We came across a bullish thesis on Alexander’s, Inc. on Colubeat Investment Desk’s Substack. In this article, we will summarize the bulls’ thesis on ALX. Alexander’s, Inc.’s share was trading at $229.32 as 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 a real estate investment trust (REIT) engaged in leasing, managing, developing and redeveloping properties. ALX presents a compelling deep-value opportunity in New York City real estate, anchored by a concentrated portfolio of five high-density properties, including the trophy Bloomberg Tower at 731 Lexington Avenue. Bloomberg L.P. occupies 100% of this office space, now secured through February 2040, providing a stable 55% of ALX’s rental income and effectively eliminating prior market fears of lease expiration risk.
While retail vacancies, particularly the former Home Depot space and Rego Park I, have pressured near-term metrics, these moves are deliberate strategic actions to unlock value through redevelopment or asset sales. The market has mispriced these options, treating temporary vacancies as permanent 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 cost of building an internal team.
A recent refinancing further strengthens the investment case, splitting the $300 million Bloomberg Tower mortgage into tranches, including a Payment-in-Kind (PIK) component that saves approximately $7.6 million annually, extending runway for asset repositioning and preserving the $18 per share dividend despite current FFO of $12.27. This, combined with $352 million in liquidity, ensures dividend coverage while the Rego Park I sale or leasing occurs.
Sum-of-the-parts valuation confirms a 31% discount to NAV, with upside from leasing vacant retail space or completing strategic sales, which could raise intrinsic value toward $350 per share. ALX offers investors an 8.3% yield backed by a fortress balance sheet, exposure to trophy Manhattan assets, and optionality in asset recovery, creating a high-conviction, risk/reward asymmetric play for patient investors.
Previously, we covered a bullish thesis on Simon Property Group, Inc. (SPG) by David in April 2025, which highlighted SPG’s disciplined capital structure, growing dividend, and resilient luxury-tenant portfolio generating strong cash flow. SPG’s stock price has appreciated by approximately 36.44% since our coverage. Colubeat Investment Desk shares a similar view but emphasizes Alexander’s, Inc. (ALX) deep-value NYC assets, strategic vacancies, and refinancing actions preserving dividends while unlocking intrinsic value.
Alexander’s, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held ALX at the end of the third quarter which was 14 in the previous quarter. While we acknowledge the risk and potential of ALX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
