Alexander's (ALX) Financials

Alexander's Inc. (NYSE: ALX) Financial Summary over the Last Three Years:

Alexander’s Inc. has shown steady financial performance with consistent net income, stable cash flow from operations, and a strong balance sheet over the period from mid-2022 through mid-2025. Below are key trends and highlights from their quarterly financial data:

• Net income has remained positive and generally stable, with quarterly consolidated net income figures staying around $6 million to $16 million in recent quarters, showing resilience in earnings through different periods.
• Net cash from continuing operating activities has been strong, with Q2 2025 reporting $43.6 million, reflecting improved operational cash generation compared to prior quarters.
• Depreciation expense has been consistent, reflecting stable investment in property and equipment; Q2 2025 recorded $9.5 million, slightly higher than prior periods, indicating ongoing asset maintenance and capital investment.
• Dividends remain consistently paid at about $23 million quarterly, demonstrating the company’s commitment to shareholder returns.
• Total assets have remained steady at approximately $1.3 billion to $1.5 billion, indicating a stable asset base primarily composed of premises and equipment (roughly $640 million) and deferred acquisition costs.
• Total equity has changed moderately but remains healthy at about $145 million to $265 million, reinforcing a solid capital structure with a tangible equity cushion.
• Interest expense on long-term debt is significant, rising to $12.8 million in Q2 2025 from approximately $5.5 million in Q2 2022, reflecting increased or more expensive borrowings which impact net interest income negatively.
• Net interest income is negative, mainly due to the high interest expense relative to interest income from securities, indicating borrowing costs outpace interest earnings.
• The company repays debt regularly (around $1-1.5 million per quarter) which helps manage leverage but the total long-term debt remains high at nearly $1 billion consistently.
• There are substantial "Other Special Charges" reported each quarter (~$25 million), which weigh on the operating expense side and reduce profitability.

Detailed Observations:

• Net cash from operating activities increased sharply in recent quarters, rising from $15.7 million in Q1 2025 to $43.6 million in Q2 2025, indicating improved operations or working capital management.
• Cash interest paid has increased from about $4.8 million in Q2 2022 to over $11 million in Q2 2025, reflecting rising borrowing costs or increased debt levels.
• Capital expenditures remain moderate and consistent, with purchases of property, leasehold improvements, and equipment around $6-9 million quarterly, supporting ongoing asset upkeep.
• Non-cash adjustments to reconcile net income fluctuate but include large values (e.g., -$48 million in Q2 2023), influencing operating cash flow volatility.
• The company’s dividend policy is consistent with $4.5 per share dividend quarterly, which is above earnings per share in recent quarters (e.g., $1.19 EPS in Q2 2025), potentially indicating reliance on cash reserves or debt for financing dividends.
• Total liabilities have slightly decreased from about $1.48 billion in mid-2022 to $1.17 billion in mid-2025, suggesting some reduction in leverage but still a substantial debt load.
• Retained earnings have increased over time, rising from approximately $190 million in Q2 2022 to $105 million by Q2 2025, after dividends, showing the company sustains profit retention after distribution.
• The company’s net interest income remains a net expense position, which may pressure future profitability amid rising interest rates.
• Weighted average diluted shares outstanding are stable around 5.1 million indicating limited dilution for shareholders.
• Operating expenses excluding special charges and depreciation have remained relatively flat, supporting operating stability despite charges affecting net income.

Summary: Alexander's Inc. shows steady earnings, strong operating cash flow, and continuous capital investment supporting its asset base. The main risks include a significant interest expense burden and sizable special charges reducing operating profitability. The consistent dividend payout underscores a shareholder-focused approach but may require monitoring versus earnings sustainability. Overall, the company maintains a solid balance sheet with stable equity and adequate cash generation to support operations.