QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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: |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||||||||
| ||||||||||||||
(Address of principal executive offices) | (Zip Code) |
N/A |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☐ | Large Accelerated Filer | ☑ | |||||||||
☐ | Non-Accelerated Filer | Smaller Reporting Company | |||||||||
Emerging Growth Company |
Page Number | ||||||||
PART I. | Financial Information | |||||||
Item 1. | Financial Statements: | |||||||
Consolidated Balance Sheets (Unaudited) as of June 30, 2024 and December 31, 2023 | ||||||||
Consolidated Statements of Income (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023 | ||||||||
Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023 | ||||||||
Consolidated Statements of Changes in Equity (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023 | ||||||||
Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2024 and 2023 | ||||||||
Notes to Consolidated Financial Statements (Unaudited) | ||||||||
Report of Independent Registered Public Accounting Firm | 16 | |||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 17 | ||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 25 | ||||||
Item 4. | Controls and Procedures | 25 | ||||||
PART II. | Other Information | |||||||
Item 1. | Legal Proceedings | 26 | ||||||
Item 1A. | Risk Factors | 26 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 26 | ||||||
Item 3. | Defaults Upon Senior Securities | 26 | ||||||
Item 4. | Mine Safety Disclosures | 26 | ||||||
Item 5. | Other Information | 26 | ||||||
Item 6. | Exhibits | 26 | ||||||
Exhibit Index | 27 | |||||||
Signatures | 29 |
As of | ||||||||||||||
ASSETS | June 30, 2024 | December 31, 2023 | ||||||||||||
Real estate, at cost: | ||||||||||||||
Land | $ | $ | ||||||||||||
Buildings and leasehold improvements | ||||||||||||||
Development and construction in progress | ||||||||||||||
Total | ||||||||||||||
Accumulated depreciation and amortization | ( | ( | ||||||||||||
Real estate, net | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Restricted cash | ||||||||||||||
Tenant and other receivables | ||||||||||||||
Receivable arising from the straight-lining of rents | ||||||||||||||
Deferred leasing costs, net, including unamortized leasing fees to Vornado of $ | ||||||||||||||
Other assets | ||||||||||||||
$ | $ |
LIABILITIES AND EQUITY | ||||||||||||||
Mortgages payable, net of deferred debt issuance costs | $ | $ | ||||||||||||
Amounts due to Vornado | ||||||||||||||
Accounts payable and accrued expenses | ||||||||||||||
Lease incentive liability | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Preferred stock: $ issued and outstanding, | ||||||||||||||
Common stock: $ issued, | ||||||||||||||
Additional capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive income | ||||||||||||||
Treasury stock: | ( | ( | ||||||||||||
Total equity | ||||||||||||||
$ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||
Rental revenues | $ | $ | $ | $ | ||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||
Operating, including fees to Vornado of $ | ( | ( | ( | ( | ||||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | ||||||||||||||||||||||
General and administrative, including management fees to Vornado of $ | ( | ( | ( | ( | ||||||||||||||||||||||
Total expenses | ( | ( | ( | ( | ||||||||||||||||||||||
Interest and other income | ||||||||||||||||||||||||||
Interest and debt expense | ( | ( | ( | ( | ||||||||||||||||||||||
Net gain on sale of real estate | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Net income per common share - basic and diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average shares outstanding - basic and diluted |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||
Change in fair value of interest rate derivatives and other | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate derivatives | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Deferred stock unit grants | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2024 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate derivatives and other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Deferred stock unit grants | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | $ | ( | $ |
Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate derivatives | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Deferred stock unit grants | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2024 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate derivatives and other | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Deferred stock unit grants | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | $ | ( | $ |
For the Six Months Ended June 30, | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | 2024 | 2023 | ||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization, including amortization of debt issuance costs | ||||||||||||||
Net gain on sale of real estate | ( | |||||||||||||
Straight-lining of rents | ||||||||||||||
Interest rate cap premium amortization | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Other non-cash adjustments | ( | |||||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Tenant and other receivables | ( | |||||||||||||
Other assets | ( | |||||||||||||
Amounts due to Vornado | ( | |||||||||||||
Accounts payable and accrued expenses | ( | |||||||||||||
Lease incentive liability | ||||||||||||||
Other liabilities | ( | ( | ||||||||||||
Net cash provided by operating activities | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
Construction in progress and real estate additions | ( | ( | ||||||||||||
Proceeds from maturities of U.S. Treasury bills | ||||||||||||||
Proceeds from sale of real estate | ||||||||||||||
Proceeds from interest rate cap | ||||||||||||||
Purchase of interest rate cap | ( | |||||||||||||
Net cash provided by investing activities | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
Dividends paid | ( | ( | ||||||||||||
Debt repayment | ( | |||||||||||||
Debt issuance costs | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | ( | |||||||||||||
Cash and cash equivalents and restricted cash at beginning of period | ||||||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ | ||||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ||||||||||||||
Cash and cash equivalents at beginning of period | $ | $ | ||||||||||||
Restricted cash at beginning of period | ||||||||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | $ | ||||||||||||
Cash and cash equivalents at end of period | $ | $ | ||||||||||||
Restricted cash at end of period | ||||||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ | ||||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||||||||
Cash payments for interest | $ | $ | ||||||||||||
NON-CASH TRANSACTIONS | ||||||||||||||
Liability for real estate additions, including $ to Vornado in 2024 | $ | $ | ||||||||||||
Write-off of fully depreciated assets |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
(Amounts in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Lease revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Parking revenue | ||||||||||||||||||||||||||
Tenant services | ||||||||||||||||||||||||||
Rental revenues | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
(Amounts in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Fixed lease revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Variable lease revenues | ||||||||||||||||||||||||||
Lease revenues | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
(Amounts in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Company management fees | $ | $ | $ | $ | ||||||||||||||||||||||
Development fees | ||||||||||||||||||||||||||
Leasing fees | ||||||||||||||||||||||||||
Commission on sale of real estate | ||||||||||||||||||||||||||
Property management, cleaning, engineering, parking and security fees | ||||||||||||||||||||||||||
$ | $ | $ | $ |
Interest Rate at June 30, 2024 | Balance at | |||||||||||||||||||||||||
(Amounts in thousands) | Maturity | June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||
First mortgages secured by: | ||||||||||||||||||||||||||
731 Lexington Avenue, office condominium (1) | Oct. 11, 2024 | $ | $ | |||||||||||||||||||||||
731 Lexington Avenue, retail condominium (2)(3) | Aug. 05, 2025 | |||||||||||||||||||||||||
Rego Park II shopping center (2)(4) | Dec. 12, 2025 | |||||||||||||||||||||||||
The Alexander apartment tower | Nov. 01, 2027 | |||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Deferred debt issuance costs, net of accumulated amortization of $ | ( | ( | ||||||||||||||||||||||||
$ | $ |
As of June 30, 2024 | ||||||||||||||||||||||||||
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Interest rate derivatives (included in other assets) | $ | $ | $ | $ |
As of As of December 31, 2023 | ||||||||||||||||||||||||||
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Interest rate derivatives (included in other assets) | $ | $ | $ | $ |
Fair Value as of | As of June 30, 2024 | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | June 30, 2024 | December 31, 2023 | Notional Amount | Swapped Rate | Expiration Date | |||||||||||||||||||||||||||||||||
Interest rate swap related to: | ||||||||||||||||||||||||||||||||||||||
731 Lexington Avenue mortgage loan, retail condominium | $ | $ | $ | 05/25 | ||||||||||||||||||||||||||||||||||
Interest rate caps related to: | ||||||||||||||||||||||||||||||||||||||
Rego Park II shopping center mortgage loan | (1) | 11/24 | ||||||||||||||||||||||||||||||||||||
731 Lexington Avenue mortgage loan, office condominium | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||
Included in other assets | $ | $ | ||||||||||||||||||||||||||||||||||||
As of June 30, 2024 | As of December 31, 2023 | |||||||||||||||||||||||||
(Amounts in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Mortgages payable (excluding deferred debt issuance costs, net) | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
(Amounts in thousands, except share and per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average shares outstanding – basic and diluted | ||||||||||||||||||||||||||
Net income per common share – basic and diluted | $ | $ | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
(Amounts in thousands, except share and per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Net income | $ | 8,380 | $ | 64,147 | $ | 24,489 | $ | 75,373 | ||||||||||||||||||
Depreciation and amortization of real property | 8,629 | 8,013 | 18,052 | 15,420 | ||||||||||||||||||||||
Net gain on sale of real estate | — | (53,952) | — | (53,952) | ||||||||||||||||||||||
FFO (non-GAAP) | $ | 17,009 | $ | 18,208 | $ | 42,541 | $ | 36,841 | ||||||||||||||||||
FFO per diluted share (non-GAAP) | $ | 3.31 | $ | 3.55 | $ | 8.29 | $ | 7.18 | ||||||||||||||||||
Weighted average shares used in computing FFO per diluted share | 5,131,902 | 5,128,823 | 5,131,290 | 5,127,959 |
2024 | 2023 | |||||||||||||||||||||||||||||||
(Amounts in thousands, except per share amounts) | June 30, Balance | Weighted Average Interest Rate | Effect of 1% Change in Base Rates | December 31, Balance | Weighted Average Interest Rate | |||||||||||||||||||||||||||
Variable Rate | $ | 692,544 | 7.65% | $ | 6,925 | $ | 702,544 | 5.88% | ||||||||||||||||||||||||
Fixed Rate | 394,000 | 1.97% | — | 394,000 | 1.97% | |||||||||||||||||||||||||||
$ | 1,086,544 | 5.59% | $ | 6,925 | $ | 1,096,544 | 4.48% | |||||||||||||||||||||||||
Total effect on diluted earnings per share | $ | 1.35 |
Exhibit No. | |||||||||||||||||
- | Third Amendment of Lease, dated as of the 20th of April 2016 between 731 Office One LLC and Bloomberg L.P. | ** | |||||||||||||||
- | Fourth Amendment of Lease, dated as of the 28th of June 2019 between 731 Office One LLC and Bloomberg L.P. | ** | |||||||||||||||
- | Fifth Amendment of Lease, dated as of the 17th of December 2021 between 731 Office One LLC and Bloomberg L.P. | ** | |||||||||||||||
- | Sixth Amendment of Lease, dated as of the 29th of March 2022 between 731 Office One LLC and Bloomberg L.P. | ** | |||||||||||||||
- | Seventh Amendment of Lease, dated as of the 19th of July 2022 between 731 Office One LLC and Bloomberg L.P. | ** | |||||||||||||||
- | Eighth Amendment of Lease, dated as of the 21st of July 2023 between 731 Office One LLC and Bloomberg L.P. | ** | |||||||||||||||
+ | - | Ninth Amendment of Lease, dated as of the 3rd of May 2024 between 731 Office One LLC and Bloomberg L.P. | ** | ||||||||||||||
- | Loan Extension and Modification Agreement, dated June 11, 2024, between 731 Office One LLC, as Borrower, and among Wilmington Trust, National Association, as Trustee, for the benefit of the Holders of DBCG 2017-BBG Mortgage Trust Commercial Mortgage Pass-Through Certificates (together with its successors and assigns), as Lender. | *** | |||||||||||||||
- | Second Amendment to Rego II Real Estate Sub-Retention Agreement, dated as of the 18th of June 2024 between Alexander’s, Inc. and Vornado Realty L.P. | **** | |||||||||||||||
__________________ | |||||||||||||||||
** | Incorporated by reference from Form 10-Q filed on May 6, 2024. | ||||||||||||||||
*** | Incorporated by reference from Form 8-K filed on June 12, 2024. | ||||||||||||||||
**** | Filed herewith. | ||||||||||||||||
+ | Portions of this exhibit have been redacted in compliance with Regulation S-K Item 601(b)(10). | ||||||||||||||||
- | Letter regarding unaudited interim financial information | ||||||||||||||||
- | Rule 13a-14 (a) Certification of the Chief Executive Officer | ||||||||||||||||
- | Rule 13a-14 (a) Certification of the Chief Financial Officer | ||||||||||||||||
- | Section 1350 Certification of the Chief Executive Officer | ||||||||||||||||
- | Section 1350 Certification of the Chief Financial Officer | ||||||||||||||||
101 | - | The following financial information from the Alexander’s, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 formatted in Inline Extensible Business Reporting Language (iXBRL) includes: (i) consolidated balance sheets, (ii) consolidated statements of income, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of changes in equity, (v) consolidated statements of cash flows and (vi) the notes to the consolidated financial statements | |||||||||||||||
104 | - | The cover page from the Alexander’s, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 formatted as iXBRL and contained in Exhibit 101 | |||||||||||||||
ALEXANDER’S, INC. | ||||||||
(Registrant) | ||||||||
Date: August 5, 2024 | By: | /s/ Gary Hansen | ||||||
Gary Hansen | ||||||||
Chief Financial Officer (duly authorized officer and principal financial and accounting officer) |
By: | /s/ Steven J. Borenstein | ||||
Name: Steven J. Borenstein | |||||
Title: Secretary |
By: | /s/ Thomas J. Sanelli | ||||
Name: Thomas J. Sanelli | |||||
Title: EVP-Finance |
August 5, 2024 | |||||
/s/ Steven Roth | |||||
Steven Roth | |||||
Chairman of the Board and Chief Executive Officer |
August 5, 2024 | |||||
/s/ Gary Hansen | |||||
Gary Hansen | |||||
Chief Financial Officer |
August 5, 2024 | /s/ Steven Roth | |||||||
Name: | Steven Roth | |||||||
Title: | Chairman of the Board and Chief Executive Officer |
August 5, 2024 | /s/ Gary Hansen | |||||||
Name: | Gary Hansen | |||||||
Title: | Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Unamortized leasing fees to Vornado | $ 22,877 | $ 19,540 |
Preferred stock: par value per share (in usd per share) | $ 1.00 | $ 1.00 |
Preferred stock: authorized shares (in shares) | 3,000,000 | 3,000,000 |
Preferred stock: issued shares (in shares) | 0 | 0 |
Preferred stock: outstanding shares (in shares) | 0 | 0 |
Common stock: par value per share (in usd per share) | $ 1.00 | $ 1.00 |
Common stock: authorized shares (in shares) | 10,000,000 | 10,000,000 |
Common stock: issued shares (in shares) | 5,173,450 | 5,173,450 |
Common stock: outstanding shares (in shares) | 5,107,290 | 5,107,290 |
Treasury stock: shares (in shares) | 66,160 | 66,160 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
REVENUES | ||||
Rental revenues | $ 53,392 | $ 53,673 | $ 114,789 | $ 106,614 |
EXPENSES | ||||
Operating, including fees to Vornado of $1,345, $1,684, $3,104 and $3,223, respectively | (24,991) | (24,818) | (50,254) | (49,762) |
Depreciation and amortization | (8,697) | (8,081) | (18,174) | (15,559) |
General and administrative, including management fees to Vornado of $610, $610, $1,220 and $1,220, respectively | (2,159) | (1,906) | (3,635) | (3,265) |
Total expenses | (35,847) | (34,805) | (72,063) | (68,586) |
Interest and other income | 7,054 | 4,523 | 14,216 | 8,842 |
Interest and debt expense | (16,219) | (13,196) | (32,453) | (25,449) |
Net gain on sale of real estate | 0 | 53,952 | 0 | 53,952 |
Net income | $ 8,380 | $ 64,147 | $ 24,489 | $ 75,373 |
Net income per common share - basic (in usd per share) | $ 1.63 | $ 12.51 | $ 4.77 | $ 14.70 |
Net income per common share - diluted (in usd per share) | $ 1.63 | $ 12.51 | $ 4.77 | $ 14.70 |
Weighted average shares outstanding - basic (in shares) | 5,131,902 | 5,128,823 | 5,131,290 | 5,127,959 |
Weighted average shares outstanding - diluted (in shares) | 5,131,902 | 5,128,823 | 5,131,290 | 5,127,959 |
CCONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Operating fees to Vornado | $ 24,991 | $ 24,818 | $ 50,254 | $ 49,762 |
Management fees | 2,159 | 1,906 | 3,635 | 3,265 |
Related Party | ||||
Operating fees to Vornado | 1,345 | 1,684 | 3,104 | 3,223 |
Management fees | $ 610 | $ 610 | $ 1,220 | $ 1,220 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,380 | $ 64,147 | $ 24,489 | $ 75,373 |
Other comprehensive (loss) income: | ||||
Change in fair value of interest rate derivatives and other | (3,360) | 3,110 | (3,900) | (534) |
Comprehensive income | $ 5,020 | $ 67,257 | $ 20,589 | $ 74,839 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY(Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Statement of Stockholders' Equity [Abstract] | ||||
Dividends per common share (in usd per share) | $ 4.50 | $ 4.50 | $ 9.00 | $ 9.00 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands |
6 Months Ended |
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Jun. 30, 2024
USD ($)
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Development fees | $ 964 |
Vornado | |
Development fees | $ 126 |
Organization |
6 Months Ended |
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Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 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 five properties in New York City.
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Basis of Presentation |
6 Months Ended |
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Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and include the accounts of Alexander’s and its consolidated subsidiaries. All adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results for the full year. We operate in one reportable segment.
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Recently Issued Accounting Literature |
6 Months Ended |
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Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Literature | Recently Issued Accounting Literature In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The update also requires disclosure regarding the chief operating decision maker and expands the interim segment disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-07 on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-09 on our consolidated financial statements.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The following is a summary of revenue sources for the three and six months ended June 30, 2024 and 2023.
The components of lease revenues for the three and six months ended June 30, 2024 and 2023 are as follows:
Bloomberg L.P. (“Bloomberg”) accounted for revenue of $60,946,000 and $59,177,000 for the six months ended June 30, 2024 and 2023, respectively, representing approximately 53% and 56% of our rental revenues in each period, respectively. No other tenant accounted for more than 10% of our rental revenues. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data. On May 3, 2024, Alexander’s and Bloomberg entered into an agreement to extend the leases covering approximately 947,000 square feet at our 731 Lexington Avenue property that were scheduled to expire in February 2029 for a term of eleven years to February 2040. Upon execution of this lease extension, we paid a $32,000,000 leasing commission, of which $26,500,000 was to a third-party broker and $5,500,000 was to Vornado. In connection with the lease extension, Bloomberg is entitled to a $113,618,000 tenant fund which is accounted for as a lease incentive under GAAP. Accordingly, we recorded a deferred lease incentive asset of $113,618,000, which is amortized as a reduction to rental revenues over the remaining term of the lease, and a corresponding liability. These amounts are included in “Deferred leasing costs, net” and “Lease incentive liability,” respectively, on our consolidated balance sheet as of June 30, 2024. On December 3, 2022, IKEA closed its 112,000 square foot store at our Rego Park I property under a lease that was set to expire in December 2030. The lease included a right to terminate effective no earlier than March 16, 2026, subject to payment of rent through the termination date and an additional termination payment equal to the lesser of $10,000,000 or the amount of rent due under the remaining term. On September 27, 2023, we entered into a lease modification agreement with IKEA which accelerated its lease termination date to April 1, 2024. During the fourth quarter of 2023 and the first quarter of 2024, IKEA paid its remaining rent obligation through March 16, 2026 and the $10,000,000 termination payment.
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Real Estate Sale |
6 Months Ended |
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Jun. 30, 2024 | |
Real Estate [Abstract] | |
Real Estate Sale | Real Estate Sale On May 19, 2023, we sold the Rego Park III land parcel in Queens, New York, for $71,060,000 inclusive of consideration for Brownfield tax benefits and reimbursement of costs for plans, specifications and improvements to date. Net proceeds from the sale were $67,821,000 after closing costs and the financial statement gain was $53,952,000.
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Related Party Transactions |
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Related Party Transactions | Related Party Transactions Vornado As of June 30, 2024, 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. 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) $376,000, 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. Leasing and Other 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. Under the agreements in effect prior to May 1, 2024, in the event third-party real estate brokers were used, the fees to Vornado increased by 1% and Vornado was responsible for the fees to the third-party real estate brokers (“Third-Party Lease Commissions”). On May 1, 2024, our Board of Directors approved amendments to the leasing agreements, subject to applicable lender consents, pursuant to which the Company is responsible for any Third-Party Lease Commissions and, in such circumstances, Vornado’s fee is 33% of the applicable Third-Party Lease Commission. 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. We also have agreements with Building Maintenance Services LLC, a wholly owned subsidiary of Vornado, to supervise (i) cleaning, engineering and security services at our 731 Lexington Avenue property and (ii) security services at our Rego Park I and Rego Park II properties and The Alexander apartment tower. In addition, we have an agreement with a wholly owned subsidiary of Vornado to manage the parking garages at our Rego Park I and Rego Park II properties. The following is a summary of fees earned by Vornado under the various agreements discussed above.
As of June 30, 2024, the amounts due to Vornado were $480,000 for management, property management, cleaning, engineering and security fees, $126,000 for development fees and $17,000 for leasing fees. As of December 31, 2023, the amounts due to Vornado were $646,000 for management, property management, cleaning, engineering and security fees and $69,000 for leasing fees.
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Mortgages Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages Payable | Mortgages Payable On June 9, 2023, we exercised our remaining one-year extension option on the $500,000,000 interest-only mortgage loan on the office condominium of our 731 Lexington Avenue property. The interest rate on the loan remained at LIBOR plus 0.90% through July 15, 2023 and then at the Prime Rate through loan maturity on June 11, 2024. In addition, in June 2023, we purchased an interest rate cap for $11,258,000, which capped LIBOR at 6.00% through July 15, 2023 and then the Prime Rate at 6.00% through loan maturity. On June 11, 2024, we entered into a four-month extension of the loan and simultaneously paid down the principal balance by $10,000,000 to $490,000,000. The interest-only mortgage loan remains at the Prime rate (8.50% as of June 30, 2024) through the extended loan maturity of October 11, 2024. We also escrowed $66,808,000 with the lender in connection with the tenant fund in the Bloomberg lease extension which is included in “Restricted cash” on our consolidated balance sheet as of June 30, 2024. The following is a summary of our outstanding mortgages payable as of June 30, 2024 and December 31, 2023. We may refinance our maturing debt as it comes due or choose to pay it down.
(1)Interest at the Prime Rate. (2)Interest rate listed represents the rate in effect as of June 30, 2024 based on SOFR as of contractual reset date plus contractual spread, adjusted for hedging instruments as applicable. (3)Interest at SOFR plus 1.51% which was swapped to a fixed rate of 1.76% through May 2025. (4)Interest at SOFR plus 1.45% (SOFR is capped at a rate of 4.15% through November 2024).
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Stock-Based Compensation |
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Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). Our 2016 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. In May 2024, we granted each of the members of our Board of Directors 357 DSUs with a market value of $75,000 per grant. The grant date fair value of these awards was $56,250 per grant, or $450,000 in the aggregate, in accordance with ASC 718. The DSUs entitle the holders to receive shares of the Company’s 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. As of June 30, 2024, there were 26,244 DSUs outstanding and 479,543 shares were available for future grant under the Plan.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurement (“ASC 820”) defines fair value and establishes a framework for measuring fair value. 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 that are highly liquid and are actively traded in secondary markets; 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 sheet as of June 30, 2024 consist of interest rate derivatives, 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 as of June 30, 2024.
Financial assets measured at fair value on our consolidated balance sheet as of December 31, 2023 consist of interest rate derivatives, 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 as of December 31, 2023.
Interest Rate Derivatives We recognize the fair value of all interest rate derivatives in “other assets” or “other liabilities” on our consolidated balance sheets and since all of our interest rate derivatives have been designated as cash flow hedges, changes in the fair value are recognized in other comprehensive income. The table below summarizes our interest rate derivatives, all of which hedge the interest rate risk attributable to the variable rate debt noted as of June 30, 2024 and December 31, 2023, respectively.
(1)SOFR cap strike rate of 4.15%. 9.Fair Value Measurements - continued 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 and mortgages payable. Cash equivalents are carried at cost, which approximates fair value due to their short-term maturities and are classified as Level 1. 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, and is classified as Level 2. The table below summarizes the carrying amount and fair value of these financial instruments as of June 30, 2024 and December 31, 2023, respectively.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, of which the first $30,000,000 includes communicable disease coverage, and all-risk property and rental value insurance coverage with limits of $1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties and excluding communicable disease coverage. 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 Act of 2002, as amended to date and which has been extended through December 2027. 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 and the Federal government with no exposure to FNSIC. For NBCR acts, FNSIC is responsible for a $316,000 deductible and 20% of the balance of a covered loss, and the Federal government is responsible for the remaining 80% 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 or other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material. Our 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. Letters of Credit Approximately $900,000 of standby letters of credit were issued and outstanding as of June 30, 2024. Other There are various legal actions brought against us from time-to-time in the ordinary course of business. In our opinion, the outcome of such pending matters in the aggregate will not have a material effect on our financial position, results of operations or cash flows.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | 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 deferred stock units) outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock (including deferred stock units) 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 three and six months ended June 30, 2024 and 2023.
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Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements are unaudited and include the accounts of Alexander’s and its consolidated subsidiaries. All adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results for the full year. We operate in one reportable segment.
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Recently Issued Accounting Literature | In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The update also requires disclosure regarding the chief operating decision maker and expands the interim segment disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-07 on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-09 on our consolidated financial statements.
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Fair Value Measurements | ASC Topic 820, Fair Value Measurement (“ASC 820”) defines fair value and establishes a framework for measuring fair value. 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 that are highly liquid and are actively traded in secondary markets; 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.
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue | The following is a summary of revenue sources for the three and six months ended June 30, 2024 and 2023.
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Schedule of Components of Lease Revenue | The components of lease revenues for the three and six months ended June 30, 2024 and 2023 are as follows:
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Related Party Transactions (Tables) |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fees to Vornado | The following is a summary of fees earned by Vornado under the various agreements discussed above.
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Mortgages Payable (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The following is a summary of our outstanding mortgages payable as of June 30, 2024 and December 31, 2023. We may refinance our maturing debt as it comes due or choose to pay it down.
(1)Interest at the Prime Rate. (2)Interest rate listed represents the rate in effect as of June 30, 2024 based on SOFR as of contractual reset date plus contractual spread, adjusted for hedging instruments as applicable. (3)Interest at SOFR plus 1.51% which was swapped to a fixed rate of 1.76% through May 2025. (4)Interest at SOFR plus 1.45% (SOFR is capped at a rate of 4.15% through November 2024).
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets measured at fair value on our consolidated balance sheet as of June 30, 2024 consist of interest rate derivatives, 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 as of June 30, 2024.
Financial assets measured at fair value on our consolidated balance sheet as of December 31, 2023 consist of interest rate derivatives, 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 as of December 31, 2023.
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Schedule of Interest Rate Derivatives | The table below summarizes our interest rate derivatives, all of which hedge the interest rate risk attributable to the variable rate debt noted as of June 30, 2024 and December 31, 2023, respectively.
(1)SOFR cap strike rate of 4.15%.
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Schedule of Carrying Amount and Fair Value of Financial Instruments | The table below summarizes the carrying amount and fair value of these financial instruments as of June 30, 2024 and December 31, 2023, respectively.
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | 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 deferred stock units) outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock (including deferred stock units) 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 three and six months ended June 30, 2024 and 2023.
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Organization (Details) |
Jun. 30, 2024
property
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of properties | 5 |
Basis of Presentation (Details) |
6 Months Ended |
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Jun. 30, 2024
segment
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Revenue Recognition - Schedule of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Disaggregation of Revenue [Line Items] | ||||
Lease revenues | $ 51,288 | $ 51,512 | $ 110,634 | $ 102,548 |
Rental revenues | 53,392 | 53,673 | 114,789 | 106,614 |
Parking revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1,185 | 1,114 | 2,315 | 2,210 |
Tenant services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 919 | $ 1,047 | $ 1,840 | $ 1,856 |
Revenue Recognition - Schedule of Components of Lease Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Revenue from Contract with Customer [Abstract] | ||||
Fixed lease revenues | $ 34,400 | $ 34,839 | $ 76,934 | $ 69,563 |
Variable lease revenues | 16,888 | 16,673 | 33,700 | 32,985 |
Lease revenues | $ 51,288 | $ 51,512 | $ 110,634 | $ 102,548 |
Real Estate Sale (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
May 19, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Real Estate [Line Items] | |||||
Proceeds from sale of real estate | $ 0 | $ 67,821 | |||
Net gain on sale of real estate | $ 0 | $ 53,952 | $ 0 | $ 53,952 | |
Rego Park III Land Parcel | |||||
Real Estate [Line Items] | |||||
Proceeds from sale of real estate | $ 71,060 | ||||
Net proceeds from sale of land | 67,821 | ||||
Net gain on sale of real estate | $ 53,952 |
Related Party Transactions - Schedule of Fees to Vornado (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Related Party Transaction [Line Items] | ||||
Fees to related party | $ 7,541 | $ 3,090 | $ 9,930 | $ 5,240 |
Company management fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 700 | 700 | 1,400 | 1,400 |
Development fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 111 | 0 | 126 | 0 |
Leasing fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 5,517 | 129 | 5,555 | 170 |
Commission On Sale Of Real Estate Member | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 0 | 711 | 0 | 711 |
Property management, cleaning, engineering, parking and security fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | $ 1,213 | $ 1,550 | $ 2,849 | $ 2,959 |
Mortgages Payable - Additional Information (Detail) - 731 Lexington Avenue - USD ($) |
1 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 11, 2024 |
Jul. 15, 2023 |
Jun. 30, 2023 |
Jun. 09, 2023 |
|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Payments for derivative instrument | $ 11,258,000 | ||||
Mortgages | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loans, extension option | 4 months | 1 year | |||
Mortgage loans | $ 490,000,000 | $ 500,000,000 | |||
Paydown | $ 10,000,000 | ||||
Escrow amount | $ 66,808,000 | ||||
Mortgages | London Interbank Offered Rate | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Rate | 0.90% | ||||
Interest cap rate | 6.00% | ||||
Mortgages | Prime Rate | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Rate | 8.50% | ||||
Interest cap rate | 6.00% |
Stock-Based Compensation (Details) - Director - 2016 Omnibus Stock Plan - Deferred Stock Units - USD ($) |
1 Months Ended | |
---|---|---|
May 31, 2024 |
Jun. 30, 2024 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non option equity instruments granted per director (in shares) | 357 | |
Non option equity instruments market value | $ 75,000 | |
Non option equity instruments grant date fair value per grant | 56,250 | |
Non option equity instruments grant date fair value total | $ 450,000 | |
Non option equity instruments, outstanding, number (in shares) | 26,244 | |
Shares available for future grant under the plan (in shares) | 479,543 |
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivatives (included in other assets) | $ 12,800 | $ 22,608 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivatives (included in other assets) | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivatives (included in other assets) | 12,800 | 22,608 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivatives (included in other assets) | $ 0 | $ 0 |
Fair Value Measurements - Schedule of Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Carrying Amount | ||
Assets: | ||
Cash equivalents | $ 129,129 | $ 363,535 |
Liabilities: | ||
Mortgages payable (excluding deferred debt issuance costs, net) | 1,086,544 | 1,096,544 |
Level 1 | Fair Value | ||
Assets: | ||
Cash equivalents | 129,129 | 363,535 |
Level 2 | Fair Value | ||
Liabilities: | ||
Mortgages payable (excluding deferred debt issuance costs, net) | $ 1,066,388 | $ 1,071,887 |
Commitments and Contingencies (Details) |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Loss Contingencies [Line Items] | |
Standby letters of credit, outstanding | $ 900,000 |
All Risk Property and Rental Value | |
Loss Contingencies [Line Items] | |
Insurance maximum coverage per incident | 1,700,000,000 |
Terrorism Coverage Including NBCR | |
Loss Contingencies [Line Items] | |
Insurance maximum coverage per incident | 1,700,000,000 |
Insurance maximum coverage in aggregate | $ 1,700,000,000 |
NBCR | |
Loss Contingencies [Line Items] | |
Federal government responsibility (in percentage) | 80.00% |
NBCR | FNSIC | |
Loss Contingencies [Line Items] | |
Insurance deductible | $ 316,000 |
Self insured responsibility (in percentage) | 20.00% |
General Liability | |
Loss Contingencies [Line Items] | |
Insurance maximum coverage per property | $ 300,000,000 |
Insurance maximum coverage per incident | 300,000,000 |
Disease Coverage | |
Loss Contingencies [Line Items] | |
Insurance maximum coverage per incident | $ 30,000,000 |
Earnings Per Share - Additional Information (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Earnings Per Share [Abstract] | ||||
Potentially dilutive securities outstanding (in shares) | 0 | 0 | 0 | 0 |
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 8,380 | $ 64,147 | $ 24,489 | $ 75,373 |
Weighted average shares outstanding - basic (in shares) | 5,131,902 | 5,128,823 | 5,131,290 | 5,127,959 |
Weighted average shares outstanding - diluted (in shares) | 5,131,902 | 5,128,823 | 5,131,290 | 5,127,959 |
Net income per common share - basic (in usd per share) | $ 1.63 | $ 12.51 | $ 4.77 | $ 14.70 |
Net income per common share - diluted (in usd per share) | $ 1.63 | $ 12.51 | $ 4.77 | $ 14.70 |
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