Alexander’s, Inc. (NYSE:ALX) Q3 2023 Earnings Call Transcript

Glen Weiss: So we’ve signed the lease with Selendy Gay, which we have mentioned for 100,000 feet. We have another very sizable lease out in documentation right now, which is in our fourth quarter projection of losing activity. Otherwise, tour volume is very, very strong. The building is, if not the best, certainly one of the best assets in Midtown and it’s showing just how good it is right now. And this comes off the renovation we did some 10 years ago. And now with the new amenity program, we’re bringing in there. So action has been very good at 1290, and we expect more to come next year as we get the spaces back from equitable and others.

Michael Franco: And I would just add to what Glen said, we talked about this demand trend, tenants wanting to be in the better buildings, west sub markets basically being at equilibrium. And I think 1290 reflects that. And so if you look at where we’re signing deals versus where we thought we’d be earlier in the year, rents are definitely up. I think tenants recognize the quality of the building and our leasing track record there has historically always been good. So I think our activity level of where we’re at is we’re quite encouraged by both what we signed and what’s in the queue. I want to come back to your first question. I would just look quickly on the side. You are correct in terms of the $62 million being lower. The big driver of why that was down was we did a significant in the money cap premium for 1290 actually last quarter of about $60 million. And so that’s what the delta was or the main driver.

Operator: And our final question today is a follow-up from Steve Sakwa at Evercore ISI.

Steve Sakwa: Steve, I was just wondering if you could sort of provide any updates on the casino license, maybe that Vornado was potentially pursuing? And any thoughts just kind of on where the state is in that whole process?

Steven Roth: It’s highly likely that we will not pursue the casino license.

Operator: Thank you. And ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to the management team for any closing remarks.

Michael Franco: Thank you all for joining us. We will look forward to talking to you on our next call, Tuesday, February 13. Hope everybody has a happy Halloween and gets lots of good candy. Take care.

Operator: Thank you, sir. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.