Jones Lang LaSalle


Alexander's reports loss on stock expenses
by David Jones
May 01, 2006

Alexander's Inc., a real estate investment trust, reported a quarterly loss as higher expenses offset a gain from the sale of residential condominium
Alexander's Inc., a real estate investment trust, reported a quarterly loss as higher expenses offset a gain from the sale of residential condominium units at a midtown building.

The Paramus, N.J.-based REIT, which has six properties in the New York metropolitan area, logged negative funds from operations -- a closely watched measure of operating performance -- of $13.6 million, or $2.70 per share, compared with FFO of $35.8 million, or $7.06 per diluted share, a year ago.

REIT's calculate funds from operations by factoring depreciation and amortization expenses into net income. Alexander's reported a loss of $18.9 million, or $3.75 per share, compared with a profit of $31.2 million, or $6.15 share, in the year-earlier period.

The net loss and negative funds from operations include a $37.5 million stock compensation expense, which was partially offset by a $5 million after-tax gain on the sale of residential condominiums at 731 Lexington Ave.

In addition to the Lexington Avenue property, Alexander's owns the Kings Plaza Regional Shopping Center -- a two-level mall in Brooklyn anchored by Sears and Macy's; the Rego Park I property in Queens, comprising Sears, Circuit City, Bed Bath & Beyond, Marshalls and Old Navy; as well as Ikea's Paramus site and a property in Flushing, which contains a 177,000-square-foot vacant building.

Vornado Realty Trust, which owns 33% of Alexander's, manages the properties.