ALX - Earnings call 4 2022 | Alexander's, Inc.

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Operator

Good morning, and welcome to the Vornado Realty Trust Fourth Quarter 2022 Earnings Call. My name is Dave, and I will be your operator for today's call. This call is being recorded for replay purposes. [Operator Instructions]

I will now turn the call over to Mr. President Counsel. Vice Senior Borenstein, of Corporation Steve Please go ahead.

Steven Borenstein

these XX-K Fourth Call. quarter Commission. deemed Yesterday factors. during for and the Securities with call, financial year risks as to to for statements statements. these due on release Relations Vornado today's earnings the website, financial we These made this In financial Earnings packages statements, these annual Trust Realty Form report as report may materially risks, annual be fourth of Please Commission, included and of Welcome only today's documents the regarding measures. other during call aware be variety on Exchange company non-GAAP may XX-K certain call uncertainties uncertainties. Investor from are The not undertake afternoon, as section. . Please may forward-looking to to XX, does duty update and December supplement. date. our differ any The directly we under release, that Quarter statements information include issued most and and more may refer of XXXX to accurate discuss are filed available www.vno.com, our and the our well will measures with these including results our actual filings a that time-sensitive ended Securities our information Form and and supplemental the comparable Exchange measures Reconciliations documents earnings be Form information GAAP XX-K our our on in a forward-looking

and Executive Financial comments Franco, and today are Officer; call from our President the management and Steven Roth, opening Chairman Chief On Chief Officer. Michael for

Steven for is team and present to turn now senior Our the call over questions. I Roth. available will also

Steven Roth

and Steven, everyone. morning, you, Valentine's good It's Day. Thank

rates. Ex XXXX due negatively Michael full will expect quarter rising performing XXXX Fourth well. down is we with interest strong core year be our down to FFO FFO XX% was impacted a rates, higher cover in year a a business As a of up higher will rates. quite was surprisingly, by moment, comparable XX%. Not interest year,

cities share to New most of in to I'd in dozens York chance to survey market all the home. that their, you And for to are stay area who dozens here. other New commitment important the continues our America. York to with country. York second goes headquartered of People other thoughts. that a the making our the noise, speak, grow be We tightest is clients all live by want not their city it's Notwithstanding whom like so New continuously few and New the who York. residential in and reaffirm are And tenants, in

is and our raw the capital concrete are material. in but business, curtain important, Steel, wall essential

middle in with funds is borrow estate rates now Federal scarce, at a up and Fed tightening X%, are real result Notwithstanding can't of and are all. cycle, interest borrow operators is or an We understatement. Reserve the that's run-of-the-mill XX% can't the of most at which capital

began we when in be. Farley how prefund would XXX% to our and We construction and District, cash X in development in ago, then years PENN know the costs. loaded projects X this billion done. Penn prescient of $X PENN have we we what over Facebook here's our So X didn't all-important

finish PENN feat. Farley clear almost that's and All X free X finished and year-end. will be Facebook X a of now So for, unencumbered, around quite these will so, is PENN and and assets and paid

current that And provide mature loans is would that only our partial I XXXX maturities. all against interest no term. We that is in helpful, observe handled which for there of if a at credit series then in a a put And might locked have market. to the rate even of but market rate rates, they're and lower a while very XXXX observation on swaps loans giving further no interest prices caps, protection. really We and rising company stock protection they

This we retain annually. this which And dividend, building, our tower a deal with at of new build of in on January, XXX,XXX our allowing release a teardown quarter essentially XXXX XXX,XXX certainly of transaction. grand declared important million the building, see still way, entire result square an master cash site. involved of to Park feet a larger high assembled a million the relieving foot us a X.X% X, square year, $XXX rightsized explaining by their stock at completed us our XXX of too press we Please a Citadel foot yield. and first Avenue will In Beginning leasing trades the of a square almost vacancy. X.X deal December

quality behind. to I Call work it's There And but start here. from today. disruptor, of the measure, This at the growing. aggressively lots We millions left friends at on of they class, think Zoom a home and I table. and team a deal site, might any our week alone a be home I Americans X:XX. and focused on firm now, that think is comes tens will return by me to kitchen the be companies -- from a will years employee have fact down X way, head or differentiator his Ken the may high or is intensely simple from think me And that everybody absurd that $XXX work at its of I Interestingly, Wall a of equity days Street, validates to stock their embrace tells the working crazy, but [indiscernible]. whatever, be think day, is development that $XX venture still of for Citadel is that our for significant by return learning every from

rates market XXXX, reaction to fact well X. will outstanding in our the PENN X, PENN on supplement in we getting projected for You based we updated and X feet that are our X based aggregate PENN raising projections square and we at in notice This slotting XX,XXX as X Farley, XXs development that PENN leased at our on average and PENN returns. the the

to is achieve here at new returns construction. those below rents well required for strategy strong Our very

The off. PENN lease is kicking ground X now process

by and required conditions, $XX accounting ground convention, lease that of now think in quarter our number we reflected market be million XXXX, a the GAAP Based estimated current lower. first of in should bit we As statements. that quite a on

of We capital quality challenging believe and reflected today. volumes leasing aggressive likely as in and XXXX their continue Fed's be act to the This the We wins increases business feel and will rate effect generally expect lower product belts tighten will caution. be with markets. and frozen consumers

premium. new X, Just at our et new amenities Not new commanded [indiscernible] builds, long X, look lobbies, PENN a at $XX at construction cetera. PENN ago,

$XXX Now it anybody think that more. premium that's adjust. high commands Does and too the market a or will

York upward and the almost One foretellers more of which next all one. now a Capital markets making important to new, New build markets is real point, are. market. estate, supply, landlords' great In history impossible period we it the bull are market of and followed of the constrained landlord this will an and here be

Now over to Michael.

Michael Franco

good Steve, morning, you, and everyone. Thank

had from rising As a headwinds strong rates. experiencing despite interest Steve year we mentioned,

Fourth comparable or year's XX.X%. fourth was for of $X.XX For XXXX. $X.XX FFO per share a $X.XX adjusted was from compared to as share, quarter, decrease or FFO last as comparable adjusted per the quarter up XX.X% $X.XX year, $X.XX

on While primarily commencement and from higher the increased impact performance PENN from interest had our earnings the new strong quarter and leases. line expense, X straight-line down, by estimated rent driven noncash the were retail net for of expense the XXXX business ground rates core office

our and We a earnings supplement. provided have quarter-over-quarter in release financial our bridge

We $X.XX have items in per the dispositions, share. increased several asset Park XXX noncore and by quarter, primarily Central sales gains other total FFO South in which noncomparable from

Avenue announced, joint of quarter, $XXX It noted should and to in approximately investment during the in noncash impairment FFO. equity included recorded is $XXX previously the million we million Times Square Retail As charge not be charges our of venture. as which related impairment fourth Fifth

the prior quarter. Company-wide by the year's over increased fourth X.X% NOI for same-store fourth quarter cash

office the New business was York same-store X% to online. while up Our coming overall Farley to same-store fourth our office rents compared X.X%, year's due at was prior cash up primarily business quarter,

to was on primarily commencement same-store cash strong rent retail Our very due important NOI up leases. X.X%, several a the

XXXX. Now turning to

higher offset by that economic capitalized current $X.XX expect than our certain assets PENN interest a from These comparable the mentioned expense include theMART These items. makes accrual running $X.XX forecasting full tax to Steve and property interest debt, XXXX lower half as of during the X usual, on the we FFO and on from net XXXX. result which down $X.XX environment given the recognized roughly curve. currently rent more impact earnings, higher year SOFR additional income of rates of be variable through rate XXXX; current of from assuming reset While interest, XXXX potentially the prior difficult known result was is of could reductions a earlier. be period ground in second of lower FFO from of sale the a at the our

lumpier are level is and more cost markets. the activity opportunities. has pace a grappling We to feeling work and norms. both as businesses XXXX flexibility, of sentiment right policies more with are but in hybrid shifting see is leasing are exercising generally The overall Companies months, turning of caution. the to closely few as pressures the and pre-pandemic still of the and slowed Now year leasing challenges past

collaboration, pickup real particularly the by the in are clearly office is of a and portfolio, month employers working and Tuesday improving return seeing to the employees in productivity, momentum approaching our Thursday. cultural are through Both XX% We rates benefits office Utilization throughout together. recognize and creativity month.

the continues quality tenants. to Flight theme prevalent to be for

leasing is activity out. broadening However,

a with cost cases, figure emerge are enough tenants landlord. the the pickup their buildings, which issues year willing high on buildings focus even retain are One of are private we do as ones, to in to new the construction particularly Many quality with rents. them. multi-tenant leverage their this beginning traditional struggle is dealing buildings a think and the these some are their to will in and begin pay capital in avoid their Class heightened which ability to We assets. out limit seeing aforementioned are may at activity invest are or levels, to landlords, thing and all A pressures brokers not smart in Tenants

foot we strong foot with world-class culminated Park million this lease building A a for XXX,XXX sponsorship Strong is announced master relationship the the We lease X.X are square XXX with well-capitalized to in with and is of new partnership transaction initial previously quality the which flight square proud potential XXX site. our example Park with will an XXXX the Avenue with a Citadel Vornado relationship future team, began benefit. our landlords beginning in of Citadel. and at have built at like of perfect

at healthy feet negotiation. of leases X.X feet remains being York New stages of activity of sector, in pipeline almost million active. and to leasing XXX,XXX in square feet financial overall another Our finalized in leases of be particular, with continues square square XXX,XXX The various

Turning to Retail.

With more inflation in new back in generally for at in we confident levels, to given and economy of the overall the rebound at workers, Retailer locations. retailers are see lock are are about active continuing more are to taking concerned still spurring tourism more new They to rents starting become attractive spaces. store levels. in is are search Manhattan sales prepandemic much deals which retailers daily but

increase financing largely now. an sharp in closed. markets rate market remain constrained, volatility cautious by Fed's still loans Turning lending the markets increases. and driven highly capital the and to The the problem Banks dealing is CMBS are from the with in remain

tightening financing happen the won't likely the properties, and for cycle. until time the take markets While sponsors thaw, to available Fed quality some its highest ends which is will

there without right to debt balance strength. difficult in asset times, front, stable large the be these now. retail sheet assets without transact assets, investors office York market, continues financing to interest volatile it focused In On New but we remain sale from and maintaining a active on remains in-place

$X.X and is $X.X in a credit under Our billion billion revolving billion, $X.X our T-bills U.S. cash restricted cash, and facilities. current investments strong billion undrawn of liquidity including $X.X

refinancing our have of maturities early In no year, addition, we through mid-XXXX. as result last activities a significant

turn operator the I'll to that, over Q&A. it With for

Operator

Our with Evercore Instructions] question Steve [Operator ISI. comes first from Sakwa

Steve Sakwa

since that about maybe guess you and curious I start Steve, and a return the going a more PENN I leasing bit wanted active X. a I you've there. kind I can guess up got about. developments yields, mark-to-market was But I with of to the X understand visibility good little PENN talked guess the and I maybe little

Michael You pipeline did that any up maybe take but talked you've think don't the of leasing, yield the there, that's part I done about. but incremental

those two? address So sort just could maybe you of

Steven Roth

We know Farley. yield is. upon on with X.X year, years did PENN that the the X on now we We even assets. market's years, took X the yield up very We what PENN We X. have based took down experience and X these of reaction marginally

We bid that's have signed is we PENN know what in why and with the X. We for bid is feet know X. ask initial square what returns. the we exceeds we PENN leases XXX,XXX adjusted and And of it ask -- and underwriting, X, PENN made our the

Steve Sakwa

of interest Okay. lease And kind little as the I just may some talked headwinds then that half of the because in the bit the growth make understood hit, of just that sounds of taxes. that $X.XX properly. I thought 'XX, point the be Michael, just maybe $X.XX from a might It expense sure follow-up. of a maybe the you -- been better. wanted get tailwind, to a the ground understand have property year, I the when in you I about was I sales. first quite to bit like I clarify hoping didn't but a could

Michael Franco

accrual. didn't gets it have reversed Yes. us in and a at the at and We It prior had ding. benefited so of half of 'XX. the the obviously 'XX, year, beginning of a that end that's this We first period

timing we a this beginning year. the us XXXX. year, beginning it it's difference. got the half at So benefited in of hurt of Net-net, last was reduction, -- there we but affects a We

Operator

is BMO next Markets. John The with question from Kim Capital

John Kim

asset an was impair now why it wondering what well upcoming. pretty at you are it about ask to There's was the to occupied. XXX That's no wanted write-down asset? loan took, Madison. where plans you particularly I your I decided the and with

Michael Franco

assets venture as resulted bought different owned quarter. joint it for and we look since what's this result at you of impairment that assets. is And wholly asset, accounting in the if from the John, an happened process, a

We not rents tenant in asset year. and retail what what move last large So underwrote. are bought were the unexpectedly at the out we hospital they obviously time we a had the

and run you accounting model, so that's And the it the through conclusion.

in still recover. value keep could mind, the again, Now noncash it's We asset. item. own The a

the But We term on work very byproduct. -- we'll that's continue on rate. to have that asset a And sit the value. today, hopefully a based the favorable of as debt on and methodology, here asset, we create accounting

Steven Roth

is, impairment. is why independent to process used to the is, take degree, in by degree, we to formulaic words question, large a you John, a large and decided impairment accountants. your overseen an The rigorous and our

an of So we try and to more keep as a much showed subjective judgment appropriate of make they as possible of was it the write-down And an there. out kind that have formulaic academic, exercise. it may

John Kim

I much have on been quarter, big earnings also trade few this really question businesses, quarters and And on Okay. show. with so past is not quarter. what's disclosed driven been going occupancy following going What's show. this trade by the really in with a occupancy with and it's in to My theMART a this And such the wanted signage growth. the showroom of drop on variable could you which on driver second if quarter? comment know

Glen Weiss

It's Glen Weiss.

business was So the theMART, for to the Chicago due on increase leaving vacancy in Atlanta. casual

are business pipeline, that's Chicago, office the in New that volume, the We et in are of vacancy churn terms into in headwinds There and converting leasing York at cetera. not increase theMART. like space,

we June. complete that great, is program in along expect X.X coming Our to be

late. Our tour very good been volume of has

fall. couple increase in have vacancy business, the of Atlanta out now. moved a But town We to right which the of casual negotiation the is in leases in the

Michael Franco

is We on John, a had for if to the variable punch businesses very XXXX. that are the the trade levels. except back variable think will, all pre-COVID shows strong I line, the Yes. businesses, you

successful our bit so and quarter couple fourth was with located so of impacted fourth that XXXX. fourth think a Hotel had signage that. year more and a little than I quarter bit little bit ever, off-line little was and development, that most the of quarter, PENN are X at a a signs Penn by off got We've

year-over-year, the cranking say. up prior should But signage, fourth from a I had said, we a BMS for when were bit difference strong then everything, whether it's of it back up. year And the quarter-over-quarter year, little signage as or really, timing except garages, shows, trade I generally quarter

fourth back Some this pace. to and moved of their shows year the normal quarter got on

So they'll sign allow our hopefully we which will the particular, on we're -- to -- shows the perform at yet. fact the time, businesses. is trade we've redoing we're of the think quite that's got actually We and get doing [indiscernible] businesses signs X back both obviously, XXXX the peak drive think PENN, couple what we in in then are a mega Times revenue right where not [indiscernible]. the well the think signage given Square, control in We book now, But that's the where I rest next at well. there of years, our think And performing but signs in And additional the dominant in nutshell of a are we're in to to perform the us once over completed. of with positive. heart construction will sides continue

John Kim

So down going or year? up this is net variable

Michael Franco

is to hard In in like going XXXX, PENN. -- third-party couple took based off-line is lot a it's to mean, A predict. would say of we're answer comes signs in I we because the I on roadblocks. of have what this

and taking what's we down rebuilding It So we're offline. fact the think side of the said, as just off-line probably on we're, right? XXXX, bit it's be a revenue net-net, that XXXX. comparable some little to could So signage because I

offline. think we've overall, some little given bit a down probably just I stuff So taken fact the

Operator

Bank with Bonnel of America. Camille from is question next The

Jing Xian Tan

with around Just still development road, strategy the are about your I context a pipeline and existing speak these but down for Penn District? there financing able generally, you thinking capital to Citadel to the know projects. how is you are the like bit in sourcing the future allocation opportunity with

Michael Franco

we do the and to difficult expensive. it today very, because it to very up line be have think I very don't financing is construction news Camille, good would

be -- respect project not XXX, today. that yet, It's X but is it'll right with years, right? to right not So X, right it's in

not the the new Again, development -- think are is with I on to And they last not not hopefully, back. will so available, be. hospitable conducive financing we goes more if generally is Steve commented very the banks think PENN. as as the market really I respect than which is we're for And expensive, have markets expect Construction today. call, same pulled

So it's today and I And line think to respect XX%, that it's And our fund future, again, challenging. up. XX% to will But settle our loan in have contribution. on a of partners markets the of Most land equity. down. the from the come XXX, we'll will put not we at construction to with traditional balance should day equity the the

Steven Roth

about Park maybe excited Avenue, excited and more it. even pretty So, importantly, more we're about XXX even tenants

there land actually simple. strategy land will contribution. is Our constitute The our value very equity our value,

land the equity. value represent will So our

put to a financing. cash have in maybe market $XX in normalized We our represent tiny [indiscernible] million financing to the it of -- will million, $XX under should the -- easily not be million, very construction in balance equity. permanent The $XX another or share in of a

very anchor to The substantially with deal comes anchor lease. along sized a

And in everything place. so is

Our -- we have land be our anchor will an equity. tenant. and The

of do more X so will down in are What's [indiscernible] immediately well and process now, approval And be into will teams not financing halfway very, period building the actually, short teams XXX and the starting way, starting be But the that great probably to all almost cash development Part our swing PENN have Park. at design through by it's market, a hard construction. requirements, to one. more, X -- our we that than of we're time, of normal very relatively from in is I we would immediately are that are PENN we is arrangement part. years And X of maybe conceived. a construction at PENN the it. work in basically the completed right think, going the any a kind X, Farley on so And very, our ready are that

Jing Xian Tan

appreciate details Really Yes. the XXX all Park. on

your my Just out a your debt on you've net maturities, above XXx. great follow-up, for in done basis terming but leverage a is job

to and talk medium-term targets? you can about how to today where thinking leverage near- are you're So your

Steven Roth

Michael.

Michael Franco

-- Our a probably think we is characterized. little than leverage -- lower bit I you characterized

time is less over leverage. goal have Our to

we pushed year. anything think importantly, asset think that preference over accomplished through this If our maturing couple and don't have sales. have out. maturities have a I some will now, earnings But small is be And we likely growing to of less being any leverage. we of time, process

that So not. the next is that the But going Just given to probably time, we change foresee environment, months? in over XX happening.

Operator

The from Citi. next Griffin question Michael is with

Steven Roth

want second. emphasize want back I on, Michael Hang a to I go said. for to what

of referenced terms you behind the have of our hands sort leverage In tied our that we back. Camille, ratio

over in income is going gets So number And than which of have from one, X is it X PENN. less from earnings be which we've optimal income to decrease two had what have we underwritten will earnings, have we a X online. when and businesses million Number coming you. in recover, variable $XXX PENN, basically

very ahead. pro business these So if all go will sorry, different of come our down parts forma leverage I'm stabilized, our when significantly. you we get ratio forward,

Michael Griffin

with here Griffin Citi. Michael

Michael, in Just you has slowed, mentioned prepared are lumpier. maybe leasing. transactions to your getting you're back remarks, leasing

square to pipeline. the about X.X million in You pointed feet

there Just executing over here update year those is one up at of Broadway expirations? maturities. maybe mean, the larger upcoming there's the that? end you of I on confident think maybe coming looking how any on cadence bigger And at with quarter. upcoming some this some of in notable I this XXX more are

be So any update there would great.

Michael Franco

Yes, Glen.

Glen Weiss

Glen it's Michael, Weiss.

the the quarter, year, blocks, PENN [indiscernible] [indiscernible] X then XXXX. at back which one expirations And that XXX is X now comes off X the at of expirations continuous of coming and this Citadel, end by then which expirations constitute from get is care rents bulky Verizon in really we 'XX. of back XXX. taken our from Park, the was One at low we So had X other

presenting imagine, you the We're attacking the over buildings, As market, we're all product towards weekly. can the marketing it.

high-quality We showing think the the in the assets. both of be end product, in Midtown Excellent the some amenity those going 'XX. is are great in already South. year, of bones, we'll floors in the building, program most probably with XXX space market now showcasing By assets for XXXX. we're very ready to unique block X action undertake

So that's the what's coming real of in this expiries. of year outline terms

Michael Griffin

I around like guess to hubs. high-quality building An XXX point, around really pitch that this you have the maybe doesn't transportation Broadway asset strategy. the fit into that

guess opportunities how you measure within relative demand I So have might you do that to Penn the versus District?

Glen Weiss

at spot. will in that It's a Grand the is at right of South. right great easily. very Central let XXX and It's subways, right spot village. the in NYU, the you Midtown to sweet It's Penn

So think geographically, it's excellent. we

Michael Griffin

see I push think to much talked Okay. I'm the curious, employees importance number think you to that back having really how more they it, and potentially Do maybe back XX% leaders that of on your to you've Tuesdays XX% of focused the getting can their about And Steve. And on one remarks Thursdays. in to you're XX% pre-COVID you and back do about range? just business you occupancy for In getting then employees that the get that with call your maybe in. prepared office. kind conversations

Steven Roth

always not there's and XX% have more who is I you. think in offices what normal are the traveling, because like people

So to to fictitious. to try is get XX%

getting Wednesdays to we're Thursdays. XX% close think and now I Tuesdays, mean, on I So

to a assume the dead holiday forever. going is Monday and I go. think is be forever. is Friday Friday you touch can

think coming world that to I surely. slowly normal So is back the but

every this So come the want people being they in to that boss want of want with they multiple back what many excitement Number city. wants his the you, get the They find collaboration to activity, to Number and are being come have people into things they two back. happening. and one, is colleagues, find back. back now their alone,

that think to will all revert So over slowly normal. time, I that,

the no Your does have? some the I And have powers. are Well, Employees come wanting want question comment voices on way. But have and come is bosses do either was total important of the most back can't power what to some that power the back. actually trend bosses themselves. to of people

Operator

Alexander is Piper Goldfarb Sandler. The with next question from

Alexander Goldfarb

on XXX [indiscernible] awesome First, Park. deal. Awesome,

to and and well everyone. So done you Michael

So that's questions. Two awesome.

settled that? like you the you what think place and mark-to-market? Where exercise? the versus the seems JV, do peg get this Just is are more the market that will has market, rents the that First, Like that on And think and on guys be an big there prompted about trying future And the would as then you to Retail impairments? impairment annual took, we color picture, it this. recovering. in hopefully is some

Steven Roth

the Well, I can't went future what an The through we process. and a shows. math was want that predict the showed nor I do math to. rigorous do impairment, We there

transactions about Times Avenue There -- there are market So few are Fifth that there's that. thin market. and at What the rents are something very Square. is -- it's very a not

make there sure. a ago. this So lust will come that that -- space market. entirely. There back can It was sluggish too years is assumption still and for you the not impaired recovered same is for X hasn't But that the

Alexander Goldfarb

you is, It's in appeared recently casino. Manhattan studios. you for talked the movie press guys great you're Okay. seems Mall still in that a for question And hunt about the since while studios. to second potential The spot the be then a been

have are and things an less So operating front you -- more items burner provide back of update an an for us. partner you of what can Do Do operating if those both on you have casino? partner just you that are will. Or house, X for sort of studios?

Steven Roth

really yes burner. back is answer and they're The yes in no, terms partners, operating and of not

Alexander Goldfarb

elaborate? to Or... Anything more

Steven Roth

to mean, I to we be a going wonderful converted that is really. have Not property Manhattan studios.

We have a plot. great operating

and conversations mulling is I very a actually about in multiple respect -- and to demand still that. lot say. are have you, the to actually We're don't the extraordinary. studying with With what have users, thinking, We casinos, and

We have throw whether it And site. a game we decided. the be great into is to

Operator

is next with Malhotra question The Mizuho. Vikram from

Vikram Malhotra

one to or So of view sort view. the dividend Board's back of your just going the first

move-outs? you baking are terms just street occupancy in, that key correct in I X in big the helpful. the for relative If it core Just color, expirations the dividend that or I retail. to core portfolio, give into some what is? you you outlined, metrics us the like the wanted I portfolio all picture sounded asked of as business stands where like in just what guidepost would can to it be they're terms am of is some just because understand baked more

Steven Roth

is based income. upon dividend of minimum the a Well, taxable

to overpay on our us was I and X.X% use mistake. of that to felt income felt we was over it which our to the extra -- like kind the dividend our is rightsize, appropriate that million substantially dividend. we income. or, I'd And the mispriced cash. reduce felt Board like And $XXX-odd knows the stock mean to everybody taxable of allowed dividend Our taxable was it price, retain inappropriate word our also

So dividend. that's the what happened with

Vikram Malhotra

follow I it. if I then And street parts Two Okay. if up, dig can to just retail. into

the but would give in had 'XX updates terminate. Swatch part there can until think First, is you 'XX. expire well you X big wrong, just termination Square wondering I'm that second or have I early are Any rights a then the key that and on option And they there? expirations renewal And not X 'XX. those 'XX, to I and Levi's I don't of color couple They if great. have I'm latest as think in on of in Times be leases believe

Steven Roth

would as clients, all well tenants. with we you as are expect, those are -- active in tenants the other those as We negotiations

when it the retain The rents be hopeful of are ago was to is made market all lower tenants. will in-place than We the But lower we those. rents. than the years

lower that at rents. assume retain the can but you tenants will So we

Vikram Malhotra

thought it terminate. they But Swatch sort you had because thought to and the year if elect notice to Levi's, time notice? can just would were I have they you Okay. of rolling like I like going a give give any is they that just to in --

Michael Franco

able to Vikram, to put on it. So finer just a point be

them fall And notice to as in So exercise stay finalized to, agreement have, lower Swatch did. for 'XX, we of alluded had rent. we their an Steve to at a they and

do, to know the exercised but has that didn't agreement So what termination, going finalized. at we recently the they been they're time

as with Steve up not So rent. they lower will comes stay, year. said, I a option. termination respect 'XX, believe to they it have And and this a well in Levi's, as

they did, And may Swatch do. hope, rent. And a see alluded, we'll them, albeit at exercise expectation what is Steve again, just so is that. that likelihood But as keep we'll they as our the lower

leases place. been sort other have of, we've The some tenants keep that those continued in those expire it, of I'll leases are which those shorter-term in call -- to XXXX,

at an one And that. beyond expiration think there's I that, the think continue active XXXX we'll Square. to that do now. middle discussion probably and year, I And in Times only happens that's of substantive right

Operator

The next is Green question from Street. with Burzinski Dylan

Dylan Burzinski

Just the curious overall of company. strategy on the

doing have past, stock. the you I possibly guys about mentioned think in a tracking

could So And on table? the in just that if happen still curious, so, we is that see XXXX?

Steven Roth

Yes, it's on still much the table. very

We are will set to be we not it. the the and ready until make actually not talk . which decision announce about timing,

Dylan Burzinski

ground reset. the And lease just back going Okay. then to

that the our when I'm $XX we just us think that District kind that, initial can at mentioned But think reset give I process might curious, you increased million was we that of an on had update thought that redevelopments today. might rent higher. you thought the that ground yields how saw be works? Penn I the less

the that see works. sort an process to kind curious just update of and So on of arbitration how

Steven Roth

determination it's with of value would is can't bit brokers interpretation -- is party brokers and unimproved unique the a bit brokers the of little basically little one that third Boy, and is each active then neutral. different. The be. experience This lease vacant as a and agree, ground plenty a involves the negotiating. what land If by a a of appointed well, years they

somewhat me, that of what and sell seller, willing So which now, for should you to land appraisal a interpret than buyer piece might is that cetera. a is an be, et different which I what willing process

think it's brokerage a we So process.

the way value year $XX was it is quite we bit set maybe actually, We So X.X that's sits. today that even think lower the the a land million, lower. the ago than of when it

these be the the to what done new the so value residual land. by -- and and what factor. most And of for is would fact analyses that's the determining The that return building are a

on a bearing or $X $XX we $XXX So more in what can lease on we foot get has value or that a no of if X $XX might PENN, land be. think the the

Operator

JPMorgan. is Paolone question from with next Anthony The

Anthony Paolone

a 'XX. FFO or whole higher that's Michael, versus in you through impact just and can of went maybe parts terms year? the on But the the number, retail NOI 'XX business the you of line lower in bottom help office whether this core and

Michael Franco

come fluid to And to outs. what performance print general, just some not to we're on Like It's which the here talked be just think some we on give ins, which you guidance. out. we tenants neutral. environment, to It's It this known it's have in in trying we've probably a predict. the roll renew, I like But will Overall, positives, known as we that's here. have year, we will box a say. trying depends guidance we some sit would We right? hard comparable me we some Overall, may today, as have about. Tony, exactly along. can't move-outs you're

Anthony Paolone

the is mean, seems credit in you where pretty Okay. Park. well people value that And of in XXX numbers the at crystallized there probably likely. then their and most you're second think to I getting I for question level what stock, it be a most had north on

So just to just thought about you wondering ability exit. the completely how

that worth in I saying versus that being you or think did otherwise? what how versus X-plus deal I year cut, the use so, well guess, you next capital you it think be staying another, years just with about could like

Steven Roth

first that to was deal, I fair of Well, in The of parties. would both think all, we well value. with quibble north pricing

will is square Square the of fact time. run, make the decision new, when financial do foot money be that's option and the invest XX% In X.X long-term make building to from own terms year and have to now decision strategy our a as or in project what we whether to of the X million that brand Tower or take to interesting either. a But duper have an we super the we'll it at Times to

Operator

from The next Nick Scotiabank. Yulico is question with

Nicholas Yulico

loan? where And then default this, the some if the since venture explain this does for that right now, there's wanted get Can lender touch it property? St. joint be? resolved? And guess, resolved, the And impact like looks from can't you just tell you of can does will some the retail, it's sort the what reason, walks earnings flow How just why Regis the cash the ultimately you could sweep. away the working get I us from you I how impact earnings refinance JV. in to just not the on had

Michael Franco

of Look, today, at the frankly, loan asset refinanceable quite peak We this market. year-end, the in maturity and at signed like not the is right, market. the leases assets many X

just we discussed relet those a we of and rent. lower at One terminated

nonrefinanceable. And talking before so We lands asset were lenders the happened. was Loan with the that default.

continue to If discussions And we're today. maturity. can't. and talk in loan the go lenders. to extend We the to will back restructure active asset them And we can't, to the we

towards it's Just sense we do, thoughtful and we're going makes and et the like the everything of to deal disciplined be worth groping that investing cetera, capital, for partnership. we're we with about the whether think asset, staying sort

benefit debt. the nonrecourse of But that's

the Probably walk away. I If happen? agreement, option think Do will you that not. have can't reach an we to

going is rate restructure get the because interest with never is case, that's the we're it's what going a commentary I end To The too. paid. supposed We're get either reset and deal to toss date, deal that I X.X% about that's at the know interest couple to up keys lender's play. interest, going going some we'll the is be will to paid. of But best in the rate it's not back and reports to of that in answer is answer the the state to there to or rate. think -- was a but default get

I state play. was today, I it if fact significant. earnings -- through FFO relative frankly, floating that went there's really it's fourth don't where, is where impact there's think flow don't know it's in I that's but the away the a to on, if much that's So the cash income, some rate it flowing that given quarter. the not based think of loan

Nicholas Yulico

about $X.X XXXX, billion got looks that like back going know Madison, Okay. XXX I little right I it. now. the in and asset bit. on a that. asset And There's this was Understood. debt it think Appreciate refinanced I mean, million of appraisal to on then talked a $XXX you there

worth the building if I $XXX so And saying is is guess, equity million. the basically, X, you're

XXXX decline that when would it was value be So about refinanced. a asset . since XX%

vacancy I'm guess kind and down, how as know you I occupancy But wrong being a you asset the of frame now value from you that about me talk Is of is, portfolio well. correct higher on now? decline retail what out pieces that have some structural please So of an level office wondering if I'm numbers. those But do would XXXX? lot and only where for are that more or indicative standpoint, rates the did I of right versus

Michael Franco

XXXX first refinance our a at outstanding in loan It We out Look, think, was X team, things. I you of execution in that Yes. did until pretty X XXXX. by pushing or all, referenced about frankly, X.X%.

noncash that continue I So that the impairment, done. we asset, we recognize have sit we the have on thing is the about As think important free most the time, we talk charge, this right? we to can work

before, done can't comment. where was of -- lender comments Secondly, sort a -- as in traded think that loan exact would asset when is the appraisal I XXXX time. back circumstances the was appraisal that have the was can't Steve's was made, to that the of I

time. done So it is then, we an appraisal since that have major had was reality tenant rents. changed And facts probably most at specific out. some move notably, a the There's the

retail, since varying So I and declined to then office generally, degree. have think,

a time, for talked what here accounting can't as that's value XXXX, we impairment all the the And particularly think Steve is that of much analysis, that's back ventures that's about, But and net of I that result. produce reflected nothing sit today. in over So the methodology, very says the at accounting-driven up. there. joint that as And end go

Operator

Ronald The next with Kamdem from Stanley. is Morgan question

Unknown Analyst

This Ronald Timmy Kamdem. for on is [ ]

-- the headwinds in Just you guys the year some laid the of remarks. prepared out pretty clearly next

think do 'XX Just today, that as in rents 'XX, Where a foot upside we PENN 'XX? you X is are and embedded. year-end the about some think $XX maybe of versus there

Glen Weiss

the rents XXs. XXs, off low high coming we're So in

out leases have are of in the piercing that tower We right XXX building. now this

forward. where of for and vacancy leases our feel believe as a you we going sign we will gives up go that expirations So rents for the in-place

Operator

is follow-up from Evercore -- Steve from Sakwa question with a next The ISI.

Steve Sakwa

Just On in? of Are going coming kind just off that some in we of 'XX. we float? Fed assume about that the maybe Should as tightening are put nears and those and to kind maturity should one caps Or the swaps swaps here new the end caps be follow-up, Michael. and going just you 'XX how to thinking to cycle? let or burning you're the of that of

Michael Franco

Yes.

'XX day, loan Steve. probably Some, those 'XX maturity. because we a with I of every mean, are some have -- wrestle again, about we

loan issue We to have on going the if to we're of 'XX, it need 'XX into swap determine those right? what there. in that mature a than no with, we roll a fixed is type of 'XX issue, So more obviously, rate refinance loan, which to

loans is the would that our those, think most now. the I'm I expectation right caps I we'll around somewhere -- see. roll So list we'll for down expire of looking and

would latter those the that over would of you X expect to the we roll tend years. basis, go we part year, months. an few of X that Those although the be next or annual a middle, out can't I expire So got couple

opportunities for continue out, And then look some on to those to the too. swaps, of turn we'll

are coming looking done curve and is the down. like the to point being to close the is Fed getting where You they're

do maturities before decision. with have to a a waiting we'll recently. the of bit so we we're we I finalize year that at make benefited year. going But of this out. on what terming of some we those well asset again, those more as And decision think on But expiries little of financing look And couple a to got and next we locking type that some in and

Operator

with And question next follow-up from the Vikram is a Malhotra Mizuho.

Vikram Malhotra

that and terms in rent the that referenced? these street the -- incorporate office Michael, known on does you retail of you headwinds, $X.XX just the outlined the lower move-outs

Michael Franco

I on mean, pros, The sales. data the in there's probably By think terms of It happens said, but some as pace on we'll see margin the gave And you Vikram, is think business performs. what cons. points on neutral, asset the can't I I of were rest we interest, leasing. we how depends only predict. I large, and

Vikram Malhotra

Okay. I then there are follow-up. those just And pieces. know moving other the

do rightsized pieces for these Or take you as slack the that have you your that 'XX, of have might you your But we don't moving taxable income of to view the So just if of way, dividend? current the outlined? revisit kind based basically on dividend. go some some -- you incorporated of

Steven Roth

decision. Board we're might happen And certainly The negative going not from dividend and a is a of point dividend speculate certainly the not to view. what to on

So that's a won't question that answer we can't answer now. and

Operator

time. for any at back would I are further this to questions no over the like Steven closing to There Roth turn conference remarks.

Steven Roth

Thank tightening everybody. you, cycle. interesting This Reserve of Federal middle a is an We're the in time.

a quibble a it his opening markets in is that call Thomas Owen fairly commercial with wouldn't that -- couple his I don't either days of estate way. But are want I we exciting real remarks think time. ago think soft, which makes I of to recession. a in said

this We will get through easily.

up, think world the better a and opportunities what We will lot see we be come on will other side. the

at the see we'll next you quarter. today, Happy and Valentine

Operator

gentlemen, today's participation. concludes Ladies conference. you for your and this Thank

disconnect. now may You

Alexander's (ALX) 14 Feb 232022 Q4 Earnings call transcript