The real estate investment trust (REIT) saw its stock slide 14.5% to $217.90 during midday trading on Monday. The retreat marks a sharp reversal for a stock that had gained 13% over the past year, as investors reacted to a net income that plummeted to $3.8 million, or 74 cents per share, down from $12.3 million in the same period last year.
In section Market Quotes
Alexander's Shares Plunge as NYC Lease Expirations Hit Profits
Shares of Alexander’s Inc. tumbled on Monday after the real estate investment trust reported a sharp decline in fourth-quarter earnings and revenue. The sell-off follows a significant drop in funds from operations, driven largely by the loss of major tenants in the New York City retail market.
Impact of Retail Vacancies
Management attributed the shrinking top line to the expiration of leases at two high-profile New York City properties. The departure of Home Depot and IKEA from these locations pressured rental income, causing total revenue to slip 4.7% to $53.3 million.The company’s core performance metric, funds from operations (FFO), reflected the broader downturn:
- FFO reached $12.5 million, or $2.43 per share.
- This represents a nearly 40% decline from the $20.8 million reported a year earlier.
- The drop highlights the ongoing volatility in urban commercial real estate as major anchors renegotiate or exit large-scale footprints.
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