Alexander's (ALX) Financials

Alexander's (NYSE: ALX) financial performance over the past four years reveals several important trends and notable developments based on its quarterly financial statements and cash flow data.

Key positive highlights:

• Net Income remains positive and relatively stable with Q2 2025 net income at $6.12 million and consistent profitability reported each quarter going back to 2022, indicating steady earnings generation.
• Total revenue has stayed robust, with Q2 2025 total revenue at $42.7 million, reflecting solid core business performance despite some fluctuations in interest expense.
• Operating cash flow is strong and positive, as seen in Q2 2025 with net cash from continuing operations of approximately $43.6 million, supporting healthy liquidity.
• Consistent payment of dividends at $4.5 per share per quarter demonstrates the company's commitment to returning capital to shareholders.
• Depreciation and amortization expenses have been stable, indicating steady investment in premises and equipment assets which total approximately $639 million on the most recent balance sheet.
• The total common equity has generally increased over time, signaling growing net asset value for shareholders, with $145.4 million reported at Q2 2025.
• Cash and equivalents remain substantial, with $313 million on hand as of Q2 2025, providing liquidity cushion.

Neutral observations:

• Interest expenses on long-term debt have been high and somewhat volatile, reaching $12.8 million in Q2 2025, which offsets interest income and results in a negative net interest income.
• Capital expenditures fluctuate quarter to quarter, but overall investment in property and equipment remains consistent, supporting asset base maintenance.
• Debt levels remain large, with long-term debt around $988 million in recent quarters, which is typical for a real estate investment trust but requires careful management.

Potential concerns or negative trends:

• The net interest expense (interest paid vs. interest earned) has consistently been negative, impacting profitability, driven by the company’s large debt load.
• The company continues to have significant “Other Special Charges” and “Other Operating Expenses,” which have reached upwards of $25 million quarterly, weighing on operating income.
• Cash flow from financing activities reflects consistent and large cash outflows primarily related to dividend payments and debt repayments, indicating substantial capital return and debt servicing obligations.
• There are sizable swings in changes in operating assets and liabilities affecting cash flow, which introduces some volatility in operating cash generation.

Summary:

Alexander's has maintained a stable profitability trend with positive net income year-over-year, supported by strong operating cash flows and a solid asset base centered on its premises and equipment. The company demonstrates a steady commitment to shareholder dividends. However, investors should watch the elevated interest expense burden stemming from a large debt load, which impacts net interest income negatively. High other special charges and operating expenses further temper earnings quality. Liquidity remains strong with significant cash balances, but sizable capital expenditures and debt repayments require continued operational efficiency. Overall, Alexander's presents a financially stable picture with some challenges related to expense and leverage management that warrant monitoring.