Alexander's (ALX) Margin Drop Sparks Concerns Over Dividends and Questions Defensive REIT Storyline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 04 2025
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Should l Buy ALX?
Source: Yahoo Finance
Profit Margin Decline: Alexander's (ALX) net profit margin decreased to 17.1% from 22.1% last year, with a five-year trend of declining earnings and projected revenue growth lagging behind the broader market.
High Valuation Concerns: ALX's Price-to-Earnings ratio of 30.7x significantly exceeds industry averages, raising caution among investors as earnings are forecasted to decline by 20.1% annually over the next three years.
Dividend Risk: The combination of shrinking profit margins and a negative earnings outlook increases the risk of a dividend cut, challenging the perception of ALX as a stable income investment.
Market Narrative Discrepancy: The current financial data does not support the typical REIT value story, highlighting sustainability concerns and the absence of visible growth drivers to justify the high valuation.
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Analyst Views on ALX
About ALX
Alexander's, Inc. is a real estate investment trust (REIT). The Company is engaged in leasing, managing, developing and redeveloping its properties. It is managed by, and its properties are leased and developed by, Vornado Realty Trust (Vornado). It has five properties in New York City consisting of 731 Lexington Avenue, a 1,079,000 square foot multi-use building comprising the entire block bounded by Lexington Avenue, East 59th Street, Third Avenue and East 58th Street in Manhattan; Rego Park I, a 338,000 square foot shopping center, is located on Queens Boulevard and 63rd Road in Queens; Rego Park II, a 616,000 square foot shopping center, is located adjacent to the Rego Park I shopping center in Queens; Flushing, a 167,000 square foot building, located on Roosevelt Avenue and Main Street in Queens, and The Alexander apartment tower, located above its Rego Park II shopping center, contains 312 units aggregating 255,000 square feet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alexander's, Inc. Releases 2025 Financial Results
- Quarterly Net Income Decline: In Q4 2025, Alexander's reported a net income of $3.8 million, or $0.74 per diluted share, a significant drop from $12.3 million and $2.39 in Q4 2024, indicating challenges in market conditions and reduced profitability.
- Annual Financial Performance Decline: For the year ended December 31, 2025, net income was $28.2 million, or $5.50 per diluted share, down from $43.4 million and $8.46 in 2024, highlighting ongoing pressures on revenue and earnings.
- FFO Metrics Decline: The funds from operations (FFO) for Q4 2025 stood at $12.5 million, or $2.43 per diluted share, a sharp decrease from $20.8 million and $4.06 in the same quarter of 2024, reflecting operational efficiency and asset management challenges.
- Overall Revenue Decrease: Total revenue for 2025 was $213.2 million, down from $226.4 million in 2024, indicating a negative impact from changing market conditions on the company's performance, suggesting a need for strategic reassessment to address future challenges.
See More
ALEXANDER'S REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER
Financial Performance: Alexander's has announced its financial results for the fourth quarter, highlighting key metrics and performance indicators.
Revenue and Earnings: The report details revenue figures and earnings per share, showcasing the company's financial health and growth compared to previous quarters.
See More
ALEXANDER REPORTS Q4 ADJUSTED FFO OF USD 2.43 PER SHARE
- Company Performance: Alexander's Q4 adjusted FFO per share is reported at USD 2.43.
- Financial Overview: The financial results indicate a strong performance in the fourth quarter, reflecting the company's operational efficiency.
See More
ALEXANDER REPORTS Q4 ADJUSTED FFO OF USD 12.471 MILLION
- Financial Performance: Alexander's Q4 adjusted funds from operations (FFO) reached $12.471 million.
- Investment Insights: The report highlights the company's financial stability and growth potential in the real estate market.
See More
ALEXANDER REPORTS Q4 NET INCOME OF USD 3.824 MILLION
- Company Overview: Alexander's reported a net income of USD 3.824 million for the quarter.
- Financial Performance: The financial results indicate a strong performance in the company's operations during the reporting period.
See More
ALEXANDER REPORTS Q4 REVENUE OF USD 53.255 MILLION
- Company Overview: Alexander's reported a revenue of USD 53.255 million for the fourth quarter.
- Financial Performance: The revenue figure reflects the company's performance during the specified quarter.
See More
Alexander's, Inc. Releases 2025 Financial Results
- Quarterly Net Income Decline: In Q4 2025, Alexander's reported a net income of $3.8 million, or $0.74 per diluted share, a significant drop from $12.3 million and $2.39 in Q4 2024, indicating challenges in market conditions and reduced profitability.
- Annual Financial Performance Decline: For the year ended December 31, 2025, net income was $28.2 million, or $5.50 per diluted share, down from $43.4 million and $8.46 in 2024, highlighting ongoing pressures on revenue and earnings.
- FFO Metrics Decline: The funds from operations (FFO) for Q4 2025 stood at $12.5 million, or $2.43 per diluted share, a sharp decrease from $20.8 million and $4.06 in the same quarter of 2024, reflecting operational efficiency and asset management challenges.
- Overall Revenue Decrease: Total revenue for 2025 was $213.2 million, down from $226.4 million in 2024, indicating a negative impact from changing market conditions on the company's performance, suggesting a need for strategic reassessment to address future challenges.
See More
ALEXANDER'S REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER
Financial Performance: Alexander's has announced its financial results for the fourth quarter, highlighting key metrics and performance indicators.
Revenue and Earnings: The report details revenue figures and earnings per share, showcasing the company's financial health and growth compared to previous quarters.
See More
ALEXANDER REPORTS Q4 ADJUSTED FFO OF USD 2.43 PER SHARE
- Company Performance: Alexander's Q4 adjusted FFO per share is reported at USD 2.43.
- Financial Overview: The financial results indicate a strong performance in the fourth quarter, reflecting the company's operational efficiency.
See More
ALEXANDER REPORTS Q4 ADJUSTED FFO OF USD 12.471 MILLION
- Financial Performance: Alexander's Q4 adjusted funds from operations (FFO) reached $12.471 million.
- Investment Insights: The report highlights the company's financial stability and growth potential in the real estate market.
See More
ALEXANDER REPORTS Q4 NET INCOME OF USD 3.824 MILLION
- Company Overview: Alexander's reported a net income of USD 3.824 million for the quarter.
- Financial Performance: The financial results indicate a strong performance in the company's operations during the reporting period.
See More
ALEXANDER REPORTS Q4 REVENUE OF USD 53.255 MILLION
- Company Overview: Alexander's reported a revenue of USD 53.255 million for the fourth quarter.
- Financial Performance: The revenue figure reflects the company's performance during the specified quarter.
See More
