ALEXANDERS INC 8-K

What Happened

• Alexander’s Inc. (through wholly-owned subsidiary 731 Office One LLC) announced on March 31, 2026 that it executed a Tenth Amendment to the lease with Bloomberg L.P. for the office condominium at 731 Lexington Avenue. The amendment provides Bloomberg a rent abatement of $56,808,900 covering April 1, 2026 through December 1, 2026. Bloomberg continues to lease the entire office condominium and the lease still expires on February 8, 2040.
• The Company also entered a First Amendment to its loan agreement on March 31, 2026 establishing a free rent reserve account of $56,808,900 with the lender (about $53.9M of this was already in a lender reserve). Each month during the abatement, amounts equal to Bloomberg’s monthly base rent will be applied to the loan’s monthly debt service; any excess is disbursed to Alexander’s.

Key Details

• Rent abatement amount: $56,808,900 for the period April 1, 2026 – December 1, 2026.
• Tenant fund reduced: Tenant improvement/tenant fund reduced from $113,617,800 to $56,808,900.
• Lease term unchanged: Bloomberg’s lease expiration remains February 8, 2040; Bloomberg continues to occupy the full office condominium.
• Loan reserve mechanics: Free rent reserve of $56,808,900 established with lender; monthly disbursements first applied to debt service (monthly base rent portion), excess paid to Alexander’s.

Why It Matters

• For investors, this is a material lease modification affecting near-term cash flows: Alexander’s is foregoing roughly $56.8M in cash rent over the abatement period but has structured a lender-held reserve to apply rent-equivalent amounts to debt service first and then remit any surplus to the Company. The transaction also reduces the tenant improvement fund available to Bloomberg by the same amount. The long-term lease term and Bloomberg’s full occupancy remain unchanged, preserving the tenant relationship through 2040.