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Financial report summary
?Risks
- We may be adversely affected by trends in office real estate, including work from home trends.
- All of our properties are in New York City and are affected by the economic cycles and risks inherent to this area.
- We are subject to risks that affect the general and New York City retail environments.
- Our performance and the value of an investment in us are subject to risks associated with our real estate assets and with the real estate industry.
- Real estate is a competitive business and that competition may adversely affect us.
- We may be unable to renew leases, lease vacant space or relet space as leases expire on favorable terms.
- Bloomberg represents a majority 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.
- We depend upon anchor tenants to attract shoppers at our Rego Park I and II retail properties and decisions made by these tenants, or adverse developments in the businesses of these tenants, could materially affect our financial condition and results of operations.
- Bankruptcy or insolvency of tenants may decrease our revenues, net income and available cash.
- Our business, financial condition, results of operations and cash flows have been and may continue to be adversely affected by outbreaks of highly infectious or contagious diseases.
- Some of our potential losses may not be covered by insurance.
- Actual or threatened terrorist attacks or other criminal acts may adversely affect the value of our properties and our ability to generate cash flow.
- Natural disasters and the effects of climate change could have a concentrated impact on the area where we operate and could adversely affect our results.
- Our properties are subject to transitional risks related to climate-related policy change.
- Changes to tax laws could affect REITs generally, the trading of our shares and our results of operations, both positively and negatively, in ways that are difficult to anticipate.
- Significant inflation and continuing increases in the inflation rate could adversely affect our business and financial results.
- We may acquire, develop, or redevelop properties and this may create risks.
- We are exposed to risks associated with property development, redevelopment and repositioning that could adversely affect us, including our financial condition and results of operations.
- It may be difficult to sell real estate on a timely basis, which may limit our flexibility.
- Significantly tighter capital markets and economic conditions can materially affect our liquidity, financial condition and results of operations as well as the value of an investment in our common stock.
- We have outstanding debt, and the amount of debt and its cost may continue to increase and refinancing may not be available on acceptable terms, which could affect our future operations.
- Our existing financing documents contain covenants and restrictions that may restrict our operational and financial flexibility.
- The hedge instruments we may use to manage our exposure to interest rate volatility involve risks.
- RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE
- Substantially all of our assets are owned by subsidiaries. We depend on dividends and distributions from these subsidiaries. The creditors of these subsidiaries are entitled to amounts payable to them by the subsidiaries before the subsidiaries may pay any dividends or make distributions to us.
- Alexander’s charter documents and applicable laws may hinder any attempt to acquire us.
- We may change our policies without obtaining the approval of our stockholders.
- 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.
- There may be conflicts of interest between Vornado, its affiliates and us.
- The occurrence of cyber incidents, or a deficiency in our cybersecurity, as well as other disruptions to our IT networks and related systems, could adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships or reputation, all of which could adversely affect our financial results.
- The trading price of our common stock has been volatile and may continue to fluctuate.
- 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.
- Loss of our key personnel could harm our operations and adversely affect the value of our common stock.
- We might fail to qualify or remain qualified as a REIT, and may be required to pay federal income taxes at corporate rates, which could adversely affect the value of our common stock.
- We may face possible adverse federal tax audits and changes in federal tax laws, which may result in an increase in our tax liability.
- We may face possible adverse state and local tax audits and changes in state and local tax law.
- Compliance or failure to comply with the Americans with Disabilities Act (“ADA”) or other safety regulations and requirements could result in substantial costs.
- We may incur significant costs to comply with environmental laws and environmental contamination may impair our ability to lease and/or sell real estate.
Management Discussion
- Net income for the year ended December 31, 2023 was $102,413,000 or $19.97 per diluted share, compared to $57,632,000 or $11.24 per diluted share for the year ended December 31, 2022. Net income for the year ended December 31, 2023 included $53,952,000, or $10.52 per diluted share, of income as a result of a net gain on the sale of real estate.
- Funds from operations (“FFO”) (non-GAAP) for the year ended December 31, 2023 was $81,067,000, or $15.80 per diluted share, compared to $87,090,000, or $16.99 per diluted share for the year ended December 31, 2022.