Alexander's, Inc. (NYSE: ALX) is a real estate investment trust (REIT) focused on owning, operating, and developing commercial and residential properties in the greater New York City metropolitan area. Originally founded in 1928 as a discount department store chain, the company transitioned into a REIT following its emergence from bankruptcy in 1995, repurposing its valuable owned real estate. Today, Alexander's is externally managed by Vornado Realty Trust, which handles its leasing, property management, and development operations.
The company's concentrated portfolio consists of five primary properties spanning office, retail, and residential asset classes. Its flagship asset is 731 Lexington Avenue, a 1.08 million square foot mixed-use office and retail building in Manhattan that houses the global headquarters of Bloomberg L.P. This single property is the primary driver of the company's financial performance, with Bloomberg L.P. alone accounting for approximately 50% to 60% of Alexander's total rental revenues. The remainder of the portfolio is located in Queens, New York, and includes the Rego Park I and Rego Park II shopping centers, a retail building in Flushing, and The Alexander, a 312-unit residential apartment tower situated above Rego Park II.
Alexander's generates revenue primarily through the long-term leasing of its office, retail, and residential spaces, alongside supplementary income from parking and tenant services. While the company benefits from the stability of its long-term lease with Bloomberg (which extends through 2040) and the high-barrier-to-entry nature of the New York City real estate market, its heavy reliance on a single tenant and a highly concentrated geographic footprint present distinct concentration risks. By operating across multiple property types without a single segment definitively exceeding the 60% revenue threshold, Alexander's functions as a diversified real estate entity.
