Alexander's Inc reported stronger-than-expected earnings for the third quarter, outperforming analyst forecasts despite a slight decline in revenue from the previous year. The company�s net income for the period reached USD 6 million, exceeding estimates, while funds from operations (FFO) per diluted share increased to USD 2.91 compared with USD 2.84 a year earlier. Revenue totalled USD 53.4 million, surpassing projections, although down year-on-year.
Alexander's Inc exceeded market expectations in its third-quarter results released earlier this week, posting a revenue of USD 53.4 million against the analyst estimate of USD 51.6 million. Despite this outperformance, the company's revenue and net income showed a year-on-year decline. Net income for the quarter stood at USD 6 million, lower than the USD 6.7 million recorded in the same period last year, which ended in late September 2024.
The company's adjusted funds from operations (FFO) rose to USD 14.92 million, with adjusted FFO per share improving to USD 2.91 compared with USD 2.84 in the previous year. Earnings per share were recorded at USD 1.16.
Analyst coverage on the stock remained limited, with the only available rating categorising it as a 'sell.' In contrast, the average consensus recommendation for Alexander's commercial real estate investment trust (REIT) peer group stood at 'buy.' Wall Street's median 12-month price target for Alexander's Inc was set at USD 155, approximately 42.5% below the company's closing price of USD 220.93 as of the end of October.
Although Alexander's Inc faced a decline in both revenue and net income compared with the previous year, its third-quarter earnings still surpassed analyst expectations, signalling operational resilience. With improved funds from operations per share and limited analyst coverage reflecting mixed market sentiment, the firm's near-term outlook may hinge on its ability to sustain profitability amid revenue pressure and evolving investor confidence within the REIT sector.
Source - Reuters
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