ALEXANDERS INC Q4 FY2024 earnings call

• New York real estate market is strong, with better space availability at 10.7% and rents rising. No major new office supply in years due to high construction costs and debt.
• Leased 3.34 million square feet in 2024, including 2.65 million in NY office. Completed significant deals like Uniqlo sale at 666 Fifth Avenue. Repaid bonds and have refinancing plans.
• Penn District developments: Close to signing 300,000 sq ft lease at Penn Two, aiming for 80% leased by year-end. Pier 94 to be delivered in 2025 as a film/TV sound stage. 350 Park Avenue development on schedule.
• Alexander's, Inc.: Undervalued, with plans to address; Rego Park properties being repositioned.

New York Office: In 2024, leased 2.65 million square feet with starting rents at $104, mark-to-markets of 2.5% cash and 10.9% GAAP. Completed 18 transactions for over 1 million square feet at $100+ rents. Occupancy ended 2024 at 88.8%, with pending master lease at 770 Broadway expected to increase it to 92.1%. Retail: Completed 25 leases totaling 187,000 square feet, including Manhattan's first Primark in the Penn District. Alexander's, Inc.: 32.4% owned affiliate; renewed Bloomberg's lease at 731 Lexington Avenue until 2034; moving remaining tenants in Rego Park to Rego Two.

• 2025 expected to be slightly lower than 2024 due to lease termination income impact in 2024 and backfilling/vacancy lease-up to occur later. 2027 expected to see significant earnings growth.
• Office occupancy to increase with pending master lease at 770 Broadway, but first quarter 2025 to see temporary decrease due to Penn Two placement.

• Short-term interest rates likely to remain high, keeping borrowing costs elevated.
• Uncertainties in real estate market recovery in other cities like San Francisco and Chicago.
• Dependence on successful lease-ups and asset sales, which may face challenges.

Q: Comment on Penn Two's leasing and rent growth.

A: Penn Two is well-received, with leases in progress and rents increased across the building.

Q: Thoughts on Alexander's, Inc. undervaluation.

A: Sum of parts analysis shows assets exceed stock price; plans to address undervaluation.

Q: Acquisitions and expansion outside Manhattan.

A: Focus on quality assets in New York, open to San Francisco but not Chicago.

Q: CapEx and same-store NOI.

A: CapEx reflective of leasing environment; same-store NOI details to be provided later.