Alexander's (ALX) Financials

Alexander's (NYSE: ALX) financials show several key trends over the last four years, ending in Q2 2025. The company operates with significant non-interest income and expense and carries a substantial amount of long-term debt.

Positive Highlights:

• Consistent net income: Alexander's reported net income for Q2 2025 was $6.12 million, with quarterly values ranging generally from about $6 million to $16 million over the past several years, indicating stable profitability.
• Strong non-interest income: In Q2 2025, non-interest income was $51.59 million, which is consistently much larger than interest income and a major revenue source for the company across quarters.
• Steady depreciation expenses near $8-9 million quarterly, indicating ongoing investment in fixed assets consistent with property and equipment values above $600 million.
• Dividends remain steady at $4.5 per share each quarter, reflecting a strong commitment to returning capital to shareholders.
• Cash and equivalents increased from about $310 million in Q2 2022 to over $313 million by Q2 2025, demonstrating liquidity maintenance despite cash outflows and investments.
• Retained earnings grew from approximately $160 million in Q2 2022 to about $105 million reported in Q2 2025's latest balance sheet without seeing any significant equity reductions, showing accumulated profitability over time.

Neutral Factors:

• Total liabilities, particularly long-term debt, remain very high—about $987 million in Q2 2025—showing consistent leverage levels that are normal for a real estate-focused company.
• Capital expenditures fluctuate but generally remain in the range of $3.7 million to $9.9 million per quarter, indicating ongoing property investments without major spikes or cutbacks.
• Net cash from operating activities varies notably from negative to positive, affected by working capital changes, seen for example by Q3 2024 operating cash outflows of about $5 million, then growing to positive $43.6 million in Q2 2025.
• Interest expense has generally increased year over year, with Q2 2025 interest expense at about $12.8 million and interest income around $3.9 million, reflecting the cost of the company’s sizable debt load.

Negative Trends:

• Net interest expense remains negative quarterly (e.g., -$8.87 million in Q2 2025), indicating interest costs significantly outweigh interest income, which could pressure net profitability if non-interest income declines.
• Other special charges are substantial, frequently around $24-$26 million per quarter, which reduce operating income before taxes.
• The company continues to repay debt and uses significant cash for financing activities (e.g., $24.3 million outflow in Q2 2025), which could limit financial flexibility.
• Complex fluctuations in operating cash flows, including large positive and negative swings in changes in operating assets and liabilities, could introduce volatility in cash generation.
• Despite positive net income, net cash from investing activities is negative in most quarters due to high purchase of property, buildings, and equipment, indicating heavy capital intensity.

Summary: Alexander's maintains stable profitability and substantial dividend payments backed by strong non-interest income. However, the company is highly leveraged with once-in-a-while volatile cash flows, considerable special charges, and a negative net interest margin due to high debt service. Investors should monitor interest rate trends, property investment returns, and the company's ability to manage its debt load alongside steady dividend distributions.