Key Highlights

  • ALX reported third-quarter 2026 Net Income of $27.4 million, or $5.33 per share, versus $6.0 million, or $1.16 per share, a year earlier.
  • Funds from operations (non-GAAP) rose to $36.3 million, or $7.07 per diluted share, from $14.9 million, or $2.91 per share.
  • Rental revenues climbed 34.9% (calculated) to $72.1 million, helped by $18.8 million of higher straight-line Revenue from a retail Lease modification.
  • Interest and Debt expense fell to $10.9 million from $14.1 million after December 2025 Loan restructurings.
  • Cash and restricted cash reached $349.1 million at Sep 30, 2026, up from $192.2 million at year-end 2025.

A Retail Lease Termination Lifts Third-Quarter Net Income Above $27 Million

Alexander's (NYSE:ALX) disclosed results for the third quarter ended Sep 30, 2026, in a filing dated Nov 2, 2026. Net income was $27.4 million, or $5.33 per diluted share, compared with $6.0 million, or $1.16 per share, a year earlier. Funds from operations, a non-GAAP measure, came in at $36.3 million, or $7.07 per share, against $14.9 million, or $2.91 per share.

Alexander's is a real estate Investment trust that leases, manages, develops and redevelops four New York City properties totaling about 2.1 million square feet. An affiliated REIT manages it and handles leasing and development under fee arrangements.

Rental revenues rose to $72.1 million from $53.4 million, an increase of $18.6 million. The filing attributes $18.8 million of that gain to higher straight-line revenue after a department-store tenant at the Rego Park shopping center modified its lease and terminated early in August 2026.

Termination Payment, Property Sale and Lower Interest Costs Shape the Income Statement

Under the June 26, 2026 modification, the tenant agreed to pay about $29.0 million to end its 135,000 square foot lease, and paid the remaining $25.1 million on Aug 2, 2026. Alexander's simultaneously signed a 15-year lease with a big-box retailer for the space.

Net Operating Income (NOI) rose to $46.2 million from $26.7 million, or about 72.7% (calculated). Interest and debt expense dropped $3.1 million to $10.9 million after the December 2025 restructuring of the 731 Lexington Avenue retail loan and the Rego Park shopping center refinancing.

Nine-Month Net Income of $187.4 Million Includes a $148.0 Million Rego Park I Gain

For the nine months ended Sep 30, 2026, net income reached $187.4 million, or $36.48 per share, versus $24.4 million, or $4.75 per share. The company sold its Rego Park I property in Queens on May 28, 2026 for $235.5 million, booking a $148.0 million gain, equal to $28.81 per share. Nine-month FFO was $65.3 million, or $12.70 per share, compared with $50.5 million, or $9.84 per share.

Commercial occupancy stood at 94.6% and residential occupancy at 98.1% on Sep 30, 2026. Mortgages payable totaled $842.5 million in principal, with the nearest maturity, a $94.0 million loan on The Alexander apartment tower, due Nov 1, 2027.

The filing flags concentration: its largest tenant, at 731 Lexington Avenue, generated $99.0 million of nine-month rental revenue, about 55% of the total, versus 60% a year earlier.

Higher Flushing Ground Rent and a $4.50 Quarterly Dividend Frame the Months Ahead

Alexander's paid dividends of $4.50 per share in the third quarter, or $13.50 for the nine months, totaling $69.4 million. Management expects Operating Cash Flow over the next 12 months, plus existing cash, to cover operations, dividends, debt service and Capital spending. From February 2027, an August 2026 arbitration ruling lifts annual ground rent at its Flushing property from $0.8 million to $5.4 million. The next report to watch covers results through Dec 31, 2026.