##### 



EXHIBIT INDEX ON PAGE 23

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: |  | September 30, 2002
|                                |  |                   

or

|  |  |                                                                                          
|- |  | -----------------------------------------------------------------------------------------
|o |  | 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 past 90 days.

|        |  |       
|------- |  | ------
|x   Yes |  | o   No

As of October 25, 2002 there were 5,000,850 common shares outstanding.





---



##### 



ALEXANDERS, INC.
AND SUBSIDIARIES
INDEX

|                               |                                                                                               |                                                                                                                 |    |             |    | 
|------------------------------ | --------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | -- | ----------- | -- | 
|                               |                                                                                               |                                                                                                                 |    | Page Number
|                               |                                                                                               |                                                                                                                 |    |            
|PART I. Financial Information: |                                                                                               |                                                                                                                 |    |            
|                              
|                              
|                              
|                              
|                               | Item 1. Financial Statements:                                                                 |                                                                                                                 |    |             |   
|                              
|                              
|                              
|                              
|                               |                                                                                               | Consolidated Balance Sheets as of September 30, 2002 and December 31, 2001                                      |    |             | 3  | 
|                              
|                              
|                              
|                              
|                               |                                                                                               | Consolidated
Statements of Income for the Three and Nine Months Ended September 30, 2002 and September 30, 2001 |    |             | 4  | 
|                              
|                              
|                              
|                              
|                               |                                                                                               | Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2002 and September 30, 2001       |    |             | 5  | 
|                              
|                              
|                              
|                              
|                               |                                                                                               | Notes to Consolidated Financial Statements                                                                      |    |             | 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                            |                                                                                                                 |    | 18          |   
|                              
|                              
|                              
|                              
|                               | Item 4. Control and Procedures                                                                |                                                                                                                 |    | 18          |   
|                              
|                              
|                              
|                              
|PART II. Other Information:    |                                                                                               |                                                                                                                 |    |            
|                              
|                              
|                              
|                              
|                               | Item 1. Legal Proceedings                                                                     |                                                                                                                 |    | 19          |   
|                              
|                              
|                              
|                              
|                               | Item 6. Exhibits and Reports on Form 8-K                                                      |                                                                                                                 |    | 19          |   
|                              
|                              
|                              
|                              
|Signatures                     |                                                                                               |                                                                                                                 | 20 |            
|                              
|                              
|                              
|                              
|Certification                  |                                                                                               |                                                                                                                 | 21 |            
|                              
|                              
|                              
|                              
|Exhibit Index                  |                                                                                               |                                                                                                                 | 23 |            

2



---



##### 



PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

ALEXANDERS, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(amounts in thousands except share amounts)

|                                                                                                 |  |                                                  |         |   |               |         |              |   |         |         | 
|------------------------------------------------------------------------------------------------ |  | ------------------------------------------------ | ------- | - | ------------- | ------- | ------------ | - | ------- | ------- | 
|                                                                                                 |  |                                                  |         |   | (Unaudited)   |         |              |   |        
|                                                                                                 |  |                                                  |         |   | September 30, |         | December 31,
|                                                                                                 |  |                                                  |         |   | 2002          |         | 2001        
|                                                                                                 |  |                                                  |         |   |               |         |             
|ASSETS:                                                                                          |  |                                                  |         |   |               |         |              |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Real estate, at cost:                                                                            |  |                                                  |         |   |               |         |              |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |  | Land                                             |         | $ | 90,768        |         |              | $ | 90,768  |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |  | Buildings, leaseholds and leasehold improvements |         |   | 168,649       |         |              |   | 168,388 |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |  | Construction in progress                         |         |   | 280,442       |         |              |   | 168,736 |        
|                                                                                                 |  |                                                  |         |   |               |         |              |  
|                                                                                                 |  |                                                  | Total   |   |               | 539,859 |              |   |         | 427,892 | 
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |  | Less accumulated depreciation and amortization   |         |   | (54,772       | )       |              |   | (51,463 | )      
|                                                                                                 |  |                                                  |         |   |               |         |              |  
|                                                                                                 |  | Real estate, net                                 |         |   | 485,087       |         |              |   | 376,429 |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Assets held for sale                                                                             |  |                                                  | 1,502   |   |               |         | 3,930        |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Cash and cash equivalents                                                                        |  |                                                  | 90,840  |   |               |         | 135,258      |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Restricted cash                                                                                  |  |                                                  | 7,362   |   |               |         | 6,596        |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Accounts receivable, net of allowance for doubtful accounts
of $262 in 2002 and $929 in 2001     |  |                                                  | 1,786   |   |               |         | 1,534        |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Receivable arising from the straight-lining of rents, net                                        |  |                                                  | 19,904  |   |               |         | 18,233       |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Deferred lease and other property costs                                                          |  |                                                  | 28,020  |   |               |         | 29,371       |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Deferred debt expense                                                                            |  |                                                  | 15,591  |   |               |         | 5,840        |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Other assets                                                                                     |  |                                                  | 6,566   |   |               |         | 6,148        |  
|                                                                                                 |  |                                                  |         |   |               |         |              |  
|TOTAL ASSETS                                                                                     |  | $                                                | 656,658 |   |               | $       | 583,339      |  
|                                                                                                 |  |                                                  |         |   |               |         |              |   |         |        
|LIABILITIES AND STOCKHOLDERS EQUITY:                                                            |  |                                                  |         |   |               |         |              |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Debt (including $119,000 due to Vornado Realty Trust (Vornado)
in 2002 and 2001)                 |  | $                                                | 544,467 |   |               | $       | 515,831      |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Amounts due to Vornado                                                                           |  |                                                  | 8,646   |   |               |         | 4,822        |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Accounts payable and accrued expenses                                                            |  |                                                  | 33,827  |   |               |         | 13,940       |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Other liabilities                                                                                |  |                                                  | 4,859   |   |               |         | 3,665        |  
|                                                                                                 |  |                                                  |         |   |               |         |              |  
|TOTAL LIABILITIES                                                                                |  |                                                  | 591,799 |   |               |         | 538,258      |  
|                                                                                                 |  |                                                  |         |   |               |         |              |  
|COMMITMENTS AND CONTINGENCIES                                                                    |  |                                                  |         |   |               |         |              |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|STOCKHOLDERS EQUITY:                                                                            |  |                                                  |         |   |               |         |              |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Preferred stock: no par value; authorized, 3,000,000 shares;
issued, none                        |  |                                                  |        |   |               |         |             |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Common stock: $1.00 par value per share; authorized, 10,000,000 shares; issued, 5,173,450 shares |  |                                                  | 5,174   |   |               |         | 5,174        |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Additional capital                                                                               |  |                                                  | 24,843  |   |               |         | 24,843       |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Retained earnings                                                                                |  |                                                  | 35,802  |   |               |         | 16,024       |  
|                                                                                                 |  |                                                  |         |   |               |         |              |  
|                                                                                                 |  |                                                  | 65,819  |   |               |         | 46,041       |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Less treasury shares, 172,600 shares at cost                                                     |  |                                                  | (960    | ) |               |         | (960         | )
|                                                                                                 |  |                                                  |         |   |               |         |              |  
|Total stockholders equity                                                                       |  |                                                  | 64,859  |   |               |         | 45,081       |  
|                                                                                                 |  |                                                  |         |   |               |         |              |  
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                       |  | $                                                | 656,658 |   |               | $       | 583,339      |  
|                                                                                                 |  |                                                  |         |   |               |         |              |   |         |        

See notes to consolidated financial statements.

3



---



##### 



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

|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |        | 
|------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | -------------------- | ------ | ------------------- | - | ------ | ------ | ---- | - | ------- | ------ |  | - | ------- | ------ | 
|                                                             |                                                                                                                                                                            |   | For The Three Months |        | For The Nine Months
|                                                             |                                                                                                                                                                            |   | Ended September 30,  |        | Ended September 30,
|                                                             |                                                                                                                                                                            |   |                      |        |                    
|                                                             |                                                                                                                                                                            |   | 2002                 |        | 2001                |   | 2002   |        | 2001
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |     
|REVENUES:                                                    |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Property rentals                                                                                                                                                           |   | $                    | 12,117 |                     |   | $      | 10,480 |      |   | $       | 37,158 |  |   | $       | 31,588 | 
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Expense reimbursements                                                                                                                                                     |   |                      | 7,132  |                     |   |        | 5,375  |      |   |         | 19,416 |  |   |         | 17,268 | 
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|Total revenues                                               |                                                                                                                                                                            |   | 19,249               |        |                     |   | 15,855 |        |      |   | 56,574  |        |  |   | 48,856  |       
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|EXPENSES:                                                    |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Operating (including management fee to Vornado of
$360 and $341 for the three months ended in 2002 and
2001; $1,079 and $1,015 for the nine months ended in
2002 and 2001) |   |                      | 8,597  |                     |   |        | 6,296  |      |   |         | 22,903 |  |   |         | 20,743 | 
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | General and administrative (including management fee
to Vornado of $540 and $1,620 each for the three and
nine month ended in 2002 and 2001)                               |   |                      | (3,274 | )                   |   |        | 1,139  |      |   |         | 2,760  |  |   |         | 2,856  | 
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Depreciation and amortization                                                                                                                                              |   |                      | 1,647  |                     |   |        | 1,592  |      |   |         | 4,879  |  |   |         | 4,738  | 
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|Total expenses                                               |                                                                                                                                                                            |   | 6,970                |        |                     |   | 9,027  |        |      |   | 30,542  |        |  |   | 28,337  |       
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|OPERATING INCOME                                             |                                                                                                                                                                            |   | 12,279               |        |                     |   | 6,828  |        |      |   | 26,032  |        |  |   | 20,519  |       
|                                                            
|                                                            
|                                                            
|                                                            
|Interest and debt expense                                    |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|                                                            
|                                                            
|                                                            
|                                                            
|(including interest on loans from Vornado)                   |                                                                                                                                                                            |   | (5,745               | )      |                     |   | (6,073 | )      |      |   | (18,479 | )      |  |   | (15,379 | )     
|                                                            
|                                                            
|                                                            
|                                                            
|Interest and other income, net                               |                                                                                                                                                                            |   | 494                  |        |                     |   | 1,457  |        |      |   | 1,696   |        |  |   | 2,248   |       
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|Income before gain on sale                                   |                                                                                                                                                                            |   | 7,028                |        |                     |   | 2,212  |        |      |   | 9,249   |        |  |   | 7,388   |       
|                                                            
|                                                            
|                                                            
|                                                            
|Gain on sale of Fordham Road Property                        |                                                                                                                                                                            |   |                     |        |                     |   |       |        |      |   |        |        |  |   | 19,026  |       
|                                                            
|                                                            
|                                                            
|                                                            
|Minority interest                                            |                                                                                                                                                                            |   |                     |        |                     |   | (20    | )      |      |   |        |        |  |   | (20     | )     
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|Income before discontinued operations and extraordinary item |                                                                                                                                                                            |   | 7,028                |        |                     |   | 2,192  |        |      |   | 9,249   |        |  |   | 26,394  |       
|                                                            
|                                                            
|                                                            
|                                                            
|Income (loss) from discontinued operations                   |                                                                                                                                                                            |   | 10,352               |        |                     |   | 50     |        |      |   | 10,529  |        |  |   | (9      | )     
|                                                            
|                                                            
|                                                            
|                                                            
|Extraordinary gain from early extinguishment of debt         |                                                                                                                                                                            |   |                     |        |                     |   |       |        |      |   |        |        |  |   | 3,534   |       
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|NET INCOME                                                   |                                                                                                                                                                            | $ | 17,380               |        |                     | $ | 2,242  |        |      | $ | 19,778  |        |  | $ | 29,919  |       
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |        | 
|Income per share (basic and diluted):                        |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Before discontinued operations and extraordinary item                                                                                                                      |   | $                    | 1.41   |                     |   | $      | .44    |      |   | $       | 1.85   |  |   | $       | 5.27   | 
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Discontinued operations                                                                                                                                                    |   |                      | 2.07   |                     |   |        | .01    |      |   |         | 2.10   |  |   |         |       | 
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Extraordinary item                                                                                                                                                         |   |                      |       |                     |   |        |       |      |   |         |       |  |   |         | .71    | 
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |       
|                                                             | Net income                                                                                                                                                                 |   | $                    | 3.48   |                     |   | $      | .45    |      |   | $       | 3.95   |  |   | $       | 5.98   | 
|                                                             |                                                                                                                                                                            |   |                      |        |                     |   |        |        |      |   |         |        |  |   |         |        | 

See notes to consolidated financial statements.

4



---



##### 



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

|                                                                                                       |                                                               |   |                                         |         |      |   |        |          |  
|------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------- | - | --------------------------------------- | ------- | ---- | - | ------ | -------- | -
|                                                                                                       |                                                               |   | For The Nine Months Ended September 30,
|                                                                                                       |                                                               |   |                                        
|                                                                                                       |                                                               |   | 2002                                    |         | 2001
|                                                                                                       |                                                               |   |                                         |         |     
|Cash Flows From Operating Activities:                                                                  |                                                               |   |                                         |         |      |   |        |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Net income from continuing operations                                                                  |                                                               | $ | 9,249                                   |         |      | $ | 29,928 |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Adjustments to reconcile net income to net cash
provided by (used in) continuing operating activities: |                                                               |   |                                         |         |      |   |        |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Depreciation and amortization (including debt issuance costs) |   |                                         | 6,240   |      |   |        | 5,989    |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Straight-lining of rental income, net                         |   |                                         | (2,333  | )    |   |        | (2,420   | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Minority Interest                                             |   |                                         |        |      |   |        | 20       |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Gain on Sale of Fordham Road property                         |   |                                         |        |      |   |        | (19,026  | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Extraordinary gain from early extinguishment of debt          |   |                                         |        |      |   |        | (3,534   | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Change in assets and liabilities:                                                                      |                                                               |   |                                         |         |      |   |        |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Accounts receivable                                           |   |                                         | (252    | )    |   |        | 1,426    |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Amounts due to Vornado and its affiliate                      |   |                                         | (1,589  | )    |   |        | 768      |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Accounts payable and accrued expenses                         |   |                                         | (1,158  | )    |   |        | (2,830   | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Other liabilities                                             |   |                                         | (681    | )    |   |        | 550      |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Other                                                         |   |                                         | (1,173  | )    |   |        | (3,522   | )
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Net cash provided by operating activities of continuing operations                                     |                                                               |   | 8,303                                   |         |      |   | 7,349  |         
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Income (loss) from discontinued operations                                                             |                                                               |   | 10,529                                  |         |      |   | (9     | )       
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Depreciation and amortization                                 |   |                                         | 65      |      |   |        | 54       |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Gain on sale of Third Avenue property                         |   |                                         | (10,366 | )    |   |        |         |  
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Net cash provided by (used in) discontinued operations                                                 |                                                               |   | 228                                     |         |      |   | (45    | )       
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Net cash provided by operating activities                                                              |                                                               |   | 8,531                                   |         |      |   | 7,394  |         
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Cash Flows From Investing Activities:                                                                  |                                                               |   |                                         |         |      |   |        |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Cash flow from continuing operations:                                                                  |                                                               |   |                                         |         |      |   |        |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Additions to real estate                                      |   |                                         | (84,759 | )    |   |        | (30,056  | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Cash restricted for operating liabilities                     |   |                                         | (5,711  | )    |   |        | (19,876  | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Cash made available for operating liabilities                 |   |                                         | 4,945   |      |   |        | 11,197   |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Proceeds from sale of Fordham Road property                   |   |                                         |        |      |   |        | 23,701   |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Cash made available for construction financing                |   |                                         |        |      |   |        | 8,388    |  
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Net cash used in continuing operations                                                                 |                                                               |   | (85,525                                 | )       |      |   | (6,646 | )       
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Cash flow from discontinued operations:                                                                |                                                               |   |                                         |         |      |   |        |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Proceeds from sale of Third Avenue property                   |   |                                         | 13,176  |      |   |        |         |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Deposit on sale of Flushing                                   |   |                                         | 1,875   |      |   |        |         |  
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Net cash provided by discontinued operations                                                           |                                                               |   | 15,051                                  |         |      |   |       |         
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Net cash used in investing activities                                                                  |                                                               |   | (70,474                                 | )       |      |   | (6,646 | )       
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Cash Flows From Financing Activities:                                                                  |                                                               |   |                                         |         |      |   |        |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Issuance of debt                                              |   |                                         | 55,500  |      |   |        | 232,685  |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Proceeds from minority interest                               |   |                                         |        |      |   |        | 1,200    |  
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Debt repayments                                               |   |                                         | (26,864 | )    |   |        | (138,723 | )
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                       | Deferred debt expense                                         |   |                                         | (11,111 | )    |   |        | (5,079   | )
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Net cash provided by financing activities                                                              |                                                               |   | 17,525                                  |         |      |   | 90,083 |         
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Net (decrease) increase in cash and cash equivalents                                                   |                                                               |   | (44,418                                 | )       |      |   | 90,831 |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Cash and cash equivalents at beginning of period                                                       |                                                               |   | 135,258                                 |         |      |   | 2,272  |         
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Cash and cash equivalents at end of period                                                             |                                                               | $ | 90,840                                  |         |      | $ | 93,103 |         
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         
|Supplemental disclosure of cash flow information:                                                      |                                                               |   |                                         |         |      |   |        |         
|                                                                                                      
|                                                                                                      
|                                                                                                      
|                                                                                                      
|Cash payments for interest (of which $16,025 and $14,748
have been capitalized)                        |                                                               | $ | 34,725                                  |         |      | $ | 29,008 |         
|                                                                                                       |                                                               |   |                                         |         |      |   |        |         

See notes to consolidated financial statements.

5



---



##### 



ALEXANDERS, INC.
AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Balance Sheet as of September 30, 2002, the Consolidated
Statements of Operations for the three and nine months ended September 30, 2002
and 2001, and the Consolidated Statements of Cash Flows for the nine months
ended September 30, 2002 and 2001 are unaudited. In the opinion of management,
all adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and changes in
cash flows have been made. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
accounting principles generally accepted in the United States of America have
been condensed or omitted. These condensed consolidated financial statements
should be read in conjunction with the consolidated financial statements and
notes thereto included in the Alexanders, Inc. and Subsidiaries (the
Company) annual report on Form 10-K for the year ended December 31, 2001 as
filed with the Securities and Exchange Commission. The results of operations
for the three and nine months ended September 30, 2002 are not necessarily
indicative of the operating results for the full year.

In accordance with SFAS No. 144, Accounting for the Impairment or Disposal
of Long-Lived Assets, effective January 1, 2002, the Company reclassified its
statements of operations to reflect income and expenses for properties which
are held for sale as discontinued operations.

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

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

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

The Company is managed by and its properties are leased by Vornado
pursuant to management, leasing and development agreements with one-year terms
expiring in March of each year which are automatically renewable. In
conjunction with the closing of the Lexington Avenue construction loan on July
3, 2002 (Note 5), these agreements were bifurcated to cover the Companys
Lexington Avenue property separately. Further, the Lexington Avenue management
and development agreements were amended to provide for a term lasting until
substantial completion of the property, with automatic renewals, and for the
payment of the development fee upon the earlier of January 3, 2006 or the
payment in full of the construction loan encumbering the property.

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

Pursuant to both the pre and post July 3, 2002 management, leasing and
development agreements, Vornado is entitled to a development fee based on 6% of
construction costs as defined. The development fee for the Lexington Avenue
project is estimated to be approximately $26,300,000. Under these agreements
the Company incurred fees of $6,167,000 and $1,154,000 in the three months
ended September 30, 2002 and 2001, and $12,769,000 and $5,220,000 in the nine
months periods ended September 30, 2002 and 2001. The Company owes Vornado,
$816,000 under the leasing agreement.

The Company purchased 56,932 square feet of air rights at a price of $114
per square foot in July and October 2002 from Vornado. The Company sold 28,111
square feet of these air rights resulting in a gain of $281,000 in the fourth
quarter of 2002 and used the balance for the development of its Lexington
Avenue project.

6



---



##### 



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

At September 30, 2002, the Company is indebted to Vornado in the amount of
$119,000,000 comprised of (i) a $95,000,000 secured financing, and (ii)
$24,000,000 under a $50,000,000 secured line of credit (which carries a 1%
unused commitment fee). On March 15, 2002, the loan and the line of credit were
extended to April 15, 2003. The interest rate on these loans was reset from
13.74% to 12.48% using a Treasury index (with a 3% floor) plus the same spread
to treasuries as previously existed. The Company incurred interest on its
loans from Vornado of $3,784,000 and $4,245,000 in the three months ended
September 30, 2002 and 2001, and $11,685,000 and $13,210,000 in the nine months
ended September 30, 2002 and 2001. At September 30, 2002, $26,000,000 was
available under the secured line of credit. On July 3, 2002, in conjunction
with the closing of the Lexington Avenue construction loan (Note 5), the
maturity of the Vornado debt was extended to the earlier of January 3, 2006 or
the date the Lexington Avenue construction loan is repaid in full and the debt
was bifurcated among various subsidiaries of the Company (all guaranteed by the
Company). In addition amounts which may be due under the Completion Guarantee
would be due at the same time.

3. SALE OF THIRD AVENUE PROPERTY

On August 30, 2002 the Company closed on the sale of its Third Avenue
property, located in the Bronx, New York. The 173,000 square feet property was
sold for $15,000,000, resulting in a gain of $10,366,000. Included in the
expenses relating to the sale, the Company paid a commission of $600,000, of
which $350,000 was paid to Vornado pursuant to the 1992 Leasing Agreement
between the companies.

4. ASSET HELD FOR SALE

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, actions taken by the
prospective purchaser 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 Company notified the prospective purchaser that the purchaser failed
to close on the purchase, in default of its obligations under the purchase
contract. Negotiations are in process with all parties to attempt to settle
the disputes, however there can be no assurance that these negotiations will be
successful.

5. LEXINGTON AVENUE

The development plans at Lexington Avenue consist of a 1.3 million square
foot multi-use building. The building will contain 175,000 net rentable square
feet of retail (45,000 square feet of which has been leased to Hennes &
Mauritz), 880,000 net rentable square feet of office (690,000 square of which
has been leased to Bloomberg L.P.) and 230,000 net sallable square feet of
residential consisting of condominium units (through a taxable REIT
subsidiary). Construction is expected to be completed in 2004. On July 3,
2002 the Company finalized a $490,000,000 loan with HVB Real Estate Capital
(Hypo Vereinsbank) to finance the construction of the Lexington Avenue property
(the Construction Loan). The estimated construction costs in excess of the
construction loan of approximately $140,000,000 will be provided by the
Company. The Construction Loan has an interest rate of LIBOR plus 2.5%
(currently 4.32%) and a term of forty-two months subject to two one-year
extensions. The Company received an initial funding of $55,500,000 under the
Construction Loan of which $25,000,000 was used to repay the Companys term
loan to a bank in the amount of $10,000,000 and a secured note in the amount of
$15,000,000. Of the total construction budget of $630,000,000, $161,000,000
has been spent to date and an additional $185,000,000 has been committed to.
Pursuant to this Construction Loan, Vornado has agreed to guarantee among other
things, the lien free, timely completion of the construction of the project and
funding of project costs in excess of a stated loan budget, if not funded by
the Company (the Completion Guarantee). The $6,300,000 estimated fee payable
by the Company to Vornado for the Completion Guarantee is 1% of construction
costs (as defined). In addition, if Vornado should advance any funds under the
Completion Guarantee in excess of the $26,000,000 currently available under the
secured line of credit, interest on those advances is at 15% per annum.

7



---



##### 



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

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.

6. COMMITMENTS AND CONTINGENCIES

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

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

In June 1997, the Kings Plaza Regional Shopping Center (the Center),
commissioned an Environmental Study and Contamination Assessment Site
Investigation (the Phase II Study) to evaluate and delineate environmental
conditions disclosed in a Phase I study. The results of the Study indicate the
presence of petroleum and bis (2-ethylhexyl) phthalate contamination in the
soil and groundwater. The Company has delineated the contamination and has
developed a remediation approach, which is ongoing. The New York State
Department of Environmental Conservation (NYDEC) has approved a portion of
the remediation approach. The Company accrued $2,675,000 in previous years
($2,013,000 has been paid as of September 30, 2002) for its estimated
obligation with respect to the clean up of the site, which includes costs of
(i) remedial investigation, (ii) feasibility study, (iii) remedial design, (iv)
remedial action and (v) professional fees. If the NYDEC insists on a more
extensive remediation approach, the Company could incur additional obligations.

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

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

Letters of Credit

Approximately $8,100,000 in standby letters of credit were issued at
September 30, 2002.

8



---



##### 



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

7. INCOME PER SHARE

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

|                                                |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |        |  
|----------------------------------------------- | --------------------------------------------------------------------------------------------------- |  | -------------------- | ------ | ------------------- |  | ---- | ----- | ---- |  | - | ------ |  |  | - | ------ | -
|                                                |                                                                                                     |  | For The Three Months |        | For The Nine Months
|                                                |                                                                                                     |  | Ended September 30,  |        | Ended September 30,
|                                                |                                                                                                     |  |                      |        |                    
|                                                |                                                                                                     |  | 2002                 |        | 2001                |  | 2002 |       | 2001
|                                                |                                                                                                     |  |                      |        |                     |  |      |       |     
|(amounts in thousands except per share amounts) |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |       
|                                               
|                                               
|                                               
|                                               
|Numerator:                                      |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |       
|                                               
|                                               
|                                               
|                                               
|                                                | Income before discontinued operations and
extraordinary item                                        |  | $                    | 7,028  |                     |  | $    | 2,192 |      |  | $ | 9,249  |  |  | $ | 26,394 |  
|                                               
|                                               
|                                               
|                                               
|                                                | Income (loss) from discontinued operations                                                          |  |                      | 10,352 |                     |  |      | 50    |      |  |   | 10,529 |  |  |   | (9     | )
|                                               
|                                               
|                                               
|                                               
|                                                | Extraordinary gain from early extinguishment of debt                                                |  |                      |       |                     |  |      |      |      |  |   |       |  |  |   | 3,534  |  
|                                                |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |        |  
|                                                | Net income                                                                                          |  |                      | 17,380 |                     |  |      | 2,242 |      |  |   | 19,778 |  |  |   | 29,919 |  
|                                                |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |       
|Denominator:                                    |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |       
|                                               
|                                               
|                                               
|                                               
|                                                | Denominator for basic income per share  weighted
average shares                                    |  |                      | 5,001  |                     |  |      | 5,001 |      |  |   | 5,001  |  |  |   | 5,001  |  
|                                               
|                                               
|                                               
|                                               
|                                                | Effect of dilutive securities:                                                                      |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |        |  
|                                               
|                                               
|                                               
|                                               
|                                                | Employee stock options                                                                              |  |                      |       |                     |  |      |      |      |  |   |       |  |  |   |       |  
|                                                |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |        |  
|                                                | Denominator
for diluted income per share 
adjusted weighted average shares and
assumed conversions |  |                      | 5,001  |                     |  |      | 5,001 |      |  |   | 5,001  |  |  |   | 5,001  |  
|                                                |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |       
|INCOME
PER COMMON SHARE                        |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |       
|                                               
|                                               
|                                               
|                                               
|BASIC AND DILUTED:                              |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |       
|                                               
|                                               
|                                               
|                                               
|                                                | Income before discontinued operations and
extraordinary item                                        |  | $                    | 1.41   |                     |  | $    | .44   |      |  | $ | 1.85   |  |  | $ | 5.27   |  
|                                               
|                                               
|                                               
|                                               
|                                                | Income from discontinued operations                                                                 |  |                      | 2.07   |                     |  |      | .01   |      |  |   | 2.10   |  |  |   |       |  
|                                               
|                                               
|                                               
|                                               
|                                                | Income from extraordinary item                                                                      |  |                      |       |                     |  |      |      |      |  |   |       |  |  |   | .71    |  
|                                                |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |        |  
|                                                | Net income per common share                                                                         |  | $                    | 3.48   |                     |  | $    | .45   |      |  | $ | 3.95   |  |  | $ | 5.98   |  
|                                                |                                                                                                     |  |                      |        |                     |  |      |       |      |  |   |        |  |  |   |        |  

8. DISCONTINUED OPERATIONS

Discontinued operations includes the Companys Third Avenue and Flushing
properties (see Note 3 and Note 4 for further details):

|                                           |  |                      |        |                     |  |      |     |      |  |   |        |  |  |   |       |  
|------------------------------------------ |  | -------------------- | ------ | ------------------- |  | ---- | --- | ---- |  | - | ------ |  |  | - | ----- | -
|                                           |  | For The Three Months |        | For The Nine Months
|                                           |  | Ended September 30,  |        | Ended September 30,
|                                           |  |                      |        |                    
|                                           |  | 2002                 |        | 2001                |  | 2002 |     | 2001
|                                           |  |                      |        |                     |  |      |     |     
|(amounts in thousands)                     |  |                      |        |                     |  |      |     |      |  |   |        |  |  |   |       |  
|                                          
|                                          
|                                          
|                                          
|Total revenues                             |  | $                    | 487    |                     |  | $    | 565 |      |  | $ | 1,654  |  |  | $ | 1,516 |  
|                                          
|                                          
|                                          
|                                          
|Total expenses                             |  |                      | 501    |                     |  |      | 515 |      |  |   | 1,491  |  |  |   | 1,525 |  
|                                           |  |                      |        |                     |  |      |     |      |  |   |        |  |  |   |       |  
|Net (loss) income                          |  |                      | (14    | )                   |  |      | 50  |      |  |   | 163    |  |  |   | (9    | )
|                                          
|                                          
|                                          
|                                          
|Gain on sale of Third Avenue property      |  |                      | 10,366 |                     |  |      |    |      |  |   | 10,366 |  |  |   |      |  
|                                           |  |                      |        |                     |  |      |     |      |  |   |        |  |  |   |       |  
|Income
(loss) from discontinued operations |  | $                    | 10,352 |                     |  | $    | 50  |      |  | $ | 10,529 |  |  | $ | (9    | )
|                                           |  |                      |        |                     |  |      |     |      |  |   |        |  |  |   |       |  

The Flushing property is shown on the Balance Sheet as an Asset held for
sale at September 30, 2002.

9



---



##### 



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

9. RECENTLY ISSUED ACCOUNTING STANDARDS

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

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

10



---



##### 



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 September 30, 2002, and the related
condensed consolidated statements of income for the three-month
and nine-month periods ended September 30, 2002 and 2001 and the
condensed consolidated statements of cash flows for the nine month
periods ended September 30, 2002 and 2001. These financial
statements are the responsibility of the Companys management.

We conducted our review 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 review, 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, 2001, 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
11, 2002, 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, 2001 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
October 30, 2002

11



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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.

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

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, 2001.

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. If the Company incorrectly estimates the value of the
asset or the undiscounted cash flows, the impairment charges may be
different.

12



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##### 



Revenue recognition

Base rents, additional rents based on tenants sales volume and
reimbursement of the tenants share of certain operating expenses are generally
recognized when due from tenants. The straight-line basis is used to recognize
base rents under leases if they provide for varying rents over the lease terms.
Contingent rents are not recognized until realized. Before the Company can
recognize revenue, it is required to assess, among other things, its
collectibility. If the Company incorrectly determines the collectibility of
its revenue, its net income and assets could be overstated.

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 $17,380,000 in the quarter ended September
30, 2002, compared to $2,242,000 in the quarter ended September 30, 2001, an
increase of $15,138,000 and net income of $19,778,000 for the nine months ended
September 30, 2002, compared to $29,919,000 for the nine months ended September
30, 2001, a decrease of $10,141,000. The current years third quarter includes
the reversal of the current years second quarter accrual of non-cash
compensation expense of $4,236,000 relating to stock appreciation rights. The
current years quarter and nine months includes income from discontinued
operations comprised of a gain on the sale of the Third Avenue property of
$10,366,000. The prior years nine months included gain on the sale of the
Fordham Road property of $19,026,000 and an extraordinary gain from the early
extinguishment of debt on such property of $3,534,000. Excluding these items,
net income for the quarter and nine months ended September 30, 2002, would have
been higher than net income in the corresponding prior years periods by
$536,000 and $2,053,000, respectively. In accordance with SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets, effective
January 1, 2002, the Company reclassified its statements of operations to
reflect income and expenses for properties which are held for sale as
discontinued operations.

Property rentals were $12,117,000 in the quarter ended September 30, 2002,
compared to $10,480,000 in the prior years quarter, an increase of $1,637,000
and $37,158,000 for the nine months ended September 30, 2002, compared to
$31,588,000 for the nine months ended September 30, 2001, an increase of
$5,570,000. These increases resulted primarily from (i) commencement, on
October 5, 2001, of the ground lease with IKEA at the Paramus property, and
(ii) an increase in occupancy at the Kings Plaza Regional Shopping Center.

Tenant expense reimbursements were $7,132,000 in the quarter ended
September 30, 2002, compared to $5,375,00 in the prior years quarter, an
increase of $1,757,000 and $19,416,000 for the nine months ended September 30,
2002, compared to $17,268,000 for the nine months ended September 30, 2001, an
increase of $2,148,000. These increases resulted primarily from higher
reimbursements for real estate taxes and repairs and maintenance over the prior
years periods.

Operating expenses were $8,597,000 in the quarter ended September 30,
2002, compared to $6,296,000 in the prior years quarter, an increase of
$2,301,000. This increase resulted primarily from higher fuel costs for the
utility plant at the Companys Kings Plaza Regional Shopping Center which are
not fully recoverable from tenants, and higher real estate taxes and repairs
and maintenance. Operating expenses were $22,903,000 for the nine
months ended September 30, 2002, compared to $20,743,000 for the nine months
ended September 30, 2001, an increase of $2,160,000. This increase resulted
primarily from higher real estate taxes and repairs and maintenance.

General and administrative expenses in the current years third quarter
include the reversal of the current years second quarter accrual of non-cash
compensation expense of $4,236,000 based on the Companys closing stock price
of $61.00 at September 30, 2002. General and administrative expenses before
the reversal of the accrual decreased by $177,000 and $96,000 in the current
years quarter and nine months compared to the prior years periods. These
decreases resulted primarily from lower professional fees.

13



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##### 



Interest and debt expense was $5,745,000 in the quarter ended September
30, 2002, compared to $6,073,000 in the quarter ended September 30, 2001, a
decrease of $328,000 and $18,479,000 for the nine months ended September 30,
2002, compared to $15,379,000 for the nine months ended September 30, 2001, an
increase of $3,100,000. These fluctuations occurred due to (i) $108,000,000 in
additional mortgage borrowings from refinancing the Kings Plaza property on
June 1, 2001, and (ii) a $68,000,000 mortgage loan on the Paramus property
obtained on October 5, 2001. The increase in interest expense resulting from
higher average borrowings was partially offset by a decrease in average
interest rates from 9.46% to 8.30% and higher capitalized interest relating to
the Companys development property.

Interest and other income was $494,000 in the quarter ended September 30,
2002, compared to $1,457,000 in the prior years quarter, a decrease of
$963,000 and $1,696,000 for the nine months ended September 30, 2002, compared
to $2,248,000 for the nine months ended September 30, 2001, a decrease of
$552,000. These decreases resulted primarily from lower yields on investments.

Discontinued operations includes the Companys Third Avenue and Flushing
properties (see Note 3 and Note 4 for further details):

|                                           |  |                      |        |                     |                        |      |     |      |  |   |        |  |  |   |       |  
|------------------------------------------ |  | -------------------- | ------ | ------------------- | ---------------------- | ---- | --- | ---- |  | - | ------ |  |  | - | ----- | -
|                                           |  | For The Three Months |        | For The Nine Months
|                                           |  | Ended September 30,  |        | Ended September 30,
|                                           |  |                      |        |                    
|                                           |  | 2002                 |        | 2001                |                        | 2002 |     | 2001
|                                           |  |                      |        |                     |                        |      |     |     
|                                           |  |                      |        |                     | (amounts in thousands) |      |     |      |  |   |        | 
|                                          
|                                          
|                                          
|                                          
|Total revenues                             |  | $                    | 487    |                     |                        | $    | 565 |      |  | $ | 1,654  |  |  | $ | 1,516 |  
|                                          
|                                          
|                                          
|                                          
|Total expenses                             |  |                      | 501    |                     |                        |      | 515 |      |  |   | 1,491  |  |  |   | 1,525 |  
|                                           |  |                      |        |                     |                        |      |     |      |  |   |        |  |  |   |       |  
|Net (loss) income                          |  |                      | (14    | )                   |                        |      | 50  |      |  |   | 163    |  |  |   | (9    | )
|                                          
|                                          
|                                          
|                                          
|Gain on sale of Third Avenue property      |  |                      | 10,366 |                     |                        |      |    |      |  |   | 10,366 |  |  |   |      |  
|                                           |  |                      |        |                     |                        |      |     |      |  |   |        |  |  |   |       |  
|Income
(loss) from discontinued operations |  | $                    | 10,352 |                     |                        | $    | 50  |      |  | $ | 10,529 |  |  | $ | (9    | )
|                                           |  |                      |        |                     |                        |      |     |      |  |   |        |  |  |   |       |  

The Flushing property is shown on the Balance Sheet as an Asset held for
sale at September 30, 2002.

14



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##### 



Liquidity and Capital Resources

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

The development plans at Lexington Avenue consist of a 1.3 million square
foot multi-use building. The building will contain 175,000 net rentable square
feet of retail (45,000 square feet of which has been leased to Hennes &
Mauritz), 880,000 net rentable square feet of office (690,000 square of which
has been leased to Bloomberg L.P.) and 230,000 net sallable square feet of
residential consisting of condominium units (through a taxable REIT
subsidiary). Construction is expected to be completed in 2004. On July 3,
2002 the Company finalized a $490,000,000 loan with HVB Real Estate Capital
(Hypo Vereinsbank) to finance the construction of the Lexington Avenue property
(the Construction Loan). The estimated construction costs in excess of the
construction loan of approximately $140,000,000 will be provided by the
Company. The Construction Loan has an interest rate of LIBOR plus 2.5%
(currently 4.32%) and a term of forty-two months subject to two one-year
extensions. The Company received an initial funding of $55,500,000 under the
Construction Loan, of which $25,000,000 was used to repay the Companys term
loan to a bank in the amount of $10,000,000 and a secured note in the amount of
$15,000,000. Of the total construction budget of $630,000,000, $161,000,000
has been spent to date and an additional $185,000,000 has been committed to.
There can be no assurance that the Lexington Avenue project ultimately will be
completed, completed on time or completed for the budgeted amount. Further,
the Company may need additional financing for the project, which may involve
equity, debt, joint ventures and asset sales, and which may involve
arrangements with Vornado Realty Trust. If the project is not completed on a
timely basis, the Bloomberg L.P. lease may be cancelled and significant
penalties may apply. See Vornado Completion Guarantee described below.

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

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

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

On August 30, 2002 the Company closed on the sale of its Third Avenue
property, located in the Bronx, New York. The 173,000 square feet property was
sold for $15,000,000 resulting in a gain of $10,366,000.

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, actions taken by the
prospective purchaser 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 Company notified the prospective purchaser that the purchaser failed
to close on the purchase, in default of its obligations under the purchase
contract. Negotiations are in process with all parties to attempt to settle
the disputes, however there can be no assurance that these negotiations will be
successful.

15



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##### 



The Company estimates that the fair market values of its assets are
substantially in excess of their historical cost. The Company continues to
evaluate its needs for capital which may be raised through (a) property
specific or corporate borrowing, (b) the sale of securities and (c) other asset
sales. Although there can be no assurance, the Company believes that these
cash sources will be adequate to fund cash requirements until its operations
generate adequate cash flow.

Cash Flows

Nine Months Ended September 30, 2002

Net cash provided by operating activities of $8,531,000 was comprised of
(i) net income before the gain on sale of the Third Avenue property was
$9,412,000, (ii) non-cash items of $3,972,000, offset by and (iii) the net
change in operating assets and liabilities of $4,853,000. The adjustments for
non-cash items are comprised of depreciation and amortization of $6,305,000,
offset by the effect of straight-lining of rental income of $2,333,000.

Net cash used in investing activities of $70,474,000 (includes cash
provided by discontinued operations of $15,051,000) was comprised of capital
expenditures of $84,759,000, partially offset by proceeds from the sale of
Third Avenue property of $13,176,000. The capital expenditures were primarily
related to Lexington Avenue development.

Net cash provided by financing activities of $17,525,000 resulted
primarily from an increase in debt of $55,500,000, partially offset by debt
repayments of $26,864,000 and debt issuance costs of $11,111,000.

Nine Months Ended September 30, 2001

Net cash provided by operating activities of $7,394,000 was comprised of
(i) net income of $29,919,000, (ii) non-cash items of $3,643,000, offset by
(iii) gain on sale of Fordham Road property of $19,026,000, (iv) extraordinary
gain from early extinguishment of debt of $3,534,000, and (v) the net change in
operating assets and liability of $3,608,000. The adjustments for non-cash
items are primarily comprised of (i) depreciation and amortization of
$6,043,000, offset by (ii) the effect of straight-lining of rental income of
$2,420,000.

Net cash used in investing activities of $6,646,000 was comprised of (i)
proceeds from the sale of Fordham Road property of $23,701,000, and (ii) the
release of restricted cash of $19,585,000, offset by (iii) capital expenditures
of $30,056,000 and (iv) an increase in restricted cash of $19,876,000. The
capital expenditures were primarily comprised of (i) capitalized interest and
other carrying costs of $16,451,000, (ii) renovations to the Kings Plaza
Regional Shopping Center of $2,625,000 and (iii) excavation, foundation and
predevelopment costs at Lexington Avenue of $9,576,000.

Net cash provided by financing activities of $90,083,000 resulted
primarily from an increase in debt of $232,685,000 partially offset by debt
repayments of $138,723,000.

16



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##### 



Funds from Operations for the Three and Nine Months Ended September 30, 2002
and 2001

Funds from operations was $7,249,000 in the quarter ended September 30,
2002, compared to $3,117,000 in the prior years quarter, an increase of
$4,132,000. Funds from operations was $10,240,000 in the nine months ended
September 30, 2002, compared to $9,731,000 in the prior years nine months, an
increase of $509,000. Funds from operations for the three months ended
September 30, 2002 include $4,236,000, representing the reversal of stock
appreciation rights compensation expense recorded in the second quarter of
2002. The following table reconciles net income to funds from operations:

|                                                         |  |                      |             |                     |  |      |           |      |  |   |             |   |  |   |             |  
|-------------------------------------------------------- |  | -------------------- | ----------- | ------------------- |  | ---- | --------- | ---- |  | - | ----------- | - |  | - | ----------- | -
|                                                         |  | For The Three Months |             | For The Nine Months
|                                                         |  | Ended September 30,  |             | Ended September 30,
|                                                         |  |                      |             |                    
|                                                         |  | 2002                 |             | 2001                |  | 2002 |           | 2001
|                                                         |  |                      |             |                     |  |      |           |     
|Net income                                               |  | $                    | 17,380,000  |                     |  | $    | 2,242,000 |      |  | $ | 19,778,000  |   |  | $ | 29,919,000  |  
|                                                        
|                                                        
|                                                        
|                                                        
|Depreciation and amortization of
real property           |  |                      | 1,650,000   |                     |  |      | 1,610,000 |      |  |   | 4,944,000   |   |  |   | 4,792,000   |  
|                                                        
|                                                        
|                                                        
|                                                        
|Straight-lining of property rentals
for rent escalations |  |                      | (809,000    | )                   |  |      | (735,000  | )    |  |   | (2,333,000  | ) |  |   | (2,420,000  | )
|                                                        
|                                                        
|                                                        
|                                                        
|Leasing fees paid in excess
of expense recognized        |  |                      | (606,000    | )                   |  |      |          |      |  |   | (1,783,000  | ) |  |   |            |  
|                                                        
|                                                        
|                                                        
|                                                        
|Gain on Sale of Third Avenue property                    |  |                      | (10,366,000 | )                   |  |      |          |      |  |   | (10,366,000 | ) |  |   |            |  
|                                                        
|                                                        
|                                                        
|                                                        
|Gain on Sale of Fordham Road property                    |  |                      |            |                     |  |      |          |      |  |   |            |   |  |   | (19,026,000 | )
|                                                        
|                                                        
|                                                        
|                                                        
|Extraordinary gain from early
extinguishment of debt     |  |                      |            |                     |  |      |          |      |  |   |            |   |  |   | (3,534,000  | )
|                                                         |  |                      |             |                     |  |      |           |      |  |   |             |   |  |   |             |  
|Funds from operations                                    |  | $                    | 7,249,000   |                     |  | $    | 3,117,000 |      |  | $ | 10,240,000  |   |  | $ | 9,731,000   |  
|                                                         |  |                      |             |                     |  |      |           |      |  |   |             |   |  |   |             |  

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

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

|                     |  |                           |             |      |  |   |            |  
|-------------------- |  | ------------------------- | ----------- | ---- |  | - | ---------- | -
|                     |  | For The Nine Months Ended
|                     |  | September 30,            
|                     |  |                          
|                     |  | 2002                      |             | 2001
|                     |  |                           |             |     
|Operating activities |  | $                         | 8,531,000   |      |  | $ | 7,394,000  |  
|                     |  |                           |             |      |  |   |            |  
|Investing activities |  | $                         | (70,474,000 | )    |  | $ | (6,646,000 | )
|                     |  |                           |             |      |  |   |            |  
|Financing activities |  | $                         | 17,525,000  |      |  | $ | 90,083,000 |  
|                     |  |                           |             |      |  |   |            |  

17



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##### 



Recently Issued Accounting Standards

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

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

Item 3. Quantitative and Qualitative Disclosures About Market Risk

At September 30, 2002, the Company had $174,500,000 of variable rate debt
at a weighted average interest rate of 9.90% and $369,967,000 of fixed rate
debt bearing interest at a weighted average interest rate of 7.13%. A one
percent increase in the base used to determine the interest rate of the
variable rate debt would result in a $1,745,000 decrease in the Companys
annual net income ($.35 per basic and diluted share).

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.

18



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##### 



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 September 30, 2002, the Company did not file any
reports on Form 8-K.

Page 19



---



##### 



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:  October 31, 2002 |  | /s/ Joseph Macnow                                                  
|                        |  |                                                                    
|                        |  | Joseph Macnow,
Executive Vice-President and Chief Financial Officer

20



---



##### 



CERTIFICATION

I, Steven Roth, Chief Executive Officer, 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 officers 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 we 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 officers 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 officers and I have
indicated in this quarterly report whether or not 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.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

October 31, 2002



/s/  Steven Roth
Steven Roth
Chief Executive Officer

21



---



##### 



CERTIFICATION

I, Joseph Macnow, Executive Vice PresidentFinance and Administration
and Chief Financial Officer, 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 officers 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 we 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 officers 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 officers and I have
indicated in this quarterly report whether or not 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.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

October 31, 2002



/s/ Joseph Macnow
Joseph Macnow,
Executive Vice PresidentFinance and Administration
   and Chief Financial Officer

22



---



##### 



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

23



---



##### 



|              |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |     
|------------- |  | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit       |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |     
|No.           |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Page
|              |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                      |  |     
|             
|             
|             
|             
|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
|- |  | -------------------------

24



---



##### 



|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |     
|------------ |  | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit      |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |     
|No.          |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  | Page
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                       |  |     
|            
|            
|            
|            
|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.                                                                                               |  | *   



---

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

25



---



##### 



|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |     
|------------ |  | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit      |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |     
|No.          |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Page
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |     
|            
|            
|            
|            
|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.                                                                                                                                                                                    |  | *   
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|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.                                                                                                                                                                                                                       |  | *   
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|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.                                                                                                                                                                                                                                                |  | *   
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|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.                                                                                                                                                                                                                                                                            |  | *   
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|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. |  | *   
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|10(v)(A)(2)  |  |  |  | Amended, Restated and Consolidated
Promissory Note, dated as of May 31, 2001
by and between Alexanders Kings Plaza
L.L.C., Alexanders of Kings L.L.C. and
Kings Parking L.L.C., collectively
borrower, and Morgan Guaranty Trust
Company of New York, lender. Incorporated
herein by reference from Exhibit 10(v) A2
to the Registrants Quarterly Report on
Form 10-Q for the fiscal quarter ended
June 30, 2001.                                                   |  | *   
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|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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|* |  | Incorporated by reference
|- |  | -------------------------

26



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##### 



|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |     
|----------- |  | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit     |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |     
|No.         |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  | Page
|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |     
|           
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|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. |  | *   
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|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |     
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|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.                                                                                           |  | *   
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|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |     
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|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.                                                                                |  | *   
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|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |     
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|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.                                                                                                 |  | *   
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|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.                                                   |  | *   
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|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.                                                                               |  | *   
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|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |     
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|10(v)(C)(4) |  |  |  | Lease dated as of October 2, 2001 by and
between ALX of Paramus LLC, as Landlord,
and IKEA Property, Inc. as Tenant.
Incorporated herein by reference from
Exhibit 10(v)(C)(4) to the Registrants
Form 10-K for the fiscal year ended
December 31, 2001.                                                                                                                       |  | *   
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|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                 |  |     
|15.1        |  |  |  | Letter regarding
unaudited interim financial information.                                                                                                                                                                                                                                                                                                                       |  |     



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

27