Alexander’s Announces First Quarter Financial Results
ALEXANDER’S, INC. (ALX) announced its first quarter financial results, reporting an increase in net income and funds from operations compared to the same period last year.
Net income for the quarter ended March 31, 2024 was $16.1 million, or $3.14 per diluted share, up from $11.2 million, or $2.19 per diluted share in Q1 2023.
Funds from operations for the quarter ended March 31, 2024 was $25.5 million, or $4.98 per diluted share, compared to $18.6 million, or $3.63 per diluted share in Q1 2023.
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Insights
An examination of Alexander's Inc.'s first-quarter financial results indicates a robust increase in both net income and funds from operations (FFO), a critical metric for real estate investment trusts (REITs). The reported net income represents a growth of approximately
For investors, the uptick in FFO is particularly significant because it can be a more accurate indicator of a REIT's financial health than net income alone. A higher FFO per share might also signal enhanced value for shareholders, potentially influencing the stock performance positively. However, in assessing the stock's attractiveness, one must consider broader market conditions and specific challenges facing the New York City real estate market, such as occupancy rates, rental price trends and property valuations.
Given that Alexander's Inc. specializes in New York City properties, it's imperative to contextualize its performance within the dynamics of the local real estate market. The increase in FFO suggests efficient asset management and possibly capitalizes on favorable market conditions. New York City real estate has unique demand and supply drivers and with only five properties, the impact of individual properties' performance on overall results can be significant.
Investors should note that the resilience or vulnerability of Alexander's portfolio to economic downturns, regulatory changes, or shifts in consumer behavior can have material implications for the stock's future performance. Moreover, the company's concentration in a single geographic area could be a double-edged sword—benefiting from local market growth yet susceptible to localized risks.
PARAMUS, N.J., May 06, 2024 (GLOBE NEWSWIRE) -- ALEXANDER’S, INC. (New York Stock Exchange: ALX) filed its Form 10-Q for the quarter ended March 31, 2024 today and reported:
Net income for the quarter ended March 31, 2024 was
Funds from operations (“FFO”) (non-GAAP) for the quarter ended March 31, 2024 was
Alexander’s, Inc. is a real estate investment trust which has five properties in New York City.
CONTACT:
GARY HANSEN
(201) 587-8541
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see "Risk Factors" in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2023. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments, the financial condition of our tenants, and general competitive factors.
| (tables to follow) ALEXANDER'S, INC. FINANCIAL RESULTS FOR THE QUARTERS ENDED MARCH 31, 2024 AND 2023 |
Below is a table of selected financial results.
| QUARTER ENDED MARCH 31, | |||||||
| (Amounts in thousands, except share and per share amounts) | 2024 | 2023 | |||||
| Revenues | $ | 61,397 | $ | 52,941 | |||
| Net income | $ | 16,109 | $ | 11,226 | |||
| Net income per common share - basic and diluted | $ | 3.14 | $ | 2.19 | |||
| Weighted average shares outstanding - basic and diluted | 5,130,678 | 5,127,086 | |||||
| FFO (non-GAAP) | $ | 25,532 | $ | 18,633 | |||
| FFO per diluted share (non-GAAP) | $ | 4.98 | $ | 3.63 | |||
| Weighted average shares used in computing FFO per diluted share | 5,130,678 | 5,127,086 | |||||
The following table reconciles net income to FFO (non-GAAP):
| QUARTER ENDED MARCH 31, | |||||||
| (Amounts in thousands, except share and per share amounts) | 2024 | 2023 | |||||
| Net income | $ | 16,109 | $ | 11,226 | |||
| Depreciation and amortization of real property | 9,423 | 7,407 | |||||
| FFO (non-GAAP) | $ | 25,532 | $ | 18,633 | |||
| FFO per diluted share (non-GAAP) | $ | 4.98 | $ | 3.63 | |||
| Weighted average shares used in computing FFO per diluted share | 5,130,678 | 5,127,086 | |||||
FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of certain real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are non-GAAP financial measures 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. A reconciliation of net income to FFO is provided above.
FAQ
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