Is Alexander’s High-Yield Dividend Sustainable?

Alexander's, the real estate investment trust, finds itself at a critical juncture following its latest dividend distribution. While the stock offers investors an enticing 8.5% yield, recent quarterly results reveal underlying financial strain that raises questions about long-term viability.

The third-quarter report released November 3rd highlights a significant disparity between the company's operational performance and its shareholder payouts. Alexander's reported Funds From Operations (FFO) of $2.91 per share, yet distributed a quarterly dividend of $4.50 per share. This payout exceeds the REIT's operational cash flow by more than 50%. The situation appears even more concerning when comparing the dividend to the GAAP earnings of just $1.16 per share.

Key financial metrics from Q3 2025:
* Quarterly dividend per share: $4.50
* FFO per share: $2.91
* GAAP earnings per share: $1.16
* Revenue decline: 4.04% to $53.42 million

This consistent pattern of distributing more than the company generates operationally naturally leads to questions about funding sources.

Should investors sell immediately? Or is it worth buying Alexander's?

Institutional Confidence: Support or Blind Spot?

Despite these concerning fundamentals, major institutional investors maintain substantial positions in Alexander's. Goldman Sachs controls 355,152 shares valued at approximately $75.3 million. Other significant stakeholders include Mirae Asset Global Investments and Nuveen Asset Management.

The REIT continues to generate revenue, with the past twelve months bringing in $215.84 million. However, the combination of slight revenue contraction and excessively high distributions creates fundamental concerns that institutional ownership alone cannot resolve.

The February 2026 Crossroads

All attention now turns to the next quarterly report scheduled for February 2026. The critical question remains whether Alexander's can boost rental income across its retail and office property segments. If not, the company may face pressure to reconsider its capital allocation strategy.

From a technical perspective, the stock currently trades around $212, with support at $192 and resistance at $230. While these levels provide context, the true battle for Alexander's future will be fought in its financial statements rather than on price charts. The central issue for investors is whether that attractive 8.5% yield represents sustainable income or a dividend policy approaching its expiration date.