Alexander’s offers scarce New York real estate and a 6.6% yield, but extreme Bloomberg concentration, leverage, and weak dividend coverage constrain upside.
Overview
Alexander’s Inc. is a passive New York City REIT owning four commercial and residential properties totaling approximately 2.11 million square feet. Vornado Realty Trust manages leasing, development, and administration and owns 32.4% of the common equity, creating meaningful alignment but leaving the trust dependent on an external manager. The portfolio combines Bloomberg’s Class A+ Midtown headquarters, Queens retail centers anchored by Costco, Target and other national tenants, and a 312-unit luxury apartment tower. **The core cash flow is unusually durable but highly concentrated:** Bloomberg represents approximately 60% of rental revenue and has extended its lease through 2040. Q2 2026 rental revenue was $54.711 million, while FFO per diluted share was $3.02 versus $2.88 a year earlier and $3.00 consensus. GAAP EPS of $30.24 was inflated by the $148.002 million gain on the Rego Park I sale. Cash and restricted cash rose to $358.345 million after $202.75 million of net sale proceeds. However, the $18.00 annual dividend yields approximately 6.6% but is poorly covered by recurring FFO. At a $272.08 reference price, consensus targets of $212.00 imply 22.08% downside. Near-term catalysts include the Target lease, retail re-leasing, debt refinancing, and the Flushing ground-lease decision.