| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 2/6 |
| Dividends | 4/6 |
ALX Stock Overview
Alexander’s, Inc. is a real estate investment trust which has seven properties in the greater New York City metropolitan area.
Alexander's, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$260.13 |
| 52 Week High | US$299.99 |
| 52 Week Low | US$213.85 |
| Beta | 0.59 |
| 1 Month Change | 10.43% |
| 3 Month Change | 10.50% |
| 1 Year Change | -4.01% |
| 3 Year Change | -27.85% |
| 5 Year Change | -36.49% |
| Change since IPO | 365.56% |
Recent News & Updates
Alexanders declares $4.50 dividend
Alexanders (NYSE:ALX) declares $4.50/share quarterly dividend, in line with previous. Forward yield 7.73% Payable Aug. 19; for shareholders of record Aug. 8; ex-div Aug. 5. See ALX Dividend Scorecard, Yield Chart, & Dividend Growth.
Alexander's: Bottom Fishing On This Commercial REIT Could Be Risky
Alexander's is witnessing higher demand and has an active pipeline in the retail real estate segment. However, it is struggling in the office market. Steady demand and higher rents can only happen in the long run, as in the short run, ALX’s huge vacancies will get absorbed at low rents. A mid-to-high single-digit FFO growth will not be good enough to sustain ALX’s current yield in case the price rises, even by a low percentage. Alexander's Inc. Alexander's, Inc. (ALX) is a real estate investment trust ((REIT)) which leases, manages, and develops properties primarily in the retail segment. The company's portfolio comprises retail and office properties located in metropolitan and suburban areas of New York City. Alexander's major tenants include financial institutions, fashion and accessories stores, toy shops, homeware and furniture stores, and department stores. The company generates revenue from leasing to tenants, and rents generated from parking spaces. The majority of consolidated revenue is derived from tenant leases. Alexander's activities are conducted through its manager, Vornado Realty Trust (VNO). ALX has 6 properties in the greater New York City metropolitan area consisting of - 731 Lexington Avenue office and retail (including Bloomberg, L.P.'s world headquarters), the Rego Center complex in Rego Park, Queens, including the Rego Park I, II, and III retail properties and The Alexander apartment tower, and a retail property located in Flushing, NY. By the beginning of May 2022, ALX had a utilization of just 46 percent. Rentals and FFO During Q1 2022 During Q1 2022, ALX's fund from operations ((FFO)) grew by 22 percent, primarily due to rent commencement on new office and retail leases. Retail leasing activity in the first quarter consisted of six lease contracts totaling 20,000 square feet with average starting rents of $172 per square foot. All these lease contracts have long term maturities. The company has an active pipeline and strong interest in the Penn district in particular. However, it is struggling in the office market. In Chicago, the office market continues to be challenged with direct vacancy and historically high levels of concessions provided to tenants. Still, almost 0.15 million square feet of new leases have been finalized in Q1, 2022, including an 81,000 square foot of Avant's (a lending FinTech company) headquarter and a 34,000 square foot renewal of Steelcase's showroom. The company also has almost 70,000 square feet of leases in negotiation. In San Francisco, although the overall vacancy rate is 15 percent, 555 California is almost 97 percent occupied. Dividend Yield Alexander's, Inc.'s market price has been in a steady fall over the past five years. Price dropped by almost 45 percent. Prior to that the share traded around $400 for several years. The falling prices resulted in a relatively higher yield. The average yield over the past four years is little over 6 percent, and it has generated a yield in the range of 5 percent to 7 percent. The yield over the trailing twelve months (TTM yield) is 7.8 percent. Without a doubt, this REIT is trying to generate high yield for its investors. This commercial REIT has paid regular quarterly dividends since 2010. The company made a steady growth in the pay-out, and despite such drastic impact of covid-19 pandemic, it has been able to continue with the same pay-out. At present the pay-out is marginally more than its FFO. This denotes a small part of its dividend is financed from capital, primarily from the sale proceeds of office properties. The company also possesses a high degree of liquid assets of $4 billion, including $1.8 billion of cash, restricted cash and investments in US treasury bills. Impact of Inflation, Interest Rates, and Looming Recession Commercial real estate, such as retail spaces, hotels, and office buildings, takes years to be developed and operationalised. In case the demand for retail spaces shoots up, as happened at the end of 2021, rent of retail properties shifts upwards, as it is not possible to meet the supply in the short term. Also, the properties are likely to witness full occupancy. This is what happened to Alexander's, Inc. The company has retail properties and parking spaces in prime locations, which surely will continue the steady flow of revenues. Office REITs, however, are having a difficult time due to the rising popularity of the work from home options. Alexander's, Inc. is already facing a low occupancy, as well as prospective lease termination in the coming years. The present value of the estimated additional lease liability is expected to reduce Alexander's earnings by $21 million this year. With the current market volatility and rising interest rates, the financing markets are also in an uncertain situation.
Shareholder Returns
| ALX | US REITs | US Market | |
|---|---|---|---|
| 7D | 4.6% | 4.5% | 3.2% |
| 1Y | -4.0% | -3.6% | -10.2% |
Return vs Industry: ALX matched the US REITs industry which returned -3.6% over the past year.
Return vs Market: ALX exceeded the US Market which returned -10.2% over the past year.
Price Volatility
| ALX volatility | |
|---|---|
| ALX Average Weekly Movement | 3.9% |
| REITs Industry Average Movement | 4.3% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: ALX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ALX's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1955 | 70 | Steve Roth | https://www.alx-inc.com |
Alexander’s, Inc. is a real estate investment trust which has seven properties in the greater New York City metropolitan area.
Alexander's, Inc. Fundamentals Summary
| ALX fundamental statistics | |
|---|---|
| Market Cap | US$1.33b |
| Earnings (TTM) | US$116.15m |
| Revenue (TTM) | US$197.65m |
11.4x
P/E Ratio6.7x
P/S RatioIs ALX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ALX income statement (TTM) | |
|---|---|
| Revenue | US$197.65m |
| Cost of Revenue | US$86.78m |
| Gross Profit | US$110.87m |
| Other Expenses | -US$5.28m |
| Earnings | US$116.15m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 22.74 |
| Gross Margin | 56.09% |
| Net Profit Margin | 58.77% |
| Debt/Equity Ratio | 436.3% |
How did ALX perform over the long term?
See historical performance and comparison