10-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10‑K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the Fiscal Year Ended: December 31, 2016

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from	to
Commission File Number:	001-06064

ALEXANDER’S, INC.

(Exact name of registrant as specified in its charter)

Delaware	51-0100517
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
210 Route 4 East, Paramus, New Jersey	07652
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (201) 587-8541

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $1 par value per share	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
YES ☒ NO ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 (d) of the Act.
YES ☐  NO ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any,
every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section  232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit
and post such files).  
☒ Yes ☐  No 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S‑K (section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10‑K or any amendment to this Form 10‑K. ☒

Indicate by check mark whether the registrant is a large accelerated filer, accelerated filer, a non-accelerated filer, or a

smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting

company” in Rule 12b-2 of the Exchange Act.

☒ Large Accelerated Filer	☐ Accelerated Filer
☐ Non-Accelerated Filer (Do not check if smaller reporting company)	☐ Smaller Reporting Company

 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES ☐  NO ☒

The aggregate market value of the voting and non-voting shares of common stock held by non-affiliates of the registrant, (i.e., by persons other than officers and directors of Alexander’s, Inc.) was $861,304,000 at June 30, 2016.

As of January 31, 2017, there were 5,107,290 shares of the registrant’s common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Part III: Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on May 18, 2017.

INDEX
	Item	Financial Information:		Page Number
Part I.	1.	Business		5
	1A.	Risk Factors		7
	1B.	Unresolved Staff Comments		16
	2.	Properties		17
	3.	Legal Proceedings		19
	4.	Mine Safety Disclosures		19
Part II.	5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
			Purchases of Equity Securities	20
	6.	Selected Financial Data		22
	7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		23
	7A.	Quantitative and Qualitative Disclosures about Market Risk		34
	8.	Financial Statements and Supplementary Data		35
	9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure		55
	9A.	Controls and Procedures		55
	9B.	Other Information		58
Part III.	10.	Directors, Executive Officers and Corporate Governance(1)		58
	11.	Executive Compensation(1)		59
	12.	Security Ownership of Certain Beneficial Owners and Management and Related
			Stockholder Matters(1)	59
	13.	Certain Relationships and Related Transactions, and Director Independence(1)		59
	14.	Principal Accounting Fees and Services(1)		59
Part IV.	15.	Exhibits, Financial Statement Schedules		60
Signatures				61

_____________________________

(1)These items are omitted in part or in whole because the registrant will file a definitive Proxy Statement pursuant to Regulation 14A under the Securities Exchange Act of 1934 with the Securities and Exchange Commission no later than 120 days after December 31, 2016, portions of which are incorporated by reference herein. 

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FORWARD-LOOKING STATEMENTS

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are not guarantees of future performance.  They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties.  Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements.  You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this Annual Report on Form 10‑K.  We also note the following forward-looking statements:  in the case of our development projects, the estimated completion date, estimated project costs and costs to complete; and estimates of dividends on shares of our common stock.  Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict.  For a further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Item 1A - Risk Factors” in this Annual Report on Form 10‑K. 

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K or the date of any document incorporated by reference.  All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.  We do not undertake any obligation to release publicly, any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Annual Report on Form 10-K.

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PART I

ITEM 1.     BUSINESS

GENERAL

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”) incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties.  All references to “we,” “us,” “our,” “Company” and “Alexander’s” refer to Alexander’s, Inc. and its consolidated subsidiaries.  We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO).

We have seven properties in the greater New York City metropolitan area consisting of:

Operating properties

·731 Lexington Avenue, a 1,311,000 square foot multi-use building, comprising the entire block bounded by Lexington Avenue, East 59^th Street, Third Avenue and East 58^th Street in Manhattan.  The building contains 889,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold.  Bloomberg L.P. (“Bloomberg”) occupies all of the office space.  The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants;

·Rego Park I, a 343,000 square foot shopping center, located on Queens Boulevard and 63^rd Road in Queens.  The center is anchored by a 195,000 square foot Sears department store, a 50,000 square foot Burlington Coat Factory, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls. In January 2017, Sears announced that it plans to close its store in the second quarter of 2017. Under the terms of the lease, Sears is obligated to pay rent through lease expiration in March of 2021;

·Rego Park II, a 609,000 square foot shopping center, adjacent to the Rego Park I shopping center in Queens.  The center is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.  In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado;

·The Alexander apartment tower, located above our Rego Park II shopping center, contains 312 units aggregating 255,000 square feet and is 98.1% leased as of December 31, 2016;

·Paramus, located at the intersection of Routes 4 and 17 in Paramus, New Jersey, consists of 30.3 acres of land that is leased to IKEA Property, Inc.; and

·Flushing, a 167,000 square foot building, located at Roosevelt Avenue and Main Street in Queens, that is sub-leased to New World Mall LLC for the remainder of our ground lease term.

Property to be developed

·Rego Park III, a 140,000 square foot land parcel adjacent to the Rego Park II shopping center in Queens, at the intersection of Junction Boulevard and the Horace Harding Service Road.

Relationship with Vornado

We are managed by, and our properties are leased and developed by, Vornado, pursuant to various agreements which expire in March of each year and are automatically renewable.  Vornado is a fully-integrated REIT with significant experience in managing, leasing, developing, and operating retail and office properties.

As of December 31, 2016, Vornado owned 32.4% of our outstanding common stock.  Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (“Interstate”), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado.  As of December 31, 2016, Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.3% of our outstanding common stock, in addition to the 2.2% they indirectly own through Vornado.  Joseph Macnow, our Executive Vice President and Chief Financial Officer, is the Executive Vice President – Finance and Chief Administrative Officer of Vornado.  Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornado.

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Significant Tenants

Bloomberg accounted for $104,590,000, $94,468,000 and $91,109,000, representing approximately 46%, 45% and 45% of our total revenues in each of the years ended December 31, 2016, 2015 and 2014, respectively.  No other tenant accounted for more than 10% of our total revenues.  If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition.  In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg.  In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data.

In January 2016, we entered into a lease amendment with Bloomberg which extends the lease term related to 192,000 square feet of office space at our 731 Lexington Avenue property to be coterminous with the other 697,000 square feet of office space leased by Bloomberg through February 2029, with a ten-year extension option.  In connection with the lease amendment, Bloomberg provided a $200,000,000 letter of credit, which amount may be reduced in certain circumstances. We may draw on this letter of credit subject to certain terms of the lease amendment, including an event of default by Bloomberg.

Competition

We operate in a highly competitive environment.  All of our properties are located in the greater New York City metropolitan area.  We compete with a large number of property owners and developers.  Principal factors of competition are the amount of rent charged, attractiveness of location and quality and breadth of services provided.  Our success depends upon, among other factors, trends of the global, national and local economies, the financial condition and operating results of current and prospective tenants and customers, the availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population and employment trends, zoning laws, and our ability to lease, sublease or sell our properties, at profitable levels.  Our success is also subject to our ability to refinance existing debt on acceptable terms as it comes due.

Employees

We currently have 71 employees.

Executive Office

Our executive office is located at 210 Route 4 East, Paramus, New Jersey, 07652 and our telephone number is (201) 587-8541.

Available Information

Copies of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports, as well as Reports on Forms 3, 4 and 5 regarding officers, directors, and 10% beneficial owners filed or furnished pursuant to Section 13(a), 15(d) or 16(a) of the Securities Exchange Act of 1934, are available free of charge on our website (www.alx-inc.com) as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”).  Also available on our website are copies of our Audit Committee Charter, Compensation Committee Charter, Code of Business Conduct and Ethics and Corporate Governance Guidelines.  In the event of any changes to these items, revised copies will be made available on our website.  Copies of these documents are also available directly from us, free of charge. 

On April 11, 2000, Vornado and Interstate filed with the SEC, the 26^th amendment to a Form 13D indicating that they, as a group, own in excess of 51% of our common stock.  This ownership level makes us a “controlled” company for the purposes of the New York Stock Exchange, Inc.’s Corporate Governance Standards (the “NYSE Rules”).  This means that we are not required to, among other things, have a majority of the members of our Board of Directors be independent under the NYSE Rules, have all of the members of our Compensation Committee be independent under the NYSE Rules or to have a Nominating Committee.  While we have voluntarily complied with a majority of the independence requirements of the NYSE Rules, we are under no obligation to do so and this situation may change at any time.

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ITEM 1a.  risk factors

Material factors that may adversely affect our business and operations are summarized below.  The risks and uncertainties described herein may not be the only ones we face.  Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business.  See “Forward-Looking Statements” contained herein on page 4.

REAL ESTATE INVESTMENTS’ VALUE AND INCOME FLUCTUATE DUE TO VARIOUS FACTORS.

The value of real estate fluctuates depending on conditions in the general economy and the real estate business.  These conditions may also adversely impact our revenues and cash flows.

The factors that affect the value of our real estate include, among other things:

·      global, national, regional and local economic conditions;

·      competition from other available space;

·      local conditions such as an oversupply of space or a reduction in demand for real estate in the area;

·      how well we manage our properties;

·      changes in market rental rates;

·      the timing and costs associated with property improvements and rentals;

·      whether we are able to pass all or portions of any increases in operating costs through to tenants;

·      changes in real estate taxes and other expenses;  

·      whether tenants and users such as customers and shoppers consider a property attractive;

·changes in space utilization by our tenants due to technology, economic conditions and business environment;

·      the financial condition of our tenants, including the extent of tenant bankruptcies or defaults;

·      availability of financing on acceptable terms or at all;

·      inflation or deflation;

·      fluctuations in interest rates;

·      our ability to obtain adequate insurance;

·      changes in zoning laws and taxation;

·      government regulation;

·      consequences of any armed conflict involving, or terrorist attack against, the United States or individual acts of violence in public spaces, including retail centers;

·      potential liability under environmental or other laws or regulations;

·      natural disasters;

·      general competitive factors; and

·climate changes.

The rents we receive and the occupancy levels at our properties may decline as a result of adverse changes in any of these factors.  If our rental revenues and/or occupancy levels decline, we generally would expect to have less cash available to pay our indebtedness and for distribution to our stockholders.  In addition, some of our major expenses, including mortgage payments, real estate taxes and maintenance costs generally do not decline when the related rents decline.

Capital markets and economic conditions can materially affect our liquidity, financial condition and results of operations, as well as the value of our debt and equity securities.

There are many factors that can affect the value of our equity securities and any debt securities we may issue in the future, including the state of the capital markets and economy.  Demand for office and retail space may decline nationwide as it did in 2008 and 2009, due to the economic downturn, bankruptcies, downsizing, layoffs and cost cutting.  Government action or inaction may adversely affect the state of the capital markets.  The cost and availability of credit may be adversely affected by illiquid credit markets and wider credit spreads may adversely affect our liquidity and financial condition, including our results of operations, and the liquidity and financial condition of our tenants.  Our inability or the inability of our tenants to timely refinance maturing liabilities and access the capital markets to meet liquidity needs may materially affect our financial condition and results of operations and the value of our equity securities and any debt securities we may issue in the future.

7

We are subject to risks that affect the general and New York City retail environments.

Certain of our properties are New York City retail properties.  As such, these properties are affected by the general and New York City retail environments, including the level of consumer spending and consumer confidence, change in relative strengths of world currencies, unemployment rates, the threat of terrorism, increasing competition from discount retailers, outlet malls, retail websites and catalog companies, and the impact of technological change upon the retail environment generally. These factors could adversely affect the financial condition of our retail tenants and the willingness of retailers to lease space in our retail locations.

Real estate is a competitive business.

We compete with a large number of property owners and developers, some of which may be willing to accept lower returns on their investments than we are.  Principal factors of competition include rents charged, attractiveness of location, the quality of the property and breadth and quality of services provided.  Our success depends upon, among other factors, trends of the global, national and local economies, the financial condition and operating results of current and prospective tenants and customers, the availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population and employment trends, zoning laws, and our ability to lease, sublease or sell our properties, at profitable levels. 

We depend on leasing space to tenants on economically favorable terms and collecting rent from tenants who may not be able to pay.

Our financial results depend significantly on leasing space in our properties to tenants on economically favorable terms.  In addition, because a majority of our income is derived from renting real property, our income, funds available to pay indebtedness and funds available for distribution to stockholders will decrease if certain of our tenants cannot pay their rent or if we are not able to maintain our occupancy levels on favorable terms.  If a tenant does not pay its rent, we might not be able to enforce our rights as landlord without delays and might incur substantial legal and other costs.  During periods of economic adversity, there may be an increase in the number of tenants that cannot pay their rent and an increase in vacancy rates.

We may be unable to renew leases or relet space as leases expire.

When our tenants decide not to renew their leases upon their expiration, we may not be able to relet the space. Even if tenants do renew or we can relet the space, the terms of renewal or reletting, taking into account among other things, the cost of improvements to the property and leasing commissions, may be less favorable than the terms in the expired leases. In addition, changes in space utilization by our tenants may impact our ability to renew or relet space without the need to incur substantial costs in renovating or redesigning the internal configuration of the relevant property. If we are unable to promptly renew the leases or relet the space at similar rates or if we incur substantial costs in renewing or reletting the space, our cash flow and ability to service debt obligations and pay dividends and distributions to security holders could be adversely affected.

Bankruptcy or insolvency of tenants may decrease our revenues, net income and available cash.

From time to time, some of our tenants have declared bankruptcy, and other tenants may declare bankruptcy or become insolvent in the future.  The bankruptcy or insolvency of a major tenant could cause us to have difficulty leasing the remainder of the affected property.  Our leases generally do not contain restrictions designed to ensure the creditworthiness of our tenants.  As a result, the bankruptcy or insolvency of a major tenant could result in a lower level of net income and funds available to pay our indebtedness or make distributions to stockholders. 

731 Lexington Avenue accounts for a substantial portion of our revenues.  Loss of or damage to the building would adversely affect our financial condition and results of operations.

731 Lexington Avenue accounted for $147,567,000, $137,411,000 and $133,024,000, representing approximately 65%, 66% and 66% of our total revenues in each of the years ended December 31, 2016, 2015 and 2014, respectively.  Loss of or damage to the building in excess of our insurance coverage, including as a result of a terrorist attack, would adversely affect our results of operations and financial condition.

Bloomberg represents a significant portion of our revenues.  Loss of Bloomberg as a tenant or deterioration in Bloomberg’s credit quality could adversely affect our financial condition and results of operations.

Bloomberg accounted for $104,590,000, $94,468,000 and $91,109,000, representing approximately 46%, 45% and 45% of our total revenues in each of the years ended December 31, 2016, 2015 and 2014, respectively.  No other tenant accounted for more than 10% of our total revenues.  If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition.

8

We face risks associated with our tenants being designated “Prohibited Persons” by the Office of Foreign Assets Control and   similar requirements. 

Pursuant to Executive Order 13224 and other laws, the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”) maintains a list of persons designated as terrorists or who are otherwise blocked or banned (“Prohibited Persons”) from conducting business or engaging in transactions in the United States and thereby restricts our doing business with such persons. In addition, our leases, loans and other agreements may require us to comply with OFAC and related requirements, and any failure to  do so may result in a breach of such agreements.  If a tenant or other party with whom we conduct business is placed on the OFAC list or is otherwise a party with whom we are prohibited from doing business, we may be required to terminate the lease or other agreement.  Any such termination could result in a loss of revenue or otherwise negatively affect our financial results and cash flows.

Our business and operations would suffer in the event of system failures. 

Despite system redundancy, the implementation of security measures and the existence of a disaster recovery plan for our internal information technology systems, our systems are vulnerable to damages from any number of sources, including computer viruses, unauthorized access, energy blackouts, natural disasters, terrorism, war and telecommunication failures.  Any system failure or accident that causes interruptions in our operations could result in a material disruption to our business.  We may also incur additional costs to remedy damages caused by such disruptions.

The occurrence of cyber incidents, or a deficiency in our cybersecurity, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships, all of which could negatively impact our financial results.

We face risks associated with security breaches, whether through cyber attacks or cyber intrusions over the Internet, malware, computer viruses, attachments to e-mails, persons who access our systems from inside or outside our organization, and other significant disruptions of our IT networks and related systems. The risk of a security breach or disruption, particularly through cyber attack or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Our IT networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations (including managing our building systems) and, in some cases, may be critical to the operations of certain of our tenants. Although we make efforts to maintain the security and integrity of these types of IT networks and related systems, and we have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed to not be detected and, in fact, may not be detected. Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us to entirely mitigate this risk.

A security breach or other significant disruption involving our IT networks and related systems could disrupt the proper functioning of our networks and systems and therefore our operations and/or those of certain of our tenants; result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of, proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or which could expose us to damage claims by third-parties for disruptive, destructive or otherwise harmful purposes and outcomes; result in our inability to maintain the building systems relied upon by our tenants for the efficient use of their leased space; require significant management attention and resources to remedy any damages that result; subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or damage our reputation among our tenants and investors generally. Any or all of the foregoing could have a material adverse effect on our results of operations, financial condition and cash flows.

9

We may incur significant costs to comply with environmental laws and environmental contamination may impair our ability to lease and/or sell real estate.

Our operations and properties are subject to various federal, state and local laws and regulations concerning the protection of the environment including air and water quality, hazardous or toxic substances and health and safety.  Under some environmental laws, a current or previous owner or operator of real estate may be required to investigate and clean up hazardous or toxic substances released at a property.  The owner or operator may also be held liable to a governmental entity or to third parties for property damage or personal injuries and for investigation and clean-up costs incurred by those parties because of the contamination.  These laws often impose liability without regard to whether the owner or operator knew of the release of the substances or caused such release.  The presence of contamination or the failure to remediate contamination may impair our ability to sell or lease real estate or to borrow using the real estate as collateral.  Other laws and regulations govern indoor and outdoor air quality including those that can require the abatement or removal of asbestos-containing materials in the event of damage, demolition, renovation or remodeling and also govern emissions of and exposure to asbestos fibers in the air.  The maintenance and removal of lead paint and certain electrical equipment containing polychlorinated biphenyls (PCBs) are also regulated by federal and state laws.  We are also subject to risks associated with human exposure to chemical or biological contaminants such as molds, pollens, viruses and bacteria which, above certain levels, can be alleged to be connected to allergic or other health effects and symptoms in susceptible individuals.  We could incur fines for environmental compliance and be held liable for the costs of remedial action with respect to the foregoing regulated substances or related claims arising out of environmental contamination or human exposure at or from our properties.

Each of our properties has been subjected to varying degrees of environmental assessment at various times.  To date, these environmental assessments have not revealed any environmental condition material to our business.  However, identification of new compliance concerns or undiscovered areas of contamination, changes in the extent or known scope of contamination, human exposure to contamination or changes in cleanup or compliance requirements could result in significant costs to us.

In addition, we may become subject to costs or taxes, or increases therein, associated with natural resource or energy usage (such as a “carbon tax”).  These costs or taxes could increase our operating costs and decrease the cash available to pay our obligations or distribute to equity holders.

Some of our potential losses may not be covered by insurance.

We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, and all-risk property and rental value insurance coverage with limits of $1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties.

Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020.  Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate.  Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to FNSIC.  For NBCR acts, FNSIC is responsible for a $348,000 deductible ($293,000 effective January 1, 2017) and 16% of the balance (17% effective January 1, 2017) of a covered loss, and the Federal government is responsible for the remaining 84% (83% effective January 1, 2017) of a covered loss.  We are ultimately responsible for any loss incurred by FNSIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism.  However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future.  We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.

Our mortgage loans are non-recourse to us and contain customary covenants requiring us to maintain insurance.  Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future.  If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance or refinance our properties.

Compliance or failure to comply with the Americans with Disabilities Act or other safety regulations and requirements could result in substantial costs.

The Americans with Disabilities Act (“ADA”) generally requires that public buildings, including our properties, meet certain federal requirements related to access and use by disabled persons.  Noncompliance could result in the imposition of fines by the federal government or the award of damages to private litigants and/or legal fees to their counsel.  If, under the ADA, we are required to make substantial alterations and capital expenditures in one or more of our properties, including the removal of access barriers, it could adversely affect our financial condition and results of operations, as well as the amount of cash available for distribution to stockholders.

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Our properties are subject to various federal, state and local regulatory requirements, such as state and local fire and life safety requirements.  If we fail to comply with these requirements, we could incur fines or private damage awards.  We do not know whether existing requirements will change or whether compliance with future requirements will require significant unanticipated expenditures that will affect our cash flow and results of operations.

We depend upon anchor tenants to attract shoppers at our Rego Park I and II retail properties.

Our Rego Park I and II retail properties are anchored by well-known department stores and other tenants who generate shopping traffic.  The value of these properties would be adversely affected if our anchor tenants failed to meet their contractual obligations, sought concessions in order to continue operations or ceased their operations, including as a result of bankruptcy.  If the sales of stores operating in our properties were to decline significantly due to economic conditions, closing of anchors or for other reasons, tenants may be unable to pay their minimum rents or expense recovery charges.  In the event of a default by a tenant or anchor, we may experience delays and costs in enforcing our rights as landlord. In January 2017, Sears announced that it plans to close its store in the second quarter of 2017. Under the terms of the lease, Sears is obligated to pay rent through lease expiration in March of 2021.

OUR INVESTMENTS ARE CONCENTRATED IN THE GREATER NEW YORK CITY METROPOLITAN AREA. CIRCUMSTANCES AFFECTING THIS AREA GENERALLY COULD ADVERSELY AFFECT OUR BUSINESS.

All of our properties are in the greater New York City metropolitan area and are affected by the economic cycles and risks inherent in that area.

All of our revenues come from properties located in the greater New York City metropolitan area.  Real estate markets are subject to economic downturns and we cannot predict how economic conditions will impact this market in either the short-term or long-term.  Declines in the economy or declines in the real estate market in this area could hurt our financial performance and the value of our properties.  In addition to the factors affecting the national economic condition generally, the factors affecting economic conditions in this area include:

·      financial performance and productivity of the media, advertising, financial, technology, retail, insurance and real estate industries;

·      unemployment levels;

·      business layoffs or downsizing;

·      industry slowdowns;

·      relocations of businesses;

·      changing demographics;

·      increased telecommuting and use of alternative work places;

·changes in the number of domestic and international tourists to our markets (including, as a result of changes in the relative strengths of world currencies);

·      infrastructure quality; and

·      any oversupply of, or reduced demand for, real estate.

It is impossible for us to assess the future effects of trends in the economic and investment climates of the greater New York City metropolitan region, and more generally of the United States, on the real estate market in this area.  Local, national or global economic downturns, would negatively affect our business and profitability.

Terrorist attacks, such as those of September 11, 2001 in New York City, may adversely affect the value of our properties and our ability to generate cash flow.

All of our properties are located in the greater New York City metropolitan area, and our most significant property, 731 Lexington Avenue, is located on Lexington Avenue and 59^th Street in Manhattan.  In response to a terrorist attack or the perceived threat of terrorism, tenants in this area may choose to relocate their businesses to less populated, lower-profile areas of the United States that are not as likely to be targets of future terrorist activity and fewer customers may choose to patronize businesses in this area.  This would trigger a decrease in the demand for space in these markets, which could increase vacancies in our properties and force us to lease our properties on less favorable terms.  As a result, the value of our properties and the level of our revenues could decline materially.

Natural disasters and the effects of climate change could have a concentrated impact on the area which we operate and could adversely impact our results.

Our investments are in the greater New York City metropolitan area and since they are concentrated along the Eastern Seaboard, natural disasters, including hurricanes, could impact our properties.  Potentially adverse consequences of “global warming” could similarly have an impact on our properties.  As a result, we could become subject to significant losses and/or repair costs which may or may not be fully covered by insurance and to the risk of business interruption.  The incurrence of these losses, costs or business interruptions may adversely affect our operating and financial results.

11

WE MAY ACQUIRE OR SELL ASSETS OR DEVELOP PROPERTIES.  OUR FAILURE OR INABILITY TO CONSUMMATE THESE TRANSACTIONS OR MANAGE THESE TRANSACTIONS COULD ADVERSELY AFFECT OUR OPERATIONS AND FINANCIAL RESULTS.

We may acquire or develop properties and this may create risks, including failing to complete such activities on time or within budget, competition for such activities that could increase our costs, being unable to lease newly acquired, developed or redeveloped properties at rents sufficient to cover our costs, difficulties in integrating acquisitions and weaker than expected performance.

Although our stated business strategy is not to engage in acquisitions, we may acquire or develop properties when we believe that an acquisition or development project is otherwise consistent with our business strategy.  We may not, however, succeed in consummating desired acquisitions or in completing developments on time or within budget.  In addition, we may face competition in pursuing acquisition or development opportunities that could increase our costs.  When we do pursue a project or acquisition, we may not succeed in leasing newly-developed, redeveloped or acquired properties at rents sufficient to cover costs of acquisition, development or redevelopment and operations.  Difficulties in integrating acquisitions may prove costly or time-consuming and could divert management’s attention.  Acquisitions or developments in new markets or types of properties where we do not have the same level of market knowledge may result in weaker than anticipated performance.  We may abandon acquisition or development opportunities that we have begun pursuing and consequently fail to recover expenses already incurred and have devoted management time to a matter not consummated. 

It may be difficult to buy and sell real estate quickly, which may limit our flexibility.

Real estate investments are relatively difficult to buy and sell quickly.  Consequently, we may have limited ability to vary our portfolio promptly in response to changes in economic or other conditions.  Moreover, our ability to buy, sell, or finance real estate assets may be adversely affected during periods of uncertainty or unfavorable conditions in the credit markets as we, or potential buyers of our assets, may experience difficulty in obtaining financing.

We have an investment in marketable equity securities.  The value of this investment may decline.

We have an investment in Macerich, a retail shopping center company.  As of December 31, 2016, this investment had a carrying amount of $37,918,000.  A significant decline in the value of this investment due to, among other reasons, Macerich’s operating performance or economic or market conditions, may result in the recognition of an impairment loss, which could be material.

OUR ORGANIZATIONAL AND FINANCIAL STRUCTURE GIVES RISE TO OPERATIONAL AND FINANCIAL RISKS.

Substantially all of our assets are owned by subsidiaries.  We depend on dividends and distributions from these subsidiaries.  The creditors of these subsidiaries are entitled to amounts payable to them by the subsidiaries before the subsidiaries may pay any dividends or distributions to us.

Substantially all of our properties and assets are held through our subsidiaries.  We depend on cash distributions and dividends from our subsidiaries for substantially all of our cash flow.  The creditors of each of our direct and indirect subsidiaries are entitled to payment of that subsidiary’s obligations to them when due and payable before that subsidiary may make distributions or dividends to us.  Thus, our ability to pay dividends, if any, to our security holders depends on our subsidiaries’ ability to first satisfy their obligations to their creditors and our ability to satisfy our obligations, if any, to our creditors.

In addition, our participation in any distribution of the assets of any of our direct or indirect subsidiaries upon the liquidation, reorganization or insolvency of the subsidiary, is only after the claims of the creditors, including trade creditors, and preferred security holders, if any, of the applicable direct or indirect subsidiaries are satisfied.

Our existing financing documents contain covenants and restrictions that may restrict our operational and financial flexibility.

As of December 31, 2016, we had outstanding mortgage indebtedness of $1,056,147,000, secured by four of our properties.  These mortgages contain covenants that limit our ability to incur additional indebtedness on these properties, provide for lender approval of tenants’ leases in certain circumstances, and provide for yield maintenance or defeasance premiums to prepay them.  These mortgages may significantly restrict our operational and financial flexibility.  In addition, if we were to fail to perform our obligations under existing indebtedness or become insolvent or were liquidated, secured creditors would be entitled to payment in full from the proceeds of the sale of the pledged assets prior to any proceeds being paid to other creditors or to any holders of our securities.  In such an event, it is possible that we would have insufficient assets remaining to make payments to other creditors or to any holders of our securities. 

12

We have a substantial amount of indebtedness that could affect our future operations.

As of December 31, 2016, total debt outstanding was $1,056,147,000. We are subject to the risks normally associated with debt financing, including the risk that our cash flow from operations will be insufficient to meet required debt service. Our debt service costs generally will not be reduced if developments at the property, such as the entry of new competitors or the loss of major tenants, cause a reduction in the income from the property. Should such events occur, our operations may be adversely affected. If a property is mortgaged to secure payment of indebtedness and income from such property is insufficient to pay that indebtedness, the property could be foreclosed upon by the mortgagee resulting in a loss of income and a decline in our total asset value.

We have outstanding debt, and the amount of debt and its cost may increase and refinancing may not be available on acceptable terms.

As of December 31, 2016, total debt outstanding was $1,056,147,000 and our ratio of total debt to total enterprise value was 35.8%.  “Enterprise value” means the market equity value of our common stock, plus debt, less cash and cash equivalents at such date.  In addition, we have significant debt service obligations.  For the year ended December 31, 2016, our scheduled cash payments for principal and interest were $22,957,000.  In the future, we may incur additional debt, and thus increase the ratio of total debt to total enterprise value.  If our level of indebtedness increases, there may be an increased risk of default which could adversely affect our financial condition and results of operations.  In addition, in a rising interest rate environment, the cost of refinancing our existing debt and any new debt or market rate security or instrument may increase.  Continued uncertainty in the equity and credit markets may negatively impact our ability to obtain financing on reasonable terms or at all, which may negatively affect our ability to refinance our debt.   

We might fail to qualify or remain qualified as a REIT, and may be required to pay income taxes at corporate rates.

Although we believe that we will remain organized and will continue to operate so as to qualify as a REIT for federal income tax purposes, we might fail to remain qualified.  Qualification as a REIT for federal income tax purposes is governed by highly technical and complex provisions of the Internal Revenue Code (the “Code”) for which there are only limited judicial or administrative interpretations and depends on various facts and circumstances that are not entirely within our control.  In addition, legislation, new regulations, administrative interpretations or court decisions may significantly change the relevant tax laws and/or the federal income tax consequences of qualifying as a REIT.

If, with respect to any taxable year, we fail to maintain our qualification as a REIT and do not qualify under statutory relief provisions, we could not deduct distributions to stockholders in computing our taxable income and would have to pay federal income tax on our taxable income at regular corporate rates. The federal income tax payable would include any applicable alternative minimum tax. If we had to pay federal income tax, the amount of money available to distribute to stockholders and pay our indebtedness would be reduced for the year or years involved, and we would no longer be required to make distributions to stockholders. In addition, we would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification was lost, unless we were entitled to relief under the relevant statutory provisions.

We face possible adverse changes in tax laws, which may result in an increase in our tax liability.

From time to time changes in state and local tax laws or regulations are enacted, which may result in an increase in our tax liability.  The shortfall in tax revenues for states and municipalities in recent years may lead to an increase in the frequency and size of such changes.  If such changes occur, we may be required to pay additional taxes on our assets or income.  These increased tax costs could adversely affect our financial condition and results of operations and the amount of cash available for payment of dividends.

Loss of our key personnel could harm our operations and adversely affect the value of our common stock.

We are dependent on the efforts of Steven Roth, our Chief Executive Officer.  Although we believe that we could find a replacement, the loss of his services could harm our operations and adversely affect the value of our common stock.

13

ALEXANDER’S CHARTER DOCUMENTS AND APPLICABLE LAW MAY HINDER ANY ATTEMPT TO ACQUIRE US.

Provisions in Alexander’s certificate of incorporation and by laws, as well as provisions of the Code and Delaware corporate law, may delay or prevent a change in control of the Company or a tender offer, even if such action might be beneficial to stockholders, and limit the stockholders’ opportunity to receive a potential premium for their shares of common stock over then prevailing market prices.

Primarily to facilitate maintenance of its qualification as a REIT, Alexander’s certificate of incorporation generally prohibits ownership, directly, indirectly or beneficially, by any single stockholder of more than 9.9% of the outstanding shares of preferred stock of any class or 4.9% of outstanding common stock of any class.  The Board of Directors may waive or modify these ownership limits with respect to one or more persons if it is satisfied that ownership in excess of these limits will not jeopardize Alexander’s status as a REIT for federal income tax purposes.  In addition, the Board of Directors has, subject to certain conditions and limitations, exempted Vornado and certain of its affiliates from these ownership limitations.  Stock owned in violation of these ownership limits will be subject to the loss of rights and other restrictions.  These ownership limits may have the effect of inhibiting or impeding a change in control.

Alexander’s Board of Directors is divided into three classes of directors.  Directors of each class are chosen for three-year staggered terms.  Staggered terms of directors may have the effect of delaying or preventing changes in control or management, even though changes in management or a change in control might be in the best interest of our stockholders.

In addition, Alexander’s charter documents authorize the Board of Directors to:

·      cause Alexander’s to issue additional authorized but unissued common stock or preferred stock;

·      classify or reclassify, in one or more series, any unissued preferred stock;

·      set the preferences, rights and other terms of any classified or reclassified stock that Alexander’s issues; and

·      increase, without stockholder approval, the number of shares of beneficial interest that Alexander’s may issue.

The Board of Directors could establish a series of preferred stock with terms that could delay, deter or prevent a change in control of Alexander’s or other transaction that might involve a premium price or otherwise be in the best interest of our stockholders, although the Board of Directors does not, at present, intend to establish a series of preferred stock of this kind.  Alexander’s charter documents contain other provisions that may delay, deter or prevent a change in control of the Company or other transaction that might involve a premium price or otherwise be in the best interest of our stockholders.

In addition, Vornado, Interstate and its three general partners (each of whom are both trustees of Vornado and Directors of Alexander’s) together beneficially own approximately 58.7% of our outstanding shares of common stock.  This degree of ownership is likely to reduce the possibility of a tender offer or an attempt to change control of the Company by a third party.

We may change our policies without obtaining the approval of our stockholders.

Our operating and financial policies, including our policies with respect to acquisitions of real estate or other assets, growth, operations, indebtedness, capitalization and dividends, are exclusively determined by our Board of Directors.  Accordingly, our stockholders do not control these policies.

14

OUR OWNERSHIP STRUCTURE AND RELATED-PARTY TRANSACTIONS MAY GIVE RISE TO CONFLICTS OF INTEREST.

Steven Roth, Vornado and Interstate may exercise substantial influence over us.  They and some of our other directors and officers have interests or positions in other entities that may compete with us.

As of December 31, 2016, Interstate and its partners owned approximately 7.1% of the common shares of beneficial interest of Vornado and approximately 26.3% of our outstanding common stock.  Steven Roth, David Mandelbaum and Russell B. Wight, Jr. are the partners of Interstate.  Mr. Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Chairman of the Board of Trustees and Chief Executive Officer of Vornado and the Managing General Partner of Interstate.  Mr. Wight and Mr. Mandelbaum are both trustees of Vornado and members of our Board of Directors.  In addition, Vornado manages and leases the real estate assets of Interstate.

As of December 31, 2016, Vornado owned 32.4% of our outstanding common stock, in addition to the 26.3% owned by Interstate and its partners.  In addition to the relationships described in the immediately preceding paragraph, Dr. Richard West is a trustee of Vornado and a member of our Board of Directors and Joseph Macnow is our Executive Vice President and Chief Financial Officer and the Executive Vice President – Finance and Chief Administrative Officer of Vornado.  Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornado.

Because of their overlapping interests, Vornado, Mr. Roth, Interstate and the other individuals noted in the preceding paragraphs may have substantial influence over Alexander’s, and on the outcome of any matters submitted to Alexander’s stockholders for approval.  In addition, certain decisions concerning our operations or financial structure may present conflicts of interest among Vornado, Messrs. Roth, Mandelbaum and Wight and Interstate and other security holders.  Vornado, Mr. Roth and Interstate may, in the future, engage in a wide variety of activities in the real estate business which may result in conflicts of interest with respect to matters affecting us, such as, which of these entities or persons, if any, may take advantage of potential business opportunities, the business focus of these entities, the types of properties and geographic locations in which these entities make investments, potential competition between business activities conducted, or sought to be conducted, by us, competition for properties and tenants, possible corporate transactions such as acquisitions, and other strategic decisions affecting the future of these entities.

There may be conflicts of interest between Vornado, its affiliates and us.

Vornado manages, develops and leases our properties under agreements that have one-year terms expiring in March of each year, which are automatically renewable.  Because we share common senior management with Vornado and because four of the trustees of Vornado are on our Board of Directors, the terms of the foregoing agreements and any future agreements may not be comparable to those we could have negotiated with an unaffiliated third party.

For a description of Interstate’s ownership of Vornado and Alexander’s, see “Steven Roth, Vornado and Interstate may exercise substantial influence over us.  They and some of our other directors and officers have interests or positions in other entities that may compete with us.” above.

15

THE NUMBER OF SHARES OF ALEXANDER’S COMMON STOCK AND THE MARKET FOR THOSE SHARES GIVE RISE TO VARIOUS RISKS.

The price of our common shares has been volatile and may fluctuate.

The trading price of our common shares has been volatile and may continue to fluctuate widely as a result of a number of factors, many of which are outside of our control.  In addition, the stock market is subject to fluctuations in the share prices and trading volumes that affect the market prices of the shares of many companies.  These broad market fluctuations have in the past and may in the future adversely affect the market price of our common shares.  Among the factors that could affect the price of our common shares are:

·our financial condition and performance;

·the financial condition of our tenants, including the extent of tenant bankruptcies or defaults;

·actual or anticipated quarterly fluctuations in our operating results and financial condition;

·our dividend policy;

·the reputation of REITs and real estate investments generally and the attractiveness of REIT equity securities in comparison to other equity securities, including securities issued by other real estate companies, and fixed income securities;

·uncertainty and volatility in the equity and credit markets;

·fluctuations in interest rates;

·changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs;

·failure to meet analysts’ revenue or earnings estimates;

·speculation in the press or investment community;

·strategic actions by us or our competitors, such as acquisitions or restructurings;

·the extent of institutional investor interest in us;

·the extent of short-selling of our common shares and the shares of our competitors;

·fluctuations in the stock price and operating results of our competitors;

·general financial and economic market conditions and, in particular, developments related to market conditions for REITs and other real estate related companies;

·domestic and international economic factors unrelated to our performance; and

·all other risk factors addressed elsewhere in this annual report on form 10-K.

A significant decline in our stock price could result in substantial losses for stockholders.

Alexander’s has additional shares of its common stock available for future issuance, which could decrease the market price of the common stock currently outstanding.

The interest of our current stockholders could be diluted if we issue additional equity securities.  As of December 31, 2016, we had authorized but unissued 4,826,550 shares of common stock, par value of $1.00 per share and 3,000,000 shares of preferred stock, par value $1.00 per share; of which 8,505 shares of common stock are reserved for issuance upon redemption of the deferred stock units previously granted to our Board of Directors.  In addition, 498,376 shares are available for future grant under the terms of our 2016 Omnibus Stock Plan.  These awards may be granted in the form of options, restricted stock, stock appreciation rights, deferred stock units, or other equity-based interests, and if granted, would reduce that number of shares available for future grants, provided however that an award that may be settled only in cash, would not reduce the number of shares available under the plan.  We cannot predict the impact that future issuances of common or preferred stock or any exercise of outstanding options or grants of additional equity-based interests would have on the market price of our common stock.

ITEM 1B.     UNRESOLVED STAFF COMMENTS

There are no unresolved comments from the staff of the Securities and Exchange Commission as of the date of this Annual Report on Form 10-K. 

16

ITEM 2.     properties

The following table shows the location, ownership, approximate size (excluding parking garages) and occupancy of each of our properties as of December 31, 2016.

						Average
						Annualized					Lease Expiration (s)
			Land	Building	Occupancy	Rent Per					Original		Option
Property			Acreage	Square Feet	Rate	Square Foot		(1)	Tenants		Term	(2)	Term	(3)
Operating Properties:
731 Lexington Avenue
	New York, New York
		Office		889,000	100%	$	113.95		Bloomberg L.P.		2029		2039
		Retail		83,000					The Home Depot		2025		2035
				34,000					The Container Store		2021		N/A
				27,000					Hennes & Mauritz		2019		N/A
				30,000					Various		Various		Various
				174,000	100%		185.06
			1.9	1,063,000
Rego Park I
	Queens, New York
				195,000					Sears	(4)	2021		N/A
				50,000					Burlington Coat Factory		2022		2027
				46,000					Bed Bath & Beyond		2021		N/A
				36,000					Marshalls		2021		N/A
				16,000					Old Navy		2021		N/A
			4.8	343,000	100%		40.55
Rego Park II
	Queens, New York
				145,000					Costco		2034		2059
				135,000					Century 21		2030		2050
				133,000					Kohl’s		2030		2050
				47,000					Toys "R" Us/Babies "R" Us		2021		2036
				149,000					Various		Various		Various
			6.6	609,000	100%		44.79
The Alexander apartment tower, 312 units
	Queens, New York		-	255,000	98%		44.74	(5)	Residential		(6)		N/A
Paramus
	Paramus, New Jersey		30.3	-	100%		-		IKEA (ground lessee)		2041		N/A
Flushing
	Queens, New York (ground leased
	through January 2037)		1	167,000	100%		17.36		New World Mall LLC		2027		2037
Property to be Developed:
Rego Park III, adjacent to Rego Park II
	Queens, New York		3.2	-	-		-		-		-		-
				2,437,000
(1)	Represents the contractual weighted average rent per square foot, which excludes the impact of tenant concessions (such as free rent) and tenant reimbursements, as of
	December 31, 2016.  For a discussion of our leasing activity, see Item 7 - Overview - Square Footage, Occupancy and Leasing Activity.
(2)	Represents  the year in  which the tenant's lease  expires, without consideration of any renewal or extension options. Lease expiration dates are based on noncancellable
	lease terms and do not extend beyond any early termination rights that tenants may have under their lease.
(3)	Represents the year in which the tenant's lease expires if all renewal or extension options are exercised.
(4)	In January 2017, Sears announced that it  plans to close its store in the second  quarter of 2017. Under  the  terms of the lease,  Sears is obligated to pay rent through lease
	expiration in March of 2021.
(5)	Average monthly rent per unit is $3,041.
(6)	Residential tenants have one or two year leases.

17

ITEM 2.        PROPERTIES – continued

Operating Properties

731 Lexington Avenue

731 Lexington Avenue, a 1,311,000 square foot multi-use building, comprises the entire block bounded by Lexington Avenue, East 59^th Street, Third Avenue and East 58^th Street in Manhattan, New York, and is situated in the heart of one of Manhattan’s busiest business and shopping districts, with convenient access to several subway and bus lines. The property is located across the street from Bloomingdale’s flagship store and only a few blocks away from Fifth Avenue and 57^th Street.  The building contains 889,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold.  Bloomberg occupies all of the office space.  The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants.

In January 2016, we entered into a lease amendment with Bloomberg which extends the lease term related to 192,000 square feet of office space at our 731 Lexington Avenue property to be coterminous with the other 697,000 square feet of office space leased by Bloomberg through February 2029, with a ten-year extension option.  In connection with the lease amendment, Bloomberg provided a $200,000,000 letter of credit, which amount may be reduced in certain circumstances. We may draw on this letter of credit subject to certain terms of the lease amendment, including an event of default by Bloomberg.

The office portion of 731 Lexington Avenue is encumbered by a mortgage loan with a balance of $300,000,000 as of December 31, 2016.  The interest-only loan is at LIBOR plus 0.95% (1.65% as of December 31, 2016) and matures in March 2017, with four one-year extension options. In connection therewith, we purchased an interest rate cap with a notional amount of $300,000,000 that caps LIBOR at a rate of 6.0%. 

The retail portion of 731 Lexington Avenue is encumbered by a mortgage loan with a balance of $350,000,000 as of December 31, 2016. The interest-only loan is at LIBOR plus 1.40% (2.05% as of December 31, 2016) and matures in August 2020, with two one-year extension options.

Rego Park I

Rego Park I, a 343,000 square foot shopping center, located on Queens Boulevard and 63^rd Road in Queens, New York, is anchored by a 195,000 square foot Sears department store, a 50,000 square foot Burlington Coat Factory, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls. In January 2017, Sears announced that it plans to close its store in the second quarter of 2017. Under the terms of the lease, Sears is obligated to pay rent through lease expiration in March of 2021. The center contains a parking deck (1,241 spaces) that provides for paid parking.

In March 2016, we completed a two-year extension of the 100% cash collateralized loan with a balance of $78,246,000 as of December 31, 2016.  The loan bears interest at 0.35%, is prepayable at any time without penalty and matures in March 2018. 

Rego Park II

Rego Park II, a 609,000 square foot shopping center, adjacent to the Rego Park I shopping center in Queens, New York, is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.  In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado.  The center contains a parking deck (1,326 spaces) that provides for paid parking.

This center is encumbered by a first mortgage loan with a balance of $259,901,000 as of December 31, 2016.  The loan bears interest at LIBOR plus 1.85% (2.62% as of December 31, 2016) and matures in November 2018.

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ITEM 2.        PROPERTIES – continued

The Alexander Apartment Tower

The Alexander apartment tower, located above our Rego Park II shopping center, contains 312 units aggregating 255,000 square feet and is 98.1% leased as of December 31, 2016.

Paramus

We own 30.3 acres of land located at the intersection of Routes 4 and 17 in Paramus, New Jersey.  The land is located directly across from the Garden State Plaza regional shopping mall and is within two miles of three other regional shopping malls and ten miles of New York City.  The land has been ground leased to IKEA Property, Inc. since 2001.  The lease expires in 2041, with a purchase option in 2021 for $75,000,000.  The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 2.90%, which matures in October 2018.  The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan.  If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a gain on sale of land of approximately $60,000,000.  If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term.

Flushing

Flushing is located on Roosevelt Avenue and Main Street in the downtown, commercial section of Flushing, Queens, New York.  Roosevelt Avenue and Main Street are active shopping districts and there are many national retailers located in the area.  A subway entrance is located directly in front of the property with bus service across the street.  The property comprises a four-floor building containing 167,000 square feet and a parking garage, which is sub-leased to New World Mall LLC for the remainder of our ground lease term, which expires in 2027 and has one 10-year extension option.

Property to be Developed

Rego Park III

We own 140,000 square feet of land adjacent to the Rego Park II shopping center in Queens, New York, at the intersection of Junction Boulevard and the Horace Harding Service Road.  The land is currently being used for paid public parking. In 2016, the Company began the entitlement process.

ITEM 3.        LEGAL PROCEEDINGS

We are from time to time involved in legal actions arising in the ordinary course of business.  In our opinion, after consultation with our legal counsel, the outcome of such matters will not have a material effect on our financial condition, results of operations or cash flows. 

On June 24, 2014, Sears Roebuck and Co. (“Sears”) filed a lawsuit in the Supreme Court of the State of New York against Vornado and us (and certain of our subsidiaries) with regard to space that Sears leases at our Rego Park I property alleging that the defendants are liable for harm Sears has suffered as a result of (a) water intrusions into the premises, (b) two fires in February 2014 that caused damages to those premises, and (c) alleged violations of the Americans with Disabilities Act in the premises’ parking garage.  Sears asserted various causes of actions for damages and sought to compel compliance with landlord’s obligations to repair the premises and to provide security, and to compel us to abate a nuisance that Sears claims was a cause of the water intrusions into its premises.  In addition to injunctive relief, Sears sought, among other things, damages of not less than $4 million and future damages it estimated would not be less than $25 million. In March 2016, Sears withdrew its claim for future damages leaving a remaining claim for property damages, which we estimate to be approximately $650,000 based on information provided by Sears. We intend to defend the remaining claim vigorously. The amount or range of reasonable possible losses, if any, is not expected to be greater than $650,000.

ITEM 4.        MINE SAFETY DISCLOSURES

Not applicable.

19

PART II

ITEM 5.      MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is listed on the New York Stock Exchange under the symbol “ALX.”  Set forth below are the high and low sales prices for the shares of our common stock for each full quarterly period within the two most recent years and any dividends paid per share during such periods.

	Year Ended December 31,
	2016						2015
Quarter	High		Low		Dividends		High		Low		Dividends
First	$	405.89	$	350.03	$	4.00	$	486.25	$	411.49	$	3.50
Second		411.53		364.01		4.00		468.25		390.56		3.50
Third		450.04		405.14		4.00		434.50		356.00		3.50
Fourth		451.99		369.33		4.00		410.51		360.01		3.50

On January 18, 2017, we increased our regular quarterly dividend to $4.25 per share (a new indicated annual rate of $17.00 per share).  As of January 31, 2017, there were approximately 251 holders of record of our common stock. 

Recent Sales of Unregistered Securities

During 2016,we did not sell any unregistered securities.

Information relating to compensation plans under which our equity securities are authorized for issuance is set forth under Part III, Item 12 of this Annual Report on Form 10-K and such information is incorporated by reference herein.

Recent Purchases of Equity Securities

During 2016, we did not repurchase any of our equity securities.

20

PerformanceGraph 

The following graph is a comparison of the five-year cumulative return of our common stock, the Standard & Poor’s 500 Index (the “S&P 500 Index”) and the National Association of Real Estate Investment Trusts’ (“NAREIT”) All Equity Index, a peer group index.  The graph assumes that $100 was invested on December 31, 2011 in our common stock, the S&P 500 Index and the NAREIT All Equity Index and that all dividends were reinvested without the payment of any commissions.  There can be no assurance that the performance of our stock will continue in line with the same or similar trends depicted in the graph below.

	2011		2012		2013		2014		2015		2016
Alexander’s	$	100	$	117	$	121	$	166	$	151	$	175
S&P 500 Index		100		116		154		175		177		198
The NAREIT All Equity Index		100		120		123		158		162		176

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ITEM 6.     selected financial data

The following table sets forth selected financial and operating data.  This data should be read in conjunction with the consolidated financial statements and notes thereto and “Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K.  This data may not be comparable to, or indicative of, future operating results.

		Year Ended December 31,
(Amounts in thousands, except per share amounts)		2016		2015		2014		2013		2012
Total revenues		$	226,936	$	207,915	$	200,814	$	196,459	$	191,312
Income from continuing operations		$	86,477	$	76,907	$	67,396	$	54,663	$	50,041
Income from discontinued operations			-		-		529		2,252		624,952	(1)
Net income			86,477		76,907		67,925		56,915		674,993
Net income attributable to the noncontrolling interest			-		-		-		-		(606)
Net income attributable to Alexander’s		$	86,477	$	76,907	$	67,925	$	56,915	$	674,387
Income per common share:
	Income from continuing operations –  basic	$	16.91	$	15.04	$	13.19	$	10.70	$	9.80
	Income from continuing operations – diluted		16.91		15.04		13.19		10.70		9.80
	Net income per common share – basic		16.91		15.04		13.29		11.14		132.04
	Net income per common share – diluted		16.91		15.04		13.29		11.14		132.04
Dividends per common share		$	16.00	$	14.00	$	13.00	$	11.00	$	137.00	(2)
Balance sheet data:
	Total assets	$	1,451,230	$	1,447,808	$	1,418,392	$	1,454,478	$	1,476,288
	Real estate, at cost		1,033,551		1,029,472		993,927		919,576		911,792
	Accumulated depreciation and amortization		252,737		225,533		210,025		185,375		160,826
	Mortgages payable, net of deferred debt issuance costs		1,052,359		1,053,262		1,027,956		1,046,713		1,060,394
	Total equity		352,845		352,880		348,399		333,581		332,153
(1)	Includes a $599,628 net gain on sale of real estate.
(2)	Includes a special long-term capital gain dividend of $122.00 per share, to distribute the tax gain resulting from the sale of Kings Plaza.

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ITEM 7.     management’s discussion and analysis of financial condition and results of operations

Overview

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties.  All references to “we,” “us,” “our,” “Company,” and “Alexander’s”, refer to Alexander’s, Inc. and its consolidated subsidiaries.  We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO).  We have seven properties in the greater New York City metropolitan area.

We compete with a large number of property owners and developers.  Our success depends upon, among other factors, trends of the global, national and local economies, the financial condition and operating results of current and prospective tenants and customers, the availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population and employment trends, zoning laws, and our ability to lease, sublease or sell our properties, at profitable levels.  Our success is also subject to our ability to refinance existing debt on acceptable terms as it comes due.

Year Ended December 31, 2016 Financial Results Summary

Net income for the year ended December 31, 2016 was $86,477,000, or $16.91 per diluted share, compared to $76,907,000, or $15.04 per diluted share for the year ended December 31, 2015.

Funds from operations (“FFO”) for the year ended December 31, 2016 was $119,780,000, or $23.42 per diluted share, compared to $107,648,000, or $21.06 per diluted share for the year ended December 31, 2015.

Quarter Ended December 31, 2016 Financial Results Summary

Net income for the quarter ended December 31, 2016 was $21,655,000, or $4.23 per diluted share, compared to $23,572,000, or $4.61 per diluted share for the quarter ended December 31, 2015.

FFO for the quarter ended December 31, 2016 was $29,582,000, or $5.78 per diluted share, compared to $31,730,000, or $6.21 per diluted share for the quarter ended December 31, 2015.

Net income and FFO for the quarter ended December 31, 2015 included $3,911,000, or $0.77 per diluted share from a special dividend from an investment in marketable securities and higher income from bankruptcy recoveries.

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Overview – continued

Square Footage, Occupancy and Leasing Activity

As of December 31, 2016 our portfolio was comprised of seven properties aggregating 2,437,000 square feet.  As of December 31, 2016, our properties had an occupancy rate of 99.8%.

Significant Tenants

Bloomberg accounted for $104,590,000, $94,468,000 and $91,109,000, representing approximately 46%, 45% and 45% of our total revenues in each of the years ended December 31, 2016, 2015 and 2014, respectively.  No other tenant accounted for more than 10% of our total revenues.  If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition.  In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg.  In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data.

In January 2016, we entered into a lease amendment with Bloomberg which extends the lease term related to 192,000 square feet of office space at our 731 Lexington Avenue property to be coterminous with the other 697,000 square feet of office space leased by Bloomberg through February 2029, with a ten-year extension option.  In connection with the lease amendment, Bloomberg provided a $200,000,000 letter of credit, which amount may be reduced in certain circumstances. We may draw on this letter of credit subject to certain terms of the lease amendment, including an event of default by Bloomberg.

Financing

In March 2016 we completed a two-year extension of the 100% cash collateralized loan with a balance of $78,246,000 as of December 31, 2016. The loan bears interest at 0.35%, is prepayable at any time without penalty and matures in March 2018.

Critical Accounting Policies and Estimates

 Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.  Set forth below is a summary of our accounting policies that we believe are critical to the preparation of our consolidated financial statements.  This summary should be read in conjunction with a more complete discussion of our accounting policies included in Note 2 – Summary of SignificantAccounting Policies, to the consolidated financial statements in this Annual Report on Form 10-K.

Real Estate

Real estate is carried at cost, net of accumulated depreciation and amortization.  As of December 31, 2016 and 2015, the carrying amount of our real estate, net of accumulated depreciation and amortization, was $780,814,000 and $803,939,000, respectively.  Maintenance and repairs are expensed as incurred.  Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. If we do not allocate these costs appropriately or incorrectly estimate the useful lives of our real estate, depreciation expense may be misstated. We capitalize all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense. The capitalization period begins when development activities are underway and ends when it is determined that the asset is substantially complete and ready for its intended use, which is typically evidenced by the receipt of a temporary certificate of occupancy. General and administrative costs are expensed as incurred.

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Critical Accounting Policies and Estimates – continued

Our properties and related intangible assets, including properties to be developed in the future and currently under development, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared.  For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset.  An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value.  If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements.  Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results.  Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

Allowance for Doubtful Accounts

We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,473,000 and $918,000 as of December 31, 2016 and 2015, respectively) for estimated losses resulting from the inability of tenants to make required payments under the lease agreements.  We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.  These estimates may differ from actual results, which could be material to our consolidated financial statements. 

Revenue Recognition

We have the following revenue sources and revenue recognition policies:

·Base Rent – revenue arising from tenant leases.  These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases.  We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use.  In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.

·Percentage Rent – revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds.  These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).

·Expense Reimbursements – revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties.  This revenue is recognized in the same periods as the expenses are incurred.

·Parking income – revenue arising from the rental of parking space at our properties.  This income is recognized as the service is provided.

Before we recognize revenue, we assess, among other things, its collectibility.  If our assessment of the collectibility of revenue changes, the impact on our consolidated financial statements could be material.

Income Taxes

We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”).  In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year.  We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required.  If we fail to distribute the required amount of income to our stockholders, or fail to meet other REIT requirements, we may fail to qualify as a REIT, which may result in substantial adverse tax consequences.

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Results of Operations – Year Ended December 31, 2016 compared to December 31, 2015

Property Rentals

Property rentals were $151,444,000 in the year ended December 31, 2016, compared to $138,688,000 in the prior year, an increase of $12,756,000.  This increase was primarily due to (i) rental income of $7,271,000 from The Alexander apartment tower, which was placed in service in phases beginning July 2015, (ii) higher rental income of $3,366,000 from the January 2016 lease amendment with Bloomberg at 731 Lexington Avenue and (iii) income of $2,257,000 resulting from a tenant lease termination at our Rego Park II property.

Expense Reimbursements

Tenant expense reimbursements were $75,492,000 in the year ended December 31, 2016, compared to $69,227,000 in the prior year, an increase of $6,265,000. This increase was primarily due to (i) higher recoveries of real estate taxes and operating expenses from Bloomberg at 731 Lexington Avenue as a result of the January 2016 lease amendment, which converted 192,000 square feet from a gross basis to a net rent basis and (ii) higher reimbursable real estate taxes, partially offset by (iii) lower reimbursable operating expenses.

Operating Expenses

Operating expenses were $82,232,000 in the year ended December 31, 2016, compared to $76,218,000 in the prior year, an increase of $6,014,000.  This increase was primarily due to (i) higher operating expenses of $2,494,000 related to The Alexander apartment tower, which was placed in service in phases beginning July 2015, (ii) higher reimbursable real estate taxes of $3,703,000 and (iii) higher bad debt expense of $871,000, partially offset by (iv) lower reimbursable operating expenses of $1,068,000.

Depreciation and Amortization

Depreciation and amortization was $33,807,000 in the year ended December 31, 2016, compared to $31,086,000 in the prior year, an increase of $2,721,000. This increase was primarily due to additional depreciation related to The Alexander apartment tower, which was placed in service in phases beginning July 2015.

General and Administrative Expenses

General and administrative expenses were $5,436,000 in the year ended December 31, 2016, compared to $5,406,000 in the prior year, an increase of $30,000.

Interest and Other Income, net

Interest and other income, net was $3,305,000 in the year ended December 31, 2016, compared to $5,949,000 in the prior year, a decrease of $2,644,000.  This decrease was primarily due to $2,141,000 from a special dividend from our investment in common shares of Macerich in 2015 and lower income of $1,275,000 in connection with bankruptcy recoveries.

Interest and Debt Expense

Interest and debt expense was $22,241,000 in the year ended December 31, 2016, compared to $24,239,000 in the prior year, a decrease of $1,998,000.  This decrease was primarily due to savings of $5,631,000 resulting from the refinancing of the retail portion of 731 Lexington Avenue on August 5, 2015 at LIBOR plus 1.40%, or 2.05% as of December 31, 2016 (the prior loan had a fixed rate of 4.93%); partially offset by lower capitalized interest of $1,486,000 as a result of completing the development of The Alexander apartment tower and higher average LIBOR of $2,066,000.

Income Taxes

Income tax expense was $48,000 in the year ended December 31, 2016, compared to $8,000 in the prior year.

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Results of Operations – Year Ended December 31, 2015 compared to December 31, 2014

Property Rentals

Property rentals were $138,688,000 in the year ended December 31, 2015, compared to $136,628,000 in the prior year, an increase of $2,060,000.  This increase was primarily due to higher straight-line rental income of $979,000 at our 731 Lexington Avenue property resulting from the extensions of two of Bloomberg’s leases in October 2014 that were scheduled to expire in December 2015. In addition, there was higher straight-line rental income of $524,000 from a new tenant at our Rego Park II property and rental income of $364,000 from leasing activity at The Alexander apartment tower, which was placed in service in phases beginning July 2015. 

Expense Reimbursements

Tenant expense reimbursements were $69,227,000 in the year ended December 31, 2015, compared to $64,186,000 in the prior year, an increase of $5,041,000. This increase was primarily due to higher reimbursable real estate taxes and higher reimbursable operating expenses. 

Operating Expenses

Operating expenses were $76,218,000 in the year ended December 31, 2015, compared to $69,897,000 in the prior year, an increase of $6,321,000.  This increase was due to (i) higher real estate taxes of $4,438,000; (ii) higher reimbursable operating expenses of $1,904,000; and (iii) higher operating expenses of $1,565,000 related to The Alexander apartment tower, which was placed in service in phases beginning July 2015, partially offset by (iv) lower bad debt expense of $1,019,000 and lower non-reimbursable expenses of $567,000. 

Depreciation and Amortization

Depreciation and amortization was $31,086,000 in the year ended December 31, 2015, compared to $29,196,000 in the prior year, an increase of $1,890,000. This increase was primarily due to depreciation related to The Alexander apartment tower, which was placed in service in phases beginning July 2015.  

General and Administrative Expenses

General and administrative expenses were $5,406,000 in the year ended December 31, 2015, compared to $5,032,000 in the prior year, an increase of $374,000. This increase was primarily due to higher stock-based compensation expense as a result of deferred stock units granted to a newly appointed member of our Board of Directors during the second quarter of 2015, comprised of an initial award of $150,000 and a $56,000 annual award. 

Interest and Other Income, net

Interest and other income, net was $5,949,000 in the year ended December 31, 2015, compared to $2,434,000 in the prior year, an increase of $3,515,000.  This increase was primarily due to (i) $2,141,000 from a special dividend from our investment in common shares of Macerich and (ii) $2,100,000 of income in connection with bankruptcy recoveries, partially offset by (iii) lease termination income of $800,000 in the prior year. 

Interest and Debt Expense

Interest and debt expense was $24,239,000 in the year ended December 31, 2015, compared to $32,068,000 in the prior year, a decrease of $7,829,000.  This decrease was primarily due to (i) savings of $4,160,000 resulting from the refinancing of the retail portion of 731 Lexington Avenue on August 5, 2015 at LIBOR plus 1.40%, or 1.67% as of December 31, 2015 (the prior loan had a fixed rate of 4.93%); (ii) savings of $2,081,000 resulting from the refinancing of the office portion of 731 Lexington Avenue on February 28, 2014 at LIBOR plus 0.95%, or 1.28% as of December 31, 2015 (the prior loan had a fixed rate of 5.33%); and (iii) higher capitalized interest costs of $883,000 during the current year related to the development of The Alexander apartment tower. 

Income Taxes

Income tax expense was $8,000 in the year ended December 31, 2015, compared to an income tax benefit of $341,000 in the prior year. The income tax benefit in the prior year resulted from a reversal of tax liabilities after the expiration of the applicable statute of limitations. 

Income from Discontinued Operations

Income from discontinued operations was $529,000 in the year ended December 31, 2014, representing the reversal of previously accrued liabilities related to Kings Plaza Regional Shopping Center (“Kings Plaza”), which was sold in 2012.

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Related Party Transactions

Vornado

Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (“Interstate”), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado.  As of December 31, 2016, Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.3% of our outstanding common stock, in addition to the 2.2% they indirectly own through Vornado.  Joseph Macnow, our Executive Vice President and Chief Financial Officer, is the Executive Vice President – Finance and Chief Administrative Officer of Vornado.  Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornado.

As of December 31, 2016, Vornado owned 32.4% of our outstanding common stock.  We are managed by, and our properties are leased and developed by, Vornado, pursuant to various agreements, which expire in March of each year and are automatically renewable.  These agreements are described in Note 3 – Related Party Transactions, to our consolidated financial statements in this Annual Report on Form 10-K.

Toys “R” Us (“Toys”)

As of December 31, 2016, our affiliate, Vornado owned 32.5% of Toys.  Toys leases approximately 47,000 square feet of retail space at our Rego Park II shopping center.  Joseph Macnow, our Executive Vice President and Chief Financial Officer, and Vornado’s Executive Vice President - Finance and Chief Administrative Officer and Wendy A. Silverstein, a member of our Board of Directors, represent Vornado as members of Toys’ Board of Directors.  During the year ended December 31, 2016, we recognized $2,675,000 of revenue related to the space leased by Toys.

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Liquidity and Capital Resources

Property rental income is our primary source of cash flow and is dependent on a number of factors including the occupancy level and rental rates of our properties, as well as our tenants’ ability to pay their rents.  Our properties provide us with a relatively consistent stream of cash flow that enables us to pay our operating expenses, interest expense, recurring capital expenditures and cash dividends to stockholders.  Other sources of liquidity to fund cash requirements include our existing cash, proceeds from financings, including mortgage or construction loans secured by our properties and proceeds from asset sales.  We anticipate that cash flows from continuing operations over the next twelve months, together with existing cash balances, will be adequate to fund our business operations, cash dividends to stockholders, debt amortization and capital expenditures.

Dividends

On January 18, 2017, we increased our regular quarterly dividend to $4.25 per share (a new indicated annual rate of $17.00 per share).  The new dividend, if continued for all of 2017, would require us to pay out approximately $86,900,000.

Financing Activities and Contractual Obligations

Below is a summary of our outstanding debt and maturities as of December 31, 2016.  We intend to refinance our maturing debt as it comes due.

				Interest
	(Amounts in thousands)	Balance		Rate	Maturity(1)
	Rego Park I shopping center (100% cash collateralized)(2)	$	78,246	0.35%	Mar. 2018
	Paramus		68,000	2.90%	Oct. 2018
	Rego Park II shopping center(3)		259,901	2.62%	Nov. 2018
	731 Lexington Avenue, office space(4)		300,000	1.65%	Mar. 2021
	731 Lexington Avenue, retail space(5)		350,000	2.05%	Aug. 2022
	Total		1,056,147
	Deferred debt issuance costs, net of accumulated amortization of $6,824		(3,788)
	Total, net	$	1,052,359
(1)   Represents the extended maturity where we have the unilateral right to extend.
(2)   Extended for two years from March 2016.
(3)   This loan bears interest at LIBOR plus 1.85%.
(4)   This loan bears interest at LIBOR plus 0.95%.
(5)   This loan bears interest at LIBOR plus 1.40%.

Below is a summary of our contractual obligations and commitments as of December 31, 2016.

					Less than		One to		Three to		More than
(Amounts in thousands)			Total		One Year		Three Years		Five Years		Five Years
Contractual obligations (principal and interest(1)):
	Long-term debt obligations		$	1,154,324	$	25,591	$	441,263	$	330,297	$	357,173
	Operating lease obligations			8,059		792		1,600		1,600		4,067
	Purchase obligations (primarily construction
		commitments)		242		242		-		-		-
			$	1,162,625	$	26,625	$	442,863	$	331,897	$	361,240
Commitments:
	Standby letters of credit		$	2,074	$	2,074	$	-	$	-	$	-
(1)		Interest on variable rate debt is computed using rates in effect as of December 31, 2016.

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Liquidity and Capital Resources – continued

Commitments and Contingencies

Insurance

We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, and all-risk property and rental value insurance coverage with limits of $1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties.

Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020.  Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate.  Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to FNSIC.  For NBCR acts, FNSIC is responsible for a $348,000 deductible ($293,000 effective January 1, 2017) and 16% of the balance (17% effective January 1, 2017) of a covered loss, and the Federal government is responsible for the remaining 84% (83% effective January 1, 2017) of a covered loss.  We are ultimately responsible for any loss incurred by FNSIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism.  However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future.  We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.

Our mortgage loans are non-recourse to us and contain customary covenants requiring us to maintain insurance.  Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future.  If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties.

Rego Park I Litigation

On June 24, 2014, Sears filed a lawsuit in the Supreme Court of the State of New York against Vornado and us (and certain of our subsidiaries) with regard to space that Sears leases at our Rego Park I property alleging that the defendants are liable for harm Sears has suffered as a result of (a) water intrusions into the premises, (b) two fires in February 2014 that caused damages to those premises, and (c) alleged violations of the Americans with Disabilities Act in the premises’ parking garage.  Sears asserted various causes of actions for damages and sought to compel compliance with landlord’s obligations to repair the premises and to provide security, and to compel us to abate a nuisance that Sears claims was a cause of the water intrusions into its premises.  In addition to injunctive relief, Sears sought, among other things, damages of not less than $4 million and future damages it estimated would not be less than $25 million. In March 2016, Sears withdrew its claim for future damages leaving a remaining claim for property damages, which we estimate to be approximately $650,000 based on information provided by Sears. We intend to defend the remaining claim vigorously. The amount or range of reasonable possible losses, if any, is not expected to be greater than $650,000.

Paramus

In 2001, we leased 30.3 acres of land located in Paramus, New Jersey to IKEA Property, Inc. The lease has a purchase option in 2021 for $75,000,000. The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 2.90%, which matures in October 2018. The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan. If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a gain on sale of land of approximately $60,000,000. If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term. 

Letters of Credit

Approximately $2,074,000 of standby letters of credit were outstanding as of December 31, 2016.

Other

In October 2015, the New York City Department of Finance (“NYC DOF”) issued a Notice of Determination to us assessing an additional $21,300,000 of transfer taxes (including interest and penalties as of December 31, 2016) in connection with the sale of Kings Plaza in 2012. We believe that the NYC DOF’s claim is without merit and intend to vigorously contest this assessment. We have determined that the likelihood of a loss related to this issue is not probable and, after consultation with legal counsel, that the outcome of this assessment is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

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Liquidity and Capital Resources – continued

Other – Continued

During the years ended December 31, 2016 and 2015, we received approximately $825,000 and $2,100,000 from bankruptcy recoveries, respectively, which is included as “interest and other income, net” in our consolidated statements of income.

There are various other legal actions against us in the ordinary course of business. In our opinion, the outcome of such matters in the aggregate will not have a material effect on our financial position, results of operations or cash flows.

Cash Flows

Cash and cash equivalents were $288,926,000 at December 31, 2016, compared to $259,349,000 at December 31, 2015, an increase of $29,577,000. This increase resulted from (i) $130,820,000 of net cash provided by operating activities, partially offset by (ii) $85,292,000 of net cash used in financing activities and (iii) $15,951,000 of net cash used in investing activities.

Year Ended December 31, 2016

Net cash provided by operating activities of $130,820,000 was comprised of net income of $86,477,000, adjustments for non-cash items of $39,171,000, and the net change in operating assets and liabilities of $5,172,000. The adjustments for non-cash items were primarily comprised of depreciation and amortization (including amortization of debt issuance costs) of $36,374,000 and straight-lining of rental income of $2,347,000.

Net cash used in investing activities of $15,951,000 was primarily comprised of construction in progress and real estate additions of $15,506,000 (primarily related to The Alexander apartment tower), including the payment of a development fee to Vornado of $5,784,000.

Net cash used in financing activities of $85,292,000 was primarily comprised of dividends paid of $81,822,000.

Year Ended December 31, 2015

Net cash provided by operating activities of $106,201,000 was comprised of net income of $76,907,000 and adjustments for non-cash items of $32,853,000, partially offset by the net change in operating assets and liabilities of $3,559,000.  The adjustments for non-cash items were primarily comprised of depreciation and amortization of $33,671,000, partially offset by straight-lining of rental income of $1,418,000.

Net cash used in investing activities of $25,828,000 was primarily comprised of construction in progress and real estate additions of $50,121,000 (primarily related to The Alexander apartment tower) partially offset by proceeds of $24,998,000 from short-term investments that matured during the second quarter of 2015.

Net cash used in financing activities of $48,839,000 was primarily comprised of (i) debt repayments of $323,193,000 (primarily repayment of the prior loan on the retail portion of 731 Lexington Avenue) and (ii) dividends paid of $71,571,000, partially offset by (iii) $350,000,000 of proceeds from the refinancing of the retail portion of 731 Lexington Avenue in August 2015.

31

Liquidity and Capital Resources – continued

Year Ended December 31, 2014

Net cash provided by operating activities of $49,487,000 was comprised of net income of $67,925,000 and adjustments for non-cash items of $29,355,000, partially offset by the net change in operating assets and liabilities of $47,793,000.  The adjustments for non-cash items were primarily comprised of depreciation and amortization of $31,919,000, partially offset by straight-lining of rental income of $2,538,000.  The change in operating assets and liabilities was primarily due to the payment of accrued leasing commissions to Vornado of $40,353,000.

Net cash used in investing activities of $81,520,000 was primarily comprised of $61,964,000 of construction in progress and real estate additions, primarily related to the development of The Alexander apartment tower, and purchases of short-term investments of $24,998,000.

Net cash used in financing activities of $87,870,000 was primarily comprised of (i) debt repayments of $317,179,000 (primarily repayment of the loan on the office portion of 731 Lexington Avenue) and (ii) dividends paid on common stock of $66,436,000, partially offset by (iii) $300,000,000 of proceeds from the refinancing of the office portion of 731 Lexington Avenue.

32

Funds from Operations (“FFO”)

FFO is computed in accordance with the definition adopted by the Board of Governors of NAREIT.  NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified non-cash items, including the pro rata share of such adjustments of unconsolidated subsidiaries.  FFO and FFO per diluted share are used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions.  FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure.  FFO may not be comparable to similarly titled measures employed by other companies. 

The following table reconciles our net income to FFO:

	For the Year Ended				For the Quarter Ended
(Amounts in thousands, except share and per share amounts)	December 31,				December 31,
	2016		2015		2016		2015
Net income	$	86,477	$	76,907	$	21,655	$	23,572
Depreciation and amortization of real property		33,303		30,741		7,927		8,158
FFO	$	119,780	$	107,648	$	29,582	$	31,730
FFO per diluted share	$	23.42	$	21.06	$	5.78	$	6.21
Weighted average shares used in computing FFO per diluted share		5,114,084		5,112,352		5,114,701		5,113,077

33

ITEM 7A.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have exposure to fluctuations in interest rates, which are sensitive to many factors that are beyond our control.  Our exposure to a change in interest rates is summarized in the table below.

	2016					2015
			Weighted	Effect of 1%				Weighted
	December 31,		Average	Change in		December 31,		Average
(Amounts in thousands, except per share amounts)	Balance		Interest Rate	Base Rates		Balance		Interest Rate
Variable rate	$	909,901	2.08%	$	9,099	$	913,341	1.71%
Fixed rate		146,246	1.54%		-		146,246	1.56%
	$	1,056,147	2.01%	$	9,099	$	1,059,587	1.69%
Total effect on diluted earnings per share				$	1.78

As of December 31, 2016 and 2015, we had an interest rate cap with a notional amount of $300,000,000 that caps LIBOR at a rate of 6.0%.

Fair Value of Debt

The fair value of our consolidated debt is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist.  As of December 31, 2016 and 2015, the estimated fair value of our consolidated debt was $1,045,000,000 and $1,054,000,000, respectively.  Our fair value estimates, which are made at the end of the reporting period, may be different from the amounts that may ultimately be realized upon the disposition of our financial instruments.

34

ITEM 8.        FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

		Page
	Index to Consolidated Financial Statements	Number
Report of Independent Registered Public Accounting Firm		36
Consolidated Balance Sheets as of December 31, 2016 and 2015		37
Consolidated Statements of Income for the
	Years Ended December 31, 2016, 2015 and 2014	38
Consolidated Statements of Comprehensive Income for the
	Years Ended December 31, 2016, 2015 and 2014	39
Consolidated Statements of Changes in Equity for the
	Years Ended December 31, 2016, 2015 and 2014	40
Consolidated Statements of Cash Flows for the
	Years Ended December 31, 2016, 2015 and 2014	41
Notes to Consolidated Financial Statements		42

35

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Alexander’s, Inc.

Paramus, New Jersey

We have audited the accompanying consolidated balance sheets of Alexander’s, Inc. and subsidiaries (the “Company”) as of December 31, 2016 and 2015, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2016.  Our audits also included the financial statement schedules listed in the Index at Item 15.  These financial statements and financial statement schedules are the responsibility of the Company’s management.  Our responsibility is to express an opinion on the financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Alexander’s, Inc. and subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America.  Also, in our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2016, based on the criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 13, 2017 expressed an unqualified opinion on the Company’s internal control over financial reporting.

/s/ DELOITTE & TOUCHE LLP

Parsippany, New Jersey

February 13, 2017

36

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
				December 31,
ASSETS				2016		2015
	Real estate, at cost:
		Land		$	44,971	$	44,971
		Buildings and leasehold improvements			985,800		975,015
		Development and construction in progress			2,780		9,486
			Total		1,033,551		1,029,472
	Accumulated depreciation and amortization				(252,737)		(225,533)
	Real estate, net				780,814		803,939
	Cash and cash equivalents				288,926		259,349
	Restricted cash				85,752		85,307
	Marketable securities				37,918		43,191
	Tenant and other receivables, net of allowance for doubtful accounts of $1,473 and $918, respectively				3,056		4,014
	Receivable arising from the straight-lining of rents				179,010		181,357
	Deferred lease and other property costs, net, including unamortized leasing fees to Vornado of
		$36,960 and $33,482, respectively			48,387		45,840
	Other assets				27,367		24,811
				$	1,451,230	$	1,447,808
LIABILITIES AND EQUITY
	Mortgages payable, net of deferred debt issuance costs			$	1,052,359	$	1,053,262
	Amounts due to Vornado				897		8,551
	Accounts payable and accrued expenses				42,200		30,158
	Other liabilities				2,929		2,957
			Total liabilities		1,098,385		1,094,928
	Commitments and contingencies
	Preferred stock: $1.00 par value per share; authorized, 3,000,000 shares;
		issued and outstanding, none			-		-
	Common stock: $1.00 par value per share; authorized, 10,000,000 shares;
		issued, 5,173,450 shares; outstanding, 5,106,196 shares			5,173		5,173
	Additional capital				31,189		30,739
	Retained earnings				308,995		304,340
	Accumulated other comprehensive income				7,862		13,002
					353,219		353,254
	Treasury stock: 67,254 shares, at cost				(374)		(374)
			Total equity		352,845		352,880
				$	1,451,230	$	1,447,808
See notes to consolidated financial statements.

37

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share and per share amounts)
				Year Ended December 31,
				2016		2015		2014
	REVENUES
		Property rentals		$	151,444	$	138,688	$	136,628
		Expense reimbursements			75,492		69,227		64,186
	Total revenues				226,936		207,915		200,814
	EXPENSES
		Operating, including fees to Vornado of $4,590, $4,476, and $4,516, respectively			82,232		76,218		69,897
		Depreciation and amortization			33,807		31,086		29,196
		General and administrative, including management fees to Vornado of $2,380
			in each year		5,436		5,406		5,032
	Total expenses				121,475		112,710		104,125
	OPERATING INCOME				105,461		95,205		96,689
		Interest and other income, net			3,305		5,949		2,434
		Interest and debt expense			(22,241)		(24,239)		(32,068)
		Income before income taxes			86,525		76,915		67,055
		Income tax (expense) benefit			(48)		(8)		341
	Income from continuing operations				86,477		76,907		67,396
	Income from discontinued operations				-		-		529
	Net income			$	86,477	$	76,907	$	67,925
	Income per common share - basic and diluted:
		Income from continuing operations		$	16.91	$	15.04	$	13.19
		Income from discontinued operations			-		-		0.10
		Net income per common share		$	16.91	$	15.04	$	13.29
		Weighted average shares outstanding			5,114,084		5,112,352		5,110,628
See notes to consolidated financial statements.

38

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
			Year Ended December 31,
			2016		2015		2014
	Net income		$	86,477	$	76,907	$	67,925
	Other comprehensive (loss) income:
		Change in unrealized net gain on available-for-sale securities		(5,273)		(1,455)		13,124
		Change in value of interest rate cap		133		-		(189)
	Comprehensive income		$	81,337	$	75,452	$	80,860
See notes to consolidated financial statements.

39

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Amounts in thousands)
									Accumulated
									Other
		Common Stock			Additional		Retained		Comprehensive		Treasury		Total
		Shares	Amount		Capital		Earnings		Income		Stock		Equity
Balance, December 31, 2013		5,173	$	5,173	$	29,745	$	297,515	$	1,522	$	(374)	$	333,581
Net income		-		-		-		67,925		-		-		67,925
Dividends paid		-		-		-		(66,436)		-		-		(66,436)
Change in unrealized net gain
	on available-for-sale securities	-		-		-		-		13,124		-		13,124
Change in value of interest rate cap		-		-		-		-		(189)		-		(189)
Deferred stock unit grant		-		-		394		-		-		-		394
Balance, December 31, 2014		5,173		5,173		30,139		299,004		14,457		(374)		348,399
Net income		-		-		-		76,907		-		-		76,907
Dividends paid		-		-		-		(71,571)		-		-		(71,571)
Change in unrealized net gain
	on available-for-sale securities	-		-		-		-		(1,455)		-		(1,455)
Deferred stock unit grant		-		-		600		-		-		-		600
Balance, December 31, 2015		5,173		5,173		30,739		304,340		13,002		(374)		352,880
Net income		-		-		-		86,477		-		-		86,477
Dividends paid		-		-		-		(81,822)		-		-		(81,822)
Change in unrealized net gain
	on available-for-sale securities	-		-		-		-		(5,273)		-		(5,273)
Change in value of interest rate cap		-		-		-		-		133		-		133
Deferred stock unit grant		-		-		450		-		-		-		450
Balance, December 31, 2016		5,173	$	5,173	$	31,189	$	308,995	$	7,862	$	(374)	$	352,845
See notes to consolidated financial statements.

40

ALEXANDER’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
			Year Ended December 31,
			2016		2015		2014
	CASH FLOWS FROM OPERATING ACTIVITIES
	Net income		$	86,477	$	76,907	$	67,925
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization, including amortization of debt issuance costs		36,374		33,671		31,919
		Straight-lining of rental income		2,347		(1,418)		(2,538)
		Stock-based compensation expense		450		600		394
		Reversal of income tax liability		-		-		(420)
	Change in operating assets and liabilities:
		Tenant and other receivables, net		958		(1,801)		712
		Other assets		(9,894)		(4,777)		(4,334)
		Amounts due to Vornado		(1,913)		2,228		(42,779)
		Accounts payable and accrued expenses		16,049		822		(1,373)
		Other liabilities		(28)		(31)		(19)
	Net cash provided by operating activities			130,820		106,201		49,487
	CASH FLOWS FROM INVESTING ACTIVITIES
		Construction in progress and real estate additions		(15,506)		(50,121)		(61,964)
		Proceeds from maturing (purchases of) short-term investments		-		24,998		(24,998)
		Restricted cash		(445)		(705)		5,442
	Net cash used in investing activities			(15,951)		(25,828)		(81,520)
	CASH FLOWS FROM FINANCING ACTIVITIES
		Debt repayments		(3,440)		(323,193)		(317,179)
		Proceeds from borrowing		-		350,000		300,000
		Dividends paid		(81,822)		(71,571)		(66,436)
		Debt issuance costs		(30)		(4,075)		(4,255)
	Net cash used in financing activities			(85,292)		(48,839)		(87,870)
		Net increase (decrease) in cash and cash equivalents		29,577		31,534		(119,903)
		Cash and cash equivalents at beginning of year		259,349		227,815		347,718
		Cash and cash equivalents at end of year	$	288,926	$	259,349	$	227,815
	SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
	Cash payments for interest, excluding capitalized interest of $1,486 in 2015		$	19,517	$	22,354	$	30,656
	NON-CASH TRANSACTIONS
	Liability for real estate additions, including $54 and $5,795 due to Vornado
		in 2016 and 2015, respectively	$	322	$	10,139	$	13,529
	Write-off of fully amortized and/or depreciated assets			1,691		20,786		10,626
See notes to consolidated financial statements.

41

ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.    ORGANIZATION

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties.  All references to “we,” “us,” “our,” “Company” and “Alexander’s” refer to Alexander’s, Inc. and its consolidated subsidiaries.  We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO).

We have seven properties in the greater New York City metropolitan area consisting of:

Operating properties

·731 Lexington Avenue, a 1,311,000 square foot multi-use building, comprising the entire block bounded by Lexington Avenue, East 59th Street, Third Avenue and East 58th Street in Manhattan.  The building contains 889,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold.  Bloomberg L.P. (“Bloomberg”) occupies all of the office space.  The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants;

·Rego Park I, a 343,000 square foot shopping center, located on Queens Boulevard and 63^rd Road in Queens.  The center is anchored by a 195,000 square foot Sears department store, a 50,000 square foot Burlington Coat Factory, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls. In January 2017, Sears announced that it plans to close its store in the second quarter of 2017. Under the terms of the lease, Sears is obligated to pay rent through lease expiration in March of 2021;

·Rego Park II, a 609,000 square foot shopping center, adjacent to the Rego Park I shopping center in Queens.  The center is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.  In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado;

·The Alexander apartment tower, located above our Rego Park II shopping center, contains 312 units aggregating 255,000 square feet and is 98.1% leased as of December 31, 2016;

·Paramus, located at the intersection of Routes 4 and 17 in Paramus, New Jersey, consists of 30.3 acres of land that is leased to IKEA Property, Inc.; and

·Flushing, a 167,000 square foot building, located at Roosevelt Avenue and Main Street in Queens, that is sub-leased to New World Mall LLC for the remainder of our ground lease term.

Property to be developed

·Rego Park III, a 140,000 square foot land parcel adjacent to the Rego Park II shopping center in Queens, at the intersection of Junction Boulevard and the Horace Harding Service Road.

We have determined that our properties have similar economic characteristics and meet the criteria that permit the properties to be aggregated into one reportable segment (the leasing, management, development and redeveloping of properties in the greater New York City metropolitan area).  Our chief operating decision-maker assesses and measures segment operating results based on a performance measure referred to as net operating income at the individual operating segment.  Net operating income for each property represents net rental revenues less operating expenses.

42

ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation – The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries.  All intercompany amounts have been eliminated.  Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.  Certain prior year balances have been reclassified in order to conform to current year presentation.

Recently Issued Accounting Literature – In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update ("ASU 2014-09") establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”).  ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance.  ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures.  In August 2015, the FASB issued an update (“ASU 2015-14”) to ASC 606, Deferral of the Effective Date, which defers the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017.  In March 2016, the FASB issued an update (“ASU 2016-08”) to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09.  In April 2016, the FASB issued an update (“ASU 2016-10”) to ASC 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09.  In May 2016, the FASB issued an update (“ASU 2016-12”) to ASC 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09. We are permitted to use either the retrospective or the modified retrospective method when adopting these standards. We are evaluating the impact of the adoption of these standards on our consolidated financial statements, and have not yet concluded on the method of adoption.

In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825, Financial Instruments. ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We are currently evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements.

In February 2016, the FASB issued (“ASU 2016-02”) Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.  ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase.  Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases.  Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. ASU 2016-02 will more significantly impact the accounting for leases in which we are a lessee. We will be required to record a right-of-use asset and lease liability for our Flushing property ground lease upon adoption of this standard. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted.  We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements, including the timing of adopting this standard.

In March 2016, the FASB issued an update (“ASU 2016-09”) Improvements to Employee Share-Based Payment Accounting to ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASU 2016-09 amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements.

43

ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

In August 2016, the FASB issued an update (“ASU 2016-15”) Classification of Certain Cash Receipts and Cash Payments to ASC Topic 230, Statement of Cash Flows. ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice with respect to (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this update is not expected to have a significant impact on our consolidated financial statements.

In November 2016, the FASB issued an update (“ASU 2016-18”) Restricted Cash to ASC Topic 230, Statement of Cash Flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents.  Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. 

In January 2017, the FASB issued an update (“ASU 2017-01”) Clarifying the Definition of a Business to ASC Topic 805, Business Combinations. ASU 2017-01 provides a screen to determine when an asset acquired or group of assets acquired is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. ASU 2017-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We have elected to early adopt this standard, effective as of October 1, 2016, for all future acquisitions.  The adoption of this standard will result in less real estate acquisitions qualifying as businesses and, accordingly, acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed.  There was no impact of the adoption of this standard in the fourth quarter of 2016, as there have been no acquisitions.

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ALEXANDER’S, INC. AND SUBSIDIARIES

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2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

Real Estate – Real estate is carried at cost, net of accumulated depreciation and amortization.  As of December 31, 2016 and 2015, the carrying amount of our real estate, net of accumulated depreciation and amortization, was $780,814,000 and $803,939,000, respectively.  Maintenance and repairs are expensed as incurred.  Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. We capitalize all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense. The capitalization period begins when development activities are underway and ends when it is determined that the asset is substantially complete and ready for its intended use, which is typically evidenced by the receipt of a temporary certificate of occupancy. General and administrative costs are expensed as incurred.

Our properties and related intangible assets, including properties to be developed in the future and currently under development, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared.  For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset.  An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value.  If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements.  Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results.  Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates fair value, due to their short-term maturities.  The majority of our cash and cash equivalents consist of (i) deposits at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit, (ii) United States Treasury Bills, (iii) money market funds, which invest in United States Treasury Bills and (iv) certificates of deposit placed through an account registry service (“CDARS”).  To date we have not experienced any losses on our invested cash.

Short-term Investments – Short-term investments consist of United States Treasury Bills with original maturities greater than three but less than six months. These highly liquid investments are classified as available-for-sale and are presented at fair value on our consolidated balance sheets. Unrealized gains and losses resulting from these investments are included in “other comprehensive income” and are recognized in earnings only upon the expiration of the investments.

Restricted Cash –Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements.

Marketable Securities – Our marketable securities consist of common shares of The Macerich Company (NYSE: MAC) (“Macerich”), which are classified as available-for-sale.  Available-for-sale securities are presented at fair value on our consolidated balance sheets.  Unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income” and are recognized in earnings only upon the sale of the securities.  We evaluate our marketable securities for impairment at the end of each reporting period.  If investments have unrealized losses, we evaluate the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline.  In our evaluation, we consider our ability and intent to hold our investment for a reasonable period of time sufficient for us to recover our cost basis, as well as the near-term prospects for the investment in relation to the severity and duration of the decline.

Allowance for Doubtful Accounts– We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,473,000 and $918,000 as of December 31, 2016 and 2015, respectively) for estimated losses resulting from the inability of tenants to make required payments under the lease agreements.  We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.

Deferred Charges – Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense.  Direct costs related to leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases.  All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate.

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2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue Recognition – We have the following revenue sources and revenue recognition policies:

Base Rent – revenue arising from tenant leases.  These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases.  We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use.  In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.

Percentage Rent – revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds.  These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).

Expense Reimbursements – revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties.  This revenue is recognized in the same periods as the expenses are incurred.

Parking Income – revenue arising from the rental of parking space at our properties.  This income is recognized as the service is provided.

Income Taxes – We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”).  In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year.  We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required.  Dividends distributed for the year ended December 31, 2016 were characterized, for federal income taxes, as 97.7% ordinary income and 2.3% long-term capital gain income. Dividends distributed for the year ended December 31, 2015 were characterized, for federal income taxes, as 97.3% ordinary income and 2.7% long-term capital gain income. Dividends distributed for the year ended December 31, 2014 were categorized, for federal income tax purposes, as ordinary income. 

The following table reconciles our net income to estimated taxable income for the years ended December 31, 2016, 2015 and 2014.

(Unaudited and in thousands)	Year Ended December 31,
	2016		2015		2014
Net income	$	86,477	$	76,907	$	67,925
Straight-line rent adjustments		2,347		(1,418)		(2,538)
Depreciation and amortization timing differences		(14,534)		2,477		2,283
Reversal of liability for income taxes		-		-		(420)
Other		2,975		751		765
Estimated taxable income	$	77,265	$	78,717	$	68,015

As of December 31, 2016, the net basis of our assets and liabilities for tax purposes are approximately $208,622,000 lower than the amount reported for financial statement purposes.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

3.    RELATED PARTY TRANSACTIONS

Vornado

As of December 31, 2016, Vornado owned 32.4% of our outstanding common stock.  We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable.

Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (“Interstate”), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado.  As of December 31, 2016, Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.3% of our outstanding common stock, in addition to the 2.2% they indirectly own through Vornado.  Joseph Macnow, our Executive Vice President and Chief Financial Officer, is the Executive Vice President – Finance and Chief Administrative Officer of Vornado.  Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornado.

Management and Development Agreements

We pay Vornado an annual management fee equal to the sum of (i) $2,800,000, (ii) 2% of gross revenue from the Rego Park II shopping center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $297,000, escalating at 3% per annum, for managing the common area of 731 Lexington Avenue.  Vornado is also entitled to a development fee equal to 6% of development costs, as defined.

Leasing Agreements

Vornado also provides us with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2% of rent for the eleventh through the twentieth year of a lease term, and 1% of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants.  In the event third-party real estate brokers are used, the fees to Vornado increase by 1% and Vornado is responsible for the fees to the third-party real estate brokers.  Vornado is also entitled to a commission upon the sale of any of our assets equal to 3% of gross proceeds, as defined, for asset sales less than $50,000,000 and 1% of gross proceeds, as defined, for asset sales of $50,000,000 or more.  Prior to December 22, 2014, the total of these amounts was payable in annual installments in an amount not to exceed $4,000,000, with interest on the unpaid balance at one-year LIBOR plus 1.0%.  On December 22, 2014, the leasing agreements with Vornado were amended to eliminate the annual installment cap of $4,000,000 and we paid the accrued balance of leasing commissions of $40,353,000 to Vornado.

Other Agreements

We also have agreements with Building Maintenance Services, a wholly owned subsidiary of Vornado, to supervise (i) cleaning, engineering and security services at our Lexington Avenue property and (ii) security services at our Rego Park I and Rego Park II properties.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

3.    RELATED PARTY TRANSACTIONS – continued

The following is a summary of fees to Vornado under the various agreements discussed above.

		Year Ended December 31,
(Amounts in thousands)		2016		2015		2014
Company management fees		$	2,800	$	2,800	$	2,800
Development fees			194		2,435		3,394
Leasing fees			7,401		2,950		1,430
Property management fees and payments for cleaning, engineering
	and security services		4,033		3,614		3,658
		$	14,428	$	11,799	$	11,282

As of December 31, 2016, the amounts due to Vornado were $54,000 for development fees; $428,000 for management, property management, cleaning and security fees; and $415,000 for leasing fees. As of December 31, 2015, the amounts due to Vornado were $5,795,000 for development fees; $283,000 for management, property management and cleaning fees; and $2,473,000 for leasing fees. In March 2016, we paid Vornado a development fee of $5,784,000 related to The Alexander apartment tower.

Toys “R” Us (“Toys”)

As of December 31, 2016, our affiliate, Vornado owned 32.5% of Toys.  Toys leases approximately 47,000 square feet of retail space at our Rego Park II shopping center.  Joseph Macnow, our Executive Vice President and Chief Financial Officer, and Vornado’s Executive Vice President - Finance and Chief Administrative Officer and Wendy A. Silverstein, a member of our Board of Directors, represent Vornado as members of Toys’ Board of Directors.  During the year ended December 31, 2016, we recognized $2,675,000 of revenue related to the space leased by Toys.

4.     MARKETABLE SECURITIES

As of December 31, 2016 and 2015, we owned 535,265 Macerich common shares, which were received in connection with the sale of Kings Plaza Regional Shopping Center (“Kings Plaza”) to Macerich in 2012.  These shares have an economic cost of $56.05 per share, or $30,000,000 in the aggregate.  As of December 31, 2016 and 2015, the fair value of these shares were $37,918,000 and $43,191,000, respectively, based on Macerich’s closing share price of $70.84 per share and $80.69 per share, respectively.  These shares are included in “marketable securities” on our consolidated balance sheets and are classified as available-for-sale.  Available-for-sale securities are presented at fair value and unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income.”  Other comprehensive income includes unrealized losses of $5,273,000 and $1,455,000 for the years ended December 31, 2016 and 2015, respectively.

In October 2015, we recognized $2,141,000 of dividend income as a result of a special dividend declared by Macerich, which is included as a component of “interest and other income, net,” in our consolidated statement of income for the year ended December 31, 2015.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

5.    MORTGAGES PAYABLE

The following is a summary of our outstanding mortgages payable. We intend to refinance our maturing debt as it comes due.

			Interest Rate at		Balance at December 31,
(Amounts in thousands)		Maturity(1)	December 31, 2016		2016		2015
First mortgages secured by:
	Rego Park I shopping center (100% cash	Mar. 2018	0.35	%	$	78,246	$	78,246
	collateralized)(2)
	Paramus	Oct. 2018	2.90	%		68,000		68,000
	Rego Park II shopping center(3)	Nov. 2018	2.62	%		259,901		263,341
	731 Lexington Avenue, office space(4)	Mar. 2021	1.65	%		300,000		300,000
	731 Lexington Avenue, retail space(5)	Aug. 2022	2.05	%		350,000		350,000
	Total					1,056,147		1,059,587
	Deferred debt issuance costs, net of accumulated
	amortization of $6,824 and $4,267, respectively					(3,788)		(6,325)
					$	1,052,359	$	1,053,262
(1)	Represents the extended maturity where we have the unilateral right to extend.
(2)	Extended for two years from March 2016.
(3)	This loan bears interest at LIBOR plus 1.85%.
(4)	This loan bears interest at LIBOR plus 0.95%.
(5)	This loan bears interest at LIBOR plus 1.40%.

All of our debt is secured by mortgages and/or pledges of the stock of the subsidiaries holding the properties.  The net carrying value of real estate collateralizing the debt amounted to $663,274,000 as of December 31, 2016.  Our existing financing documents contain covenants that limit our ability to incur additional indebtedness on these properties, and in certain circumstances, provide for lender approval of tenants’ leases and yield maintenance to prepay them. As of December 31, 2016, the principal repayments for the next five years and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2017	$	3,707
2018		402,440
2019		-
2020		-
2021		300,000
Thereafter		350,000

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

6.    FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value.  The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available.  The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value.

Financial Assets and Liabilities Measured at Fair Value

Financial assets measured at fair value on our consolidated balance sheets as of December 31, 2016 and 2015 consist of marketable securities, which are presented in the table below, based on their level in the fair value hierarchy, and an interest rate cap which fair value is insignificant, as of December 31, 2016 and 2015. There were no financial liabilities measured at fair value as of December 31, 2016 and 2015.

		As of December 31, 2016
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	37,918	$	37,918	$	-	$	-
		As of December 31, 2015
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	43,191	$	43,191	$	-	$	-

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents and mortgages payable.  Cash equivalents are carried at cost, which approximates fair value due to their short-term maturities.  The fair value of our mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist.  The fair value of cash equivalents is classified as Level 1 and the fair value of mortgages payable is classified as Level 2.  The table below summarizes the carrying amounts and fair value of these financial instruments as of December 31, 2016 and 2015.

			As of December 31, 2016				As of December 31, 2015
			Carrying		Fair		Carrying		Fair
(Amounts in thousands)			Amount		Value		Amount		Value
Assets:
	Cash equivalents	$	256,370	$	256,370	$	226,476	$	226,476
Liabilities:
	Mortgages payable (excluding deferred debt issuance costs, net)	$	1,056,147	$	1,045,000	$	1,059,587	$	1,054,000

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

7.    LEASES

As Lessor

We lease space to tenants in an office building and in retail centers.  The rental terms range from approximately 5 to 25 years.  The leases provide for the payment of fixed base rents payable monthly in advance as well as reimbursements of real estate taxes, insurance and maintenance costs.  Retail leases may also provide for the payment by the lessee of additional rents based on a percentage of their sales. We also lease residential space at The Alexander apartment tower with one or two year lease terms.

Future base rental revenue under these non-cancelable operating leases is as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2017	$	145,464
2018		139,371
2019		136,370
2020		134,689
2021		118,062
Thereafter		845,921

These future minimum amounts do not include additional rents based on a percentage of retail tenants’ sales.  For the years ended December 31, 2016, 2015, and 2014, these rents were $182,000, $94,000, and $108,000, respectively.

Bloomberg accounted for $104,590,000, $94,468,000 and $91,109,000, representing approximately 46%, 45% and 45% of our total revenues in each of the years ended December 31, 2016, 2015 and 2014, respectively.  No other tenant accounted for more than 10% of our total revenues.  If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg.  In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data.

In January 2016, we entered into a lease amendment with Bloomberg which extends the lease term related to 192,000 square feet of office space at our 731 Lexington Avenue property to be coterminous with the other 697,000 square feet of office space leased by Bloomberg through February 2029, with a ten-year extension option.  In connection with the lease amendment, Bloomberg provided a $200,000,000 letter of credit, which amount may be reduced in certain circumstances. We may draw on this letter of credit subject to certain terms of the lease amendment, including an event of default by Bloomberg.  Upon execution of the lease amendment in January 2016, we paid an $8,916,000 leasing commission of which $7,200,000 was to a third party broker and $1,716,000 was to Vornado.

As Lessee

We are a tenant under a long-term ground lease at our Flushing property, which expires in 2027 and has one 10-year extension option.  Future lease payments under this operating lease, excluding the extension option, are as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2017	$	792
2018		800
2019		800
2020		800
2021		800
Thereafter		4,067

Rent expense was $746,000 in each of the years ended December 31, 2016, 2015 and 2014.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

8.    STOCK-BASED COMPENSATION

Our 2016 Omnibus Stock Plan, which was adopted in May 2016 replacing the expiring 2006 Omnibus Stock Plan, provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, deferred stock units (“DSUs”) and performance shares, as defined, to the directors, officers and employees of the Company and Vornado, and any other person or entity as designated by the Omnibus Stock Plan Committee of our Board of Directors.  As of December 31, 2016, there were 8,505 DSUs outstanding and 498,376 shares were available for future grant under the 2016 Omnibus Stock Plan.  We account for all stock-based compensation in accordance with ASC 718.

In May 2016, we granted each of the members of our Board of Directors 203 DSUs with a grant date fair value of $56,250 per grant, or $450,000 in the aggregate. The DSUs entitle the holders to receive shares of the Company’s common stock without the payment of any consideration. The DSUs vested immediately and accordingly, were expensed on the date of grant, but the shares of common stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Company’s Board of Directors.

9.    COMMITMENTS AND CONTINGENCIES

Insurance

We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, and all-risk property and rental value insurance coverage with limits of $1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties.

Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020.  Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate.  Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to FNSIC.  For NBCR acts, FNSIC is responsible for a $348,000 deductible ($293,000 effective January 1, 2017) and 16% of the balance (17% effective January 1, 2017) of a covered loss, and the Federal government is responsible for the remaining 84% (83% effective January 1, 2017) of a covered loss.  We are ultimately responsible for any loss incurred by FNSIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism.  However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future.  We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.

Our mortgage loans are non-recourse to us and contain customary covenants requiring us to maintain insurance.  Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future.  If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties.

Rego Park I Litigation

On June 24, 2014, Sears Roebuck and Co. (“Sears”) filed a lawsuit in the Supreme Court of the State of New York against Vornado and us (and certain of our subsidiaries) with regard to space that Sears leases at our Rego Park I property alleging that the defendants are liable for harm Sears has suffered as a result of (a) water intrusions into the premises, (b) two fires in February 2014 that caused damages to those premises, and (c) alleged violations of the Americans with Disabilities Act in the premises’ parking garage.  Sears asserted various causes of actions for damages and sought to compel compliance with landlord’s obligations to repair the premises and to provide security, and to compel us to abate a nuisance that Sears claims was a cause of the water intrusions into its premises.  In addition to injunctive relief, Sears sought, among other things, damages of not less than $4 million and future damages it estimated would not be less than $25 million. In March 2016, Sears withdrew its claim for future damages leaving a remaining claim for property damages, which we estimate to be approximately $650,000 based on information provided by Sears. We intend to defend the remaining claim vigorously. The amount or range of reasonable possible losses, if any, is not expected to be greater than $650,000.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

9.    COMMITMENTS AND CONTINGENCIES – continued

Paramus

In 2001, we leased 30.3 acres of land located in Paramus, New Jersey to IKEA Property, Inc. The lease has a purchase option in 2021 for $75,000,000. The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 2.90%, which matures in October 2018. The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan. If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a gain on sale of land of approximately $60,000,000. If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term.

Letters of Credit

Approximately $2,074,000 of standby letters of credit were issued and outstanding as of December 31, 2016.

Other

In October 2015, the New York City Department of Finance (“NYC DOF”) issued a Notice of Determination to us assessing an additional $21,300,000 of transfer taxes (including interest and penalties as of December 31, 2016) in connection with the sale of Kings Plaza in 2012. We believe that the NYC DOF’s claim is without merit and intend to vigorously contest this assessment. We have determined that the likelihood of a loss related to this issue is not probable and, after consultation with legal counsel, that the outcome of this assessment is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

During the years ended December 31, 2016 and 2015, we received approximately $825,000 and $2,100,000 from bankruptcy recoveries, respectively, which is included as “interest and other income, net” in our consolidated statements of income.

There are various other legal actions against us in the ordinary course of business. In our opinion, the outcome of such matters in the aggregate will not have a material effect on our financial position, results of operations or cash flows.

10.  MULTIEMPLOYER BENEFIT PLANS

Our subsidiaries make contributions to certain multiemployer defined benefit plans (“Multiemployer Pension Plans”) and health plans (“Multiemployer Health Plans”) for our union represented employees, pursuant to the respective collective bargaining agreements.

Multiemployer Pension Plans

Multiemployer Pension Plans differ from single-employer pension plans in that (i) contributions to multiemployer plans may be used to provide benefits to employees of other participating employers and (ii) if other participating employers fail to make their contributions, each of our subsidiaries may be required to bear their pro rata share of unfunded obligations.  If a participating subsidiary withdraws from a plan in which it participates, it may be subject to a withdrawal liability.  As of December 31, 2016, our subsidiaries’ participation in these plans were not significant to our consolidated financial statements.

In the years ended December 31, 2016, 2015 and 2014 our subsidiaries contributed $147,000, $144,000 and $144,000, respectively, towards Multiemployer Pension Plans. Our subsidiaries’ contributions did not represent more than 5% of total employer contributions in any of these plans for the years ended December 31, 2016, 2015 and 2014.

Multiemployer Health Plans

Multiemployer Health Plans in which our subsidiaries participate provide health benefits to eligible active and retired employees.  In the years ended December 31, 2016, 2015 and 2014 our subsidiaries contributed $539,000, $554,000 and $533,000, respectively, towards these plans.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

11.  EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted income per share, including a reconciliation of net income and the number of shares used in computing basic and diluted income per share.  Basic income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period.  Diluted income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period, and assumes all potentially dilutive securities were converted into common shares at the earliest date possible.  There were no potentially dilutive securities outstanding during the years ended December 31, 2016, 2015 and 2014.

		For the Year Ended December 31,
(Amounts in thousands, except share and per share amounts)		2016		2015		2014
	Income from continuing operations	$	86,477	$	76,907	$	67,396
	Income from discontinued operations		-		-		529
	Net income – basic and diluted	$	86,477	$	76,907	$	67,925
	Weighted average shares outstanding – basic and diluted		5,114,084		5,112,352		5,110,628
	Income from continuing operations	$	16.91	$	15.04	$	13.19
	Income from discontinued operations		-		-		0.10
	Net income per common share – basic and diluted	$	16.91	$	15.04	$	13.29

12.  SUMMARY OF QUARTERLY RESULTS (UNAUDITED)

							Net Income Per
							Common Share(1)
	(Amounts in thousands, except per share amounts)		Revenues		Net Income		Basic		Diluted
	2016
		December 31	$	57,253	$	21,655	$	4.23	$	4.23
		September 30		57,120		21,036		4.11		4.11
		June 30		57,005		21,767		4.26		4.26
		March 31		55,558		22,019		4.31		4.31
	2015
		December 31	$	52,819	$	23,572	$	4.61	$	4.61
		September 30		52,414		18,172		3.55		3.55
		June 30		50,646		17,341		3.39		3.39
		March 31		52,036		17,822		3.49		3.49
_______________________
(1)	The total for the year may differ from the sum of the quarters as a result of weighting.

54

ITEM 9.      changes in and disagreements with accountants on accounting and financial disclosure

None.

ITEM 9a.  controls and procedures

Disclosure Controls and Procedures – Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Annual Report on Form 10-K.  Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective.

Internal Control Over Financial Reporting – There have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities and Exchange Act of 1934, as amended) during the fourth quarter of the fiscal year to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

55

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING

The management of Alexander’s, Inc., together with its consolidated subsidiaries (the “Company”), is responsible for establishing and maintaining adequate internal control over financial reporting.  The Company’s internal control over financial reporting is a process designed under the supervision of the Company’s principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America.

As of December 31, 2016, management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting based on the framework established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.  Based on this assessment, management has determined that the Company’s internal control over financial reporting as of December 31, 2016 is effective.

The Company’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures are being made only in accordance with authorizations of management and the directors of the Company; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the Company’s financial statements.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2016 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing on page 57 of this Annual Report on Form 10-K, which expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2016.

56

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

Alexander’s, Inc.

Paramus, New Jersey

We have audited the internal control over financial reporting of Alexander’s, Inc. and subsidiaries (the “Company”) as of December 31, 2016, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.  The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting.  Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.  Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.  We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on the criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, 2016 of the Company and our report dated February 13, 2017 expressed an unqualified opinion on those financial statements and financial statement schedules.

/s/ DELOITTE & TOUCHE LLP

Parsippany, New Jersey

February 13, 2017

57

ITEM 9b.  other information

None.

PART III

ITEM 10.   directors, executive officers and corporate governance

Information relating to our directors, including our audit committee and audit committee financial expert, will be contained in a definitive Proxy Statement involving the election of directors pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended.  We will file the Proxy Statement with the Securities and Exchange Commission no later than 120 days after December 31, 2016.  Such information is incorporated by reference herein.  Also incorporated herein by reference is the information under the caption “Section 16(a) Beneficial Ownership Reporting Compliance” of the Proxy Statement.

The following is a list of the names, ages, principal occupations and positions with us of our executive officers and the positions held by such officers during the past five years.

		PRINCIPAL OCCUPATION, POSITION AND OFFICE
Name	Age	(Current and during past five years with the Company unless otherwise stated)
Steven Roth	75	Chairman of the Board since May 2004 and Chief Executive Officer since March 1995; Chairman of the Board of Vornado Realty Trust since May 1989; Chief Executive Officer of Vornado Realty Trust since April 2013 and from May 1989 to May 2009;  a Trustee of Vornado Realty Trust since 1979; and Managing General Partner of Interstate Properties.
Joseph Macnow	71	Executive Vice President and Chief Financial Officer since June 2002; Executive Vice President – Finance and Chief Administrative Officer of Vornado Realty Trust since June 2013; Executive Vice President – Finance and Administration of Vornado Realty Trust from January 1998 to June 2013; and Chief Financial Officer of Vornado Realty Trust from March 2001 to June 2013.

We have a code of business conduct and ethics that applies to, among others, our Chief Executive Officer and Executive Vice President and Chief Financial Officer.  The code is posted on our website at www.alx-inc.com.  We intend to satisfy our disclosure obligation regarding amendments and waivers of this code applicable to our Chief Executive Officer and Executive Vice President and Chief Financial Officer by posting such information on our website.

58

ITEM 11.   executive compensation

Information relating to executive compensation will be contained in the Proxy Statement referred to in “Item 10.  Directors, Executive Officers and Corporate Governance” of this Annual Report on Form 10-K.  Such information is incorporated by reference herein.

ITEM 12.      security ownership of certain beneficial owners and management and related stockholder matters

Information relating to security ownership of certain beneficial owners and management and related stockholder matters, except as set forth below, will be contained in the Proxy Statement referred to in “Item 10.  Directors, Executive Officers and Corporate Governance” of this Annual Report on Form 10-K.  Such information is incorporated by reference herein.

Equity Compensation Plan Information  

The following table provides information as of December 31, 2016, regarding our equity compensation.

				Number of securities
	(a)			remaining available for
	Number of securities			future issuance under
	to be issued upon	Weighted-average		equity compensation
	exercise of	exercise price of		plans (excluding
	outstanding options,	outstanding options,		securities reflected in
Plan Category	warrants and rights	warrants and rights		column (a))
Equity compensation plans approved by security holders	8,505	$	-	498,376
Equity compensation plans not approved by security holders	N/A		N/A	N/A
Total	8,505	$	-	498,376

ITEM 13.      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Information relating to certain relationships and related transactions and director independence will be contained in the Proxy Statement referred to in “Item 10.  Directors, Executive Officers and Corporate Governance” of this Annual Report on Form 10-K.  Such information is incorporated by reference herein.

ITEM 14.      PRINCIPAL ACCOUNTING FEES AND SERVICES

Information relating to principal accounting fees and services will be contained in the Proxy Statement referred to in “Item 10.  Directors, Executive Officers and Corporate Governance” of this Annual Report on Form 10-K.  Such information is incorporated by reference herein.

59

PART IV

ITEM 15.      EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a)        The following documents are filed as part of this Annual Report on Form 10-K.

1.     The consolidated financial statements are set forth in Item 8 of this Annual Report on Form 10-K.

2.     The following financial statement schedules should be read in conjunction with the financial statements included in Item 8 of this Annual Report on Form 10-K.

		Pages in this
		Annual Report
		on Form 10-K
Schedule II – Valuation and Qualifying Accounts – years ended
	December 31, 2016, 2015 and 2014	62
Schedule III – Real Estate and Accumulated Depreciation as of
	December 31, 2016, 2015 and 2014	63

All other financial statement schedules are omitted because they are not applicable, not required, or the information is included elsewhere in the consolidated financial statements or the notes thereto.

3.     The following exhibits listed on the Exhibit Index, which is incorporated herein by reference, are filed with this Annual Report on Form 10-K.

Exhibit
No.
12	Computation of Ratios
21	Subsidiaries of Registrant
23	Consent of Independent Registered Public Accounting Firm
31.1	Rule 13a-14(a) Certification of the Chief Executive Officer
31.2	Rule 13a-14(a) Certification of the Chief Financial Officer
32.1	Section 1350 Certification of the Chief Executive Officer
32.2	Section 1350 Certification of the Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

60

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		ALEXANDER’S, INC.
			(Registrant)
Date:  February 13, 2017	By:		/s/ Joseph Macnow
			Joseph Macnow, Executive Vice President
			and Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	Signature		Title		Date
By:	/s/Steven Roth		Chairman of the Board of Directors and		February 13, 2017
		(Steven Roth)		Chief Executive Officer
				(Principal Executive Officer)
By:	/s/Joseph Macnow		Executive Vice President and		February 13, 2017
		(Joseph Macnow)		Chief Financial Officer
				(Principal Financial and Accounting Officer)
By:	/s/Thomas R. DiBenedetto		Director		February 13, 2017
		(Thomas R. DiBenedetto)
By:	/s/David Mandelbaum		Director		February 13, 2017
		(David Mandelbaum)
By:	/s/Wendy Silverstein		Director		February 13, 2017
		(Wendy Silverstein)
By:	/s/Arthur Sonnenblick		Director		February 13, 2017
		(Arthur Sonnenblick)
By:	/s/Richard R. West		Director		February 13, 2017
		(Richard R. West)
By:	/s/Russell B. Wight Jr.		Director		February 13, 2017
		(Russell B. Wight Jr)

61

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
(Amounts in thousands)
	Column A		Column B		Column C		Column D		Column E
					Additions:		Deductions:
			Balance at		Charged		Uncollectible		Balance
			Beginning		Against		Accounts		at End
	Description		of Year		Operations		Written Off		of Year
	Allowance for doubtful accounts:
		Year Ended December 31, 2016	$	918	$	557	$	(2)	$	1,473
		Year Ended December 31, 2015	$	1,544	$	(314)	$	(312)	$	918
		Year Ended December 31, 2014	$	1,993	$	705	$	(1,154)	$	1,544

62

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2016
(Amounts in thousands)
COLUMN A			COLUMN B		COLUMN C				COLUMN D		COLUMN E								COLUMN F		COLUMN G	COLUMN H	COLUMN I
											Gross Amount at Which												Life on which
											Carried at Close of Period												Depreciation
					Initial Cost to Company(2)				Costs							Development			Accumulated				in Latest
							Buildings		Capitalized				Buildings			and			Depreciation				Income
							and Leasehold		Subsequent				and Leasehold		Construction				and		Date of	Date	Statement
Description			Encumbrances(1)		Land		Improvements		to Acquisition		Land		Improvements		In Progress		Total(3)		Amortization		Construction	Acquired(2)	is Computed
	New York, NY
		Rego Park I	$	78,246	$	1,647	$	8,953	$	52,368	$	1,647	$	61,285	$	36	$	62,968	$	31,212	1959	1992	3-39 years
		Rego Park II		259,901		3,127		1,467		386,655		3,127		387,999		123		391,249		73,186	2009	1992	3-40 years
		The Alexander apartment tower		-		-		-		119,105		-		119,105		-		119,105		6,081	2016	1992	3-39 years
		Rego Park III		-		779		-		3,124		779		503		2,621		3,903		198	N/A	1992	5-15 years
		Flushing		-		-		1,660		(107)		-		1,553		-		1,553		909	1975(4)	1992	N/A
		Lexington Avenue		650,000		14,432		12,355		416,065		27,497		415,355		-		442,852		141,151	2003	1992	9-39 years
	Paramus, NJ			68,000		1,441		-		10,313		11,754		-		-		11,754		-	N/A	1992	N/A
	Other Properties			-		167		1,804		(1,804)		167		-		-		167		-	N/A	1992	N/A
TOTAL			$	1,056,147	$	21,593	$	26,239	$	985,719	$	44,971	$	985,800	$	2,780	$	1,033,551	$	252,737
		__________________________
(1)		Excludes deferred debt issuance costs, net of $3,788.
(2)		Initial cost is as of May 15, 1992 (the date on which the Company commenced its real estate operations).
(3)		The net basis of the Company’s assets and liabilities for tax purposes is approximately $208,622 lower than the amount reported for financial statement purposes.
(4)		Represents the date the lease was acquired.

63

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
(Amounts in thousands)
				December 31,
				2016		2015		2014
	REAL ESTATE:
		Balance at beginning of period		$	1,029,472	$	993,927	$	919,576
		Changes during the period:
			Land		-		-		-
			Buildings and leasehold improvements		12,464		112,538		4,043
			Development and construction in progress		(6,706)		(65,803)		70,365
					1,035,230		1,040,662		993,984
			Less: Fully depreciated assets		(1,679)		(11,190)		(57)
		Balance at end of period		$	1,033,551	$	1,029,472	$	993,927
	ACCUMULATED DEPRECIATION:
		Balance at beginning of period		$	225,533	$	210,025	$	185,375
		Additions charged to operating expenses			28,883		26,698		24,707
					254,416		236,723		210,082
			Less: Fully depreciated assets		(1,679)		(11,190)		(57)
		Balance at end of period		$	252,737	$	225,533	$	210,025

64

			EXHIBIT INDEX
Exhibit
No.
3.1		-	Amended and Restated Certificate of Incorporation. Incorporated herein by reference from Exhibit 3.1 to the registrant’s Registration Statement on Form S-3 filed on September 20, 1995	*
3.2		-	By-laws, as amended. Incorporated herein by reference from Exhibit 3(ii) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2000	*
10.1		-	Real Estate Retention Agreement dated as of July 20, 1992, between Vornado Realty Trust and Keen Realty Consultants, Inc., each as special real estate consultants, and the Company. Incorporated herein by reference from Exhibit 10(i)(O) to the registrant’s Annual Report on Form 10-K for the fiscal year ended July 25, 1992	*
10.2		-	Extension Agreement to the Real Estate Retention Agreement, dated as of February 6, 1995, between the Company and Vornado Realty Trust. Incorporated herein by reference from Exhibit 10(i)(G)(2) to the registrant’s Annual Report Form 10-K for the year ended December 31, 1994	*
10.3		-	Agreement of Lease dated as of April 30, 2001 between Seven Thirty One Limited Partnership, landlord, and Bloomberg L.P., tenant. Incorporated herein by reference from Exhibit 10(v) B to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2001, filed on August 2, 2001	*
10.4		-	Lease dated as of October 2, 2001 by and between ALX of Paramus LLC, as Landlord, and IKEA Property, Inc. as Tenant. Incorporated herein by reference from Exhibit 10(v)(C)(4) to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2001, filed on March 13, 2002	*
10.5		-	First Amendment to Real Estate Retention Agreement, dated as of July 3, 2002, by and between Alexander’s, Inc. and Vornado Realty, L.P. Incorporated herein by reference from Exhibit 10(i)(E)(3) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.6		-	59th Street Real Estate Retention Agreement, dated as of July 3, 2002, by and between Vornado Realty, L.P., 731 Residential LLC and 731 Commercial LLC. Incorporated herein by reference from Exhibit 10(i)(E)(4) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.7		-	Amended and Restated Management and Development Agreement, dated as of July 3, 2002, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp. Incorporated herein by reference from Exhibit 10(i)(F)(1) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.8		-	Limited Liability Company Operating Agreement of 731 Residential LLC, dated as of July 3, 2002, among 731 Residential Holding LLC, as the sole member, Domenic A. Borriello, as an Independent Manager and Kim Lutthang, as an Independent Manager. Incorporated herein by reference from Exhibit 10(i)(A)(1) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.9		-	Limited Liability Company Operating Agreement of 731 Commercial LLC, dated as of July 3, 2002, among 731 Commercial Holding LLC, as the sole member, Domenic A. Borriello, as an Independent Manager and Kim Lutthang, as an Independent Manager. Incorporated herein by reference from Exhibit 10(i)(A)(2) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
10.10		-	Reimbursement Agreement, dated as of July 3, 2002, by and between Alexander’s, Inc., 731 Commercial LLC, 731 Residential LLC and Vornado Realty, L.P. Incorporated herein by reference from Exhibit 10(i)(C)(8) to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed on August 7, 2002	*
			___________________
	*		Incorporated by reference.

65

10.11		-		First Amendment of Lease, dated as of April 19, 2002, between Seven Thirty One Limited Partnership, landlord and Bloomberg L.P., tenant. Incorporated herein by reference from Exhibit 10(v)(B)(2) to the registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2002, filed on August 7, 2002	*
10.12		-		Loan Agreement dated as of July 6, 2005, between 731 Retail One LLC, as Borrower and Archon Financial, as Lender.  Incorporated herein by reference from Exhibit 10.1 to the registrant’s Current Report on Form 8-K, filed on July 12, 2005	*
10.13		-		Second Amendment to Real Estate Retention Agreement, dated as of January 1, 2007, by and between Alexander’s, Inc. and Vornado Realty L.P.  Incorporated herein by reference from Exhibit 10.64 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2006, filed on February 26, 2007	*
10.14		-		Amendment to 59th Street Real Estate Retention agreement, dated as of January 1, 2007, by and among Vornado Realty L.P., 731 Retail One LLC, 731 Restaurant LLC, 731 Office One LLC and 731 Office Two LLC.  Incorporated herein by reference from Exhibit 10.65 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2006, filed on February 26, 2007	*
10.15		-		First Amendment to Amended and Restated Management and Development Agreement, dated as of July 6, 2005, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp.  Incorporated herein by reference from Exhibit 10.52 to the registrant’s Annual Report on Form 10-K, for the year ended December 31, 2007, filed on February 25, 2008	*
10.16		-		Second Amendment to Amended and Restated Management and Development Agreement, dated as of December 20, 2007, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp.  Incorporated herein by reference from Exhibit 10.53 to the registrant’s Annual Report on Form 10-K, for the year  ended December 31, 2007, filed on February 25, 2008	*
10.17		-		Third Amendment to Real Estate Retention Agreement, dated as of December 20, 2007, by and between Alexander’s, Inc., and Vornado Realty L.P.  Incorporated herein by reference from Exhibit 10.55 to the registrant’s Annual Report on Form 10-K, for the year  ended December 31, 2007, filed on February 25, 2008	*
10.18		-		Loan Agreement dated as of March 10, 2009 between Alexander’s Rego Park Shopping Center Inc., as Borrower and U.S. Bank National Association, as Lender.  Incorporated herein by reference from Exhibit 10.55 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009	*
10.19		-		Amended and Restated Mortgage, Security Agreement, Fixture Filing and Assignment of Leases and Rentals by and between Alexander’s Rego Shopping Center, Inc. as Borrower and U.S. Bank National Association as Lender, dated as of March 10, 2009.  Incorporated herein by reference from Exhibit 10.56 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009	*
10.20			-	Amended and Restated Promissory Note dated as of March 10, 2009, by Alexander’s Rego Shopping Center Inc., in favor of U.S. Bank National Association.  Incorporated herein by reference from Exhibit 10.57 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009		*
10.21			-	Cash Pledge Agreement dated as of March 10, 2009, executed by Alexander’s Rego Shopping Center Inc. to and for the benefit of U.S. Bank National Association.  Incorporated herein by reference from Exhibit 10.58 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009		*
10.22			-	Lease dated as of February 7, 2005, by and between 731 Office One LLC, as Landlord, and Citibank, N.A., as Tenant.  Incorporated herein by reference from Exhibit 10.59 to the registrant’s Quarterly Report on for 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009		*
				___________________
	*			Incorporated by reference.

66

10.23		-	Assignment and Assumption and Consent Agreement, dated as of March 25, 2009, by and between 731 Office One LLC, as Landlord, Citicorp North America, Inc., as Assignor, and Bloomberg L.P., as Assignee.  Incorporated herein by reference from Exhibit 10.60 to the registrant’s Quarterly Report on form 10-Q for the quarter ended March 31, 2009, filed on May 4, 2009	*
10.24		-	Third Amendment to Amended and Restated Management and Development Agreement, dated as of November 30, 2011, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp.  Incorporated herein by reference from Exhibit 10.49 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.25		-	Loan and Security Agreement, dated November 30, 2011, by and between Rego II Borrower LLC, as Borrower, and the Lender.  Incorporated herein by reference from Exhibit 10.50 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.26		-	Consolidated, Amended and Restated Promissory Note, dated November 30, 2011, by and between Rego II Borrower LLC, as Maker, and the Lender.  Incorporated herein by reference from Exhibit 10.51 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.27		-	Consolidated, Amended and Restated Mortgage, Assignment of Leases and Rents and Security Agreement, dated November 30, 2011, by and between Rego II Borrower LLC, as Mortgagor, and the Mortgagee.  Incorporated herein by reference from Exhibit 10.52 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.28		-	Guarantee of Recourse Carveouts, dated November 30, 2011, by Alexander’s, Inc., as Guarantor, to and for the benefit of the Lender.  Incorporated herein by reference from Exhibit 10.53 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.29		-	Environmental Indemnity Agreement, dated November 30, 2011, among Rego II Borrower LLC and Alexander’s, Inc., individually or collectively as Indemnitor, in favor of the Lender.  Incorporated herein by reference from Exhibit 10.54 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 27, 2012	*
10.30		-	First Omnibus Loan Modification and Extension Agreement dated March 12, 2012 by and between Alexander’s Rego Shopping Center, Inc., as Borrower and U.S. Bank National Association, as Lender.  Incorporated herein by reference from Exhibit 10.55 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed on May 7, 2012	*
10.31		-	Mortgage Modification Agreement dated March 12, 2012 by and between Alexander’s Rego Shopping Center, Inc., as Mortgagor and U.S. Bank National Association, as Mortgagee.  Incorporated herein by reference from Exhibit 10.56 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed on May 7, 2012	*
10.32		-	First Amendment and Modification of Loan and Security Agreement and Other Loan Documents, dated as of June 20, 2012 by and between Rego II Borrower LLC, as Borrower, and the Lender.  Incorporated herein by reference from Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, filed on August 6, 2012	*
10.33		-	Fourth Amendment to Amended and Restated Management and Development Agreement, dated as of August 1, 2012, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp.  Incorporated herein by reference from Exhibit 10.2 to the registrants Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, filed on November 1, 2012	*
			__________________
	*		Incorporated by reference.

67

10.34		-	Contribution Agreement and Joint Escrow Instructions, dated as of October 21, 2012, by and between Alexander’s Kings Plaza LLC, Alexander’s of Kings LLC and Kings Parking LLC, and Brooklyn Kings Plaza LLC	*
10.35		-	Fifth Amendment to Amended and Restated Management and Development Agreement, dated as of December 1, 2012, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp	*
10.36		-	Second Omnibus Loan Modification and Extension Agreement, dated March 8, 2013, by and between Alexander’s Rego Shopping Center, Inc., as Borrower and U.S. Bank National Association, as Lender.  Incorporated herein by reference from exhibit 10.3 to the registrant’s Quarterly Report on Form 10-Q, filed on May 6, 2013	*
10.37		-	Second Mortgage Modification Agreement, dated March 8, 2013, by and between Alexander’s Rego Shopping Center, Inc., as Mortgator and U.S. Bank National Association, as Mortgagee.  Incorporated herein by reference from exhibit 10.4 to the registrant’s Quarterly Report on Form 10-Q, filed on May 6, 2013	*
10.38		-	Second Amendment and Modification of Loan Agreement and Other Loan Documents and Ratification of Guarantor, dated November 15, 2013, by and between Rego II Borrower LLC, as Borrower, and the Lender.  Incorporated herein by reference from exhibit 10.60 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed on February 24, 2014	*
10.39		-	Partial Release of Mortgage, dated November 15, 2013, by and between Rego II Borrower LLC, as Mortgagor, and the Mortgagee.  Incorporated herein by reference from exhibit 10.61 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed on February 24, 2014	*
10.40		-	Partial Release of Assignment of Leases and Rents, dated November 15, 2013, by and between Rego II Borrower LLC, as Assignor, and the Assignee.  Incorporated herein by reference from exhibit 10.61 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed on February 24, 2014	*
10.41		-	Loan Agreement, date as of February 28, 2014, by and between 731 Office One LLC, as Borrower, and German American Capital Corporation, as Lender.  Incorporated herein by reference from exhibit 10.1 to the registrant’s Quarterly report on Form 10-Q, filed on May 5, 2014	*
10.42		-	Consolidated, Amended and Restated Promissory Note, dated as of February 28, 2014, by and between 731 Office One LLC, as Borrower, and German American Capital Corporation, as Lender.  Incorporated herein by reference from exhibit 10.2 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.43		-	Amended and Restated Mortgage, Assignment of Leases and Rents and Security Agreement, dated as of February 28, 2014, by and between 731 Office One LLC, as Mortgagor, and German American Capital Corporation, as Mortgagee.  Incorporated herein by reference from exhibit 10.3 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.44		-	Assignment of Leases and Rents dated as of February 28, 2014, by and between 731 Office One LLC, as Assignor, and German American Capital Corporation, as Assignee.  Incorporated herein by reference from exhibit 10.4 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.45		-	Guaranty of Recourse Obligations dated as of February 28, 2014, by and between Alexander’s, Inc., as Guarantor, and German American Capital Corporation, as Lender.  Incorporated herein by reference from exhibit 10.5 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.46		-	Environmental Indemnity Agreement dated as of February 28, 2014, by and between 731 Office One LLC, as Indemnitor, and German American Capital Corporation, as Indemnitee.  Incorporated herein by reference from exhibit 10.6 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
			__________________
	*		Incorporated by reference.

68

10.47		-	Termination Agreement dated as of February 28, 2014, by and among 731 Office One LLC, Alexander’s Management LLC, Vornado Realty L.P., 731 Office Two LLC, 731 Residential LLC, 731 Commercial LLC, 731 Retail One LLC and 731 Restaurant LLC.  Incorporated herein by reference from exhibit 10.7 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.48		-	Real Estate Sub-Retention Agreement dated as of February 28, 2014, by and between Alexander’s Management LLC, as Agent, and Vornado Realty L.P., as Sub-Agent.  Incorporated herein by reference from exhibit 10.8 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.49		-	Sixth Amendment to Amended and Restated Management and Development Agreement, dated as of March 21, 2014, by and between Alexander’s, Inc., the subsidiaries party thereto and Vornado Management Corp.  Incorporated herein by reference from exhibit 10.9 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.50		-	Rego Park II Residential Management and Development Agreement, dated as of March 21, 2014 by and between Alexander’s of Rego Residential LLC and Vornado Management Corp.  Incorporated herein by reference from exhibit 10.10 to the registrant’s Quarterly Report on Form 10-Q, filed on May 5, 2014	*
10.51		-	Fourth Amendment to Real Estate Retention Agreement, dated December 22, 2014 by and between Alexander's, Inc. and Vornado Realty, L.P.  Incorporated herein by reference from exhibit 10.56 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 17, 2015	*
10.52		-	Second Amendment to 59th Street Real Estate Retention Agreement, dated December 22, 2014 by and between 731 Retail One LLC, 731 Restaurant LLC, 731 Office Two LLC and Vornado Realty, L.P. Incorporated herein by reference from exhibit 10.57 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 17, 2015	*
10.53		-	First Amendment to Rego II Real Estate Sub-Rentention Agreement, dated December 22, 2014 by and between Alexander's, Inc. and Vornado Realty L.P. Incorporated herein by reference from exhibit 10.58 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 17, 2015	*
10.54		-	First Amendment to Real-Estate Sub-Retention Agreement, dated December 22, 2014 by and between Alexander's Management LLC and Vornado Realty, L.P.  Incorporated herein by reference from exhibit 10.59 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 17, 2015	*
10.55		-	Third Omnibus Loan Modification and Extension Agreement, dated March 10, 2015, by and between Alexander’s Rego Shopping Center, Inc., as Borrower and U.S. Bank National Association, as Lender. Incorporated herein by reference from exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q, filed on May 4, 2015	*
10.56		-	Third Mortgage Modification Agreement, dated March 10, 2015, by and between Alexander’s Rego Shopping Center, Inc., as Mortgator and U. S. Bank National Association, as Mortgagee.  Incorporated herein by reference from exhibit 10.2 to the registrant’s Quarterly Report on Form 10-Q, filed on May 4, 2015	*
10.57		-	Loan Agreement, dated as of August 5, 2015, by and between 731 Retail One LLC and 731 Commercial LLC, as Borrower, and JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., and Landesbank Baden-Württemberg, New York Branch, as Lenders.  Incorporated herein by reference from exhibit 10.3 to the registrant’s Quarterly Report on Form 10-Q, filed on November 2, 2015	*
			__________________
	*		Incorporated by reference.

69

10.58	+	-	Second Amendment of Lease, dated as of the 12th of January 2016 between 731 Office One LLC and Bloomberg L.P. Incorporated herein by reference from exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q, filed on May 2, 2016	*
10.59		-	Four Omnibus Loan Modification and Extension Agreement, dated and made effective as of March 8, 2016, by and between Alexanders Rego Shopping Center and U.S. Bank National Association.  Incorporated herein by reference from exhibit 10.2 to the registrant’s Quarterly Report on Form 10-Q, filed on May 2, 2016	*
10.60		-	Fourth Mortgage Modification Agreement, dated and made effective as of March 8, 2016, by and between Alexander’s Rego Shopping Center and U.S. Bank National Association.  Incorporated herein by reference from exhibit 10.3 to the registrant’s Quarterly Report on Form 10-Q, filed on Mary 2, 2016	*
10.61	**	-	Form of Alexander’s Inc. 2016 Omnibus Stock Plan Deferred Stock Unit Grant Agreement between the Company and certain employees. Incorporated herein by reference from exhibit 10.4 to the registrant’s Quarterly Report on Form 10-Q, filed on August 1, 2016	*
12		-	Computation of Ratios
21		-	Subsidiaries of Registrant
23		-	Consent of Independent Registered Public Accounting Firm
31.1		-	Rule 13a-14 (a) Certification of the Chief Executive Officer
31.2		-	Rule 13a-14 (a) Certification of the Chief Financial Officer
32.1		-	Section 1350 Certification of the Chief Executive Officer
32.2		-	Section 1350 Certification of the Chief Financial Officer
101.INS		-	XBRL Instance Document
101.SCH		-	XBRL Taxonomy Extension Schema
101.CAL		-	XBRL Taxonomy Extension Calculation Linkbase
101.DEF		-	XBRL Taxonomy Extension Definition Linkbase
101.LAB		-	XBRL Taxonomy Extension Label Linkbase
101.PRE		-	XBRL Taxonomy Extension Presentation Linkbase
			__________________
		*	Incorporated by reference.
		**	Management contract or compensatory agreement.
		+	Portions of  this exhibit have been omitted pursuant to a  request for confidential treatment filed with the  Securities and  Exchange Commission under  Rule 24b-2. The omitted  confidential material has been filed separately. The location of the redacted confidential information is indicated in the exhibit as “redacted”.

70

EX-12

 

EX-21

 

EXHIBIT 21

ALEXANDER’S, INC.

SUBSIDIARIES OF REGISTRANT

Alexander’s of Brooklyn, Inc.

Alexander’s Kings Plaza, LLC

Alexander’s of Rego Park II, Inc.

Alexander’s of Rego Park III, Inc.

Alexander’s Rego Shopping Center Inc.

Alexander’s of Flushing, Inc.

ALX of Paramus LLC

Kings Parking, LLC

731 Commercial Holding LLC

731 Commercial LLC

731 Office One Holding LLC

731 Office One LLC

731 Office Two Holding LLC

731 Office Two LLC

731 Retail One, LLC

731 Restaurant, LLC

Alexander’s Management LLC

Alexander’s Construction LLC

Rego II Borrower LLC

Fifty Ninth Street Insurance Company LLC

Kings Plaza TEP LLC

Alexander's of Rego Residential LLC

EX-23

 

EXHIBIT 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements of our reports dated February 13, 2017, relating to the consolidated financial statements and financial statement schedules of Alexander’s, Inc. and subsidiaries (the “Company”) and the effectiveness of the Company’s internal control over financial reporting, appearing in the Annual Report on Form 10-K of Alexander’s, Inc. for the year ended December 31, 2016: 

·Registration Statement No. 333-212838 on Form S-8

·Registration Statement No. 333-203287 on Form S-3

/s/ Deloitte & Touche LLP

Parsippany, New Jersey

February 13, 2017

EX-31

 

EXHIBIT 31.1

CERTIFICATION

I, Steven Roth, certify that:

1.     I have reviewed this Annual Report on Form 10‑K of Alexander’s, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

February 13, 2017

/s/ Steven Roth

Steven Roth

Chairman of the Board and

Chief Executive Officer

EX-31

 

EXHIBIT 31.2

CERTIFICATION

I, Joseph Macnow, certify that:

1.     I have reviewed this Annual Report on Form 10‑K of Alexander’s, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

February 13, 2017

/s/ Joseph Macnow

Joseph Macnow

Executive Vice President and

Chief Financial Officer

EX-32

 

EXHIBIT 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Alexander’s, Inc. (the “Company”), hereby certifies, to such officer’s knowledge, that: 

The Annual Report on Form 10-K for year ended December 31, 2016(the “Report”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

February 13, 2017		/s/ Steven Roth
	Name:	Steven Roth
	Title:	Chairman of the Board and
		Chief Executive Officer

EX-32

 

EXHIBIT 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Alexander’s, Inc. (the “Company”), hereby certifies, to such officer’s knowledge, that: 

The Annual Report on Form 10-K for year ended December 31, 2016(the “Report”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

February 13, 2017		/s/ Joseph Macnow
	Name:	Joseph Macnow
	Title:	Executive Vice President and
		Chief Financial Officer

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Jan. 31, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ALEXANDERS INC
Entity Central Index Key	0000003499
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		5,107,290
Entity Public Float			$ 861,304,000
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Trading Symbol	alx

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Real estate, at cost:
Land	$ 44,971	$ 44,971
Buildings and leasehold improvements	985,800	975,015
Development and construction in progress	2,780	9,486
Total	1,033,551	1,029,472
Accumulated depreciation and amortization	(252,737)	(225,533)
Real estate, net	780,814	803,939
Cash and cash equivalents	288,926	259,349
Restricted cash	85,752	85,307
Marketable securities	37,918	43,191
Tenant and other receivables, net of allowance for doubtful accounts of $1,473 and $918, respectively	3,056	4,014
Receivable arising from the straight-lining of rents	179,010	181,357
Deferred lease and other property costs, net, including unamortized leasing fees to Vornado of $36,960 and $33,482, respectively	48,387	45,840
Other assets	27,367	24,811
Total assets	1,451,230	1,447,808
LIABILITIES AND EQUITY
Mortgages payable, net of deferred debt issuance costs	1,052,359	1,053,262
Amounts due to Vornado	897	8,551
Accounts payable and accrued expenses	42,200	30,158
Other liabilities	2,929	2,957
Total liabilities	1,098,385	1,094,928
Commitments and contingencies
Preferred stock: $1.00 par value per share; authorized, 3,000,000 shares; issued and outstanding, none	0	0
Common stock: $1.00 par value per share; authorized, 10,000,000 shares; issued, 5,173,450 shares; outstanding, 5,106,196 shares	5,173	5,173
Additional capital	31,189	30,739
Retained earnings	308,995	304,340
Accumulated other comprehensive income	7,862	13,002
Equity before treasury stock	353,219	353,254
Treasury stock: 67,254 shares, at cost	(374)	(374)
Total equity	352,845	352,880
Total liabilities and equity	$ 1,451,230	$ 1,447,808

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets
Allowance for doubtful accounts (in US dollars)	$ 1,473	$ 918
Unamortized leasing fees to Vornado (in US dollars)	$ 36,960	$ 33,482
Preferred stock: par value per share (in dollars per share)	$ 1	$ 1
Preferred stock: authorized shares	3,000,000	3,000,000
Preferred stock: issued shares	0	0
Preferred stock: outstanding shares	0	0
Common stock: par value per share (in dollars per share)	$ 1	$ 1
Common stock: authorized shares	10,000,000	10,000,000
Common stock: issued shares	5,173,450	5,173,450
Common stock: outstanding shares	5,106,196	5,106,196
Treasury stock: shares	67,254	67,254

XML

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
REVENUES
Property rentals	$ 151,444	$ 138,688	$ 136,628
Expense reimbursements	75,492	69,227	64,186
Total revenues	226,936	207,915	200,814
EXPENSES
Operating, including fees to Vornado of $4,590, $4,476, and $4,516, respectively	82,232	76,218	69,897
Depreciation and amortization	33,807	31,086	29,196
General and administrative, including management fees to Vornado of $2,380 in each year	5,436	5,406	5,032
Total expenses	121,475	112,710	104,125
OPERATING INCOME	105,461	95,205	96,689
Interest and other income, net	3,305	5,949	2,434
Interest and debt expense	(22,241)	(24,239)	(32,068)
Income before income taxes	86,525	76,915	67,055
Income tax (expense) benefit	(48)	(8)	341
Income from continuing operations	86,477	76,907	67,396
Income from discontinued operations	0	0	529
Net income	$ 86,477	$ 76,907	$ 67,925
Income per common share- basic and diluted:
Income from continuing operations (in dollars per share)	$ 16.91	$ 15.04	$ 13.19
Income from discontinued operations (in dollars per share)	0	0	0.1
Net income per common share (in dollars per share)	$ 16.91	$ 15.04	$ 13.29
Weighted average shares outstanding (in shares)	5,114,084	5,112,352	5,110,628

XML

Consolidated Statements of Income (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Income
Fees to Vornado	$ 4,590	$ 4,476	$ 4,516
Management fees to Vornado	$ 2,380	$ 2,380	$ 2,380

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income
Net income	$ 86,477	$ 76,907	$ 67,925
Other comprehensive (loss) income:
Change in unrealized net gain on available-for-sale securities	(5,273)	(1,455)	13,124
Change in value of interest rate cap	133	0	(189)
Comprehensive income	$ 81,337	$ 75,452	$ 80,860

XML

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock
Opening Balance, at Dec. 31, 2013	$ 333,581	$ 5,173	$ 29,745	$ 297,515	$ 1,522	$ (374)
Opening Balance (in shares) at Dec. 31, 2013		5,173,000
Net income	67,925			67,925
Dividends paid	(66,436)			(66,436)
Change in unrealized net gain on available-for-sale securities	13,124				13,124
Change in value of interest rate cap	(189)				(189)
Deferred stock unit grant	394		394
Closing Balance (in shares) at Dec. 31, 2014		5,173,000
Closing Balance, at Dec. 31, 2014	348,399	$ 5,173	30,139	299,004	14,457	(374)
Net income	76,907			76,907
Dividends paid	(71,571)			(71,571)
Change in unrealized net gain on available-for-sale securities	(1,455)				(1,455)
Change in value of interest rate cap	0
Deferred stock unit grant	$ 600		600
Closing Balance (in shares) at Dec. 31, 2015	5,173,450	5,173,000
Closing Balance, at Dec. 31, 2015	$ 352,880	$ 5,173	30,739	304,340	13,002	(374)
Net income	86,477			86,477
Dividends paid	(81,822)			(81,822)
Change in unrealized net gain on available-for-sale securities	(5,273)				(5,273)
Change in value of interest rate cap	133				133
Deferred stock unit grant	$ 450		450
Closing Balance (in shares) at Dec. 31, 2016	5,173,450	5,173,000
Closing Balance, at Dec. 31, 2016	$ 352,845	$ 5,173	$ 31,189	$ 308,995	$ 7,862	$ (374)

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 86,477	$ 76,907	$ 67,925
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including amortization of debt issuance costs	36,374	33,671	31,919
Straight-lining of rental income	2,347	(1,418)	(2,538)
Stock-based compensation expense	450	600	394
Reversal of income tax liability	0	0	(420)
Change in operating assets and liabilities:
Tenant and other receivables, net	958	(1,801)	712
Other assets	(9,894)	(4,777)	(4,334)
Amounts due to Vornado	(1,913)	2,228	(42,779)
Accounts payable and accrued expenses	16,049	822	(1,373)
Other liabilities	(28)	(31)	(19)
Net cash provided by operating activities	130,820	106,201	49,487
CASH FLOWS FROM INVESTING ACTIVITIES
Construction in progress and real estate additions	(15,506)	(50,121)	(61,964)
Proceeds from maturing (purchases of) short-term investments	0	24,998	(24,998)
Restricted cash	(445)	(705)	5,442
Net cash used in investing activities	(15,951)	(25,828)	(81,520)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt repayments	(3,440)	(323,193)	(317,179)
Proceeds from borrowing	0	350,000	300,000
Dividends paid	(81,822)	(71,571)	(66,436)
Debt issuance costs	(30)	(4,075)	(4,255)
Net cash used in financing activities	(85,292)	(48,839)	(87,870)
Net increase (decrease) in cash and cash equivalents	29,577	31,534	(119,903)
Cash and cash equivalents at beginning of year	259,349	227,815	347,718
Cash and cash equivalents at end of year	288,926	259,349	227,815
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest, excluding capitalized interest of $1,486 in 2015	19,517	22,354	30,656
NON-CASH TRANSACTIONS
Liability for real estate additions, including $54 and $5,795 due to Vornado in 2016 and 2015, respectively	322	10,139	13,529
Write-off of fully amortized and/or depreciated assets	$ 1,691	$ 20,786	$ 10,626

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Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash paid for interest, capitalized		$ 1,486
Liability for real estate additions due to Vornado	$ 322	10,139
Vornado
Liability for real estate additions due to Vornado	$ 54	$ 5,795

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Organization

12 Months Ended

Dec. 31, 2016

Organization [Abstract]

Organization

1. ORGANIZATION

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to “we,” “us,” “our,” “Company” and “Alexander’s” refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO).

We have seven properties in the greater New York City metropolitan area consisting of:

Operating properties

• 731 Lexington Avenue, a 1,311,000 square foot multi-use building, comprising the entire block bounded by Lexington Avenue, East 59th Street, Third Avenue and East 58th Street in Manhattan. The building contains 889,000 and 174,000 of netrentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold. Bloomberg L.P. (“Bloomberg”) occupies all of the office space. The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants;

• Rego Park I, a 343,000 square foot shopping center, located on Queens Boulevard and 63^rd Road in Queens. The center is anchored by a 195,000 square foot Sears department store, a 50,000 square foot Burlington Coat Factory, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls. In January 2017, Sears announced that it plans to close its store in the second quarter of 2017. Under the terms of the lease, Sears is obligated to pay rent through lease expiration in March of 2021;

• Rego Park II, a 609,000 square foot shopping center, adjacent to the Rego Park I shopping center in Queens. Thecenter is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s. In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado;
• The Alexander apartment tower, located above our Rego Park II shopping center, contains 312 units aggregating 255,000 square feet and is 98.1% leased as of December 31, 2016;

• Paramus, located at the intersection of Routes 4 and 17 in Paramus, New Jersey, consists of 30.3 acres of land that is leased to IKEA Property, Inc.; and

• Flushing, a 167,000 square foot building, located at Roosevelt Avenue and Main Street in Queens, that is sub-leased to New World Mall LLC for the remainder of our ground lease term.

Property to be developed

• Rego Park III, a 140,000 square foot land parcel adjacent to the Rego Park II shopping center in Queens, at the intersection of Junction Boulevard and the Horace Harding Service Road.

We have determined that our properties have similar economic characteristics and meet the criteria that permit the properties to be aggregated into one reportable segment (the leasing, management, development and redeveloping of properties in the greater New York City metropolitan area). Our chief operating decision-maker assesses and measures segment operating results based on a performance measure referred to as net operating income at the individual operating segment. Net operating income for each property represents net rental revenues less operating expenses.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation – The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Certain prior year balances have been reclassified in order to conform to current year presentation.

Recently Issued Accounting Literature – In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update ("ASU 2014-09") establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. In August 2015, the FASB issued an update (“ASU 2015-14”) to ASC 606, Deferral of the Effective Date, which defers the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017. In March 2016, the FASB issued an update (“ASU 2016-08”) to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09. In April 2016, the FASB issued an update (“ASU 2016-10”) to ASC 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued an update (“ASU 2016-12”) to ASC 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09. We are permitted to use either the retrospective or the modified retrospective method when adopting these standards.We are evaluating the impact of the adoption of these standards on our consolidated financial statements, and have not yet concluded on the method of adoption.

In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825, Financial Instruments. ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We are currently evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements.

In February 2016, the FASB issued (“ASU 2016-02”) Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase.  Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. ASU 2016-02 will more significantly impact the accounting for leases in which we are a lessee. We will be required to record a right-of-use asset and lease liability for our Flushing property ground lease upon adoption of this standard. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements, including the timing of adopting this standard.

In March 2016, the FASB issued an update (“ASU 2016-09”) Improvements to Employee Share-Based Payment Accounting to ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASU 2016-09 amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements.

In August 2016, the FASB issued an update (“ASU 2016-15”) Classification of Certain Cash Receipts and Cash Payments to ASC Topic 230, Statement of Cash Flows. ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice with respect to (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this update is not expected to have a significant impact on our consolidated financial statements.

In November 2016, the FASB issued an update (“ASU 2016-18”)Restricted Cashto ASC Topic 230, Statement of Cash Flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. 

In January 2017, the FASB issued an update (“ASU 2017-01”)Clarifying the Definition of a Businessto ASC Topic 805, Business Combinations. ASU 2017-01 provides a screen to determine when an asset acquired or group of assets acquired is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. ASU 2017-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We have elected to early adopt this standard, effective as of October 1, 2016, for all future acquisitions. The adoption of this standard will result in less real estate acquisitions qualifying as businesses and, accordingly, acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. There was no impact of the adoption of this standard in the fourth quarter of 2016, as there have been no acquisitions.

Real Estate – Real estate is carried at cost, net of accumulated depreciation and amortization. As of December 31, 2016 and 2015, the carrying amount of our real estate, net of accumulated depreciation and amortization, was $780,814,000 and $803,939,000, respectively. Maintenance and repairs are expensed as incurred. Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. We capitalize all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense. The capitalization period begins when development activities are underway and ends when it is determined that the asset is substantially complete and ready for its intended use, which is typically evidenced by the receipt of a temporary certificate of occupancy. General and administrative costs are expensed as incurred.

Our properties and related intangible assets, including properties to be developed in the future and currently under development, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset. An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value. If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates fair value, due to their short-term maturities. The majority of our cash and cash equivalents consist of (i) deposits at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit, (ii) United States Treasury Bills, (iii) money market funds, which invest in United States Treasury Bills and (iv) certificates of deposit placed through an account registry service (“CDARS”). To date we have not experienced any losses on our invested cash.

Short-term Investments – Short-term investments consist of United States Treasury Bills with original maturities greater than three but less than six months. These highly liquid investments are classified as available-for-sale and are presented at fair value on our consolidated balance sheets. Unrealized gains and losses resulting from these investments are included in “other comprehensive income” and are recognized in earnings only upon the expiration of the investments.

Restricted Cash –Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements.

Marketable Securities – Our marketable securities consist of common shares of The Macerich Company (NYSE: MAC) (“Macerich”), which are classified as available-for-sale. Available-for-sale securities are presented at fair value on our consolidated balance sheets. Unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income” and are recognized in earnings only upon the sale of the securities. We evaluate our marketable securities for impairment at the end of each reporting period. If investments have unrealized losses, we evaluate the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline. In our evaluation, we consider our ability and intent to hold our investment for a reasonable period of time sufficient for us to recover our cost basis, as well as the near-term prospects for the investment in relation to the severity and duration of the decline.

Allowance for Doubtful Accounts– We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,473,000and $918,000 as of December 31, 2016 and 2015, respectively) for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.

Deferred Charges – Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense. Direct costs related to leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases. All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate.

Revenue Recognition – We have the following revenue sources and revenue recognition policies:

Base Rent– revenue arising from tenant leases. These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.

Percentage Rent– revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds. These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).

Expense Reimbursements– revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties. This revenue is recognized in the same periods as the expenses are incurred.

Parking Income– revenue arising from the rental of parking space at our properties. This income is recognized as the service is provided.

Income Taxes – We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year. We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required. Dividends distributed for the year ended December 31, 2016 were characterized, for federal income taxes, as 97.7% ordinary income and 2.3% long-term capital gain income. Dividends distributed for the year ended December 31, 2015 were characterized, for federal income taxes, as 97.3% ordinary income and 2.7% long-term capital gain income. Dividends distributed for the year ended December 31, 2014 were categorized, for federal income tax purposes, as ordinary income.

The following table reconciles our net income to estimated taxable income for the years ended December 31, 2016, 2015 and 2014.

(Unaudited and in thousands)	Year Ended December 31,
	2016		2015		2014
Net income	$	86,477	$	76,907	$	67,925
Straight-line rent adjustments		2,347		(1,418)		(2,538)
Depreciation and amortization timing differences		(14,534)		2,477		2,283
Reversal of liability for income taxes		-		-		(420)
Other		2,975		751		765
Estimated taxable income	$	77,265	$	78,717	$	68,015

As of December 31, 2016, the net basis of our assets and liabilities for tax purposes are approximately $208,622,000 lower than the amount reported for financial statement purposes.

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Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

3. RELATED PARTY TRANSACTIONS

Vornado

As of December 31, 2016, Vornado owned 32.4% of our outstanding common stock. We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable.

Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (“Interstate”), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado. As of December 31, 2016, Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.3% of our outstanding common stock, in addition to the 2.2% they indirectly own through Vornado. Joseph Macnow, our Executive Vice President and Chief Financial Officer, is the Executive Vice President – Finance and Chief Administrative Officer of Vornado. Stephen W. Theriot, our Assistant Treasurer, is the Chief Financial Officer of Vornado.

Management and Development Agreements

We pay Vornado an annual management fee equal to the sum of (i) $2,800,000, (ii) 2% of gross revenue from the Rego Park II shopping center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $297,000, escalating at 3% per annum, for managing the common area of 731 Lexington Avenue. Vornado is also entitled to a development fee equal to 6% of development costs, as defined.

Leasing Agreements

Vornado also provides us with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2% of rent for the eleventh through the twentieth year of a lease term, and 1% of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants. In the event third-party real estate brokers are used, the fees to Vornado increase by 1% and Vornado is responsible for the fees to the third-party real estate brokers.Vornado is also entitled to a commission upon the sale of any of our assets equal to 3% of gross proceeds, as defined, for asset sales less than $50,000,000 and 1% of gross proceeds, as defined, for asset sales of $50,000,000 or more. Prior to December 22, 2014, the total of these amounts was payable in annual installments in an amount not to exceed $4,000,000, with interest on the unpaid balance at one-year LIBOR plus 1.0%. On December 22, 2014, the leasing agreements with Vornado were amended to eliminate the annual installment cap of $4,000,000 and we paid the accrued balance of leasing commissions of $40,353,000 to Vornado.

Other Agreements

We also have agreements with Building Maintenance Services, a wholly owned subsidiary of Vornado, to supervise (i) cleaning, engineering and security services at our Lexington Avenue property and (ii) security services at our Rego Park I and Rego Park II properties.

3.RELATED PARTY TRANSACTIONS– continued

The following is a summary of fees to Vornado under the various agreements discussed above

		Year Ended December 31,
(Amounts in thousands)		2016		2015		2014
Company management fees		$	2,800	$	2,800	$	2,800
Development fees			194		2,435		3,394
Leasing fees			7,401		2,950		1,430
Property management fees and payments for cleaning, engineering
	and security services		4,033		3,614		3,658
		$	14,428	$	11,799	$	11,282

As of December 31, 2016, the amounts due to Vornado were $54,000 for development fees; $428,000 for management, property management, cleaning and security fees; and $415,000 for leasing fees. As of December 31, 2015, the amounts due to Vornado were $5,795,000 for development fees; $283,000 for management, property management and cleaning fees; and $2,473,000 for leasing fees. In March 2016, we paid Vornado a development fee of $5,784,000 related to The Alexander apartment tower.

Toys “R” Us (“Toys”)

As of December 31, 2016, our affiliate, Vornado owned 32.5% of Toys.  Toys leases approximately 47,000 square feet of retail space at our Rego Park II shopping center.  Joseph Macnow, our Executive Vice President and Chief Financial Officer, and Vornado’s Executive Vice President - Finance and Chief Administrative Officer and Wendy A. Silverstein, a member of our Board of Directors, represent Vornado as members of Toys’ Board of Directors.  During the year ended December 31, 2016, we recognized $2,675,000of revenue related to the space leased by Toys.

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Marketable Securities

12 Months Ended

Dec. 31, 2016

Marketable Securities [Abstract]

Marketable Securities

4. MARKETABLE SECURITIES

As of December 31, 2016 and 2015, we owned 535,265 Macerich common shares, which were received in connection with the sale of Kings Plaza Regional Shopping Center (“Kings Plaza”)to Macerich in 2012. These shares have an economic cost of $56.05 per share, or $30,000,000 in the aggregate. As of December 31, 2016 and 2015, the fair value of these shares were $37,918,000and $43,191,000, respectively, based on Macerich’s closing share price of $70.84per share and $80.69 per share, respectively. These shares are included in “marketable securities” on our consolidated balance sheets and are classified as available-for-sale. Available-for-sale securities are presented at fair value and unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income.” Other comprehensive income includes unrealized losses of $5,273,000 and $1,455,000 for the years ended December 31, 2016and 2015, respectively.

In October 2015, we recognized $2,141,000 of dividend income as a result of a special dividend declared by Macerich, which is included as a component of “interest and other income, net,” in our consolidated statement of income for the year ended December 31, 2015.

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Mortgages Payable

12 Months Ended

Dec. 31, 2016

Mortgages Payable [Abstract]

Mortgages Payable

ALEXANDER’S, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

5. MORTGAGES PAYABLE

The following is a summary of our outstanding mortgages payable. We intend to refinance our maturing debt as it comes due.

			Interest Rate at		Balance at December 31,
(Amounts in thousands)		Maturity(1)	December 31, 2016		2016		2015
First mortgages secured by:
	Rego Park I shopping center (100% cash	Mar. 2018	0.35	%	$	78,246	$	78,246
	collateralized)(2)
	Paramus	Oct. 2018	2.90	%		68,000		68,000
	Rego Park II shopping center(3)	Nov. 2018	2.62	%		259,901		263,341
	731 Lexington Avenue, office space(4)	Mar. 2021	1.65	%		300,000		300,000
	731 Lexington Avenue, retail space(5)	Aug. 2022	2.05	%		350,000		350,000
	Total					1,056,147		1,059,587
	Deferred debt issuance costs, net of accumulated
	amortization of $6,824 and $4,267, respectively					(3,788)		(6,325)
					$	1,052,359	$	1,053,262
(1)	Represents the extended maturity where we have the unilateral right to extend.
(2)	Extended for two years from March 2016.
(3)	This loan bears interest at LIBOR plus 1.85%.
(4)	This loan bears interest at LIBOR plus 0.95%.
(5)	This loan bears interest at LIBOR plus 1.40%.

All of our debt is secured by mortgages and/or pledges of the stock of the subsidiaries holding the properties. The net carrying value of real estate collateralizing the debt amounted to $663,274,000 as of December 31, 2016. Our existing financing documents contain covenants that limit our ability to incur additional indebtedness on these properties, and in certain circumstances, provide for lender approval of tenants’ leases and yield maintenance to prepay them. As of December 31, 2016, the principal repayments for the next five years and thereafter are as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2017	$	3,707
2018		402,440
2019		-
2020		-
2021		300,000
Thereafter		350,000

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Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Fair Value Measurements [Abstract]

Fair Value Measurements

6. FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value.

Financial Assets and Liabilities Measured at Fair Value

Financial assets measured at fair value on our consolidated balance sheets as of December 31, 2016 and 2015 consist of marketable securities, which are presented in the table below, based on their level in the fair value hierarchy, and an interest rate cap which fair value is insignificant, as of December 31, 2016 and 2015. There were no financial liabilities measured at fair value as of December 31, 2016 and 2015.

		As of December 31, 2016
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	37,918	$	37,918	$	-	$	-
		As of December 31, 2015
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	43,191	$	43,191	$	-	$	-

Financial Assets and Liabilities not Measured at Fair Value

Financial assets andliabilities that are not measured at fair value on our consolidated balance sheetsinclude cash equivalentsand mortgages payable.Cash equivalentsare carried at cost, which approximates fair value due to their short-term maturities.The fair value of our mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist.The fair value of cash equivalents is classified as Level 1 and the fair value of mortgages payableis classified as Level 2.The table below summarizes the carrying amounts and fair value of these financial instruments as of December 31, 2016 and 2015.

			As of December 31, 2016				As of December 31, 2015
			Carrying		Fair		Carrying		Fair
(Amounts in thousands)			Amount		Value		Amount		Value
Assets:
	Cash equivalents	$	256,370	$	256,370	$	226,476	$	226,476
Liabilities:
	Mortgages payable (excluding deferred debt issuance costs, net)	$	1,056,147	$	1,045,000	$	1,059,587	$	1,054,000

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Leases

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

Leases

7. LEASES

As Lessor

We lease space to tenants in an office building and in retail centers. The rental terms range from approximately 5 to 25 years. The leases provide for the payment of fixed base rents payable monthly in advance as well as reimbursements of real estate taxes, insurance and maintenance costs. Retail leases may also provide for the payment by the lessee of additional rents based on a percentage of their sales. We also lease residential space at The Alexander apartment tower with one or two year lease terms.

Future base rental revenue under these non-cancelable operating leases is as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2017	$	145,464
2018		139,371
2019		136,370
2020		134,689
2021		118,062
Thereafter		845,921

These future minimum amounts do not include additional rents based on a percentage of retail tenants’sales. For the years ended December 31, 2016, 2015, and 2014, these rents were $182,000, $94,000, and $108,000, respectively.

Bloomberg accounted for $104,590,000, $94,468,000 and $91,109,000, representing approximately46%, 45% and 45% of our total revenues in each of the years ended December 31, 2016, 2015 and 2014, respectively. No other tenant accounted for more than 10% of our total revenues. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data.

In January 2016, we entered into a lease amendment with Bloomberg which extends the lease term related to 192,000 square feet of office space at our 731 Lexington Avenue property to be coterminous with the other 697,000 square feet of office space leased by Bloomberg through February 2029, with a ten-year extension option. In connection with the lease amendment,Bloomberg provided a $200,000,000 letter of credit, which amount may be reduced in certain circumstances. We may draw on this letter of credit subject to certain terms of the lease amendment, including an event of default by Bloomberg. Upon execution of the lease amendment in January 2016, we paid an $8,916,000 leasing commission of which $7,200,000 was to a third party broker and $1,716,000 was to Vornado.

As Lessee

We are a tenant under a long-term ground lease at our Flushing property, which expires in 2027 and has one 10-year extension option. Future lease payments under this operating lease, excluding the extension option, are as follows:

(Amounts in thousands)
Year Ending December 31,	Amount
2017	$	792
2018		800
2019		800
2020		800
2021		800
Thereafter		4,067

Rent expense was $746,000 in each of the years ended December 31, 2016, 2015 and 2014.

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2016

Stock-Based Compensation [Abstract]

Stock-Based Compensation

8. STOCK-BASED COMPENSATION

Our 2016 Omnibus Stock Plan, which was adopted in May 2016 replacing the expiring 2006 Omnibus Stock Plan, provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, deferred stock units (“DSUs”) and performance shares, as defined, to the directors, officers and employees of the Company and Vornado, and any other person or entity as designated by the Omnibus Stock Plan Committee of our Board of Directors. As of December 31, 2016, there were 8,505 DSUs outstanding and 498,376 shares were available for future grant under the 2016 Omnibus Stock Plan. We account for all stock-based compensation in accordance with ASC 718.

In May 2016, we granted each of the members of our Board of Directors 203 DSUs with a grant date fair value of $56,250 per grant, or $450,000 in the aggregate. The DSUs entitle the holders to receive shares of the Company’s common stock without the payment of any consideration. The DSUs vested immediately and accordingly, were expensed on the date of grant, but the shares of common stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Company’s Board of Directors.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9. COMMITMENTS AND CONTINGENCIES

Insurance

We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, and all-risk property and rental value insurance coverage with limits of $1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties.

Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020. Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to FNSIC. For NBCR acts, FNSIC is responsible for a $348,000 deductible ($293,000 effective January 1, 2017) and 16% of the balance (17% effective January 1, 2017) of a covered loss, and the Federal government is responsible for the remaining 84% (83% effective January 1, 2017) of a covered loss. We are ultimately responsible for any loss incurred by FNSIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.

Our mortgage loans are non-recourse to us and contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties.

Rego Park I Litigation

On June 24, 2014, Sears Roebuck and Co. (“Sears”) filed a lawsuit in the Supreme Court of the State of New York against Vornado and us (and certain of our subsidiaries) with regard to space that Sears leases at our Rego Park I property alleging that the defendants are liable for harm Sears has suffered as a result of (a) water intrusions into the premises, (b) two fires in February 2014 that caused damages to those premises, and (c) alleged violations of the Americans with Disabilities Act in the premises’ parking garage. Sears asserted various causes of actions for damages and sought to compel compliance with landlord’s obligations to repair the premises and to provide security, and to compel us to abate a nuisance that Sears claims was a cause of the water intrusions into its premises. In addition to injunctive relief, Sears sought, among other things, damages of not less than $4 million and future damages it estimated would not be less than $25 million. In March 2016, Sears withdrew its claim for future damages leaving a remaining claim for property damages, which we estimate to be approximately $650,000 based on information provided by Sears. We intend to defend the remaining claim vigorously. The amount or range of reasonable possible losses, if any, is not expected to be greater than $650,000.

Paramus

In 2001, we leased 30.3 acres of land located in Paramus, New Jersey to IKEA Property, Inc. The lease has a purchase option in 2021 for $75,000,000. The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 2.90%, which matures in October 2018. The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan. If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a gain on sale of land of approximately $60,000,000. If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term.

Letters of Credit

Approximately $2,074,000 of standby letters of credit were issued and outstanding as of December 31, 2016.

Other

In October 2015, the New York City Department of Finance (“NYC DOF”) issued a Notice of Determination to us assessing an additional $21,300,000 of transfer taxes (including interest and penalties as of December 31, 2016) in connection with the sale of Kings Plaza in 2012. We believe that the NYC DOF’s claim is without merit and intend to vigorously contest this assessment. We have determined that the likelihood of a loss related to this issue is not probable and, after consultation with legal counsel, that the outcome of this assessment is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

During the years ended December 31, 2016 and 2015, we received approximately $825,000 and $2,100,000 from bankruptcy recoveries, respectively, which is included as “interest and other income, net” in our consolidated statements of income.

There are various other legal actions against us in the ordinary course of business. In our opinion, the outcome of such matters in the aggregate will not have a material effect on our financial position, results of operations or cash flows.

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Multiemployer Benefit Plans

12 Months Ended

Dec. 31, 2016

Multiemployer Benefit Plans [Abstract]

Multiemployer Benefit Plans

10.MULTIEMPLOYER BENEFIT PLANS

Our subsidiaries make contributions to certain multiemployer defined benefit plans (“Multiemployer Pension Plans”) and health plans (“Multiemployer Health Plans”) for our union represented employees, pursuant to the respective collective bargaining agreements.

Multiemployer Pension Plans

Multiemployer Pension Plans differ from single-employer pension plans in that (i) contributions to multiemployer plans may be used to provide benefits to employees of other participating employers and (ii) if other participating employers fail to make their contributions, each of our subsidiaries may be required to bear their pro rata share of unfunded obligations. If a participating subsidiary withdraws from a plan in which it participates, it may be subject to a withdrawal liability. As of December 31, 2016, our subsidiaries’ participation in these plans were not significant to our consolidated financial statements.

In the years ended December 31, 2016, 2015 and 2014 our subsidiaries contributed$147,000, $144,000 and $144,000, respectively, towards Multiemployer Pension Plans. Our subsidiaries’ contributions did not represent more than 5% of total employer contributions in any of these plans for the years ended December 31, 2016, 2015 and 2014.

Multiemployer Health Plans

Multiemployer Health Plans in which our subsidiaries participate provide health benefits to eligible active and retired employees. In the years ended December 31, 2016, 2015 and 2014 our subsidiaries contributed $539,000, $554,000 and $533,000, respectively, towards these plans.

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Earnings Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share

Earnings Per Share

11. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted income per share, including a reconciliation of net income and the number of shares used in computing basic and diluted income per share. Basic income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period, and assumes all potentially dilutive securities were converted into common shares at the earliest date possible. There were no potentially dilutive securities outstanding during the years ended December 31, 2016, 2015 and 2014.

		For the Year Ended December 31,
(Amounts in thousands, except share and per share amounts)		2016		2015		2014
	Income from continuing operations	$	86,477	$	76,907	$	67,396
	Income from discontinued operations		-		-		529
	Net income – basic and diluted	$	86,477	$	76,907	$	67,925
	Weighted average shares outstanding – basic and diluted		5,114,084		5,112,352		5,110,628
	Income from continuing operations	$	16.91	$	15.04	$	13.19
	Income from discontinued operations		-		-		0.10
	Net income per common share – basic and diluted	$	16.91	$	15.04	$	13.29

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Summary Of Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2016

Summary of Quarterly Results (Unaudited)

Summary of Quarterly Results (Unaudited)

12. SUMMARY OF QUARTERLY RESULTS (UNAUDITED)

							Net Income Per
							Common Share(1)
	(Amounts in thousands, except per share amounts)		Revenues		Net Income		Basic		Diluted
	2016
		December 31	$	57,253	$	21,655	$	4.23	$	4.23
		September 30		57,120		21,036		4.11		4.11
		June 30		57,005		21,767		4.26		4.26
		March 31		55,558		22,019		4.31		4.31
	2015
		December 31	$	52,819	$	23,572	$	4.61	$	4.61
		September 30		52,414		18,172		3.55		3.55
		June 30		50,646		17,341		3.39		3.39
		March 31		52,036		17,822		3.49		3.49
_______________________
(1)	The total for the year may differ from the sum of the quarters as a result of weighting.

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Schedule II: Valuation and Qualifying accounts

12 Months Ended

Dec. 31, 2016

Schedule II: Valuation and Qualifying Accounts [Abstract]

Schedule II: Valuation and Qualifying Accounts

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
(Amounts in thousands)
	Column A		Column B		Column C		Column D		Column E
					Additions:		Deductions:
			Balance at		Charged		Uncollectible		Balance
			Beginning		Against		Accounts		at End
	Description		of Year		Operations		Written Off		of Year
	Allowance for doubtful accounts:
		Year Ended December 31, 2016	$	918	$	557	$	(2)	$	1,473
		Year Ended December 31, 2015	$	1,544	$	(314)	$	(312)	$	918
		Year Ended December 31, 2014	$	1,993	$	705	$	(1,154)	$	1,544

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Schedule III: Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2016

Schedule III: Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III: Real Estate and Accumulated Depreciation

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2016
(Amounts in thousands)
COLUMN A			COLUMN B		COLUMN C				COLUMN D		COLUMN E								COLUMN F		COLUMN G	COLUMN H	COLUMN I
											Gross Amount at Which												Life on which
											Carried at Close of Period												Depreciation
					Initial Cost to Company(2)				Costs							Development			Accumulated				in Latest
							Buildings		Capitalized				Buildings			and			Depreciation				Income
							and Leasehold		Subsequent				and Leasehold		Construction				and		Date of	Date	Statement
Description			Encumbrances(1)		Land		Improvements		to Acquisition		Land		Improvements		In Progress		Total(3)		Amortization		Construction	Acquired(2)	is Computed
	New York, NY
		Rego Park I	$	78,246	$	1,647	$	8,953	$	52,368	$	1,647	$	61,285	$	36	$	62,968	$	31,212	1959	1992	3-39 years
		Rego Park II		259,901		3,127		1,467		386,655		3,127		387,999		123		391,249		73,186	2009	1992	3-40 years
		The Alexander apartment tower		-		-		-		119,105		-		119,105		-		119,105		6,081	2016	1992	3-39 years
		Rego Park III		-		779		-		3,124		779		503		2,621		3,903		198	N/A	1992	5-15 years
		Flushing		-		-		1,660		(107)		-		1,553		-		1,553		909	1975(4)	1992	N/A
		Lexington Avenue		650,000		14,432		12,355		416,065		27,497		415,355		-		442,852		141,151	2003	1992	9-39 years
	Paramus, NJ			68,000		1,441		-		10,313		11,754		-		-		11,754		-	N/A	1992	N/A
	Other Properties			-		167		1,804		(1,804)		167		-		-		167		-	N/A	1992	N/A
TOTAL			$	1,056,147	$	21,593	$	26,239	$	985,719	$	44,971	$	985,800	$	2,780	$	1,033,551	$	252,737
		__________________________
(1)		Excludes deferred debt issuance costs, net of $3,788.
(2)		Initial cost is as of May 15, 1992 (the date on which the Company commenced its real estate operations).
(3)		The net basis of the Company’s assets and liabilities for tax purposes is approximately $208,622 lower than the amount reported for financial statement purposes.
(4)		Represents the date the lease was acquired.

ALEXANDER’S, INC. AND SUBSIDIARIES
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
(Amounts in thousands)
				December 31,
				2016		2015		2014
	REAL ESTATE:
		Balance at beginning of period		$	1,029,472	$	993,927	$	919,576
		Changes during the period:
			Land		-		-		-
			Buildings and leasehold improvements		12,464		112,538		4,043
			Development and construction in progress		(6,706)		(65,803)		70,365
					1,035,230		1,040,662		993,984
			Less: Fully depreciated assets		(1,679)		(11,190)		(57)
		Balance at end of period		$	1,033,551	$	1,029,472	$	993,927
	ACCUMULATED DEPRECIATION:
		Balance at beginning of period		$	225,533	$	210,025	$	185,375
		Additions charged to operating expenses			28,883		26,698		24,707
					254,416		236,723		210,082
			Less: Fully depreciated assets		(1,679)		(11,190)		(57)
		Balance at end of period		$	252,737	$	225,533	$	210,025

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Summary Of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation – The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Certain prior year balances have been reclassified in order to conform to current year presentation.

Recently Issued Accounting Literature

Recently Issued Accounting Literature – In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update ("ASU 2014-09") establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. In August 2015, the FASB issued an update (“ASU 2015-14”) to ASC 606, Deferral of the Effective Date, which defers the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017. In March 2016, the FASB issued an update (“ASU 2016-08”) to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09. In April 2016, the FASB issued an update (“ASU 2016-10”) to ASC 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued an update (“ASU 2016-12”) to ASC 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09. We are permitted to use either the retrospective or the modified retrospective method when adopting these standards.We are evaluating the impact of the adoption of these standards on our consolidated financial statements, and have not yet concluded on the method of adoption.

In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825, Financial Instruments. ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We are currently evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements.

In February 2016, the FASB issued (“ASU 2016-02”) Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase.  Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. ASU 2016-02 will more significantly impact the accounting for leases in which we are a lessee. We will be required to record a right-of-use asset and lease liability for our Flushing property ground lease upon adoption of this standard. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements, including the timing of adopting this standard.

In March 2016, the FASB issued an update (“ASU 2016-09”) Improvements to Employee Share-Based Payment Accounting to ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASU 2016-09 amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements.

In August 2016, the FASB issued an update (“ASU 2016-15”) Classification of Certain Cash Receipts and Cash Payments to ASC Topic 230, Statement of Cash Flows. ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice with respect to (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. The adoption of this update is not expected to have a significant impact on our consolidated financial statements.

In November 2016, the FASB issued an update (“ASU 2016-18”)Restricted Cashto ASC Topic 230, Statement of Cash Flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. 

In January 2017, the FASB issued an update (“ASU 2017-01”)Clarifying the Definition of a Businessto ASC Topic 805, Business Combinations. ASU 2017-01 provides a screen to determine when an asset acquired or group of assets acquired is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. ASU 2017-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We have elected to early adopt this standard, effective as of October 1, 2016, for all future acquisitions. The adoption of this standard will result in less real estate acquisitions qualifying as businesses and, accordingly, acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. There was no impact of the adoption of this standard in the fourth quarter of 2016, as there have been no acquisitions.

Real Estate

Real Estate – Real estate is carried at cost, net of accumulated depreciation and amortization. As of December 31, 2016 and 2015, the carrying amount of our real estate, net of accumulated depreciation and amortization, was $780,814,000 and $803,939,000, respectively. Maintenance and repairs are expensed as incurred. Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. We capitalize all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense. The capitalization period begins when development activities are underway and ends when it is determined that the asset is substantially complete and ready for its intended use, which is typically evidenced by the receipt of a temporary certificate of occupancy. General and administrative costs are expensed as incurred.

Our properties and related intangible assets, including properties to be developed in the future and currently under development, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset. An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value. If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

Cash and Cash Equivalents

Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates fair value, due to their short-term maturities. The majority of our cash and cash equivalents consist of (i) deposits at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit, (ii) United States Treasury Bills, (iii) money market funds, which invest in United States Treasury Bills and (iv) certificates of deposit placed through an account registry service (“CDARS”). To date we have not experienced any losses on our invested cash.

Short Term Investments

Short-term Investments – Short-term investments consist of United States Treasury Bills with original maturities greater than three but less than six months. These highly liquid investments are classified as available-for-sale and are presented at fair value on our consolidated balance sheets. Unrealized gains and losses resulting from these investments are included in “other comprehensive income” and are recognized in earnings only upon the expiration of the investments.

Restricted Cash

Restricted Cash –Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements.

Marketable Securities

Marketable Securities – Our marketable securities consist of common shares of The Macerich Company (NYSE: MAC) (“Macerich”), which are classified as available-for-sale. Available-for-sale securities are presented at fair value on our consolidated balance sheets. Unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income” and are recognized in earnings only upon the sale of the securities. We evaluate our marketable securities for impairment at the end of each reporting period. If investments have unrealized losses, we evaluate the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline. In our evaluation, we consider our ability and intent to hold our investment for a reasonable period of time sufficient for us to recover our cost basis, as well as the near-term prospects for the investment in relation to the severity and duration of the decline.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts– We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,473,000and $918,000 as of December 31, 2016 and 2015, respectively) for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.

Deferred Charges

Deferred Charges – Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense. Direct costs related to leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases. All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate.

Revenue Recognition

Revenue Recognition – We have the following revenue sources and revenue recognition policies:

Base Rent– revenue arising from tenant leases. These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.

Percentage Rent– revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds. These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).

Expense Reimbursements– revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties. This revenue is recognized in the same periods as the expenses are incurred.

Parking Income– revenue arising from the rental of parking space at our properties. This income is recognized as the service is provided.

Income Taxes

Income Taxes – We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year. We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required. Dividends distributed for the year ended December 31, 2016 were characterized, for federal income taxes, as 97.7% ordinary income and 2.3% long-term capital gain income. Dividends distributed for the year ended December 31, 2015 were characterized, for federal income taxes, as 97.3% ordinary income and 2.7% long-term capital gain income. Dividends distributed for the year ended December 31, 2014 were categorized, for federal income tax purposes, as ordinary income.

Fair Value Measurement

ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value.

Share-based Compensation, Option and Incentive Plans

The DSUs entitle the holders to receive shares of the Company’s common stock without the payment of any consideration. The DSUs vested immediately and accordingly, were expensed on the date of grant, but the shares of common stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Company’s Board of Directors.

Income Per Share

Diluted income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period, and assumes all potentially dilutive securities were converted into common shares at the earliest date possible.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Summary Of Significant Accounting Policies [Abstract]

Reconciliation Of Net Income Attributable To Common Stockholders To Estimated Taxable Income

(Unaudited and in thousands)	Year Ended December 31,
	2016		2015		2014
Net income	$	86,477	$	76,907	$	67,925
Straight-line rent adjustments		2,347		(1,418)		(2,538)
Depreciation and amortization timing differences		(14,534)		2,477		2,283
Reversal of liability for income taxes		-		-		(420)
Other		2,975		751		765
Estimated taxable income	$	77,265	$	78,717	$	68,015

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Summary of Fees to Vornado

		Year Ended December 31,
(Amounts in thousands)		2016		2015		2014
Company management fees		$	2,800	$	2,800	$	2,800
Development fees			194		2,435		3,394
Leasing fees			7,401		2,950		1,430
Property management fees and payments for cleaning, engineering
	and security services		4,033		3,614		3,658
		$	14,428	$	11,799	$	11,282

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Mortgages Payable (Tables)

12 Months Ended

Dec. 31, 2016

Mortgages Payable [Abstract]

Summary of Notes and Mortgages Payable

			Interest Rate at		Balance at December 31,
(Amounts in thousands)		Maturity(1)	December 31, 2016		2016		2015
First mortgages secured by:
	Rego Park I shopping center (100% cash	Mar. 2018	0.35	%	$	78,246	$	78,246
	collateralized)(2)
	Paramus	Oct. 2018	2.90	%		68,000		68,000
	Rego Park II shopping center(3)	Nov. 2018	2.62	%		259,901		263,341
	731 Lexington Avenue, office space(4)	Mar. 2021	1.65	%		300,000		300,000
	731 Lexington Avenue, retail space(5)	Aug. 2022	2.05	%		350,000		350,000
	Total					1,056,147		1,059,587
	Deferred debt issuance costs, net of accumulated
	amortization of $6,824 and $4,267, respectively					(3,788)		(6,325)
					$	1,052,359	$	1,053,262
(1)	Represents the extended maturity where we have the unilateral right to extend.
(2)	Extended for two years from March 2016.
(3)	This loan bears interest at LIBOR plus 1.85%.
(4)	This loan bears interest at LIBOR plus 0.95%.
(5)	This loan bears interest at LIBOR plus 1.40%.

Schedule of Maturities of Long-term Debt

(Amounts in thousands)
Year Ending December 31,	Amount
2017	$	3,707
2018		402,440
2019		-
2020		-
2021		300,000
Thereafter		350,000

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Measurements [Abstract]

Fair Value, Assets Measured on Recurring Basis

		As of December 31, 2016
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	37,918	$	37,918	$	-	$	-
		As of December 31, 2015
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	43,191	$	43,191	$	-	$	-

Fair Value, by Balance Sheet Grouping

			As of December 31, 2016				As of December 31, 2015
			Carrying		Fair		Carrying		Fair
(Amounts in thousands)			Amount		Value		Amount		Value
Assets:
	Cash equivalents	$	256,370	$	256,370	$	226,476	$	226,476
Liabilities:
	Mortgages payable (excluding deferred debt issuance costs, net)	$	1,056,147	$	1,045,000	$	1,059,587	$	1,054,000

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Leases (Tables)

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

Schedule Of Future Minimum Payments Receivable For Operating Leases

(Amounts in thousands)
Year Ending December 31,	Amount
2017	$	145,464
2018		139,371
2019		136,370
2020		134,689
2021		118,062
Thereafter		845,921

Schedule of Future Minimum Rental Payments for Operating Leases

(Amounts in thousands)
Year Ending December 31,	Amount
2017	$	792
2018		800
2019		800
2020		800
2021		800
Thereafter		4,067

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share

Schedule of Earnings Per Share, Basic and Diluted

		For the Year Ended December 31,
(Amounts in thousands, except share and per share amounts)		2016		2015		2014
	Income from continuing operations	$	86,477	$	76,907	$	67,396
	Income from discontinued operations		-		-		529
	Net income – basic and diluted	$	86,477	$	76,907	$	67,925
	Weighted average shares outstanding – basic and diluted		5,114,084		5,112,352		5,110,628
	Income from continuing operations	$	16.91	$	15.04	$	13.19
	Income from discontinued operations		-		-		0.10
	Net income per common share – basic and diluted	$	16.91	$	15.04	$	13.29

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Summary Of Quarterly results (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Quarterly Results (Unaudited)

Summary of Quarterly Results (Unaudited)

							Net Income Per
							Common Share(1)
	(Amounts in thousands, except per share amounts)		Revenues		Net Income		Basic		Diluted
	2016
		December 31	$	57,253	$	21,655	$	4.23	$	4.23
		September 30		57,120		21,036		4.11		4.11
		June 30		57,005		21,767		4.26		4.26
		March 31		55,558		22,019		4.31		4.31
	2015
		December 31	$	52,819	$	23,572	$	4.61	$	4.61
		September 30		52,414		18,172		3.55		3.55
		June 30		50,646		17,341		3.39		3.39
		March 31		52,036		17,822		3.49		3.49
_______________________
(1)	The total for the year may differ from the sum of the quarters as a result of weighting.

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Organization (Details)	12 Months Ended
	Dec. 31, 2016 a ft² Segment aptunits property	Dec. 31, 2001 a
Operating Properties
Number of properties in greater New York City metropolitan area (in property) | property	7
Number of Reportable Segments | Segment	1
Rego Park II | Retail space | Toys R Us/ Babies R Us
Operating Properties
Area of property (in square feet)	47,000
Paramus | Tenant Occupant | Ikea
Operating Properties
Area Of Land | a		30.3
Operating property | 731 Lexington Avenue
Operating Properties
Area of property (in square feet)	1,311,000
Operating property | 731 Lexington Avenue | Office space
Operating Properties
Area of property (in square feet)	889,000
Operating property | 731 Lexington Avenue | Office space | Tenant Occupant | Bloomberg
Operating Properties
Area of property (in square feet)	889,000
Operating property | 731 Lexington Avenue | Retail space
Operating Properties
Area of property (in square feet)	174,000
Operating property | 731 Lexington Avenue | Retail space | Tenant Occupant | Home Depot
Operating Properties
Area of property (in square feet)	83,000
Operating property | 731 Lexington Avenue | Retail space | Tenant Occupant | Container store
Operating Properties
Area of property (in square feet)	34,000
Operating property | 731 Lexington Avenue | Retail space | Tenant Occupant | Hennes Mauritz
Operating Properties
Area of property (in square feet)	27,000
Operating property | 731 Lexington Avenue | Residence space
Operating Properties
Area of property (in square feet)	248,000
Number of units in real estate property (in units) | aptunits	105
Operating property | Rego Park I
Operating Properties
Area of property (in square feet)	343,000
Operating property | Rego Park I | Tenant Occupant | Anchor | Sears
Operating Properties
Area of property (in square feet)	195,000
Operating property | Rego Park I | Tenant Occupant | Anchor | Burlington Coat Factory
Operating Properties
Area of property (in square feet)	50,000
Operating property | Rego Park I | Tenant Occupant | Anchor | Bed Bath and Beyond
Operating Properties
Area of property (in square feet)	46,000
Operating property | Rego Park I | Tenant Occupant | Anchor | Marshalls
Operating Properties
Area of property (in square feet)	36,000
Operating property | Rego Park II
Operating Properties
Area of property (in square feet)	609,000
Operating property | Rego Park II | Tenant Occupant | Anchor | Costco
Operating Properties
Area of property (in square feet)	145,000
Operating property | Rego Park II | Tenant Occupant | Anchor | Century 21
Operating Properties
Area of property (in square feet)	135,000
Operating property | Rego Park II | Tenant Occupant | Anchor | Kohl's
Operating Properties
Area of property (in square feet)	133,000
Operating property | Rego Park II | Tenant Occupant | Anchor | Toys R Us/ Babies R Us
Operating Properties
Area of property (in square feet)	47,000
Operating property | Paramus
Operating Properties
Area Of Land | a	30.3
Operating property | Paramus | Tenant Occupant | Ikea
Operating Properties
Area Of Land | a	30.3
Operating property | Flushing property
Operating Properties
Area of property (in square feet)	167,000
Operating property | Flushing property | Tenant Occupant | New World Mall LLC
Operating Properties
Area of property (in square feet)	167,000
Operating property | Alexander apartment tower
Operating Properties
Area of property (in square feet)	255,000
Number of units in real estate property (in units) | aptunits	312
Real Estate Property Percentage Leased	98.10%
Properties to be developed | Rego Park III
Operating Properties
Area Of Land	140,000

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Real Estate Properties
Real estate, net	$ 780,814	$ 803,939
Allowance For Doubtful Accounts
Allowance for doubtful accounts (in US dollars)	$ 1,473	$ 918
Maximum
Cash and Cash Equivalents
Cash And Cash Equivalent Maturity Maximum	3 months
Rego Park I
Real Estate Properties
Percentage of cash mortgage collateralized	100.00%

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Summary of Significant Accounting Policies (Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Tax Treatment Of Dividend
Internal Taxable Income Distribution Policy (in percentage)									100.00%
Differences Between Book and Tax Basis	$ 208,622								$ 208,622
Reconciliation of Net Income to Estimated Taxable Income
Net income	$ 21,655	$ 21,036	$ 21,767	$ 22,019	$ 23,572	$ 18,172	$ 17,341	$ 17,822	86,477	$ 76,907	$ 67,925
Straight-lining of rental income									2,347	(1,418)	(2,538)
Depreciation and amortization timing differences									(14,534)	2,477	2,283
Reversal of income tax liability									0	0	(420)
Other									2,975	751	765
Estimated taxable income									$ 77,265	$ 78,717	$ 68,015
Minimum
Tax Treatment Of Dividend
Real Estate Investment Trust Distributable Income Policy (in percentage)									90.00%
Ordinary Income
Tax Treatment Of Dividend
Payments Of Dividends Net Percent									97.70%	97.30%	100.00%
Long Term Capital Gain
Tax Treatment Of Dividend
Payments Of Dividends Net Percent									2.30%	2.70%	0.00%

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Related Party Transactions (Details)	1 Months Ended		12 Months Ended
	Dec. 22, 2014 USD ($)	Dec. 21, 2014 USD ($)	Dec. 31, 2016 USD ($) ft² $ / ft²	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Mar. 31, 2016 USD ($)
Other Agreements
Property rentals			$ 151,444,000	$ 138,688,000	$ 136,628,000
Rego Park II | Retail space | Toys R Us/ Babies R Us
Other Agreements
Area of property (in square feet) | ft²			47,000
Property rentals			$ 2,675,000
Vornado
Related Party Transaction
Noncontrolling Interest, Ownership Percentage by Parent			32.40%
Management and Development Agreements
Management Fee Agreement Value (in US dollars)			$ 2,800,000
Vornado | Toys R Us/ Babies R Us
Other Agreements
Related Party's Ownership Interest In Tenants			32.50%
Vornado | Development fees
Management and Development Agreements
Development fee as percentage of development costs			6.00%
Other Agreements
Fees paid (in US dollars)			$ 54,000	5,795,000
Vornado | Development fees | Alexander apartment tower
Other Agreements
Fees paid (in US dollars)						$ 5,784,000
Vornado | Leasing Fees
Leasing Agreements
Lease Fee Percentage Of Rent One To Ten Years			3.00%
Lease Fee Percentage Of Rent Eleven To Twenty Years			2.00%
Lease Fee Percentage Of Rent Twenty First To Thirty Years			1.00%
Percentage Increase Lease Fee If Broker Used			1.00%
Asset Sale Commission Threshold (in US dollars)			$ 50,000,000
Percentage Commissions On Sale Of Assets Under Fifty Million			3.00%
Percentage Commissions On Sale Of Assets Over Fifty Million			1.00%
Leasing services fee and commission on asset sale, annual installment, maximum. (in US dollars)		$ 4,000,000
Repayment of leasing costs (in US Dollars)	$ 40,353,000
Other Agreements
Fees paid (in US dollars)			$ 415,000	2,473,000
Vornado | Leasing Fees | LIBOR
Leasing Agreements
Debt Instrument, Description of Variable Rate Basis		one-year LIBOR
Basis spread over LIBOR		1.00%
Vornado | Property Management Fees | 731 Lexington Avenue | Office And Retail Space
Management and Development Agreements
Property Management Fee Agreement Price Per Square Foot | $ / ft²			0.5
Vornado | Property Management Fees | 731 Lexington Avenue | Common Area
Management and Development Agreements
Property Management Fee Agreement Value (in US dollars)			$ 297,000
Property Management Fee Escalation Percentage Per Annum			3.00%
Vornado | Property Management Fees | Rego Park II | Retail space
Management and Development Agreements
Property Management Fee Agreement Percentage Of Income			2.00%
Vornado | Management, property management, cleaning and security fees
Other Agreements
Fees paid (in US dollars)			$ 428,000	$ 283,000
Mr. Roth, Interstate, David Mandelbaum, and Russell B. Wight, Jr.
Related Party Transaction
Ownership Interest in the Company			26.30%
IP & Partners Through Vornado
Related Party Transaction
Ownership Interest in the Company			2.20%

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Related Party Transactions (Fees to Vornado) (Details) - Vornado - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of fees to Vornado
Fees to related party (in US dollars)	$ 14,428	$ 11,799	$ 11,282
Company management fees
Summary of fees to Vornado
Fees to related party (in US dollars)	2,800	2,800	2,800
Development fees
Summary of fees to Vornado
Fees to related party (in US dollars)	194	2,435	3,394
Leasing Fees
Summary of fees to Vornado
Fees to related party (in US dollars)	7,401	2,950	1,430
Property Management Fees
Summary of fees to Vornado
Fees to related party (in US dollars)	$ 4,033	$ 3,614	$ 3,658

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Marketable Securities (Details) - Macerich interest - USD ($)	1 Months Ended	12 Months Ended
	Oct. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Investment holdings
Macerich Common Shares		535,265	535,265
Economic basis per share (in dollars per share)		$ 56.05
GAAP Cost		$ 30,000,000
Fair Value		$ 37,918,000	$ 43,191,000
Closing share price (in dollars per share)		$ 70.84	$ 80.69
Unrealized gain (loss)		$ (5,273,000)	$ (1,455,000)
Investment Income Dividend	$ 2,141,000		$ 2,141,000

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Mortgages Payable (Outstanding mortgages payable) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Mortgage Loans on Real Estate
Deferred debt issuance costs, net of accumulated amortization of $6,824 and $4,267, respectively		$ (3,788)
Notes Payable (in US dollars)		$ 1,052,359	$ 1,053,262
Rego Park I
Mortgage Loans on Real Estate
Percentage of cash mortgage collateralized		100.00%
Mortgages | Secured loan
Mortgage Loans on Real Estate
Notes Payable Gross		$ 1,056,147	1,059,587
Deferred debt issuance costs, net of accumulated amortization of $6,824 and $4,267, respectively		(3,788)	(6,325)
Notes Payable (in US dollars)		1,052,359	1,053,262
Deferred debt issuance costs, accumulated amortization (in US dollars)		$ 6,824	4,267
Mortgages | Secured loan | Rego Park I | Retail space
Mortgage Loans on Real Estate
Maturity date		Mar. 10, 2018
Interest rate (in percentage)		0.35%
Percentage of cash mortgage collateralized		100.00%
Notes Payable (in US dollars)		$ 78,246	78,246
Duration Of Mortgage Loan Extension	2 years
Mortgages | Secured loan | Rego Park II | Retail space
Mortgage Loans on Real Estate
Maturity date		Nov. 30, 2018
Interest rate (in percentage)		2.62%
Notes Payable (in US dollars)		$ 259,901	263,341
Mortgages | Secured loan | Rego Park II | Retail space | LIBOR
Mortgage Loans on Real Estate
Debt Instrument, Description of Variable Rate Basis		LIBOR
Basis spread over LIBOR (in percentage)		1.85%
Mortgages | Secured loan | 731 Lexington Avenue | Office space
Mortgage Loans on Real Estate
Maturity date		Mar. 11, 2021
Interest rate (in percentage)		1.65%
Notes Payable (in US dollars)		$ 300,000	300,000
Mortgages | Secured loan | 731 Lexington Avenue | Office space | LIBOR
Mortgage Loans on Real Estate
Debt Instrument, Description of Variable Rate Basis		LIBOR
Basis spread over LIBOR (in percentage)		0.95%
Mortgages | Secured loan | 731 Lexington Avenue | Retail space
Mortgage Loans on Real Estate
Maturity date		Aug. 31, 2022
Interest rate (in percentage)		2.05%
Notes Payable (in US dollars)		$ 350,000	350,000
Mortgages | Secured loan | 731 Lexington Avenue | Retail space | LIBOR
Mortgage Loans on Real Estate
Debt Instrument, Description of Variable Rate Basis		LIBOR
Basis spread over LIBOR (in percentage)		1.40%
Mortgages | Secured loan | Paramus
Mortgage Loans on Real Estate
Maturity date		Oct. 05, 2018
Interest rate (in percentage)		2.90%
Notes Payable (in US dollars)		$ 68,000	$ 68,000

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Mortgages Payable (Principal repayments for the next five years) (Details)	Dec. 31, 2016 USD ($)
Mortgages Payable [Abstract]
Net carrying value of real estate collaterizing the debt	$ 663,274,000
Repayments of Long-term Debt
2017	3,707,000
2018	402,440,000
2019	0
2020	0
2021	300,000,000
Thereafter	$ 350,000,000

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Fair Value Measurements (Financial Assets and Liabilities Measured at Fair Value) (Details) - Recurring - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financial Assets And Liabilities Measured At Fair Value
Marketable securities	$ 37,918	$ 43,191
Level 1
Financial Assets And Liabilities Measured At Fair Value
Marketable securities	37,918	43,191
Level 2
Financial Assets And Liabilities Measured At Fair Value
Marketable securities	0	0
Level 3
Financial Assets And Liabilities Measured At Fair Value
Marketable securities	$ 0	$ 0

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Fair Value Measurements (Financial Assets and Liabilities Not Measured at Fair Value) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Carrying Amount
Assets
Cash Equivalents	$ 256,370	$ 226,476
Liabilities
Mortgages payable (excluding deferred debt issuance costs, net)	1,056,147	1,059,587
Fair Value | Level 1
Assets
Cash Equivalents	256,370	226,476
Fair Value | Level 2
Liabilities
Mortgages payable (excluding deferred debt issuance costs, net)	$ 1,045,000	$ 1,054,000

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Leases (Narratives) (Details)	1 Months Ended	3 Months Ended								12 Months Ended
	Jan. 31, 2016 USD ($) ft²	Dec. 31, 2016 USD ($) options	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) options	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
As Lessor
Additional Rent Based on Percentage of Tenant's sales										$ 182,000	$ 94,000	$ 108,000
Real estate revenue, net (in dollars)		$ 57,253,000	$ 57,120,000	$ 57,005,000	$ 55,558,000	$ 52,819,000	$ 52,414,000	$ 50,646,000	$ 52,036,000	226,936,000	207,915,000	200,814,000
Leasing Fees | Vornado
As Lessor
Fees paid (in US dollars)		$ 415,000				$ 2,473,000				$ 415,000	2,473,000
Minimum
Leases Lease Terms
Lease term range as Lessor										5 years
Maximum
Leases Lease Terms
Lease term range as Lessor										25 years
Flushing property
As Lessee
Rent expense										$ 746,000	746,000	746,000
Flushing property | Ten year extension option
As Lessee
Lease expiration year										2027
Number Of Extension Options | options		1								1
Lease extension period										10 years
731 Lexington Avenue | Office space | Bloomberg | Initial Lease Agreement
As Lessor
Area of property (in square feet) | ft²	697,000
As Lessee
Leases Expiration Date	Feb. 28, 2029
Lease extension period	10 years
731 Lexington Avenue | Office space | Bloomberg | Lease Amendment
As Lessor
Area of property (in square feet) | ft²	192,000
Letter of credit issued by customer	$ 200,000,000
As Lessee
Leases Expiration Date	Feb. 28, 2029
Lease extension period	10 years
731 Lexington Avenue | Office space | Bloomberg | Lease Amendment | Leasing Fees
As Lessor
Fees paid (in US dollars)	$ 8,916,000
731 Lexington Avenue | Office space | Bloomberg | Lease Amendment | Leasing Fees | Third party Broker
As Lessor
Fees paid (in US dollars)	7,200,000
731 Lexington Avenue | Office space | Bloomberg | Lease Amendment | Leasing Fees | Vornado
As Lessor
Fees paid (in US dollars)	$ 1,716,000
Alexander apartment tower | Residence space | Minimum
Leases Lease Terms
Lease term range as Lessor										1 year
Alexander apartment tower | Residence space | Maximum
Leases Lease Terms
Lease term range as Lessor										2 years
Customer Concentration Risk | Bloomberg
As Lessor
Percentage Of Minimum Revenue Threshold Contributed By One Tenant (in percentage)										10.00%
Customer Concentration Risk | Bloomberg | Sales Revenue Services Net
As Lessor
Real estate revenue, net (in dollars)										$ 104,590,000	$ 94,468,000	$ 91,109,000
Percentage Rent Contributed By Tenant										46.00%	45.00%	45.00%

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Leases (Leases Future Minimum Payments) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Operating Leases, Future Minimum Payments Receivable
2017	$ 145,464
2018	139,371
2019	136,370
2020	134,689
2021	118,062
Thereafter	845,921
Operating Leases, Future Minimum Payments Due
2017	792
2018	800
2019	800
2020	800
2021	800
Thereafter	$ 4,067

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Stock-Based Compensation (Details) - Deferred Stock Units - USD ($)	1 Months Ended
	May 31, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Shares available for future grant under the plan		498,376
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Number		8,505
Director
Share-based Compensation Arrangement by Share-based Payment Award
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Granted Per Director (in shares)	203
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Grant Date Fair Value Per Grant	$ 56,250
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Grant Date Fair Value Total	$ 450,000

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Commitments and Contingencies (Insurance) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2017
General Liability
Insurance
Insurance Maximum Coverage Per Incident	$ 300,000,000
Insurance Maximum Coverage Per Property	300,000,000
All Risk Property And Rental Value
Insurance
Insurance Maximum Coverage Per Incident	1,700,000,000
FNSIC | Terrorism Coverage Including NBCR
Insurance
Insurance Maximum Coverage Per Incident	1,700,000,000
Insurance Maximum Coverage In Aggregate	$ 1,700,000,000
Insurance Coverage End Date	December 2020
FNSIC | NBCR
Insurance
Insurance Deductible	$ 348,000
Self Insured Responsibility (in percentage)	16.00%
Federal Government Responsibility (in percentage)	84.00%
FNSIC | NBCR | Subsequent Event
Insurance
Insurance Deductible		$ 293,000
Self Insured Responsibility (in percentage)		17.00%
Federal Government Responsibility (in percentage)		83.00%

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Commitments and Contingencies (Litigation and contingencies) (Details)			1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 15, 2015 USD ($)	Jun. 24, 2014 USD ($)	Feb. 28, 2014 Fires	Mar. 31, 2016 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2001 a
Paramus Property
Mortgages payable, net of deferred debt issuance costs						$ 1,052,359,000	$ 1,053,262,000
Letters Of Credit
Standby letters of credit, outstanding						2,074,000
Letters Of Credit Issued						$ 2,074,000
Minimum
Paramus Property
Lease term range as Lessor						5 years
Maximum
Paramus Property
Lease term range as Lessor						25 years
Rego Park I
Loss Contingency
Proceeds from Legal Settlements						$ 825,000	$ 2,100,000
Rego Park I | Sears
Loss Contingency
Number Of Fires | Fires			2
Rego Park I | Sears | Minimum
Loss Contingency
Loss Contingency, Damages Sought, Value		$ 4,000,000
Rego Park I | Sears | Minimum | Estimated Future Damages
Loss Contingency
Loss Contingency, Damages Sought, Value		$ 25,000,000
Rego Park I | Sears | Forecast
Loss Contingency
Loss Contingency, Damages Sought, Value				$ 650,000
Rego Park I | Sears | Forecast | Maximum
Loss Contingency
Estimate of possible loss						650,000
Paramus | Tenant Occupant | Ikea
Paramus Property
Area Of Land | a								30.3
Mortgages payable, net of deferred debt issuance costs						$ 68,000,000
Fixed interest rate on the debt (in percentage)						2.90%
Debt Instrument Maturity Date String						Oct. 01, 2018
Triple-net rent, annual amount						$ 700,000
Paramus | Tenant Occupant | Ikea | Forecast
Paramus Property
Property purchase option exercisable be leasee with purchase option in 2021					$ 75,000,000
Purchase option exercised, net cash proceeds from sale of land					7,000,000
Purchase option excercised, gain on sale of land					60,000,000
Purchase option not excercised amount included in triple net rent over remainder of lease					$ 68,000,000
Loan Amortization Period					20 years
Lease term range as Lessor					20 years
The Kings Plaza Regional Shopping Center
Loss Contingency
Loss Contingency, Damages Sought, Value	$ 21,300,000

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Multiemployer Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Multiemployer Plans
Multiemployer Plans Period Contributions Significance Of Contributions	false
Multiemployer Pension Plans
Multiemployer Plans
Multiemployer Plan, Period Contributions	$ 147	$ 144	$ 144
Multiemployer Health Plans
Multiemployer Plans
Multiemployer Plan, Period Contributions	$ 539	$ 554	$ 533

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share
Income from continuing operations									$ 86,477	$ 76,907	$ 67,396
Income from discontinued operations									0	0	529
Net income - basic and diluted	$ 21,655	$ 21,036	$ 21,767	$ 22,019	$ 23,572	$ 18,172	$ 17,341	$ 17,822	$ 86,477	$ 76,907	$ 67,925
Weighted average shares outstanding - basic and diluted (in shares)									5,114,084	5,112,352	5,110,628
Income from continuing operations (in dollars per share)									$ 16.91	$ 15.04	$ 13.19
Income from discontinued operations (in dollars per share)									0	0	0.1
Net income per common share- basic and diluted (in dollars per share)									$ 16.91	$ 15.04	$ 13.29
Earnings Per Share Potentially Dilutive Securities									no	no	no

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Summary Of Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of Quarterly Results (Unaudited)
Revenues	$ 57,253	$ 57,120	$ 57,005	$ 55,558	$ 52,819	$ 52,414	$ 50,646	$ 52,036	$ 226,936	$ 207,915	$ 200,814
Net income - basic and diluted	$ 21,655	$ 21,036	$ 21,767	$ 22,019	$ 23,572	$ 18,172	$ 17,341	$ 17,822	$ 86,477	$ 76,907	$ 67,925
Net Income Per Common Share - Basic (in dollars per share)	$ 4.23	$ 4.11	$ 4.26	$ 4.31	$ 4.61	$ 3.55	$ 3.39	$ 3.49
Net Income Per Common Share - Diluted (in dollars per share)	$ 4.23	$ 4.11	$ 4.26	$ 4.31	$ 4.61	$ 3.55	$ 3.39	$ 3.49

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Schedule II: Valuation and Qualifying accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Movement in Valuation Allowances and Reserves
Balance at Beginning of Year	$ 918	$ 1,544	$ 1,993
Additions: Charged Against Operations	557	(314)	705
Deductions: Uncollectible Accounts Written Off	(2)	(312)	(1,154)
Balance at End of Year	$ 1,473	$ 918	$ 1,544

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Schedule III: Rollforward of Real Estate Assets and Accumulated Depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of carrying amount of real estate investments rollforward
Balance at beginning of period	$ 1,029,472	$ 993,927	$ 919,576
Subtotal real estate	1,035,230	1,040,662	993,984
Less: Fully depreciated assets	(1,679)	(11,190)	(57)
Balance at end of the period	1,033,551	1,029,472	993,927
Reconciliation of Real Estate Accumulated Depreciation
Balance at beginning of period	225,533	210,025	185,375
Additions charged to operating expenses	28,883	26,698	24,707
Subtotal of accumulated depreciation	254,416	236,723	210,082
Less: Fully depreciated assets	(1,679)	(11,190)	(57)
Balance at end of the period	252,737	225,533	210,025
Land
Reconciliation of carrying amount of real estate investments rollforward
Real Estate, Improvements	0	0	0
Buildings and leasehold improvements
Reconciliation of carrying amount of real estate investments rollforward
Real Estate, Improvements	12,464	112,538	4,043
Development and construction in progress
Reconciliation of carrying amount of real estate investments rollforward
Real Estate, Improvements	$ (6,706)	$ (65,803)	$ 70,365

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Schedule III: Real estate and Accumulated depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of carrying amount of real estate investments rollforward
Encumbrances	$ 1,056,147
Initial cost of Land	21,593
Initial cost of Building, Leaseholds and Leasehold improvements	26,239
Costs capitalized subsequent to acquisition	985,719
Carrying amount of Land	44,971
Carring amount of Buildings and Leasehold improvements	985,800
Development and Construction in progress	2,780
Total	1,033,551	$ 1,029,472	$ 993,927	$ 919,576
Accumulated depreciation and amortization	252,737	$ 225,533	$ 210,025	$ 185,375
Deferred debt issuance costs, net	3,788
Differences Between Book and Tax Basis	208,622
All other properties
Reconciliation of carrying amount of real estate investments rollforward
Encumbrances	0
Initial cost of Land	167
Initial cost of Building, Leaseholds and Leasehold improvements	1,804
Costs capitalized subsequent to acquisition	(1,804)
Carrying amount of Land	167
Carring amount of Buildings and Leasehold improvements	0
Development and Construction in progress	0
Total	167
Accumulated depreciation and amortization	$ 0
Date acquired	1992
New York | Rego Park I
Reconciliation of carrying amount of real estate investments rollforward
Encumbrances	$ 78,246
Initial cost of Land	1,647
Initial cost of Building, Leaseholds and Leasehold improvements	8,953
Costs capitalized subsequent to acquisition	52,368
Carrying amount of Land	1,647
Carring amount of Buildings and Leasehold improvements	61,285
Development and Construction in progress	36
Total	62,968
Accumulated depreciation and amortization	$ 31,212
Date of construction	1959
Date acquired	1992
New York | Rego Park I | Minimum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	3 years
New York | Rego Park I | Maximum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	39 years
New York | Rego Park II | Retail space
Reconciliation of carrying amount of real estate investments rollforward
Encumbrances	$ 259,901
Initial cost of Land	3,127
Initial cost of Building, Leaseholds and Leasehold improvements	1,467
Costs capitalized subsequent to acquisition	386,655
Carrying amount of Land	3,127
Carring amount of Buildings and Leasehold improvements	387,999
Development and Construction in progress	123
Total	391,249
Accumulated depreciation and amortization	$ 73,186
Date of construction	2009
Date acquired	1992
New York | Rego Park II | Retail space | Minimum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	3 years
New York | Rego Park II | Retail space | Maximum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	40 years
New York | Alexander apartment tower | Residence space
Reconciliation of carrying amount of real estate investments rollforward
Encumbrances	$ 0
Initial cost of Land	0
Initial cost of Building, Leaseholds and Leasehold improvements	0
Costs capitalized subsequent to acquisition	119,105
Carrying amount of Land	0
Carring amount of Buildings and Leasehold improvements	119,105
Development and Construction in progress	0
Total	119,105
Accumulated depreciation and amortization	$ 6,081
Date of construction	2016
Date acquired	1992
New York | Alexander apartment tower | Residence space | Minimum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	3 years
New York | Alexander apartment tower | Residence space | Maximum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	39 years
New York | Rego Park III | Retail space
Reconciliation of carrying amount of real estate investments rollforward
Encumbrances	$ 0
Initial cost of Land	779
Initial cost of Building, Leaseholds and Leasehold improvements	0
Costs capitalized subsequent to acquisition	3,124
Carrying amount of Land	779
Carring amount of Buildings and Leasehold improvements	503
Development and Construction in progress	2,621
Total	3,903
Accumulated depreciation and amortization	$ 198
Date acquired	1992
New York | Rego Park III | Retail space | Minimum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	5 years
New York | Rego Park III | Retail space | Maximum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	15 years
New York | Flushing property
Reconciliation of carrying amount of real estate investments rollforward
Encumbrances	$ 0
Initial cost of Land	0
Initial cost of Building, Leaseholds and Leasehold improvements	1,660
Costs capitalized subsequent to acquisition	(107)
Carrying amount of Land	0
Carring amount of Buildings and Leasehold improvements	1,553
Development and Construction in progress	0
Total	1,553
Accumulated depreciation and amortization	$ 909
Date of construction	1975
Date acquired	1992
New York | Lexington Avenue
Reconciliation of carrying amount of real estate investments rollforward
Encumbrances	$ 650,000
Initial cost of Land	14,432
Initial cost of Building, Leaseholds and Leasehold improvements	12,355
Costs capitalized subsequent to acquisition	416,065
Carrying amount of Land	27,497
Carring amount of Buildings and Leasehold improvements	415,355
Development and Construction in progress	0
Total	442,852
Accumulated depreciation and amortization	$ 141,151
Date of construction	2003
Date acquired	1992
New York | Lexington Avenue | Minimum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	9 years
New York | Lexington Avenue | Maximum
Reconciliation of carrying amount of real estate investments rollforward
Property, Plant and Equipment, Useful Life	39 years
New Jersey | Paramus
Reconciliation of carrying amount of real estate investments rollforward
Encumbrances	$ 68,000
Initial cost of Land	1,441
Initial cost of Building, Leaseholds and Leasehold improvements	0
Costs capitalized subsequent to acquisition	10,313
Carrying amount of Land	11,754
Carring amount of Buildings and Leasehold improvements	0
Development and Construction in progress	0
Total	11,754
Accumulated depreciation and amortization	$ 0
Date acquired	1992