or on acceptable terms, we arepotentially could be at risk of default on our obligations that could adversely affect our financial condition and results of operations.

The interest rate hedge instruments we may use to manage some of our exposure to interest rate volatility involve risks, including the risk that counterparties may fail to perform under these arrangements. If interest rates continue tosubsequently fall, these arrangements may cause us to pay higher interest on our debt obligations than would otherwise be the case. In addition, the use of such instruments may generate income that may not be treated as qualifying REIT income for purposes of the 75% gross income test or 95% gross income test. Furthermore, there can be no assurance that our hedging arrangements will qualify as “highly effective” cash flow hedges under applicable accounting standards. If our hedges do not qualify as “highly effective,” the changes in the fair value of these instruments would be reflected in our results of operations and could adversely affectimpact our earnings.

Substantially all of our assets are owned by subsidiaries. We depend on dividends and distributions from these subsidiaries. The creditors of these subsidiaries are entitled to amounts payable to them by the subsidiaries before the subsidiaries may pay any dividends or make distributions to us.

Because of their overlapping interests, Vornado, Mr. Roth, Interstate and the other individuals noted in the preceding paragraphs may have substantial influence over Alexander’s, and on the outcome of any matters submitted to Alexander’s stockholders for approval. In addition, certain decisions concerning our operations or financial structure may present conflicts of interest among Vornado, Messrs. Roth, Mandelbaum and Wight and Interstate and other security holders. Vornado, Mr. Roth and Interstate may, in the future, engage in a wide variety of activities in the real estate business which may result in conflicts of interest with respect to matters affecting us, such as, which of these entities or persons, if any, may take advantage of potential business opportunities, the business focus of these entities, the types of properties and geographic locations in which these entities make investments, potential competition between business activities conducted, or sought to be conducted, by us, competition for properties and tenants, possible corporate transactions such as acquisitions, and other strategic decisions affecting the future of these entities.

For additional information on our cybersecurity risk management process, see “Item 1C. CybersecurityCybersecurity.” in this Annual Report on Form 10-K.

We may fail to qualify or remain qualified as a REIT, and may be required to pay federal income taxes at corporate rates, which could adversely affectimpact the value of our common stock.

From time-to-time changes in state and local tax laws or regulations are enacted, which may result in an increase in our tax liability. A shortfall in tax revenues for states and municipalities in which we operate may lead to an increase in the frequency and size of such changes in laws, regulations and administration of property and transfer taxes. If such changes occur, we may be required to pay additional taxes on our assets or income. These increased tax costs could adversely affect our financial condition and results of operations and the amount of cash available to pay our indebtedness and make distributions to our stockholders.

Each of our properties has been subjectedsubject to varying degrees of environmental assessment. To date, these environmental assessments have not revealed any environmental condition material to our business. However, identification of new compliance concerns or undiscovered areas of contamination, changes in the extent or known scope of contamination, human exposure to contamination or changes in clean-up or compliance requirements could result in significant costs to us.

OurThis Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) within this section is focused on the years ended December 31, 20242025 and 2023,2024, including year-to-year comparisons between these years. Our MD&A for the year ended December 31, 2022,2023, including year-to-year comparisons between 20232024 and 2022,2023, can be found in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.2024.

FundsNet from operations (“FFO”) (non-GAAP)income for the year ended December 31, 20242025 was $77,968,000,$28,224,000 or $15.19$5.50 per diluted share, compared to $81,067,000,$43,444,000 or $15.80$8.46 per diluted share for the year ended December 31, 2023.2024.

FinancingFinancings

On SeptemberDecember 30,5, 2024,2025, we entered intocompleted a new$175,000,000 $400,000,000refinancing of the mortgage loan on theour officeRego condominiumPark portionII ofshopping 731 Lexington Avenue.center. The interest-only loan hasis aat fixedSOFR rateplus 2.00% (5.72% as of 5.04%December 31, 2025) and matures inon OctoberDecember 2028.5, The2030. loanWe ispaid prepayable,down atby the Company’s option, with no penalty, beginning in October 2026. The new loan replaces$23,544,000 the previous $490,000,000$198,544,000 loan that bore interest at theSOFR Primeplus Rate1.45% and was scheduled to mature inon OctoberDecember 2024.12, 2025.

Our properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment analyses are based on current plans, intended holding periods, ability to hold,hold and available information at the time the analyses are prepared. Assessing impairment can be complex and involves a high degree of subjectivity in determining if impairment indicators are present and in estimating the future undiscounted cash flows or the fair value of an asset. In particular, these estimates are sensitive to significant assumptions, including the estimation of future rental revenues, operating expenses, capital expenditures, discount and capitalization rates and our intent and ability to hold the related asset, all of which could be affected by our expectations about future market or economic conditions. These estimates can have a significant impact on the undiscounted cash flows or estimated fair value of an asset and could thereby affect the value of our real estate on our consolidated balance sheets as well as any potential impairment losses recognized on our consolidated statements of income.

Rental revenues were $226,374,000$213,183,000 in the year ended December 31, 2024,2025, compared to $224,962,000$226,374,000 in the prior year, ana increasedecrease of $1,412,000.$13,191,000. This was primarily due to (i) $4,583,000$13,831,000 of higherlower rental revenue from Bloomberg’sHome Depot’s lease extension,expiration at 731 Lexington Avenue and (ii) $2,322,000 of higher real estate tax reimbursements due to higher real estate tax expense, partially offset by (iii) $3,785,000$9,001,000 of lower rental revenue from IKEA’s lease expiration at Rego Park I, partially offset by (iviii) $875,000$4,399,000 of lowerhigher rental revenue from Bednew Bath & Beyond’s lease rejectionleases at Rego Park I,II, (iv) $3,403,000 of higher recoveries of operating expenses and capital expenditures and (v) $781,000$2,325,000 of lowerhigher rental revenue from Old Navy’sBloomberg’s lease terminationextension at Rego731 ParkLexington I.Avenue.

Operating expenses were $103,240,000$106,376,000 in the year ended December 31, 2024,2025, compared to $101,210,000$103,240,000 in the prior year, an increase of $2,030,000.$3,136,000. This was primarily due to (i) $2,388,000 of higher operating expenses subject to recovery, including real estate tax expensetaxes and noncommon reimbursablearea maintenance and (ii) $1,179,000 of higher operating expenses,expenses not subject to recovery, partially offset by (iii) higher capitalized expenses duringof the current year.$431,000.

Depreciation and amortization was $34,782,000$35,061,000 in the year ended December 31, 2024,2025, compared to $32,898,000$34,782,000 in the prior year, an increase of $1,884,000.$279,000. This was primarily due to higher depreciation and amortization expense on capital projectscosts placedfor intonew service.leases at Rego Park II, partially offset by the accelerated depreciation and amortization related to IKEA’s lease expiration at Rego Park I in the prior year.

General and administrative expenses were $6,519,000$6,555,000 in the year ended December 31, 2024,2025, compared to $6,341,000$6,519,000 in the prior year, an increase of $178,000. This was primarily due to higher professional fees.$36,000.

Interest and other income was $24,429,000$14,657,000 in the year ended December 31, 2024,2025, compared to $22,245,000$24,429,000 in the prior year, ana increasedecrease of $2,184,000.$9,772,000. This was primarily due to ana increasedecrease in average interest rates.rates and investment balances.

Interest and debt expense was $62,818,000$51,624,000 in the year ended December 31, 2024,2025, compared to $58,297,000$62,818,000 in the prior year, ana increasedecrease of $4,521,000.$11,194,000. This was primarily due to higher(i) interest$8,439,000 from lower rates, additional(ii) costs$6,833,000 associated withfrom the refinancing and downsize of our office condominium atthe 731 Lexington Avenue,Office loan in September 2024 and higher(iii) deferred$5,883,000 debt issuance cost amortization, partially offset byof lower interest rate cap premium amortization.amortization, partially offset by (iv) $9,665,000 from the expiration of the 731 Lexington Retail swap in May 2025.

Our cash requirements include property operating expenses, capital improvements, tenant improvements, debt service, leasing commissions, dividends to stockholders as well asand development costs. The sources of liquidity to fund these cash requirements include rental revenue, which is our primary source of cash flow and is dependent upon the occupancy and rental rates of our properties, as well as our existing cash, proceeds from financings, including mortgage or construction loans secured by our properties and proceeds from asset sales.

As of December 31, 2024,2025, we had $393,836,000$192,225,000 of liquidity comprised of cash and cash equivalents and restricted cash. RecentThe increasesongoing fluctuations in interest rates and the effects of inflation could adversely affect our cash flow from continuing operations but we anticipate that cash flow from continuing operations over the next twelve months, together with existing cash balances, will be adequate to fund our business operations, cash dividends to stockholders, debt service and capital expenditures. We may refinance our maturing debt as it comes due or choose to pay it down. However, there can be no assurance that additional financing or capital will be available to refinance our debt, or that the terms will be acceptable or advantageous to us.

Net cash provided by operating activities of $54,106,000 was comprised of (i) net income of $43,444,000 and (ii) adjustments for non-cash items of $58,440,000, partially offset by (iii) the net change in operating assets and liabilities of $47,778,000. The adjustments for non-cash items were comprised of (i) depreciation and amortization (including amortization of debt issuance costs) of $37,897,000, (ii) straight-lining of rents of $13,116,000, (iii) interest rate cap premium amortization of $6,483,000, (iv) other non-cash adjustmentsamortization of $494,000deferred lease incentives of $4,897,000 and (v) stock-based compensation expense of $450,000.$450,000, partially offset by (vi) $4,403,000 other non-cash adjustments.

Capital expenditures consist of expenditures to maintain and improve assets, tenant improvement allowances, lease incentives and leasing commissions. During 2025,2026, we expect to spend approximately $125,000,000$55,000,000 of capital expenditures at our properties. We plan to fund these capital expenditures from operating cash flow, existing liquidity,liquidity and/or borrowings.

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.

Certain statements contained in this Quarterly Report constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this Quarterly Report on Form 10-Q. We also note the following forward-looking statements: estimates of future rents, estimates of future capital expenditures,expenditures and estimates of dividends on shares of our common stock, the timing of closing the sale of our Rego Park I property and the estimates of financial impact from such sale.stock. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. For a further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Management’s Discussion and Analysis of Financial Condition and Results of Operations include a discussion of our consolidated financial statements for the three and six months ended MarchJune 31,30, 2026. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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 MarchJune 31,30, 2026 are not necessarily indicative of the operating results for the full year.

A summary of the critical accounting policies and estimates used in the preparation of our consolidated financial statements is included in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025. For the threesix months ended MarchJune 31,30, 2026, there were no material changes to these estimates or policies.

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 fivefour properties in New York City.

Quarter Ended MarchJune 31,30, 2026 Financial Results Summary

Net income for the quarter ended MarchJune 31,30, 2026 was $4,662,000,$155,362,000, or $0.91$30.24 per diluted share, compared to $12,312,000$6,120,000 or $2.40$1.19 per diluted share in the prior year’s quarter. Net income for the quarter ended June 30, 2026 included $148,002,000, or $28.81 per diluted share, of income as a result of a net gain from the sale of the Rego Park I property.

Funds from operations (“FFO”) (non-GAAP) for the quarter ended MarchJune 31,30, 2026 was $13,364,000,$15,538,000, or $2.60$3.02 per diluted share, compared to $20,842,000$14,762,000 or $4.06$2.88 per diluted share in the prior year’s quarter.

Our portfolio is comprised of fivefour properties aggregating 2,446,0002,110,000 square feet. As of MarchJune 31,30, 2026, the commercial occupancy rate was 94.4%94.6% and the residential occupancy rate was 97.4%.

Bloomberg L.P. (“Bloomberg”) leases approximately 947,000952,000 square feet at our 731 Lexington Avenue property and accounted for revenue of $32,471,000$65,229,000 and $32,205,000$64,446,000 for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively, representing approximately 61%60% and 59%61% 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.

In May 2024, Alexander’s and Bloomberg entered into an agreement to extend Bloomberg’s leases that were scheduled to expire in February 2029 for a term of eleven years to February 2040. In connection with the lease extension, Bloomberg was entitled to a $113,618,000 tenant fund which is accounted for as a lease incentive under GAAP. Accordingly, there iswas aan initial deferred lease incentive asset of $113,618,000, which is amortized as a reduction to rental revenues over the remaining term of the lease, and a corresponding liability. These amounts are included in “Deferred leasing costs, net” and “Lease incentive liability,” on our consolidated balance sheets. On March 31, 2026, Alexander’s and Bloomberg entered into a lease amendment providing Bloomberg with a rent abatement of $56,809,000 for the period of April 1, 2026 to December 1, 2026, which reduces the tenant fund by a corresponding amount over that period from $113,618,000 to $56,809,000.

Results of Operations – Three Months Ended MarchJune 31,30, 2026, compared to MarchJune 31,30, 2025

Rental revenues were $53,412,000$54,711,000 for the three months ended MarchJune 31,30, 2026, compared to $54,915,000$51,589,000 for the prior year’s three months, aan decreaseincrease of $1,503,000.$3,122,000. This was primarily due to (i) $1,907,000$1,699,000 of lowerhigher straight-line revenue resulting from a tenant lease modification and $1,501,000 of higher rental revenue from Homenew Depot’s lease expiration and other retail tenant expirationsleases at 731the LexingtonRego Avenue,Park shopping center, (ii) $1,555,000 of payments received in the prior year’s three months for tenant receivables that were previously written off and (iii) $976,000 of lower rental revenue from lease expirations at Rego Park I, partially offset by (iv) $1,674,000$1,654,000 of higher operating expense recoveries from higher operating expenses and (viii) $1,446,000$415,000 of higher lease termination fee income, partially offset by (iv) $1,243,000 of lower rental revenue from newretail leasestenant expirations at 731 Lexington Avenue and (v) $1,104,000 of lower rental revenue from lease expirations at Rego Park II.I.

Operating expenses were $28,980,000$26,743,000 for the three months ended MarchJune 31,30, 2026, compared to $25,564,000$25,934,000 for the prior year’s three months, an increase of $3,416,000.$809,000. This was primarily due to (i) $1,686,000$786,000 of higher operating expenses subject to recovery, including common area maintenance and real estate taxes,taxes and (ii) $899,000$696,000 of lower capitalized expensesexpenses, andpartially offset by (iii) $829,000$879,000 of higherlower operating expenses notat subjectRego toPark recovery.I.

General and administrative expenses were $1,713,000$3,266,000 for the three months ended MarchJune 31,30, 2026, compared to $1,591,000$1,955,000 for the prior year’s three months, an increase of $122,000.$1,311,000. This was primarily due to $1,062,000 of higher professional fees.fees and $263,000 of higher stock-based compensation expense from an increase in the amount of deferred stock units granted to our Board of Directors in the current year’s quarter.

Interest and other income was $1,446,000$1,684,000 for the three months ended MarchJune 31,30, 2026, compared to $3,945,000$3,928,000 for the prior year’s three months, a decrease of $2,499,000.$2,244,000. This was primarily due to a decrease in average investment balances and interest rates.

Interest and debt expense was $10,729,000$10,796,000 for the three months ended MarchJune 31,30, 2026, compared to $10,794,000$12,801,000 for the prior year’s three months, a decrease of $65,000.$2,005,000. This was primarily due to (i) $2,616,000$2,502,000 of lower interest expense from the 731 Lexington Avenue retail loan restructuring in December 2025 and (ii) $501,000$441,000 of lower interest expense from the Rego Park IIshopping center loan refinancing in December 2025, partially offset by (iii) $3,065,000$1,155,000 from the expiration of the 731 Lexington Avenue retail interest rate swap in May 2025.

As of MarchJune 31,30, 2026, we had $152,051,000$358,345,000 of liquidity comprised of cash and cash equivalents and restricted cash. The ongoing challenges posed by fluctuations in interest rates and the effects of inflation could adversely affect our cash flow from continuing operations but we anticipate that cash flow from continuing operations over the next twelve months, together with existing cash balances, will be adequate to fund our business operations, cash dividends to stockholders, debt service and capital expenditures. We may refinance our maturing debt as it comes due or choose to pay it down. However, there can be no assurance that additional financing or capital will be available to refinance our debt, or that the terms will be acceptable or advantageous to us.

For the ThreeSix Months Ended MarchJune 31,30, 2026

Cash and cash equivalents and restricted cash were $152,051,000$358,345,000 as of MarchJune 31,30, 2026, compared to $192,225,000 as of December 31, 2025, aan decreaseincrease of $40,174,000.$166,120,000. This decreaseincrease resulted from (i) $23,878,000$199,339,000 of net cash usedprovided inby investing activities and (ii) $23,112,000$13,005,000 of net cash provided by operating activities, partially offset by (iii) $46,224,000 of net cash used in financing activities, partially offset by (iii) $6,816,000 of net cash provided by operating activities.

Net cash usedprovided inby investing activities of $23,878,000$199,339,000 was comprised of (i) $19,316,000$205,819,000 of paymentsproceeds related to the property held forfrom sale andof real estate, partially offset by (ii) $4,562,000$6,480,000 of construction in progress and real estate additions.

Net cash provided by operating activities of $15,720,000$13,005,000 was comprised of (i) net income of $12,312,000$160,024,000, andpartially offset by (ii) adjustments for non-cash items of $12,743,000,$121,563,000 partially offset byand (iii) the net change in operating assets and liabilities of $9,335,000.$25,456,000. The adjustments for non-cash items were comprised of (i) net gain on sale of real estate of $148,002,000 and (ii) straight-lining of rents of $566,000, partially offset by (iii) depreciation and amortization (including amortization of debt issuance costs) of $9,389,000,$18,292,000, (iiiv) PIK interest expense of $3,832,000, (v) amortization of deferred lease incentives of $1,818,000,$3,541,000, (iii) straight-lining of rents of $1,020,000, (ivvi) other non-cash adjustments of $340,000$681,000, (vii) stock-based compensation of $656,000 and (ivviii) interest rate cap premium amortization of $176,000.$3,000.