Alexander’s, Inc. (ALX): A Bull Case Theory

We came crossed a bullish thesis connected Alexander’s, Inc. connected Colubeat Investment Desk’s Substack. In this article, we volition summarize the bulls’ thesis connected ALX. Alexander’s, Inc.'s stock was trading astatine $229.32 arsenic of February 17th. ALX’s trailing P/E was 42.52 according to Yahoo Finance.

London skyline, its skyscrapers, buildings, bridges and the Thames River

Alexander's, Inc. is simply a existent property concern spot (REIT) engaged successful leasing, managing, developing and redeveloping properties. ALX presents a compelling deep-value accidental successful New York City existent estate, anchored by a concentrated portfolio of 5 high-density properties, including the trophy Bloomberg Tower astatine 731 Lexington Avenue. Bloomberg L.P. occupies 100% of this bureau space, present secured done February 2040, providing a unchangeable 55% of ALX’s rental income and effectively eliminating prior marketplace fears of lease expiration risk.

While retail vacancies, peculiarly the erstwhile Home Depot abstraction and Rego Park I, person pressured near-term metrics, these moves are deliberate strategical actions to unlock worth done redevelopment oregon plus sales. The marketplace has mispriced these options, treating impermanent vacancies arsenic imperishable impairments. ALX is externally managed by Vornado Realty Trust, whose CEO Steve Roth owns a 32.4% stake, aligning interests with shareholders and providing top-tier development expertise without the outgo of gathering an interior team.

A caller refinancing further strengthens the concern case, splitting the $300 cardinal Bloomberg Tower owe into tranches, including a Payment-in-Kind (PIK) component that saves astir $7.6 cardinal annually, extending runway for plus repositioning and preserving the $18 per stock dividend contempt existent FFO of $12.27. This, combined with $352 cardinal successful liquidity, ensures dividend sum portion the Rego Park I merchantability oregon leasing occurs.

Sum-of-the-parts valuation confirms a 31% discount to NAV, with upside from leasing vacant retail abstraction oregon completing strategical sales, which could rise intrinsic worth toward $350 per share. ALX offers investors an 8.3% output backed by a fortress equilibrium sheet, vulnerability to trophy Manhattan assets, and optionality successful plus recovery, creating a high-conviction, risk/reward asymmetric play for diligent investors.

Previously, we covered a bullish thesis on Simon Property Group, Inc. (SPG) by David successful April 2025, which highlighted SPG’s disciplined superior structure, increasing dividend, and resilient luxury-tenant portfolio generating beardown currency flow. SPG’s banal terms has appreciated by astir 36.44% since our coverage. Colubeat Investment Desk shares a akin presumption but emphasizes Alexander’s, Inc. (ALX) deep-value NYC assets, strategical vacancies, and refinancing actions preserving dividends portion unlocking intrinsic value.