Alexander’s net income slumps 62% as New York property performance cools

Alexander’s (NYSE:ALX) reported a sharp contraction in its first-quarter financial results for 2026, as the New York City real estate market continues to face a complex valuation and leasing landscape.

The company posted net income of $4.7 million, or $0.91 per diluted share, for the period ended March 31, 2026—a 62% drop from the $12.3 million, or $2.40 per diluted share, reported in the first quarter of 2025.

Total revenues for the quarter stood at $53.4 million.

The company, which maintains a highly concentrated portfolio of five prime properties in New York City, also saw a significant reduction in its Funds From Operations (FFO).

FFO for the quarter was $13.4 million, or $2.60 per diluted share, down from $20.8 million, or $4.06 per diluted share, in the prior-year period.

The decline in FFO, a key metric for real estate investment trusts (REITs) that measures cash flow generated by operations, underscores the challenges facing high-density urban holdings.

Alexander’s properties—which include flagship locations in Manhattan and Queens—are subject to the shifting dynamics of New York’s retail and office sectors.

While the company did not provide a detailed breakdown of the quarterly variance in its initial release, the broader New York City commercial market has been grappling with higher interest rates and evolving tenant requirements.

The $7.4 million decrease in FFO year-over-year suggests higher operating costs or occupancy shifts within the company’s concentrated asset base.