Calvin Blissett on X
Alexander’s ($ALX) is a Vornado-managed REIT whose crown jewel is 731 Lexington Avenue, where Bloomberg leases the entire office condominium through 2040. The stock trades below asset value because of tenant concentration and a gap in Bloomberg cash rent: in March, Bloomberg agreed to swap $56.8 million of its unused tenant-improvement allowance for free rent from April through December 2026. At $246.50, ALX yields over 7% on its regular $18 dividend and trades at a meaningful discount to independent net asset value estimates in the mid-$300s, with cash approaching $100 per share after the Rego Park I sale. The free-rent period is less damaging than it looks: the abatement is funded from a lender reserve that covers debt service, and full rent resumes in December. ALX sold the vacant Rego Park I to Northwell Health for $235.5 million in May, at roughly double some prior estimates of its value, booking a ~$148 million gain. The sale generated about $97 million of taxable gain in 2026, which REIT distribution rules likely force out as a special dividend.
