Alexander's, Inc. Reports $6.7 Million Net Income Amid Financial Decline

On November 4, 2024, Alexander's, Inc. announced its financial results for the third quarter ending September 30, 2024. The company reported a net income of $6.7 million, translating to $1.30 per diluted share, reflecting a decrease from the $10.8 million, or $2.10 per diluted share, reported in the same quarter of 2023. The decline in net income is attributed to a significant one-time gain related to the sale of a property in 2023 which inflated the previous year's figures. For the first nine months of 2024, Alexander’s reported a net income of $31.2 million, compared to $86.1 million for the same period in the previous year. The drastic change is primarily due to the one-time gain of $54.0 million realized from the sale of the Rego Park III land parcel in 2023. Despite the drop in net income, funds from operations (FFO) increased to $57.1 million for the first nine months of 2024 from $55.5 million in 2023. The company’s revenues also experienced a slight increase, reaching $55.7 million for the third quarter of 2024, up from $55.4 million in the prior year. However, the overall drop in net income compared to last year, particularly for the third quarter, raises concerns regarding operational performance and future earnings. Analysts note that while FFO remains a useful indicator of cash generation, net income is critical for assessing overall profitability. Forward-looking statements in the report also highlight potential risks tied to market conditions and property improvement financing that might affect future earnings.