Refinancing Saves $7.6M Annually, Preserves $18 Dividend For Alexander’s, Inc.
Alexander’s, Inc.’s stock traded at $229.32 on February 17 with a trailing P/E of 42.52 and offers an 8.3% yield supported by $352 million in available liquidity. A $300 million Bloomberg Tower refinance cuts $7.6 million in annual interest costs, preserving the $18 per share dividend.
1. Portfolio and Lease Security
Alexander’s portfolio comprises five high-density Manhattan properties anchored by Bloomberg Tower at 731 Lexington Avenue, fully leased to Bloomberg L.P. through February 2040. This anchor tenant generates 55% of rental income, significantly reducing lease expiration risk and ensuring stable cash flows.
2. Debt Refinancing and Financial Impact
A recent refinancing split the $300 million Bloomberg Tower mortgage into tranches including a PIK component, lowering annual interest expense by $7.6 million and extending funding runway. Combined with $352 million in liquidity, this move underpins coverage of the $18 per share dividend despite current FFO of $12.27.
3. Valuation and Upside Potential
Sum-of-the-parts analysis points to a 31% discount to net asset value, highlighting deep-value opportunity. Strategic redevelopment or sale of vacant retail space and the planned Rego Park I disposition could drive intrinsic value toward $350 per share and enhance the 8.3% dividend yield.