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    Is Alexander's (ALX) Trading Near-Term Profitability For Steady Dividends In Its Capital Strategy?

    Simply Wall St·02/15/2026 15:20:37
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    • Alexander’s, Inc. recently reported full-year 2025 results, with sales of US$213.18 million and net income of US$28.22 million, both lower than the prior year, while also affirming a regular quarterly dividend of US$4.50 per share payable on February 27, 2026.
    • The combination of reduced earnings per share from continuing operations and the continued cash return via dividends highlights a tension between current profitability and shareholder income priorities.
    • We’ll now examine how the decline in full-year sales and net income shapes Alexander’s investment narrative for current and prospective investors.

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    What Is Alexander's Investment Narrative?

    For someone owning Alexander’s, the core belief is that its concentrated New York real estate portfolio can support both the business and a generous income stream, even as reported earnings move around. The latest full-year numbers show sales and net income down again, and earnings per share from continuing operations have stepped lower, yet the Board reaffirmed the US$4.50 quarterly dividend. That mix puts the spotlight on two short term questions: how comfortably the dividend sits against weaker earnings and interest coverage, and whether the recent share price pullback after the results has already absorbed most of the disappointment. The earnings decline reinforces existing risks around high leverage, slower expected revenue growth and an earnings outlook that screens weaker than the broader market, so this news looks more like a confirmation of those concerns than a new shock.

    However, investors should be aware of how much debt magnifies both returns and risks here. Alexander's share price has been on the slide but might be up to 37% below fair value. Find out if it's a bargain.

    Exploring Other Perspectives

    ALX 1-Year Stock Price Chart
    ALX 1-Year Stock Price Chart
    The two fair value estimates from the Simply Wall St Community cluster between about US$171 and US$190, underscoring how differently private investors are viewing Alexander’s recent earnings softness and generous dividend. When you set those opinions against the pressure on profit margins and interest cover discussed above, it becomes clear that the community is weighing income appeal against balance sheet risk in very different ways, so it is worth comparing several viewpoints before making up your mind.

    Explore 2 other fair value estimates on Alexander's - why the stock might be worth 27% less than the current price!

    Build Your Own Alexander's Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Alexander's research is our analysis highlighting 4 important warning signs that could impact your investment decision.
    • Our free Alexander's research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alexander's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.