10-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10‑K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the Fiscal Year Ended: December 31, 2014

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from	to
Commission File Number:	001-6064

ALEXANDER’S, INC.

(Exact name of registrant as specified in its charter)

Delaware	51-0100517
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
210 Route 4 East, Paramus, New Jersey	07652
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (201)587-8541 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $1 par value per share	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
YES x NO o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 (d) of the Act.
YES o NO x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES x NO o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any,
every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section  232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit
and post such files).  
x Yes  o No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S‑K (section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10‑K or any amendment to this Form 10‑K. x

Indicate by check mark whether the registrant is a large accelerated filer, accelerated filer, a non-accelerated filer, or a

smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting

company” in Rule 12b-2 of the Exchange Act.

x Large Accelerated Filer	o Accelerated Filer
o Non-Accelerated Filer (Do not check if smaller reporting company)	o Smaller Reporting Company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES o NO x

The aggregate market value of the voting and non-voting shares of common stock held by non-affiliates of the registrant, (i.e., by persons other than officers and directors of Alexander’s, Inc.) was $779,918,000 at June 30, 2014.

As of January 31, 2015, there were 5,106,196 shares of the registrant’s common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Part III: Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on May 21, 2015.

 

INDEX
	Item	Financial Information:		Page
Part I.	1.	Business		4
	1A.	Risk Factors		6
	1B.	Unresolved Staff Comments		15
	2.	Properties		16
	3.	Legal Proceedings		18
	4.	Mine Safety Disclosures		18
Part II.	5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
			Purchases of Equity Securities	19
	6.	Selected Financial Data		21
	7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		22
	7A.	Quantitative and Qualitative Disclosures about Market Risk		33
	8.	Financial Statements and Supplementary Data		34
	9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure		53
	9A.	Controls and Procedures		53
	9B.	Other Information		56
Part III.	10.	Directors, Executive Officers and Corporate Governance(1)		56
	11.	Executive Compensation(1)		57
	12.	Security Ownership of Certain Beneficial Owners and Management and Related
			Stockholder Matters(1)	57
	13.	Certain Relationships and Related Transactions, and Director Independence(1)		57
	14.	Principal Accounting Fees and Services(1)		57
Part IV.	15.	Exhibits, Financial Statement Schedules		58
Signatures				59

_____________________________

(1)These items are omitted in part or in whole because the registrant will file a definitive Proxy Statement pursuant to Regulation 14A under the Securities Exchange Act of 1934 with the Securities and Exchange Commission no later than 120 days after December 31, 2014, portions of which are incorporated by reference herein. 

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FORWARD-LOOKING STATEMENTS

Certain statements contained herein 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 Annual Report on Form 10‑K.  We also note the following forward-looking statements:  in the case of our development projects, the estimated completion date, estimated project costs and costs to complete; and estimates of dividends on shares of our common 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 this Annual Report on Form 10‑K. 

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K or the date of any document incorporated by reference.  All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.  We do not undertake any obligation to release publicly, any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Annual Report on Form 10-K.

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PART I

ITEM 1.     BUSINESS

GENERAL

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 six properties in the greater New York City metropolitan area consisting of:

Operating properties

·731 Lexington Avenue, a 1,307,000 square foot multi-use building, comprising the entire square block bounded by Lexington Avenue, East 59^th Street, Third Avenue and East 58^th Street in Manhattan.  The building contains 885,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold.  Bloomberg L.P. (“Bloomberg”) occupies all of the office space.  The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants;

·Rego Park I, a 343,000 square foot shopping center, located on Queens Boulevard and 63^rd Road in Queens.  The center is anchored by a 195,000 square foot Sears department store, a 50,000 square foot Burlington Coat Factory, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls;

·Rego Park II, a 609,000 square foot shopping center, located adjacent to the Rego Park I shopping center in Queens.  The center is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.  In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado;

·Paramus, located at the intersection of Routes 4 and 17 in Paramus, New Jersey, consists of 30.3 acres of land that is leased to IKEA Property, Inc.; and

·Flushing, a 167,000 square foot building, located at Roosevelt Avenue and Main Street in Queens, that is sub-leased to New World Mall LLC for the remainder of our ground lease term.

Property under development

·Rego Park II Apartment Tower; We are in the process of constructing an apartment tower above our Rego II shopping center, containing 312 units aggregating 255,000 square feet, which is expected to be completed in 2015.  The estimated cost of this project is approximately $125,000,000, of which $73,327,000 has been incurred as of December 31, 2014.  There can be no assurance that the project will be completed, or completed on schedule or within budget. 

Property to be developed

·Rego Park III, a 3.2 acre land parcel adjacent to the Rego Park II shopping center in Queens at the intersection of Junction Boulevard and the Horace Harding Service Road.

Relationship with Vornado

We are managed by, and our properties are leased and developed by, Vornado, pursuant to agreements which expire in March of each year and are automatically renewable.  Vornado is a fully-integrated REIT with significant experience in managing, leasing, developing, and operating retail and office properties.

At December 31, 2014, Vornado owned 32.4% of our outstanding common stock.  Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (“Interstate”), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado.  At December 31, 2014, Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.3% of our outstanding common stock, in addition to the 2.1% they indirectly own through Vornado.  Joseph Macnow, our Executive Vice President and Chief Financial Officer, is the Executive Vice President – Finance and Chief Administrative Officer of Vornado.  Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornado.

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Significant Tenants

Bloomberg accounted for $91,109,000, $88,164,000 and $86,468,000, or 45% of our total revenues in each of the years ended December 31, 2014, 2013 and 2012, respectively.  No other tenant accounted for more than 10% of our total revenues in any of the last three years.  If we were to lose Bloomberg as a tenant, or if Bloomberg were to fail or become unable to perform its obligations under its lease, it would adversely affect our results of operations and financial condition.  We receive and evaluate certain confidential financial information and metrics from Bloomberg on a semi-annual basis.  In addition, we access and evaluate financial information regarding Bloomberg from private sources, as well as publicly available data.

In October 2014, Bloomberg exercised its option to extend leases that were scheduled to expire in December 2015 covering 188,608 square feet of office space at our 731 Lexington Avenue property for a term of 5 years.  We are currently in negotiations with Bloomberg to determine the rental rate for the extension period.

Competition

We operate in a highly competitive environment.  All of our properties are located in the greater New York City metropolitan area.  We compete with a large number of property owners and developers.  Principal factors of competition are the amount of rent charged, attractiveness of location and quality and breadth of services provided.  Our success depends upon, among other factors, trends of the world, national and local economies, the financial condition and operating results of current and prospective tenants and customers, the availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population trends, zoning laws, and our ability to lease, sublease or sell our properties, at profitable levels.  Our success is also subject to our ability to refinance existing debt on acceptable terms as it comes due.

Employees

We currently have 68 employees.

Executive Office

Our executive office is located at 210 Route 4 East, Paramus, New Jersey, 07652 and our telephone number is (201) 587-8541.

Available Information

Copies of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports, as well as Reports on Forms 3, 4 and 5 regarding officers, directors, and 10% beneficial owners filed or furnished pursuant to Section 13(a), 15(d) or 16(a) of the Securities Exchange Act of 1934, are available free of charge on our website (www.alx-inc.com) as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”).  Also available on our website are copies of our Audit Committee Charter, Compensation Committee Charter, Code of Business Conduct and Ethics and Corporate Governance Guidelines.  In the event of any changes to these items, revised copies will be made available on our website.  Copies of these documents are also available directly from us, free of charge. 

On April 11, 2000, Vornado and Interstate filed with the SEC, the 26^th amendment to a Form 13D indicating that they, as a group, own in excess of 51% of our common stock.  This ownership level makes us a “controlled” company for the purposes of the New York Stock Exchange, Inc.’s Corporate Governance Standards (the “NYSE Rules”).  This means that we are not required to, among other things, have a majority of the members of our Board of Directors be independent under the NYSE Rules, have all of the members of our Compensation Committee be independent under the NYSE Rules or to have a Nominating Committee.  While we have voluntarily complied with a majority of the independence requirements of the NYSE Rules, we are under no obligation to do so and this situation may change at anytime.

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ITEM 1a.  risk factors

Material factors that may adversely affect our business and operations are summarized below.  The risks and uncertainties described herein may not be the only ones we face.  Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business.  See “Forward-Looking Statements” contained herein on page 3.

REAL ESTATE INVESTMENTS’ VALUE AND INCOME FLUCTUATE DUE TO VARIOUS FACTORS.

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

The factors that affect the value of our real estate include, among other things:

·      global, national, regional and local economic conditions;

·      competition from other available space;

·      local conditions such as an oversupply of space or a reduction in demand for real estate in the area;

·      how well we manage our properties;

·      changes in market rental rates;

·      the timing and costs associated with property improvements and rentals;

·      whether we are able to pass all or portions of any increases in operating costs through to tenants;

·      changes in real estate taxes and other expenses;  

·      whether tenants and users such as customers and shoppers consider a property attractive;

·      the financial condition of our tenants, including the extent of tenant bankruptcies or defaults;

·      availability of financing on acceptable terms or at all;

·      inflation or deflation;

·      fluctuations in interest rates;

·      our ability to obtain adequate insurance;

·      changes in zoning laws and taxation;

·      government regulation;

·      consequences of any armed conflict involving, or terrorist attack against, the United States or individual acts of violence in public spaces, including retail centers;

·      potential liability under environmental or other laws or regulations;

·      natural disasters;

·      general competitive factors; and

·climate changes.

The rents we receive and the occupancy levels at our properties may decline as a result of adverse changes in any of these factors.  If our rental revenues and/or occupancy levels decline, we generally would expect to have less cash available to pay our indebtedness and for distribution to our stockholders.  In addition, some of our major expenses, including mortgage payments, real estate taxes and maintenance costs generally do not decline when the related rents decline.

Capital markets and economic conditions can materially affect our liquidity, financial condition and results of operations, as well as the value of our debt and equity securities.

There are many factors that can affect the value of our equity securities and any debt securities we may issue in the future, including the state of the capital markets and economy.  Demand for office and retail space may decline nationwide as it did in 2008 and 2009, due to the 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 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 and access the capital markets to meet liquidity needs may materially affect our financial condition and results of operations and the value of our equity securities and any debt securities we may issue in the future.

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We are subject to risks that affect the general and New York City retail environments.

Certain of our properties are New York City retail properties.  As such, these properties are affected by the general and New York City retail environments, including the level of consumer spending and consumer confidence, unemployment rates, the threat of terrorism and increasing competition from discount retailers, outlet malls, retail websites and catalog companies.  These factors could adversely affect the financial condition of our retail tenants and the willingness of retailers to lease space in our retail locations.

Real estate is a competitive business.

We compete with a large number of property owners and developers, some of which may be willing to accept lower returns on their investments than we are.  Principal factors of competition include rents charged, attractiveness of location, the quality of the property and breadth and quality of services provided.  Our success depends upon, among other factors, trends of the global, national and local economies, the financial condition and operating results of current and prospective tenants and customers, the availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population and employment trends, zoning laws and our ability to lease, sublease or sell our properties, at profitable levels. 

We depend on leasing space to tenants on economically favorable terms and collecting rent from tenants who may not be able to pay.

Our financial results depend significantly on leasing space in our properties to tenants on economically favorable terms.  In addition, because a majority of our income is derived from renting real property, our income, funds available to pay indebtedness and funds available for distribution to stockholders will decrease if certain of our tenants cannot pay their rent or if we are not able to maintain our occupancy levels on favorable terms.  If a tenant does not pay its rent, we might not be able to enforce our rights as landlord without delays and might incur substantial legal and other costs.  During periods of economic adversity, there may be an increase in the number of tenants that cannot pay their rent and an increase in vacancy rates.

Bankruptcy or insolvency of tenants may decrease our revenues, net income and available cash.

From time to time, some of our tenants have declared bankruptcy, and other tenants may declare bankruptcy or become insolvent in the future.  The bankruptcy or insolvency of a major tenant could cause us to have difficulty leasing the remainder of the affected property.  Our leases generally do not contain restrictions designed to ensure the creditworthiness of our tenants.  As a result, the bankruptcy or insolvency of a major tenant could result in a lower level of net income and funds available to pay our indebtedness or make distributions to stockholders. 

731 Lexington Avenue accounts for a substantial portion of our revenues.  Loss of or damage to the building would adversely affect our financial condition and results of operations.

731 Lexington Avenue accounted for $133,024,000, $128,845,000 and $126,034,000, or 66% of our total revenues in each of the years ended December 31, 2014, 2013 and 2012, respectively.  Loss of or damage to the building in excess of our insurance coverage, including as a result of a terrorist attack, would adversely affect our results of operations and financial condition.

Bloomberg represents a significant portion of our revenues.  Loss of Bloomberg as a tenant or deterioration in Bloomberg’s credit quality could adversely affect our financial condition and results of operations.

Bloomberg accounted for $91,109,000, $88,164,000 and $86,468,000, or 45% of our total revenues in each of the years ended December 31, 2014, 2013 and 2012, respectively.  No other tenant accounted for more than 10% of our total revenues in any of the last three years.  If we were to lose Bloomberg as a tenant, or if Bloomberg were to fail or become unable to perform its obligations under its lease, it would adversely affect our results of operations and financial condition.

We face risks associated with our tenants being designated “Prohibited Persons” by the Office of Foreign Assets Control and similar requirements. 

Pursuant to Executive Order 13224 and other laws, the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”) maintains a list of persons designated as terrorists or who are otherwise blocked or banned (“Prohibited Persons”) from conducting business or engaging in transactions in the United States and thereby restricts our doing business with such persons. Our leases, loans and other agreements may require us to comply with OFAC and related requirements.  If a tenant or other party with whom we conduct business is placed on the OFAC list or is otherwise a party with which we are prohibited from doing business, we may be required to terminate the lease or other agreement.  Any such termination could result in a loss of revenue or otherwise negatively affect our financial results and cash flows.

7

 

Our business and operations would suffer in the event of system failures. 

Despite system redundancy, the implementation of security measures and the existence of a disaster recovery plan for our internal information technology systems, our systems are vulnerable to damages from any number of sources, including computer viruses, unauthorized access, energy blackouts, natural disasters, terrorism, war and telecommunication failures.  Any system failure or accident that causes interruptions in our operations could result in a material disruption to our business.  We may also incur additional costs to remedy damages caused by such disruptions.

The occurrence of cyber incidents, or a deficiency in our cybersecurity, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships, all of which could negatively impact our financial results.

A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity, or availability of our information resources. More specifically, a cyber incident is an intentional attack or an unintentional event that can include gaining unauthorized access to systems to disrupt operations, corrupt data, or steal confidential information. As our reliance on technology has increased, so have the risks posed to our systems, both internal and those we have outsourced. Our primary risks that could directly result from the occurrence of a cyber incident are theft of assets, operational interruption, damage to our relationship with our tenants, and private data exposure.  We have implemented processes, procedures and controls to help mitigate these risks, but these measures, as well as our increased awareness of a risk of a cyber incident, do not guarantee that our financial results will not be negatively impacted by such an incident.

We may incur significant costs to comply with environmental laws and environmental contamination may impair our ability to lease and/or sell real estate.

Our operations and properties are subject to various federal, state and local laws and regulations concerning the protection of the environment including air and water quality, hazardous or toxic substances and health and safety.  Under some environmental laws, a current or previous owner or operator of real estate may be required to investigate and clean up hazardous or toxic substances released at a property.  The owner or operator may also be held liable to a governmental entity or to third parties for property damage or personal injuries and for investigation and clean-up costs incurred by those parties because of the contamination.  These laws often impose liability without regard to whether the owner or operator knew of the release of the substances or caused such release.  The presence of contamination or the failure to remediate contamination may impair our ability to sell or lease real estate or to borrow using the real estate as collateral.  Other laws and regulations govern indoor and outdoor air quality including those that can require the abatement or removal of asbestos-containing materials in the event of damage, demolition, renovation or remodeling and also govern emissions of and exposure to asbestos fibers in the air.  The maintenance and removal of lead paint and certain electrical equipment containing polychlorinated biphenyls (PCBs) are also regulated by federal and state laws.  We are also subject to risks associated with human exposure to chemical or biological contaminants such as molds, pollens, viruses and bacteria which, above certain levels, can be alleged to be connected to allergic or other health effects and symptoms in susceptible individuals.  We could incur fines for environmental compliance and be held liable for the costs of remedial action with respect to the foregoing regulated substances or related claims arising out of environmental contamination or human exposure at or from our properties.

Each of our properties has been subjected to varying degrees of environmental assessment at various times.  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 cleanup or compliance requirements could result in significant costs to us.

In addition, we may become subject to costs or taxes, or increases therein, associated with natural resource or energy usage (such as a “carbon tax”).  These costs or taxes could increase our operating costs and decrease the cash available to pay our obligations or distribute to equity holders.

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Some of our potential losses may not be covered by insurance.

We maintain general liability insurance with limits of $300,000,000 per occurrence 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.

Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020.  Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate.  Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies with no exposure to FNSIC.  For NBCR acts, FNSIC is responsible for a $275,000 deductible and 15% of the balance (16% effective January 1, 2016) of a covered loss, and the Federal government is responsible for the remaining 85% (84% effective January 1, 2016) of a covered loss.  We are ultimately responsible for any loss incurred by FNSIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism.  However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future.  We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.

Our mortgage loans are non-recourse to us, except for $75,000,000 of the $320,000,000 mortgage on the retail portion of our 731 Lexington Avenue property, in the event of a substantial casualty, as defined.  Our mortgage loans contain customary covenants requiring us to maintain insurance.  Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future.  If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance or refinance our properties.

Compliance or failure to comply with the Americans with Disabilities Act or other safety regulations and requirements could result in substantial costs.

The Americans with Disabilities Act (“ADA”) generally requires that public buildings, including our properties, meet certain federal requirements related to access and use by disabled persons.  Noncompliance could result in the imposition of fines by the federal government or the award of damages to private litigants and/or legal fees to their counsel.  If, under the ADA, we are required to make substantial alterations and capital expenditures in one or more of our properties, including the removal of access barriers, it could adversely affect our financial condition and results of operations, as well as the amount of cash available for distribution to stockholders.

Our properties are subject to various federal, state and local regulatory requirements, such as state and local fire and life safety requirements.  If we fail to comply with these requirements, we could incur fines or private damage awards.  We do not know whether existing requirements will change or whether compliance with future requirements will require significant unanticipated expenditures that will affect our cash flow and results of operations.

We depend upon anchor tenants to attract shoppers at our Rego Park I and II retail properties.

Our Rego Park I and II retail properties are anchored by well-known department stores and other tenants who generate shopping traffic.  The value of these properties 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 sales of stores operating in our properties were to decline significantly due to economic conditions, 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.

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OUR INVESTMENTS ARE CONCENTRATED IN THE GREATER NEW YORK CITY METROPOLITAN AREA. CIRCUMSTANCES AFFECTING THIS AREA GENERALLY COULD ADVERSELY AFFECT OUR BUSINESS.

All of our properties are in the greater New York City metropolitan area and are affected by the economic cycles and risks inherent in that area.

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

·      financial performance and productivity of the media, advertising, financial, technology, retail, insurance and real estate industries;

·      unemployment levels;

·      business layoffs or downsizing;

·      industry slowdowns;

·      relocations of businesses;

·      changing demographics;

·      increased telecommuting and use of alternative work places;

·      infrastructure quality; and

·      any oversupply of, or reduced demand for, real estate.

It is impossible for us to assess the future effects of trends in the economic and investment climates of the greater New York City metropolitan region, and more generally of the United States, on the real estate market in this area.  Local, national or global economic downturns, would negatively affect our business and profitability.

Terrorist attacks, such as those of September 11, 2001 in New York City, may adversely affect the value of our properties and our ability to generate cash flow.

All of our properties are located in the greater New York City metropolitan area, and our most significant property, 731 Lexington Avenue, is located on Lexington Avenue and 59^th Street in Manhattan.  In the aftermath of a terrorist attack, tenants in this area may choose to relocate their businesses to less populated, lower-profile areas of the United States that are not as likely to be targets of future terrorist activity and fewer customers may choose to patronize businesses in this area.  This would trigger a decrease in the demand for space in these markets, which could increase vacancies in our properties and force us to lease our properties on less favorable terms.  As a result, the value of our properties and the level of our revenues could decline materially.

Natural Disasters could have a concentrated impact on the area which we operate and could adversely impact our results.

Our investments are in the New York metropolitan area and since they are concentrated along the Eastern Seaboard, natural disasters, including hurricanes, could impact our properties.  Potentially adverse consequences of “global warming” could similarly have an impact on our properties.  As a result, we could become subject to significant losses and/or repair costs which may or may not be fully covered by insurance and to the risk of business interruption.  The incurrence of these losses, costs or business interruptions may adversely affect our operating and financial results.      

10

 

WE MAY ACQUIRE OR SELL ASSETS OR DEVELOP PROPERTIES.  OUR FAILURE OR INABILITY TO CONSUMMATE THESE TRANSACTIONS OR MANAGE THESE TRANSACTIONS COULD ADVERSELY AFFECT OUR OPERATIONS AND FINANCIAL RESULTS.

We may acquire or develop properties and this may create risks, including failing to complete such activities on time or within budget, competition for such activities that could increase our costs, being unable to lease newly acquired, developed or redeveloped properties at rents sufficient to cover our costs, difficulties in integrating acquisitions and weaker than expected performance.

Although our stated business strategy is not to engage in acquisitions, we may acquire or develop properties when we believe that an acquisition or development project is otherwise consistent with our business strategy.  We may not, however, succeed in consummating desired acquisitions or in completing developments on time or within budget.  In addition, we may face competition in pursuing acquisition or development opportunities that could increase our costs.  When we do pursue a project or acquisition, we may not succeed in leasing newly-developed, redeveloped or acquired properties at rents sufficient to cover costs of acquisition, development or redevelopment and operations.  Difficulties in integrating acquisitions may prove costly or time-consuming and could divert management’s attention.  Acquisitions or developments 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 abandon acquisition or development opportunities that we have begun pursuing and consequently fail to recover expenses already incurred and have devoted management time to a matter not consummated. 

It may be difficult to buy and sell real estate quickly, which may limit our flexibility.

Real estate investments are relatively difficult to buy and sell quickly.  Consequently, we may have limited ability to vary our portfolio promptly in response to changes in economic or other conditions.  Moreover, our ability to buy, sell, or finance real estate assets may be adversely affected during periods of uncertainty or unfavorable conditions in the credit markets as we, or potential buyers of our assets, may experience difficulty in obtaining financing.

We have an investment in marketable equity securities.  The value of this investment may decline.

We have an investment in Macerich, a retail shopping center company.  As of December 31, 2014, this investment had a carrying amount of $44,646,000.  A significant decline in the value of this investment due to, among other reasons, Macerich’s operating performance or economic or market conditions, may result in the recognition of an impairment loss, which could be material.

OUR ORGANIZATIONAL AND FINANCIAL STRUCTURE GIVES RISE TO OPERATIONAL AND FINANCIAL RISKS.

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 distributions to us.

Substantially all of our properties and assets are held through our subsidiaries.  We depend on cash distributions and dividends from our subsidiaries for substantially all of our cash flow.  The creditors of each of our direct and indirect subsidiaries are entitled to payment of that subsidiary’s obligations to them when due and payable before that subsidiary may make distributions or dividends to us.  Thus, our ability to pay dividends, if any, to our security holders depends on our subsidiaries’ ability to first satisfy their obligations to their creditors and our ability to satisfy our obligations, if any, to our creditors.

In addition, our participation in any distribution of the assets of any of our direct or indirect subsidiaries upon the liquidation, reorganization or insolvency of the subsidiary, is only after the claims of the creditors, including trade creditors, and preferred security holders, if any, of the applicable direct or indirect subsidiaries are satisfied.

Our existing financing documents contain covenants and restrictions that may restrict our operational and financial flexibility.

At December 31, 2014, substantially all of the individual properties we own were encumbered by mortgages.  These mortgages contain covenants that limit our ability to incur additional indebtedness on these properties, provide for lender approval of tenants’ leases in certain circumstances, and provide for yield maintenance or defeasance premiums to prepay them.  These mortgages may significantly restrict our operational and financial flexibility.  In addition, if we were to fail to perform our obligations under existing indebtedness or become insolvent or were liquidated, secured creditors would be entitled to payment in full from the proceeds of the sale of the pledged assets prior to any proceeds being paid to other creditors or to any holders of our securities.  In such an event, it is possible that we would have insufficient assets remaining to make payments to other creditors or to any holders of our securities. 

11

 

We have outstanding debt, and the amount of debt and its cost may increase and refinancing may not be available on acceptable terms.

As of December 31, 2014, total debt outstanding was $1,032,780,000 and our ratio of total debt to total enterprise value was 34.3%.  “Enterprise value” means the market equity value of our common stock, plus debt, less cash and cash equivalents at such date.  In addition, we have significant debt service obligations.  For the year ended December 31, 2014, our scheduled cash payments for principal and interest were $35,835,000.  In the future, we may incur additional debt, and thus increase the ratio of total debt to total enterprise value.  If our level of indebtedness increases, there may be an increased risk of default which could adversely affect our financial condition and results of operations.  In addition, in a rising interest rate environment, the cost of refinancing our existing debt and any new debt or market rate security or instrument may increase.  Continued uncertainty in the equity and credit markets may negatively impact our ability to obtain financing on reasonable terms or at all, which may negatively affect our ability to refinance our debt.   

We might fail to qualify or remain qualified as a REIT, and may be required to pay income taxes at corporate rates.

Although we believe that we will remain organized and will continue to operate so as to qualify as a REIT for federal income tax purposes, we might fail to remain qualified.  Qualification as a REIT for federal income tax purposes is governed by highly technical and complex provisions of the Internal Revenue Code (the “Code”) for which there are only limited judicial or administrative interpretations and depends on various facts and circumstances that are not entirely within our control.  In addition, legislation, new regulations, administrative interpretations or court decisions may significantly change the relevant tax laws and/or the federal income tax consequences of qualifying as a REIT.

If, with respect to any taxable year, we fail to maintain our qualification as a REIT and do not qualify under statutory relief provisions, we could not deduct distributions to stockholders in computing our taxable income and would have to pay federal income tax on our taxable income at regular corporate rates. The federal income tax payable would include any applicable alternative minimum tax. If we had to pay federal income tax, the amount of money available to distribute to stockholders and pay our indebtedness would be reduced for the year or years involved, and we would no longer be required to make distributions to stockholders. In addition, we would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification was lost, unless we were entitled to relief under the relevant statutory provisions.

We face possible adverse changes in tax laws, which may result in an increase in our tax liability.

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.  The shortfall in tax revenues for states and municipalities in recent years may lead to an increase in the frequency and size of such changes.  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 for payment of dividends.

Loss of our key personnel could harm our operations and adversely affect the value of our common stock.

We are dependent on the efforts of Steven Roth, our Chief Executive Officer.  Although we believe that we could find a replacement, the loss of his services could harm our operations and adversely affect the value of our common stock.

12

 

ALEXANDER’S CHARTER DOCUMENTS AND APPLICABLE LAW MAY HINDER ANY ATTEMPT TO ACQUIRE US.

Provisions in Alexander’s certificate of incorporation and by laws, as well as provisions of the Code and Delaware corporate law, may delay or prevent a change in control of the Company or a tender offer, even if such action might be beneficial to stockholders, and limit the stockholders’ opportunity to receive a potential premium for their shares of common stock over then prevailing market prices.

Primarily to facilitate maintenance of its qualification as a REIT, Alexander’s certificate of incorporation generally prohibits ownership, directly, indirectly or beneficially, by any single stockholder of more than 9.9% of the outstanding shares of preferred stock of any class or 4.9% of outstanding common stock of any class.  The Board of Directors may waive or modify these ownership limits with respect to one or more persons if it is satisfied that ownership in excess of these limits will not jeopardize Alexander’s status as a REIT for federal income tax purposes.  In addition, the Board of Directors has, subject to certain conditions and limitations, exempted Vornado and certain of its affiliates from these ownership limitations.  Stock owned in violation of these ownership limits will be subject to the loss of rights and other restrictions.  These ownership limits may have the effect of inhibiting or impeding a change in control.

Alexander’s Board of Directors is divided into three classes of directors.  Directors of each class are chosen for three-year staggered terms.  Staggered terms of directors may have the effect of delaying or preventing changes in control or management, even though changes in management or a change in control might be in the best interest of our stockholders.

In addition, Alexander’s charter documents authorize the Board of Directors to:

·      cause Alexander’s to issue additional authorized but unissued common stock or preferred stock;

·      classify or reclassify, in one or more series, any unissued preferred stock;

·      set the preferences, rights and other terms of any classified or reclassified stock that Alexander’s issues; and

·      increase, without stockholder approval, the number of shares of beneficial interest that Alexander’s may issue.

The Board of Directors could establish a series of preferred stock with terms that could delay, deter or prevent a change in control of Alexander’s or other transaction that might involve a premium price or otherwise be in the best interest of our stockholders, although the Board of Directors does not, at present, intend to establish a series of preferred stock of this kind.  Alexander’s charter documents contain other provisions that may delay, deter or prevent a change in control of the Company or other transaction that might involve a premium price or otherwise be in the best interest of our stockholders.

In addition, Vornado, Interstate and its three general partners (each of whom are both trustees of Vornado and Directors of Alexander’s) together beneficially own approximately 58.7% of our outstanding shares of common stock.  This degree of ownership is likely to reduce the possibility of a tender offer or an attempt to change control of the Company by a third party.

We may change our policies without obtaining the approval of our stockholders.

Our operating and financial policies, including our policies with respect to acquisitions of real estate or other assets, growth, operations, indebtedness, capitalization and dividends, are exclusively determined by our Board of Directors.  Accordingly, our stockholders do not control these policies.

13

 

OUR OWNERSHIP STRUCTURE AND RELATED-PARTY TRANSACTIONS MAY GIVE RISE TO CONFLICTS OF INTEREST.

Steven Roth, Vornado and Interstate may exercise substantial influence over us.  They and some of our other directors and officers have interests or positions in other entities that may compete with us.

At December 31, 2014, Interstate and its partners owned approximately 6.6% of the common shares of beneficial interest of Vornado and approximately 26.3% of our outstanding common stock.  Steven Roth, David Mandelbaum and Russell B. Wight, Jr. are the partners of Interstate.  Mr. Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Chairman of the Board of Trustees and Chief Executive Officer of Vornado and the Managing General Partner of Interstate.  Mr. Wight and Mr. Mandelbaum are both trustees of Vornado and members of our Board of Directors.  In addition, Vornado manages and leases the real estate assets of Interstate.

At December 31, 2014, Vornado owned 32.4% of our outstanding common stock, in addition to the 26.3% owned by Interstate and its partners.  In addition to the relationships described in the immediately preceding paragraph, Dr. Richard West is a trustee of Vornado and a member of our Board of Directors and Joseph Macnow is our Executive Vice President and Chief Financial Officer and the Executive Vice President – Finance and Chief Administrative Officer of Vornado.  Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornado.

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.

There may be conflicts of interest between Vornado, its affiliates and us.

Vornado manages, develops and leases our properties under agreements that have one-year terms expiring in March of each year, which are automatically renewable.  Because we share common senior management with Vornado and because four of the trustees of Vornado also constitute the majority of our directors, the terms of the foregoing agreements and any future agreements may not be comparable to those we could have negotiated with an unaffiliated third party.

For a description of Interstate’s ownership of Vornado and Alexander’s, see “Steven Roth, Vornado and Interstate may exercise substantial influence over us.  They and some of our other directors and officers have interests or positions in other entities that may compete with us.” above.

14

 

THE NUMBER OF SHARES OF ALEXANDER’S COMMON STOCK AND THE MARKET FOR THOSE SHARES GIVE RISE TO VARIOUS RISKS.

The price of our common shares has been volatile and may fluctuate.

The trading price of our common shares has been volatile and may continue to fluctuate widely as a result of a number of factors, many of which are outside of our control.  In addition, the stock market is subject to fluctuations in the share prices and trading volumes that affect the market prices of the shares of many companies.  These broad market fluctuations have in the past and may in the future adversely affect the market price of our common shares.  Among the factors that could affect the price of our common shares are:

·our financial condition and performance;

·the financial condition of our tenants, including the extent of tenant bankruptcies or defaults;

·actual or anticipated quarterly fluctuations in our operating results and financial condition;

·our dividend policy;

·the reputation of REITs and real estate investments generally and the attractiveness of REIT equity securities in comparison to other equity securities, including securities issued by other real estate companies, and fixed income securities;

·uncertainty and volatility in the equity and credit markets;

·fluctuations in interest rates;

·changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs;

·failure to meet analysts’ revenue or earnings estimates;

·speculation in the press or investment community;

·strategic actions by us or our competitors, such as acquisitions or restructurings;

·the extent of institutional investor interest in us;

·the extent of short-selling of our common shares and the shares of our competitors;

·fluctuations in the stock price and operating results of our competitors;

·general financial and economic market conditions and, in particular, developments related to market conditions for REITs and other real estate related companies;

·domestic and international economic factors unrelated to our performance; and

·all other risk factors addressed elsewhere in this annual report on form 10-K.

A significant decline in our stock price could result in substantial losses for stockholders.

Alexander’s has additional shares of its common stock available for future issuance, which could decrease the market price of the common stock currently outstanding.

The interest of our current stockholders could be diluted if we issue additional equity securities.  As of December 31, 2014, we had authorized but unissued 4,826,550 shares of common stock, par value of $1.00 per share and 3,000,000 shares of preferred stock, par value $1.00 per share; of which, 5,005 shares of common stock are reserved for issuance upon redemption of the deferred stock units previously granted to our Board of Directors.  In addition, 889,735 shares are available for future grant under the terms of our 2006 Omnibus Stock Plan.  These awards may be granted in the form of options, restricted stock, stock appreciation rights, deferred stock units, or other equity-based interests, and if granted, would reduce that number of shares available for future grants, provided however that an award that may be settled only in cash, would not reduce the number of shares available under the plan.  We cannot predict the impact that future issuances of common or preferred stock or any exercise of outstanding options or grants of additional equity-based interests would have on the market price of our common stock.

ITEM 1B.     UNRESOLVED STAFF COMMENTS

There are no unresolved comments from the staff of the Securities and Exchange Commission as of the date of this Annual Report on Form 10-K. 

15

 

ITEM 2.     properties

The following table shows the location, ownership, approximate size (excluding parking garages) and occupancy of each of our properties as of December 31, 2014.

						Average			Lease
						Annualized			Expiration/
			Land	Building	Occupancy	Rent Per			Option
Property			Acreage	Square Feet	Rate	Square Foot(1)		Tenants	Expiration(s)
Operating Properties:
731 Lexington Avenue
	New York, New York
		Office		697,000				Bloomberg L.P.	2029/2039
				188,000				Bloomberg L.P.	2020
				885,000	100%	$	98.38
		Retail		83,000				The Home Depot	2025/2035
				34,000				The Container Store	2021
				27,000				Hennes & Mauritz	2019
				30,000				Various	Various
				174,000	100%		174.95
			1.9	1,059,000
Rego Park I
	Queens, New York			195,000				Sears	2021
				50,000				Burlington Coat Factory	2022/2027
				46,000				Bed Bath & Beyond	2021
				36,000				Marshalls	2021
				16,000				Old Navy	2021
			4.8	343,000	100%		37.97
Rego Park II
	Queens, New York
				145,000				Costco	2034/2059
				135,000				Century 21	2030/2050
				133,000				Kohl’s	2030/2050
				47,000				Toys "R"Us/Babies "R" Us	2021/2036
				149,000				Various	Various
			6.6	609,000	99%		41.70
Paramus
	Paramus, New Jersey		30.3	-	100%		-	IKEA (ground lessee)	2041
Flushing
	Queens, New York (ground leased
	through January 2037)		1	167,000	100%		16.53	New World Mall LLC	2027/2037
Property under Development:
Rego Park II Apartment Tower, 312 units
	aggregating 255,000 square feet
	under development
	Queens, New York		-	-	-		-	-	-
Property to be Developed:
Rego Park III, adjacent to Rego Park II
	Queens, New York		3.2	-	-		-	-	-
				2,178,000
(1)	Represents the contractual weighted average rent per square foot as of December 31, 2014. For a discussion of our leasing activity, see
	Item 7 - Overview - Square Footage, Occupancy and Leasing Activity.

16

 

ITEM 2.        PROPERTIES – continued 

Operating Properties

731 Lexington Avenue

731 Lexington Avenue, a 1,307,000 square foot multi-use building, comprises the entire square block bounded by Lexington Avenue, East 59^th Street, Third Avenue and East 58^th Street in Manhattan, New York, and is situated in the heart of one of Manhattan’s busiest business and shopping districts, with convenient access to several subway and bus lines. The property is located across the street from Bloomingdale’s flagship store and only a few blocks away from Fifth Avenue and 57^th Street.  The building contains 885,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold.  Bloomberg L.P. (“Bloomberg”) occupies all of the office space.  The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants.

On February 28, 2014, we completed a $300,000,000 refinancing of the office portion of 731 Lexington Avenue.  The interest-only loan is at LIBOR plus 0.95% (1.11% at December 31, 2014) and matures in March 2017, with four one-year extension options.  The proceeds of the new loan and existing cash were used to repay the existing loan and closing costs.  In connection therewith, we purchased an interest rate cap with a notional amount of $300,000,000 that caps LIBOR at a rate of 6.0%. 

The retail space is encumbered by a first mortgage loan with a balance of $320,000,000 as of December 31, 2014, which bears interest at 4.93% and matures in July 2015. 

In October 2014, Bloomberg exercised its option to extend leases that were scheduled to expire in December 2015 covering 188,608 square feet of office space at our 731 Lexington Avenue property for a term of 5 years.  We are currently in negotiations with Bloomberg to determine the rental rate for the extension period.

Rego Park I

Rego Park I, a 343,000 square foot shopping center, located on Queens Boulevard and 63^rd Road in Queens, New York, is anchored by a 195,000 square foot Sears department store, a 50,000 square foot Burlington Coat Factory, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls.  The center contains a parking deck (1,258 spaces) that provides for paid parking.

The center is encumbered by a 100% cash collateralized loan with a balance of $78,246,000 as of December 31, 2014.  The loan bears interest at 0.40%, is prepayable at any time without penalty and matures in March 2015. 

On June 24, 2014, Sears Roebuck and Co. (“Sears”) filed a lawsuit in the Supreme Court of the State of New York against Vornado and us (and certain of our subsidiaries) with regard to space that Sears leases at our Rego Park I property.  Sears alleges that the defendants are liable for harm Sears has suffered as a result of (a) water intrusions into the premises Sears leases, (b) two fires in February 2014 that caused damages to those premises, and (c) alleged violations of the Americans with Disabilities Act in the premises’ parking garage.  Sears asserts various causes of actions for damages and seeks to compel compliance with landlord’s obligations to repair the premises and to provide security, and to compel us to abate a nuisance that Sears claims was a cause of the water intrusions into its premises.  In addition to injunctive relief, Sears seeks, among other things, damages of not less than $4 million and future damages it estimates will not be less than $25 million.  We intend to defend the claims vigorously; the amount or range of reasonable possible losses, if any, cannot be estimated.

Rego Park II

Rego Park II, a 609,000 square foot shopping center, adjacent to the Rego Park I shopping center in Queens, New York, is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.  In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado.  The center contains a parking deck (1,315 spaces) that provides for paid parking.

This center is encumbered by a first mortgage loan with a balance of $266,534,000 as of December 31, 2014.  The loan bears interest at LIBOR plus 1.85% (2.02% at December 31, 2014) and matures in November 2018.

17

 

ITEM 2.        PROPERTIES – continued 

Paramus

We own 30.3 acres of land located at the intersection of Routes 4 and 17 in Paramus, New Jersey.  The land is located directly across from the Garden State Plaza regional shopping mall and is within two miles of three other regional shopping malls and ten miles of New York City.  The land has been ground leased to IKEA Property, Inc. since 2001.  The lease expires in 2041, with a purchase option in 2021 for $75,000,000.  The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 2.90%, which matures in October 2018.  The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan.  If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a gain on the sale of land of approximately $60,000,000.  If the purchase option is not exercised, the triple-net rent for the last 20 years must include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term.

Flushing

Flushing is located on Roosevelt Avenue and Main Street in the downtown, commercial section of Flushing, Queens, New York.  Roosevelt Avenue and Main Street are active shopping districts and there are many national retailers located in the area.  A subway entrance is located directly in front of the property with bus service across the street.  The property comprises a four-floor building containing 167,000 square feet and a parking garage, which is sub-leased to New World Mall LLC for the remainder of our ground lease term, which expires in 2027 and has one 10-year extension option.

Property under Development

Rego Park II Apartment Tower

We are in the process of constructing an apartment tower above our Rego II shopping center, containing 312 units aggregating 255,000 square feet, which is expected to be completed in 2015.  The estimated cost of this project is approximately $125,000,000, of which $73,327,000 has been incurred as of December 31, 2014.  There can be no assurance that the project will be completed, or completed on schedule or within budget.

Property to be Developed

Rego Park III

We own 3.2 acres of land adjacent to the Rego Park II shopping center in Queens, New York, which comprises a one‑quarter square block and is located at the intersection of Junction Boulevard and the Horace Harding Service Road.  The land is currently being used for paid public parking.  We have not established plans or budgets for the development of this site and there can be no assurance that we will do so.

ITEM 3.        LEGAL PROCEEDINGS

We are from time to time involved in legal actions arising in the ordinary course of business.  In our opinion, after consultation with our legal counsel, the outcome of such matters will not have a material effect on our financial condition, results of operations or cash flows. 

For a discussion of the litigation concerning our Rego Park I property, see “Item 2.  Properties – Operating Properties – Rego Park I.”

ITEM 4.        MINE SAFETY DISCLOSURES

Not applicable.

18

 

PART II

ITEM 5.      MARKET   FOR   REGISTRANT’S   COMMON   EQUITY,   RELATED   STOCKHOLDER   MATTERS  AND   ISSUER 

   PURCHASES OF EQUITY SECURITIES               

Our common stock is listed on the New York Stock Exchange under the symbol “ALX.”  Set forth below are the high and low closing prices for the shares of our common stock for each full quarterly period within the two most recent years and any dividends paid per share during such periods.

	Year Ended December 31,
	2014						2013
Quarter	High		Low		Dividends		High		Low		Dividends
First	$	379.14	$	323.18	$	3.25	$	340.30	$	322.00	$	2.75
Second		374.25		339.02		3.25		328.53		281.51		2.75
Third		408.99		363.00		3.25		310.75		268.10		2.75
Fourth		452.10		378.81		3.25		344.92		279.60		2.75

On January 21, 2015, we increased our regular quarterly dividend to $3.50 per share (a new indicated annual rate of $14.00 per share).  As of January 31, 2015, there were approximately 283 holders of record of our common stock. 

Recent Sales of Unregistered Securities

During 2014,we did not sell any unregistered securities.

Information relating to compensation plans under which our equity securities are authorized for issuance is set forth under Part III, Item 12 of this Annual Report on Form 10-K and such information is incorporated by reference herein.

Recent Purchases of Equity Securities

During 2014, we did not repurchase any of our equity securities.

19

 

Performance Graph

The following graph is a comparison of the five-year cumulative return of our common stock, the Standard & Poor’s 500 Index (the “S&P 500 Index”) and the National Association of Real Estate Investment Trusts’ (“NAREIT”) All Equity Index, a peer group index.  The graph assumes that $100 was invested on December 31, 2009 in our common stock, the S&P 500 Index and the NAREIT All Equity Index and that all dividends were reinvested without the payment of any commissions.  There can be no assurance that the performance of our stock will continue in line with the same or similar trends depicted in the graph below.

	2009		2010		2011		2012		2013		2014
Alexander’s	$	100	$	139	$	128	$	162	$	168	$	230
S&P 500 Index		100		115		117		136		180		205
The NAREIT All Equity Index		100		128		139		166		171		218

20

 

ITEM 6.     selected financial data

The following table sets forth selected financial and operating data.  This data should be read in conjunction with the consolidated financial statements and notes thereto and “Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K.  This data may not be comparable to, or indicative of, future operating results.

		Year Ended December 31,
(Amounts in thousands, except per share amounts)		2014		2013		2012		2011		2010
Total revenues		$	200,814	$	196,459	$	191,312	$	185,246	$	174,206
Income from continuing operations(1)		$	67,396	$	54,663	$	50,041	$	54,831	$	49,159
Income from discontinued operations(2)			529		2,252		624,952		26,215		18,286
Net income			67,925		56,915		674,993		81,046		67,445
Net income attributable to the noncontrolling interest			-		-		(606)		(1,623)		(1,016)
Net income attributable to Alexander’s		$	67,925	$	56,915	$	674,387	$	79,423	$	66,429
Income per common share:
	Income from continuing operations – basic	$	13.19	$	10.70	$	9.80	$	10.74	$	9.63
	Income from continuing operations – diluted		13.19		10.70		9.80		10.74		9.63
	Net income per common share – basic		13.29		11.14		132.04		15.55		13.01
	Net income per common share – diluted		13.29		11.14		132.04		15.55		13.01
Dividends per common share(3)		$	13.00	$	11.00	$	137.00	$	12.00	$	7.50
Balance sheet data:
	Total assets	$	1,423,216	$	1,457,724	$	1,481,810	$	1,771,307	$	1,679,300
	Real estate, at cost		993,927		919,576		911,792		906,907		897,312
	Accumulated depreciation and amortization		210,025		185,375		160,826		136,460		112,765
	Mortgages payable		1,032,780		1,049,959		1,065,916		1,080,932		1,095,197
	Total equity		348,399		333,581		332,153		363,245		343,776
(1)	Includes the reversal of a portion of the liability for income taxes of $2,561 and $5,113 in 2011 and 2010, respectively.
(2)	2012 includes a $599,628 net gain on sale of real estate.
(3)	2012 includes a special long-term capital gain dividend of $122.00 per share, to distribute the tax gain resulting from the sale of Kings Plaza. We began paying a regular quarterly dividend in the second quarter of 2010.

21

 

ITEM 7.     management’s discussion and analysis of financial condition and results of operations

Overview

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 six properties in the greater New York City metropolitan area.

We compete with a large number of property owners and developers.  Our success depends upon, among other factors, trends of the world, national and local economies, the financial condition and operating results of current and prospective tenants and customers, the availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population trends, zoning laws, and our ability to lease, sublease or sell our properties, at profitable levels.  Our success is also subject to our ability to refinance existing debt on acceptable terms as it comes due.

Year Ended December 31, 2014 Financial Results Summary

Net income attributable to common stockholders for the year ended December 31, 2014 was $67,925,000, or $13.29 per diluted share, compared to $56,915,000, or $11.14 per diluted share for the year ended December 31, 2013.  Net income attributable to common stockholders includes income from discontinued operations (Kings Plaza) of $529,000, or $0.10 per diluted share for the year ended December 31, 2014, compared to $2,252,000, or $0.44 per diluted share for the year ended December 31, 2013.

Funds from operations attributable to common stockholders (“FFO”) for the year ended December 31, 2014 was $96,980,000, or $18.98 per diluted share, compared to $85,717,000, or $16.78 per diluted share for the prior year.  FFO includes FFO from discontinued operations (Kings Plaza) of $529,000, or $0.10 per diluted share for the year ended December 31, 2014, compared to $2,252,000, or $0.44 per diluted share for the prior year.

Quarter Ended December 31, 2014 Financial Results Summary

Net income attributable to common stockholders for the quarter ended December 31, 2014 was $18,161,000, or $3.55 per diluted share, compared to $15,790,000, or $3.09 per diluted share for the quarter ended December 31, 2013.  Net income attributable to common stockholders includes income from discontinued operations (Kings Plaza) of $529,000, or $0.10 per diluted share for the quarter ended December 31, 2014, compared to $2,252,000, or $0.44 per diluted share for the quarter ended December 31, 2013.

FFO for the quarter ended December 31, 2014 was $25,508,000, or $4.99 per diluted share, compared to $23,015,000, or $4.50 per diluted share for the prior year’s quarter.  FFO includes FFO from discontinued operations (Kings Plaza) of $529,000, or $0.10 per diluted share for the quarter ended December 31, 2014, compared to $2,252,000, or $0.44 per diluted share for the prior year’s quarter.

22

 

Overview – continued

Square Footage, Occupancy and Leasing Activity

As of December 31, 2014 and 2013, our portfolio was comprised of six properties aggregating 2,178,000 square feet that had occupancy rates of 99.7% and 99.4%, respectively.  In the year ended December 31, 2014 we leased 7,977 square feet with an average initial rent of $83.62 per square foot and a weighted average lease term of 14.6 years.

Significant Tenants

Bloomberg L.P. (“Bloomberg”) accounted for $91,109,000, $88,164,000 and $86,468,000, or 45% of our total revenues in each of the years ended December 31, 2014, 2013 and 2012, respectively.  No other tenant accounted for more than 10% of our total revenues in any of the last three years.  If we were to lose Bloomberg as a tenant, or if Bloomberg were to fail or become unable to perform its obligations under its lease, it would adversely affect our results of operations and financial condition.  We receive and evaluate certain confidential financial information and metrics from Bloomberg on a semi-annual basis.  In addition, we access and evaluate financial information regarding Bloomberg from private sources, as well as publicly available data.

In October 2014, Bloomberg exercised its option to extend leases that were scheduled to expire in December 2015 covering 188,608 square feet of office space at our 731 Lexington Avenue property for a term of 5 years.  We are currently in negotiations with Bloomberg to determine the rental rate for the extension period.

Financing 

On February 28, 2014, we completed a $300,000,000 refinancing of the office portion of 731 Lexington Avenue.  The interest-only loan is at LIBOR plus 0.95% (1.11% at December 31, 2014) and matures in March 2017, with four one-year extension options.  The proceeds of the new loan and existing cash were used to repay the existing loan and closing costs.  In connection herewith, we purchased an interest rate cap with a notional amount of $300,000,000 that caps LIBOR at a rate of 6.0%.

Critical Accounting Policies and Estimates

 Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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 financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.  Set forth below is a summary of our accounting policies that we believe are critical to the preparation of our consolidated financial statements.  This summary should be read in conjunction with a more complete discussion of our accounting policies included in Note 2 to the consolidated financial statements in this Annual Report on Form 10-K.

Real Estate

Real estate is carried at cost, net of accumulated depreciation and amortization.  As of December 31, 2014 and 2013, the carrying amount of our real estate, net of accumulated depreciation and amortization, was $783,902,000 and $734,201,000, respectively.  Maintenance and repairs are expensed as incurred.  Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. If we do not allocate these costs appropriately or incorrectly estimate the useful lives of our real estate, depreciation expense may be misstated.  As real estate is undergoing development activities, all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense, are capitalized to the cost of the real property to the extent that we believe such costs are recoverable through the value of the property.  The capitalization period begins when development activities are underway and ends when the project is substantially complete.  General and administrative costs are expensed as incurred.

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Critical Accounting Policies and Estimates – continued

Our properties and related intangible assets, including properties to be developed in the future and currently under development, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared.  For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset.  An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value.  If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements.  Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results.  Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

Allowance for Doubtful Accounts

We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,544,000 and $1,993,000 as of December 31, 2014 and 2013, respectively) for estimated losses resulting from the inability of tenants to make required payments under the lease agreements.  We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.  These estimates may differ from actual results, which could be material to our consolidated financial statements. 

Revenue Recognition

We have the following revenue sources and revenue recognition policies:

·     Base Rent – revenue arising from tenant leases.  These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases.  We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use.  In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.

·     Percentage Rent – revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds.  These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).

·     Expense Reimbursements – revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties.  This revenue is accrued in the same periods as the expenses are incurred.

·     Parking income – revenue arising from the rental of parking space at our properties.  This income is recognized as cash is received.

Before we recognize revenue, we assess, among other things, its collectibility.  If our assessment of the collectibility of revenue changes, the impact on our consolidated financial statements could be material.

Income Taxes

We operate in a manner intended to enable us to continue to qualify as a Real Estate Investment Trust (“REIT”) under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”).  In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year.  We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required.  If we fail to distribute the required amount of income to our stockholders, or fail to meet other REIT requirements, we may fail to qualify as a REIT, which may result in substantial adverse tax consequences.

24

 

Results of Operations – Year Ended December 31, 2014 compared to December 31, 2013

Property Rentals

Property rentals were $136,628,000 in the year ended December 31, 2014, compared to $135,908,000 in the prior year, an increase of $720,000.  This increase was primarily due to higher parking revenues.

Expense Reimbursements

Tenant expense reimbursements were $64,186,000 in the year ended December 31, 2014, compared to $60,551,000 in the prior year, an increase of $3,635,000. This increase was primarily due to higher real estate taxes.

Operating Expenses

Operating expenses were $69,897,000 in the year ended December 31, 2014, compared to $64,930,000 in the prior year, an increase of $4,967,000.  This increase was primarily comprised of higher real estate taxes of $3,536,000 and higher non-reimbursable operating expenses of $1,860,000.

Depreciation and Amortization

Depreciation and amortization was $29,196,000 in the year ended December 31, 2014, compared to $28,987,000 in the prior year, an increase of $209,000. 

General and Administrative Expenses

General and administrative expenses were $5,032,000 in the year ended December 31, 2014, compared to $5,026,000 in the prior year, an increase of $6,000.

Interest and Other Income, net

Interest and other income, net was $2,434,000 in the year ended December 31, 2014, compared to $1,527,000 in the prior year, an increase of $907,000.  This increase was primarily due to lease termination income of $800,000.

Interest and Debt Expense

Interest and debt expense was $32,068,000 in the year ended December 31, 2014, compared to $44,540,000 in the prior year, a decrease of $12,472,000.  This decrease was primarily due to savings resulting from the refinancing of the office portion of 731 Lexington Avenue.

Income Tax Benefit

Income tax benefit was $341,000 in the year ended December 31, 2014, compared to $160,000 in the prior year, an increase of $181,000.  This increase resulted from a larger reversal of tax liabilities in the current year as compared to the prior year.  These liabilities were reversed as a result of the expiration of the applicable statute of limitations.

Income from Discontinued Operations

Income from discontinued operations was $529,000 in the year ended December 31, 2014, compared to $2,252,000 in the year ended December 31, 2013, a decrease of $1,723,000.  Income for the current and prior year primarily represent the reversal of previously accrued liabilities related to Kings Plaza which was sold in November 2012.

25

 

Results of Operations – Year Ended December 31, 2013 compared to December 31, 2012

Property Rentals

Property rentals were $135,908,000 in the year ended December 31, 2013, compared to $134,847,000 in the year ended December 31, 2012, an increase of $1,061,000.  This increase was primarily due to higher occupancy.

Expense Reimbursements

Tenant expense reimbursements were $60,551,000 in the year ended December 31, 2013, compared to $56,465,000 in the year ended December 31, 2012, an increase of $4,086,000. This increase was primarily due to higher real estate taxes and reimbursable operating expenses.

Operating Expenses

Operating expenses were $64,930,000 in the year ended December 31, 2013, compared to $61,755,000 in the year ended December 31, 2012, an increase of $3,175,000.  This increase was primarily comprised of higher (i) real estate taxes of $3,991,000 and (ii) reimbursable operating expenses of $512,000, partially offset by (iii) lower bad debt expense of $1,362,000.

Depreciation and Amortization

Depreciation and amortization was $28,987,000 in the year ended December 31, 2013, compared to $28,815,000 in the year ended December 31, 2012, an increase of $172,000. 

General and Administrative Expenses

General and administrative expenses were $5,026,000 in the year ended December 31, 2013, compared to $5,162,000 in the year ended December 31, 2012, a decrease of $136,000. 

Interest and Other Income, net

Interest and other income, net was $1,527,000 in the year ended December 31, 2013, compared to $177,000 in the year ended December 31, 2012, an increase of $1,350,000.  This increase was primarily due to dividend income in the current year on the Macerich common shares that we received in connection with the sale of Kings Plaza in November 2012. 

Interest and Debt Expense

Interest and debt expense was $44,540,000 in the year ended December 31, 2013, compared to $45,652,000 in the year ended December 31, 2012, a decrease of $1,112,000.  This decrease was primarily due to lower average debt balances.

Income Tax Benefit (Expense)

In the year ended December 31, 2013, we had an income tax benefit of $160,000, compared to an income tax expense of $64,000 in the year ended December 31, 2012, a decrease in expense of $224,000.  This decrease resulted from a reduction of our estimated income tax liability due to the expiration of the applicable statute of limitations. 

Income from Discontinued Operations

Income from discontinued operations was $2,252,000 in the year ended December 31, 2013, compared to $624,952,000 in the year ended December 31, 2012, a decrease of $622,700,000.  Income for the year ended December 31, 2013 represents the reversal of previously accrued liabilities related to Kings Plaza.  Income for the year ended December 31, 2012 is comprised of a $599,628,000 net gain on sale of Kings Plaza and $25,324,000 of income from the operations of the property prior to its sale in November 2012.

Net Income Attributable to the Noncontrolling Interest

Net income attributable to the noncontrolling interest was $606,000 in the year ended December 31, 2012, and represents our venture partner’s 75% pro-rata share of the net income from the Kings Plaza energy plant joint venture, which was sold together with Kings Plaza in November 2012.  

26

 

Related Party Transactions

Vornado

Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (“Interstate”), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado.  At December 31, 2014, Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.3% of our outstanding common stock, in addition to the 2.1% they indirectly own through Vornado.  Joseph Macnow, our Executive Vice President and Chief Financial Officer, is the Executive Vice President – Finance and Chief Administrative Officer of Vornado.  Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornando.

At December 31, 2014, Vornado owned 32.4% of our outstanding common stock.  We are managed by, and our properties are leased and developed by, Vornado, pursuant to various agreements, which expire in March of each year and are automatically renewable.  These agreements are described in Note 3 – Related Party Transactions, to our consolidated financial statements in this Annual Report on Form 10-K.

27

 

Liquidity and Capital Resources

Property rental income is our primary source of cash flow and is dependent on a number of factors including the occupancy level and rental rates of our properties, as well as our tenants’ ability to pay their rents.  Our properties provide us with a relatively consistent stream of cash flow that enables us to pay our operating expenses, interest expense, recurring capital expenditures and cash dividends to stockholders.  Other sources of liquidity to fund cash requirements include our existing cash, proceeds from financings, including mortgage or construction loans secured by our properties and proceeds from asset sales.  We anticipate that cash flows 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 amortization, recurring capital expenditures and development expenditures related to the Rego Park II apartment tower.

Dividends

On January 21, 2015, we increased our regular quarterly dividend to $3.50 per share (a new indicated annual rate of $14.00 per share).  The new dividend, if continued for all of 2015, would require us to pay out approximately $71,600,000.

Development Project

We are in the process of constructing an apartment tower above our Rego II shopping center, containing 312 units aggregating 255,000 square feet, which is expected to be completed in 2015.  The estimated cost of this project is approximately $125,000,000, of which $73,327,000 has been incurred as of December 31, 2014.  There can be no assurance that the project will be completed, or completed on schedule or within budget.

Financing Activities and Contractual Obligations

Below is a summary of our outstanding debt and maturities as of December 31, 2014.  We intend to refinance our maturing debt as it comes due.

				Interest
	(Amounts in thousands)	Balance		Rate	Maturity(1)
	Rego Park I shopping center(2)	$	78,246	0.40%	Mar. 2015
	731 Lexington Avenue, retail space(3)		320,000	4.93%	Jul. 2015
	Paramus		68,000	2.90%	Oct. 2018
	Rego Park II shopping center(4)		266,534	2.02%	Nov. 2018
	731 Lexington Avenue, office space(5)		300,000	1.11%	Mar. 2021
		$	1,032,780
_________________________________________
(1) Represents the extended maturity where we have the unilateral right to extend.
(2) This loan is 100% cash collateralized.
(3) In the event of a substantial casualty, as defined, up to $75,000 of this loan may become recourse to us.
(4) This loan bears interest at LIBOR plus 1.85%.
(5) This loan bears interest at LIBOR plus 0.95%.

Below is a summary of our contractual obligations and commitments as of December 31, 2014.

					Less than		One to		Three to		More than
(Amounts in thousands)			Total		One Year		Three Years		Five Years		Five Years
Contractual obligations (principal and interest(1)):
	Long-term debt obligations		$	1,089,712	$	420,454	$	28,556	$	336,767	$	303,935
	Operating lease obligations			9,458		700		1,492		1,600		5,666
	Purchase obligations (primarily construction
		commitments)		36,957		36,957		-		-		-
			$	1,136,127	$	458,111	$	30,048	$	338,367	$	309,601
Commitments:
	Standby letters of credit		$	3,308	$	3,308	$	-	$	-	$	-
(1)		Interest on variable rate debt is computed using rates in effect at December 31, 2014.

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Liquidity and Capital Resources – continued

Commitments and Contingencies

Insurance

We maintain general liability insurance with limits of $300,000,000 per occurrence 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.

Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020.  Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate.  Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies with no exposure to FNSIC.  For NBCR acts, FNSIC is responsible for a $275,000 deductible and 15% of the balance (16% effective January 1, 2016) of a covered loss, and the Federal government is responsible for the remaining 85% (84% effective January 1, 2016) of a covered loss.  We are ultimately responsible for any loss incurred by FNSIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism.  However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future.  We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.

Our mortgage loans are non-recourse to us, except for $75,000,000 of the $320,000,000 mortgage on the retail portion of our 731 Lexington Avenue property, in the event of a substantial casualty, as defined.  Our mortgage loans contain customary covenants requiring us to maintain insurance.  Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future.  If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties.

Litigation

Rego Park I

On June 24, 2014, Sears Roebuck and Co. (“Sears”) filed a lawsuit in the Supreme Court of the State of New York against Vornado and us (and certain of our subsidiaries) with regard to space that Sears leases at our Rego Park I property.  Sears alleges that the defendants are liable for harm Sears has suffered as a result of (a) water intrusions into the premises Sears leases, (b) two fires in February 2014 that caused damages to those premises, and (c) alleged violations of the Americans with Disabilities Act in the premises’ parking garage.  Sears asserts various causes of actions for damages and seeks to compel compliance with landlord’s obligations to repair the premises and to provide security, and to compel us to abate a nuisance that Sears claims was a cause of the water intrusions into its premises.  In addition to injunctive relief, Sears seeks, among other things, damages of not less than $4 million and future damages it estimates will not be less than $25 million.  We intend to defend the claims vigorously; the amount or range of reasonable possible losses, if any, cannot be estimated.

Paramus

In 2001, we leased 30.3 acres of land located in Paramus, New Jersey to IKEA Property, Inc. The lease has a purchase option in 2021 for $75,000,000. The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 2.90%, which matures in October 2018. The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan. If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a gain on sale of land of approximately $60,000,000. If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term. 

Other

There are various legal actions against us in the ordinary course of business.  In our opinion, the outcome of such matters in the aggregate will not have a material effect on our financial condition, results of operations or cash flows.

29

 

Liquidity and Capital Resources – continued

Cash Flows

Cash and cash equivalents were $227,815,000 at December 31, 2014, compared to $347,718,000 at December 31, 2013, a decrease of $119,903,000.  This decrease resulted from $87,870,000 of net cash used in financing activities and $81,520,000 of net cash used in investing activities, partially offset by $49,487,000 of net cash provided by operating activities. Our consolidated outstanding debt was $1,032,780,000 at December 31, 2014, a $17,179,000 decrease from the balance at December 31, 2013.

Year Ended December 31, 2014

Net cash provided by operating activities of $49,487,000 was comprised of net income of $67,925,000 and $29,355,000 of adjustments for non-cash items, partially offset by $47,793,000 for the net change in operating assets and liabilities.  The adjustments for non-cash items were primarily comprised of depreciation and amortization of $31,919,000, partially offset by straight-lining of rental income of $2,538,000.  The change in operating assets and liabilities was primarily due to the payment of accrued leasing commissions to Vornado of $40,353,000.

Net cash used in investing activities of $81,520,000 was primarily comprised of $61,964,000 of construction in progress and real estate additions, primarily related to the development of our Rego Park II Apartment Tower, and purchases of short-term investments of $24,998,000.

Net cash used in financing activities of $87,870,000 was primarily comprised of (i) debt repayments of $317,179,000 (primarily repayment of the loan on the office portion of 731 Lexington Avenue) and (ii) dividends paid on common stock of $66,436,000, partially offset by (iii) $300,000,000 of proceeds from the refinancing of the office portion of 731 Lexington Avenue.

Year Ended December 31, 2013

Cash and cash equivalents were $347,718,000 at December 31, 2013, compared to $353,396,000 at December 31, 2012, a decrease of $5,678,000.  This decrease resulted from $72,241,000 of net cash used in financing activities and $7,320,000 of net cash used in investing activities, partially offset by $73,883,000 of net cash provided by operating activities.

Net cash provided by operating activities of $73,883,000 was comprised of net income of $56,915,000 and $27,876,000 of adjustments for non-cash items, partially offset by $10,908,000 for the net change in operating assets and liabilities.  The adjustments for non-cash items were primarily comprised of depreciation and amortization of $31,395,000, partially offset by straight-lining of rental income of $3,707,000.

Net cash used in investing activities of $7,320,000 was primarily comprised of $7,671,000 of construction in progress and real estate additions.

Net cash used in financing activities of $72,241,000 was primarily comprised of dividends paid on common stock of $56,197,000 and debt repayments of $15,957,000.

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Liquidity and Capital Resources – continued

Year Ended December 31, 2012

Cash and cash equivalents were $353,396,000 at December 31, 2012, compared to $506,619,000 at December 31, 2011, a decrease of $153,223,000.  This decrease resulted from $973,007,000 of net cash used in financing activities, partially offset by $710,077,000 of net cash provided by investing activities and $109,707,000 of net cash provided by operating activities.

Net cash provided by operating activities was $109,707,000, of which $34,896,000 was related to discontinued operations.  Net cash provided by operating activities was comprised of net income of $674,993,000, and $2,154,000 for the net change in operating assets and liabilities, partially offset by $567,440,000 of adjustments for non-cash items.  The adjustments for non-cash items were primarily comprised of a net gain on the sale of real estate of $599,628,000 and straight-lining of rental income of $4,475,000, partially offset by depreciation and amortization of $36,363,000.

Net cash provided by investing activities of $710,077,000 was comprised of (i) net proceeds from the sale of real estate of $714,054,000 (excluding $30,000,000 of stock consideration) and (ii) proceeds from maturing short-term investments of $5,000,000, partially offset by (iii) $7,351,000 of construction in progress and real estate additions, primarily related to our Rego Park II property and (iv) an increase in restricted cash of $1,626,000.

Net cash used in financing activities of $973,007,000 was primarily comprised of (i) dividends paid on common stock of $699,791,000, which included a special dividend of $623,178,000 to distribute the tax gain on the sale of Kings Plaza, (ii) repayment of the Kings Plaza debt of $250,000,000 upon the sale of the property, (iii) debt repayments of $15,016,000 and (iv) a payment of $7,800,000 to acquire the noncontrolling interest in the Kings Plaza energy plant joint venture, which was sold with the mall.

31

 

Funds from Operations (“FFO”)

FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”).  NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets, extraordinary items and other specified non-cash items, including the pro rata share of such adjustments of unconsolidated subsidiaries.  FFO and FFO per diluted share are used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions.  FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure.  FFO may not be comparable to similarly titled measures employed by other companies.  A reconciliation of our net income to FFO is provided below.

FFO attributable to common stockholders for the year ended December 31, 2014 was $96,980,000, or $18.98 per diluted share, compared to $85,717,000, or $16.78 per diluted share for the prior year.  FFO attributable to common stockholders includes FFO from discontinued operations (Kings Plaza) of $529,000, or $0.10 per diluted share for the year ended December 31, 2014, compared to $2,252,000, or $0.44 per diluted share for the prior year.

FFO attributable to common stockholders for the quarter ended December 31, 2014 was $25,508,000, or $4.99 per diluted share, compared to $23,015,000, or $4.50 per diluted share for the prior year’s quarter.  FFO attributable to common stockholders includes FFO from discontinued operations (Kings Plaza) of $529,000, or $0.10 per diluted share for the quarter ended December 31, 2014, compared to $2,252,000, or $0.44 per diluted share for the prior year’s quarter.

The following table reconciles our net income to FFO:

	For the Year Ended				For the Quarter Ended
(Amounts in thousands, except share and per share amounts)	December 31,				December 31,
	2014		2013		2014		2013
Net income attributable to Alexander’s	$	67,925	$	56,915	$	18,161	$	15,790
Depreciation and amortization of real property		29,055		28,802		7,347		7,225
FFO attributable to common stockholders	$	96,980	$	85,717	$	25,508	$	23,015
FFO attributable to common stockholders per diluted share	$	18.98	$	16.78	$	4.99	$	4.50
Weighted average shares used in computing diluted FFO per share		5,110,628		5,109,055		5,111,201		5,109,717

32

 

ITEM 7A.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have exposure to fluctuations in interest rates, which are sensitive to many factors that are beyond our control.  Our exposure to a change in interest rates is summarized in the table below.

		2014					2013
				Weighted	Effect of 1%				Weighted
		December 31,		Average	Change in		December 31,		Average
(Amounts in thousands, except per share amounts)		Balance		Interest Rate	Base Rates		Balance		Interest Rate
Variable (including $0 and $42,924,
	respectively, due to Vornado)	$	566,534	1.54%	$	5,665	$	312,420	2.00%
Fixed Rate			466,246	3.87%		-		780,463	4.46%
		$	1,032,780		$	5,665	$	1,092,883
Total effect on diluted earnings per share					$	1.11

As of December 31, 2014, we have an interest rate cap with a notional amount of $300,000,000 that caps LIBOR at a rate of 6.0%.

Fair Value of Debt

The fair value of our consolidated debt is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist.  As of December 31, 2014 and 2013, the estimated fair value of our consolidated debt was $1,025,000,000 and $1,115,000,000, respectively.  Our fair value estimates, which are made at the end of the reporting period, may be different from the amounts that may ultimately be realized upon the disposition of our financial instruments.

33

 

ITEM 8.        FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

		Page
	Index to Consolidated Financial Statements	Number
Report of Independent Registered Public Accounting Firm		35
Consolidated Balance Sheets at December 31, 2014 and 2013		36
Consolidated Statements of Income for the
	Years Ended December 31, 2014, 2013 and 2012	37
Consolidated Statements of Comprehensive Income for the
	Years Ended December 31, 2014, 2013 and 2012	38
Consolidated Statements of Changes in Equity for the
	Years Ended December 31, 2014, 2013 and 2012	39
Consolidated Statements of Cash Flows for the
	Years Ended December 31, 2014, 2013 and 2012	40
Notes to Consolidated Financial Statements		41

34

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Alexander’s, Inc.

Paramus, New Jersey

We have audited the accompanying consolidated balance sheets of Alexander’s, Inc. and subsidiaries (the “Company”) as of December 31, 2014 and 2013, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2014.  Our audits also included the financial statement schedules listed in the Index at Item 15.  These financial statements and financial statement schedules are the responsibility of the Company’s management.  Our responsibility is to express an opinion on the financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Alexander’s, Inc. and subsidiaries at December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.  Also, in our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2014, based on the criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 17, 2015 expressed an unqualified opinion on the Company’s internal control over financial reporting.

/s/ DELOITTE & TOUCHE LLP

Parsippany, New Jersey

February 17, 2015

35

 

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
				December 31,
ASSETS				2014		2013
	Real estate, at cost:
		Land		$	44,971	$	44,971
		Buildings and leasehold improvements			873,667		869,681
		Development and construction in progress			75,289		4,924
			Total		993,927		919,576
	Accumulated depreciation and amortization				(210,025)		(185,375)
	Real estate, net				783,902		734,201
	Cash and cash equivalents				227,815		347,718
	Short-term investments				24,998		-
	Restricted cash				84,602		90,044
	Marketable securities				44,646		31,522
	Tenant and other receivables, net of allowance for doubtful accounts of $1,544 and $1,993, respectively				2,213		2,925
	Receivable arising from the straight-lining of rents				179,939		177,401
	Deferred lease and other property costs, net, including unamortized leasing fees to Vornado of
		$33,974 and $36,728, respectively			46,561		50,273
	Deferred debt issuance costs, net of accumulated amortization of $11,295 and $19,187, respectively				4,824		3,246
	Other assets				23,716		20,394
				$	1,423,216	$	1,457,724
LIABILITIES AND EQUITY
	Mortgages payable			$	1,032,780	$	1,049,959
	Amounts due to Vornado				3,922		43,307
	Accounts payable and accrued expenses				35,127		27,450
	Other liabilities				2,988		3,427
			Total liabilities		1,074,817		1,124,143
	Commitments and contingencies
	Preferred stock: $1.00 par value per share; authorized, 3,000,000 shares; issued and outstanding, none				-		-
	Common stock: $1.00 par value per share; authorized, 10,000,000 shares;
		issued 5,173,450 shares; outstanding 5,106,196 shares			5,173		5,173
	Additional capital				30,139		29,745
	Retained earnings				299,004		297,515
	Accumulated other comprehensive income				14,457		1,522
					348,773		333,955
	Treasury stock: 67,254 shares, at cost				(374)		(374)
			Total equity		348,399		333,581
				$	1,423,216	$	1,457,724
See notes to consolidated financial statements.

36

 

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share amounts)
				Year Ended December 31,
				2014		2013		2012
	REVENUES
		Property rentals		$	136,628	$	135,908	$	134,847
		Expense reimbursements			64,186		60,551		56,465
	Total revenues				200,814		196,459		191,312
	EXPENSES
		Operating, including fees to Vornado of $4,516, $4,196, and $4,318, respectively			69,897		64,930		61,755
		Depreciation and amortization			29,196		28,987		28,815
		General and administrative, including management fees to Vornado of $2,380, $2,380
			and $2,160, respectively		5,032		5,026		5,162
	Total expenses				104,125		98,943		95,732
	OPERATING INCOME				96,689		97,516		95,580
		Interest and other income, net			2,434		1,527		177
		Interest and debt expense			(32,068)		(44,540)		(45,652)
		Income before income taxes			67,055		54,503		50,105
		Income tax benefit (expense)			341		160		(64)
	Income from continuing operations				67,396		54,663		50,041
	Income from discontinued operations, including a $599,628 net gain on sale of real
			estate in 2012		529		2,252		624,952
	Net income				67,925		56,915		674,993
	Net income attributable to the noncontrolling interest				-		-		(606)
	Net income attributable to Alexander’s			$	67,925	$	56,915	$	674,387
	Income per common share - basic and diluted:
		Income from continuing operations		$	13.19	$	10.70	$	9.80
		Income from discontinued operations, net			0.10		0.44		122.24
		Net income per common share		$	13.29	$	11.14	$	132.04
		Weighted average shares outstanding			5,110,628		5,109,055		5,107,610
See notes to consolidated financial statements.

37

 

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
			Year Ended December 31,
			2014		2013		2012
	Net income		$	67,925	$	56,915	$	674,993
	Other comprehensive income:
		Change in unrealized net gain on available-for-sale securities		13,124		316		1,206
		Change in value of interest rate cap		(189)		-		-
	Comprehensive income			80,860		57,231		676,199
	Less comprehensive income attributable to the noncontrolling interest			-		-		(606)
	Comprehensive income attributable to Alexander's		$	80,860	$	57,231	$	675,593
See notes to consolidated financial statements.

38

 

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Amounts in thousands)
									Accumulated
									Other				Non-
		Common Stock			Additional		Retained		Comprehensive		Treasury		controlling		Total
		Shares	Amount		Capital		Earnings		Income		Stock		Interest		Equity
Balance, December 31, 2011		5,173	$	5,173	$	31,801	$	322,201	$	-	$	(375)	$	4,445	$	363,245
Net income		-		-		-		674,387		-		-		606		674,993
Dividends paid, including a special
	dividend of $623,178	-		-		-		(699,791)		-		-		-		(699,791)
Acquisition of the noncontrolling
	interest	-		-		(2,749)		-		-		-		(5,051)		(7,800)
Change in unrealized net gain
	on available-for-sale securities	-		-		-		-		1,206		-		-		1,206
Deferred stock unit grant		-		-		300		-		-		-		-		300
Balance, December 31, 2012		5,173		5,173		29,352		296,797		1,206		(375)		-		332,153
Net income		-		-		-		56,915		-		-		-		56,915
Dividends paid								(56,197)								(56,197)
Change in unrealized net gain
	on available-for-sale securities	-		-		-		-		316		-		-		316
Deferred stock unit grant		-		-		394		-		-		-		-		394
Other		-		-		(1)		-		-		1		-		-
Balance, December 31, 2013		5,173		5,173		29,745		297,515		1,522		(374)		-		333,581
Net income		-		-		-		67,925		-		-		-		67,925
Dividends paid		-		-		-		(66,436)		-		-		-		(66,436)
Change in unrealized net gain
	on available-for-sale securities	-		-		-		-		13,124		-		-		13,124
Change in value of interest rate cap		-		-		-		-		(189)		-		-		(189)
Deferred stock unit grant		-		-		394		-		-		-		-		394
Balance, December 31, 2014		5,173	$	5,173	$	30,139	$	299,004	$	14,457	$	(374)	$	-	$	348,399
See notes to consolidated financial statements.

39

 

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
			Year Ended December 31,
			2014		2013		2012
	CASH FLOWS FROM OPERATING ACTIVITIES
	Net income		$	67,925	$	56,915	$	674,993
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization, including amortization of debt issuance costs		31,919		31,395		36,363
		Straight-lining of rental income		(2,538)		(3,707)		(4,475)
		Stock-based compensation expense		394		394		300
		Reversal of income tax liability		(420)		(206)		-
		Net gain on sale of real estate		-		-		(599,628)
	Change in operating assets and liabilities:
		Tenant and other receivables, net		712		(972)		234
		Other assets		(4,334)		(472)		4,318
		Amounts due to Vornado		(42,779)		(3,138)		(2,405)
		Accounts payable and accrued expenses		(1,373)		(6,284)		(107)
		Other liabilities		(19)		(42)		114
	Net cash provided by operating activities			49,487		73,883		109,707
	CASH FLOWS FROM INVESTING ACTIVITIES
		Construction in progress and real estate additions		(61,964)		(7,671)		(7,351)
		Purchases of short-term investments		(24,998)		-		-
		Restricted cash		5,442		351		(1,626)
		Proceeds from sale of real estate		-		-		714,054
		Proceeds from maturing short-term investments		-		-		5,000
	Net cash (used in) provided by investing activities			(81,520)		(7,320)		710,077
	CASH FLOWS FROM FINANCING ACTIVITIES
		Debt repayments		(317,179)		(15,957)		(265,016)
		Proceeds from borrowing		300,000		-		-
		Dividends paid, including a special dividend of $623,178 in 2012		(66,436)		(56,197)		(699,791)
		Debt issuance costs		(4,255)		(87)		(400)
		Acquisition of the noncontrolling interest		-		-		(7,800)
	Net cash used in financing activities			(87,870)		(72,241)		(973,007)
		Net decrease in cash and cash equivalents		(119,903)		(5,678)		(153,223)
		Cash and cash equivalents at beginning of year		347,718		353,396		506,619
		Cash and cash equivalents at end of year	$	227,815	$	347,718	$	353,396
	SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
	Cash payments for interest, excluding capitalized interest of $603 in 2014		$	30,656	$	42,121	$	47,932
	NON-CASH TRANSACTIONS
	Liability for real estate additions		$	13,529	$	1,084	$	221
	Marketable securities received in connection with the sale of real estate			-		-		30,000
	Commission payable to Vornado incurred in connection with the sale of real estate			-		-		7,510
	Write-off of fully amortized and/or depreciated assets			10,626		-		648
See notes to consolidated financial statements.

40

 

ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.    ORGANIZATION

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 six properties in the greater New York City metropolitan area consisting of:

Operating properties

·731 Lexington Avenue, a 1,307,000 square foot multi-use building, comprising the entire square block bounded by Lexington Avenue, East 59^th Street, Third Avenue and East 58^th Street in Manhattan.  The building contains 885,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold.  Bloomberg L.P. (“Bloomberg”) occupies all of the office space.  The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants;

·Rego Park I, a 343,000 square foot shopping center, located on Queens Boulevard and 63^rd Road in Queens.  The center is anchored by a 195,000 square foot Sears department store, a 50,000 square foot Burlington Coat Factory, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls;

·Rego Park II, a 609,000 square foot shopping center, adjacent to the Rego Park I shopping center in Queens.  The center is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.  In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado;

·Paramus, located at the intersection of Routes 4 and 17 in Paramus, New Jersey, consists of 30.3 acres of land that is leased to IKEA Property, Inc.; and

·Flushing, a 167,000 square foot building, located at Roosevelt Avenue and Main Street in Queens, that is sub-leased to New World Mall LLC for the remainder of our ground lease term.

Property under development

·Rego Park II Apartment Tower; We are in the process of constructing an apartment tower above our Rego II shopping center, containing 312 units aggregating 255,000 square feet, which is expected to be completed in 2015.  The estimated cost of this project is approximately $125,000,000, of which $73,327,000 has been incurred as of December 31, 2014.  There can be no assurance that the project will be completed, or completed on schedule or within budget.

Property to be developed

·Rego Park III, a 3.2 acre land parcel adjacent to the Rego Park II shopping center in Queens, at the intersection of Junction Boulevard and the Horace Harding Service Road.

We have determined that our properties have similar economic characteristics and meet the criteria that permit the properties to be aggregated into one reportable segment (the leasing, management, development and redeveloping of properties in the greater New York City metropolitan area).  Our chief operating decision-maker assesses and measures segment operating results based on a performance measure referred to as net operating income at the individual operating segment.  Net operating income for each property represents net rental revenues less operating expenses.

41

 

ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation – The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries.  All intercompany amounts have been eliminated.  Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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 financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.  Certain prior year balances have been reclassified in order to conform to current year presentation.

Recently Issued Accounting Literature– In April 2014, the Financial Accounting Standards Board (“FASB”) issued an update (“ASU 2014-08”) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity to Accounting Standards Codification (“ASC”) Topic 205, Presentation of Financial Statements and ASC Topic 360, Property Plant and Equipment.  Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations.  In addition, ASU 2014-08 expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals for individually significant components that do not meet the definition of discontinued operations.  ASU 2014-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2014.  The adoption of this update on January 1, 2015 is not expected to have any impact on our consolidated financial statements. 

In May 2014, the FASB issued an update (“ASU 2014-09”) establishing ASC Topic 606, Revenue from Contracts with Customers.  ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance.  ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures.  ASU 2014-09 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2016.  We are currently evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements.

Real Estate – Real estate is carried at cost, net of accumulated depreciation and amortization.  Maintenance and repairs are expensed as incurred.  Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components.  As real estate is undergoing development activities, all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense, are capitalized to the cost of the real property to the extent that we believe such costs are recoverable through the value of the property.  The capitalization period begins when development activities are underway and ends when the project is substantially complete.  General and administrative costs are expensed as incurred.  Depreciation is recognized on a straight-line basis over estimated useful lives, which range from 3 to 40 years.  Tenant allowances are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets. 

Our properties and related intangible assets, including properties to be developed in the future and currently under development, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared.  For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset.  An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value.  If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results.  Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

42

 

ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates fair value, due to their short-term maturities.  The majority of our cash and cash equivalents consist of (i) deposits at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit, (ii) United States Treasury Bills, (iii) money market funds, which invest in United States Treasury Bills and (iv) certificates of deposit placed through an account registry service (“CDARS”).  To date we have not experienced any losses on our invested cash. 

Short-term Investments – Short-term investments consist of United States Treasury Bills with original maturities greater than three but less than six months.  These highly liquid investments are classified as available-for-sale and are presented at fair value on our consolidated balance sheets.  Unrealized gains and losses resulting from these investments are included in “other comprehensive income” and are recognized in earnings only upon the expiration of the investments.

Restricted Cash – Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements.

Marketable Securities – Our marketable securities consist of common shares of The Macerich Company (NYSE: MAC) (“Macerich”), which are classified as available-for-sale.  Available-for-sale securities are presented at fair value on our consolidated balance sheets.  Unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income” and are recognized in earnings only upon the sale of the securities.  We evaluate our marketable securities for impairment at the end of each reporting period.  If investments have unrealized losses, we evaluate the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline.  In our evaluation, we consider our ability and intent to hold our investment for a reasonable period of time sufficient for us to recover our cost basis, as well as the near-term prospects for the investment in relation to the severity and duration of the decline.

Allowance for Doubtful Accounts– We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,544,000 and $1,993,000 as of December 31, 2014 and 2013, respectively) for the estimated losses resulting from the inability of tenants to make required payments under the lease agreements.  We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.

Deferred Charges – Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense.  Direct costs related to leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases.  All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate.

Revenue Recognition – We have the following revenue sources and revenue recognition policies:

Base Rent – revenue arising from tenant leases.  These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases.  We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use.  In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.

Percentage Rent – revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds.  These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).

Expense Reimbursements – revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties.  This revenue is accrued in the same periods as the expenses are incurred.

Parking Income – revenue arising from the rental of parking space at our properties.  This income is recognized as cash is received.

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ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Income Taxes – We operate in a manner intended to enable us to continue to qualify as a Real Estate Investment Trust (“REIT”) under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”).  In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year.  We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required.  Dividends distributed for the years ended December 31, 2014 and 2013 were categorized, for federal income tax purposes, as ordinary income. 

The following table reconciles our net income to estimated taxable income for the years ended December 31, 2014, 2013 and 2012.

(Unaudited and in thousands)		Year Ended December 31,
		2014		2013		2012
Net income attributable to Alexander’s		$	67,925	$	56,915	$	674,387
Straight-line rent adjustments			(2,538)		(3,707)		(4,475)
Depreciation and amortization timing differences			2,283		2,134		910
Interest expense			10		27		29
Reversal of liability for income taxes			(420)		(206)		-
Additional tax gain on sale of the Kings Plaza
	Regional Shopping Center		(357)		-		23,928
Other			1,112		(2,213)		4,396
Estimated taxable income		$	68,015	$	52,950	$	699,175

At December 31, 2014, the net basis of our assets and liabilities for tax purposes are approximately $204,815,000 lower than the amount reported for financial statement purposes.

44

 

ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

3.    RELATED PARTY TRANSACTIONS

Vornado

At December 31, 2014, Vornado owned 32.4% of our outstanding common stock.  We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable.

Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (“Interstate”), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado.  At December 31, 2014, Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.3% of our outstanding common stock, in addition to the 2.1% they indirectly own through Vornado.  Joseph Macnow, our Executive Vice President and Chief Financial Officer, is the Executive Vice President – Finance and Chief Administrative Officer of Vornado.  Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornado.

Management and Development Agreements

We pay Vornado an annual management fee equal to the sum of (i) $2,800,000, (ii) 2% of gross revenue from the Rego Park II shopping center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $280,000, escalating at 3% per annum, for managing the common area of 731 Lexington Avenue.  Vornado is also entitled to a development fee equal to 6% of development costs, as defined.  The payment of development fees for the Rego Park II Apartment Tower is due on substantial completion of the construction, as defined. 

Leasing Agreements

Vornado also provides us with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2% of rent for the eleventh through the twentieth year of a lease term, and 1% of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants.  In the event third-party real estate brokers are used, the fees to Vornado increase by 1% and Vornado is responsible for the fees to the third-party real estate brokers.  Vornado is also entitled to a commission upon the sale of any of our assets equal to 3% of gross proceeds, as defined, for asset sales less than $50,000,000 and 1% of gross proceeds, as defined, for asset sales of $50,000,000 or more.  Prior to December 22, 2014, the total of these amounts was payable in annual installments in an amount not to exceed $4,000,000, with interest on the unpaid balance at one-year LIBOR plus 1.0%.  On December 22, 2014, the leasing agreements with Vornado were amended to eliminate the annual installment cap of $4,000,000.  In addition, we paid the accrued balance of leasing commissions of $40,353,000 to Vornado.

Other Agreements

We also have agreements with Building Maintenance Services, a wholly owned subsidiary of Vornado, to supervise (i) cleaning, engineering and security services at our Lexington Avenue property and (ii) security services at our Rego Park I and Rego Park II properties, for an annual fee of the cost for such services plus 6%.

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ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

3.    RELATED PARTY TRANSACTIONS – continued

The following is a summary of fees to Vornado under the agreements discussed above, and includes $2,021,000 of property management and leasing fees for the year ended December 31, 2012, related to the Kings Plaza Regional Shopping Center (“Kings Plaza”), which was sold in November 2012 (see Note 4 – Discontinued Operations).   

		Year Ended December 31,
(Amounts in thousands)		2014		2013		2012
Company management fees		$	2,800	$	2,800	$	2,983
Development fees			3,394		-		438
Leasing fees			1,430		1,126		2,217
Commission on sale of real estate			-		-		7,510
Property management fees and payments for cleaning, engineering
	and security services		3,658		3,415		4,531
		$	11,282	$	7,341	$	17,679

At December 31, 2014, we owed Vornado $3,394,000 for development fees and $528,000 for management, property management and cleaning fees.

4.     DISCONTINUED OPERATIONS

On November 28, 2012, we completed the sale of Kings Plaza located in Brooklyn, New York, to Macerich, for $751,000,000.  Net proceeds from the sale, after repaying the existing loan and closing costs, were $479,000,000, of which $30,000,000 was in Macerich common shares.  The financial statement gain was $601,976,000, of which $599,628,000 was recognized in the fourth quarter of 2012 and the remaining $2,348,000 was deferred and will be recognized upon the disposition of the Macerich common shares.  Prior to the sale, in November 2012, we acquired the remaining 75% interest in our consolidated subsidiary, the Kings Plaza energy plant joint venture (which was sold with Kings Plaza), for $7,800,000 in cash.

On November 30, 2012, our Board of Directors declared a special long-term capital gain dividend of $122.00 per share, or $623,178,000 in the aggregate, to distribute the tax gain resulting from the sale of Kings Plaza.

In accordance with the provisions of ASC 360, Property, Plant and Equipment, we have reclassified the revenues and expenses of Kings Plaza to “income from discontinued operations” for all of the periods presented on our consolidated statements of income.  The table below sets forth the income from discontinued operations for the years ended December 31, 2014, 2013 and 2012.

		Year Ended December 31,
(Amounts in thousands)			2014		2013		2012
Total revenues		$	-	$	-	$	61,836
Total operating expenses(1)			-		-		31,214
			-		-		30,622
Interest and other income, net			529		2,252		45
Interest and debt expense			-		-		(5,343)
Net gain on sale			-		-		599,628
Income from discontinued operations		$	529	$	2,252	$	624,952
___________________
(1)	Includes fees to Vornado of $1,368 for the year ended December 31, 2012.

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ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

5.     MARKETABLE SECURITIES

As of December 31, 2014 and 2013, we owned 535,265 Macerich common shares, which were received in connection with the sale of Kings Plaza to Macerich.  These shares have an economic cost of $56.05 per share, or $30,000,000 in the aggregate.  As of December 31, 2014 and 2013, the fair value of these shares were $44,646,000 and $31,522,000, respectively, based on Macerich’s closing share price of $83.41 per share and $58.89 per share, respectively.  These shares are included in “marketable securities” on our consolidated balance sheets and are classified as available-for-sale.  Available-for-sale securities are presented at fair value and unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income.”  Other comprehensive income includes unrealized gains of $13,124,000 and $316,000 for the years ended December 31, 2014 and 2013, respectively.

6.    MORTGAGES PAYABLE

On February 28, 2014, we completed a $300,000,000 refinancing of the office portion of 731 Lexington Avenue.  The interest-only loan is at LIBOR plus 0.95% and matures in March 2017, with four one-year extension options.  The proceeds of the new loan and existing cash were used to repay the existing loan and closing costs.  In connection therewith, we purchased an interest rate cap with a notional amount of $300,000,000 that caps LIBOR at a rate of 6.0%.

The following is a summary of outstanding mortgages payable.

			Interest Rate at		Balance at December 31,
(Amounts in thousands)		Maturity(1)	December 31, 2014		2014		2013
First mortgages secured by:
	Rego Park I shopping center (100% cash	Mar. 2015	0.40	%	$	78,246	$	78,246
	collateralized)
	731 Lexington Avenue, retail space(2)	Jul. 2015	4.93	%		320,000		320,000
	Paramus	Oct. 2018	2.90	%		68,000		68,000
	Rego Park II shopping center(3)	Nov. 2018	2.02	%		266,534		269,496
	731 Lexington Avenue, office space(4)	Mar. 2021	1.11	%		300,000		314,217
					$	1,032,780	$	1,049,959
___________________
(1)	Represents the extended maturity where we have the unilateral right to extend.
(2)	In the event of a substantial casualty, as defined, up to $75,000 of this loan may become recourse to us.
(3)	This loan bears interest at LIBOR plus 1.85%.
(4)	This loan bears interest at LIBOR plus 0.95%.

All of our debt is secured by mortgages and/or pledges of the stock of the subsidiaries holding the properties.  The net carrying value of real estate collateralizing the debt amounted to $706,791,000 at December 31, 2014.  Our existing financing documents contain covenants that limit our ability to incur additional indebtedness on these properties, and in certain circumstances, provide for lender approval of tenants’ leases and yield maintenance to prepay them.  As of December 31, 2014, the principal repayments for the next five years and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2015	$	401,439
2016		3,440
2017		3,707
2018		324,194
2019		-
Thereafter		300,000

We intend to refinance our maturing debt as it comes due.

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ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

7.    FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value.  The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available.  The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value.

Financial Assets and Liabilities Measured at Fair Value

Financial assets measured at fair value on our consolidated balance sheets at December 31, 2014 and 2013 consists of marketable securities, short-term investments (treasury bills classified as available-for-sale) and an interest rate cap, which are presented in the table below, based on their level in the fair value hierarchy.  There were no financial liabilities measured at fair value at December 31, 2014 and 2013.

		As of December 31, 2014
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	44,646	$	44,646	$	-	$	-
	Short-term investments		24,998		24,998		-		-
	Interest rate cap (included in other assets)		11		-		11		-
	Total assets	$	69,655	$	69,644	$	11	$	-
		As of December 31, 2013
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	31,522	$	31,522	$	-	$	-

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents, mortgages payable and leasing commissions due to Vornado.  Cash equivalents are carried at cost, which approximates fair value due to their short-term maturities.  The fair value of our mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist.  The leasing commissions due to Vornado are carried at cost plus interest at variable rates, which approximate fair value.  The fair value of cash equivalents is classified as Level 1 and the fair value of mortgages payable and leasing commissions due to Vornado is classified as Level 2.  The table below summarizes the carrying amounts and fair value of these financial instruments as of December 31, 2014 and 2013.

			As of December 31, 2014				As of December 31, 2013
			Carrying		Fair		Carrying		Fair
(Amounts in thousands)			Amount		Value		Amount		Value
Assets:
	Cash equivalents	$	111,590	$	111,590	$	184,796	$	184,796
Liabilities:
	Mortgages payable	$	1,032,780	$	1,025,000	$	1,049,959	$	1,072,000
	Leasing commissions (included in Amounts due to Vornado)		-		-		42,924		43,000
		$	1,032,780	$	1,025,000	$	1,092,883	$	1,115,000

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ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

8.    LEASES

As Lessor

We lease space to tenants in an office building and in retail centers.  The rental terms range from approximately 5 to 25 years.  The leases provide for the payment of fixed base rents payable monthly in advance as well as reimbursements of real estate taxes, insurance and maintenance costs.  Retail leases may also provide for the payment by the lessee of additional rents based on a percentage of their sales.

Future base rental revenue under these non-cancelable operating leases is as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2015	$	127,877
2016		119,741
2017		121,079
2018		121,111
2019		118,537
Thereafter		903,901

These future minimum amounts do not include additional rents based on a percentage of tenants’ sales.  For the years ended December 31, 2014, 2013, and 2012, these rents were $108,000, $416,000, and $416,000, respectively.

Bloomberg accounted for $91,109,000, $88,164,000 and $86,468,000, or 45% of our total revenues in each of the years ended December 31, 2014, 2013 and 2012, respectively.  No other tenant accounted for more than 10% of our total revenues in any of the last three years.  If we were to lose Bloomberg as a tenant, or if Bloomberg were to fail or become unable to perform its obligations under its lease, it would adversely affect our results of operations and financial condition.  We receive and evaluate certain confidential financial information and metrics from Bloomberg on a semi-annual basis.  In addition, we access and evaluate financial information regarding Bloomberg from private sources, as well as publicly available data.

In October 2014, Bloomberg exercised its option to extend leases that were scheduled to expire in December 2015 covering 188,608 square feet of office space at our 731 Lexington Avenue property for a term of 5 years.  We are currently in negotiations with Bloomberg to determine the rental rate for the extension period.

As Lessee

We are a tenant under a long-term ground lease at our Flushing property, which expires in 2027 and has one 10-year extension option.  Future lease payments under this operating lease, excluding the extension option, are as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2015	$	700
2016		700
2017		792
2018		800
2019		800
Thereafter		5,666

Rent expense was $746,000 in each of the years ended December 31, 2014, 2013 and 2012.

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ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

9.    STOCK-BASED COMPENSATION

Our Omnibus Stock Plan (the “Plan”) provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, deferred stock units (“DSUs”) and performance shares, as defined, to the directors, officers and employees of the Company and Vornado, and any other person or entity as designated by the Omnibus Stock Plan Committee of our Board of Directors.  As of December 31, 2014, there were 5,005 DSUs outstanding and 889,735 shares were available for future grant.  We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. 

In May 2014, we granted each of the members of our Board of Directors 212 DSUs with a grant date fair value of $56,250 per grant, or $394,000 in the aggregate.  The DSUs entitle the holder to receive shares of our common stock without the payment of any consideration.  The DSUs vested immediately and accordingly were expensed on the date of grant, but the shares of common stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Company’s Board of Directors. 

10.  COMMITMENTS AND CONTINGENCIES

Insurance

We maintain general liability insurance with limits of $300,000,000 per occurrence 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.

Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020.  Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate.  Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies with no exposure to FNSIC.  For NBCR acts, FNSIC is responsible for a $275,000 deductible and 15% of the balance (16% effective January 1, 2016) of a covered loss, and the Federal government is responsible for the remaining 85% (84% effective January 1, 2016) of a covered loss.  We are ultimately responsible for any loss incurred by FNSIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism.  However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future.  We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.

Our mortgage loans are non-recourse to us, except for $75,000,000 of the $320,000,000 mortgage on the retail portion of our 731 Lexington Avenue property, in the event of a substantial casualty, as defined.  Our mortgage loans contain customary covenants requiring us to maintain insurance.  Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future.  If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties.

Litigation

Rego Park I

On June 24, 2014, Sears Roebuck and Co. (“Sears”) filed a lawsuit in the Supreme Court of the State of New York against Vornado and us (and certain of our subsidiaries) with regard to space that Sears leases at our Rego Park I property.  Sears alleges that the defendants are liable for harm Sears has suffered as a result of (a) water intrusions into the premises Sears leases, (b) two fires in February 2014 that caused damages to those premises, and (c) alleged violations of the Americans with Disabilities Act in the premises’ parking garage.  Sears asserts various causes of actions for damages and seeks to compel compliance with landlord’s obligations to repair the premises and to provide security, and to compel us to abate a nuisance that Sears claims was a cause of the water intrusions into its premises.  In addition to injunctive relief, Sears seeks, among other things, damages of not less than $4 million and future damages it estimates will not be less than $25 million.  We intend to defend the claims vigorously; the amount or range of reasonably possible losses, if any, cannot be estimated.

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ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

10.  COMMITMENTS AND CONTINGENCIES – continued

Rego Park II Apartment Tower

We are in the process of constructing an apartment tower above our Rego II shopping center, containing 312 units aggregating 255,000 square feet, which is expected to be completed in 2015.  The estimated cost of this project is approximately $125,000,000, of which $73,327,000 has been incurred as of December 31, 2014.  There can be no assurance that the project will be completed, or completed on schedule or within budget.

Paramus

In 2001, we leased 30.3 acres of land located in Paramus, New Jersey to IKEA Property, Inc. The lease has a purchase option in 2021 for $75,000,000. The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 2.90%, which matures in October 2018. The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan. If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a gain on sale of land of approximately $60,000,000. If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term.

Letters of Credit

Approximately $3,308,000 of standby letters of credit were issued and outstanding as of December 31, 2014.

Other

There are various legal actions against us in the ordinary course of business.  In our opinion, the outcome of such matters will not have a material effect on our financial condition, results of operations or cash flows.

11.  MULTIEMPLOYER BENEFIT PLANS

Our subsidiaries make contributions to certain multiemployer defined benefit plans (“Multiemployer Pension Plans”) and health plans (“Multiemployer Health Plans”) for our union represented employees, pursuant to the respective collective bargaining agreements.

Multiemployer Pension Plans

Multiemployer Pension Plans differ from single-employer pension plans in that (i) contributions to multiemployer plans may be used to provide benefits to employees of other participating employers and (ii) if other participating employers fail to make their contributions, each of our subsidiaries may be required to bear their pro rata share of unfunded obligations.  If a participating subsidiary withdraws from a plan in which it participates, it may be subject to a withdrawal liability.  As of December 31, 2014, our subsidiaries’ participation in these plans were not significant to our consolidated financial statements.

In the years ended December 31, 2014, 2013 and 2012 our subsidiaries contributed $144,000, $138,000 and $196,000, respectively, towards Multiemployer Pension Plans.  Of these amounts, $61,000 in the year ended December 31, 2012 represent contributions related to discontinued operations, which are included as a component of “income from discontinued operations” on our consolidated statements of income.  Our subsidiaries’ contributions did not represent more than 5% of total employer contributions in any of these plans for the years ended December 31, 2014, 2013 and 2012.

Multiemployer Health Plans

Multiemployer Health Plans in which our subsidiaries participate provide health benefits to eligible active and retired employees.  In the years ended December 31, 2014, 2013 and 2012 our subsidiaries contributed $533,000, $499,000 and $734,000, respectively, towards these plans.  Of these amounts, $250,000 in the year ended December 31, 2012 represent contributions related to discontinued operations, which are included as a component of “income from discontinued operations” on our consolidated statements of income.

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ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

12.  EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted income per share, including a reconciliation of net income and the number of shares used in computing basic and diluted income per share.  Basic income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period.  Diluted income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period, and assumes all potentially dilutive securities were converted into common shares at the earliest date possible.  There were no potentially dilutive securities outstanding during the years ended December 31, 2014, 2013 and 2012.

			For the Year Ended December 31,
(Amounts in thousands, except share and per share amounts)			2014		2013		2012
	Income from continuing operations		$	67,396	$	54,663	$	50,041
	Income from discontinued operations, net of income attributable to
		the noncontrolling interest		529		2,252		624,346
	Net income attributable to common stockholders – basic and diluted		$	67,925	$	56,915	$	674,387
	Weighted average shares outstanding – basic and diluted			5,110,628		5,109,055		5,107,610
	Income from continuing operations		$	13.19	$	10.70	$	9.80
	Income from discontinued operations, net			0.10		0.44		122.24
	Net income per common share – basic and diluted		$	13.29	$	11.14	$	132.04

13.  SUMMARY OF QUARTERLY RESULTS (UNAUDITED)

					Net Income
					Attributable to		Net Income Per
					Common		Common Share(1)
	(Amounts in thousands, except per share amounts)		Revenues		Stockholders		Basic		Diluted
	2014
		December 31	$	51,286	$	18,161	$	3.55	$	3.55
		September 30		50,077		17,692		3.46		3.46
		June 30		49,983		16,828		3.29		3.29
		March 31		49,468		15,244		2.98		2.98
	2013
		December 31	$	50,496	$	15,790	$	3.09	$	3.09
		September 30		49,886		13,824		2.71		2.71
		June 30		47,302		13,139		2.57		2.57
		March 31		48,775		14,162		2.77		2.77
_______________________
(1)	The total for the year may differ from the sum of the quarters as a result of weighting.

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ITEM 9.      changes in and disagreements with accountants on accounting and financial disclosure

None.

ITEM 9a.  controls and procedures

Disclosure Controls and Procedures – Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Annual Report on Form 10-K.  Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective.

Internal Control Over Financial Reporting – There have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities and Exchange Act of 1934, as amended) during the fourth quarter of the fiscal year to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

53

 

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING

The management of Alexander’s, Inc., together with its consolidated subsidiaries (the “Company”), is responsible for establishing and maintaining adequate internal control over financial reporting.  The Company’s internal control over financial reporting is a process designed under the supervision of the Company’s principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America.

As of December 31, 2014, management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting based on the framework established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.  Based on this assessment, management has determined that the Company’s internal control over financial reporting as of December 31, 2014 is effective.

The Company’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures are being made only in accordance with authorizations of management and the directors of the Company; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the Company’s financial statements.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2014 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing on page 55 of this Annual Report on Form 10-K, which expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2014.

54

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

Alexander’s, Inc.

Paramus, New Jersey

We have audited the internal control over financial reporting of Alexander’s, Inc. and subsidiaries (the “Company”) as of December 31, 2014, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.  The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting.  Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.  Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.  We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on the criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, 2014 of the Company and our report dated February 17, 2015 expressed an unqualified opinion on those financial statements and financial statement schedules.

/s/ DELOITTE & TOUCHE LLP

Parsippany, New Jersey

February 17, 2015

55

 

ITEM 9b.  other information

None.

PART III

ITEM 10.   directors, executive officers and corporate governance

Information relating to our directors, including our audit committee and audit committee financial expert, will be contained in a definitive Proxy Statement involving the election of directors pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended.  We will file the Proxy Statement with the Securities and Exchange Commission no later than 120 days after December 31, 2014.  Such information is incorporated by reference herein.  Also incorporated herein by reference is the information under the caption “Section 16(a) Beneficial Ownership Reporting Compliance” of the Proxy Statement.

The following is a list of the names, ages, principal occupations and positions with us of our executive officers and the positions held by such officers during the past five years.

		PRINCIPAL OCCUPATION, POSITION AND OFFICE
Name	Age	(Current and during past five years with the Company unless otherwise stated)
Steven Roth	73	Chairman of the Board since May 2004 and Chief Executive Officer since March 1995; Chairman of the Board of Vornado Realty Trust since May 1989; Chief Executive Officer of Vornado Realty Trust since April 2013 and from May 1989 to May 2009; a Trustee of Vornado Realty Trust since 1979; and Managing General Partner of Interstate Properties.
Joseph Macnow	69	Executive Vice President and Chief Financial Officer since June 2002; Executive Vice President – Finance and Chief Administrative Officer of Vornado Realty Trust since June 2013; Executive Vice President – Finance and Administration of Vornado Realty Trust from January 1998 to June 2013; and Chief Financial Officer of Vornado Realty Trust from March 2001 to June 2013.

We have a code of business conduct and ethics that applies to, among others, our Chief Executive Officer and Executive Vice President and Chief Financial Officer.  The code is posted on our website at www.alx-inc.com.  We intend to satisfy our disclosure obligation regarding amendments and waivers of this code applicable to our Chief Executive Officer and Executive Vice President and Chief Financial Officer by posting such information on our website.

56

 

ITEM 11.   executive compensation

Information relating to executive compensation will be contained in the Proxy Statement referred to in “Item 10.  Directors, Executive Officers and Corporate Governance” of this Annual Report on Form 10-K.  Such information is incorporated by reference herein.

ITEM 12.      security ownership of certain beneficial owners and management and related   stockholder matters

Information relating to security ownership of certain beneficial owners and management and related stockholder matters, except as set forth below, will be contained in the Proxy Statement referred to in “Item 10.  Directors, Executive Officers and Corporate Governance” of this Annual Report on Form 10-K.  Such information is incorporated by reference herein.

Equity Compensation Plan Information  

The following table provides information as of December 31, 2014, regarding our equity compensation.

				Number of securities
	(a)			remaining available for
	Number of securities			future issuance under
	to be issued upon	Weighted-average		equity compensation
	exercise of	exercise price of		plans (excluding
	outstanding options,	outstanding options,		securities reflected in
Plan Category	warrants and rights	warrants and rights		column (a))
Equity compensation plans approved by security holders	5,005	$	-	889,735
Equity compensation plans not approved by security holders	N/A		N/A	N/A
Total	5,005	$	-	889,735

ITEM 13.      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Information relating to certain relationships and related transactions and director independence will be contained in the Proxy Statement referred to in “Item 10.  Directors, Executive Officers and Corporate Governance” of this Annual Report on Form 10-K.  Such information is incorporated by reference herein.

ITEM 14.      PRINCIPAL ACCOUNTING FEES AND SERVICES

Information relating to principal accounting fees and services will be contained in the Proxy Statement referred to in “Item 10.  Directors, Executive Officers and Corporate Governance” of this Annual Report on Form 10-K.  Such information is incorporated by reference herein.

57

 

PART IV

ITEM 15.      EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a)        The following documents are filed as part of this Annual Report on Form 10-K.

1.     The consolidated financial statements are set forth in Item 8 of this Annual Report on Form 10-K.

2.     The following financial statement schedules should be read in conjunction with the financial statements included in Item 8 of this 

Annual Report on Form 10-K.

		Pages in this
		Annual Report
		on Form 10-K
Schedule II – Valuation and Qualifying Accounts – years ended
	December 31, 2014, 2013 and 2012	60
Schedule III – Real Estate and Accumulated Depreciation as of
	December 31, 2014, 2013 and 2012	61

All other financial statement schedules are omitted because they are not applicable, not required, or the information is included elsewhere in the consolidated financial statements or the notes thereto.

3.     The following exhibits listed on the Exhibit Index, which is incorporated herein by reference, are filed with this Annual Report on Form 10-K.

Exhibit
No.
10.56	Fourth Amendment to Real Estate Retention Agreement, dated December 22, 2014 by and between Alexander's, Inc. and Vornado Realty, L.P.
10.57	Second Amendment to 59th Street Real Estate Retention Agreement, dated December 22, 2014 by and between 731 Retail One LLC, 731 Restaurant LLC, 731 Office Two LLC and Vornado Realty, L.P.
10.58	First Amendment to Rego II Real Estate Sub-Rentention Agreement, dated December 22, 2014 by and between Alexander's, Inc. and Vornado Realty L.P.
10.59	First Amendment to Real-Estate Sub-Retention Agreement, dated December 22, 2014 by and between Alexander's Management LLC and Vornado Realty, L.P.
12	Computation of Ratios
21	Subsidiaries of Registrant
23	Consent of Independent Registered Public Accounting Firm
31.1	Rule 13a-14(a) Certification of the Chief Executive Officer
31.2	Rule 13a-14(a) Certification of the Chief Financial Officer
32.1	Section 1350 Certification of the Chief Executive Officer
32.2	Section 1350 Certification of the Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

58

 

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		ALEXANDER’S, INC.
			(Registrant)
Date: February 17, 2015	By:		/s/ Joseph Macnow
			Joseph Macnow, Executive Vice President
			and Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	Signature		Title		Date
By:	/s/Steven Roth		Chairman of the Board of Directors and		February 17, 2015
		(Steven Roth)		Chief Executive Officer
				(Principal Executive Officer)
By:	/s/Joseph Macnow		Executive Vice President and		February 17, 2015
		(Joseph Macnow)		Chief Financial Officer
				(Principal Financial and Accounting Officer)
					February 17, 2015
By:	/s/Thomas R. DiBenedetto		Director
		(Thomas R. DiBenedetto)
					February 17, 2015
By:	/s/David Mandelbaum		Director
		(David Mandelbaum)
					February 17, 2015
By:	/s/Arthur Sonnenblick		Director
		(Arthur Sonnenblick)
					February 17, 2015
By:	/s/Neil Underberg		Director
		(Neil Underberg)
					February 17, 2015
By:	/s/Richard R. West		Director
		(Richard R. West)
					February 17, 2015
By:	/s/Russell B. Wight Jr.		Director
		(Russell B. Wight Jr)

59

 

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
(Amounts in thousands)
	Column A		Column B		Column C		Column D		Column E
					Additions:		Deductions:
			Balance at		Charged		Uncollectible		Balance
			Beginning		Against		Accounts		at End
	Description		of Year		Operations		Written Off		of Year
	Allowance for doubtful accounts:
		Year Ended December 31, 2014	$	1,993	$	705	$	(1,154)	$	1,544
		Year Ended December 31, 2013	$	2,219	$	348	$	(574)	$	1,993
		Year Ended December 31, 2012	$	1,039	$	1,304	$	(124)	$	2,219

60

 

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2014
(Amounts in thousands)
COLUMN A				COLUMN B		COLUMN C				COLUMN D		COLUMN E								COLUMN F		COLUMN G	COLUMN H	COLUMN I
												Gross Amount at Which
						Initial Cost to Company(1)						Carried at Close of Period												Depreciation
								Building,		Costs				Building,						Accumulated				in Latest
								Leaseholds		Capitalized				Leaseholds						Depreciation				Income
								and Leasehold		Subsequent				and Leasehold		Construction				and		Date of	Date	Statement
Description				Encumbrances		Land		Improvements		to Acquisition		Land		Improvements		In Progress		Total(2)		Amortization		Construction	Acquired(1)	is Computed
	New York, NY
		Rego Park I		$	78,246	$	1,647	$	8,953	$	50,553	$	1,647	$	59,370	$	136	$	61,153	$	27,569	1959	1992	3-39 years
		Rego Park II:
			Retail		266,534		3,127		1,467		384,926		3,127		386,260		133		389,520		52,747	2009	1992	3-40 years
			Residential		-		-		-		73,327		-		-		73,327		73,327		-	N/A	1992	N/A
		Rego Park III			-		779		-		2,196		779		503		1,693		2,975		120	N/A	1992	5-15 years
		Flushing			-		-		1,660		(107)		-		1,553		-		1,553		791	1975(3)	1992	N/A
		Lexington Avenue			620,000		14,432		12,355		426,691		27,497		425,981		-		453,478		128,798	2003	1992	9-39 years
	Paramus, NJ				68,000		1,441		-		10,313		11,754		-		-		11,754		-	N/A	1992	N/A
	Other Properties				-		167		1,804		(1,804)		167		-		-		167		-	N/A	1992	N/A
TOTAL				$	1,032,780	$	21,593	$	26,239	$	946,095	$	44,971	$	873,667	$	75,289	$	993,927	$	210,025
		__________________________
(1)		Initial cost is as of May 15, 1992 (the date on which the Company commenced its real estate operations).
(2)		The net basis of the Company’s assets and liabilities for tax purposes is approximately $204,815 lower than the amount reported for financial statement purposes.
(3)		Represents the date the lease was acquired.

61

 

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION
(Amounts in thousands)
				December 31,
				2014		2013		2012
	REAL ESTATE:
		Balance at beginning of period		$	919,576	$	911,792	$	906,907
		Additions during the period:
			Land		-		-		-
			Buildings and leasehold improvements		4,043		5,072		3,776
			Development and construction in progress		70,365		2,712		1,109
					993,984		919,576		911,792
			Less: Fully depreciated assets		(57)		-		-
		Balance at end of period		$	993,927	$	919,576	$	911,792
	ACCUMULATED DEPRECIATION:
		Balance at beginning of period		$	185,375	$	160,826	$	136,460
		Additions charged to operating expenses			24,707		24,549		24,366
					210,082		185,375		160,826
			Less: Fully depreciated assets		(57)		-		-
		Balance at end of period		$	210,025	$	185,375	$	160,826

62

 

			EXHIBIT INDEX
Exhibit
No.
3.1		-	Amended and Restated Certificate of Incorporation. Incorporated herein by reference from Exhibit 3.1 to the registrant’s Registration Statement on Form S-3 filed on September 20, 1995	*
3.2		-	By-laws, as amended. Incorporated herein by reference from Exhibit 3(ii) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2000	*
10.1		-	Real Estate Retention Agreement dated as of July 20, 1992, between Vornado Realty Trust and Keen Realty Consultants, Inc., each as special real estate consultants, and the Company. Incorporated herein by reference from Exhibit 10(i)(O) to the registrant’s Annual Report on Form 10-K for the fiscal year ended July 25, 1992	*
10.2		-	Extension Agreement to the Real Estate Retention Agreement, dated as of February 6, 1995, between the Company and Vornado Realty Trust. Incorporated herein by reference from Exhibit 10(i)(G)(2) to the registrant’s Annual Report Form 10-K for the year ended December 31, 1994	*
10.3		-	Agreement of Lease dated as of April 30, 2001 between Seven Thirty One Limited Partnership, landlord, and Bloomberg L.P., tenant. Incorporated herein by reference from Exhibit 10(v) B to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2001, filed on August 2, 2001	*
10.4		-	Lease dated as of October 2, 2001 by and between ALX of Paramus LLC, as Landlord, and IKEA Property, Inc. as Tenant. Incorporated herein by reference from Exhibit 10(v)(C)(4) to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2001, filed on March 13, 2002	*
10.5		-	First Amendment to Real Estate Retention Agreement, dated as of July 3, 2002, by and between Alexander’s, Inc. and Vornado Realty, L.P. Incorporated herein by reference from Exhibit 10(i)(E)(3) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.6		-	59th Street Real Estate Retention Agreement, dated as of July 3, 2002, by and between Vornado Realty, L.P., 731 Residential LLC and 731 Commercial LLC. Incorporated herein by reference from Exhibit 10(i)(E)(4) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.7		-	Amended and Restated Management and Development Agreement, dated as of July 3, 2002, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp. Incorporated herein by reference from Exhibit 10(i)(F)(1) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.8		-	Limited Liability Company Operating Agreement of 731 Residential LLC, dated as of July 3, 2002, among 731 Residential Holding LLC, as the sole member, Domenic A. Borriello, as an Independent Manager and Kim Lutthang, as an Independent Manager. Incorporated herein by reference from Exhibit 10(i)(A)(1) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.9		-	Limited Liability Company Operating Agreement of 731 Commercial LLC, dated as of July 3, 2002, among 731 Commercial Holding LLC, as the sole member, Domenic A. Borriello, as an Independent Manager and Kim Lutthang, as an Independent Manager. Incorporated herein by reference from Exhibit 10(i)(A)(2) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
			___________________
	*		Incorporated by reference.

63

 

10.10		-	Reimbursement Agreement, dated as of July 3, 2002, by and between Alexander’s, Inc., 731 Commercial LLC, 731 Residential LLC and Vornado Realty, L.P. Incorporated herein by reference from Exhibit 10(i)(C)(8) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.11		-	First Amendment of Lease, dated as of April 19, 2002, between Seven Thirty One Limited Partnership, landlord and Bloomberg L.P., tenant. Incorporated herein by reference from Exhibit 10(v)(B)(2) to the registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2002, filed on August 7, 2002	*
10.12		-	Loan Agreement dated as of July 6, 2005, between 731 Retail One LLC, as Borrower and Archon Financial, as Lender. Incorporated herein by reference from Exhibit 10.1 to the registrant’s Current Report on Form 8-K, filed on July 12, 2005	*
10.13	**	-	Form of Stock Option Agreement between the Company and certain employees. Incorporated herein by reference from Exhibit 10.61 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, filed on October 27, 2005	*
10.14	**	-	Form of Restricted Stock Option Agreement between the Company and certain employees. Incorporated herein by reference from Exhibit 10.62 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, filed on October 27, 2005	*
10.15	**	-	Registrant’s 2006 Omnibus Stock Plan dated April 4, 2006. Incorporated herein by reference from Annex B to Schedule 14A, filed by the registrant on April 28, 2006	*
10.16		-	Second Amendment to Real Estate Retention Agreement, dated as of January 1, 2007, by and between Alexander’s, Inc. and Vornado Realty L.P. Incorporated herein by reference from Exhibit 10.64 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2006, filed on February 26, 2007	*
10.17		-	Amendment to 59th Street Real Estate Retention agreement, dated as of January 1, 2007, by and among Vornado Realty L.P., 731 Retail One LLC, 731 Restaurant LLC, 731 Office One LLC and 731 Office Two LLC. Incorporated herein by reference from Exhibit 10.65 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2006, filed on February 26, 2007	*
10.18		-	First Amendment to Amended and Restated Management and Development Agreement, dated as of July 6, 2005, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp. Incorporated herein by reference from Exhibit 10.52 to the registrant’s Annual Report on Form 10-K, for the year ended December 31, 2007, filed on February 25, 2008	*
10.19		-	Second Amendment to Amended and Restated Management and Development Agreement, dated as of December 20, 2007, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp. Incorporated herein by reference from Exhibit 10.53 to the registrant’s Annual Report on Form 10-K, for the year ended December 31, 2007, filed on February 25, 2008	*
10.20		-	Third Amendment to Real Estate Retention Agreement, dated as of December 20, 2007, by and between Alexander’s, Inc., and Vornado Realty L.P. Incorporated herein by reference from Exhibit 10.55 to the registrant’s Annual Report on Form 10-K, for the year ended December 31, 2007, filed on February 25, 2008	*
10.21		-	Loan Agreement dated as of March 10, 2009 between Alexander’s Rego Park Shopping Center Inc., as Borrower and U.S. Bank National Association, as Lender. Incorporated herein by reference from Exhibit 10.55 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009	*
			___________________
	*		Incorporated by reference.
	**		Management contract or compensatory agreement.

64

 

10.22		-	Amended and Restated Mortgage, Security Agreement, Fixture Filing and Assignment of Leases and Rentals by and between Alexander’s Rego Shopping Center, Inc. as Borrower and U.S. Bank National Association as Lender, dated as of March 10, 2009. Incorporated herein by reference from Exhibit 10.56 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009	*
10.23		-	Amended and Restated Promissory Note dated as of March 10, 2009, by Alexander’s Rego Shopping Center Inc., in favor of U.S. Bank National Association. Incorporated herein by reference from Exhibit 10.57 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009	*
10.24		-	Cash Pledge Agreement dated as of March 10, 2009, executed by Alexander’s Rego Shopping Center Inc. to and for the benefit of U.S. Bank National Association. Incorporated herein by reference from Exhibit 10.58 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009	*
10.25		-	Lease dated as of February 7, 2005, by and between 731 Office One LLC, as Landlord, and Citibank, N.A., as Tenant. Incorporated herein by reference from Exhibit 10.59 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009	*
10.26		-	Assignment and Assumption and Consent Agreement, dated as of March 25, 2009, by and between 731 Office One LLC, as Landlord, Citicorp North America, Inc., as Assignor, and Bloomberg L.P., as Assignee. Incorporated herein by reference from Exhibit 10.60 to the registrant’s Quarterly Report on form 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009	*
10.27	**	-	Form of Alexander’s, Inc. 2006 Ominibus Stock Plan Deferred Stock Unit Agreement. Incorporated herein by reference to Exhibit 99.1 to the registrant’s Current Report on Form 8-K, filed on June 2, 2011	*
10.28		-	Third Amendment to Amended and Restated Management and Development Agreement, dated as of November 30, 2011, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp. Incorporated herein by reference from Exhibit 10.49 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.29		-	Loan and Security Agreement, dated November 30, 2011, by and between Rego II Borrower LLC, as Borrower, and the Lender. Incorporated herein by reference from Exhibit 10.50 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.30		-	Consolidated, Amended and Restated Promissory Note, dated November 30, 2011, by and between Rego II Borrower LLC, as Maker, and the Lender. Incorporated herein by reference from Exhibit 10.51 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.31		-	Consolidated, Amended and Restated Mortgage, Assignment of Leases and Rents and Security Agreement, dated November 30, 2011, by and between Rego II Borrower LLC, as Mortgagor, and the Mortgagee. Incorporated herein by reference from Exhibit 10.52 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.32		-	Guarantee of Recourse Carveouts, dated November 30, 2011, by Alexander’s, Inc., as Guarantor, to and for the benefit of the Lender. Incorporated herein by reference from Exhibit 10.53 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.33		-	Environmental Indemnity Agreement, dated November 30, 2011, among Rego II Borrower LLC and Alexander’s, Inc., individually or collectively as Indemnitor, in favor of the Lender. Incorporated herein by reference from Exhibit 10.54 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
			__________________
	*		Incorporated by reference.
	**		Management contract or compensatory agreement.

65

 

10.34		-	First Omnibus Loan Modification and Extension Agreement dated March 12, 2012 by and between Alexander’s Rego Shopping Center, Inc., as Borrower and U.S. Bank National Association, as Lender. Incorporated herein by reference from Exhibit 10.55 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed on May 7, 2012	*
10.35		-	Mortgage Modification Agreement dated March 12, 2012 by and between Alexander’s Rego Shopping Center, Inc., as Mortgagor and U.S. Bank National Association, as Mortgagee. Incorporated herein by reference from Exhibit 10.56 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed on May 7, 2012.	*
10.36		-	First Amendment and Modification of Loan and Security Agreement and Other Loan Documents, dated as of June 20, 2012 by and between Rego II Borrower LLC, as Borrower, and the Lender. Incorporated herein by reference from Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, filed on August 6, 2012	*
10.37		-	Fourth Amendment to Amended and Restated Management and Development Agreement, dated as of August 1, 2012, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp. Incorporated herein by reference from Exhibit 10.2 to the registrants Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, filed on November 1, 2012	*
10.38		-	Contribution Agreement and Joint Escrow Instructions, dated as of October 21, 2012, by and between Alexander’s Kings Plaza LLC, Alexander’s of Kings LLC and Kings Parking LLC, and Brooklyn Kings Plaza LLC	*
10.39		-	Fifth Amendment to Amended and Restated Management and Development Agreement, dated as of December 1, 2012, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp	*
10.40		-	Second Omnibus Loan Modification and Extension Agreement, dated March 8, 2013, by and between Alexander’s Rego Shopping Center, Inc., as Borrower and U.S. Bank National Association, as Lender. Incorporated herein by reference from exhibit 10.3 to the registrant’s Quarterly Report on Form 10-Q, filed on May 6, 2013	*
10.41		-	Second Mortgage Modification Agreement, dated March 8, 2013, by and between Alexander’s Rego Shopping Center, Inc., as Mortgator and U.S. Bank National Association, as Mortgagee. Incorporated herein by reference from exhibit 10.4 to the registrant’s Quarterly Report on Form 10-Q, filed on May 6, 2013	*
10.42	**	-	Form of Alexander’s, Inc. 2006 Omnibus Stock Plan Deferred Stock Unit Grant Agreement. Incorporated herein by reference from exhibit 10.59 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed on February 24, 2014	*
10.43		-	Second Amendment and Modification of Loan Agreement and Other Loan Documents and Ratification of Guarantor, dated November 15, 2013, by and between Rego II Borrower LLC, as Borrower, and the Lender. Incorporated herein by reference from exhibit 10.60 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed on February 24, 2014	*
10.44		-	Partial Release of Mortgage, dated November 15, 2013, by and between Rego II Borrower LLC, as Mortgagor, and the Mortgagee. Incorporated herein by reference from exhibit 10.61 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed on February 24, 2014	*
			____________________________________
	*		Incorporated by reference.
	**		Management contract or compensatory agreement.

66

 

10.45		-	Partial Release of Assignment of Leases and Rents, dated November 15, 2013, by and between Rego II Borrower LLC, as Assignor, and the Assignee. Incorporated herein by reference from exhibit 10.61 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed on February 24, 2014	*
10.46		-	Loan Agreement, date as of February 28, 2014, by and between 731 Office One LLC, as Borrower, and German American Capital Corporation, as Lender. Incorporated herein by reference from exhibit 10.1 to the registrant’s Quarterly report on Form 10-Q, filed on May 5, 2014	*
10.47		-	Consolidated, Amended and Restated Promissory Note, dated as of February 28, 2014, by and between 731 Office One LLC, as Borrower, and German American Capital Corporation, as Lender. Incorporated herein by reference from exhibit 10.2 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.48		-	Amended and Restated Mortgage, Assignment of Leases and Rents and Security Agreement, dated as of February 28, 2014, by and between 731 Office One LLC, as Mortgagor, and German American Capital Corporation, as Mortgagee. Incorporated herein by reference from exhibit 10.3 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.49		-	Assignment of Leases and Rents dated as of February 28, 2014, by and between 731 Office One LLC, as Assignor, and German American Capital Corporation, as Assignee. Incorporated herein by reference from exhibit 10.4 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.50		-	Guaranty of Recourse Obligations dated as of February 28, 2014, by and between Alexander’s, Inc., as Guarantor, and German American Capital Corporation, as Lender. Incorporated herein by reference from exhibit 10.5 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.51		-	Environmental Indemnity Agreement dated as of February 28, 2014, by and between 731 Office One LLC, as Indemnitor, and German American Capital Corporation, as Indemnitee. Incorporated herein by reference from exhibit 10.6 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.52		-	Termination Agreement dated as of February 28, 2014, by and among 731 Office One LLC, Alexander’s Management LLC, Vornado Realty L.P., 731 Office Two LLC, 731 Residential LLC, 731 Commerical LLC, 731 Retail One LLC and 731 Restaurant LLC. Incorporated herein by reference from exhibit 10.7 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.53		-	Real Estate Sub-Retention Agreement dated as of February 28, 2014, by and between Alexander’s Managegment LLC, as Agent, and Vornado Realty L.P., as Sub-Agent. Incorporated herein by reference from exhibit 10.8 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.54		-	Sixth Amendment to Amended and Restated Management and Development Agreement, dated as of March 21, 2014, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp. Incorporated herein by reference from exhibit 10.9 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
			___________________
	*		Incorporated by reference.

67

 

10.55	-			Rego Park II Residential Management and Development Agreement, dated as of March 21, 2014 by and between Alexander’s of Rego Residential LLC and Vornado Management Corp. Incorporated herein by reference from exhibit 10.10 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.56	-			Fourth Amendment to Real Estate Retention Agreement, dated December 22, 2014 by and between Alexander's, Inc. and Vornado Realty, L.P.
10.57	-			Second Amendment to 59th Street Real Estate Retention Agreement, dated December 22, 2014 by and between 731 Retail One LLC, 731 Restaurant LLC, 731 Office Two LLC and Vornado Realty, L.P.
10.58	-			First Amendment to Rego II Real Estate Sub-Rentention Agreement, dated December 22, 2014 by and between Alexander's, Inc. and Vornado Realty L.P.
10.59	-			First Amendment to Real-Estate Sub-Retention Agreement, dated December 22, 2014 by and between Alexander's Management LLC and Vornado Realty, L.P.
12	-			Computation of Ratios
21	-			Subsidiaries of Registrant
23	-			Consent of Independent Registered Public Accounting Firm
31.1	-			Rule 13a-14 (a) Certification of the Chief Executive Officer
31.2	-			Rule 13a-14 (a) Certification of the Chief Financial Officer
32.1	-			Section 1350 Certification of the Chief Executive Officer
32.2	-			Section 1350 Certification of the Chief Financial Officer
101.INS	-			XBRL Instance Document
101.SCH	-			XBRL Taxonomy Extension Schema
101.CAL	-			XBRL Taxonomy Extension Calculation Linkbase
101.DEF	-			XBRL Taxonomy Extension Definition Linkbase
101.LAB	-			XBRL Taxonomy Extension Label Linkbase
101.PRE	-			XBRL Taxonomy Extension Presentation Linkbase
			__________________
		*	Incorporated by reference.

68

EX-10

EXHIBIT 10.56 

FOURTH AMENDMENT TO REAL ESTATE RETENTION AGREEMENT

THIS FOURTH AMENDMENT TO REAL ESTATE RETENTION AGREEMENT (this “Amendment”) is made as of the 22 day of December, 2014, by and among ALEXANDER’S INC., a Delaware corporation having an office at 210 Route 4 East, Paramus, New Jersey 07652, (“Owner”), and VORNADO REALTY, L.P., a Delaware limited partnership, having an office at 210 Route 4 East, Paramus, New Jersey 07652 (“Vornado”). 

R E C I T A L S

WHEREAS, Vornado, Inc. and Keen Realty Consultants Inc. have heretofore entered into that certain Real Estate Retention Agreement, dated  as of July 20, 1992, as extended by that certain Extension Agreement by and among Owner and Vornado Realty Trust dated February 6, 1995, and as amended by that certain Amendment to Real Estate Retention Agreement by and among Owner and Vornado, dated as of July 3, 2002, as further amended by that certain Second Amendment to Real Estate Retention Agreement by and among Owner and Vornado, dated as of January 1, 2007, as further amended by that certain Third Amendment to Real Estate Retention Agreement by and among Owner and Vornado, dated as of December 20, 2007  (collectively, the “Retention Agreement”).  

WHEREAS, Owner and Vornado desire to further modify and amend the Retention Agreement as set forth below.

NOW THEREFORE, in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, Owner and Vornado hereby agree as follows:

1.Nothwithstanding the provisions of Article II.C.1(b) of the Retention Agreement requiring, among other things, the payment of fees and interest in Installments until such fees and interest thereon have been paid in full, Owner shall pay all outstanding accrued fees and interest thereon in full on or before December 31, 2014.  

2.The following amendment to the Retention Agreement shall be effective from and after the date hereof:

Article II.C.1.(b) is hereby amended by deleting the following therefrom:  

            “Notwithstanding the immediately preceding sentence, Vornado's fees under this Agreement and interest accrued with respect to such fees will be payable in an aggregate amount not to exceed $4,000,000 in any calendar year (or such lesser amount as may be due Vornado hereunder), less any amounts paid to Vornado under the 59th Street Real Estate Retention Agreement with respect to the same period.  Interest shall accrue on the unpaid fees outstanding hereunder from time to time at the 1-year LIBOR rate plus 100 basis points, such rate to be determined annually as of the first day of January of each year.  The fees and interest payable hereunder shall be paid in equal monthly installments (the

NYDOCS01/1393567.3

 

          “Installments”) until such fees and interest accrued thereon have been paid in full.  Installments shall be applied first to interest accrued hereunder and then to reduction of the fees outstanding hereunder from time to time.”   

3.This Amendment may be executed in several counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument.

4.All terms capitalized but not defined herein shall have the same meaning ascribed to such terms in the Retention Agreement.  The marginal headings and titles to the paragraphs of this Amendment are not a part of this Amendment and shall have no effect upon the construction or interpretation of any part hereof.

5.This Amendment is incorporated into and made a part of the Retention Agreement, and the Retention Agreement and all terms, conditions and provisions of the Retention Agreement are ratified and confirmed in all respects and is and shall continue to be in full force and effect as modified and amended hereby.

6.This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

7.This Amendment constitutes the entire understanding of the parties with respect to the subject hereof and may not be amended except in a writing executed by the parties hereto.

8.This Amendment shall be binding upon and inure to the benefit of the parties hereto, and their successors and permitted assigns.

[signature page follows]

2

NYDOCS01/1393567.3

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.

OWNER: 

ALEXANDER’S, INC.

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:   Chief Financial Officer

VORNADO:   

VORNADO REALTY, L.P.

By:  Vornado Realty Trust, as general partner

By:      /s/ Stephen Theriot                 

Name: Stephen W. Theriot

Title:   Chief Financial Officer

    

3

NYDOCS01/1393567.3

EX-10

EXHIBIT 10.57 

SECOND AMENDMENT TO 59^TH STREET REAL ESTATE RETENTION AGREEMENT

THIS SECOND AMENDMENT TO 59^th STREET REAL ESTATE RETENTION AGREEMENT (this “Amendment”) is made as of the 22 day of December, 2014, by and among 731 RETAIL ONE LLC, a Delaware limited liability company, 731 RESTAURANT LLC, a Delaware limited liability company, and 731 OFFICE TWO LLC, a Delaware limited liability company, each having an office c/o Vornado Realty Trust, 888 Seventh Avenue, New York, New York  10019 (collectively, “Owner”), and VORNADO REALTY, L.P., a Delaware limited partnership, having an office at 210 Route 4 East, Paramus, New Jersey 07652 (“Vornado”). 

R E C I T A L S

WHEREAS, 731 RESIDENTIAL LLC, a Delaware limited liability company and 731 COMMERCIAL LLC, a Delaware limited liability company (“Commercial LLC”), and Vornado, as agent, have heretofore entered into that certain 59^th Street Real Estate Retention Agreement, dated  as of July 3, 2002, as amended by that certain Letter Agreement Relating to 59^th Street Real Estate Retention Agreement by and among 731 RETAIL ONE LLC, a Delaware limited liability company, Commercial LLC and Vornado dated as of July 6, 2005, and as further amended by that certain Amendment to the 59^th Street Real Estate Retention Agreement by and among Owner, 731 OFFICE ONE LLC, a Delaware limited liability company (“Office One LLC”), and Vornado dated as of January 1, 2007 (collectively, the “59^th Street Retention Agreement. 

WHEREAS, pursuant to that certain Termination Agreement dated as of February 28, 2014, Office One LLC was removed as a party to the 59^th Street Retention Agreement.

WHEREAS, Owner and Vornado desire to further modify and amend the 59^th Street Retention Agreement as set forth below.

NOW THEREFORE, in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, Owner and Vornado hereby agree as follows:

1.Nothwithstanding the provisions of Article II.C.1(b) of the 59^th Street Retention Agreement requiring, among other things, the payment of fees and interest in Installments until such fees and interest thereon have been paid in full, Owner shall pay all outstanding accrued fees and interest thereon in full on or before December 31, 2014.  

2.The following amendment to the 59^th Street Retention Agreement shall be effective from and after the date hereof:

Article II.C.1.(b) is hereby amended by deleting the following therefrom:  

            “Notwithstanding the immediately preceding sentence, Vornado's fees under this Agreement and interest accrued with respect to such

NYDOCS01/1393342.3

 

            fees will be payable in an aggregate amount not to exceed $4,000,000 in any calendar year (or such lesser amount as may be due Vornado hereunder), less any amounts paid to Vornado under that certain Real Estate Retention Agreement dated as of July 20, 1992, as amended, with respect to the same period.  Interest shall accrue on the unpaid fees outstanding hereunder from time to time at the 1-year LIBOR rate plus 100 basis points, such rate to be determined annually as of the first day of January of each year.  The fees and interest payable hereunder shall be paid in equal monthly installments (the “Installments”) until such fees and interest accrued thereon have been paid in full.  Installments shall be applied first to interest accrued hereunder and then to reduction of the fees outstanding hereunder from time to time.”   

3.This Amendment may be executed in several counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument.

4.All terms capitalized but not defined herein shall have the same meaning ascribed to such terms in the 59^th Street Retention Agreement.  The marginal headings and titles to the paragraphs of this Amendment are not a part of this Amendment and shall have no effect upon the construction or interpretation of any part hereof.

5.This Amendment is incorporated into and made a part of the 59^th Street Retention Agreement, and the 59^th Street Retention Agreement and all terms, conditions and provisions of the 59^th Street Retention Agreement are ratified and confirmed in all respects and is and shall continue to be in full force and effect as modified and amended hereby.

6.This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

7.This Amendment constitutes the entire understanding of the parties with respect to the subject hereof and may not be amended except in a writing executed by the parties hereto.

8.This Amendment shall be binding upon and inure to the benefit of the parties hereto, and their successors and permitted assigns.

[signature page follows]

2

NYDOCS01/1393342.3

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.

OWNER: 

731 RETAIL ONE LLC, as sole member

By:    731 Commercial LLC, its sole member

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:   Executive Vice President

By:    731 Commercial Holding LLC, as sole

          member 

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:   Executive Vice President

By:    Alexander’s, Inc., its sole member

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:   Chief Financial Officer

731 RESTAURANT LLC

By:    731 Commercial LLC, as sole member

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:   Executive Vice President

By:    731 Commercial Holding LLC, its sole

          member
 

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:   Executive Vice President

By:    Alexander’s, Inc., its sole member

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:    Chief Financial Officer

3

NYDOCS01/1393342.3

 

731 OFFICE TWO LLC

By:    731 Office Two Holding LLC, as sole

          member

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:   Executive Vice President

By:    Alexander’s, Inc., its sole member

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:   Chief Financial Officer

VORNADO:   

VORNADO REALTY, L.P.

By:    Vornado Realty Trust, as general partner

By:      /s/ Stephen Theriot                 

Name: Stephen W. Theriot

Title:   Chief Financial Officer

                                                                                                    4

NYDOCS01/1393342.3

EX-10

EXHIBIT 10.58 

FIRST AMENDMENT TO REGO II REAL ESTATE SUB-RETENTION AGREEMENT

THIS FIRST AMENDMENT TO REGO II REAL ESTATE SUB-RETENTION AGREEMENT (this “Amendment”) is made as of the 22 day of December, 2014, by and among ALEXANDER’S, INC.,  a Delaware corporation having an address at 210 Route 4 East, Paramus, New Jersey 07652 (“Agent”), and VORNADO REALTY, L.P., a Delaware limited partnership having an address at 210 Route 4 East, Paramus, New Jersey 07652 (“Sub-Agent”).   

R E C I T A L S

WHEREAS, Rego II Borrower LLC (“Owner”) is the owner of that certain improved real property described on Schedule A (the “Assets”) to that certain Rego II Real Estate Retention Agreement dated as of November 30, 2011 by and between Owner and Agent (the “Retention Agreement”). Pursuant to the terms of the Retention Agreement, Agent agreed to act as special real estate consultant to Owner.

WHEREAS, Agent and Sub-Agent are parties to that certain Rego II Real Estate Sub-Retention Agreement dated as of November 30, 2011 (the “Sub-Retention Agreement”). 

WHEREAS, Agent and Sub-Agent desire to modify and amend the Sub-Retention Agreement as set forth below.

NOW THEREFORE, in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, Agent and Sub-Agent hereby agree as follows:

1.The following amendment to the Sub-Retention Agreement shall be effective from and after the date hereof:

Article II.C.1 (b) is hereby amended by adding the following thereto:  

            “Fees payable with respect to a sale, assignment or In Lieu Asset Transaction shall be paid first and Sub-Agent shall not be entitled to receive any fees with respect to  a lease or sublease to the extent the tenant is in default of its payment obligations thereunder, except as a result of a default by the Owner or a termination by Owner of the lease or sublease (other than a termination by the Owner resulting from the tenant’s monetary default).”   

2.This Amendment may be executed in several counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument.

3.All terms capitalized but not defined herein shall have the same meaning ascribed to such terms in the Sub-Retention Agreement or Retention Agreement, as the case may be.  The marginal headings and titles to the paragraphs of this Amendment are not a part of this Amendment and shall have no effect upon the construction or interpretation of any part hereof.

NYDOCS01/1574131.2

 

4.This Amendment is incorporated into and made a part of the Sub-Retention Agreement, and the Sub-Retention Agreement and all terms, conditions and provisions of the Sub-Retention Agreement are ratified and confirmed in all respects and is and shall continue to be in full force and effect as modified and amended hereby.

5.This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

6.This Amendment constitutes the entire understanding of the parties with respect to the subject hereof and may not be amended except in a writing executed by the parties hereto.

7.This Amendment shall be binding upon and inure to the benefit of the parties hereto, and their successors and permitted assigns.

[signature page follows]

2

NYDOCS01/1574131.2

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.

SUB-AGENT: 

VORNADO REALTY L.P., a Delaware limited partnership

By: Vornado Realty Trust, its general partner

By:      /s/ Stephen Theriot                                                          

Name: Stephen Theriot

Title:   Chief Financial Officer

AGENT: 

ALEXANDER’S, INC.

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow

Title:   Chief Financial Officer

                        3

NYDOCS01/1574131.2

EX-10

EXHIBIT 10.59 

FIRST AMENDMENT TO REAL-ESTATE SUB-RETENTION AGREEMENT

THIS FIRST AMENDMENT TO REAL ESTATE SUB-RETENTION AGREEMENT (this “Amendment”) is made as of the 22 day of December, 2014, by and among ALEXANDER’S MANAGEMENT LLC,  a New York limited liability company having an office c/o Alexander’s, Inc., 210 Route 4 East, Paramus, New Jersey 07652 (“Agent”) and VORNADO REALTY, L.P., a Delaware limited partnership having an office at c/o Vornado Realty Trust, 210 Route 4 East, Paramus, New Jersey 07652 (“Sub-Agent”).   

R E C I T A L S

WHEREAS, 731 OFFICE ONE LLC, a Delaware limited liability company (“Owner”), and Agent are parties to that certain Real Estate Retention Agreement, dated as of February 28, 2014 (the “Over-Leasing Agreement”); all capitalized terms used, but not defined herein shall have the meanings set forth in the Over-Leasing Agreement), pursuant to which Agent was appointed to act for Owner in connection with the leasing of those certain office condominium units located at 731 Lexington Avenue, New York, New York (as more fully identified in the Over-Leasing Agreement).

WHEREAS, Agent and Sub-Agent are parties to that certain Real Estate Sub-Retention Agreement dated as of February 28, 2014 (the “Sub-Retention Agreement”). 

WHEREAS, Agent and Sub-Agent desire to modify and amend the Sub-Retention Agreement as set forth below.

NOW THEREFORE, in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, Agent and Sub-Agent hereby agree as follows:

1.Nothwithstanding the provisions of Article IV.A(b) of the Sub-Retention Agreement requiring, among other things, the payment of fees and interest in Installments until such fees and interest thereon have been paid in full, Agent shall pay all outstanding accrued fees and interest thereon in full on or before December 31, 2014.  

2.The following amendment to the Sub-Retention Agreement shall be effective from and after the date hereof:

Article IV.A (b) is hereby amended by deleting the following therefrom:  

            “Notwithstanding the immediately preceding sentence, Sub-Agent’s fees under this Agreement and interest accrued with respect to such fees will be payable in an aggregate amount not to exceed (1) $4,000,000 in any calendar year (or such lesser amount as may be due Sub-Agent hereunder), less (2) the sum of (x) any amounts paid to Sub-Agent under that certain Real Estate Retention Agreement dated as of July 20, 1992, as amended, with respect to the same period, and (y) any amounts paid to Sub-Agent under that certain Rego II Real Estate Sub-Retention Agreement

NYDOCS01/1573802.2

 

            dated as of November 30, 2011, as amended, with respect to the same period, and (z) any amounts paid to Sub-Agent under the Original Agreement, as amended, with respect to the same period.  Interest shall accrue on the unpaid fees outstanding hereunder from time to time at the 1-year LIBOR rate plus 100 basis points, such rate to be determined annually as of the first day of January of each year.  The fees and interest payable hereunder shall be paid in equal monthly installments (the “Installments”) until such fees and interest accrued thereon have been paid in full.  Installments shall be applied first to interest accrued hereunder and then to reduction of the fees outstanding hereunder from time to time.”   

3.This Amendment may be executed in several counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument.

4.All terms capitalized but not defined herein shall have the same meaning ascribed to such terms in the Sub-Retention Agreement or Over-Leasing Agreement, as the case may be.  The marginal headings and titles to the paragraphs of this Amendment are not a part of this Amendment and shall have no effect upon the construction or interpretation of any part hereof.

5.This Amendment is incorporated into and made a part of the Sub-Retention Agreement, and the Sub-Retention Agreement and all terms, conditions and provisions of the Sub-Retention Agreement are ratified and confirmed in all respects and is and shall continue to be in full force and effect as modified and amended hereby.

6.This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

7.This Amendment constitutes the entire understanding of the parties with respect to the subject hereof and may not be amended except in a writing executed by the parties hereto.

8.This Amendment shall be binding upon and inure to the benefit of the parties hereto, and their successors and permitted assigns.

[signature page follows]

2

NYDOCS01/1573802.2

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.

SUB-AGENT: 

VORNADO REALTY L.P., a Delaware limited partnership

By: Vornado Realty Trust, its general partner

By:      /s/ Stephen Theriot                

Name: Stephen W. Theriot

Title:   Chief Financial Officer

AGENT: 

ALEXANDER’S MANAGEMENT LLC, a New York limited liability company

By:  ALEXANDER’S INC., a Delaware corporation, its sole member

By:      /s/ Joseph Macnow                 

Name: Joseph Macnow         

Title:   Chief Financial Officer

                                                                                                    3

NYDOCS01/1573802.2

EX-12

EXHIBIT 12

COMPUTATION OF RATIOS

(UNAUDITED)

Our consolidated ratios of earnings to fixed charges for each of the fiscal years ended December 31, 2014, 2013, 2012, 2011 and 2010 are as follows:

			Year Ended December 31,
			2014		2013		2012		2011		2010
Earnings:
	Pretax income from continuing operations		$	67,055	$	54,503	$	50,105	$	54,789	$	46,335
	Fixed charges			32,920		44,789		45,901		44,147		46,973
	Capitalized interest			(603)		-		-		-		(1,269)
		Total earnings - Numerator	$	99,372	$	99,292	$	96,006	$	98,936	$	92,039
Fixed charges:
	Interest and debt expense		$	32,068	$	44,540	$	45,652	$	43,898	$	45,455
	1/3 of rent expense - interest factor			249		249		249		249		249
	Capitalized interest			603		-		-		-		1,269
		Total fixed charges - Denominator	$	32,920	$	44,789	$	45,901	$	44,147	$	46,973
Ratio of earnings to fixed charges				3.02		2.22		2.09		2.24		1.96

Earnings equals (i) income from continuing operations before income taxes, plus (ii) fixed charges, minus (iii) capitalized interest.  Fixed charges equals (i) interest and debt expense, plus (ii) the portion of operating lease rental expense that is representative of the interest factor, which is one-third of operating lease rentals and (iii) capitalized interest.

EX-21

EXHIBIT 21

ALEXANDER’S, INC.

SUBSIDIARIES OF REGISTRANT

731 Commercial Holding LLC

731 Commercial, LLC

731 Office One Holding LLC

731 Office One LLC

731 Office Two Holding LLC

731 Office Two LLC

731 Residential LLC

731 Restaurant, LLC

731 Retail One LLC

Alexander’s Construction LLC

Alexander’s Management LLC

Alexander’s of Brooklyn, Inc.

Alexander’s Kings Plaza, LLC

Alexander’s of Flushing, Inc.

Alexander’s of Rego Park II, Inc.

Alexander’s of Rego Park III, Inc.

Alexander’s of Rego Residential LLC

Alexander’s Rego Shopping Center Inc.

ALX of Paramus LLC

Fifty Ninth Street Insurance Company LLC

Kings Parking, LLC

Kings Plaza TEP LLC

Rego II Borrower LLC

EX-23

 

EXHIBIT 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements of our reports dated February 17, 2015, relating to the consolidated financial statements and financial statement schedules of Alexander’s, Inc. and subsidiaries and the effectiveness of Alexander’s, Inc.’s internal control over financial reporting, appearing in the Annual Report on Form 10-K of Alexander’s, Inc. for the year ended December 31, 2014: 

·Registration Statement No. 333-151721 on Form S-8   

·Registration Statement No. 333-180630 on Form S-3

/s/ Deloitte & Touche LLP

Parsippany, New Jersey

February 17, 2015

EX-31

 

EXHIBIT 31.1

CERTIFICATION

I, Steven Roth, certify that:

1.     I have reviewed this Annual Report on Form 10‑K of Alexander’s, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

February 17, 2015

/s/ Steven Roth

Steven Roth

Chairman of the Board and

Chief Executive Officer

EX-31

 

EXHIBIT 31.2

CERTIFICATION

I, Joseph Macnow, certify that:

1.     I have reviewed this Annual Report on Form 10‑K of Alexander’s, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

February 17, 2015

/s/ Joseph Macnow

Joseph Macnow

Executive Vice President and

Chief Financial Officer

EX-32

 

EXHIBIT 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Alexander’s, Inc. (the “Company”), hereby certifies, to such officer’s knowledge, that: 

The Annual Report on Form 10-K for year ended December 31, 2014(the “Report”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

February 17, 2015		/s/ Steven Roth
	Name:	Steven Roth
	Title:	Chairman of the Board and
		Chief Executive Officer

EX-32

 

EXHIBIT 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Alexander’s, Inc. (the “Company”), hereby certifies, to such officer’s knowledge, that: 

The Annual Report on Form 10-K for year ended December 31, 2014(the “Report”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

February 17, 2015		/s/ Joseph Macnow
	Name:	Joseph Macnow
	Title:	Executive Vice President and
		Chief Financial Officer

XML

Marketable Securities (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Investment Holdings [Line Items]
Fair Value	$ 44,646	$ 31,522
Macerich interest [Member]
Investment Holdings [Line Items]
Macerich Common Shares	535,265	535,265
Economic basis per share (in dollars per share)	$ 56.05
GAAP Cost	30,000
Fair Value	44,646	31,522
Closing share price (in dollars per share)	$ 83.41	$ 58.89
Unrealized Gains	$ 13,124	$ 316

XML

Schedule II: Valuation and Qualifying accounts (Details) (Allowance for Doubtful Accounts [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Allowance for Doubtful Accounts [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Year	$ 1,993	$ 2,219	$ 1,039
Additions: Charged Against Operations	705	348	1,304
Deductions: Uncollectible Accounts Written Off	(1,154)	(574)	(124)
Balance at End of Year	$ 1,544	$ 1,993	$ 2,219

XML

Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share [Abstract]
Income from continuing operations	$ 67,396	$ 54,663	$ 50,041
Income from discontinued operations, net of income attributable to the noncontrolling interest	529	2,252	624,346
Net income attributable to common stockholders - basic and diluted	$ 67,925	$ 56,915	$ 674,387
Weighted average shares outstanding (in shares)	5,110,628	5,109,055	5,107,610
Income from continuing operations (in dollars per share)	$ 13.19	$ 10.70	$ 9.80
Income from discontinued operations, net (in dollars per share)	$ 0.10	$ 0.44	$ 122.24
Net income per common share- basic and diluted (in dollars per share)	$ 13.29	$ 11.14	$ 132.04

XML

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

			For the Year Ended December 31,
(Amounts in thousands, except share and per share amounts)			2014		2013		2012
	Income from continuing operations		$	67,396	$	54,663	$	50,041
	Income from discontinued operations, net of income attributable to
		the noncontrolling interest		529		2,252		624,346
	Net income attributable to common stockholders – basic and diluted		$	67,925	$	56,915	$	674,387
	Weighted average shares outstanding – basic and diluted			5,110,628		5,109,055		5,107,610
	Income from continuing operations		$	13.19	$	10.70	$	9.80
	Income from discontinued operations, net			0.10		0.44		122.24
	Net income per common share – basic and diluted		$	13.29	$	11.14	$	132.04

XML

Schedule III: Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2014

Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III: Real Estate and Accumulated Depreciation [Text Block]

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2014
(Amounts in thousands)
COLUMN A				COLUMN B		COLUMN C				COLUMN D		COLUMN E								COLUMN F		COLUMN G	COLUMN H	COLUMN I
												Gross Amount at Which
						Initial Cost to Company(1)						Carried at Close of Period												Depreciation
								Building,		Costs				Building,						Accumulated				in Latest
								Leaseholds		Capitalized				Leaseholds						Depreciation				Income
								and Leasehold		Subsequent				and Leasehold		Construction				and		Date of	Date	Statement
Description				Encumbrances		Land		Improvements		to Acquisition		Land		Improvements		In Progress		Total(2)		Amortization		Construction	Acquired(1)	is Computed
	New York, NY
		Rego Park I		$	78,246	$	1,647	$	8,953	$	50,553	$	1,647	$	59,370	$	136	$	61,153	$	27,569	1959	1992	3-39 years
		Rego Park II:
			Retail		266,534		3,127		1,467		384,926		3,127		386,260		133		389,520		52,747	2009	1992	3-40 years
			Residential		-		-		-		73,327		-		-		73,327		73,327		-	N/A	1992	N/A
		Rego Park III			-		779		-		2,196		779		503		1,693		2,975		120	N/A	1992	5-15 years
		Flushing			-		-		1,660		(107)		-		1,553		-		1,553		791	1975(3)	1992	N/A
		Lexington Avenue			620,000		14,432		12,355		426,691		27,497		425,981		-		453,478		128,798	2003	1992	9-39 years
	Paramus, NJ				68,000		1,441		-		10,313		11,754		-		-		11,754		-	N/A	1992	N/A
	Other Properties				-		167		1,804		(1,804)		167		-		-		167		-	N/A	1992	N/A
TOTAL				$	1,032,780	$	21,593	$	26,239	$	946,095	$	44,971	$	873,667	$	75,289	$	993,927	$	210,025
		__________________________
(1)		Initial cost is as of May 15, 1992 (the date on which the Company commenced its real estate operations).
(2)		The net basis of the Company’s assets and liabilities for tax purposes is approximately $204,815 lower than the amount reported for financial statement purposes.
(3)		Represents the date the lease was acquired.

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION
(Amounts in thousands)
				December 31,
				2014		2013		2012
	REAL ESTATE:
		Balance at beginning of period		$	919,576	$	911,792	$	906,907
		Additions during the period:
			Land		-		-		-
			Buildings and leasehold improvements		4,043		5,072		3,776
			Development and construction in progress		70,365		2,712		1,109
					993,984		919,576		911,792
			Less: Fully depreciated assets		(57)		-		-
		Balance at end of period		$	993,927	$	919,576	$	911,792
	ACCUMULATED DEPRECIATION:
		Balance at beginning of period		$	185,375	$	160,826	$	136,460
		Additions charged to operating expenses			24,707		24,549		24,366
					210,082		185,375		160,826
			Less: Fully depreciated assets		(57)		-		-
		Balance at end of period		$	210,025	$	185,375	$	160,826

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Schedule III: Rollforward of Real Estate Assets and Accumulated Depreciation (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Real Estate and Accumulated Depreciation [Line Items]
Balance at beginning of period	$ 919,576	$ 911,792	$ 906,907
Subtotal real estate	993,984	919,576	911,792
Less: Fully depreciated assets	(57)	0	0
Balance at end of the period	993,927	919,576	911,792
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at beginning of period	185,375	160,826	136,460
Real Estate Accumulated Depreciation, Depreciation Expense	24,707	24,549	24,366
Subtotal of accumulated depreciation	210,082	185,375	160,826
Less: Fully depreciated assets	(57)	0	0
Balance at end of the period	210,025	185,375	160,826
Land Improvements [Member]
Real Estate and Accumulated Depreciation [Line Items]
Real Estate, Improvements	0	0	0
Building Improvements [Member]
Real Estate and Accumulated Depreciation [Line Items]
Real Estate, Improvements	4,043	5,072	3,776
Construction in Progress [Member]
Real Estate and Accumulated Depreciation [Line Items]
Real Estate, Improvements	$ 70,365	$ 2,712	$ 1,109

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Leases (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended			1 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Oct. 31, 2014 sqft
Operating Leases, Future Minimum Payments Receivable [Abstract]
2015	$ 127,877								$ 127,877
2016	119,741								119,741
2017	121,079								121,079
2018	121,111								121,111
2019	118,537								118,537
Thereafter	903,901								903,901
Additional Rent Based on Percentage of Tenant's sales									108	416	416
Real Estate Properties [Abstract]
Real estate revenue, net (in dollars)	51,286	50,077	49,983	49,468	50,496	49,886	47,302	48,775	200,814	196,459	191,312
Operating Leases, Future Minimum Payments Due [Abstract]
2015	700								700
2016	700								700
2017	792								792
2018	800								800
2019	800								800
Thereafter	5,666								5,666
Rent expense									746	746	746
Minimum [Member]
Leases Lease Terms [Abstract]
Lease term range as Lessor									5 years
Maximum [Member]
Leases Lease Terms [Abstract]
Lease term range as Lessor									25 years
Customer Concentration Risk [Member] | Bloomberg [Member]
Real Estate Properties [Abstract]
Real estate revenue, net (in dollars)									$ 91,109	$ 88,164	$ 86,468
Percentage Of Minimum Revenue Threshold Contributed By One Tenant (in percentage)									10.00%
Customer Concentration Risk [Member] | Bloomberg [Member] | Sales Revenue Services Net [Member]
Real Estate Properties [Abstract]
Percentage Rent Contributed By Tenant, Minimum threshold									45.00%	45.00%	45.00%
Flushing Property [Member]
Lessee [Abstract]
Expiration year									2027
Flushing Property [Member] | Ten Year Extension Option [Member]
Lessee [Abstract]
Number Of Extension Options	1								1
Lease Extension Period Maximum									10 years
731 Lexington Avenue [Member] | Bloomberg [Member]
Real Estate Properties [Abstract]
Area of property (in square feet)												188,608
Lease renewal term												5 years

XML

Related Party Transactions (Details) (USD $)	0 Months Ended	12 Months Ended
	Dec. 22, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Managment and Development Agreement [Abstract]
Property Management and Development Fee agreement		We pay Vornado an annual management fee equal to the sum of (i) $2,800,000, (ii) 2% of gross revenue from the Rego Park II shopping center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $280,000, escalating at 3% per annum, for managing the common area of 731 Lexington Avenue. Vornado is also entitled to a development fee equal to 6% of development costs, as defined. The payment of development fees for the Rego Park II Apartment Tower is due on substantial completion of the construction, as defined.
Leasing Agreement [Abstract]
Leasing service fee payable, description		Vornado also provides us with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2% of rent for the eleventh through the twentieth year of a lease term, and 1% of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants. In the event third-party real estate brokers are used, the fees to Vornado increase by 1% and Vornado is responsible for the fees to the third-party real estate brokers.
Asset Sale Commission Threshold (in US dollars)		$ 50,000,000
Commission payable to Vornado incurred in connection with the sale of real estate		0	0	7,510,000
Kings Plaza Regional Shopping Center [Member]
Summary of fees to Vornado
Property management and leasing fees to Vornado related to Kings Plaza (in US dollars)				2,021,000
Mr. Roth, David Mandelbaum, and Russell B. Wight, Jr.
Related Party Transaction [Line Items]
Ownership Interest in the Company		26.30%
IP & Partners Through Vornado
Related Party Transaction [Line Items]
Ownership Interest in the Company		2.10%
Vornado [member]
Related Party Transaction [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent		32.40%
Managment and Development Agreement [Abstract]
Management Fee Agreement Value (in US dollars)		2,800,000
Leasing Agreement [Abstract]
Percentage Commissions On Sale Of Assets Under Fifty Million		3.00%
Percentage Commissions On Sale Of Assets Over Fifty Million		1.00%
Leasing services fee and commission on asset sale, annual installment, maximum. (in US dollars)	4,000,000
Debt Instrument, Description of Variable Rate Basis		LIBOR
Basis spread over LIBOR		1.00%
Repayment of leasing costs	40,353,000,000
Other Agreements [Abstract]
Other Supervisory Fees		6.00%
Summary of fees to Vornado
Fees to related party (in US dollars)		11,282,000	7,341,000	17,679,000
Vornado [member] | Lexington Avenue Property [Member] | Office And Retail Space [Member]
Managment and Development Agreement [Abstract]
Property Management Fee Agreement Price Per Square Foot		0.5
Vornado [member] | Lexington Avenue Property [Member] | Common Area [Member]
Managment and Development Agreement [Abstract]
Property Management Fee Agreement Value (in US dollars)		280,000
Property Management Fee Escalation Percentage Per Annum		3.00%
Vornado [member] | Rego Park 2 Property [Member]
Managment and Development Agreement [Abstract]
Property Management Fee Agreement Percentage Of Income		2.00%
Vornado [member] | Company Management Fees [Member]
Summary of fees to Vornado
Fees to related party (in US dollars)		2,800,000	2,800,000	2,983,000
Vornado [member] | Development fees [Member]
Managment and Development Agreement [Abstract]
Development fee as percentage of development costs		6.00%
Summary of fees to Vornado
Fees to related party (in US dollars)		3,394,000	0	438,000
Fees owed to Vornado (in US dollars)		3,394,000
Vornado [member] | Leasing Fees [Member]
Leasing Agreement [Abstract]
Lease Fee Percentage Of Rent One To Ten Years		3.00%
Lease Fee Percentage Of Rent Eleven To Twenty Years		2.00%
Lease Fee Percentage Of Rent Twenty First To Thirty Years		1.00%
Percentage Increase Lease Fee If Broker Used		1.00%
Summary of fees to Vornado
Fees to related party (in US dollars)		1,430,000	1,126,000	2,217,000
Fees owed to Vornado (in US dollars)		0
Vornado [member] | Commission On Sale Of Real Estate [Member]
Summary of fees to Vornado
Fees to related party (in US dollars)		0	0	7,510,000
Vornado [member] | Property Management Fees [Member]
Summary of fees to Vornado
Fees to related party (in US dollars)		3,658,000	3,415,000	4,531,000
Fees owed to Vornado (in US dollars)		$ 528,000

XML

Summary of Quarterly Results (Unaudited) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Summary of Quarterly Results [Abstract]
Revenues	$ 51,286	$ 50,077	$ 49,983	$ 49,468	$ 50,496	$ 49,886	$ 47,302	$ 48,775	$ 200,814	$ 196,459	$ 191,312
Net Income Attributable to Common Stockholders	$ 18,161	$ 17,692	$ 16,828	$ 15,244	$ 15,790	$ 13,824	$ 13,139	$ 14,162	$ 67,925	$ 56,915	$ 674,387
Net Income Per Common Share - Basic (in dollars per share)	$ 3.55	$ 3.46	$ 3.29	$ 2.98	$ 3.09	$ 2.71	$ 2.57	$ 2.77
Net Income Per Common Share - Diluted (in dollars per share)	$ 3.55	$ 3.46	$ 3.29	$ 2.98	$ 3.09	$ 2.71	$ 2.57	$ 2.77

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 67,925	$ 56,915	$ 674,993
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including amortization of debt issuance costs	31,919	31,395	36,363
Straight-lining of rental income	(2,538)	(3,707)	(4,475)
Stock-based compensation expense	394	394	300
Reversal of income tax liability	(420)	(206)	0
Net gain on sale of real estate	0	0	(599,628)
Change in operating assets and liabilities:
Tenant and other receivables, net	712	(972)	234
Other assets	(4,334)	(472)	4,318
Amounts due to Vornado	(42,779)	(3,138)	(2,405)
Accounts payable and accrued expenses	(1,373)	(6,284)	(107)
Other liabilities	(19)	(42)	114
Net cash provided by operating activities	49,487	73,883	109,707
CASH FLOWS FROM INVESTING ACTIVITIES
Construction in progress and real estate additions	(61,964)	(7,671)	(7,351)
Purchases of short-term investments	(24,998)	0	0
Restricted cash	5,442	351	(1,626)
Proceeds from sale of real estate	0	0	714,054
Proceeds from maturing short-term investments	0	0	5,000
Net cash (used in) provided by investing activities	(81,520)	(7,320)	710,077
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(317,179)	(15,957)	(265,016)
Proceeds from borrowing	300,000	0	0
Dividends paid, including a special dividend of $623,178 in 2012	(66,436)	(56,197)	(699,791)
Debt issuance costs	(4,255)	(87)	(400)
Acquisition of the noncontrolling interest	0	0	(7,800)
Net cash used in financing activities	(87,870)	(72,241)	(973,007)
Net decrease in cash and cash equivalents	(119,903)	(5,678)	(153,223)
Cash and cash equivalents at beginning of period	347,718	353,396	506,619
Cash and cash equivalents at end of period	227,815	347,718	353,396
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, excluding capitalized interest of $603 in 2014	30,656	42,121	47,932
NON-CASH TRANSACTIONS
Liability for real estate additions included in accounts payable and accrued expenses	13,529	1,084	221
Marketable securities received in connection with the sale of real estate	0	0	30,000
Commission payable to Vornado incurred in connection with the sale of real estate	0	0	7,510
Write-off of fully amortized and/or depreciated assets	$ 10,626	$ 0	$ 648

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Stock- Based Compensation (Details) (USD $)	12 Months Ended			1 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	May 31, 2014
Stock-Based Compensation [Abstract]
Shares available for future grant under the plan	889,735
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expense recognized in connection with the issuance of Deferred Stock Units (in US dollars)	$ 394,000	$ 394,000	$ 300,000
Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Granted Per Director (in shares)				212
Expense recognized in connection with the issuance of Deferred Stock Units (in US dollars)				394,000
Expense per grant recognized in connection with the issuance of Deferred Stock Units (in US dollars)				$ 56,250
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Number	5,005

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Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations [Table Text Block]

		Year Ended December 31,
(Amounts in thousands)			2014		2013		2012
Total revenues		$	-	$	-	$	61,836
Total operating expenses(1)			-		-		31,214
			-		-		30,622
Interest and other income, net			529		2,252		45
Interest and debt expense			-		-		(5,343)
Net gain on sale			-		-		599,628
Income from discontinued operations		$	529	$	2,252	$	624,952
___________________
(1)	Includes fees to Vornado of $1,368 for the year ended December 31, 2012.

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2014

Related party transactions [Abstract]

Summary of Fees to Vornado [Table Text Block]

		Year Ended December 31,
(Amounts in thousands)		2014		2013		2012
Company management fees		$	2,800	$	2,800	$	2,983
Development fees			3,394		-		438
Leasing fees			1,430		1,126		2,217
Commission on sale of real estate			-		-		7,510
Property management fees and payments for cleaning, engineering
	and security services		3,658		3,415		4,531
		$	11,282	$	7,341	$	17,679

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Commitments and Contingencies (Details) (USD $)	12 Months Ended				0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2021	Jun. 24, 2014 Fires	Dec. 31, 2001 acre	Jan. 01, 2016
Rego Park 2 Property [Abstract]
Development and construction in progress	$ 75,289,000	$ 4,924,000
Paramus Property [Abstract]
Mortgages payable	1,032,780,000	1,049,959,000
Purchase option excercised, gain on sale of land	0	0	599,628,000
Letters Of Credit [Abstract]
Standby letters of credit, issued and outstanding	3,308,000
Lexington Avenue Property [Member] | Retail Space [Member]
Insurance [Abstract]
Mortgage loans, recourse	75,000,000
Paramus Property [Abstract]
Mortgages payable	320,000,000
Paramus Property [Member] | Tenant Occupant [Member]
Paramus Property [Abstract]
Debt Instrument Maturity Date String	October 2018
Paramus Property [Member] | Tenant Occupant [Member] | Ikea [Member]
Paramus Property [Abstract]
Area Of Land (in acre)						30.3
Mortgages payable	68,000,000
Fixed interest rate on the debt (in percentage)	2.90%
Triple-net rent, annual amount	700,000
Paramus Property [Member] | Tenant Occupant [Member] | Ikea [Member] | Scenario Forecast [Member]
Paramus Property [Abstract]
Property purchase option exercisable be leasee with purchase option in 2021				75,000,000
Purchase option exercised, net cash proceeds from sale of land				7,000,000
Purchase option excercised, gain on sale of land				60,000,000
Purchase option not excercised amount included in triple net rent over remainder of lease				68,000,000
Loan Amortization Period				20 years
Rego Park I [Member] | Sears [Member]
Loss Contingency [Abstract]
Number Of Fires					2
Rego Park I [Member] | Sears [Member] | Minimum [Member]
Loss Contingency [Abstract]
Loss Contingency, Damages Sought, Value					4,000,000
Rego Park I [Member] | Sears [Member] | Minimum [Member] | Estimated Future Damages [Member]
Loss Contingency [Abstract]
Loss Contingency, Damages Sought, Value					25,000,000
Rego Park 2 Property [Member] | Apartment Tower [Member] | Property Under Development [Member]
Rego Park 2 Property [Abstract]
Number of units in apartment tower (in units)	312
Area of property (in square feet)	255,000
Estimated Date Of Completion	2015
Development and construction in progress	73,327,000
Rego Park 2 Property [Member] | Maximum [Member] | Apartment Tower [Member] | Property Under Development [Member]
Rego Park 2 Property [Abstract]
Estimated Budgeted Cost	125,000,000
General Liability [Member]
Insurance [Abstract]
Insurance Maximum Coverage Per Incident	300,000,000
All Risk Property And Rental Value [Member]
Insurance [Abstract]
Insurance Maximum Coverage Per Incident	1,700,000,000
Terrorism Coverage Including Nbcr [Member]
Insurance [Abstract]
Insurance Maximum Coverage Per Incident	1,700,000,000
Reinsurance For Terrorism Coverage Excluding Nbcr [Member]
Insurance [Abstract]
Insurance Maximum Coverage Per Incident	1,700,000,000
NBCR [Member]
Insurance [Abstract]
Deductible	$ 275,000
Self Insured Responsibility (in percentage)	15.00%
Federal Government Responsibility (in percentage)	85.00%
NBCR [Member] | Scenario Forecast [Member]
Insurance [Abstract]
Self Insured Responsibility (in percentage)							16.00%
Federal Government Responsibility (in percentage)							84.00%

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Mortgages Payable (Tables)

12 Months Ended

Dec. 31, 2014

Mortgages Payable [Abstract]

Summary of Notes and Mortgages Payable [Table Text Block]

			Interest Rate at		Balance at December 31,
(Amounts in thousands)		Maturity(1)	December 31, 2014		2014		2013
First mortgages secured by:
	Rego Park I shopping center (100% cash	Mar. 2015	0.40	%	$	78,246	$	78,246
	collateralized)
	731 Lexington Avenue, retail space(2)	Jul. 2015	4.93	%		320,000		320,000
	Paramus	Oct. 2018	2.90	%		68,000		68,000
	Rego Park II shopping center(3)	Nov. 2018	2.02	%		266,534		269,496
	731 Lexington Avenue, office space(4)	Mar. 2021	1.11	%		300,000		314,217
					$	1,032,780	$	1,049,959
___________________
(1)	Represents the extended maturity where we have the unilateral right to extend.
(2)	In the event of a substantial casualty, as defined, up to $75,000 of this loan may become recourse to us.
(3)	This loan bears interest at LIBOR plus 1.85%.
(4)	This loan bears interest at LIBOR plus 0.95%.

Schedule of Maturities of Long-term Debt [Table Text Block]

(Amounts in thousands)
Year Ending December 31,	Amount
2015	$	401,439
2016		3,440
2017		3,707
2018		324,194
2019		-
Thereafter		300,000

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Measurements [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

		As of December 31, 2014
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	44,646	$	44,646	$	-	$	-
	Short-term investments		24,998		24,998		-		-
	Interest rate cap (included in other assets)		11		-		11		-
	Total assets	$	69,655	$	69,644	$	11	$	-
		As of December 31, 2013
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	31,522	$	31,522	$	-	$	-

Fair Value, by Balance Sheet Grouping [Table Text Block]

			As of December 31, 2014				As of December 31, 2013
			Carrying		Fair		Carrying		Fair
(Amounts in thousands)			Amount		Value		Amount		Value
Assets:
	Cash equivalents	$	111,590	$	111,590	$	184,796	$	184,796
Liabilities:
	Mortgages payable	$	1,032,780	$	1,025,000	$	1,049,959	$	1,072,000
	Leasing commissions (included in Amounts due to Vornado)		-		-		42,924		43,000
		$	1,032,780	$	1,025,000	$	1,092,883	$	1,115,000

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Consolidated Statement of Changes in Equity (Parentheticals) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Statement of Stockholders' Equity [Abstract]
Special long-term capital gain dividend	$ 623,178

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Leases (Tables)

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

Schedule Of Future Minimum Payments Receivable For Operating Leases [Table Text Block]

(Amounts in thousands)
Year Ending December 31,	Amount
2015	$	127,877
2016		119,741
2017		121,079
2018		121,111
2019		118,537
Thereafter		903,901

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

(Amounts in thousands)
Year Ending December 31,	Amount
2015	$	700
2016		700
2017		792
2018		800
2019		800
Thereafter		5,666

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Mortgages Payable (Details) (USD $)	0 Months Ended	12 Months Ended
	Feb. 28, 2014 Extensions	Dec. 31, 2014	Dec. 31, 2013
Mortgage Loans on Real Estate [Line Items]
Notes Payable		$ 1,032,780,000	$ 1,049,959,000
Net carrying value of real estate collaterizing the debt		706,791,000
Repayments of Long-term Debt [Abstract]
2015		401,439,000
2016		3,440,000
2017		3,707,000
2018		324,194,000
2019		0
Thereafter		300,000,000
Rego Park 1 Shopping [Member]
Mortgage Loans on Real Estate [Line Items]
Percentage of cash mortgage collateralized		100.00%
Rego Park 1 Shopping [Member] | Mortgages [Member] | Secured [Member]
Mortgage Loans on Real Estate [Line Items]
Debt Instrument Maturity Date String		2015-03
Interest rate (in percentage)		0.40%
Notes Payable		78,246,000	78,246,000
Rego Park 2 Property [Member] | Mortgages [Member] | Secured [Member]
Mortgage Loans on Real Estate [Line Items]
Debt Instrument Maturity Date String		2018-11
Interest rate (in percentage)		2.02%
Notes Payable		266,534,000	269,496,000
Basis spread over LIBOR (in percentage)		1.85%
Lexington Avenue Property [Member] | Retail Space [Member]
Mortgage Loans on Real Estate [Line Items]
Notes Payable		320,000,000
Mortgage Loan Converted To Recourse		75,000,000
Lexington Avenue Property [Member] | Mortgages [Member] | Secured [Member] | Office Space [Member]
Mortgage Loans on Real Estate [Line Items]
Debt Instrument Maturity Date String	2017-03	2021-03
Interest rate (in percentage)		1.11%
Notes Payable		300,000,000	314,217,000
Basis spread over LIBOR (in percentage)	0.95%
Proceeds from (Repayments of) Debt	300,000,000
Number Of Extensions Available	4
Length Of Extension Available	1 year
Derivative Liability Notional Amount	300,000,000
Derivative cap interest rate, LIBOR	6.00%
Lexington Avenue Property [Member] | Mortgages [Member] | Secured [Member] | Retail Space [Member]
Mortgage Loans on Real Estate [Line Items]
Debt Instrument Maturity Date String		2015-07
Interest rate (in percentage)		4.93%
Notes Payable		320,000,000	320,000,000
Lexington Avenue Property [Member] | Mortgages [Member] | Secured [Member] | Retail Space [Member] | Maximum [Member]
Mortgage Loans on Real Estate [Line Items]
Mortgage Loan Converted To Recourse		75,000,000
Paramus Property [Member] | Mortgages [Member] | Secured [Member]
Mortgage Loans on Real Estate [Line Items]
Debt Instrument Maturity Date String		2018-10
Interest rate (in percentage)		2.90%
Notes Payable		$ 68,000,000	$ 68,000,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Real estate, at cost:
Land	$ 44,971	$ 44,971
Buildings and leasehold improvements	873,667	869,681
Development and construction in progress	75,289	4,924
Total	993,927	919,576
Accumulated depreciation and amortization	(210,025)	(185,375)
Real estate, net	783,902	734,201
Cash and cash equivalents	227,815	347,718
Short-term investments	24,998	0
Restricted cash	84,602	90,044
Marketable securities	44,646	31,522
Tenant and other receivables, net of allowance for doubtful accounts of $1,544 and $1,993, respectively	2,213	2,925
Receivable arising from the straight-lining of rents	179,939	177,401
Deferred lease and other property costs, net, including unamortized leasing fees to Vornado of $33,974 and $36,728, respectively	46,561	50,273
Deferred debt issuance costs, net of accumulated amortization of $11,295 and $19,187, respectively	4,824	3,246
Other assets	23,716	20,394
Total assets	1,423,216	1,457,724
Liabilities and Equity
Mortgages payable	1,032,780	1,049,959
Amounts due to Vornado	3,922	43,307
Accounts payable and accrued expenses	35,127	27,450
Other liabilities	2,988	3,427
Total liabilities	1,074,817	1,124,143
Commitments and contingencies
Preferred stock: $1.00 par value per share; authorized, 3,000,000 shares; issued and outstanding, none	0	0
Common stock: $1.00 par value per share; authorized, 10,000,000 shares; issued, 5,173,450 shares; outstanding, 5,106,196 shares	5,173	5,173
Additional capital	30,139	29,745
Retained earnings	299,004	297,515
Accumulated other comprehensive income	14,457	1,522
Equity before treasury stock	348,773	333,955
Treasury stock: 67,254 shares, at cost	(374)	(374)
Total equity	348,399	333,581
Total liabilities and equity	$ 1,423,216	$ 1,457,724

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Multiemployer Benefit Plans (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Multiemployer Plans [Line Items]
Multiemployer Plans Period Contributions Significance Of Contributions	false
Multiemployer Pension Plans [Member]
Multiemployer Plans [Line Items]
Multiemployer Plan, Period Contributions	$ 144	$ 138	$ 196
Multiemployer plan period contributions from discontinuing operations			61
Multiemployer Health Plans [Member]
Multiemployer Plans [Line Items]
Multiemployer Plan, Period Contributions	533	499	734
Multiemployer plan period contributions from discontinuing operations			$ 250

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
Net income	$ 67,925	$ 56,915	$ 674,993
Other comprehensive income:
Change in unrealized net gain on available-for-sale securities	13,124	316	1,206
Change in value of interest rate cap	(189)
Comprehensive income	80,860	57,231	676,199
Less comprehensive income attributable to the noncontrolling interest	0	0	(606)
Comprehensive income attributable to Alexander's	$ 80,860	$ 57,231	$ 675,593

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Organization (Details) (USD $)	12 Months Ended
	Dec. 31, 2014 Segment property	Dec. 31, 2013	Dec. 31, 2001 acre
Operating Properties [Abstract]
Number of properties in greater New York City metropolitan area (in property)	6
Development and construction in progress	$ 75,289,000	$ 4,924,000
Number Of Operating Segments	1
731 Lexington Avenue [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	1,307,000
731 Lexington Avenue [Member] | Office Space [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	885,000
731 Lexington Avenue [Member] | Office Space [Member] | Tenant Occupant [Member] | Bloomberg [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	885,000
731 Lexington Avenue [Member] | Retail Space [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	174,000
731 Lexington Avenue [Member] | Retail Space [Member] | Tenant Occupant [Member] | Container Store [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	34,000
731 Lexington Avenue [Member] | Retail Space [Member] | Tenant Occupant [Member] | Hennes Mauritz [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	27,000
731 Lexington Avenue [Member] | Retail Space [Member] | Tenant Occupant [Member] | Home Depot [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	83,000
731 Lexington Avenue [Member] | Residential Space [Member] | Operating Property [Member]
Operating Properties [Abstract]
Number of units in real estate property (in units)	105
Area of property (in square feet)	248,000
Rego Park I [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	343,000
Rego Park I [Member] | Tenant Occupant [Member] | Burlington Coat Factory [Member] | Anchor [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	50,000
Rego Park I [Member] | Tenant Occupant [Member] | Marshalls [Member] | Anchor [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	36,000
Rego Park I [Member] | Tenant Occupant [Member] | Bed Bath Beyond [Member] | Anchor [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	46,000
Rego Park I [Member] | Tenant Occupant [Member] | Sears [Member] | Anchor [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	195,000
Rego Park II [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	609,000
Rego Park II [Member] | Tenant Occupant [Member] | Toys R Us/ Babys R Us [Member] | Anchor [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	47,000
Rego Park II [Member] | Tenant Occupant [Member] | Kohls [Member] | Anchor [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	133,000
Rego Park II [Member] | Tenant Occupant [Member] | Century 21 [Member] | Anchor [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	135,000
Rego Park II [Member] | Tenant Occupant [Member] | Costco [Member] | Anchor [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	145,000
Rego Park II [Member] | Apartment Tower [Member] | Property Under Development [Member]
Operating Properties [Abstract]
Number of units in real estate property (in units)	312
Area of property (in square feet)	255,000
Estimated Date Of Completion	2015
Development and construction in progress	73,327,000
Rego Park II [Member] | Apartment Tower [Member] | Maximum [Member] | Property Under Development [Member]
Operating Properties [Abstract]
Estimated Budgeted Cost	$ 125,000,000
Paramus [Member] | Tenant Occupant [Member] | Ikea [Member]
Operating Properties [Abstract]
Area Of Land (in acre)			30.3
Paramus [Member] | Tenant Occupant [Member] | Ikea [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area Of Land (in acre)	30.3
Flushing [Member] | Tenant Occupant [Member] | New World Mall Llc [Member] | Operating Property [Member]
Operating Properties [Abstract]
Area of property (in square feet)	167,000
Rego Park III [Member] | Property To Be Developed [Member]
Operating Properties [Abstract]
Area Of Land (in acre)	3.2

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Earnings Per Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

12.       EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted income per share, including a reconciliation of net income and the number of shares used in computing basic and diluted income per share. Basic income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period, and assumes all potentially dilutive securities were converted into common shares at the earliest date possible. There were no potentially dilutive securities outstanding during the years ended December 31, 2014, 2013 and 2012.

			For the Year Ended December 31,
(Amounts in thousands, except share and per share amounts)			2014		2013		2012
	Income from continuing operations		$	67,396	$	54,663	$	50,041
	Income from discontinued operations, net of income attributable to
		the noncontrolling interest		529		2,252		624,346
	Net income attributable to common stockholders – basic and diluted		$	67,925	$	56,915	$	674,387
	Weighted average shares outstanding – basic and diluted			5,110,628		5,109,055		5,107,610
	Income from continuing operations		$	13.19	$	10.70	$	9.80
	Income from discontinued operations, net			0.10		0.44		122.24
	Net income per common share – basic and diluted		$	13.29	$	11.14	$	132.04

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Significant Accounting Policies (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash and Cash Equivalents [Abstract]
Cash And Cash Equivalent Maturity Maximum									3 months
Allowance For Doubtful Accounts [Abstract]
Allowance for doubtful accounts (in US dollars)	$ 1,544				$ 1,993				$ 1,544	$ 1,993
Tax Treatment Of Dividend [Line Items]
Real Estate Investment Trust Distributable Income Policy (in percentage)									90.00%
Internal Taxable Income Distribution Policy (in percentage)									100.00%
Differences Between Book and Tax Basis	204,815								204,815
Reconciliation of Net Income to Estimated Taxable Income [Abstract]
Net income attributable to Alexander's	18,161	17,692	16,828	15,244	15,790	13,824	13,139	14,162	67,925	56,915	674,387
Straight-line rent adjustments									(2,538)	(3,707)	(4,475)
Depreciation and amortization timing differences									2,283	2,134	910
Interest expense									10	27	29
Reversal of income tax liability									(420)	(206)	0
Additional tax gain on sale of the Kings Plaza Regional Shopping Center									(357)	0	23,928
Other									1,112	(2,213)	4,396
Estimated taxable income									$ 68,015	$ 52,950	$ 699,175
Maximum [Member]
Real Estate Properties [Line Items]
Property plant and equipment estimated useful lives									40 Years
Minimum [Member]
Real Estate Properties [Line Items]
Property plant and equipment estimated useful lives									3 Years
Rego Park I [Member]
Real Estate Properties [Line Items]
Percentage of cash mortgage collateralized	100.00%								100.00%

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Schedule II: Valuation and Qualifying accounts

12 Months Ended

Dec. 31, 2014

Valuation and Qualifying Accounts [Abstract]

Schedule II: Valuation and Qualifying Accounts [Text Block]

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
(Amounts in thousands)
	Column A		Column B		Column C		Column D		Column E
					Additions:		Deductions:
			Balance at		Charged		Uncollectible		Balance
			Beginning		Against		Accounts		at End
	Description		of Year		Operations		Written Off		of Year
	Allowance for doubtful accounts:
		Year Ended December 31, 2014	$	1,993	$	705	$	(1,154)	$	1,544
		Year Ended December 31, 2013	$	2,219	$	348	$	(574)	$	1,993
		Year Ended December 31, 2012	$	1,039	$	1,304	$	(124)	$	2,219

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Consolidated Statement of Changes in Equity (USD $) In Thousands, except Share data	Total	Common Stock	Additional Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock	Non-controlling Interest
Opening Balance, at Dec. 31, 2011	$ 363,245	$ 5,173	$ 31,801	$ 322,201	$ 0	$ (375)	$ 4,445
Shares Issued, Beginning Balance (in shares) at Dec. 31, 2011		5,173,000
Net income	674,993			674,387			606
Dividends paid	(699,791)			(699,791)
Acquisition of the noncontrolling interest	(7,800)		(2,749)				(5,051)
Change in unrealized net gain on available-for-sale securities	1,206				1,206
Deferred stock unit grant	300		300
Closing Balance, at Dec. 31, 2012	332,153	5,173	29,352	296,797	1,206	(375)	0
Shares Issued, Ending Balance (in shares) at Dec. 31, 2012		5,173,000
Net income	56,915			56,915			0
Dividends paid	(56,197)			(56,197)
Change in unrealized net gain on available-for-sale securities	316				316
Deferred stock unit grant	394		394
Other	0		(1)			1
Balance, at Dec. 31, 2013	333,581	5,173	29,745	297,515	1,522	(374)	0
Shares Issued, Ending Balance (in shares) at Dec. 31, 2013	5,173,450	5,173,000
Net income	67,925			67,925			0
Dividends paid	(66,436)			(66,436)
Change in unrealized net gain on available-for-sale securities	13,124				13,124
Change in value of interest rate cap	(189)				(189)
Deferred stock unit grant	394		394
Balance, at Dec. 31, 2014	$ 348,399	$ 5,173	$ 30,139	$ 299,004	$ 14,457	$ (374)	$ 0
Shares Issued, Ending Balance (in shares) at Dec. 31, 2014	5,173,450	5,173,000

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Consolidated Balance Sheets (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Assets
Allowance for doubtful accounts (in US dollars)	$ 1,544	$ 1,993
Unamortized leasing fees to Vornado (in US dollars)	33,974	36,728
Deferred debt issuance costs, accumulated amortization (in US dollars)	$ 11,295	$ 19,187
Statement [Line Items]
Preferred stock: par value per share (in dollars per share)	$ 1.00	$ 1.00
Preferred stock: authorized shares	3,000,000	3,000,000
Preferred stock: issued shares	0	0
Preferred stock: outstanding shares	0	0
Common stock: par value per share (in dollars per share)	$ 1.00	$ 1.00
Common stock: authorized shares	10,000,000	10,000,000
Common stock: issued shares	5,173,450	5,173,450
Common stock: outstanding shares	5,106,196	5,106,196
Treasury stock: shares	67,254	67,254

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Fair Value Measurements

12 Months Ended

Dec. 31, 2014

Fair Value Measurements [Abstract]

Fair Value Measurements [Text Block]

7.       FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value.

Financial Assets and Liabilities Measured at Fair Value

Financial assets measured at fair value on our consolidated balance sheets at December 31, 2014 and 2013 consists of marketable securities, short-term investments (treasury bills classified as available-for-sale) and an interest rate cap, which are presented in the table below, based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value at December 31, 2014 and 2013.

		As of December 31, 2014
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	44,646	$	44,646	$	-	$	-
	Short-term investments		24,998		24,998		-		-
	Interest rate cap (included in other assets)		11		-		11		-
	Total assets	$	69,655	$	69,644	$	11	$	-
		As of December 31, 2013
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	31,522	$	31,522	$	-	$	-

Financial Assets and Liabilities not Measured at Fair Value

Financial assets andliabilities that are not measured at fair value on our consolidated balance sheetsinclude cash equivalents, mortgages payable and leasing commissions due to Vornado.Cash equivalentsare carried at cost, which approximates fair value due to their short-term maturities.The fair value of our mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist.The leasing commissions due to Vornado are carried at cost plus interest at variable rates, which approximate fair value. The fair value of cash equivalents is classified as Level 1 and the fair value of mortgages payable and leasing commissions due to Vornadois classified as Level 2.The table below summarizes the carrying amounts and fair value of these financial instruments as of December 31, 2014 and 2013.

			As of December 31, 2014				As of December 31, 2013
			Carrying		Fair		Carrying		Fair
(Amounts in thousands)			Amount		Value		Amount		Value
Assets:
	Cash equivalents	$	111,590	$	111,590	$	184,796	$	184,796
Liabilities:
	Mortgages payable	$	1,032,780	$	1,025,000	$	1,049,959	$	1,072,000
	Leasing commissions (included in Amounts due to Vornado)		-		-		42,924		43,000
		$	1,032,780	$	1,025,000	$	1,092,883	$	1,115,000

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Document and Entity Information (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Jan. 31, 2015	Jun. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	ALEXANDERS INC
Entity Central Index Key	0000003499
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		5,106,196
Entity Public Float			$ 779,918
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Trading Symbol	alx

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Leases

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

Leases [Text Block]

8.       LEASES

As Lessor

We lease space to tenants in an office building and in retail centers. The rental terms range from approximately 5 to 25 years. The leases provide for the payment of fixed base rents payable monthly in advance as well as reimbursements of real estate taxes, insurance and maintenance costs. Retail leases may also provide for the payment by the lessee of additional rents based on a percentage of their sales.

Future base rental revenue under these non-cancelable operating leases is as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2015	$	127,877
2016		119,741
2017		121,079
2018		121,111
2019		118,537
Thereafter		903,901

These future minimum amounts do not include additional rents based on a percentage of tenants' sales. For the years ended December 31, 2014, 2013, and 2012, these rents were $108,000, $416,000, and $416,000, respectively.

Bloomberg accounted for $91,109,000, $88,164,000 and $86,468,000, or4,500% of our totalrevenues in each of the years ended December 31, 2014, 2013 and 2012, respectively. No other tenant accounted for more than 10% of our totalrevenues in any of the last three years. If we were to lose Bloomberg as a tenant, or if Bloomberg were to fail or become unable to perform its obligations under its lease, it would adversely affect our results of operations and financial condition. We receive and evaluate certain confidential financial information and metrics from Bloomberg on a semi-annual basis. In addition, we access and evaluate financial information regarding Bloomberg from private sources, as well as publicly available data.

In October 2014, Bloomberg exercised its option to extend leases that were scheduled to expire in December 2015 covering 188,608 square feet of office space at our 731 Lexington Avenue property for a term of 5 years. We are currently in negotiations with Bloomberg to determine the rental rate for the extension period.

As Lessee

We are a tenant undera long-term ground lease at our Flushing property, which expires in 2027 and has one 10-year extension option. Future lease payments under this operating lease, excluding the extension option, are as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2015	$	700
2016		700
2017		792
2018		800
2019		800
Thereafter		5,666

Rent expense was $746,000 in each of the years ended December 31, 2014, 2013 and 2012.

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Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
REVENUES
Property rentals	$ 136,628	$ 135,908	$ 134,847
Expense reimbursements	64,186	60,551	56,465
Total revenues	200,814	196,459	191,312
EXPENSES
Operating, including fees to Vornado of $4,516, $4,196, and $4,318, respectively	69,897	64,930	61,755
Depreciation and amortization	29,196	28,987	28,815
General and administrative, including management fees to Vornado of $2,380, $2,380 and $2,160, respectively	5,032	5,026	5,162
Total expenses	104,125	98,943	95,732
OPERATING INCOME	96,689	97,516	95,580
Interest and other income, net	2,434	1,527	177
Interest and debt expense	(32,068)	(44,540)	(45,652)
Income before income taxes	67,055	54,503	50,105
Income tax benefit (expense)	341	160	(64)
Income from continuing operations	67,396	54,663	50,041
Income from discontinued operations, including a $599,628 net gain on sale of real estate in 2012	529	2,252	624,952
Net income	67,925	56,915	674,993
Net income attributable to the noncontrolling interest	0	0	(606)
Net income attributable to Alexander's	$ 67,925	$ 56,915	$ 674,387
Income per common share- basic and diluted:
Income from continuing operations (in dollars per share)	$ 13.19	$ 10.70	$ 9.80
Income from discontinued operations, net (in dollars per share)	$ 0.10	$ 0.44	$ 122.24
Net income per common share- basic and diluted (in dollars per share)	$ 13.29	$ 11.14	$ 132.04
Weighted average shares outstanding (in shares)	5,110,628	5,109,055	5,107,610

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies [Text Block]

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation – The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Certain prior year balances have been reclassified in order to conform to current year presentation.

Recently Issued Accounting Literature–In April 2014, the Financial Accounting Standards Board (“FASB”) issued an update (“ASU 2014-08”) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity to Accounting Standards Codification (“ASC”) Topic 205, Presentation of Financial Statements and ASC Topic 360, Property Plant and Equipment. Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity's results and operations would qualify as discontinued operations. In addition, ASU 2014-08 expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals for individually significant components that do not meet the definition of discontinued operations. ASU 2014-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2014. The adoption of this update on January 1, 2015 is not expected to have any impact on our consolidated financial statements.

In May 2014, the FASB issued an update (“ASU 2014-09”) establishing ASC Topic 606,Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2016. We are currently evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements.

Real Estate – Real estate is carried at cost, net of accumulated depreciation and amortization. Maintenance and repairs are expensed as incurred. Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. As real estate is undergoing development activities, all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense, are capitalized to the cost of the real property to the extent that we believe such costs are recoverable through the value of the property. The capitalization period begins when development activities are underway and ends when the project is substantially complete. General and administrative costs are expensed as incurred. Depreciation is recognized on a straight-line basis over estimated useful lives, which range from 3 to 40 years. Tenant allowances are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets.

Our properties and related intangible assets, including properties to be developed in the future and currently under development, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset. An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property's carrying amount over its estimated fair value. If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates fair value, due to their short-term maturities. The majority of our cash and cash equivalents consist of (i) deposits at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit, (ii) United States Treasury Bills, (iii) money market funds, which invest in United States Treasury Bills and(iv) certificates of deposit placed through an account registry service (“CDARS”). To date we have not experienced any losses on our invested cash.

Short-term Investments – Short-term investments consist of United States Treasury Bills with original maturities greater than three but less than six months. These highly liquid investments are classified as available-for-sale and are presented at fair value on our consolidated balance sheets. Unrealized gains and losses resulting from these investments are included in “other comprehensive income” and are recognized in earnings only upon the expiration of the investments.

Restricted Cash –Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements.

Marketable Securities – Our marketable securities consist of common shares of The Macerich Company (NYSE: MAC) (“Macerich”), which are classified as available-for-sale. Available-for-sale securities are presented at fair value on our consolidated balance sheets. Unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income” and are recognized in earnings only upon the sale of the securities. We evaluate our marketable securities for impairment at the end of each reporting period. If investments have unrealized losses, we evaluate the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline. In our evaluation, we consider our ability and intent to hold our investment for a reasonable period of time sufficient for us to recover our cost basis, as well as the near-term prospects for the investment in relation to the severity and duration of the decline.

Allowance for Doubtful Accounts– We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,544,000and $1,993,000 as of December 31, 2014 and 2013, respectively) for the estimated losses resulting from the inability of tenants to make required payments under the lease agreements. We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.

Deferred Charges – Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense. Direct costs related to leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases. All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate.

Revenue Recognition – We have the following revenue sources and revenue recognition policies:

Base Rent– revenue arising from tenant leases. These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.

Percentage Rent– revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds. These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).

Expense Reimbursements– revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties. This revenue is accrued in the same periods as the expenses are incurred.

Parking Income– revenue arising from the rental of parking space at our properties. This income is recognized as cash is received.

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Income Taxes – We operate in a manner intended to enable us to continue to qualify as a Real Estate Investment Trust (“REIT”) under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year. We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required. Dividends distributed for the years ended December 31, 2014 and 2013were categorized, for federal income tax purposes, as ordinary income.

The following table reconciles our net income to estimated taxable incomefor the years ended December 31, 2014, 2013 and 2012.

(Unaudited and in thousands)		Year Ended December 31,
		2014		2013		2012
Net income attributable to Alexander’s		$	67,925	$	56,915	$	674,387
Straight-line rent adjustments			(2,538)		(3,707)		(4,475)
Depreciation and amortization timing differences			2,283		2,134		910
Interest expense			10		27		29
Reversal of liability for income taxes			(420)		(206)		-
Additional tax gain on sale of the Kings Plaza
	Regional Shopping Center		(357)		-		23,928
Other			1,112		(2,213)		4,396
Estimated taxable income		$	68,015	$	52,950	$	699,175

At December 31, 2014, the net basis of our assets and liabilities for tax purposes are approximately $204,815,000 lower than the amount reported for financial statement purposes.

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Organization

12 Months Ended

Dec. 31, 2014

Organization and Basis of Presentation [Abstract]

Organization [Text Block]

1.       ORGANIZATION

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 six properties in the greater New York City metropolitan area consisting of:

Operating properties

• 731 Lexington Avenue, a 1,307,000 square foot multi-use building, comprising the entire square block bounded by Lexington Avenue, East 59th Street, Third Avenue and East 58th Street in Manhattan. The building contains 885,000 and 174,000 of netrentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold. Bloomberg L.P. (“Bloomberg”) occupies all of the office space. The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants;
• Rego Park I, a343,000 square foot shopping center,located on Queens Boulevard and 63rd Road in Queens. The center is anchored by a 195,000 square foot Sears department store, a 50,000 square foot Burlington Coat Factory, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls;
• Rego Park II, a 609,000 square foot shopping center, adjacent to theRego Park I shopping center in Queens. Thecenter is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl's. In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado;
• Paramus, located at the intersection of Routes 4 and 17 in Paramus, New Jersey, consists of 30.3 acres of land that is leased to IKEA Property, Inc.; and
• Flushing, a 167,000 square foot building, located at Roosevelt Avenue and Main Street in Queens, that is sub-leased to New World Mall LLC for the remainder of our ground lease term.

  Propertyunder development

• Rego Park II Apartment Tower; We are in the process of constructing an apartment tower above our Rego II shopping center, containing 312 units aggregating 255,000 square feet, which is expected to be completed in 2015.The estimatedcostof this project is approximately$125,000,000, of which $73,327,000 has been incurred as of December 31, 2014. There can be no assurance that the project will be completed, or completed on schedule or within budget.

Property to be developed

• Rego Park III, a 3.2 acre land parcel adjacent to theRego Park II shopping center in Queens, at the intersection of Junction Boulevard and the Horace Harding Service Road.

We have determined that our properties have similar economic characteristics and meet the criteria that permit the properties to be aggregated into one reportable segment (the leasing, management, development and redeveloping of properties in the greater New York City metropolitan area). Our chief operating decision-maker assesses and measures segment operating results based on a performance measure referred to as net operating income at the individual operating segment. Net operating income for each property represents net rental revenues less operating expenses.

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Summary of Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2014

Summary of Quarterly Results [Abstract]

Summary of Quarterly Results (Unaudited) [Text Block]

13.       SUMMARY OF QUARTERLY RESULTS (UNAUDITED)

					Net Income
					Attributable to		Net Income Per
					Common		Common Share(1)
	(Amounts in thousands, except per share amounts)		Revenues		Stockholders		Basic		Diluted
	2014
		December 31	$	51,286	$	18,161	$	3.55	$	3.55
		September 30		50,077		17,692		3.46		3.46
		June 30		49,983		16,828		3.29		3.29
		March 31		49,468		15,244		2.98		2.98
	2013
		December 31	$	50,496	$	15,790	$	3.09	$	3.09
		September 30		49,886		13,824		2.71		2.71
		June 30		47,302		13,139		2.57		2.57
		March 31		48,775		14,162		2.77		2.77
_______________________
(1)	The total for the year may differ from the sum of the quarters as a result of weighting.

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2014

Stock-Based Compensation [Abstract]

Stock-Based Compensation [Text Block]

9.       STOCK-BASED COMPENSATION

Our Omnibus Stock Plan (the “Plan”) provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, deferred stock units(“DSUs”) and performance shares, as defined, to the directors, officers and employees of the Company and Vornado, and any other person or entity as designated by the Omnibus Stock Plan Committee of our Board of Directors. As of December 31, 2014, there were 5,005 DSUs outstandingand 889,735 shares were available for future grant. We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation.

In May 2014, we granted each of the members of our Board of Directors 212 DSUs with a grant date fair value of $56,250 per grant, or $394,000 in the aggregate. The DSUs entitle the holder to receive shares of our common stock without the payment of any consideration. The DSUs vested immediately and accordingly were expensed on the date of grant, but the shares of common stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Company's Board of Directors.

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Marketable Securities

12 Months Ended

Dec. 31, 2014

Marketable Securities [Abstract]

Marketable Securities [Text Block]

5.MARKETABLE SECURITIES

As of December 31, 2014 and 2013, we owned 535,265 Macerich common shares, which were receivedin connection withthe sale of Kings Plazato Macerich. These shares have an economic cost of $56.05 per share, or $30,000,000 in the aggregate. As of December 31, 2014 and 2013, the fair value of these shares were $44,646,000and $31,522,000, respectively, based on Macerich's closing share price of $83.41per share and $58.89 per share, respectively. These shares are included in “marketable securities” on our consolidated balance sheets and are classified as available-for-sale. Available-for-sale securities are presented at fair value and unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income.”Other comprehensive income includes unrealized gains of $13,124,000 and $316,000 for the years ended December 31, 2014 and 2013, respectively.

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Related Party Transactions

12 Months Ended

Dec. 31, 2014

Related party transactions [Abstract]

Related Party Transactions [Text Block]

3.       RELATED PARTY TRANSACTIONS

Vornado

At December 31, 2014, Vornadoowned 32.4% of our outstanding common stock. We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable.

Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (“Interstate”), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado. At December 31, 2014, Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.3% of our outstanding common stock, in addition to the 2.1% they indirectly own through Vornado. Joseph Macnow, our Executive Vice Presidentand Chief Financial Officer, is the Executive Vice President – Finance and Chief Administrative Officer ofVornado.Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornado.

Management and Development Agreements

We pay Vornado an annual management fee equal to the sum of (i) $2,800,000, (ii) 2% of gross revenue from the Rego Park II shopping center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $280,000, escalating at 3% per annum, for managing the common area of 731 Lexington Avenue.Vornado is also entitled to a development fee equal to 6% of development costs, as defined.The payment of development fees for the Rego Park II Apartment Tower is due on substantial completion of the construction, as defined.

Leasing Agreements

Vornado also provides us with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2% of rent for the eleventh through the twentieth year of a lease term, and 1% of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants. In the event third-party real estate brokers are used, the fees to Vornado increase by 1% and Vornado is responsible for the fees to the third-party real estate brokers.Vornado is also entitled to a commission upon the sale of any of our assets equal to 3% of gross proceeds, as defined, for asset sales less than $50,000,000 and 1% of gross proceeds, as defined, for asset sales of $50,000,000 or more. Prior to December 22, 2014, the total of these amounts was payable in annual installments in an amount not to exceed $4,000,000, with interest on the unpaid balance at one-year LIBOR plus 1.0%.On December 22, 2014, the leasing agreements with Vornado were amended to eliminate the annual installment cap of $4,000,000.In addition, we paid the accrued balance of leasing commissions of $40,353,000 to Vornado.

Other Agreements

We also have agreements with Building Maintenance Services, a wholly owned subsidiary of Vornado, to supervise (i) cleaning, engineering and security services at our Lexington Avenue propertyand (ii) security services at our Rego Park I and Rego Park II properties, for an annual fee of the cost for such services plus 6%.

3.       RELATED PARTY TRANSACTIONS – continued

The following is a summary of fees to Vornado under the agreements discussed above, and includes $2,021,000 of property management and leasing fees for the year ended December 31, 2012, related to the Kings Plaza Regional Shopping Center (“Kings Plaza”), which was sold in November 2012 (see Note 4 – Discontinued Operations).

		Year Ended December 31,
(Amounts in thousands)		2014		2013		2012
Company management fees		$	2,800	$	2,800	$	2,983
Development fees			3,394		-		438
Leasing fees			1,430		1,126		2,217
Commission on sale of real estate			-		-		7,510
Property management fees and payments for cleaning, engineering
	and security services		3,658		3,415		4,531
		$	11,282	$	7,341	$	17,679

At December 31, 2014, we owed Vornado$3,394,000fordevelopment feesand $528,000 for management, property management and cleaning fees.

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Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations [Text Block]

4.DISCONTINUED OPERATIONS

On November 28, 2012, we completed the sale of KingsPlaza located in Brooklyn, New York, to Macerich, for $751,000,000. Net proceeds from the sale, after repaying the existing loan and closing costs, were $479,000,000, of which $30,000,000 was in Macerich common shares. The financial statement gain was $601,976,000, of which $599,628,000 was recognized in the fourth quarter of 2012 and the remaining $2,348,000 was deferred and will be recognized upon the disposition of the Macerich common shares. Prior to the sale, in November 2012, we acquired the remaining 75% interest in our consolidated subsidiary, the Kings Plaza energyplant joint venture(which was sold with Kings Plaza), for $7,800,000 in cash.

On November 30, 2012, our Board of Directors declared a special long-term capital gain dividend of $122.00 per share, or $623,178,000 in the aggregate, to distribute the tax gain resulting from the sale of Kings Plaza.

In accordance with the provisions of ASC 360, Property, Plant and Equipment, we have reclassified the revenues and expenses of Kings Plaza to “income from discontinued operations” for all of the periods presented on our consolidated statements of income. The table below sets forth the income from discontinued operationsfor the years ended December 31, 2014, 2013 and 2012.

		Year Ended December 31,
(Amounts in thousands)			2014		2013		2012
Total revenues		$	-	$	-	$	61,836
Total operating expenses(1)			-		-		31,214
			-		-		30,622
Interest and other income, net			529		2,252		45
Interest and debt expense			-		-		(5,343)
Net gain on sale			-		-		599,628
Income from discontinued operations		$	529	$	2,252	$	624,952
___________________
(1)	Includes fees to Vornado of $1,368 for the year ended December 31, 2012.

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Mortgages Payable

12 Months Ended

Dec. 31, 2014

Mortgages Payable [Abstract]

Mortgages Payable [Text Block]

6.MORTGAGES PAYABLE

On February 28, 2014, we completed a $300,000,000 refinancing of the office portion of 731 Lexington Avenue. The interest-only loan is at LIBOR plus 0.95% and matures in March 2017, with four one-year extension options. The proceeds of the new loan and existing cash were used to repay the existing loan and closing costs. In connectiontherewith, we purchased an interest rate cap with a notional amount of $300,000,000 that caps LIBOR at a rate of 6.0%.

The following is a summary of outstanding mortgages payable.

			Interest Rate at		Balance at December 31,
(Amounts in thousands)		Maturity(1)	December 31, 2014		2014		2013
First mortgages secured by:
	Rego Park I shopping center (100% cash	Mar. 2015	0.40	%	$	78,246	$	78,246
	collateralized)
	731 Lexington Avenue, retail space(2)	Jul. 2015	4.93	%		320,000		320,000
	Paramus	Oct. 2018	2.90	%		68,000		68,000
	Rego Park II shopping center(3)	Nov. 2018	2.02	%		266,534		269,496
	731 Lexington Avenue, office space(4)	Mar. 2021	1.11	%		300,000		314,217
					$	1,032,780	$	1,049,959
___________________
(1)	Represents the extended maturity where we have the unilateral right to extend.
(2)	In the event of a substantial casualty, as defined, up to $75,000 of this loan may become recourse to us.
(3)	This loan bears interest at LIBOR plus 1.85%.
(4)	This loan bears interest at LIBOR plus 0.95%.

All of our debt is secured by mortgages and/or pledges of the stock of the subsidiaries holding the properties. The net carrying value of real estate collateralizing the debt amounted to $706,791,000 at December 31, 2014. Our existing financing documents contain covenants that limit our ability to incur additional indebtedness on these properties, and in certain circumstances, provide for lender approval of tenants' leases and yield maintenance to prepay them. As of December 31, 2014, the principal repayments for the next five years and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2015	$	401,439
2016		3,440
2017		3,707
2018		324,194
2019		-
Thereafter		300,000

We intend to refinance our maturing debt as it comes due

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Summary of Quarterly results (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Quarterly Results [Abstract]

Summary of Quarterly Results (Unaudited) [Table Text Block]

					Net Income
					Attributable to		Net Income Per
					Common		Common Share(1)
	(Amounts in thousands, except per share amounts)		Revenues		Stockholders		Basic		Diluted
	2014
		December 31	$	51,286	$	18,161	$	3.55	$	3.55
		September 30		50,077		17,692		3.46		3.46
		June 30		49,983		16,828		3.29		3.29
		March 31		49,468		15,244		2.98		2.98
	2013
		December 31	$	50,496	$	15,790	$	3.09	$	3.09
		September 30		49,886		13,824		2.71		2.71
		June 30		47,302		13,139		2.57		2.57
		March 31		48,775		14,162		2.77		2.77
_______________________
(1)	The total for the year may differ from the sum of the quarters as a result of weighting.

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Multiemployer Benefit Plans

12 Months Ended

Dec. 31, 2014

Multiemployer Plans [Abstract]

Multiemployer Benefit Plans [Text Block]

11.MULTIEMPLOYER BENEFIT PLANS

Our subsidiaries make contributions to certain multiemployer defined benefit plans (“Multiemployer Pension Plans”) and health plans (“Multiemployer Health Plans”) for our union represented employees, pursuant to the respective collective bargaining agreements.

Multiemployer Pension Plans

Multiemployer Pension Plans differ from single-employer pension plans in that (i) contributions to multiemployer plans may be used to provide benefits to employees of other participating employers and (ii) if other participating employers fail to make their contributions, each of our subsidiaries may be required to bear their prorata share of unfunded obligations. If a participating subsidiary withdraws from a plan in which it participates, itmay be subject to a withdrawal liability. As of December 31, 2014, our subsidiaries' participation in these plans were not significant to our consolidated financial statements.

In the years ended December 31, 2014, 2013 and 2012 our subsidiaries contributed $144,000, $138,000 and $196,000, respectively, towards Multiemployer Pension Plans. Of these amounts, $61,000in the year ended December 31, 2012represent contributions related todiscontinued operations,which are included as a component of “income from discontinued operations” on our consolidated statements of income. Our subsidiaries' contributions did not represent more than 5% of total employer contributions in any of these plans for the years ended December 31, 2014, 2013 and 2012.

Multiemployer Health Plans

Multiemployer Health Plans in which our subsidiaries participate provide health benefits to eligible active and retired employees. In the years ended December 31, 2014, 2013 and 2012 our subsidiaries contributed $533,000, $499,000 and $734,000, respectively, towards these plans. Of these amounts, $250,000in the year ended December 31, 2012 represent contributions related todiscontinued operations, which are included as a component of “income from discontinued operations” on our consolidated statements of income.

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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies [Abstract]

Basis of Accounting [Policy Text Block]

Basis of Presentation – The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Certain prior year balances have been reclassified in order to conform to current year presentation.

Recently Issued Accounting Literature [Policy Text Block]

Recently Issued Accounting Literature–In April 2014, the Financial Accounting Standards Board (“FASB”) issued an update (“ASU 2014-08”) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity to Accounting Standards Codification (“ASC”) Topic 205, Presentation of Financial Statements and ASC Topic 360, Property Plant and Equipment. Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity's results and operations would qualify as discontinued operations. In addition, ASU 2014-08 expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals for individually significant components that do not meet the definition of discontinued operations. ASU 2014-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2014. The adoption of this update on January 1, 2015 is not expected to have any impact on our consolidated financial statements.

In May 2014, the FASB issued an update (“ASU 2014-09”) establishing ASC Topic 606,Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2016. We are currently evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements.

Real Estate [Policy Text Block]

Real Estate – Real estate is carried at cost, net of accumulated depreciation and amortization. Maintenance and repairs are expensed as incurred. Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. As real estate is undergoing development activities, all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense, are capitalized to the cost of the real property to the extent that we believe such costs are recoverable through the value of the property. The capitalization period begins when development activities are underway and ends when the project is substantially complete. General and administrative costs are expensed as incurred. Depreciation is recognized on a straight-line basis over estimated useful lives, which range from 3 to 40 years. Tenant allowances are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets.

Our properties and related intangible assets, including properties to be developed in the future and currently under development, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset. An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property's carrying amount over its estimated fair value. If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

Cash and Cash Equivalents [Policy Text Block]

Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates fair value, due to their short-term maturities. The majority of our cash and cash equivalents consist of (i) deposits at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit, (ii) United States Treasury Bills, (iii) money market funds, which invest in United States Treasury Bills and(iv) certificates of deposit placed through an account registry service (“CDARS”). To date we have not experienced any losses on our invested cash.

Short Term Investments [Policy Text Block]

Short-term Investments – Short-term investments consist of United States Treasury Bills with original maturities greater than three but less than six months. These highly liquid investments are classified as available-for-sale and are presented at fair value on our consolidated balance sheets. Unrealized gains and losses resulting from these investments are included in “other comprehensive income” and are recognized in earnings only upon the expiration of the investments.

Restricted Cash [Policy Text Block]

Restricted Cash –Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements.

Marketable Security [Policy Text Block]

Marketable Securities – Our marketable securities consist of common shares of The Macerich Company (NYSE: MAC) (“Macerich”), which are classified as available-for-sale. Available-for-sale securities are presented at fair value on our consolidated balance sheets. Unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income” and are recognized in earnings only upon the sale of the securities. We evaluate our marketable securities for impairment at the end of each reporting period. If investments have unrealized losses, we evaluate the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline. In our evaluation, we consider our ability and intent to hold our investment for a reasonable period of time sufficient for us to recover our cost basis, as well as the near-term prospects for the investment in relation to the severity and duration of the decline.

Allowance for Doubtful Accounts [Policy Text Block]

Allowance for Doubtful Accounts– We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,544,000and $1,993,000 as of December 31, 2014 and 2013, respectively) for the estimated losses resulting from the inability of tenants to make required payments under the lease agreements. We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.

Deferred Charges [Policy Text Block]

Deferred Charges – Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense. Direct costs related to leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases. All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate.

Revenue Recognition [Policy Text Block]

Revenue Recognition – We have the following revenue sources and revenue recognition policies:

Base Rent– revenue arising from tenant leases. These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.

Percentage Rent– revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds. These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).

Expense Reimbursements– revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties. This revenue is accrued in the same periods as the expenses are incurred.

Parking Income– revenue arising from the rental of parking space at our properties. This income is recognized as cash is received.

Income Taxes [Policy Text Block]

Income Taxes – We operate in a manner intended to enable us to continue to qualify as a Real Estate Investment Trust (“REIT”) under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year. We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required. Dividends distributed for the years ended December 31, 2014 and 2013were categorized, for federal income tax purposes, as ordinary income.

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Schedule III: Real estate and Accumulated depreciation (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 1,032,780
Initial cost of Land	21,593
Initial cost of Building, Leaseholds and Leasehold improvements	26,239
Costs capitalized subsequent to acquisition	946,095
Carrying amount of Land	44,971
Carring amount of Building, Leaseholds and Leasehold improvements	873,667
Construction in progress	75,289
Total	993,927	919,576	911,792	906,907
Accumulated depreciation and amortization	210,025	185,375	160,826	136,460
Differences Between Book and Tax Basis	204,815
Lexington Avenue Property [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	620,000
Initial cost of Land	14,432
Initial cost of Building, Leaseholds and Leasehold improvements	12,355
Costs capitalized subsequent to acquisition	426,691
Carrying amount of Land	27,497
Carring amount of Building, Leaseholds and Leasehold improvements	425,981
Construction in progress	0
Total	453,478
Accumulated depreciation and amortization	128,798
Date of construction	2003
Date acquired	1992
Lexington Avenue Property [Member] | Maximum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Property, Plant and Equipment, Useful Life	39 years
Lexington Avenue Property [Member] | Minimum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Property, Plant and Equipment, Useful Life	9 years
Rego Park 1 Shopping [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	78,246
Initial cost of Land	1,647
Initial cost of Building, Leaseholds and Leasehold improvements	8,953
Costs capitalized subsequent to acquisition	50,553
Carrying amount of Land	1,647
Carring amount of Building, Leaseholds and Leasehold improvements	59,370
Construction in progress	136
Total	61,153
Accumulated depreciation and amortization	27,569
Date of construction	1959
Date acquired	1992
Rego Park 1 Shopping [Member] | Maximum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Property, Plant and Equipment, Useful Life	39 years
Rego Park 1 Shopping [Member] | Minimum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Rego Park 2 Residential Property [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial cost of Land	0
Initial cost of Building, Leaseholds and Leasehold improvements	0
Costs capitalized subsequent to acquisition	73,327
Carrying amount of Land	0
Carring amount of Building, Leaseholds and Leasehold improvements	0
Construction in progress	73,327
Total	73,327
Accumulated depreciation and amortization	0
Date acquired	1992
Rego Park 2 Retail Property [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	266,534
Initial cost of Land	3,127
Initial cost of Building, Leaseholds and Leasehold improvements	1,467
Costs capitalized subsequent to acquisition	384,926
Carrying amount of Land	3,127
Carring amount of Building, Leaseholds and Leasehold improvements	386,260
Construction in progress	133
Total	389,520
Accumulated depreciation and amortization	52,747
Date of construction	2009
Date acquired	1992
Rego Park 2 Retail Property [Member] | Maximum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Property, Plant and Equipment, Useful Life	40 years
Rego Park 2 Retail Property [Member] | Minimum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Paramus Property [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	68,000
Initial cost of Land	1,441
Initial cost of Building, Leaseholds and Leasehold improvements	0
Costs capitalized subsequent to acquisition	10,313
Carrying amount of Land	11,754
Carring amount of Building, Leaseholds and Leasehold improvements	0
Construction in progress	0
Total	11,754
Accumulated depreciation and amortization	0
Date acquired	1992
Flushing Property [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial cost of Land	0
Initial cost of Building, Leaseholds and Leasehold improvements	1,660
Costs capitalized subsequent to acquisition	(107)
Carrying amount of Land	0
Carring amount of Building, Leaseholds and Leasehold improvements	1,553
Construction in progress	0
Total	1,553
Accumulated depreciation and amortization	791
Date of construction	1975
Date acquired	1992
Rego Park 3 Property [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial cost of Land	779
Initial cost of Building, Leaseholds and Leasehold improvements	0
Costs capitalized subsequent to acquisition	2,196
Carrying amount of Land	779
Carring amount of Building, Leaseholds and Leasehold improvements	503
Construction in progress	1,693
Total	2,975
Accumulated depreciation and amortization	120
Date acquired	1992
Rego Park 3 Property [Member] | Maximum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Rego Park 3 Property [Member] | Minimum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Other Properties [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial cost of Land	167
Initial cost of Building, Leaseholds and Leasehold improvements	1,804
Costs capitalized subsequent to acquisition	(1,804)
Carrying amount of Land	167
Carring amount of Building, Leaseholds and Leasehold improvements	0
Construction in progress	0
Total	167
Accumulated depreciation and amortization	$ 0
Date acquired	1992

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financial Assets And Liabilities Measured At Fair Value
Marketable securities	$ 44,646	$ 31,522
Short-term Investments	24,998	0
Interest rate cap (included in other assets)	11
Total assets	69,655
Liabilities measured at fair value	0	0
Carrying Reported Amount Fair Value Disclosure [Member]
Assets
Cash Equivalents	111,590	184,796
Liabilities
Mortgages Payable	1,032,780	1,049,959
Leasing commissions (included in amounts due to Vornado)	0	42,924
Total liabilities not measured at fair value	1,032,780	1,092,883
Estimate Of Fair Value Fair Value Disclosure [Member]
Assets
Cash Equivalents	111,590	184,796
Liabilities
Mortgages Payable	1,025,000	1,072,000
Leasing commissions (included in amounts due to Vornado)	0	43,000
Total liabilities not measured at fair value	1,025,000	1,115,000
Fair Value, Inputs, Level 1 [Member]
Financial Assets And Liabilities Measured At Fair Value
Marketable securities	44,646	31,522
Short-term Investments	24,998
Interest rate cap (included in other assets)	0
Total assets	69,644
Fair Value, Inputs, Level 2 [Member]
Financial Assets And Liabilities Measured At Fair Value
Marketable securities	0	0
Short-term Investments	0
Interest rate cap (included in other assets)	11
Total assets	11
Fair Value, Inputs, Level 3 [Member]
Financial Assets And Liabilities Measured At Fair Value
Marketable securities	0	0
Short-term Investments	0
Interest rate cap (included in other assets)	0
Total assets	$ 0

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Consolidated Statements of Income (Parentheticals) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements of Income
Fees to Vornado	$ 4,516	$ 4,196	$ 4,318
Management fees to Vornado	2,380	2,380	2,160
Net gain on sale of real estate		$ 0	$ 599,628

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Consolidated Statements of Cash Flows (Parentheticals) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Consolidated Statements of Cash Flows
Cash paid for interest, capitalized in 2014	$ 603

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Summary of Significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies [Abstract]

Reconciliation Of Net Income Attributable To Common Stockholders To Estimated Taxable Income [Table Text Block]

(Unaudited and in thousands)		Year Ended December 31,
		2014		2013		2012
Net income attributable to Alexander’s		$	67,925	$	56,915	$	674,387
Straight-line rent adjustments			(2,538)		(3,707)		(4,475)
Depreciation and amortization timing differences			2,283		2,134		910
Interest expense			10		27		29
Reversal of liability for income taxes			(420)		(206)		-
Additional tax gain on sale of the Kings Plaza
	Regional Shopping Center		(357)		-		23,928
Other			1,112		(2,213)		4,396
Estimated taxable income		$	68,015	$	52,950	$	699,175

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Discontinued Operations (Details) (USD $)	3 Months Ended	12 Months Ended			1 Months Ended	0 Months Ended		3 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Nov. 30, 2012	Nov. 30, 2012	Nov. 28, 2012	Dec. 31, 2012
Description of Transaction
Common Stock From Sale of Real Estate		$ 0	$ 0	$ 30,000,000
Acquisition of the noncontrolling interest		0	0	7,800,000
Special long-term capital gain dividend				623,178,000
Disposal Group Income And Expenses
Interest and other income, net		2,434,000	1,527,000	177,000
Interest and debt expense		(32,068,000)	(44,540,000)	(45,652,000)
Net gain on sale of real estate	599,628,000		0	599,628,000
Income from discontinued operations		529,000	2,252,000	624,952,000
Fees to Vornado		4,516,000	4,196,000	4,318,000
Kings Plaza Energy Joint Venture [Member]
Description of Transaction
Remaining Equity Interest Percentage Acquired					75.00%	75.00%
Acquisition of the noncontrolling interest					7,800,000
Kings Plaza Regional Shopping Center [Member]
Description of Transaction
Financial Statement Gain							601,976,000
Disposal Group, Deferred Gain on Disposal							2,348,000
Special long-term capital gain dividend (in dollars per share) per share						$ 122.00
Special long-term capital gain dividend						623,178,000
Disposal Group Income And Expenses
Total revenues		0	0	61,836,000
Total expenses		0	0	31,214,000
Operating income from discontinued operations		0	0	30,622,000
Interest and other income, net		529,000	2,252,000	45,000
Interest and debt expense		0	0	(5,343,000)
Net gain on sale of real estate		0	0	599,628,000				599,628,000
Income from discontinued operations		529,000	2,252,000	624,952,000
Fees to Vornado				1,368,000
Kings Plaza Regional Shopping Center [Member] | Macerich [Member]
Description of Transaction
Real Estate Property Sold Gross							751,000,000
Proceeds from sale of real estate							479,000,000
Common Stock From Sale of Real Estate							$ 30,000,000

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies [Abstract]

Commitments and Contingencies [Text Block]

10.       COMMITMENTS AND CONTINGENCIES

Insurance

We maintain general liability insurance with limits of $300,000,000 per occurrence 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.

Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020. Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies with no exposure to FNSIC. For NBCR acts, FNSIC is responsible for a $275,000 deductible and 15% of the balance (16% effective January 1, 2016) of a covered loss, and the Federal government is responsible for the remaining 85% (84% effective January 1, 2016) of a covered loss. We are ultimately responsible for any loss incurred by FNSIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.

Our mortgage loans are non-recourse to us, except for $75,000,000 of the $320,000,000 mortgage on the retail portion of our 731 Lexington Avenue property, in the event of a substantial casualty, as defined. Our mortgage loans contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties.

Litigation

Rego Park I

On June 24, 2014, Sears Roebuck and Co. (“Sears”) filed a lawsuit in the Supreme Court of the State of New York against Vornado and us (and certain of our subsidiaries) with regard to space that Sears leases at our Rego Park I property. Sears alleges that the defendants are liable for harm Sears has suffered as a result of (a) water intrusions into the premises Sears leases, (b) two fires in February 2014 that caused damages to those premises, and (c) alleged violations of the Americans with Disabilities Act in the premises' parking garage. Sears asserts various causes of actions for damages and seeks to compel compliance with landlord's obligations to repair the premises and to provide security, and to compel us to abate a nuisance that Sears claims was a cause of the water intrusions into its premises. In addition to injunctive relief, Sears seeks, among other things, damages of not less than $4 million and future damages it estimates will not be less than $25 million. We intend to defend the claims vigorously; the amount or range of reasonably possible losses, if any, cannot be estimated.

10.       COMMITMENTS AND CONTINGENCIES – continued

Rego Park II Apartment Tower

We are in the process of constructing an apartment tower above our Rego II shopping center, containing 312 units aggregating 255,000 square feet, which is expected to be completed in 2015. The estimated cost of this project is approximately $125,000,000, of which $73,327,000 has been incurred as of December 31, 2014. There can be no assurance that the project will be completed, or completed on schedule or within budget.

Paramus

In 2001, we leased 30.3 acres of land located in Paramus, New Jersey to IKEA Property, Inc. The lease has a purchase option in 2021 for $75,000,000. The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 2.90%, which matures in October 2018. The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan. If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a gain on sale of land of approximately $60,000,000. If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term.

Letters of Credit

Approximately $3,308,000 of standby letters of credit were issued and outstanding as of December 31, 2014.

Other

There are various legal actions against us in the ordinary course of business. In our opinion, the outcome of such matters will not have a material effect on our financial condition, results of operations or cash flows.