<PAGE>   1
                                                        EXHIBIT INDEX ON PAGE 14


                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


[XX]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the quarterly period ended:         SEPTEMBER 30, 1997

                                       or

[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the transition period from                     to


Commission File Number:   1-6064

                                ALEXANDER'S, INC.
             (Exact name of registrant as specified in its charter)


               DELAWARE                                  51-0100517
(State or other jurisdiction of incorporation          (I.R.S. Employer
               or organization)                        Identification Number)


PARK 80 WEST, PLAZA II, SADDLE BROOK, NEW JERSEY           07663
    (Address of principal executive offices)             (Zip Code)


                                 (201)587-8541
              (Registrant's telephone number, including area code)


              (Former name, former address and former fiscal year,
                         if changed since last report)

               Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
                                                    [X] Yes    [ ] No

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

               Indicate by check mark whether the registrant has filed all
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
                                                  [ ] Yes    [ ] No

               As of October 31, 1997 there were 5,000,850 common shares
outstanding.



                                  Page 1 of 15
<PAGE>   2
                                ALEXANDER'S, INC.

                                      INDEX



<TABLE>
<CAPTION>
                                                                                                     Page Number
                                                                                                     -----------

<S>                                                                                                  <C>
PART I.          FINANCIAL INFORMATION:

        Item 1.    Financial Statements:

                   Consolidated Balance Sheets as of September 30, 1997
                   and December 31, 1996...........................................................      3

                   Consolidated Statements of Operations for the Three and Nine Months
                   Ended September 30, 1997 and September 30, 1996.................................      4

                   Consolidated Statements of Cash Flows for the Nine Months
                   Ended September 30, 1997 and September 30, 1996.................................      5

                   Notes to Consolidated Financial Statements......................................      6

        Item 2.    Management's Discussion and Analysis of Financial
                   Condition and Results of Operations.............................................      8


PART II.           OTHER INFORMATION:


        Item 6.    Exhibits and Reports on Form 8-K................................................     12


Signatures         ................................................................................     13

Exhibit Index      ................................................................................     14

Exhibit 27         ................................................................................     18
</TABLE>





                                  Page 2 of 15
<PAGE>   3
PART I.  FINANCIAL INFORMATION


                                ALEXANDER'S, INC.
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                   (AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                                       SEPTEMBER 30,     DECEMBER 31,
                                                                            1997             1996 
                                                                       -------------     ------------
  ASSETS:
<S>                                                                    <C>               <C>      
  Real estate, at cost:
      Land                                                               $  45,999        $  45,999
      Buildings, leaseholds and Improvements
          (including $3,338 and $242 of
          construction in progress at
          September 30, 1997 and
          December 31, 1996)                                               117,618          114,280
      Capitalized expenses and predevelopment costs                         60,474           47,488
                                                                         ---------        ---------
              Total                                                        224,091          207,767
      Less accumulated depreciation and amortization                       (40,681)         (39,375)
                                                                         ---------        ---------
                                                                           183,410          168,392
      Investment in unconsolidated joint venture                            11,131           12,613
                                                                         ---------        ---------
      Real estate, net                                                     194,541          181,005

  Cash and cash equivalents                                                  5,421            5,480
  Restricted cash                                                            4,135            5,620
  Accounts receivable, net of allowance for
      doubtful accounts of $147 in each period                                 666              201
  Receivable arising from the straight-lining
      of rents, net                                                          7,008            5,984
  Deferred lease and other expenses                                         12,152            9,966
  Deferred debt expense                                                      1,215            2,364
  Other assets                                                               3,277              965
                                                                         ---------        ---------


  TOTAL ASSETS                                                           $ 228,415        $ 211,585
                                                                         =========        =========
</TABLE>



<TABLE>
<CAPTION>
                                                                        SEPTEMBER 30,     DECEMBER 31,
                                                                             1997             1996
                                                                        -------------     -----------


<S>                                                                     <C>               <C>
LIABILITIES AND DEFICIENCY IN NET ASSETS:
Liabilities:
Debt                                                                     $ 208,222        $ 192,347
Amounts due to Vornado Realty Trust and
its affiliate                                                                7,033            6,207
Accounts payable and accrued liabilities                                     4,852            4,246
Other liabilities from discontinued operations                               2,305            2,622
Minority interest                                                              600              600
                                                                         ---------        ---------

TOTAL LIABILITIES                                                          223,012          206,022
                                                                         ---------        ---------


Commitments and contingencies

Stockholders' Equity:

Common stock; $1.00 par value per share;
  authorized, 10,000,000 shares;
  issued 5,173,450                                                           5,174            5,174
Additional capital                                                          24,843           24,843
Deficit                                                                    (23,654)         (23,494)
                                                                         ---------        ---------
                                                                             6,363            6,523
Less treasury shares, 172,600 shares at cost                                  (960)            (960)
                                                                         ---------        ---------
Total stockholders' equity                                                   5,403            5,563
                                                                         ---------        ---------




TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                               $ 228,415        $ 211,585
                                                                         =========        =========
</TABLE>



                 See notes to consolidated financial statements.
<PAGE>   4
                                ALEXANDER'S, INC.
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share amounts)

<TABLE>
<CAPTION>
                                                       FOR THE THREE MONTHS ENDED            FOR THE NINE MONTHS ENDED
                                                    SEPTEMBER 30,     SEPTEMBER 30,       SEPTEMBER 30,     SEPTEMBER 30,
                                                        1997               1996               1997               1996
                                                    -----------        -----------        -----------        -----------
<S>                                                 <C>                <C>                <C>                <C>        
Revenues:
 Property rentals                                   $     4,317        $     4,315        $    13,167        $    11,768
 Expense reimbursements                                     419                398              1,713              1,365
 Equity in income of unconsolidated
   joint venture                                          1,280                666              3,895              2,616
                                                    -----------        -----------        -----------        -----------
Total revenues                                            6,016              5,379             18,775             15,749
                                                    -----------        -----------        -----------        -----------

Expenses:
 Operating (including management fee
   to Vornado of $210 and $630 each for
   the three and nine months ended
   September 30, 1997 and 1996, respectively)             1,501              1,481              5,378              3,984
 General and administrative (including
   management fee to Vornado of $540
   and $1,620 each for the three and
   nine months ended September 30, 1997
   and 1996, respectively)                                1,026                961              3,039              3,333
 Depreciation and amortization                              588                549              1,741              1,372
                                                    -----------        -----------        -----------        -----------
Total expenses                                            3,115              2,991             10,158              8,689
                                                    -----------        -----------        -----------        -----------

Operating income                                          2,901              2,388              8,617              7,060

Interest and debt expense (including
  interest on loan from Vornado)                         (3,250)            (3,657)            (9,855)           (10,393)
Interest and other income, net                              214                639              1,078              2,294
                                                    -----------        -----------        -----------        -----------

Loss from continuing operations                            (135)              (630)              (160)            (1,039)
Income from discontinued operations                          --                 --                 --             11,602
                                                    -----------        -----------        -----------        -----------

Net (loss) income                                   $      (135)       $      (630)       $      (160)       $    10,563
                                                    ===========        ===========        ===========        ===========

Net (loss) income per share:
 Continuing operations                              $      (.03)       $      (.13)       $      (.03)       $      (.21)
 Discontinued operations                                     --                 --                 --               2.32
                                                    -----------        -----------        -----------        -----------
 Net (loss) income                                  $      (.03)       $       (13)       $      (.03)       $      2.11
                                                    ===========        ===========        ===========        ===========

Weighted average number of common
  shares outstanding during period                    5,000,850          5,000,850          5,000,850          5,000,850
</TABLE>





                 See notes to consolidated financial statements.


                                  Page 4 of 15
<PAGE>   5
                                ALEXANDER'S, INC.
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)
<TABLE>
<CAPTION>
                                                                           FOR THE NINE MONTHS ENDED
                                                                       SEPTEMBER 30,    SEPTEMBER 30,
                                                                            1997            1996
                                                                       -------------    ------------
<S>                                                                    <C>              <C>      
CASH FLOWS FROM OPERATING ACTIVITIES:
    Loss from continuing operations                                      $   (160)       $ (1,039)
      Adjustments to reconcile loss from continuing
          operations to net cash (used in) provided by
          continuing operating activities:
             Depreciation and amortization
                 (including debt issuance costs)                            3,089           2,863
             Straight-lining of rental income                              (1,024)         (1,276)
             Equity in income of unconsolidated joint
                 venture (net of distributions of
                 $5,376 and $4,262 in 1997 and 1996)                        1,481           1,646
      Change in assets and liabilities:
             Accounts receivable                                             (465)            (48)
             Amounts due to Vornado Realty Trust and its affiliate         (1,787)         (1,585)
             Liability for postretirement healthcare benefits                  --          (1,169)
             Accounts payable and accrued liabilities                         606             742
             Other                                                         (2,320)          1,620
                                                                         --------        --------

Net cash (used in) provided by operating activities                          (580)          1,754
Net cash (used in) provided by discontinued operations                       (317)          8,683
                                                                         --------        --------
Net cash (used in) provided by operating activities                          (897)         10,437
                                                                         --------        --------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Additions to real estate                                              (16,323)        (28,183)
    Cash restricted for construction financing                                928           2,126
    Cash restricted for operating liabilities                                 557           8,402
                                                                         --------        --------
Net cash used in investing activities                                     (14,838)        (17,655)
                                                                         --------        --------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Issuance of debt                                                       16,667          10,527
    Debt repayments                                                          (792)           (811)
    Deferred debt expense                                                    (199)             --
                                                                         --------        --------
Net cash provided by financing activities                                  15,676           9,716
                                                                         --------        --------

Net (decrease) increase in cash and cash equivalents                          (59)          2,498
Cash and cash equivalents at beginning of period                            5,480           8,471
                                                                         --------        --------

Cash and cash equivalents at end of period                               $  5,421        $ 10,969
                                                                         ========        ========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
    Cash payments for interest (including capitalized
      interest of $6,982 and $6,452)                                     $ 15,489        $ 15,354
                                                                         ========        ========
</TABLE>


                 See notes to consolidated financial statements.


                                  Page 5 of 15
<PAGE>   6
                                ALEXANDER'S, INC.
                                AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



1.  CONSOLIDATED FINANCIAL STATEMENTS

      The consolidated balance sheet as of September 30, 1997, the consolidated
    statements of operations for the three and nine months ended September 30,
    1997 and September 30, 1996, and the consolidated statements of cash flows
    for the nine months ended September 30, 1997 and September 30, 1996 are
    unaudited. In the opinion of management, all adjustments (which include only
    normal recurring adjustments) necessary to present fairly the financial
    position, results of operations and changes in cash flows have been made.

      Certain information and footnote disclosures normally included in
    financial statements prepared in accordance with generally accepted
    accounting principles have been condensed or omitted. These condensed
    consolidated financial statements should be read in conjunction with the
    financial statements and notes thereto included in the Company's 1996 Annual
    Report to Shareholders. The results of operations for the three and nine
    months ended September 30, 1997 are not necessarily indicative of the
    operating results for the full year.


2.  RELATED PARTY TRANSACTIONS

      Under a three-year management and development agreement (the "Management
    Agreement") with Vornado Realty Trust ("Vornado") which commenced March 2,
    1995, Alexander's incurred fees of $937,000 in each of the three months
    ended September 30, 1997 and 1996 and $2,812,000 and $4,405,000 in the nine
    months ended September 30, 1997 and 1996. The fees for the nine months ended
    September 30, 1996, included $1,443,000 related to the completion of the
    redevelopment of the Rego Park I property in the quarter ended March 31,
    1996.

      In addition to the fee payable pursuant to the Management Agreement, the
    Company pays Vornado a leasing fee under the terms of its leasing agreement.
    Alexander's incurred leasing fees of $625,000 in each of the three months
    ended September 30, 1997 and 1996 and $1,875,000 in each of the nine months
    ended September 30, 1997 and 1996. Vornado is due $6,408,000 at September
    30, 1997 under such agreement, subject to the payment of rents by tenants.
    The lease which Vornado had previously negotiated with Caldor on behalf of
    the Company for its Fordham Road property was rejected in June 1997 in
    Caldor's bankruptcy proceedings, resulting in $1,254,000 of previously
    recorded leasing fees payable and $1,507,000 of deferred lease expense being
    reversed in the quarter ended June 30, 1997.

      In March 1995, the Company borrowed $45,000,000 from Vornado, the
    subordinated tranche of a $75,000,000 secured financing. The loan has a
    three-year term and presently bears interest at 15.60% (previously bore
    interest at 16.43% through March 1997). The Company incurred interest on its
    loan from Vornado of $1,794,000 and $1,889,000 in the three months ended
    September 30, 1997 and 1996, of which $1,317,000 and $1,045,000 were
    capitalized. Interest on the loan was $5,420,000 and $5,627,000 in the nine
    months ended September 30, 1997 and 1996, of which $3,796,000 and $2,882,000
    were capitalized.


                                  Page 6 of 15
<PAGE>   7
                                ALEXANDER'S, INC.
                                AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



3.  CONTINGENCIES

      Paramus Property

      The Company owns 39.3 acres of land, including its former store building,
    located in Paramus, New Jersey. Approximately 9 acres located on the
    property's periphery are subject to condemnation by the State of New Jersey.
    Alexander's and the New Jersey Department of Transportation ("DOT") have
    entered into an agreement, pursuant to which the DOT will pay Alexander's
    $14,700,000 and convey an adjacent parcel of land to it in exchange for the
    9 acres. Further, the Company will be granted an access permit which will
    allow it to develop up to approximately 600,000 square feet on the remaining
    acreage. The development of the 600,000 square feet is subject to municipal
    approvals. During the fourth quarter ended December 31, 1997, the Company
    expects to record a gain on the involuntary conversion of approximately
    $14,200,000 and a charge of up to approximately $5,400,000 to write-off the
    book value of the building or a portion thereof which is to be razed.

      Environmental Matters

      The results of a 1993 Phase I Environmental Study at the Kings Plaza
    Shopping Center property ("Center") - a 50% owned joint venture - showed
    that certain adjacent properties owned by third parties have experienced
    contamination by petroleum hydrocarbons. The Center commissioned a Phase II
    Environmental Study and Contamination Assessment/Site Investigation in June
    1997 to evaluate and delineate environmental conditions. These additional
    reports indicate that the Center is required to engage in remediation
    activities at the property due to the presence of petroleum and other
    hydrocarbons. Management believes that the remediation will not have a
    material adverse effect on the Company's financial condition and results of
    operations.

      The Company is aware of the presence of asbestos-containing materials at
    several of its properties and believes that it manages such asbestos in
    accordance with applicable laws. The Company plans to abate or remove such
    asbestos as appropriate.

      Caldor Corporation ("Caldor")

      Property rentals from Caldor, which filed for relief under Chapter 11 of
    the United States Bankruptcy Code in September 1995, represented
    approximately 25% and 36% of the Company's consolidated revenues for the
    nine months ended September 30, 1997 and the year ended December 31, 1996.
    Caldor rejected its Fordham Road lease effective June 6, 1997 and
    accordingly, no longer pays rent; Alexander's has filed a claim for damages
    based on such rejection. The annual base rental under this lease was
    $3,537,000 (approximately 15% of the Company's consolidated revenues). The
    rejection of the Fordham Road lease and the loss of property rental
    payments, if any, under the Caldor lease for the Flushing property, could
    have a material adverse affect on the Company's financial condition and
    results of operations.


                                  Page 7 of 15
<PAGE>   8
                                ALEXANDER'S, INC.
                                AND SUBSIDIARIES

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

    Certain statements made in this report may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Reform Act"). 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, the
following: general economic and business conditions, which will, among other
things, affect demand for retail space or retail goods, availability and
creditworthiness of prospective tenants, lease rents and the terms and
availability of financing; adverse changes in the real estate markets including,
among other things, competition with other companies and technology; risks of
real estate development and acquisition; governmental actions and initiatives;
and environmental/safety requirements.

RESULTS OF OPERATIONS

    The Company's revenues, which consist of property rentals, tenant expense
reimbursements and equity in income of unconsolidated joint venture were
$6,016,000 in the quarter ended September 30, 1997, compared to $5,379,000 in
the prior year's quarter, an increase of $637,000. Revenues were $18,775,000 for
the nine months ended September 30, 1997, compared to $15,749,000 for the prior
year's nine months, an increase of $3,026,000.

    Property rentals were $4,317,000 in the quarter ended September 30, 1997
compared to $4,315,000 in the prior year's quarter, an increase of $2,000. This
increase resulted primarily from rent from leases commencing during the quarter
ended June 30, 1997 with Circuit City, Bed Bath & Beyond and Old Navy for the
remaining 112,000 square feet at the Company's Rego Park I property, offset by
the loss of rent resulting from Caldor's rejection of its Fordham Road lease -
see Liquidity and Capital Resources. Property rentals for the nine months ended
September 30, 1997 were $13,167,000 compared to $11,768,000 for the prior year's
nine months, an increase of $1,399,000. In addition to the items noted above,
the increase in the nine months reflected nine months of paid parking and rents
for 234,000 square feet of the Company's Rego Park I property, compared to seven
months in 1996.

    Tenant expense reimbursements were $419,000 in the quarter ended September
30, 1997, compared to $398,000 in the prior year's quarter, an increase of
$21,000. Tenant expense reimbursements for the nine months ended September 30,
1997 were $1,713,000 compared to $1,365,000 for the prior year's nine months, an
increase of $348,000. These increases reflect a corresponding increase in
operating expenses passed through to tenants as a result of nine months of
operations at the Company's Rego Park I property this year, compared to seven
months in 1996.

    Equity in income of unconsolidated joint venture ("the Kings Plaza Shopping
Center") was $1,280,000 in the quarter ended September 30, 1997, compared to
$666,000 in the prior year's quarter, an increase of $614,000. Equity in income
of the Kings Plaza Shopping Center was $3,895,000 for the nine months ended
September 30, 1997, compared to $2,616,000 in the prior year's nine months, an
increase of $1,279,000. These increases resulted primarily from higher rents.

    Operating expenses were $1,501,000 in the quarter ended September 30, 1997,
compared to $1,481,000 in the prior year's quarter, an increase of $20,000.
Operating expenses were $5,378,000 in the nine months ended September 30, 1997,
compared to $3,984,000 in the prior year's nine months, an increase of
$1,394,000. These increases resulted primarily from nine months of operations at
the Rego Park I property this year compared to seven months in 1996. The
increase for the third quarter of 1997 was partially offset by a charge to bad
debt expense in the prior year's quarter.


                                  Page 8 of 15
<PAGE>   9
                                ALEXANDER'S, INC.
                                AND SUBSIDIARIES

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

    General and administrative expenses in the quarter ended September 30, 1997,
were substantially unchanged from the prior year's quarter. General and
administrative expenses were $3,039,000 in the nine months ended September 30,
1997 compared to $3,333,000 in the prior year's nine months, a decrease of
$294,000. This decrease resulted primarily from lower professional fees.

    Interest and debt expense was $3,250,000 for the quarter ended September 30,
1997 compared to $3,657,000 for the prior year's quarter, a decrease of
$407,000. Interest and debt expense was $9,855,000 in the nine months ended
September 30, 1997 compared to $10,393,000 for the prior year's nine months, a
decrease of $538,000. These decreases resulted primarily from more interest
expense being capitalized on redevelopment projects in 1997, offset by interest
on the Rego Park I debt being charged to income for nine months this year versus
seven months last year.

    Interest and other income, net was $214,000 in the quarter ended September
30, 1997, compared to $639,000 in the prior year's quarter, a decrease of
$425,000. Interest and other income, net was $1,078,000 in the nine months ended
September 30, 1997, compared to $2,294,000 in the prior year's nine months, a
decrease of $1,216,000. These decreases resulted primarily from the amortization
of deferred gains in connection with the Company's postretirement healthcare
benefits and refunds in the prior year.

    Discontinued Operations
    The Company recorded income from discontinued operations of $11,602,000 in
the quarter ended June 30, 1996 comprised of (i) $9,602,000 from the settlement
of a tax certiorari proceeding against the County of Nassau for overpayment of
taxes on its former Valley Stream Store property and (ii) $2,000,000 from the
reduction of "Other liabilities from discontinued operations".

LIQUIDITY AND CAPITAL RESOURCES

    Alexander's current operating properties (five of its nine properties) do
not generate sufficient cash flow to pay all of its expenses. The Company's four
non-operating properties (Lexington Avenue, Paramus, the Kings Plaza Store
(which became operational in October 1997) and Rego Park II) are in various
stages of redevelopment. As rents commence from a portion of the redevelopment
properties, the Company expects that cash flow will become positive.

    The Company estimates that its capital expenditure requirements for
redevelopment projects will include: (i) approximately $350,000 to complete the
Rego Park I project, (ii) the redevelopment of the Paramus property at a cost of
approximately $60,000,000 to $70,000,000, (iii) the redevelopment of the Kings
Plaza Store property at a cost of approximately $2,000,000 and (iv) improvements
to the Kings Plaza Shopping Center at a cost of approximately $15,000,000.
Further, the Company is evaluating redevelopment plans for the Lexington Avenue
site, which may involve razing the existing buildings (in which case, the
carrying cost of approximately $15,000,000 would be written-off) and developing
a large multi-use building requiring capital expenditures in excess of
$300,000,000.  While the Company anticipates that financing will be available
after tenants have been obtained for these redevelopment projects, there can be
no assurance that such financing will be obtained or if obtained, that such
financings will be on terms that are acceptable to the Company. In addition, it
is uncertain as to when these projects will commence.


                                  Page 9 of 15
<PAGE>   10
                                ALEXANDER'S, INC.
                                AND SUBSIDIARIES

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


    Property rentals from Caldor, which filed for relief under Chapter 11 of the
United States Bankruptcy Code in September 1995, represented approximately 25%
and 36% of the Company's consolidated revenues for the nine months ended
September 30, 1997 and the year ended December 31, 1996. Caldor rejected its
Fordham Road lease effective June 6, 1997 and accordingly, no longer pays rent;
Alexander's has filed a claim for damages based on such rejection. The annual
base rental revenue under this lease was $3,537,000 (approximately 15% of the
Company's consolidated revenues). The rejection of the Fordham Road lease and
the loss of property rental payments, if any, under the Caldor lease for the
Flushing Property, could have a material adverse effect on the Company's
financial condition and results of operations. In addition, Caldor failed to
meet certain financial tests required under the Company's Fordham Road mortgage.
As a result, the Company was required to remit the net cash flow from the
Fordham Road Property into an account of the lender as additional payments under
the loan. The amount remitted to the lender for the nine months ended September
30, 1997 was $407,000.

    The Company's leases with Circuit City, Bed Bath & Beyond and Old Navy for
the remaining 112,000 square feet at its Rego Park I property commenced during
the second quarter of 1997. In addition, the Company's lease with Sears for
289,000 square feet at its Kings Plaza Store property for use as a full-line
department store commenced in October 1997.

    In March 1997, the Company extended its Rego Park I construction loan for
one year maturing on March 30, 1998. As of September 30, 1997, $75,000,000 was
funded under such construction loan (approximately $16,667,000 was borrowed in
the nine months ended September 30, 1997). The loan bears interest at LIBOR plus
1.00% (6.66% at September 30, 1997). The Company has also agreed with the
construction lender to refinance the existing loan through the issuance of 
rated commercial mortgage backed securities.

    The Company estimates that the fair market values of its assets are
substantially in excess of their historical cost and that there is additional
borrowing capacity. Alexander's continues to evaluate its needs for capital
which may be raised through (a) property specific or corporate borrowing, (b)
the sale of securities and (c) asset sales.

    Although there can be no assurance, the Company believes that these cash
sources will be adequate to fund cash requirements until its operations generate
adequate cash flow.

    CASH FLOWS

    Nine Months Ended September 30, 1997
    Cash used in operating activities of $580,000 was comprised of a net loss of
$160,000 and the net change in operating assets and liabilities of $3,966,000,
partially offset by the net change in non-cash items of $3,546,000. The
adjustments for non-cash items are comprised of (i) depreciation and
amortization of $3,089,000 and (ii) equity in income of unconsolidated joint
venture of $1,481,000, offset by the effect of straight-lining of rental income
of $1,024,000.

    Net cash used in investing activities of $14,838,000 was comprised of
capital expenditures of $16,323,000, offset by the release of 1,485,000 of
restricted cash.


                                  Page 10 of 15
<PAGE>   11
                                ALEXANDER'S, INC.
                                AND SUBSIDIARIES

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS



    Net cash provided by financing activities of $15,676,000 was comprised of
borrowings under the Rego Park I construction loan of $16,468,000 (net of debt
issuance cost), offset by repayments of debt of $792,000.

    Nine Months Ended September 30, 1996

    Cash provided by operating activities of $10,437,000 was comprised of (i)
net cash provided by discontinued operations of $8,683,000 (proceeds from
settlement of tax certiorari proceedings, net of payment of allowed general
unsecured claims) and (ii) $2,194,000 from results of operations (net loss from
continuing operations of $1,039,000 offset by non-cash items of $3,233,000),
offset by (iii) a net change in operating assets and liabilities of $440,000.

    Net cash used in investing activities of $17,655,000 was comprised of
capital expenditures of $28,183,000, offset by the release of cash restricted
for operating liabilities of $10,528,000.

    Net cash provided by financing activities of $9,716,000 was comprised of
proceeds from the issuance of debt of $10,527,000, offset by repayments of debt
of $811,000.

RECENTLY ISSUED ACCOUNTING STANDARD

    In February 1997, the Financial Accounting Standards Board adopted Statement
No. 128 "Earnings Per Share". The statement is effective for fiscal years ending
after December 15, 1997. The Company believes that this pronouncement will not
have a material effect on its net income (loss) per share.










                                  Page 11 of 15
<PAGE>   12
                                ALEXANDER'S, INC.




  PART II.    OTHER INFORMATION



     ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K.

           (a)  Exhibits:  The following exhibits are filed with this Quarterly 
                Report on Form 10-Q.

                27  Financial Data Schedule


           (b)  Reports on Form 8-K

                None












                                  Page 12 of 15
<PAGE>   13
                                ALEXANDER'S, INC.


                                   SIGNATURES





              Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.




                                                      ALEXANDER'S, INC.
                                                ----------------------------
                                                         (Registrant)




Date:  November 6, 1997                               /s/ Joseph Macnow
                                                ----------------------------
                                                        JOSEPH MACNOW
                                               Vice President - Chief Financial
                                            Officer and Chief Accounting Officer
 


                                  Page 13 of 15
<PAGE>   14
                                ALEXANDER'S, INC.

                                  EXHIBIT INDEX


                                                               PAGE NUMBER IN
                                                                  SEQUENTIAL
    EXHIBIT NO.                                                   NUMBERING
    -----------                                                --------------





       27           Financial Data Schedule                          15







                                  Page 14 of 15