##### Table of Contents



EXHIBIT INDEX ON PAGE 17

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

|       |  |                                                                                          | 
|------ |  | ---------------------------------------------------------------------------------------- | 
|(XBox) |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934

|                                |  |               | 
|------------------------------- |  | ------------- | 
|For the quarterly period ended: |  | June 30, 2002
|                                | 

or

|      |  |                                                                                           | 
|----- |  | ----------------------------------------------------------------------------------------- | 
|(Box) |  | 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
or organization) |  | (I.R.S. Employer
Identification Number)
|                                                              
|                                                              
|                                                              
|                                                              
|                                                               |  |                                        
|                                                              
|                                                              
|                                                              
|                                                              
|888 Seventh Avenue, New York, New York                         |  | 10019                                  
|                                                              
|(Address of principal executive offices)                       |  | (Zip Code)                             

(212) 894-7000

(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.

(Xbox) Yes     (Box) No

As of August 1, 2002 there were 5,000,850 common shares outstanding.





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TABLE OF CONTENTS



|                                                   |                                                                                               |                                            |  |  |  |  |  | 
|-------------------------------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------ |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION                     
|                                                   | Item 1. Financial Statements                                                                 
|                                                   |                                                                                               | CONSOLIDATED BALANCE SHEETS               
|                                                   |                                                                                               | CONSOLIDATED STATEMENTS OF OPERATIONS     
|                                                   |                                                                                               | CONSOLIDATED STATEMENTS OF CASH FLOWS     
|                                                   |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|                                                   | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                                                   | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|PART II. OTHER INFORMATION                        
|                                                   | Item 1. Legal Proceedings                                                                    
|                                                   | Item 4. Submission of Matters to a Vote of Security Holders                                  
|                                                   | Item 5. Other Information                                                                    
|                                                   | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                                        
|EXHIBIT INDEX                                     
|LLC OPERATING AGREEMENT OF 731 RESIDENTIAL        
|LLC OPERATING AGREEMENT OF 731 COMMERCIAL         
|AMENDED AND RESTATED CREDIT AGREEMENT             
|CREDIT AGREEMENT BETWEEN ALEXANDER'S AND VORNADO  
|AMENDED CREDIT AGREEMENT WITH VORNADO             
|CREDIT AGREEMENT WITH VORNADO EVIDENCING A LOAN   
|BUILDING LOAN AGREEMENT                           
|PROJECT LOAN AGREEMENT                            
|SUPPLEMENTAL LOAN AGREEMENT                       
|CONSOLIDATED, AMENDED & RESTATED BUILDING LOAN    
|CONSOLIDATED AMENDED & RESTATED BUILDING LOAN NOTE
|GUARANTY OF COMPLETION                            
|GUARANTY OF CARRY OBLIGATIONS                     
|ENVIRONMENTAL INDEMNITY AGREEMENT                 
|REIMBURSTMENT AGREEMENT                           
|AMENDMENT TO REAL ESTATE RETENTION AGREEMENT      
|59TH. STREET REAL ESTATE RETENTION AGREEMENT      
|AMENDED AND RESTATED MANAGEMENT & DEVELOMENT AGMT.
|59TH. STREET MANAGEMENT & DEVELOPMENT AGREEMENT   
|KINGS PLAZA MANAGEMENT AGREEMENT                  
|FIRST AMENDMENT TO LEASE                          



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##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES
INDEX

|              |         |                        |                                                                                       |                                                                                                          |    |             |   | 
|------------- | ------- | ---------------------- | ------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | -- | ----------- | - | 
|              |         |                        |                                                                                       |                                                                                                          |    | Page Number
|              |         |                        |                                                                                       |                                                                                                          |    |            
|PART I.       |         | Financial Information: |                                                                                       |                                                                                                          |    |            
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              | Item 1. |                        | Financial Statements:                                                                 |                                                                                                          |    |             |  
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              |         |                        |                                                                                       | Consolidated Balance Sheets as of
June 30, 2002 and December 31, 2001                                    |    |             | 3 | 
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              |         |                        |                                                                                       | Consolidated Statements of Operations for the
Three and Six Months Ended June 30, 2002 and June 30, 2001 |    |             | 4 | 
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              |         |                        |                                                                                       | Consolidated Statements of Cash Flows for the
Six Months Ended June 30, 2002 and June 30, 2001           |    |             | 5 | 
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              |         |                        |                                                                                       | Notes to Consolidated Financial Statements                                                               |    |             | 6 | 
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              | Item 2. |                        | Managements Discussion and Analysis of
Financial Condition and Results of Operations |                                                                                                          |    | 10          |  
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              | Item 3. |                        | Quantitative and Qualitative Disclosures about Market Risk                            |                                                                                                          |    | 14          |  
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|PART II.      |         | Other Information:     |                                                                                       |                                                                                                          |    |            
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              | Item 1. |                        | Legal Proceedings                                                                     |                                                                                                          |    | 15          |  
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              | Item 4. |                        | Submission of Matters to a Vote of Security Holders                                   |                                                                                                          |    | 15          |  
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              | Item 5. |                        | Other Information                                                                     |                                                                                                          |    | 15          |  
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|              | Item 6. |                        | Exhibits and Reports on Form 8-K                                                      |                                                                                                          |    | 15          |  
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|Signatures    |         |                        |                                                                                       |                                                                                                          | 16 |            
|             
|             
|             
|             
|              |         |                       
|             
|             
|             
|             
|Exhibit Index |         |                        |                                                                                       |                                                                                                          | 17 |            

2



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##### Table of Contents












PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

ALEXANDERS, INC.
AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(amounts in thousands except share amounts)

|                                                                                                 |                                                                      |       |         |          |         |              |         |         |         | 
|------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------- | ----- | ------- | -------- | ------- | ------------ | ------- | ------- | ------- | 
|                                                                                                 |                                                                      |       |         | June 30, |         | December 31,
|                                                                                                 |                                                                      |       |         | 2002     |         | 2001        
|                                                                                                 |                                                                      |       |         |          |         |             
|ASSETS:                                                                                          |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Real estate, at cost:                                                                            |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 | Land                                                                 |       | $       | 90,768   |         |              | $       | 90,768  |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 | Buildings, leaseholds and leasehold improvements                     |       |         | 168,648  |         |              |         | 168,388 |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 | Capitalized expenses, development costs and construction in progress |       |         | 218,476  |         |              |         | 168,736 |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                 |                                                                      | Total |         |          | 477,892 |              |         |         | 427,892 | 
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 | Less accumulated depreciation and amortization                       |       |         | (53,669  | )       |              |         | (51,463 | )      
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                 | Real estate, net                                                     |       |         | 424,223  |         |              |         | 376,429 |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Assets held for sale                                                                             |                                                                      |       | 3,879   |          |         |              | 3,930   |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Cash and cash equivalents                                                                        |                                                                      |       | 99,443  |          |         |              | 135,258 |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Restricted cash                                                                                  |                                                                      |       | 6,842   |          |         |              | 6,596   |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Accounts receivable, net of allowance for doubtful accounts
of $335 in 2002 and $929 in 2001     |                                                                      |       | 1,403   |          |         |              | 1,534   |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Receivable arising from the straight-lining of rents, net                                        |                                                                      |       | 19,757  |          |         |              | 18,233  |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Deferred lease and other property costs                                                          |                                                                      |       | 28,660  |          |         |              | 29,371  |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Deferred debt expense                                                                            |                                                                      |       | 5,539   |          |         |              | 5,840   |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Other assets                                                                                     |                                                                      |       | 8,329   |          |         |              | 6,148   |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|TOTAL ASSETS                                                                                     |                                                                      | $     | 598,075 |          |         | $            | 583,339 |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|LIABILITIES AND STOCKHOLDERS EQUITY:                                                            |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Debt (including $119,000 due to Vornado Realty Trust (Vornado)
in 2002 and 2001)                 |                                                                      | $     | 514,570 |          |         | $            | 515,831 |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Amounts due to Vornado and its affiliate                                                         |                                                                      |       | 4,737   |          |         |              | 4,822   |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Accounts payable and accrued expenses                                                            |                                                                      |       | 21,933  |          |         |              | 13,940  |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Other liabilities                                                                                |                                                                      |       | 9,356   |          |         |              | 3,665   |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|TOTAL LIABILITIES                                                                                |                                                                      |       | 550,596 |          |         |              | 538,258 |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|COMMITMENTS AND CONTINGENCIES                                                                    |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|STOCKHOLDERS EQUITY:                                                                            |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Preferred stock: no par value; authorized, 3,000,000 shares;
issued, none                        |                                                                      |       |        |          |         |              |        |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Common stock: $1.00 par value per share; authorized, 10,000,000 shares;
issued, 5,173,450 shares |                                                                      |       | 5,174   |          |         |              | 5,174   |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Additional capital                                                                               |                                                                      |       | 24,843  |          |         |              | 24,843  |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Retained earnings                                                                                |                                                                      |       | 18,422  |          |         |              | 16,024  |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                 |                                                                      |       | 48,439  |          |         |              | 46,041  |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Less treasury shares, 172,600 shares at cost                                                     |                                                                      |       | (960    | )        |         |              | (960    | )      
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|Total stockholders equity                                                                       |                                                                      |       | 47,479  |          |         |              | 45,081  |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                       |                                                                      | $     | 598,075 |          |         | $            | 583,339 |        
|                                                                                                 |                                                                      |       |         |          |         |              |         |        

See notes to consolidated financial statements.

3



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##### Table of Contents






ALEXANDERS, INC.
AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share amounts)

|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |        | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | -------------------- | ------ | ------------------ | - | ------ | ------ | ---- | - | ------- | ------ |  | - | ------ | ------ | 
|                                                                                                                                                             |                                                                                                                                                                       |   | For The Three Months |        | For The Six Months
|                                                                                                                                                             |                                                                                                                                                                       |   | Ended June 30,       |        | Ended June 30,    
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                   
|                                                                                                                                                             |                                                                                                                                                                       |   | 2002                 |        | 2001               |   | 2002   |        | 2001
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |     
|REVENUES:                                                                                                                                                    |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                             | Property rentals                                                                                                                                                      |   | $                    | 12,637 |                    |   | $      | 10,535 |      |   | $       | 25,041 |  |   | $      | 21,108 | 
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                             | Expense reimbursements                                                                                                                                                |   |                      | 5,966  |                    |   |        | 6,017  |      |   |         | 12,284 |  |   |        | 11,893 | 
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|Total revenues                                                                                                                                               |                                                                                                                                                                       |   | 18,603               |        |                    |   | 16,552 |        |      |   | 37,325  |        |  |   | 33,001 |       
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|EXPENSES:                                                                                                                                                    |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                             | Operating (including management fee to
Vornado of $353 and $334 for the three
months ended in 2002 and 2001; $719 and
$674 for the six months ended in 2002 and
2001) |   |                      | 7,435  |                    |   |        | 7,716  |      |   |         | 14,306 |  |   |        | 14,382 | 
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                             | General and administrative (including
management fee to Vornado of $540 and
$1,080 each for the three and six month
ended in 2002 and 2001)                           |   |                      | 5,169  |                    |   |        | 848    |      |   |         | 6,034  |  |   |        | 1,716  | 
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                             | Depreciation and amortization                                                                                                                                         |   |                      | 1,621  |                    |   |        | 1,581  |      |   |         | 3,232  |  |   |        | 3,143  | 
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|Total expenses                                                                                                                                               |                                                                                                                                                                       |   | 14,225               |        |                    |   | 10,145 |        |      |   | 23,572  |        |  |   | 19,241 |       
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|OPERATING INCOME                                                                                                                                             |                                                                                                                                                                       |   | 4,378                |        |                    |   | 6,407  |        |      |   | 13,753  |        |  |   | 13,760 |       
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|Interest and debt expense
(including interest on loans from Vornado)                                                                                         |                                                                                                                                                                       |   | (6,156               | )      |                    |   | (4,728 | )      |      |   | (12,734 | )      |  |   | (9,244 | )     
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|Interest and other income, net                                                                                                                               |                                                                                                                                                                       |   | 535                  |        |                    |   | 428    |        |      |   | 1,202   |        |  |   | 791    |       
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|                                                                                                                                                             | (Loss) income from continuing operations                                                                                                                              |   |                      | (1,243 | )                  |   |        | 2,107  |      |   |         | 2,221  |  |   |        | 5,307  | 
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|Income (loss) from discontinued operations
(including extraordinary
gain from early extinguishment of debt of
$3,534 for the six months ended June 30,
2001) |                                                                                                                                                                       |   | 110                  |        |                    |   | (37    | )      |      |   | 177     |        |  |   | 22,370 |       
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|NET (LOSS) INCOME                                                                                                                                            |                                                                                                                                                                       | $ | (1,133               | )      |                    | $ | 2,070  |        |      | $ | 2,398   |        |  | $ | 27,677 |       
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|(Loss) income per share (basic and diluted):                                                                                                                 |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                             | Continuing operations                                                                                                                                                 |   | $                    | (0.25  | )                  |   | $      | 0.42   |      |   | $       | 0.44   |  |   | $      | 1.06   | 
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                            
|                                                                                                                                                             | Discontinued operations                                                                                                                                               |   |                      | 0.02   |                    |   |        | (0.01  | )    |   |         | 0.04   |  |   |        | 4.47   | 
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       
|                                                                                                                                                             | Net (loss) income                                                                                                                                                     |   | $                    | (0.23  | )                  |   | $      | 0.41   |      |   | $       | 0.48   |  |   | $      | 5.53   | 
|                                                                                                                                                             |                                                                                                                                                                       |   |                      |        |                    |   |        |        |      |   |         |        |  |   |        |       

See notes to consolidated financial statements.

4



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##### Table of Contents






ALEXANDERS, INC.
AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)

|                                                                                                       |                                                               |   |                                   |         |      |   |         |          |  
|------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------- | - | --------------------------------- | ------- | ---- | - | ------- | -------- | -
|                                                                                                       |                                                               |   | For The Six Months Ended June 30,
|                                                                                                       |                                                               |   |                                  
|                                                                                                       |                                                               |   | 2002                              |         | 2001
|                                                                                                       |                                                               |   |                                   |         |     
|Cash Flows From Operating Activities:                                                                  |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Net income from continuing operations                                                                  |                                                               | $ | 2,221                             |         |      | $ | 5,307   |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Adjustments to reconcile net income to net cash
provided by (used in) continuing operating activities: |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Depreciation and amortization (including debt issuance costs) |   |                                   | 3,682   |      |   |         | 4,222    |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Straight-lining of rental income, net                         |   |                                   | (1,524  | )    |   |         | (1,685   | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Stock appreciation rights compensation expense                |   |                                   | 4,236   |      |   |         |         |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Change in assets and liabilities:                                                                      |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Accounts receivable                                           |   |                                   | 131     |      |   |         | 565      |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Amounts due to Vornado and its affiliate                      |   |                                   | (2,725  | )    |   |         | 774      |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Accounts payable and accrued expenses                         |   |                                   | (4,465  | )    |   |         | (3,067   | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Other liabilities                                             |   |                                   | 1,455   |      |   |         | 171      |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Other                                                         |   |                                   | (2,507  | )    |   |         | (4,225   | )
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|Net cash provided by operating activities of continuing operations                                     |                                                               |   | 504                               |         |      |   | 2,062   |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Income from discontinued operations                                                                    |                                                               |   | 177                               |         |      |   | 22,370  |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Gain on sale of Fordham Road property                         |   |                                   |        |      |   |         | (19,026  | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Extraordinary gain from early extinguishment of debt          |   |                                   |        |      |   |         | (3,534   | )
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|Net cash provided by (used in) discontinued operations                                                 |                                                               |   | 177                               |         |      |   | (190    | )       
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|Net cash provided by operating activities                                                              |                                                               |   | 681                               |         |      |   | 1,872   |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Cash Flows From Investing Activities:                                                                  |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Cash flow from continuing operations:                                                                  |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Additions to real estate                                      |   |                                   | (34,903 | )    |   |         | (19,131  | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Cash made available for construction financing                |   |                                   |        |      |   |         | 8,388    |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Cash restricted for operating liabilities                     |   |                                   | (4,479  | )    |   |         | (15,673  | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Cash made available for operating liabilities                 |   |                                   | 4,233   |      |   |         | 2,855    |  
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|Net cash used in continuing operations                                                                 |                                                               |   | (35,149                           | )       |      |   | (23,561 | )       
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Cash flow from discontinued operations:                                                                |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Proceeds from sale of Fordham Road property                   |   |                                   |        |      |   |         | 23,701   |  
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|Net cash provided by discontinued operations                                                           |                                                               |   |                                  |         |      |   | 23,701  |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Net cash (used in) provided by investing activity                                                      |                                                               |   | (35,149                           | )       |      |   | 140     |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Cash Flows From Financing Activities:                                                                  |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Issuance of debt                                              |   |                                   |        |      |   |         | 232,685  |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Debt repayments                                               |   |                                   | (1,261  | )    |   |         | (138,168 | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Deferred debt expense                                         |   |                                   | (86     | )    |   |         | (5,135   | )
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|Net cash (used in) provided by financing activities                                                    |                                                               |   | (1,347                            | )       |      |   | 89,382  |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Net (decrease) increase in cash and cash equivalents                                                   |                                                               |   | (35,815                           | )       |      |   | 91,394  |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Cash and cash equivalents at beginning of period                                                       |                                                               |   | 135,258                           |         |      |   | 2,272   |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|Cash and cash equivalents at end of period                                                             |                                                               | $ | 99,443                            |         |      | $ | 93,666  |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Supplemental disclosure of cash flow information:                                                      |                                                               |   |                                   |         |      |   |         |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Cash payments for interest (of which $9,562 and $9,954
have been capitalized)                          |                                                               | $ | 23,499                            |         |      | $ | 18,626  |         
|                                                                                                       |                                                               |   |                                   |         |      |   |         |         

See notes to consolidated financial statements.

5



---



##### Table of Contents






ALEXANDERS, INC.
AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



|1. |  | CONSOLIDATED FINANCIAL STATEMENTS
|-- |  | ---------------------------------

The Consolidated Balance Sheet as of June 30, 2002, the Consolidated
Statements of Operations for the three and six months ended June 30, 2002 and 2001,
and the Consolidated Statements of Cash Flows for the six months ended June 30,
2002 and 2001 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 accounting principles
generally accepted in the United States of America have been condensed or
omitted. These condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Alexanders, Inc. and Subsidiaries (the Company) annual
report on Form 10-K for the year ended December 31, 2001 as filed with the
Securities and Exchange Commission. The results of operations for the three
and six months ended June 30, 2002 are not necessarily indicative of the
operating results for the full year.

In accordance with SFAS No. 144, Accounting for the Impairment or Disposal
of Long-Lived Assets, effective January 1, 2002, the Company reclassified its
statements of operations to reflect income and expenses for properties which
are held for sale as discontinued operations. In addition, the Company
reclassified the January 2001 gain on the sale of its Fordham Road property and
the extraordinary gain from the early extinguishment of debt from such property
to discontinued operations to conform with the current periods presentation.

The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting periods. Actual results could differ from
those estimates.



|2. |  | RELATIONSHIP WITH VORNADO REALTY TRUST (Vornado)
|-- |  | --------------------------------------------------

Vornado owns 33.1% of the Companys common stock at June 30, 2002.

The Company is managed by and its properties are leased by Vornado
pursuant to management, leasing and development agreements with one-year terms
expiring in March of each year which are automatically renewable. In
conjunction with the closing of the Lexington Avenue construction loan on July
3, 2002 (Note 4), these agreements were bifurcated to cover the Companys
Lexington Avenue property separately. Further, the Lexington Avenue management
and development agreements were amended to provide for a term lasting until
substantial completion of the property, with automatic renewals, and for the
payment of the development fee upon the earlier of January 3, 2006 or the
payment in full of the construction loan encumbering the property.

Pursuant to this Construction loan, Vornado has agreed to guarantee among
other things, the lien free, timely completion of the construction of the
project and funding of project costs in excess of a stated loan budget, if not
funded by the Company (the Completion Guarantee). The $6,300,000 estimated
fee payable by the Company to Vornado for the Completion Guarantee is 1% of
construction costs (as defined) and is due at the same time that the
development fee is due. In addition, if Vornado should advance any
funds under the Completion Guarantee in excess of the $26,000,000 currently
available under the secured line of credit, discussed below, interest on those
advances is at 15% per annum.

Pursuant to both the pre and post July 3, 2002 management, leasing and
development agreements, Vornado is entitled to a development fee based on 6% of
construction costs as defined. The development fee for the Lexington Avenue
project is estimated to be approximately $26,300,000. Under these agreements
the Company incurred fees of $3,507,000 and $1,601,000 in the three months
ended June 30, 2002 and 2001, and $6,602,000 and $4,065,000 in the six months
periods ended June 30, 2002 and 2001. The Company owes Vornado, $1,073,000
under the leasing agreement which is payable in 2002.

6



---



##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At June 30, 2002, the Company is indebted to Vornado in the amount of
$119,000,000 comprised of (i) a $95,000,000 secured financing, and (ii)
$24,000,000 under a $50,000,000 secured line of credit (which carries a 1%
unused commitment fee). On March 15, 2002, the loan and the line of credit were
extended to April 15, 2003. The interest rate on these loans was reset from
13.74% to 12.48% using a Treasury index (with a 3% floor) plus the same spread
to treasuries as previously existed. The Company incurred interest on its
loans from Vornado of $3,820,000 and $4,199,000 in the three months ended June
30, 2002 and 2001, and $7,902,000 and $8,965,000 in the six months ended June
30, 2002 and 2001. At June 30, 2002, $26,000,000 was available under the
secured line of credit. On July 3, 2002, in conjunction with the closing of
the Lexington Avenue construction loan (Note 4), the maturity of the Vornado
debt was extended to the earlier of January 3, 2006 or the date the Lexington
Avenue construction loan is repaid in full and the debt was bifurcated among
various subsidiaries of the Company (all guaranteed by the Company).
In addition amounts which may be due under the Completion Guarantee
would be due at the same time.



|3. |  | ASSETS HELD FOR SALE
|-- |  | --------------------

On May 8, 2002 the Company entered into an agreement to sell its Third
Avenue property located in the Bronx, New York for $15,000,000 which would
result in a gain of approximately $10,800,000. The Company has received a
non-refundable deposit of $750,000 from the purchaser. This sale is expected
to be completed during the third quarter of this year, however there can be no
assurance it will be consummated.

On May 30, 2002 the Company entered into an agreement to sell its
subsidiary which owns the building and has the ground lease for its property in
Flushing, New York for $18,800,000 which would result in a gain of
approximately $15,800,000. The Company has received a non-refundable deposit of
$1,300,000 from the purchaser. This sale is expected to be completed during
the third quarter of this year, however there can be no assurance it will be
consummated.



|4. |  | LEXINGTON AVENUE
|-- |  | ----------------

The development plans at Lexington Avenue consist of a 1.3 million square
foot multi-use building. The building will contain 175,000 net rentable square
feet of retail (45,000 square feet of which has been leased to Hennes &
Mauritz), 880,000 net rentable square feet of office (690,000 square of which
has been leased to Bloomberg L.P.) and 230,000 net sallable square feet of
residential consisting of condominium units (through a taxable REIT
subsidiary). Construction is expected to be completed in 2004. On July 3,
2002 the Company finalized a $490,000,000 loan with HVB Real Estate Capital
(Hypo Vereinsbank) to finance the construction of the Lexington Avenue property
(the Construction Loan). The estimated construction costs in excess of the
construction loan of approximately $140,000,000 will be provided by the
Company. The Construction Loan has an interest rate of LIBOR plus 2.5%
(currently 4.36%) and a term of forty-two months subject to two one-year
extensions. The Company received an initial funding of $55,500,000 under the
Construction Loan of which $25,000,000 was used to repay the Companys term
loan to a bank in the amount of $10,000,000 and a secured note in the amount of
$15,000,000. Of the total construction budget of $630,000,000, $85,000,000 has
been spent to date and an additional $185,000,000 has been committed to.
Pursuant to this Construction Loan, Vornado has agreed to guarantee among other
things, the lien free, timely completion of the construction of the project and
funding of project costs in excess of a stated loan budget, if not funded by
the Company (the Completion Guarantee). The $6,300,000 estimated fee payable
by the Company to Vornado for the Completion Guarantee is 1% of construction
costs (as defined). In addition, if Vornado should advance any funds under the
Completion Guarantee in excess of the $26,000,000 currently available under the
secured line of credit, interest on those advances is at 15% per annum. There
can be no assurance that the Lexington Avenue project ultimately will be
completed, completed on time or completed for the budgeted amount. Further,
the Company may need additional financing for the project, which may involve
equity, debt, joint ventures and asset sales, and which may involve
arrangements with Vornado Realty Trust. If the project is not completed on a
timely basis, the Bloomberg L.P. lease may be cancelled and significant
penalties may apply.

7



---



##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



|5. |  | COMMITMENTS AND CONTINGENCIES
|-- |  | -----------------------------

The Company carries comprehensive liability and all risk property
insurance (fire, flood, extended coverage and rental loss insurance) with
respect to its assets. The Companys all risk insurance policies in effect
before September 11, 2001 included coverage for terrorist acts, except for acts
of war. Since September 11, 2001, insurance companies
have for the most part excluded terrorists acts from coverage in all risk
policies. The Company has obtained $200 million of separate coverage for
terrorist acts. In addition, the Companys builders risk policy for the
Lexington Avenue Development, which expires on December 1, 2003, includes
coverage for terrorist acts up to $428 million. Therefore, the risk of
financial loss in excess of these limits in the case of terrorist acts (as
defined) is the Companys, which loss could be material.

The Companys debt instruments, consisting of mortgage loans secured by
its properties (which are generally non-recourse to the Company), contain
customary covenants requiring the Company to maintain insurance. The lenders
under these instruments may take the position that an exclusion from all risk
insurance coverage for losses due to terrorist acts is a breach of these debt
instruments that allows the lenders to declare an event of default and
accelerate repayment of debt. In addition, if lenders insist on coverage for
these risks, it could adversely affect the Companys ability to finance and/or
refinance its properties, including the construction of its Lexington Avenue
development property.

In June 1997, the Kings Plaza Regional Shopping Center (the Center),
commissioned an Environmental Study and Contamination Assessment Site
Investigation (the Phase II Study) to evaluate and delineate environmental
conditions disclosed in a Phase I study. The results of the Study indicate the
presence of petroleum and bis (2-ethylhexyl) phthalate contamination in the
soil and groundwater. The Company has delineated the contamination and has
developed a remediation approach, which is ongoing. The New York State
Department of Environmental Conservation (NYDEC) has approved a portion of
the remediation approach. The Company accrued $2,675,000 in previous years
($1,985,000 has been paid as of June 30, 2002) for its estimated obligation
with respect to the clean up of the site, which includes costs of (i) remedial
investigation, (ii) feasibility study, (iii) remedial design, (iv) remedial
action and (v) professional fees. If the NYDEC insists on a more extensive
remediation approach, the Company could incur additional obligations.

The majority of the contamination may have resulted from activities of
third parties; however, the sources of the contamination have not been fully
identified. Although the Company is pursuing claims against potentially
responsible third parties, there can be no assurance that such parties will be
identified, or if identified, whether these third parties will be solvent. In
addition, the costs associated with pursuing responsible parties may be cost
prohibitive. The Company has not recorded an asset as of June 30, 2002 for
potential recoveries of environmental remediation costs from other parties.

Other than routine proceedings incidental to their businesses, neither the
Company nor any of its subsidiaries is a party to, nor is their property the
subject of, any material pending legal proceeding. The Company believes that
these legal actions will not be material to the Companys financial condition
or results of operations.

Letters of Credit

Approximately $7,900,000 in standby letters of credit were issued at June
30, 2002.

8



---



##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



|6. |  | (LOSS) INCOME PER SHARE
|-- |  | -----------------------

The following table sets forth the computation of basic and diluted income
per share:

|                                                    |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |        |   | 
|--------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | ---------------------- | - | -------------------- | - | ------------------ | - | ----- | - | ---- | - | ----- | - |  | - | ------ | - | 
|                                                    |                                                                                                                       |                        |   | For The Three Months |   | For The Six Months
|                                                    |                                                                                                                       |                        |   | Ended June 30,       |   | Ended June 30,    
|                                                    |                                                                                                                       |                        |   |                      |   |                   
|                                                    |                                                                                                                       |                        |   | 2002                 |   | 2001               |   | 2002  |   | 2001
|                                                    |                                                                                                                       |                        |   |                      |   |                    |   |       |   |     
|(amounts in thousands except per share amounts)     |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       
|                                                   
|                                                   
|                                                   
|                                                   
|Numerator:                                          |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | (Loss) income from continuing operations                                                                              |                        | $ | (1,243               | ) |                    | $ | 2,107 |   |      | $ | 2,221 |   |  | $ | 5,307  |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Income (loss) from discontinued operations
(including extraordinary gain from early
extinguishment of debt of $3,534) |                        |   | 110                  |   |                    |   | (37   | ) |      |   | 177   |   |  |   | 22,370 |  
|                                                    |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       
|                                                    | Net (loss) income                                                                                                     |                        |   | (1,133               | ) |                    |   | 2,070 |   |      |   | 2,398 |   |  |   | 27,677 |  
|                                                    |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       
|                                                   
|                                                   
|                                                   
|                                                   
|Denominator:                                        |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Denominator for basic income per share 
weighted average shares                                                      |                        |   | 5,001                |   |                    |   | 5,001 |   |      |   | 5,001 |   |  |   | 5,001  |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Effect of dilutive securities:                                                                                        |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |        |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    |                                                                                                                       | Employee stock options |   |                      |  |                    |   |       |  |      |   |       |  |  |   |        |  | 
|                                                    |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       
|                                                    | Denominator for diluted income per share 
adjusted weighted average shares and
assumed conversions                   |                        |   | 5,001                |   |                    |   | 5,001 |   |      |   | 5,001 |   |  |   | 5,001  |  
|                                                    |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       
|(LOSS) INCOME PER COMMON SHARE 
BASIC AND DILUTED: |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | (Loss) income from continuing operations                                                                              |                        | $ | (.25                 | ) |                    | $ | .42   |   |      | $ | .44   |   |  | $ | 1.06   |  
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Income (loss) from discontinued operations                                                                            |                        |   | .02                  |   |                    |   | (.01  | ) |      |   | .04   |   |  |   | 4.47   |  
|                                                    |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       
|                                                    | Net (loss) income per common share                                                                                    |                        | $ | (.23                 | ) |                    | $ | .41   |   |      | $ | .48   |   |  | $ | 5.53   |  
|                                                    |                                                                                                                       |                        |   |                      |   |                    |   |       |   |      |   |       |   |  |   |       



|7. |  | RECENTLY ISSUED ACCOUNTING STANDARDS
|-- |  | ------------------------------------

In April 2002, FASB issued SFAS No. 145, Rescission of FASB Statement No.
4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Correction.
SFAS No. 145 rescinds SFAS No. 4, Reporting Gains and Losses from
Extinguishment of Debt,SFAS No. 44, Accounting for Intangible Assets of Motor
Carriers,and SFAS No. 64, Extinguishments of Debt Made to Satisfy Sinking-Fund
Requirements.SFAS No. 145 requires, among other things, (i) that the
modification of a lease that results in a change of the classification of the
lease from capital to operating under the provisions of SFAS No. 13 be
accounted for as a sale-leaseback transaction and (ii) the reporting of gains
or losses from the early extinguishment of debt as extraordinary items only if
they met the criteria of Accounting Principles Board Opinion No. 30, Reporting
the Results of Operations.The rescission of SFAS No. 4 is effective January
1, 2003. The amendments of SFAS No. 13 are effective for transactions
occurring on or after May 15, 2002. The rescissions of SFAS No. 44 and 64 and
the amendments of SFAS No. 13 did not have an impact on the Companys financial
statements.

In
July 2002, FASB issued SFAS No. 146, Accounting for Costs
Associated with Exit or Disposal Activities (effective
January 1, 2003). SFAS No. 146 replaces current accounting
literature and requires the recognition of costs associated with exit
or disposal activities when they are incurred rather than at the date
of a commitment to an exit or disposal plan. The Company does not
believe the adoption of SFAS No. 146 will have a material effect
on the Company's financial statements.

9



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##### Table of Contents






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

Certain statements contained herein constitute forward-looking statements
as such term is defined in Section 27A of the Securities Act of 1933, as
amended (the Securities Act), and Section 21E of the Securities Exchange Act
of 1934, as amended (the Exchange Act). This quarterly report on Form 10-Q
contains certain forward-looking statements regarding our financial condition,
results of operations and business. You can find many of these statements by
looking for words such as believes, expects, anticipates, estimates,
intends, plans or similar expressions in this quarterly report on Form
10-Q. These forward-looking statements are subject to numerous assumptions,
risks and uncertainties. Factors that may cause actual results to differ
materially from those contemplated by the forward-looking statements include,
but are not limited to, the following: (a) national, regional and local
economic conditions; (b) the continuing impact of the September 11, 2001
terrorist attacks on our tenants and the national, regional and local
economies, including, in particular, the New York City metropolitan areas; (c)
local conditions such as an oversupply of space or a reduction in demand for
real estate in the area; (d) the financial conditions of tenants; (e)
competition from other available space; (f) whether tenants consider a property
attractive; (g) whether we are able to pass some or all of any increased
operating costs we experience through to our tenants; (h) how well we manage
our properties; (i) increased interest expense; (j) decreases in market rental
rates; (k) the timing and costs associated with property improvements and
rentals; (l) changes in taxation or zoning laws; (m) government regulations;
(n) our failure to continue to qualify as a real estate investment trust; (o)
availability of financing on acceptable terms; (p) potential liability under
environmental or other laws or regulations; (q) general competitive factors;
(r) dependence upon Vornado Realty Trust; and (s) possible conflicts of
interest with Vornado Realty Trust.

Managements
Discussion and Analysis of Financial Condition and Results of
Operations discusses the Companys consolidated financial statements for the
three and six months ended June 30, 2002 and 2001.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting periods. Actual results could differ from those
estimates. A summary of the Companys significant accounting policies are
included in Note 2  Summary of Significant Accounting Policies to the
Companys annual report on Form 10-K for the year ended December 31, 2001.

Results of Operations

The Company had net loss of $1,133,000 in the quarter ended June 30, 2002,
compared to net income of $2,070,000 in the quarter ended June 30, 2001, a
decrease of $3,203,000 and net income of $2,398,000 for the six months ended
June 30, 2002, compared to net income of $27,677,000 for the six months ended
June 30, 2001, a decrease of $25,279,000. The current years quarter and six
months include non-cash compensation expense of $4,236,000 relating to stock
appreciation rights. The prior years six months included income from
discontinued operations comprised of a gain on the sale of the Fordham Road
property of $19,026,000 and an extraordinary gain from the early extinguishment
of debt on such property of $3,534,000. Excluding these items, net income for
the quarter and six months ended June 30, 2002, would have been higher than net
income in the corresponding prior years periods by $1,033,000 and $1,517,000,
respectively. In accordance with SFAS No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets, effective January 1, 2002, the Company
reclassified its statements of operations to reflect income and expenses for
properties which are held for sale as discontinued operations. In addition,
the Company reclassified the January 2001, gain on the sale of its Fordham Road
property and the extraordinary gain from the early extinguishment of debt from
such property to discontinued operations to conform with the current periods
presentation.

Property rentals were $12,637,000 in the quarter ended June 30, 2002,
compared to $10,535,000 in the prior years quarter, an increase of $2,102,000
and $25,041,000 for the six months ended June 30, 2002, compared to $21,108,000
for the six months ended June 30, 2001, an increase of $3,933,000. These
increases resulted primarily from (i) commencement, on October 5, 2001, of the
ground lease with IKEA at the Paramus property, and (ii) an increase in
occupancy at the Kings Plaza Regional Shopping Center.

General and administrative expenses were $5,169,000 in the quarter ended
June 30, 2002, compared to $848,000 in the prior years quarter, an increase of
$4,321,000 and $6,034,000 for the six months ended June 30, 2002, compared to
$1,716,000 for the six months ended June 30, 2001 an increase of $4,318,000.
These increases resulted primarily from stock appreciation rights compensation
expense of $4,236,000 based on the Companys closing stock price of $76.80 at
June 30, 2002.

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##### Table of Contents



Interest and debt expense was $6,156,000 in the quarter ended June 30,
2002, compared to $4,728,000 in 2001, an increase of $1,428,000 and $12,734,000
for the six months ended June 30, 2002, compared to $9,244,000 for the six
months ended June 30, 2001, an increase of $3,490,000. This resulted primarily
from (i) $108,000,000 in additional mortgage borrowings from refinancing the
Kings Plaza property on June 1, 2001, and (ii) a $68,000,000 mortgage loan on
the Paramus property obtained on October 5, 2001. The increase in interest
expense resulting from higher average borrowings was partially offset by a
decrease in average interest rates from 9.71% to 8.43%.

Interest and other income was $535,000 in the quarter ended June 30, 2002,
compared to $428,000 in the prior years quarter, an increase of $107,000 and
$1,202,000 for the six months ended June 30, 2002, compared to $791,000 for the
six months ended June 30, 2001, an increase of $411,000. These increases
resulted primarily from higher invested cash balances attributable to the
refinancing of the Kings Plaza and the new mortgage loan on the Paramus
property.

Liquidity and Capital Resources

In the aggregate, Alexanders operating properties do not generate
sufficient cash flow to pay all of its expenses. As rents commence from the
Lexington Avenue property (currently under development) the Company expects
that cash flow will become positive.

The development plans at Lexington Avenue consist of a 1.3 million square
foot multi-use building. The building will contain 175,000 net rentable square
feet of retail (45,000 square feet of which has been leased to Hennes &
Mauritz), 880,000 net rentable square feet of office (690,000 square of which
has been leased to Bloomberg L.P.) and 230,000 net sallable square feet of
residential consisting of condominium units (through a taxable REIT
subsidiary). Construction is expected to be completed in 2004. On July 3,
2002 the Company finalized a $490,000,000 loan with HVB Real Estate Capital
(Hypo Vereinsbank) to finance the construction of the Lexington Avenue property
(the Construction Loan). The estimated construction costs in excess of the
construction loan of approximately $140,000,000 will be provided by the
Company. The Construction Loan has an interest rate of LIBOR plus 2.5%
(currently 4.36%) and a term of forty-two months subject to two one-year
extensions. The Company received an initial funding of $55,500,000 under the
Construction Loan of which $25,000,000 was used to repay the Companys term
loan to a bank in the amount of $10,000,000 and a secured note in the amount of
$15,000,000. Of the total construction budget of $630,000,000, $85,000,000 has
been spent to date and an additional $185,000,000 has been committed to. There
can be no assurance that the Lexington Avenue project ultimately will be
completed, completed on time or completed for the budgeted amount. Further,
the Company may need additional financing for the project, which may involve
equity, debt, joint ventures and asset sales, and which may involve
arrangements with Vornado Realty Trust. If the project is not completed on a
timely basis, the Bloomberg L.P. lease may be cancelled and significant
penalties may apply. See Vornado Completion Guarantee described below.

In conjunction with the closing of the Lexington Avenue construction loan
on July 3, 2002, the Lexington Avenue management and development agreement was
amended to provide for a term lasting until substantial completion of the
property, with automatic renewals, and for the payment of the development fee
upon the earlier of January 3, 2006 or the payment in full of the construction
loan encumbering the property. Vornado has also agreed to guarantee among
other things, the lien free, timely completion of the construction of the
project, and funding of project costs in excess of a stated loan budget, if not
funded by the Company (the Completion Guarantee). The $6,300,000 estimated
fee payable by the Company to Vornado is 1% of construction costs (as
defined) and is due at the same time that the development fee is due.
In addition, if Vornado should advance any funds under the Completion
Guarantee in excess of the $26,000,000 currently available under the secured
line of credit, interest on those advance is at 15% per annum.

The Companys debt instruments, consisting of mortgage loans secured by
its properties (which are generally non-recourse to the Company), contain
customary covenants requiring the Company to maintain insurance. There can be
no assurance that the lenders under these instruments will not take the
position that an exclusion from all risk insurance coverage for losses due to
terrorist acts is a breach of these debt instruments that allows the lenders to
declare an event of default and accelerate repayment of debt. In addition, if
lenders insist on coverage for these risks, it could adversely affect the
Companys ability to finance and/or refinance its properties, including the
construction of its Lexington Avenue development property.

At June 30, 2002, $26,000,000 was available under the secured line of
credit with Vornado.

11



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##### Table of Contents



On May 8, 2002 the Company entered into an agreement to sell its Third
Avenue property located in the Bronx, New York for $15,000,000 which would
result in a gain of approximately $10,800,000. This sale is expected to be
completed during the third quarter of this year. The Company has received a
non-refundable deposit of $750,000 from the purchaser. This agreement is
conditional and there can be no assurance it will be consummated.

On May 30, 2002 the Company entered into an agreement to sell its
subsidiary which owns the building and has the ground lease for its property in
Flushing, New York for $18,800,000 which would result in a gain of
approximately $15,800,000. The Company has received a non-refundable deposit of
$1,300,000 from the purchaser. This sale is expected to be completed during
the third quarter of this year.

The Company estimates that the fair market values of its assets are
substantially in excess of their historical cost. The Company 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) other 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

Six Months Ended June 30, 2002

Net cash provided by operating activities of $681,000 was comprised of (i)
net income of $2,398,000 (including income from discontinued operations of
$177), (ii) non-cash items of $6,394,000, offset by the net change in operating
assets and liabilities of $8,111,000. The adjustments for non-cash items are
comprised of (i) depreciation and amortization of $3,682,000, (ii) compensation
expense of $4,236,000, offset by (iii) the effect of straight-lining of rental
income of $1,524,000.

Net cash used in investing activities of $35,149,000 was caused by capital
expenditures of $34,903,000. The capital expenditures were primarily related
to Lexington Avenue development.

Net cash used in financing activities of $1,347,000, resulted primarily
from debt payments of $1,261,000.

Six Months Ended June 30, 2001

Cash provided by operating activities of $1,872,000 was comprised of (i)
net income of $27,677,000 (includes income from discontinued operations of
$22,370,000), (ii) non-cash items of $2,537,000, offset by (iii) gain on sale
of Fordham Road property of $19,026,000, (iv) extraordinary gain from early
extinguishment of debt of $3,534,000, and (v) the net change in operating
assets and liabilities of $5,782,000. The adjustments for non-cash items are
comprised of (i) depreciation and amortization of $4,222,000, offset by (ii)
the effect of straight-lining of rental income of $1,685,000.

Net cash provided by investing activities of $140,000 (includes cash
provided by discontinued operations of $23,701,000) was comprised of (i)
proceeds from the sale of Fordham Road property of $23,701,000, and (ii) the
release of restricted cash of $11,243,000 offset by (iii) capital expenditures
of $19,131,000 and (iv) an increase in restricted cash of $15,673,000. The
capital expenditures were primarily comprised of (i) capitalized interest and
other carrying costs of $11,000,000, (ii) renovations to the Kings Plaza
Regional Shopping Center of $2,345,000, and (iii) excavation, foundation and
predevelopment costs at Lexington Avenue of $4,565,000.

Net cash provided by financing activities of $89,382,000 resulted
primarily from an increase in debt of $232,685,000 partially offset by debt
payments of $138,168,000.

12



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##### Table of Contents



Funds from Operations for the Three and Six Months Ended June 30, 2002 and 2001

Funds used in operations was $857,000 in the quarter ended June 30, 2002,
compared to funds from operations of $2,884,000 in the prior years quarter, a
decrease of $3,741,000. Funds from operations was $2,991,000 in the six months
ended June 30, 2002, compared to $6,614,000 in the prior years six months, a
decrease of $3,623,000. Funds used in operations for the three months ended
June 30, 2002 and funds from operations for the six months ended June 30, 2002,
included stock appreciation rights compensation expense of $4,236,000 based on
the Companys closing stock price of $76.80 at June 30, 2002. The following
table reconciles net (loss) income to funds (used in) from operations:

|                                                         |  |                      |            |                    |  |      |           |      |  |   |            |   |  |   |             |  
|-------------------------------------------------------- |  | -------------------- | ---------- | ------------------ |  | ---- | --------- | ---- |  | - | ---------- | - |  | - | ----------- | -
|                                                         |  | For The Three Months |            | For The Six Months
|                                                         |  | Ended June 30,       |            | Ended June 30,    
|                                                         |  |                      |            |                   
|                                                         |  | 2002                 |            | 2001               |  | 2002 |           | 2001
|                                                         |  |                      |            |                    |  |      |           |     
|Net (loss) income                                        |  | $                    | (1,133,000 | )                  |  | $    | 2,070,000 |      |  | $ | 2,398,000  |   |  | $ | 27,677,000  |  
|                                                        
|                                                        
|                                                        
|                                                        
|Gain on Sale of Fordham Road property                    |  |                      |           |                    |  |      |          |      |  |   |           |   |  |   | (19,026,000 | )
|                                                        
|                                                        
|                                                        
|                                                        
|Extraordinary gain from early
extinguishment of debt     |  |                      |           |                    |  |      |          |      |  |   |           |   |  |   | (3,534,000  | )
|                                                        
|                                                        
|                                                        
|                                                        
|Depreciation and amortization of
real property           |  |                      | 1,651,000  |                    |  |      | 1,600,000 |      |  |   | 3,294,000  |   |  |   | 3,182,000   |  
|                                                        
|                                                        
|                                                        
|                                                        
|Straight-lining of property rentals
for rent escalations |  |                      | (780,000   | )                  |  |      | (786,000  | )    |  |   | (1,524,000 | ) |  |   | (1,685,000  | )
|                                                        
|                                                        
|                                                        
|                                                        
|Leasing fees paid in excess
of expense recognized        |  |                      | (595,000   | )                  |  |      |          |      |  |   | (1,177,000 | ) |  |   |            |  
|                                                         |  |                      |            |                    |  |      |           |      |  |   |            |   |  |   |             |  
|                                                         |  | $                    | (857,000   | )                  |  | $    | 2,884,000 |      |  | $ | 2,991,000  |   |  | $ | 6,614,000   |  
|                                                         |  |                      |            |                    |  |      |           |      |  |   |            |   |  |   |             |  

Funds from operations does not represent cash generated from operating
activities in accordance with generally accepted accounting principles and is
not necessarily indicative of cash available to fund cash needs, which is
disclosed in the Consolidated Statements of Cash Flows for the applicable
periods. There are no material legal or functional restrictions on the use of
funds from operations. Funds from operations should not be considered as an
alternative to net income as an indicator of the Companys operating
performance or as an alternative to cash flows as a measure of liquidity.
Management considers funds from operations a relevant supplemental measure of
operating performance because it provides a basis for comparison among REITs;
however, funds from operations may not be comparable to similarly titled
measures reported by other REITs since the Companys method of calculating
funds from operations is different from that used by the National Association
of Real Estate Investment Trusts (NAREIT). Funds from operations, as defined
by NAREIT, represents net income before depreciation and amortization,
extraordinary items and gains or losses on sales of real estate. Funds from
operations as disclosed above has been modified to adjust for the effect of
straight-lining of property rentals for rent escalations and leasing fee
expenses paid directly to Vornado Realty Trust.

Below are the cash flows provided by (used in) operating, investing and
financing activities:

|                     |  |                          |             |      |  |   |            | 
|-------------------- |  | ------------------------ | ----------- | ---- |  | - | ---------- | 
|                     |  | For The Six Months Ended
|                     |  | June 30,                
|                     |  |                         
|                     |  | 2002                     |             | 2001
|                     |  |                          |             |     
|Operating activities |  | $                        | 681,000     |      |  | $ | 1,872,000  | 
|                     |  |                          |             |      |  |   |            | 
|Investing activities |  | $                        | (35,149,000 | )    |  | $ | 140,000    | 
|                     |  |                          |             |      |  |   |            | 
|Financing activities |  | $                        | (1,347,000  | )    |  | $ | 89,382,000 | 
|                     |  |                          |             |      |  |   |            | 

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Recently Issued Accounting Standards

In April 2002, FASB issued SFAS No. 145, Rescission of FASB Statement No.
4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Correction.
SFAS No. 145 rescinds SFAS No. 4, Reporting Gains and Losses from
Extinguishment of Debt,SFAS No. 44, Accounting for Intangible Assets of Motor
Carriers,and SFAS No. 64, Extinguishments of Debt Made to Satisfy Sinking-Fund
Requirements.SFAS No. 145 requires, among other things, (i) that the
modification of a lease that results in a change of the classification of the
lease from capital to operating under the provisions of SFAS No. 13 be
accounted for as a sale-leaseback transaction and (ii) the reporting of gains
or losses from the early extinguishment of debt as extraordinary items only if
they met the criteria of Accounting Principles Board Opinion No. 30, Reporting
the Results of Operations.The rescission of SFAS No. 4 is effective January
1, 2003. The amendments of SFAS No. 13 are effective for transactions
occurring on or after May 15, 2002. The rescissions of SFAS No. 44 and 64 and
the amendments of SFAS No. 13 did not have an impact on the Companys financial
statements.

In
July 2002, FASB issued SFAS No. 146, Accounting for Costs
Associated with Exit or Disposal Activities (effective
January 1, 2003). SFAS No. 146 replaces current accounting
literature and requires the recognition of costs associated with exit
or disposal activities when they are incurred rather than at the date
of a commitment to an exit or disposal plan. The Company does not
believe the adoption of SFAS No. 146 will have a material effect
on the Companys financial statements.




Item 3. Quantitative and Qualitative Disclosures About Market Risk

At June 30, 2002, the Company had $144,000,000 of variable rate debt at a
weighted average interest rate of 11.17% and $370,570,000 of fixed rate debt
bearing interest at a weighted average interest rate of 7.13%. A one percent
increase in the base used to determine the interest rate of the variable rate
debt would result in a $1,440,000 decrease in the Companys annual net income
($.29 per basic and diluted share).

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##### Table of Contents






PART II. OTHER INFORMATION




Item 1. Legal Proceedings

Other than routine proceedings incidental to their businesses, neither the
Company nor any of its subsidiaries is a party to, nor is their property the
subject of, any material pending legal proceeding. The Company believes that
these legal actions will not be material to the Companys financial condition
or results of operations.




Item 4. Submission of Matters to a Vote of Security Holders

On May 29, 2002, the Company held its annual meeting of stockholders. The
stockholders voted, in person or by proxy, for the election of the three
nominees to serve on the Board of Directors for a term of three years, or until
their respective successors are duly elected and qualified. The three nominees
were approved. The results of the voting are shown below:

Election of Directors:

|                 |  |                |           |          |  |       |        | 
|---------------- |  | -------------- | --------- | -------- |  | ----- | ------ | 
|                 |  |                |           |          |  | Votes
|Directors        |  | Votes Cast For |           | Withheld
|                 |  |                |           |         
|David Mandelbaum |  |                | 4,873,284 |          |  |       | 20,901 | 
|                
|                
|                
|                
|Richard West     |  |                | 4,873,234 |          |  |       | 20,951 | 
|                
|                
|                
|                
|Neil Underberg   |  |                | 4,873,384 |          |  |       | 20,801 | 

Because of the nature of the matters voted upon, there were no abstentions
or broker non-votes.




Item 5. Other Information

Effective June 6, 2002, Joseph Macnow has resumed the position of Chief
Financial Officer of Alexanders. Patrick Hogan, the former Chief Financial
Officer has assumed other responsibilities at Vornado Realty Trust, the manager
of Alexanders.




Item 6. Exhibits and Reports on Form 8-K



|(a) |  | Exhibits required by Item 601 of Regulation of S-K are filed herewith and
are listed in the attached
Exhibit Index.
|--- |  | -------------------------------------------------------------------------------------------------------------------
|   
|(b) |  | Reports on Form 8-K                                                                                                
|   
|    |  | During the quarter ended June 30, 2002, the Company did not file any
reports on Form 8-K.                          

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##### Table of Contents






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: August 7, 2002 |  | /s/ Joseph Macnow                                                  
|                     |  |                                                                    
|                     |  | Joseph Macnow,
Executive Vice-President and Chief Financial Officer

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EXHIBIT INDEX

The following is a list of all exhibits filed as part of the Report:

|              |  |   |  |                                                                                                                                                                                                                                                             |  |     
|------------- |  | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit       |  |   |  |                                                                                                                                                                                                                                                             |  |     
|No.           |  |   |  |                                                                                                                                                                                                                                                             |  | Page
|              |  |   |  |                                                                                                                                                                                                                                                             |  |     
|             
|3(i)          |  |  |  | Certificate of Incorporation, as amended.
Incorporated herein by reference from
Exhibit 3.0 to the Registrants Current
Report on Form 8-K dated September 21,
1993.                                                                                        |  | *   
|             
|3(ii)         |  |  |  | By-laws, as amended. Incorporated herein
by reference from Exhibit 10.1 to the
Registrants Quarterly Report on Form
10-Q for the fiscal quarter ended March
31, 2000.                                                                                      |  | *   
|             
|10(i)(A)(1)   |  |  |  | Limited Liability Company Operating
Agreement of 731 Residential LLC, dated
as of July 3, 2002, among 731 Residential
Holding LLC. as the sole member Domenic
A. Borriello, as an Independent Manager
and Kim Lutthang, as an Independent
Manager           |  |     
|             
|10(i)(A)(2)   |  |  |  | Limited Liability Company Operating
Agreement of 731 Commercial LLC, dated as
of July 3, 2002, among 731 Commercial
Holding LLC, as the sole member, Domenic
A. Borriello, as an Independent Manager
and Kim Lutthang, as an Independent
Manager            |  |     
|             
|10(i)(B)(1)   |  |  |  | Amended and Restated Credit Agreement
dated July 3, 2002 between 59th Street
Corporation and Vornado Lending, LLC
(evidencing $40,000,000 of debt on which
59th Street Corporation became the direct
borrower)                                              |  |     
|             
|10(i)(B)(2)   |  |  |  | Credit Agreement, dated July 3, 2002,
between Alexanders Inc. and Vornado
Lending L.L.C. evidencing a $20,000,000
loan                                                                                                                                     |  |     
|             
|10(i)(B)(3)   |  |  |  | Amended and Restated Credit Agreement,
dated July 3, 2002, between Alexanders
Inc. and Vornado Lending L.L.C.
evidencing a $50,000,000 line of credit
facility (of which $24,000,000 has been
advanced)                                                    |  |     
|             
|10(i)(B)(4)   |  |  |  | Credit Agreement, dated July 3, 2002,
between Alexanders Inc. and Vornado
Lending L.L.C. evidencing a $35,000,000
loan                                                                                                                                     |  |     
|             
|10(i)(C)      |  |  |  | Building Loan Agreement, dated as of July
3, 2002, by and between 731 Commercial
LLC and 731 Residential LLC, collectively
as Borrower, and Bayerische Hypo-und
Vereinsbank AG, New York Branch, as Agent
for the Lenders                                   |  |     
|             
|10(i)(C)(1)   |  |  |  | Project Loan Agreement, dated as of July
3, 2002, by and between 731 Commercial
LLC and 731 Residential LLC, collectively
as Borrower, and Bayerische Hypo-und
Vereinsbank AG, New York Branch, as Agent
for the Lenders                                    |  |     
|             
|10(i)(C)(2)   |  |  |  | Supplemental Loan Agreement, dated as of
July 3, 2002, by and between 731
Commercial LLC and 731 Residential LLC,
collectively as Borrower, and Bayerische
Hypo-und Vereinsbank AG, New York Branch,
as Agent for the Lenders                               |  |     
|             
|(10)(i)(C)(3) |  |  |  | Consolidated, Amended and Restated
Building Loan Mortgage, dated as of July
3, 2002, by and between 731 Commercial
LLC and 731 Residential LLC, collectively
as Borrower, and Bayerische Hypo-und
Vereinsbank AG, New York Branch, as Agent
for the Lenders |  |     



---

|* |  | Incorporated by reference
|- |  | -------------------------

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##### Table of Contents



|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |     
|----------- |  | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit     |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |     
|No.         |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  | Page
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |     
|           
|10(i)(C)(4) |  |  |  | Consolidated, Amended and Restated
Building Loan Note, dated as of July 3,
2002 by and between 731 Commercial LLC
and 731 Residential LLC, collectively as
Borrower, and Bayerische Hypo-und
Vereinsbank AG, New York Branch, as Agent
for the Lenders                                                                                                |  |     
|           
|10(i)(C)(5) |  |  |  | Guaranty of Completion, dated as of July
3, 2002, executed by Vornado Realty L.P.
for the benefit of Bayerische Hypo-und
Vereinsbank AG, New York Branch, as Agent
for the Lenders                                                                                                                                                                    |  |     
|           
|10(i)(C)(6) |  |  |  | Guaranty of Carry Obligations, dated as
of July 3, 2002, executed by Alexanders,
Inc. for the benefit of Bayerische
Hypo-und Vereinsbank AG, New York Branch,
as Agent for the Lenders                                                                                                                                                               |  |     
|           
|10(i)(C)(7) |  |  |  | Environmental Indemnity Agreement, dated
as of July 3, 2002, executed by
Alexanders, Inc., 731 Residential LLC
and 731 Commercial LLC in favor of
Bayerische Hypo-und Vereinsbank AG, New
York Branch, as Agent for the Lenders                                                                                                                      |  |     
|           
|10(i)(C)(8) |  |  |  | Reimbursement Agreement, dated as of July
3, 2002, by and between Alexanders,
Inc., 731 Commercial LLC, 731 Residential
LLC and Vornado Realty, L.P.                                                                                                                                                                                                 |  |     
|           
|10(i)(D)    |  |  |  | Amended, Restated and Consolidated
Mortgage and Security Agreement, dated
May 12, 1999, between The Chase Manhattan
Bank, as mortgagee, and Alexanders Rego
Shopping Center Inc., as mortgagor.
Incorporated herein by reference from
Exhibit 10(i)(E) to the Registrants
Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2000. |  | *   
|           
|10(i)(E)(1) |  |  |  | Real Estate Retention Agreement dated as
of July 20, 1992, between Vornado Realty
Trust and Keen Realty Consultants, Inc.,
each as special real estate consultants,
and the Company. Incorporated herein by
reference from Exhibit 10(i)(O) to the
Registrants Form 10-K for the fiscal
year ended July 25, 1992.                                    |  | *   
|           
|10(i)(E)(2) |  |  |  | Extension Agreement to the Real Estate
Retention Agreement, dated as of February
6, 1995, between the Company and Vornado
Realty Trust. Incorporated herein by
reference from Exhibit 10(i)(G)(2) to the
Registrants Form 10-K for the fiscal
year ended December 31, 1994.                                                                          |  | *   
|           
|10(i)(E)(3) |  |  |  | Amendment to Real Estate Retention
Agreement, dated as of July 3, 2002, by
and between Alexanders, Inc. and Vornado
Realty, L.P.                                                                                                                                                                                                                     |  |     
|           
|10(i)(E)(4) |  |  |  | 59th Street Real Estate Retention
Agreement, dated as of July 3, 2002, by
and between Vornado Realty, L.P., 731
Residential LLC and 731 Commercial LLC                                                                                                                                                                                                |  |     
|           
|10(i)(F)(1) |  |  |  | Amended and Restated Management and
Development Agreement, dated as of July
3, 2002, by and between Alexanders,
Inc., the subsidiaries party thereto and
Vornado Management Corp.                                                                                                                                                                    |  |     
|           
|10(i)(F)(2) |  |  |  | 59th Street Management and Development
Agreement, dated as of July 3, 2002, by
and between 731 Commercial LLC and
Vornado Management Corp.                                                                                                                                                                                                            |  |     
|           
|10(i)(F)(3) |  |  |  | Kings Plaza Management Agreement, dated
as of May 31, 2001, by and between
Alexanders Kings Plaza LLC and Vornado
Management Corp.                                                                                                                                                                                                                   |  |     



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##### Table of Contents



|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |     
|------------ |  | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit      |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |     
|No.          |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Page
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |     
|            
|10(ii)(A)(3) |  |  |  | Agreement of Lease for Rego Park, Queens,
New York, between Alexanders, Inc. and
Sears Roebuck & Co. Incorporated herein
by reference from Exhibit 10.1 to the
Registrants Quarterly Report on Form
10-Q for the fiscal quarter ended March
31, 1994.                                                                                                                                                                                                                |  | *   
|            
|10(ii)(A)(4) |  |  |  | Lease for Roosevelt Avenue, Flushing, New
York, dated as of December 1, 1992,
between the Company, as landlord, and
Caldor, as tenant. Incorporated herein
by reference from Exhibit (ii)(E)(7) to
the Registrants Form 10-K for the fiscal
year ended July 25, 1992.                                                                                                                                                                                                 |  | *   
|            
|10(ii)(A)(4) |  |  |  | First Amendment to Sublease for Roosevelt
Avenue, Flushing, New York, dated as of
February 22, 1995 between the Company, as
sublandlord, and Caldor, as tenant.
Incorporated herein by reference from
Exhibit 10(ii)(A)(8)(b) to the
Registrants Form 10-K for the fiscal
year ended December 31, 1994.                                                                                                                                                               |  | *   
|            
|10(ii)(A)(5) |  |  |  | Lease Agreement, dated March 1, 1993 by
and between the Company and Alex Third
Avenue Acquisition Associates.
Incorporated by reference from Exhibit
10(ii)(F) to the Registrants Form 10-K
for the fiscal year ended July 31, 1993.                                                                                                                                                                                                                                  |  | *   
|            
|10(ii)(A)(6) |  |  |  | Agreement of Lease for Rego Park, Queens,
New York, between the Company and
Marshalls of Richfield, MN., Inc., dated
as of March 1, 1995. Incorporated herein
by reference from Exhibit
10(ii)(A)(12)(a) to the Registrants Form
10-K for the fiscal year ended December
31, 1994.                                                                                                                                                                                    |  | *   
|            
|10(ii)(A)(7) |  |  |  | Guaranty, dated March 1, 1995, of the
Lease described in Exhibit
10(ii)(A)(6)(a) above by the Company.
Incorporated herein by reference from
Exhibit 10(ii)(A)(12)(b) to the
Registrants Form 10-K for the fiscal
year ended December 31, 1994.                                                                                                                                                                                                                       |  | *   
|            
|10(iii)(B)   |  |  |  | Employment Agreement, dated February 9,
1995, between the Company and Stephen
Mann. Incorporated herein by reference
from Exhibit 10(iii)(B) to the
Registrants Form 10-K for the fiscal
year ended December 31, 1994.                                                                                                                                                                                                                                                |  | *   
|            
|10(iv)(A)    |  |  |  | Registrants Omnibus Stock Plan, as
amended, dated May 28, 1997.
Incorporated herein by reference from
Exhibit 10 to the Registrants Form 10-Q
for the fiscal quarter ended June 30,
1997.                                                                                                                                                                                                                                                                            |  | *   
|            
|10(v)(A)(1)  |  |  |  | Amended and Restated Consolidated
Mortgage and Security Agreement dated as
of May 31, 2001 among Alexanders Kings
Plaza L.L.C. as mortgagor, Alexanders of
King L.L.C., as mortgagor and Kings
Parking L.L.C., as mortgagor,
collectively borrower, to Morgan Guaranty
Trust Company of New York, as mortgagee.
Incorporated herein by reference from
Exhibit 10(v) A1 to the Registrants
Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2001. |  | *   
|            
|10(v)(A)(2)  |  |  |  | Amended, Restated and Consolidated
Promissory Note, dated as of May 31, 2001
by and between Alexanders Kings Plaza
L.L.C., Alexanders of Kings L.L.C. and
Kings Parking L.L.C., collectively
borrower, and Morgan Guaranty Trust
Company of New York, lender. Incorporated
herein by reference from Exhibit 10(v) A2
to the Registrants Quarterly Report on
Form 10-Q for the fiscal quarter ended
June 30, 2001.                                                   |  | *   



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##### Table of Contents



|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                            |  |     
|----------- |  | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----
|Exhibit     |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                            |  |     
|No.         |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                            |  | Page
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                            |  |     
|           
|10(v)(A)(3) |  |  |  | Cash Management Agreement dated as of May
31, 2001 by and between Alexanders Kings
Plaza L.L.C., Alexanders of Kings L.L.C.
and Kings Parking L.L.C., collectively
borrower, and Morgan Guaranty Trust
Company of New York, lender. Incorporated
herein by reference from Exhibit 10(v) A3
to the Registrants Quarterly Report on
Form 10-Q for the fiscal quarter ended
June 30, 2001. |  | *   
|           
|10(v)(A)(4) |  |  |  | Note modification and Severance Agreement
dated as of November 26, 2001, between
Alexanders Kings Plaza L.L.C.,
Alexanders of Kings L.L.C. and Kings
Parking L.L.C., collectively borrower and
JP Morgan Chase Bank of New York, lender.
Incorporated herein by reference from
Exhibit 10(v)(A)(4) to the Registrants
Form 10-K for the fiscal year ended
December 31, 2001.            |  | *   
|           
|10(v)(B)(1) |  |  |  | Agreement of Lease dated as of April 30,
2001 between Seven Thirty One Limited
Partnership, landlord, and Bloomberg
L.P., tenant. Incorporated herein by
reference from Exhibit 10(v) B to the
Registrants Quarterly Report on Form
10-Q for the fiscal quarter ended June
30, 2001.                                                                                                      |  | *   
|           
|10(v)(B)(2) |  |  |  | First Amendment of Lease, dated as of
April 19, 2002, between Seven Thirty One
Limited Partnership, landlord and
Bloomberg L.P., tenant                                                                                                                                                                                                                                                    |  |     
|           
|10(v)(C)(1) |  |  |  | Loan Agreement dated as of October 2,
2001 by and between ALX of Paramus LLC,
as borrower, and SVENSKA HANDELSBANKEN AB
(publ), as lender. Incorporated herein
by reference from Exhibit 10(v)(C)(1) to
the Registrants Form 10-K for the fiscal
year ended December 31, 2001.                                                                                                            |  | *   
|           
|10(v)(C)(2) |  |  |  | Mortgage, Security Agreement and Fixture
Financing Statement dated as of October
2, 2001 by and between ALX of Paramus
LLC, as borrower, and SVENSKA
HANDELSBANKEN AB (publ), as lender.
Incorporated herein by reference from
Exhibit 10(v)(C)(2) to the Registrants
Form 10-K for the fiscal year ended
December 31, 2001.                                                              |  | *   
|           
|10(v)(C)(3) |  |  |  | Environmental undertaking letter dated as
of October 2, 2001 by and between ALX of
Paramus LLC, as borrower, and SVENSKA
HANDELSBANKEN AB (publ), as lender.
Incorporated herein by reference from
Exhibit 10(v)(C)(3) to the Registrants
Form 10-K for the fiscal year ended
December 31, 2001.                                                                                          |  | *   
|           
|10(v)(C)(4) |  |  |  | Lease dated as of October 2, 2001 by and
between ALX of Paramus LLC, as Landlord,
and IKEA Property, Inc. as Tenant.
Incorporated herein by reference from
Exhibit 10(v)(C)(4) to the Registrants
Form 10-K for the fiscal year ended
December 31, 2001.                                                                                                                                  |  | *   



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|- |  | -------------------------

20