Alexander's, Inc.

First-quarter comparable FFO was $0.63 per share, compared with $0.55 per share in the prior-year quarter, an increase of $0.08. Management said this was $0.09 above analyst consensus. Overall GAAP same-store NOI increased 3.5% year over year. The company leased 1,039,000 square feet in the quarter, including 709,000 square feet of New York office at $95 starting rents with 6.5% cash and 9.5% GAAP mark-to-markets, and average lease term of 14.7 years. New York office occupancy was 84.4% at quarter end versus 88.8% last quarter, or 87.4% pro forma including 770 Broadway. Management reversed $17.2 million of previously over-accrued rent expense in Q1 from the PENN 1 ground rent reset. For 2025, comparable FFO is now expected to be essentially flat versus 2024 comparable FFO of $2.26 per share. The PENN 1 ground rent reset and NYU transaction are expected to increase GAAP earnings by approximately $36 million combined, including about $25 million from NYU and $11 million from PENN 1. The NYU 770 Broadway transaction is expected to create an approximately $800 million GAAP gain in the second quarter. As of the call, the company said it had $1.4 billion of cash and $1.6 billion of undrawn credit lines, for $3 billion of immediate liquidity.

Steven Roth struck an upbeat but selective tone, arguing that Manhattan office remains a landlord’s market because supply is constrained, replacement cost is high, and demand for quality space is still strong. He emphasized that Vornado is using liquidity and asset monetizations to strengthen the balance sheet, support development at PENN and 350 Park, and increase future earnings power rather than chase distressed pricing. He was also confident that current market volatility, including tariffs and capital-market swings, would prove temporary.

Michael Franco focused on the quarter’s operating improvement and balance-sheet execution. He highlighted the $0.63 comparable FFO per share result, the $2.26 2024 baseline, and the shift in 2025 guidance to essentially flat rather than slightly down, driven partly by the better-than-expected PENN 1 ground rent outcome. He also detailed the liquidity and leverage moves: debt reduced by $915 million, cash increased by $500 million, cash balances at $1.4 billion, and immediate liquidity of $3 billion, while noting the NYU deal’s roughly $25 million annual accretion and the expected timing of growth as PENN 1 and PENN 2 fully lease up in 2027.

Analysts focused on the 2 million square foot leasing pipeline, especially how much was tied to PENN 1 and PENN 2, and management said roughly half of that pipeline is at those two assets. On PENN 2, management said it still feels good about reaching the targeted leasing milestones, but that timing by quarter is less important than getting the building fully leased at higher rents. Questions also centered on capital allocation and possible asset sales; management said cash will be used for opportunistic investments, debt paydown, and development, while reiterating that no major assets will be sold at distressed prices and that owner-occupier demand in New York is increasingly supporting high-value transactions.