QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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: |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||||||||
| ||||||||||||||
(Address of principal executive offices) | (Zip Code) |
N/A |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☐ | Large Accelerated Filer | ☑ | |||||||||
☐ | Non-Accelerated Filer | Smaller Reporting Company | |||||||||
Emerging Growth Company |
Page Number | ||||||||
PART I. | Financial Information | |||||||
Item 1. | Financial Statements: | |||||||
Consolidated Balance Sheets (Unaudited) as of September 30, 2023 and December 31, 2022 | ||||||||
Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 2023 and 2022 | ||||||||
Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2023 and 2022 | ||||||||
Consolidated Statements of Changes in Equity (Unaudited) for the Three and Nine Months Ended September 30, 2023 and 2022 | ||||||||
Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2023 and 2022 | ||||||||
Notes to Consolidated Financial Statements (Unaudited) | ||||||||
Report of Independent Registered Public Accounting Firm | 16 | |||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 17 | ||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 25 | ||||||
Item 4. | Controls and Procedures | 25 | ||||||
PART II. | Other Information | |||||||
Item 1. | Legal Proceedings | 26 | ||||||
Item 1A. | Risk Factors | 26 | ||||||
Item 2. | Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities | 26 | ||||||
Item 3. | Defaults Upon Senior Securities | 26 | ||||||
Item 4. | Mine Safety Disclosures | 26 | ||||||
Item 5. | Other Information | 26 | ||||||
Item 6. | Exhibits | 26 | ||||||
Exhibit Index | 27 | |||||||
Signatures | 28 |
As of | ||||||||||||||
ASSETS | September 30, 2023 | December 31, 2022 | ||||||||||||
Real estate, at cost: | ||||||||||||||
Land | $ | $ | ||||||||||||
Buildings and leasehold improvements | ||||||||||||||
Development and construction in progress | ||||||||||||||
Total | ||||||||||||||
Accumulated depreciation and amortization | ( | ( | ||||||||||||
Real estate, net | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Restricted cash | ||||||||||||||
Investments in U.S. Treasury bills | ||||||||||||||
Tenant and other receivables | ||||||||||||||
Receivable arising from the straight-lining of rents | ||||||||||||||
Deferred leasing costs, net, including unamortized leasing fees to Vornado of $ | ||||||||||||||
Other assets | ||||||||||||||
$ | $ |
LIABILITIES AND EQUITY | ||||||||||||||
Mortgages payable, net of deferred debt issuance costs | $ | $ | ||||||||||||
Amounts due to Vornado | ||||||||||||||
Accounts payable and accrued expenses | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Preferred stock: $ issued and outstanding, | ||||||||||||||
Common stock: $ issued, | ||||||||||||||
Additional capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive income | ||||||||||||||
Treasury stock: | ( | ( | ||||||||||||
Total equity | ||||||||||||||
$ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||
Rental revenues | $ | $ | $ | $ | ||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||
Operating, including fees to Vornado of $ | ( | ( | ( | ( | ||||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | ||||||||||||||||||||||
General and administrative, including management fees to Vornado of $ | ( | ( | ( | ( | ||||||||||||||||||||||
Total expenses | ( | ( | ( | ( | ||||||||||||||||||||||
Interest and other income | ||||||||||||||||||||||||||
Interest and debt expense | ( | ( | ( | ( | ||||||||||||||||||||||
Net gain on sale of real estate | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Net income per common share - basic and diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average shares outstanding - basic and diluted |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||
Change in fair value of interest rate derivatives and other | ( | ( | ||||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate derivatives | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate derivatives and other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | $ | ( | $ |
Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate derivatives and other | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Deferred stock unit grants | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate derivatives and other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Deferred stock unit grants | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | $ | ( | $ |
For the Nine Months Ended September 30, | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | 2023 | 2022 | ||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization, including amortization of debt issuance costs | ||||||||||||||
Net gain on sale of real estate | ( | |||||||||||||
Straight-lining of rents | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Interest rate cap premium amortization | ||||||||||||||
Other non-cash adjustments | ( | |||||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Tenant and other receivables | ( | |||||||||||||
Other assets | ( | ( | ||||||||||||
Amounts due to Vornado | ( | |||||||||||||
Accounts payable and accrued expenses | ( | |||||||||||||
Other liabilities | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
Construction in progress and real estate additions | ( | ( | ||||||||||||
Proceeds from sale of real estate | ||||||||||||||
Proceeds from maturities of U.S. Treasury bills | ||||||||||||||
Purchase of interest rate cap | ( | |||||||||||||
Proceeds from interest rate cap | ||||||||||||||
Purchase of U.S. Treasury bills | ( | |||||||||||||
Net cash provided by (used in) investing activities | ( | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
Dividends paid | ( | ( | ||||||||||||
Debt issuance costs | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | ( | |||||||||||||
Cash and cash equivalents and restricted cash at beginning of period | ||||||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ | ||||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ||||||||||||||
Cash and cash equivalents at beginning of period | $ | $ | ||||||||||||
Restricted cash at beginning of period | ||||||||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | $ | ||||||||||||
Cash and cash equivalents at end of period | $ | $ | ||||||||||||
Restricted cash at end of period | ||||||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ | ||||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||||||||
Cash payments for interest (net of amounts capitalized) | $ | $ | ||||||||||||
NON-CASH TRANSACTIONS | ||||||||||||||
Liability for real estate additions, including $ to Vornado in 2022 | $ | $ | ||||||||||||
Write-off of fully depreciated assets |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
(Amounts in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Lease revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Parking revenue | ||||||||||||||||||||||||||
Tenant services | ||||||||||||||||||||||||||
Rental revenues | $ | $ | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
(Amounts in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Fixed lease revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Variable lease revenues | ||||||||||||||||||||||||||
Lease revenues | $ | $ | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
(Amounts in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Company management fees | $ | $ | $ | $ | ||||||||||||||||||||||
Development fees | ||||||||||||||||||||||||||
Leasing fees | ||||||||||||||||||||||||||
Commission on sale of real estate | ||||||||||||||||||||||||||
Property management, cleaning, engineering, parking and security fees | ||||||||||||||||||||||||||
$ | $ | $ | $ |
Interest Rate at September 30, 2023 | Balance as of | |||||||||||||||||||||||||
(Amounts in thousands) | Maturity | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
First mortgages secured by: | ||||||||||||||||||||||||||
731 Lexington Avenue, office condominium(1) | Jun. 11, 2024 | $ | $ | |||||||||||||||||||||||
731 Lexington Avenue, retail condominium(2)(3) | Aug. 05, 2025 | |||||||||||||||||||||||||
Rego Park II shopping center(2)(4) | Dec. 12, 2025 | |||||||||||||||||||||||||
The Alexander apartment tower | Nov. 01, 2027 | |||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Deferred debt issuance costs, net of accumulated amortization of $ | ( | ( | ||||||||||||||||||||||||
$ | $ |
As of September 30, 2023 | ||||||||||||||||||||||||||
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Interest rate derivatives (included in other assets) | $ | $ | $ | $ |
As of December 31, 2022 | |||||||||||||||||||||||
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Investments in U.S. Treasury bills | $ | $ | $ | $ | |||||||||||||||||||
Interest rate derivatives (included in other assets) | |||||||||||||||||||||||
$ | $ | $ | $ |
Fair Value as of | As of September 30, 2023 | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | September 30, 2023 | December 31, 2022 | Notional Amount | Rate | Expiration Date | |||||||||||||||||||||||||||||||||
Interest rate swap related to: | ||||||||||||||||||||||||||||||||||||||
731 Lexington Avenue mortgage loan, retail condominium | $ | $ | $ | 05/25 | ||||||||||||||||||||||||||||||||||
Interest rate caps related to: | ||||||||||||||||||||||||||||||||||||||
Rego Park II shopping center mortgage loan | (1) | 11/24 | ||||||||||||||||||||||||||||||||||||
731 Lexington Avenue mortgage loan, office condominium | (2) | 06/24 | ||||||||||||||||||||||||||||||||||||
Included in other assets | $ | $ |
As of September 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||
(Amounts in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Mortgages payable (excluding deferred debt issuance costs, net) | $ | $ | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
(Amounts in thousands, except share and per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average shares outstanding – basic and diluted | ||||||||||||||||||||||||||
Net income per common share – basic and diluted | $ | $ | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
(Amounts in thousands, except share and per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income | $ | 10,754 | $ | 15,109 | $ | 86,127 | $ | 44,455 | ||||||||||||||||||
Depreciation and amortization of real property | 7,869 | 7,435 | 23,289 | 21,996 | ||||||||||||||||||||||
Net gain on sale of real estate | — | — | (53,952) | — | ||||||||||||||||||||||
FFO (non-GAAP) | $ | 18,623 | $ | 22,544 | $ | 55,464 | $ | 66,451 | ||||||||||||||||||
FFO per diluted share (non-GAAP) | $ | 3.63 | $ | 4.40 | $ | 10.81 | $ | 12.96 | ||||||||||||||||||
Weighted average shares used in computing FFO per diluted share | 5,130,678 | 5,127,086 | 5,128,875 | 5,125,768 |
2023 | 2022 | |||||||||||||||||||||||||||||||
(Amounts in thousands, except per share amounts) | September 30, Balance | Weighted Average Interest Rate | Effect of 1% Change in Base Rates | December 31, Balance | Weighted Average Interest Rate | |||||||||||||||||||||||||||
Variable Rate | $ | 702,544 | 5.88% | $ | 7,025 | $ | 702,544 | 5.33% | ||||||||||||||||||||||||
Fixed Rate | 394,000 | 1.97% | — | 394,000 | 1.97% | |||||||||||||||||||||||||||
$ | 1,096,544 | 4.48% | $ | 7,025 | $ | 1,096,544 | 4.12% | |||||||||||||||||||||||||
Total effect on diluted earnings per share | $ | 1.37 |
Exhibit No. | |||||||||||||||||
- | Letter regarding unaudited interim financial information | ||||||||||||||||
- | Rule 13a-14 (a) Certification of the Chief Executive Officer | ||||||||||||||||
- | Rule 13a-14 (a) Certification of the Chief Financial Officer | ||||||||||||||||
- | Section 1350 Certification of the Chief Executive Officer | ||||||||||||||||
- | Section 1350 Certification of the Chief Financial Officer | ||||||||||||||||
101 | - | The following financial information from the Alexander’s, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 formatted in Inline Extensible Business Reporting Language (iXBRL) includes: (i) consolidated balance sheets, (ii) consolidated statements of income, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of changes in equity, (v) consolidated statements of cash flows and (vi) the notes to the consolidated financial statements | |||||||||||||||
104 | - | The cover page from the Alexander’s, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 formatted as iXBRL and contained in Exhibit 101 | |||||||||||||||
ALEXANDER’S, INC. | ||||||||
(Registrant) | ||||||||
Date: October 30, 2023 | By: | /s/ Gary Hansen | ||||||
Gary Hansen | ||||||||
Chief Financial Officer (duly authorized officer and principal financial and accounting officer) |
October 30, 2023 | |||||
/s/ Steven Roth | |||||
Steven Roth | |||||
Chairman of the Board and Chief Executive Officer |
October 30, 2023 | |||||
/s/ Gary Hansen | |||||
Gary Hansen | |||||
Chief Financial Officer |
October 30, 2023 | /s/ Steven Roth | |||||||
Name: | Steven Roth | |||||||
Title: | Chairman of the Board and Chief Executive Officer |
October 30, 2023 | /s/ Gary Hansen | |||||||
Name: | Gary Hansen | |||||||
Title: | Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Unamortized leasing fees to Vornado | $ 20,778 | $ 22,174 |
Preferred stock: par value per share (in usd per share) | $ 1.00 | $ 1.00 |
Preferred stock: authorized shares (in shares) | 3,000,000 | 3,000,000 |
Preferred stock: issued shares (in shares) | 0 | 0 |
Preferred stock: outstanding shares (in shares) | 0 | 0 |
Common stock: par value per share (in usd per share) | $ 1.00 | $ 1.00 |
Common stock: authorized shares (in shares) | 10,000,000 | 10,000,000 |
Common stock: issued shares (in shares) | 5,173,450 | 5,173,450 |
Common stock: outstanding shares (in shares) | 5,107,290 | 5,107,290 |
Treasury stock: shares (in shares) | 66,160 | 66,160 |
Consolidated Statements of Income (Parenthetical) - Related Party - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Operating fees to Vornado | $ 1,557 | $ 1,357 | $ 4,780 | $ 4,271 |
Management fees to Vornado | $ 610 | $ 610 | $ 1,830 | $ 1,830 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,754 | $ 15,109 | $ 86,127 | $ 44,455 |
Other comprehensive (loss) income: | ||||
Change in fair value of interest rate derivatives and other | (1,486) | 6,393 | (2,020) | 20,044 |
Comprehensive income | $ 9,268 | $ 21,502 | $ 84,107 | $ 64,499 |
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per common share (in usd per share) | $ 4.50 | $ 4.50 | $ 13.50 | $ 13.50 |
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Liability for real estate additions due to Vornado | $ 2,277 |
Development fees | Vornado | |
Liability for real estate additions due to Vornado | $ 3 |
Organization |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | OrganizationAlexander’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 five properties in New York City. |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and include the accounts of Alexander’s and its consolidated subsidiaries. All adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the operating results for the full year. We operate in one reportable segment.
|
Recently Issued Accounting Literature |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Literature | Recently Issued Accounting LiteratureIn March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04 establishing Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform, and in January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, “ASC 848”). ASC 848 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. We have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) which was issued to defer the sunset date of ASC 848 to December 31, 2024. ASU 2022-06 is effective immediately for all companies. As of September 30, 2023, we have transitioned all of our LIBOR-indexed debt and derivatives and, for our derivatives in hedge accounting relationships, utilized the elective relief in ASC 848, allowing for the continuation of hedge accounting through the transition process. |
Revenue Recognition |
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Revenue Recognition | Revenue Recognition The following is a summary of revenue sources for the three and nine months ended September 30, 2023 and 2022.
The components of lease revenues for the three and nine months ended September 30, 2023 and 2022 are as follows:
Bloomberg L.P. (“Bloomberg”) accounted for revenue of $89,863,000 and $81,536,000 for the nine months ended September 30, 2023 and 2022, respectively, representing approximately 55% and 53% of our rental revenues in each period, respectively. No other tenant accounted for more than 10% of our rental 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. On December 3, 2022, IKEA closed its 112,000 square foot store at our Rego Park I property under a lease that was set to expire in December 2030. The lease included a right to terminate effective no earlier than March 16, 2026, subject to payment of rent through the termination date and an additional termination payment equal to the lesser of $10,000,000 or the amount of rent due under the remaining term. On September 27, 2023, we entered into a lease modification agreement with IKEA which accelerates its lease termination date to April 1, 2024. Under the lease modification agreement, IKEA will pay its remaining rent due through March 16, 2026 and the $10,000,000 termination payment over the modified lease term.
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Real Estate Sale |
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Sep. 30, 2023 | |
Real Estate [Abstract] | |
Real Estate Sale | Real Estate SaleOn May 19, 2023, we sold the Rego Park III land parcel in Queens, New York, for $71,060,000 inclusive of consideration for Brownfield tax benefits and reimbursement of costs for plans, specifications and improvements to date. Net proceeds from the sale were $67,821,000 after closing costs and the financial statement gain was $53,952,000 |
Related Party Transactions |
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Related Party Transactions | Vornado As of September 30, 2023, 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. 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) $365,000, 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 and Other 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 (the “Sales Agreement”). Pursuant to the Sales Agreement, we paid a $711,000 sales commission to Vornado in the second quarter of 2023 related to the sale of the Rego Park III land parcel. 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 and The Alexander apartment tower. We also have an agreement with a wholly owned subsidiary of Vornado to manage the parking garages at our Rego Park I and Rego Park II properties. The following is a summary of fees earned by Vornado under the various agreements discussed above.
As of September 30, 2023, the amounts due to Vornado were $974,000 for leasing fees and $526,000 for management, property management, cleaning, engineering and security fees. As of December 31, 2022, the amounts due to Vornado were $742,000 for management, property management, cleaning, engineering and security fees and $59,000 for leasing fees.
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Mortgages Payable |
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Mortgages Payable | Mortgages Payable On June 9, 2023, we exercised our remaining one-year extension option on the $500,000,000 interest-only mortgage loan on the office condominium of our 731 Lexington Avenue property. The interest rate on the loan remained at LIBOR plus 0.90% through July 15, 2023 and thereafter at the Prime Rate through loan maturity on June 11, 2024. In June 2023, we purchased an interest rate cap for $11,258,000, which capped LIBOR at 6.00% through July 15, 2023 and caps the Prime Rate (8.50% as of September 30, 2023) at 6.00% through loan maturity. The following is a summary of our outstanding mortgages payable as of September 30, 2023 and December 31, 2022. We may refinance our maturing debt as it comes due or choose to pay it down.
(1)Interest at the Prime Rate (capped at 6.00% through loan maturity). (2)Interest rate listed represents the rate in effect as of September 30, 2023 based on SOFR as of contractual reset date plus contractual spread, adjusted for hedging instruments as applicable. (3)Interest at SOFR plus 1.51% which was swapped to a fixed rate of 1.76% through May 2025. (4)Interest at SOFR plus 1.45% (SOFR is capped at 4.15% through November 2024).
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Stock-Based Compensation |
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Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). Our 2016 Omnibus Stock Plan (the “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. In May 2023, we granted each of the members of our Board of Directors 449 DSUs with a market value of $75,000 per grant. The grant date fair value of these awards was $56,250 per grant, or $450,000 in the aggregate, in accordance with ASC 718. 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. As of September 30, 2023, there were 23,388 DSUs outstanding and 482,399 shares were available for future grant under the Plan.
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurement (“ASC 820”) defines fair value and establishes a framework for measuring fair value. 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 as well as certain U.S. Treasury securities that are highly liquid and are actively traded in secondary markets; 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 sheet as of September 30, 2023 consisted of interest rate derivatives, which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of September 30, 2023.
Financial assets measured at fair value on our consolidated balance sheet as of December 31, 2022 consisted of U.S. Treasury bills (classified as available-for-sale) and interest rate derivatives, which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of December 31, 2022.
9.Fair Value Measurements - continued Interest Rate Derivatives We recognize the fair value of all interest rate derivatives in “other assets” or “other liabilities” on our consolidated balance sheets and since all of our interest rate derivatives have been designated as cash flow hedges, changes in the fair value are recognized in other comprehensive income. The table below summarizes our interest rate derivatives, all of which hedge the interest rate risk attributable to the variable rate debt noted as of September 30, 2023 and December 31, 2022, respectively.
(1)SOFR cap strike rate of 4.15%. (2)In June 2023, we purchased an interest rate cap for $11,258, which capped LIBOR at 6.00% through July 15, 2023 and caps the Prime Rate (8.50% as of September 30, 2023) at 6.00% through loan maturity. See Note 7 - Mortgages Payable for further information. 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 and are classified as Level 1. 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, and is classified as Level 2. The table below summarizes the carrying amount and fair value of these financial instruments as of September 30, 2023 and December 31, 2022.
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Commitments and Contingencies |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, of which the first $30,000,000 includes communicable disease coverage, 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 and excluding communicable disease coverage. 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 Act of 2002, as amended to date and which has been extended through December 2027. 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 $316,000 deductible and 20% of the balance of a covered loss, and the Federal government is responsible for the remaining 80% 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 or other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material. The principal amounts of our mortgage loans are non-recourse to us and the loans 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. Letters of Credit Approximately $900,000 of standby letters of credit were issued and outstanding as of September 30, 2023. Other There are various legal actions brought against us from time-to-time in the ordinary course of business. In our opinion, the outcome of such pending matters in the aggregate will not have a material effect on our financial position, results of operations or cash flows.
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per ShareThe 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 deferred stock units) outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock (including deferred stock units) 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 three and nine months ended September 30, 2023 and 2022.
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Basis of Presentation (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements are unaudited and include the accounts of Alexander’s and its consolidated subsidiaries. All adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the operating results for the full year. We operate in one reportable segment.
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Recently Issued Accounting Literature | In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04 establishing Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform, and in January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, “ASC 848”). ASC 848 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. We have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) which was issued to defer the sunset date of ASC 848 to December 31, 2024. ASU 2022-06 is effective immediately for all companies. As of September 30, 2023, we have transitioned all of our LIBOR-indexed debt and derivatives and, for our derivatives in hedge accounting relationships, utilized the elective relief in ASC 848, allowing for the continuation of hedge accounting through the transition process. |
Stock-Based Compensation | We account for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). Our 2016 Omnibus Stock Plan (the “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. |
Fair Value Measurement | ASC Topic 820, Fair Value Measurement (“ASC 820”) defines fair value and establishes a framework for measuring fair value. 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 as well as certain U.S. Treasury securities that are highly liquid and are actively traded in secondary markets; 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. |
Revenue Recognition (Tables) |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following is a summary of revenue sources for the three and nine months ended September 30, 2023 and 2022.
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Schedule of Components of Lease Revenue | The components of lease revenues for the three and nine months ended September 30, 2023 and 2022 are as follows:
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Related Party Transactions (Tables) |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fees to Vornado | The following is a summary of fees earned by Vornado under the various agreements discussed above.
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Mortgages Payable (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The following is a summary of our outstanding mortgages payable as of September 30, 2023 and December 31, 2022. We may refinance our maturing debt as it comes due or choose to pay it down.
(1)Interest at the Prime Rate (capped at 6.00% through loan maturity). (2)Interest rate listed represents the rate in effect as of September 30, 2023 based on SOFR as of contractual reset date plus contractual spread, adjusted for hedging instruments as applicable. (3)Interest at SOFR plus 1.51% which was swapped to a fixed rate of 1.76% through May 2025. (4)Interest at SOFR plus 1.45% (SOFR is capped at 4.15% through November 2024).
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets measured at fair value on our consolidated balance sheet as of September 30, 2023 consisted of interest rate derivatives, which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of September 30, 2023.
Financial assets measured at fair value on our consolidated balance sheet as of December 31, 2022 consisted of U.S. Treasury bills (classified as available-for-sale) and interest rate derivatives, which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of December 31, 2022.
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Schedule of Interest Rate Derivatives | The table below summarizes our interest rate derivatives, all of which hedge the interest rate risk attributable to the variable rate debt noted as of September 30, 2023 and December 31, 2022, respectively.
(1)SOFR cap strike rate of 4.15%. (2)In June 2023, we purchased an interest rate cap for $11,258, which capped LIBOR at 6.00% through July 15, 2023 and caps the Prime Rate (8.50% as of September 30, 2023) at 6.00% through loan maturity. See Note 7 - Mortgages Payable for further information.
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Schedule of Fair Value, by Balance Sheet Grouping | The table below summarizes the carrying amount and fair value of these financial instruments as of September 30, 2023 and December 31, 2022.
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Earnings Per Share (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | There were no potentially dilutive securities outstanding during the three and nine months ended September 30, 2023 and 2022.
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Organization (Details) |
Sep. 30, 2023
property
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of properties | 5 |
Basis of Presentation (Details) |
9 Months Ended |
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Sep. 30, 2023
segment
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Disaggregation of Revenue [Line Items] | ||||
Lease revenues | $ 52,954 | $ 51,921 | $ 155,502 | $ 146,440 |
Rental revenues | 55,413 | 53,729 | 162,027 | 152,768 |
Parking revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1,090 | 1,189 | 3,300 | 3,582 |
Tenant services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 1,369 | $ 619 | $ 3,225 | $ 2,746 |
Revenue Recognition - Components of Lease Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Revenue from Contract with Customer [Abstract] | ||||
Fixed lease revenues | $ 34,926 | $ 35,847 | $ 104,489 | $ 101,468 |
Variable lease revenues | 18,028 | 16,074 | 51,013 | 44,972 |
Lease revenues | $ 52,954 | $ 51,921 | $ 155,502 | $ 146,440 |
Revenue Recognition - Additional Information (Details) ft² in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 27, 2023
USD ($)
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Sep. 30, 2023
USD ($)
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Sep. 30, 2022
USD ($)
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Sep. 30, 2023
USD ($)
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Sep. 30, 2022
USD ($)
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Dec. 03, 2022
ft²
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Disaggregation of Revenue [Line Items] | ||||||
Rental revenues | $ 55,413 | $ 53,729 | $ 162,027 | $ 152,768 | ||
IKEA | Anchor | Rego Park1 Property | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Area of property (in sqft.) | ft² | 112 | |||||
Payment for termination of lease | $ 10,000 | |||||
Customer Concentration Risk | Revenue | Bloomberg | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Rental revenues | $ 89,863 | $ 81,536 | ||||
Percentage rent contributed by tenant | 55.00% | 53.00% |
Real Estate Sale (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
May 19, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Real Estate [Line Items] | |||||
Proceeds from sale of real estate | $ 67,821 | $ 0 | |||
Net gain on sale of real estate | $ 0 | $ 0 | $ 53,952 | $ 0 | |
Rego Park III Land Parcel | |||||
Real Estate [Line Items] | |||||
Proceeds from sale of real estate | $ 71,060 | ||||
Net proceeds from sale of land | 67,821 | ||||
Net gain on sale of real estate | $ 53,952 |
Related Party Transactions - Summary of Fees to Vornado (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Related Party Transaction [Line Items] | ||||
Fees to related party | $ 3,116 | $ 2,116 | $ 8,356 | $ 7,653 |
Company management fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 700 | 700 | 2,100 | 2,100 |
Development fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 0 | 0 | 0 | 3 |
Leasing fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 974 | 58 | 1,144 | 1,376 |
Commission on sale of real estate | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 0 | 0 | 711 | 0 |
Property management, cleaning, engineering, parking and security fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | $ 1,442 | $ 1,358 | $ 4,401 | $ 4,174 |
Mortgages Payable - Additional Information (Details) - 731 Lexington Avenue - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 15, 2023 |
Jun. 30, 2023 |
Sep. 30, 2023 |
Jun. 09, 2023 |
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SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Payments for derivative instrument | $ 11,258 | |||
Mortgages | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Mortgage loans, extension option | 1 year | |||
Mortgage loans | $ 500,000 | |||
Mortgages | LIBOR | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread over LIBOR | 0.90% | |||
Interest cap rate | 6.00% | 6.00% | ||
Mortgages | Prime Rate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Interest rate | 8.50% |
Stock-Based Compensation (Details) - 2016 Omnibus Stock Plan - Director - Deferred Stock Units - USD ($) |
1 Months Ended | |
---|---|---|
May 31, 2023 |
Sep. 30, 2023 |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non option equity instruments granted per director (in shares) | 449 | |
Non option equity instruments market value | $ 75,000 | |
Non option equity instruments grant date fair value per grant | 56,250 | |
Non option equity instruments grant date fair value total | $ 450,000 | |
Non option equity instruments, outstanding, number (in shares) | 23,388 | |
Shares available for future grant under the plan (in shares) | 482,399 |
Fair Value Measurements - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Carrying Amount | ||
Assets: | ||
Cash equivalents | $ 356,391 | $ 47,852 |
Liabilities: | ||
Mortgages payable (excluding deferred debt issuance costs, net) | 1,096,544 | 1,096,544 |
Fair Value | Level 1 | ||
Assets: | ||
Cash equivalents | 356,391 | 47,852 |
Fair Value | Level 2 | ||
Liabilities: | ||
Mortgages payable (excluding deferred debt issuance costs, net) | $ 1,064,832 | $ 1,061,221 |
Commitments and Contingencies (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Loss Contingencies [Line Items] | |
Standby letters of credit, outstanding | $ 900,000 |
All Risk Property and Rental Value | |
Loss Contingencies [Line Items] | |
Insurance maximum coverage per occurrence | 1,700,000,000 |
Terrorism Coverage Including NBCR | |
Loss Contingencies [Line Items] | |
Insurance maximum coverage per occurrence | 1,700,000,000 |
Insurance maximum coverage in aggregate | $ 1,700,000,000 |
NBCR | |
Loss Contingencies [Line Items] | |
Federal government responsibility | 80.00% |
NBCR | FNSIC | |
Loss Contingencies [Line Items] | |
Insurance deductible | $ 316,000 |
Self insured responsibility | 20.00% |
General Liability | |
Loss Contingencies [Line Items] | |
Insurance maximum coverage per property | $ 300,000,000 |
Insurance maximum coverage per occurrence | 300,000,000 |
Disease Coverage | |
Loss Contingencies [Line Items] | |
Insurance maximum coverage per occurrence | $ 30,000,000 |
Earnings Per Share - Additional Information (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Potentially dilutive securities outstanding | 0 | 0 | 0 | 0 |
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 10,754 | $ 15,109 | $ 86,127 | $ 44,455 |
Weighted average shares outstanding - basic (in shares) | 5,130,678 | 5,127,086 | 5,128,875 | 5,125,768 |
Weighted average shares outstanding - diluted (in shares) | 5,130,678 | 5,127,086 | 5,128,875 | 5,125,768 |
Net income per common share - basic (in usd per share) | $ 2.10 | $ 2.95 | $ 16.79 | $ 8.67 |
Net income per common share - diluted (in usd per share) | $ 2.10 | $ 2.95 | $ 16.79 | $ 8.67 |
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