Alexanders (ALX) risk factors, FY2024 10-K

RISKS RELATED TO OUR BUSINESS AND OPERATIONS

1. 01We may be adversely affected by trends in office real estate, including work from home trends
2. 02All of our properties are in New York City and are affected by the economic cycles and risks inherent to this area
3. 03We are subject to risks that affect the general and New York City retail environments
4. 04The value of our real estate and the value of an investment in us fluctuates depending on conditions in the general economy and the real estate business. These conditions may also adversely affect our revenues and cash flows
5. 05Real estate is a competitive business and that competition may adversely affect us
6. 06We may be unable to renew leases, lease vacant space or relet space as leases expire on favorable terms
7. 07731 Lexington Avenue accounts for a majority of our revenues. Loss of or damage to the building would adversely affect our financial condition and results of operations
8. 08Bloomberg represents a majority of our revenues. Loss of Bloomberg as a tenant or deterioration in Bloomberg’s credit quality could adversely affect our financial condition and results of operations
9. 09We depend upon anchor tenants to attract shoppers at our Rego Park retail properties and decisions made by these tenants, or adverse developments in the businesses of these tenants, could materially affect our financial condition and results of operations
10. 10Bankruptcy or insolvency of tenants may decrease our revenues, net income and available cash
11. 11Some of our potential losses may not be covered by insurance
12. 12Actual or threatened terrorist attacks or other criminal acts may adversely affect the value of our properties and our ability to generate cash flow
13. 13The effects of climate change and natural disasters could have a concentrated impact on the area where we operate and could adversely affect our results
14. 14Our properties are subject to transitional risks related to climate-related policy change
15. 15Changes to tax laws could affect REITs generally, the trading of our shares and our results of operations, both positively and negatively, in ways that are difficult to anticipate
16. 16Significant inflation and increases in the inflation rate could adversely affect our business and financial results
17. 17We may acquire, develop, or redevelop properties and this may create risks
18. 18We are exposed to risks associated with property development, redevelopment and repositioning that could adversely affect us, including our financial condition and results of operations
19. 19It may be difficult to sell real estate on a timely basis, which may limit our flexibility

RISKS RELATED TO OUR INDEBTEDNESS AND ACCESS TO CAPITAL

1. 20Significantly tighter capital markets and economic conditions can materially affect our liquidity, financial condition and results of operations as well as the value of an investment in our common stock
2. 21We have outstanding debt, and the amount of debt and its cost may continue to increase and refinancing may not be available on acceptable terms, which could affect our future operations
3. 22If a property is mortgaged to secure payment of indebtedness and income from such property is insufficient to pay that indebtedness, the property could be foreclosed upon by the mortgagee resulting in a loss of the property
4. 23Our existing financing documents contain covenants and restrictions that may restrict our operational and financial flexibility
5. 24The hedge instruments we may use to manage our exposure to interest rate volatility involve risks

RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE

1. 25Alexander’s charter documents and applicable laws may hinder any attempt to acquire us
2. 26Steven Roth, Vornado and Interstate may exercise substantial influence over us. They and some of our other directors and officers have interests or positions in other entities that may compete with us
3. 27There may be conflicts of interest between Vornado, its affiliates and us

RISKS RELATED TO OUR COMMON STOCK

1. 28The trading price of our common stock has been volatile and may continue to fluctuate
2. 29Alexander’s has additional shares of its common stock available for future issuance, which could decrease the market price of the common stock currently outstanding
3. 30Loss of our key personnel could harm our operations and adversely affect the value of our common stock

RISKS RELATED TO REGULATORY COMPLIANCE

1. 31We may fail to qualify or remain qualified as a REIT, and may be required to pay federal income taxes at corporate rates, which could adversely affect the value of our common stock
2. 32We may face possible adverse federal tax audits and changes in federal tax laws, which may result in an increase in our tax liability
3. 33We may face possible adverse state and local tax audits and changes in state and local tax law
4. 34Compliance or failure to comply with the Americans with Disabilities Act (“ADA”) or other safety regulations and requirements could result in substantial costs
5. 35We may incur significant costs to comply with environmental laws and environmental contamination may impair our ability to lease and/or sell real estate