PARAMUS, N.J.--(BUSINESS WIRE)--
ALEXANDER'S, INC. (New York Stock Exchange: ALX) today reported:
Quarter Ended December 31, 2007 Results
Net income for the quarter ended December 31, 2007 was $33.9 million, or $6.66 per diluted share, compared to a net loss of $74.4 million, or $14.79 per diluted share, for the quarter ended December 31, 2006. Funds from operations ("FFO") for the quarter ended December 31, 2007 was $39.4 million, or $7.74 per diluted share, compared to negative FFO of $68.9 million, or $13.70 per diluted share, for the quarter ended December 31, 2006.
Net income and FFO for the quarter ended December 31, 2007 include $16.1 million, or $3.17 per diluted share, for the reversal of a portion of stock appreciation rights ("SARs") compensation expense. Net loss and negative FFO for the quarter ended December 31, 2006 include $93.0 million, or $18.49 per diluted share, for an accrual of SARs compensation expense.
Year Ended December 31, 2007 Results
Net income for the year ended December 31, 2007 was $114.3 million, or $22.44 per diluted share, compared to a net loss of $75.0 million, or $14.92 per diluted share, for the year ended December 31, 2006. FFO for the year ended December 31, 2007 was $136.3 million, or $26.75 per diluted share, compared to negative FFO of $53.2 million, or $10.59 per diluted share, for the year ended December 31, 2006.
Net income and FFO for the year ended December 31, 2007 include $43.5 million, or $8.55 per diluted share, for the reversal of a portion of SARs compensation expense. Net loss and negative FFO for the year ended December 31, 2006 include $148.6 million for an accrual of SARs compensation expense, partially offset by a $13.3 million after-tax net gain from the sale of residential condominium units at 731 Lexington Avenue. The net of these items decreased net income and FFO by $135.3 million, or $26.92 per diluted share.
Alexander's, Inc. is a real estate investment trust which has seven properties in the greater New York City metropolitan area.
Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.
ALEXANDER'S, INC.
OPERATING RESULTS FOR THE QUARTER AND YEAR ENDED
DECEMBER 31, 2007 AND 2006
----------------------------------------------------------------------
Below is a table of selected operating results.
QUARTER ENDED
DECEMBER 31,
----------------------
(Amounts in thousands, except share and per
share amounts) 2007 2006
---------- -----------
Revenues $ 52,291 $ 50,226
========== ===========
Net income (loss) applicable to common
stockholders - basic and diluted $ 33,930 $ (74,361)
========== ===========
Net income (loss) per common share - basic $ 6.73 $ (14.79)
========== ===========
Net income (loss) per common share - diluted $ 6.66 $ (14.79)
========== ===========
Weighted average share and share equivalents
outstanding:
Basic 5,043,950 5,027,912
========== ===========
Diluted 5,094,492 5,027,912
========== ===========
YEAR ENDED
DECEMBER 31,
----------------------
(Amounts in thousands, except share and per
share amounts) 2007 2006
---------- -----------
Revenues $ 207,980 $ 198,772
========== ===========
Net income (loss) applicable to common
stockholders - basic and diluted $ 114,341 $ (74,983)
========== ===========
Net income (loss) per common share - basic $ 22.68 $ (14.92)
========== ===========
Net income (loss) per common share - diluted $ 22.44 $ (14.92)
========== ===========
Weighted average share and share equivalents
outstanding:
Basic 5,041,572 5,025,726
========== ===========
Diluted 5,094,488 5,025,726
========== ===========
The following table reconciles net income
(loss) to FFO (Negative FFO):
QUARTER ENDED
DECEMBER 31,
----------------------
(Amounts in thousands) 2007 2006
---------- -----------
Net income (loss) $ 33,930 $ (74,361)
Depreciation and amortization of real property 5,483 5,471
---------- -----------
FFO (Negative FFO) $ 39,413 $ (68,890)
========== ===========
FFO (Negative FFO) per common share - diluted $ 7.74 $ (13.70)
========== ===========
Weighted average shares used in computing
diluted FFO per share 5,094,492 5,027,912
========== ===========
YEAR ENDED
DECEMBER 31,
----------------------
(Amounts in thousands) 2007 2006
---------- -----------
Net income (loss) $ 114,341 $ (74,983)
Depreciation and amortization of real property 21,943 21,741
---------- -----------
FFO (Negative FFO) $ 136,284 $ (53,242)
========== ===========
FFO (Negative FFO) per common share - diluted $ 26.75 $ (10.59)
========== ===========
Weighted average shares used in computing
diluted FFO per share 5,094,488 5,025,726
========== ===========
FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as net earnings determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO and FFO per diluted share are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO and FFO per diluted share should be evaluated along with GAAP net earnings and earnings per diluted share (the most directly comparable GAAP measures), as well as cash flow from operating activities, investing activities and financing activities, in evaluating the operating performance of equity REITs. Management believes that FFO and FFO per diluted share are helpful to investors as supplemental performance measures because these measures exclude the effect of depreciation, amortization and gains or losses from sales of depreciable real estate, all of which are based on historical costs which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, these non-GAAP measures can facilitate comparisons of operating performance between periods and among other equity REITs. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as disclosed in the Company's consolidated statements of cash flows. FFO should not be considered as an alternative to net earnings as an indicator of the Company's operating performance or as an alternative to cash flows as a measure of liquidity.
Source: Alexander's, Inc.
Contact: Alexander's, Inc. Joseph Macnow, 201-587-8541