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EXHIBIT INDEX ON PAGE 22

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended: March 31, 2003

or

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

For the transition period from: _____________________ to _____________________

Commission File Number: 1-6064

ALEXANDERS, INC.



---



(Exact name of registrant as specified in its charter)


|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|Delaware                                                       |  | 51-0100517                             
|                                                               |  |                                        
|(State or other jurisdiction of incorporation
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.

|    |  |     |  |       |  |   
|--- |  | --- |  | ----- |  | --
|[X] |  | Yes |  | [   ] |  | No

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2).

|    |  |     |  |       |  |   
|--- |  | --- |  | ----- |  | --
|[X] |  | Yes |  | [   ] |  | No

As of April 19, 2003 there were 5,000,850 shares of common stock, par value $1
per share outstanding.





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TABLE OF CONTENTS



|                                            |                                                                                               |                                            |  |  |  |  |  | 
|------------------------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------ |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION              
|                                            | Item 1. Financial Statements                                                                 
|                                            |                                                                                               | CONSOLIDATED BALANCE SHEETS               
|                                            |                                                                                               | CONSOLIDATED STATEMENTS OF INCOME         
|                                            |                                                                                               | 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                            
|                                            | Item 4. Controls and Procedures                                                              
|PART II. OTHER INFORMATION                 
|                                            | Item 1. Legal Proceedings                                                                    
|                                            | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                                 
|CERTIFICATION                              
|EXHIBIT INDEX                              
|LETTER RE: UNAUDITED INTERIM FINANCIAL INFO



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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 March 31, 2003 (unaudited) and December 31,
2002                             |    |             | 3  | 
|                               |                                                                                               | Consolidated
Statements of Income (unaudited) for the Three Months Ended
March 31, 2003 and March 31, 2002     |    |             | 4  | 
|                               |                                                                                               | Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2003 and March 31, 2002 |    |             | 5  | 
|                               |                                                                                               | Notes to Consolidated Financial Statements (unaudited)                                                         |    |             | 6  | 
|                               |                                                                                               | Independent Accountants Report                                                                                |    |             | 11 | 
|                               | Item 2.
Managements Discussion and Analysis of Financial Condition and Results of Operations |                                                                                                                |    | 12          |   
|                               | Item 3. Quantitative and Qualitative Disclosures about Market Risk                            |                                                                                                                |    | 17          |   
|                               | Item 4. Control and Procedures                                                                |                                                                                                                |    | 17          |   
|PART II. Other Information:    |                                                                                               |                                                                                                                |    |            
|                               | Item 1. Legal Proceedings                                                                     |                                                                                                                |    | 18          |   
|                               | Item 6. Exhibits and Reports on Form 8-K                                                      |                                                                                                                |    | 18          |   
|Signatures                     |                                                                                               |                                                                                                                | 19 |            
|Certifications                 |                                                                                               |                                                                                                                | 20 |            
|Exhibit Index                  |                                                                                               |                                                                                                                | 22 |            

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)

|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |         |         | 
|--------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ----------- | ------- | --------- | ------- | ------------ | ------- | ------- | ------- | 
|                                                                                                                            |                                                                                                                 |             |         | March 31, |         | December 31,
|                                                                                                                            |                                                                                                                 |             |         | 2003      |         | 2002        
|                                                                                                                            |                                                                                                                 |             |         |           |         |             
|ASSETS:                                                                                                                     |                                                                                                                 | (Unaudited) |         |           |         |             
|Real estate, at cost:                                                                                                       |                                                                                                                 |             |         |           |         |              |         |        
|                                                                                                                            | Land                                                                                                            |             | $       | 90,768    |         |              | $       | 90,768  |        
|                                                                                                                            | Buildings, leaseholds and leasehold improvements                                                                |             |         | 173,368   |         |              |         | 173,368 |        
|                                                                                                                            | Construction in progress (including Vornado Realty Trust
(Vornado) fees of $16,603 in 2003 and $13,325 in 2002) |             |         | 381,565   |         |              |         | 315,781 |        
|                                                                                                                            | Air rights acquired for Lexington Avenue Development                                                            |             |         | 17,531    |         |              |         | 17,531  |        
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        
|                                                                                                                            |                                                                                                                 | Total       |         |           | 663,232 |              |         |         | 597,448 | 
|                                                                                                                            | Less accumulated depreciation and amortization                                                                  |             |         | (57,057   | )       |              |         | (55,975 | )      
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        
|                                                                                                                            | Real estate, net                                                                                                |             |         | 606,175   |         |              |         | 541,473 |        
|Asset held for sale                                                                                                         |                                                                                                                 |             | 1,502   |           |         |              | 1,502   |        
|Cash and cash equivalents                                                                                                   |                                                                                                                 |             | 14,051  |           |         |              | 45,239  |        
|Restricted cash                                                                                                             |                                                                                                                 |             | 5,285   |           |         |              | 2,425   |        
|Accounts receivable, net of allowance for doubtful accounts
of $256 in 2003 and $96 in 2002                                 |                                                                                                                 |             | 2,715   |           |         |              | 2,508   |        
|Receivable arising from the straight-lining of rents,                                                                       |                                                                                                                 |             | 21,230  |           |         |              | 20,670  |        
|Deferred lease and other property costs (including unamortized Vornado
leasing fees of $14,736 in 2003 and $14,837 in 2002) |                                                                                                                 |             | 27,443  |           |         |              | 27,765  |        
|Deferred debt expense                                                                                                       |                                                                                                                 |             | 13,652  |           |         |              | 14,619  |        
|Other assets                                                                                                                |                                                                                                                 |             | 5,727   |           |         |              | 8,711   |        
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        
|TOTAL ASSETS                                                                                                                |                                                                                                                 | $           | 697,780 |           |         | $            | 664,912 |        
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        
|LIABILITIES AND STOCKHOLDERS EQUITY:                                                                                       |                                                                                                                 |             |         |           |         |              |         |        
|Debt (including $119,000 due to Vornado
in 2003 and 2002)                                                                   |                                                                                                                 | $           | 567,608 |           |         | $            | 543,807 |        
|Amounts due to Vornado                                                                                                      |                                                                                                                 |             | 13,740  |           |         |              | 11,294  |        
|Accounts payable and accrued expenses                                                                                       |                                                                                                                 |             | 38,807  |           |         |              | 36,895  |        
|Other liabilities                                                                                                           |                                                                                                                 |             | 4,156   |           |         |              | 4,251   |        
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        
|TOTAL LIABILITIES                                                                                                           |                                                                                                                 |             | 624,311 |           |         |              | 596,247 |        
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        
|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                                                                                                           |                                                                                                                 |             | 44,412  |           |         |              | 39,608  |        
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        
|                                                                                                                            |                                                                                                                 |             | 74,429  |           |         |              | 69,625  |        
|Less treasury shares, 172,600 shares at cost                                                                                |                                                                                                                 |             | (960    | )         |         |              | (960    | )      
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        
|Total stockholders equity                                                                                                  |                                                                                                                 |             | 73,469  |           |         |              | 68,665  |        
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                                                  |                                                                                                                 | $           | 697,780 |           |         | $            | 664,912 |        
|                                                                                                                            |                                                                                                                 |             |         |           |         |              |         |        

See notes to consolidated financial statements.

3



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ALEXANDERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(amounts in thousands except per share amounts)

|                 |                                              |                                                                                          |                         |   |                            |      |        |   |        |     | 
|---------------- | -------------------------------------------- | ---------------------------------------------------------------------------------------- | ----------------------- | - | -------------------------- | ---- | ------ | - | ------ | --- | 
|                 |                                              |                                                                                          |                         |   | For The Three Months Ended
|                 |                                              |                                                                                          |                         |   | March 31,                 
|                 |                                              |                                                                                          |                         |   |                           
|                 |                                              |                                                                                          |                         |   | 2003                       |      | 2002  
|                 |                                              |                                                                                          |                         |   |                            |      |       
|REVENUES:        |                                              |                                                                                          |                         |   |                            |      |        |  
|                 |                                              | Property rentals                                                                         |                         | $ | 12,672                     |      |        | $ | 12,405 |    
|                 |                                              | Expense reimbursements                                                                   |                         |   | 6,896                      |      |        |   | 6,317  |    
|                 |                                              |                                                                                          |                         |   |                            |      |        |  
|Total revenues   |                                              |                                                                                          | 19,568                  |   |                            |      | 18,722 |  
|                 |                                              |                                                                                          |                         |   |                            |      |        |  
|EXPENSES:        |                                              |                                                                                          |                         |   |                            |      |        |  
|                 |                                              | Operating (including management fees of $363 and $366
to Vornado)                        |                         |   | 8,913                      |      |        |   | 6,870  |    
|                 |                                              | General and administrative (including management
fees of $540 to Vornado in each period) |                         |   | 923                        |      |        |   | 865    |    
|                 |                                              | Depreciation and amortization                                                            |                         |   | 1,607                      |      |        |   | 1,612  |    
|                 |                                              |                                                                                          |                         |   |                            |      |        |  
|Total expenses   |                                              |                                                                                          | 11,443                  |   |                            |      | 9,347  |  
|                 |                                              |                                                                                          |                         |   |                            |      |        |  
|OPERATING INCOME |                                              |                                                                                          | 8,125                   |   |                            |      | 9,375  |  
|                 |                                              | Interest and debt expense
(including interest on loans from Vornado)                     |                         |   | (3,200                     | )    |        |   | (6,578 | )  
|                 |                                              | Interest and other income, net                                                           |                         |   | 123                        |      |        |   | 667    |    
|                 |                                              |                                                                                          |                         |   |                            |      |        |  
|                 |                                              | Income from continuing operations                                                        |                         |   | 5,048                      |      |        |   | 3,464  |    
|                 |                                              | (Loss) income from discontinued operations                                               |                         |   | (244                       | )    |        |   | 67     |    
|                 |                                              |                                                                                          |                         |   |                            |      |        |  
|NET INCOME       |                                              | $                                                                                        | 4,804                   |   |                            | $    | 3,531  |  
|                 |                                              |                                                                                          |                         |   |                            |      |        |  
|                 | Income (loss) per share (basic and diluted): |                                                                                          |                         |   |                            |      |        |   |       
|                 |                                              |                                                                                          | Continuing operations   |   | $                          | 1.01 |        |   | $      | .69 | 
|                 |                                              |                                                                                          | Discontinued operations |   |                            | (.05 | )      |   |        | .02 | 
|                 |                                              |                                                                                          |                         |   |                            |      |        |  
|                 |                                              |                                                                                          | Net income              |   | $                          | .96  |        |   | $      | .71 | 
|                 |                                              |                                                                                          |                         |   |                            |      |        |  

See notes to consolidated financial statements.

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ALEXANDERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(amounts in thousands)

|                                                                                                                    |                                                               |   |                                      |         |      |   |         |         |  
|------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------- | - | ------------------------------------ | ------- | ---- | - | ------- | ------- | -
|                                                                                                                    |                                                               |   | For The Three Months Ended March 31,
|                                                                                                                    |                                                               |   |                                     
|                                                                                                                    |                                                               |   | 2003                                 |         | 2002
|                                                                                                                    |                                                               |   |                                      |         |     
|Cash Flows From Operating Activities:                                                                               |                                                               |   |                                      |         |      |   |         |        
|Income from continuing operations                                                                                   |                                                               | $ | 5,048                                |         |      | $ | 3,464   |        
|Adjustments to reconcile income from continuing operations to net cash
provided by continuing operating activities: |                                                               |   |                                      |         |      |   |         |        
|                                                                                                                    | Depreciation and amortization (including debt issuance costs) |   |                                      | 2,574   |      |   |         | 1,811   |  
|                                                                                                                    | Straight-lining of rental income,                             |   |                                      | (560    | )    |   |         | (744    | )
|Change in assets and liabilities:                                                                                   |                                                               |   |                                      |         |      |   |         |        
|                                                                                                                    | Accounts receivable                                           |   |                                      | (207    | )    |   |         | (926    | )
|                                                                                                                    | Amounts due to Vornado and its affiliate                      |   |                                      | (644    | )    |   |         | (985    | )
|                                                                                                                    | Accounts payable and accrued expenses                         |   |                                      | 792     |      |   |         | (3,146  | )
|                                                                                                                    | Other liabilities                                             |   |                                      | (95     | )    |   |         | 233     |  
|                                                                                                                    | Other                                                         |   |                                      | 2,781   |      |   |         | 1,152   |  
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Net cash provided by operating activities of continuing operations                                                  |                                                               |   | 9,689                                |         |      |   | 859     |        
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|(Loss) income from discontinued operations                                                                          |                                                               |   | (244                                 | )       |      |   | 67      |        
|                                                                                                                    | Depreciation and amortization                                 |   |                                      |        |      |   |         | 31      |  
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Net cash (used in) provided by discontinued operations                                                              |                                                               |   | (244                                 | )       |      |   | 98      |        
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Net cash provided by operating activities                                                                           |                                                               |   | 9,445                                |         |      |   | 957     |        
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Cash Flows From Investing Activities:                                                                               |                                                               |   |                                      |         |      |   |         |        
|Cash flows from continuing operations:                                                                              |                                                               |   |                                      |         |      |   |         |        
|                                                                                                                    | Additions to real estate                                      |   |                                      | (61,574 | )    |   |         | (12,223 | )
|                                                                                                                    | Cash restricted for operating liabilities                     |   |                                      | (2,932  | )    |   |         | (1,989  | )
|                                                                                                                    | Cash made available for operating liabilities                 |   |                                      | 72      |      |   |         |        |  
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Net cash used in continuing operations                                                                              |                                                               |   | (64,434                              | )       |      |   | (14,212 | )      
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Net cash used in investing activities                                                                               |                                                               |   | (64,434                              | )       |      |   | (14,212 | )      
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Cash Flows From Financing Activities:                                                                               |                                                               |   |                                      |         |      |   |         |        
|                                                                                                                    | Issuance of debt                                              |   |                                      | 24,518  |      |   |         |        |  
|                                                                                                                    | Debt repayments                                               |   |                                      | (717    | )    |   |         | (670    | )
|                                                                                                                    | Deferred debt expense                                         |   |                                      |        |      |   |         | (36     | )
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Net cash provided by (used in) financing activities                                                                 |                                                               |   | 23,801                               |         |      |   | (706    | )      
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Net decrease in cash and cash equivalents                                                                           |                                                               |   | (31,188                              | )       |      |   | (13,961 | )      
|Cash and cash equivalents at beginning of period                                                                    |                                                               |   | 45,239                               |         |      |   | 135,258 |        
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Cash and cash equivalents at end of period                                                                          |                                                               | $ | 14,051                               |         |      | $ | 121,297 |        
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        
|Supplemental disclosure of cash flow information:                                                                   |                                                               |   |                                      |         |      |   |         |        
|Cash payments for interest (of which $8,731 and $4,685
have been capitalized)                                       |                                                               | $ | 10,914                               |         |      | $ | 12,533  |        
|                                                                                                                    |                                                               |   |                                      |         |      |   |         |        

See notes to consolidated financial statements.

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ALEXANDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1. CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Balance Sheet as of March 31, 2003, the Consolidated
Statements of Operations for the three months ended March 31, 2003 and 2002,
and the Consolidated Statements of Cash Flows for the three months ended March
31, 2003 and 2002 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 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, 2002 as filed with the Securities and Exchange
Commission. The results of operations for the three months ended March 31,
2003 are not necessarily indicative of the operating results for the full year.

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.

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 or sold during 2002 and thereafter as discontinued
operations.

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

Vornado owns 33.1% of the Companys Common Stock as of March 31, 2003.
Steven Roth is Chief Executive Officer and a director of the Company, the
Managing General Partner of Interstate Properties (Interstate) and Chairman
of the Board and Chief Executive Officer of Vornado. At March 31, 2003, Mr.
Roth, Interstate and the other two general partners of Interstate, David
Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and
trustees of Vornado) own, in the aggregate, 27.5% of the outstanding common
stock of the Company, and 12.9% of the outstanding common shares of beneficial
interest of Vornado.

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 management and development
agreements with Vornado 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 are at
15% per annum.

The other fees payable by the Company to Vornado consist of (i) an annual
management fee of $3,000,000 plus 3% of the gross income from the Kings Plaza
Mall, (ii) a development fee equal to 6% of development costs, as defined, with
a minimum guaranteed fee of $750,000 per annum, and (iii) a leasing fee. The
development fee for
the Lexington Avenue project is estimated to be approximately $26,300,000. At
March 31, 2003, the Company
owed Vornado $10,235,000 in development fees. The leasing fee to Vornado
is equal to (i) 3% of the gross proceeds, as defined, from the sale of an asset
and (ii) in the event of a lease or sublease of an asset, 3% of lease rent
6Table of ContentsALEXANDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)for
the first ten years of a lease term, 2% of lease rent for the eleventh through
the twentieth years of a lease term and 1% of lease rent for the twenty-first
through thirtieth year of a lease term, subject to the payment of rents by
tenants. Such amount is payable annually in an amount not to exceed
$2,500,000, until the present value of such installments (calculated at a
discount rate of 9% per annum) equals the amount that would have been paid had
it been paid at the time the transactions which gave rise to the commissions
occurred. Pursuant to the leasing agreement, in the event third party real
estate brokers are used, the fees to Vornado increase by 1% and Vornado is
responsible for the fees to the third party real estate brokers.The following table shows the total amounts incurred under the above
mentioned agreements.

|                                                               |  |                    |       |      |  |   |       | 
|-------------------------------------------------------------- |  | ------------------ | ----- | ---- |  | - | ----- | 
|                                                               |  | Three Months Ended
|                                                               |  | March 31,         
|                                                               |  |                   
|(amounts in thousands)                                         |  | 2003               |       | 2002
|                                                               |  |                    |       |     
|Management fee                                                 |  | $                  | 903   |      |  | $ | 906   | 
|Development fee, guarantee fee and rent
for development office |  |                    | 3,371 |      |  |   | 1,423 | 
|Leasing and other fees                                         |  |                    | 535   |      |  |   | 767   | 
|                                                               |  |                    |       |      |  |   |       | 
|                                                               |  | $                  | 4,809 |      |  | $ | 3,096 | 
|                                                               |  |                    |       |      |  |   |       | 

At March 31, 2003, the Company was indebted to Vornado in the amount of
$119,000,000 comprised of (i) $95,000,000 financing, and (ii) $24,000,000 under
a $50,000,000 line of credit (which carries a 1% unused commitment fee). The
interest rate on the loan and line of credit is 12.48% and the maturity has
been extended to the earlier of January 3, 2006 or the date the Lexington
Avenue construction loan is repaid in full. The interest rate on the loan and
line of credit will reset quarterly, using the same spread to treasuries and a
3.00% floor for treasuries. The Company incurred interest on its loans from
Vornado of $3,778,000 and $4,082,000 in the three months ended March 31, 2003
and 2002. At March 31, 2003, $26,000,000 was available under the line of
credit.

3. DEBT

Below is a summary of the Companys outstanding debt.

|                                                                                   |                                |             |          |      |                |   |                     |      |           |   |               |        |         |   |         |        | 
|---------------------------------------------------------------------------------- | ------------------------------ | ----------- | -------- | ---- | -------------- | - | ------------------- | ---- | --------- | - | ------------- | ------ | ------- | - | ------- | ------ | 
|                                                                                   |                                |             |          |      |                |   |                     |      |           |   | Balance as of
|                                                                                   |                                |             |          |      |                |   |                     |      |           |   |              
|                                                                                   |                                |             |          |      |                |   | Interest Rate as of |      | March 31, |   | December 31, 
|                                                                                   |                                |             | Maturity |      | March 31, 2003 |   | 2003                |      | 2002     
|(amounts in thousands)                                                             |                                |             |          |      |                |   |                     |     
|                                                                                   |                                | January     |          |      |                |   |                     |      |           |   |               |        |         |  
|Term loan to Vornado                                                               |                                |             | 2006     |      |                |   | 12.48               | %    |           | $ | 119,000       |        |         | $ | 119,000 |       
|First mortgage loan, secured by
the Companys Kings Plaza Regional Shopping Center |                                | June2011    |          |      | 7.46           | % |                     |      | 218,590   |   |               |        | 219,307 |  
|First mortgage loan, secured by
the Companys Rego Park I Shopping Center          |                                | May2009     |          |      | 7.25           | % |                     |      | 82,000    |   |               |        | 82,000  |  
|First mortgage loan secured by                                                     |                                | October     |          |      |                |   |                     |      |           |   |               |        |         |  
|                                                                                   | the Companys Paramus Property |             |          | 2011 |                |   |                     | 5.92 | %         |   |               | 68,000 |         |   |         | 68,000 | 
|Construction loan, secured by the
Companys Lexington Avenue Property              |                                | January2006 |          |      | 3.88           | % |                     |      | 80,018    |   |               |        | 55,500  |  
|                                                                                   |                                |             |          |      |                |   |                     |      |           |   |               |        |         |   |         |       
|                                                                                   |                                |             |          |      |                |   |                     |      |           | $ | 567,608       |        |         | $ | 543,807 |       
|                                                                                   |                                |             |          |      |                |   |                     |      |           |   |               |        |         |   |         |       

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##### Table of Contents



ALEXANDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

The scheduled principal repayments for the next five years and thereafter
are as follows:

(amounts in thousands)

|                         |      |  |         |         | 
|------------------------ | ---- |  | ------- | ------- | 
|Year Ending December 31, |      |  |         |        
|                         |      |  |         |        
|                         | 2003 |  | $       | 2,004   | 
|                         | 2004 |  |         | 3,226   | 
|                         | 2005 |  |         | 3,895   | 
|                         | 2006 |  |         | 203,217 | 
|                         | 2007 |  |         | 4,526   | 
|Thereafter               |      |  | 350,740 |        

4. LEXINGTON AVENUE

The development plans at Lexington Avenue consist of approximately 1.3
million square foot multi-use building. The building will contain
approximately 154,000 net rentable square feet of retail (45,000 square feet of
which has been leased to Hennes & Mauritz), approximately 878,000 net rentable
square feet of office (695,000 square feet of which has been leased to
Bloomberg L.P.) and approximately 248,000 net saleable square feet of
residential consisting of condominium units (through a taxable REIT
subsidiary). Construction is expected to be completed in 2005. 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 has been provided by the
Company. The Construction Loan has an interest rate of LIBOR plus 2.5%
(currently 3.88%) and a term of forty-two months subject to two one-year
extensions. The Company received funding of $80,000,000 under the Construction
Loan as of March 31, 2003. Of the total construction budget of $630,000,000,
$246,000,000 has been expended through March 31, 2003 and an additional
$143,000,000 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.

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.

5. COMMITMENTS AND CONTINGENCIES

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 since the Companys current all risk insurance policies, differ
from policies in effect prior to September 11, 2001 as to coverage for
terrorist acts, there are breaches of these debt instruments that allow the
lenders to declare an event of default and accelerate repayment of the debt.
In addition, if lenders insist on coverage for these risks, as it existed prior
to September 11, 2001, 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 ($2,176,000 has been paid as of
March 31, 2003) for its estimated obligation with respect to the clean up

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ALEXANDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

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 Company believes 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
March 31, 2003 for possible recoveries of environmental remediation costs from
potentially responsible third parties.

Neither the Company nor any of its subsidiaries is a party to, nor is
their property the subject of, any material pending legal proceeding other than
routine litigation incidental to their businesses. 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 $8,100,000 in standby letters of credit were issued at March
31, 2003.

6. INCOME PER SHARE

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

|                                                |                                                                                                     |      |                                |       |   |  |   |       | 
|----------------------------------------------- | --------------------------------------------------------------------------------------------------- | ---- | ------------------------------ | ----- | - |  | - | ----- | 
|                                                |                                                                                                     |      | For The Three Months March 31,
|                                                |                                                                                                     |      |                               
|(amounts in thousands except per share amounts) |                                                                                                     | 2003 |                                | 2002 
|                                                |                                                                                                     |      |                                |      
|Numerator:                                      |                                                                                                     |      |                                |       |   |  |   |      
|                                                | Income from continuing operations                                                                   |      | $                              | 5,048 |   |  | $ | 3,464 | 
|                                                | (Loss) income from discontinued operations                                                          |      |                                | (244  | ) |  |   | 67    | 
|                                                |                                                                                                     |      |                                |       |   |  |   |      
|                                                | Net income                                                                                          |      | $                              | 4,804 |   |  | $ | 3,531 | 
|                                                |                                                                                                     |      |                                |       |   |  |   |      
|Denominator:                                    |                                                                                                     |      |                                |       |   |  |   |      
|                                                | Denominator for basic income per share 
weighted average shares                                    |      |                                | 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 | 
|                                                |                                                                                                     |      |                                |       |   |  |   |      
|INCOME PER COMMON SHARE 
BASIC AND DILUTED:    |                                                                                                     |      |                                |       |   |  |   |      
|                                                | Income from continuing operations                                                                   |      | $                              | 1.01  |   |  | $ | .69   | 
|                                                | (Loss) income from discontinued operations                                                          |      |                                | (.05  | ) |  |   | .02   | 
|                                                |                                                                                                     |      |                                |       |   |  |   |      
|                                                | Net income per common share                                                                         |      | $                              | .96   |   |  | $ | .71   | 
|                                                |                                                                                                     |      |                                |       |   |  |   |       | 

Options to purchase 125,000 shares of the Companys common stock were not
included in the computation of diluted income per share because the options
exercise price was greater than the average market price of the common shares
for the periods presented.

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ALEXANDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

7. DISCONTINUED OPERATIONS

Discontinued operations include the Companys Third Avenue property which
was sold on August 30, 2002 and the Flushing property which is shown on the
Balance Sheet as an Asset held for sale. Details of the operations at these
properties are as follows:

|                                           |  |                                |      |      |  |   |     | 
|------------------------------------------ |  | ------------------------------ | ---- | ---- |  | - | --- | 
|                                           |  | For The Three Months March 31,
|                                           |  |                               
|(amounts in thousands)                     |  | 2003                           |      | 2002
|                                           |  |                                |      |     
|Total revenues                             |  | $                              | 155  |      |  | $ | 580 | 
|Total expenses                             |  |                                | 399  |      |  |   | 513 | 
|                                           |  |                                |      |      |  |   |     | 
|(Loss) income from discontinued operations |  | $                              | (244 | )    |  | $ | 67  | 
|                                           |  |                                |      |      |  |   |     | 

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 $1,875,000 from the purchaser. By Notice of Default dated August 16, 2002,
the Landlord of the premises notified the Company of certain alleged defaults
under the lease, including, but not limited to the fact that the purchaser
performed unauthorized construction at the premises. The Company commenced an
action for injunctive relief and a declaration of the rights and obligations of
the parties under the lease. The Company has obtained an injunction which
temporarily restrains the Landlord from terminating the lease. On September 6, 2002, the scheduled closing date,
the Company notified the purchaser that the purchaser failed to close and is in
default of its obligations under the purchase contract. While negotiations are
in process with the parties to attempt to settle the disputes, there can be no
assurance that the sale will be consummated, or that the dispute with the
Landlord will be resolved favorably, or that the deposit will not be required
to be returned. The Company continues to explore all of its options, including
subleasing the property.

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##### Table of Contents



INDEPENDENT ACCOUNTANTS REPORT

Shareholders and Board of Directors
Alexanders Inc.
New York, New York

We have reviewed the accompanying condensed consolidated balance sheet of
Alexanders Inc. and Subsidiaries as of March 31, 2003, and the related
condensed consolidated statements of income and cash flows for the three-month
periods ended March 31, 2003 and 2002. These financial statements are the
responsibility of the Companys management.

We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and of making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with auditing standards generally accepted in the United States
of America, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express such
an opinion.

Based on our reviews, we are not aware of any material modifications that
should be made to such condensed consolidated financial statements for them to
be in conformity with accounting principles generally accepted in the United
States of America.

We have previously audited, in accordance with auditing standards
generally accepted in the United States of America, the consolidated balance
sheet of Alexanders Inc. and Subsidiaries as of December 31, 2002, and the
related consolidated statements of income, shareholders equity, and cash flows
for the year then ended (not presented herein); and in our report dated March
5, 2003, we expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the accompanying
condensed consolidated balance sheet as of December 31, 2002 is fairly stated,
in all material respects, in relation to the consolidated balance sheet from
which it has been derived.

DELOITTE & TOUCHE LLP



Parsippany, New Jersey
May 7, 2003

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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.

For these statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995. You are cautioned not to place undue reliance on our
forward-looking statements, which speak only as of the date of this quarterly
report on Form 10-Q or the date of any document incorporated by reference. All
subsequent written and oral forward-looking statements attributable to us or
any person acting on our behalf are expressly qualified in their entirety by
the cautionary statements contained or referred to in this section. We do not
undertake any obligation to release publicly any revisions to our
forward-looking statements to reflect events or circumstances after the date of
this Form 10-Q.

Managements Discussion and Analysis of Financial Condition and Results of
Operations discusses the Companys consolidated financial statements for the
three months ended March 31, 2003 and 2002. 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, 2002.

Critical Accounting Policies

In preparing the consolidated financial statements management has made
estimates and assumptions that affect the reported amounts of 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. Set forth below is a summary of the accounting policies
that management believes are critical to the preparation of the consolidated
financial statements. The summary should be read in conjunction with the more
complete discussion of significant accounting policies included in Note 2 to
the consolidated financial statements of the Companys Annual Report on Form
10-K as of and for the year ended December 31, 2002.

Real Estate

Real estate is carried at cost, net of accumulated depreciation and
amortization. Maintenance and repairs are charged to operations as incurred.
Depreciation requires an estimate by management of the useful life of each
property as well as an allocation of the costs associated with a property to
its various components. If the Company does not allocate these costs
appropriately or incorrectly estimates the useful lives of its real estate,
depreciation expense may be misstated. When real estate and other property is
undergoing development activities, all property operating expenses, including
interest expense, are capitalized to the cost of the real property to the
extent that management believes such costs are recoverable through the value of
the property. The Companys properties are reviewed for impairment if events
or circumstances indicate that the carrying amount of the asset may not be
recoverable. In such event, a comparison is made of the current and projected
operating cash flows of each such property into the foreseeable future on an
undiscounted basis, to the carrying amount of such property. If the Company
incorrectly estimates the value of the asset or the undiscounted cash flows,
the impairment charges may be different.

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Revenue Recognition

Base rent  income arising from tenant leases. These rents are recognized
over the non-cancellable term of the related leases on a straight-line basis
which included the rent steps and free rent abatements under the leases.

Percentage Rents  income arising from retail tenant leases which are
contingent upon the sales of the tenant exceeding a defined threshold. These
rents are recognized in accordance with SAB 101, which states that this income
is to be recognized only after the contingency has been removed (i.e. sales
threshold have been achieved).

Expenses Reimbursement Income  income arising from tenant leases which
provide for the recovery of all or a portion of the operating expenses and real
estate taxes of the respective property. This income is accrued in the same
periods as the expenses are incurred.

IncomeTaxes

The Company operates in a manner intended to enable it to continue to
qualify as a REIT under sections 856 through 860 of the Internal Revenue Code
of 1986, as amended (the Code). Under the Code, the Companys net operating
loss (NOL) carryovers generally would be available to offset the amount of
the Companys REIT taxable income that otherwise would be required to be
distributed as a dividend to its stockholders.

Results of Operations

The Company had net income of $4,804,000 in the quarter ended March 31,
2003, compared to $3,531,000 in the quarter ended March 31, 2002, an increase
of $1,273,000. 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 and sold as discontinued operations.

Property rentals were $12,672,000 in the quarter ended March 31, 2003,
compared to $12,405,000 in the prior years quarter, an increase of $267,000.
This increases resulted primarily from an increase in occupancy at the Kings
Plaza Regional Shopping Center.

Tenant expense reimbursements were $6,896,000 in the quarter ended March
31, 2003, compared to $6,317,000 in the prior years quarter, an increase of
$579,000. This increases resulted from a $906,000 increase in tenant
reimbursements, offset by $327,000 of adjustments to accruals for the year
ended December 31,2002, based on actual expenses for those periods.

Operating expenses were $8,913,000 in the quarter ended March 31, 2003,
compared to $6,870,000 in the prior years quarter, an increase of $2,043,000.
Of this increase (i) $363,000 resulted primarily from higher fuel costs for the
utility plant at the Companys Kings Plaza Regional Shopping Center, (ii)
$307,000 resulted from bad debt expense this year as compared to a bad debt
recovery in the prior years quarter and (iii) $180,000 resulted from higher
garage expenses. The balance of the increase was due to higher insurance, real
estate taxes and repairs and maintenance, which were billed to tenants.

Interest and debt expense was $3,200,000 in the quarter ended March 31,
2003, compared to $6,578,000 in the prior year quarter a decrease of
$3,378,000. The decrease in interest expense resulting from higher capitalized
interest relating to the Lexington Avenue development property (interest
expense of $8,731,000 was capitalized in 2003, as compared to $4,685,000 in
2002) and a decrease in average interest rates from 8.55% to 7.98%.

Interest and other income, net was $123,000 in the quarter ended March 31,
2003, compared to $667,000 in the prior years quarter, a decrease of $544,000.
This decrease resulted primarily from lower average cash invested due to
funding of the Lexington Avenue development project.

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Discontinued operations include the Companys Third Avenue property which
was sold on August 30, 2002 and the Flushing property which is shown on the
Balance Sheet as an Asset held for sale. Details of the operations are as
follows:

|                                           |  |                                      |      |      |  |   |     | 
|------------------------------------------ |  | ------------------------------------ | ---- | ---- |  | - | --- | 
|                                           |  | For The Three Months Ended March 31,
|                                           |  |                                     
|(amounts in thousands)                     |  | 2003                                 |      | 2002
|                                           |  |                                      |      |     
|Total revenues                             |  | $                                    | 155  |      |  | $ | 580 | 
|Total expenses                             |  |                                      | 399  |      |  |   | 513 | 
|                                           |  |                                      |      |      |  |   |    
|(Loss) Income from discontinued operations |  | $                                    | (244 | )    |  | $ | 67  | 
|                                           |  |                                      |      |      |  |   |    

The decrease in revenues and expenses in 2003 were due to the sale of the
Third Avenue property in August of 2002.

Liquidity and Capital Resources

Alexanders operating properties do not generate sufficient cash flow to
pay all of its expenses. After the completion of the Lexington Avenue
property, which is not expected until 2005, the Company expects that cash flow
will become positive.

Development Plans

The development plans at Lexington Avenue consist of approximately 1.3
million square foot multi-use building. The building will contain
approximately 154,000 net rentable square feet of retail (45,000 square feet of
which has been leased to Hennes & Mauritz), approximately 878,000 net rentable
square feet of office (695,000 square feet of which has been leased to
Bloomberg L.P.) and approximately 248,000 net saleable square feet of
residential consisting of condominium units (through a taxable REIT
subsidiary). Construction is expected to be completed in 2005. 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 has been provided by the
Company. The Construction Loan has an interest rate of LIBOR plus 2.5%
(currently 3.88%) and a term of forty-two months subject to two one-year
extensions. The Company has received funding of $80,000,000 under the
Construction Loan as of March 31, 2003. Of the total construction budget of
$630,000,000, $246,000,000 has been expended through March 31, 2003 and an
additional $143,000,000 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. If
Vornado should advance any funds under the Completion Guarantee in excess of
the $26,000,000 currently available under its line of credit with the Company,
interest on those advance are at 15% per annum.

The Companys lease with Bloomberg L.P. has an initial term of 25 years,
with a ten-year renewal option. Base annual net rent is $34,529,000 in each of
the first four years and $38,533,000 in the fifth year with a similar
percentage increase each four years thereafter.

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.

Insurance

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 since the Companys current all risk insurance policies, differ
from policies in effect prior to September 11, 2001 as to coverage for
terrorist acts, there

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are breaches of these debt instruments that allow the lenders to declare
an event of default and accelerate repayment of the debt. In addition, if
lenders insist on coverage for these risks, as it existed prior to September
11, 2001, it could adversely affect the Companys ability to finance and/or
refinance its properties, including the construction of its Lexington Avenue
development property.

Disposition of Property

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 $1,875,000 from the purchaser. By Notice of Default dated August 16, 2002,
the Landlord of the premises notified the Company of certain alleged defaults
under the lease, including, but not limited to the fact that the purchaser
performed unauthorized construction at the premises. The Company commenced an
action for injunctive relief and a declaration of the rights and obligations of
the parties under the lease. The Company has obtained an injunction which
temporarily restrains the Landlord from terminating the lease. On September 6,
2002, the scheduled closing date, the Company notified the purchaser that the
purchaser failed to close and is in default of its obligations under the
purchase contract. While negotiations are in process with the parties to
attempt to settle the disputes, there can be no assurance that the sale will be
consummated, or that the dispute with the Landlord will be resolved favorably,
or that the deposit will not be required to be returned. The Company continues
to explore all of its options, including subleasing the property.

Debt

At March 31, 2003, the Company was indebted to Vornado in the amount of
$119,000,000 comprised of (i) $95,000,000 financing, and (ii) $24,000,000 under
a $50,000,000 line of credit (which carries a 1% unused commitment fee). The
interest rate on the loan and the line of credit which is currently 12.48%,
will reset quarterly using a Treasury index (with a 3% floor) plus the same
spread to treasuries.

The Company has additional borrowing capacity of $26,000,000 under its
line of credit with Vornado. The Company can also raise additional capital
through mezzanine level borrowing (deeply subordinated debt which is not
secured by a senior interest in assets) and through the sale of securities and
assets (the Company estimates that the fair market value of its assets are
substantially in excess of their historical cost). The Company continues to
evaluate its financing alternatives.

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

Cash Flows

Three Months Ended March 31, 2003

Net cash provided by operating activities of $9,445,000 was comprised of
(i) net income of $4,804,000 (ii) non-cash items of $2,014,000, offset by and
(iii) the net change in operating assets and liabilities of $2,627,000. The
adjustments for non-cash items are comprised of depreciation and amortization
of $2,574,000, offset by the effect of straight-lining of rental income of
$560,000.

Net cash used in investing activities of $64,434,000, was comprised of
capital expenditures of $61,574,000. The capital expenditures were primarily
related to the Lexington Avenue development project.

Net cash provided by financing activities of $23,801,000 resulted
primarily from increase borrowings primarily to fund the Lexington Avenue
development project of $24,518,000, offset by debt repayments of $717,000.

15



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##### Table of Contents



Three Months Ended March 31, 2002

Net cash provided by operating activities of $957,000 was comprised of (i)
net income of $3,531,000, (ii) non-cash items of $1,098,000, offset by the net
change in operating assets and liabilities of $3,672,000. The adjustments for
non-cash items are comprised of depreciation and amortization of $1,842,000,
offset by the effect of straight-lining of rental income of $744,000.

Net cash used in investing activities of $14,212,000 was comprised of
capital expenditures of $12,223,000 and increased in restricted cash of
$1,989,000. The capital expenditures were primarily comprised of (i)
capitalized interest and other carrying costs of $5,201,000, and (ii)
excavation, foundation and predevelopment costs at the Lexington Avenue
property of $6,799,000.

Net cash used in financing activities of $706,000, resulted primarily from
debt payments of $670,000.

Funds from Operations for the Three Months Ended March 31, 2003, and 2002

Funds
from operations (FFO) was $6,411,000 in the quarter ended March 31,2003,
compared to $5,174,000 in the prior years quarter, an increase of $1,237,000.
Effective with the Companys filing of its 2003 first quarter Form 10-Q, the
Company has revised its definition of FFO to include the effect of
straight-lining of rent. This change was made in order to comply with the
Securities and Exchange Commissions recent Regulation G concerning non-GAAP
financial measures, adhere to the National Association of Real Estate
Investment Trusts (NAREITs) definition of FFO and to disclose FFO on a
comparable basis with virtually all other companies in the industry. FFO for
last years first quarter has been restated for comparability.
Income from the straight-lining of rents amounted to $560,000 for the
quarter ended March 31, 2003, and $744,000 for the quarter ended
March 31, 2002. The following table
reconciles net income to funds from operations:

|                                               |  |                            |       |      |  |   |       | 
|---------------------------------------------- |  | -------------------------- | ----- | ---- |  | - | ----- | 
|                                               |  | For The Three Months Ended
|(amounts in thousands).                        |  | March 31,                 
|                                               |  |                           
|                                               |  | 2003                       |       | 2002
|                                               |  |                            |       |     
|Net income                                     |  | $                          | 4,804 |      |  | $ | 3,531 | 
|Depreciation and amortization of
real property |  |                            | 1,607 |      |  |   | 1,643 | 
|                                               |  |                            |       |      |  |   |       | 
|Funds from operations                          |  | $                          | 6,411 |      |  | $ | 5,174 | 
|                                               |  |                            |       |      |  |   |       | 

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.
Funds from operations is computed in accordance with NAREITs standards, which
may not be comparable to funds from operations reported by other REITs that do
not define the term in accordance with NAREITs definition or that interpret
NAREITs definition differently.

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

|                       |  |                            |         |      |  |   |         |  
|---------------------- |  | -------------------------- | ------- | ---- |  | - | ------- | -
|                       |  | For The Three Months Ended
|(amounts in thousands) |  | March 31,                 
|                       |  |                           
|                       |  | 2003                       |         | 2002
|                       |  |                            |         |     
|Operating activities   |  | $                          | 9,445   |      |  | $ | 957     |  
|                       |  |                            |         |      |  |   |         |  
|Investing activities   |  | $                          | (64,434 | )    |  | $ | (14,212 | )
|                       |  |                            |         |      |  |   |         |  
|Financing activities   |  | $                          | 23,801  |      |  | $ | (706    | )
|                       |  |                            |         |      |  |   |         |  

16



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##### Table of Contents






Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The Companys exposure to a change in interest rates is as follows:

|                                                |                   |               |         |               |         |            |  |              |      |               |       |     |       |   |         |          |         |  |  |  |      |  
|----------------------------------------------- | ----------------- | ------------- | ------- | ------------- | ------- | ---------- |  | ------------ | ---- | ------------- | ----- | --- | ----- | - | ------- | -------- | ------- |  |  |  | ---- | -
|                                                |                   |               |         | 2003          |         | 2002      
|                                                |                   |               |         |               |         |           
|                                                |                   |               |         |               |         |            |  | Weighted     |      | Effect of 1%  |       |     |       |   |         | Weighted
|(amounts in thousands except                    |                   | March 31,     |         | Average       |         | Change In  |  | December 31, |      | Average      
|per share amount)                               |                   | Balance       |         | Interest Rate |         | Base Rates |  | Balance      |      | Interest Rate
|                                                |                   |               |         |               |         |            |  |              |      |              
|                                                |                   | Variable rate |         | $             | 199,018 |            |  |              | 9.02 | %             |       | $   | 1,990 |   |         | $        | 174,500 |  |  |  | 9.76 | %
|                                                |                   | Fixed rate    |         |               | 368,590 |            |  |              | 7.13 | %             |       |     |      |   |         |          | 369,307 |  |  |  | 7.13 | %
|                                                |                   |               |         |               |         |            |  |              |      |               |       |     |       |   |         |          |         |  |  |  |      |  
|                                                |                   | $             | 567,608 |               |         |            |  |              |      |               | 1,990 |     |       | $ | 543,807 |          |         |  |  | 
|                                                |                   |               |         |               |         |            |  |              |      |               |       |     |       |   |         |          |         |  |  |  |      |  
|Total effect on the
Companys
annual net income |                   |               |         |               |         |            |  |              |      | $             | 1,990 |     |       |   |         |          |         |  |  | 
|                                                |                   |               |         |               |         |            |  |              |      |               |       |     |       |   |         |          |         |  |  |  |      |  
|                                                | Per share-diluted |               |         |               |         |            |  |              |      |               | $     | .40 |       |   |         |          |         |  |  |  |     
|                                                |                   |               |         |               |         |            |  |              |      |               |       |     |       |   |         |          |         |  |  |  |      |  

The fair value of the Companys debt, based on discounted cash flows at
the current rate at which similar loans would be made to borrowers with similar
credit ratings for the remaining term of such debt, exceeds the aggregate
carrying amount by approximately $17,788,000 at March 31, 2003.




Item 4.   Controls and Procedures

Within the 90-day period prior to the filing of this Quarterly Report on Form
10-Q, an evaluation was carried out under the supervision and with the
participation of Alexanders management, including our Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and operation
of our disclosure controls and procedures (as defined in Rule 13a-14(c) under
the Securities Exchange Act of 1934). Based upon the evaluation, the Chief
Executive Officer and Chief Financial Officer concluded that the design and
operation of these disclosure controls and procedures were effective. No
significant changes were made in our internal controls or in other factors that
could significantly affect these controls subsequent to the date of their
evaluation

17



---



##### Table of Contents






PART II.   OTHER INFORMATION




Item 1.   Legal Proceedings

For a discussion of the litigation concerning the sale of the Companys
subsidiary which owns the building and has the ground lease for its property in
Flushing, New York, see Managements Discussion and Analysis of Financial
Condition and Results of Operations  Liquidity and Capital Resources.

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 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 March 31, 2003, the Company did not file any reports on Form 8-K.

Page 18



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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:  May 7, 2003 |  | /s/ Joseph Macnow                                   
|                   |  |                                                     
|                   |  | Joseph Macnow,                                      
|                   |  | Executive Vice President and Chief Financial Officer

Page 19



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##### Table of Contents






CERTIFICATION

I, Steven Roth, certify that:



|1. |  | I have reviewed this quarterly report on Form 10-Q of
Alexanders, Inc.;                                                                                                                                                                                                                                                      
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this quarterly report;
|  
|3. |  | Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the
periods presented in this quarterly report;                   
|  
|4. |  | The registrants other certifying officer and I are
responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for
the registrant and have:                                                                                                         



| | a) |  | designed such disclosure controls and procedures to
ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in
which this quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants
disclosure controls and procedures as of a date within 90 days
prior to the filing date of this quarterly report (the
Evaluation Date); and                                                                                                  
|
| | c) |  | presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;                                                                                                                        



|5. |  | The registrants other certifying officer and I have
disclosed, based on our most recent evaluation, to the registrants
auditors and the audit committee of registrants board of directors:
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or operation
of internal controls which could adversely affect the
registrants ability to record, process, summarize and report
financial data and have identified for the registrants auditors
any material weaknesses in internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | any fraud, whether or not material, that involves
management or other employees who have a significant role in the
registrants internal controls ; and                                                                                                                                       



|6. |  | The registrants other certifying officer and I have
indicated in this quarterly report whether there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of our
most recent evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

May 7, 2003

| |     |  |                         | 
| | --- |  | ----------------------- | 
| | /s/ |  | Steven Roth            
| |    
| |     |  | Steven Roth            
| |     |  | Chief Executive Officer

Page 20



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##### Table of Contents



CERTIFICATION

I, Joseph Macnow, certify that:



|1. |  | I have reviewed this quarterly report on Form 10-Q of
Alexanders, Inc.;                                                                                                                                                                                                                                                      
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this quarterly report;
|  
|3. |  | Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the
periods presented in this quarterly report;                   
|  
|4. |  | The registrants other certifying officer and I are
responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for
the registrant and have:                                                                                                         



| | a) |  | designed such disclosure controls and procedures to
ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in
which this quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants
disclosure controls and procedures as of a date within 90 days
prior to the filing date of this quarterly report (the
Evaluation Date); and                                                                                                  
|
| | c) |  | presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;                                                                                                                        



|5. |  | The registrants other certifying officer and I have
disclosed, based on our most recent evaluation, to the registrants
auditors and the audit committee of registrants board of directors:
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or operation
of internal controls which could adversely affect the
registrants ability to record, process, summarize and report
financial data and have identified for the registrants auditors
any material weaknesses in internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | any fraud, whether or not material, that involves
management or other employees who have a significant role in the
registrants internal controls ; and                                                                                                                                       



|6. |  | The registrants other certifying officer and I have
indicated in this quarterly report whether there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of our
most recent evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

May 7, 2003

| |     |  |                                                      | 
| | --- |  | ---------------------------------------------------- | 
| | /s/ |  | Joseph Macnow                                       
| |    
| |     |  | Joseph Macnow,                                      
| |     |  | Executive Vice President and Chief Financial Officer

21



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##### Table of Contents






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. Incorporated
herein by reference from Exhibit 10(i)(A)(1) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002. |  | *   
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                            |  |     
|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. Incorporated
herein by reference from Exhibit 10(i)(A)(2) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.  |  | *   
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                            |  |     
|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).
Incorporated herein by reference from Exhibit
10(i)(B)(1) to the Registrants Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2002.                                    |  | *   
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                            |  |     
|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. Incorporated herein by
reference from Exhibit 10(i)(B)(2) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.                                                                                                                           |  | *   
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                            |  |     
|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).
Incorporated herein by reference from Exhibit
10(i)(B)(3) to the Registrants Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2002.                                          |  | *   
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                            |  |     
|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. Incorporated herein by
reference from Exhibit 10(i)(B)(4) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.                                                                                                                           |  | *   



---

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

22



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##### Table of Contents



|              |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  
|------------- |  | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -
|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. Incorporated herein by reference
from Exhibit 10(i)(C) to the Registrants Quarterly
Report on Form 10-Q for the fiscal quarter ended June
30, 2002.                                      |  | *
|             
|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. Incorporated herein by reference
from Exhibit 10(i)(C)(1) to the Registrants
Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30, 2002.                                    |  | *
|              |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  
|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. Incorporated herein by
reference from Exhibit 10(i)(C)(2) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.                               |  | *
|              |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  
|(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 herein by reference from
Exhibit 10(i)(C)(3) to the Registrants Quarterly
Report on Form 10-Q for the fiscal quarter ended June
30, 2002. |  | *
|              |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  
|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.
Incorporated herein by reference from Exhibit
10(i)(C)(4) to the Registrants Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2002.      |  | *
|              |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  
|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. Incorporated herein by
reference from Exhibit 10(i)(C)(5) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.                                                                          |  | *
|              |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  
|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. Incorporated herein
by reference from Exhibit 10(i)(C)(6) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.                                                                     |  | *
|              |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  
|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. Incorporated herein by
reference from Exhibit 10(i)(C)(7) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.                            |  | *



---

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

Page 23



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##### Table of Contents



|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |  
|------------ |  | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -
|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.
Incorporated herein by reference from Exhibit
10(i)(C)(8) to the Registrants Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2002.                                         |  | *
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |  
|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. Incorporated herein by
reference from Exhibit 10(i)(E)(3) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.                                                             |  | *
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |  
|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.
Incorporated herein by reference from Exhibit
10(i)(E)(4) to the Registrants Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2002.                                       |  | *
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |  
|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. Incorporated herein by
reference from Exhibit 10(i)(F)(1) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.            |  | *
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |  
|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.
Incorporated herein by reference from Exhibit
10(i)(F)(2) to the Registrants Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2002.                                                    |  | *
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |  
|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. Incorporated herein by
reference from Exhibit 10(i)(F)(3) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.                                                           |  | *
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |  
|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.                                                                                               |  | *



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##### Table of Contents



|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |  
|------------ |  | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |  
|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.                                                   |  | *
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |  
|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.                                                                             |  | *



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##### Table of Contents



|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |  
|----------- |  | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |  
|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. Incorporated
herein by reference from Exhibit 10(v)(B)(2) to the
Registrants Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2002.                                                                                |  | *
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |  
|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.                                                                               |  | *
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |  
|            |  |   |  | 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                                                                                                                                                                                                                      |  |  
|10(v)(C)(4) |  |  |  | Exhibit 10(v)(C)(4) to the Registrants Form 10-K for
the fiscal year ended December 31, 2001.                                                                                                                                                                                                                                                                                  |  | *
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |  
|15.1        |  |  |  | Letter regarding
unaudited interim financial information                                                                                                                                                                                                                                                                                                                        |  |  



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