##### Table of Contents



EXHIBIT INDEX ON PAGE 17

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q



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

|                                |  |                   
|------------------------------- |  | ------------------
|For the quarterly period ended: |  | September 30, 2001
|                                | 

or



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

|                               |  |   
|------------------------------ |  | --
|For the transition period from |  | to
|                               | 

Commission File Number: 1-6064

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


|                                              |  |                       
|--------------------------------------------- |  | ----------------------
|Delaware                                      |  | 51-0100517            
|                                             
|                                             
|                                             
|                                             
|                                             
|                                             
|                                             
|                                             
|                                             
|(State or other jurisdiction of incorporation |  | (I.R.S. Employer      
|                                             
|                                             
|                                             
|                                             
|or organization)                              |  | Identification Number)
|                                             
|                                             
|                                             
|                                             
|                                              |  |                       
|                                             
|                                             
|                                             
|                                             
|888 Seventh Avenue, New York, New York        |  | 10019                 
|                                             
|(Address of principal executive offices)      |  | (Zip Code)            



(212) 894-7000
(Registrants telephone number, including area code)






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


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

CHECK BOX Yes    BOX No


As of October 26, 2001 there were 5,000,850 common shares outstanding.





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TABLE OF CONTENTS



|                              |                                                                                               |                                                                    |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1. Financial Statements                                                                 
|                              |                                                                                               | CONSOLIDATED BALANCE SHEETS                                       
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF OPERATIONS                             
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CASH FLOWS                             
|                              |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                        
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                              |                                                                                               | Item 3. Quantitative and Qualitative Disclosures About Market Risk
|PART II. OTHER INFORMATION   
|                              | Item 1. Legal Proceedings                                                                    
|                              | Item 6. Exhibits and Reports on Form 8-K.                                                    
|SIGNATURES                   
|EXHIBIT INDEX                



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##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES
INDEX

|              |  |         |    |                                                                                      |  |                                                                                                                    |    |  |   |             |  | 
|------------- |  | ------- | -- | ------------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------ | -- |  | - | ----------- |  | 
|              |  |         |    |                                                                                      |  |                                                                                                                    |    |  |   | Page Number
|              |  |         |    |                                                                                      |  |                                                                                                                    |    |  |   |            
|PART I        |  |         |    |                                                                                      |  | Financial Information:                                                                                             |    |  |   |            
|             
|             
|             
|             
|              |  | Item 1. |    | Financial Statements:                                                                |  |                                                                                                                    |    | 
|             
|             
|             
|             
|              |  |         |    |                                                                                      |  | Consolidated Balance Sheets as ofSeptember 30, 2001 and December 31, 2000                                          |    |  | 3 |            
|             
|             
|             
|             
|              |  |         |    |                                                                                      |  | Consolidated Statements of Operations for theThree and Nine Months Ended September 30, 2001 and September 30, 2000 |    |  | 4 |            
|             
|             
|             
|             
|              |  |         |    |                                                                                      |  | Consolidated Statements of Cash Flows for theNine Months Ended September 30, 2001 and September 30, 2000           |    |  | 5 |            
|             
|             
|             
|             
|              |  |         |    |                                                                                      |  | Notes to Consolidated Financial Statements                                                                         |    |  | 6 |            
|             
|             
|             
|             
|              |  | Item 2. |    | Management's Discussion and Analysis ofFinancial Condition and Results of Operations |  |                                                                                                                    | 10 | 
|             
|             
|             
|             
|              |  | Item 3. |    | Quantitative and Qualitative Disclosures about Market Risk                           |  |                                                                                                                    | 14 | 
|             
|             
|             
|             
|PART II       |  |         |    |                                                                                      |  | Other Information:                                                                                                 |    |  |   |            
|             
|             
|             
|             
|              |  | Item 1. |    | Legal Proceedings                                                                    |  |                                                                                                                    | 15 | 
|             
|             
|             
|             
|              |  | Item 6. |    | Exhibits and Reports on Form 8-K                                                     |  |                                                                                                                    | 15 | 
|             
|             
|             
|             
|Signatures    |  |         | 16 |                                                                                     
|             
|             
|             
|             
|Exhibit Index |  |         | 17 |                                                                                     

2



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##### Table of Contents






PART I. FINANCIAL INFORMATION




Item 1.Financial Statements

ALEXANDERS, INC.
AND SUBSIDIARIES




CONSOLIDATED BALANCE SHEETS
(amounts in thousands except share amounts)

|                                                                                                 |                                            |                                         |               |                              |         |               |         |              |         |       |         |  
|------------------------------------------------------------------------------------------------ | ------------------------------------------ | --------------------------------------- | ------------- | ---------------------------- | ------- | ------------- | ------- | ------------ | ------- | ----- | ------- | -
|                                                                                                 |                                            |                                         |               |                              |         | September 30, |         | December 31,
|                                                                                                 |                                            |                                         |               |                              |         | 2001          |         | 2000        
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|ASSETS:                                                                                          |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Real estate, at cost:                                                                            |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            | Land                                    |               | $                            | 81,656  |               |         | $            | 81,656  |      
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            | Buildings, leaseholds and leasehold     |               |                              |         |               |         |              |         |      
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            |                                         |               | improvements                 |         |               | 173,528 |              |         |       | 141,873 |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            | Capitalized expenses, development costs |               |                              |         |               |         |              |         |      
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            |                                         |               | and construction in progress |         |               | 168,212 |              |         |       | 169,811 |  
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                 |                                            |                                         |               | Total                        |         |               | 423,396 |              |         |       | 393,340 |  
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            | Less accumulated depreciation and       |               |                              |         |               |         |              |         |      
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            |                                         |               | amortization                 |         |               | (55,210 | )            |         |       | (51,848 | )
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                 |                                            | Real estate, net                        |               |                              | 368,186 |               |         |              | 341,492 |      
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Asset held for sale                                                                              |                                            |                                         |              |                              |         |               | 4,559   |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Cash and cash equivalents                                                                        |                                            |                                         | 93,103        |                              |         |               | 2,272   |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Restricted cash                                                                                  |                                            |                                         | 8,681         |                              |         |               | 8,390   |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Accounts receivable, net of allowance for                                                        |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            | doubtful accounts of $1,015 in 2001 and |               |                              |         |               |         |              |         |      
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            | $722 in 2000                            |               |                              | 297     |               |         |              | 1,723   |      
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Receivable arising from the straight-lining of                                                   |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            | rents, net                              |               |                              | 17,504  |               |         |              | 15,084  |      
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Deferred lease and other property costs                                                          |                                            |                                         | 24,500        |                              |         |               | 24,453  |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Deferred debt expense                                                                            |                                            |                                         | 5,928         |                              |         |               | 2,280   |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Other assets                                                                                     |                                            |                                         | 5,160         |                              |         |               | 3,052   |             
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|TOTAL ASSETS                                                                                     |                                            | $                                       | 523,359       |                              |         | $             | 403,305 |             
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|LIABILITIES AND STOCKHOLDERS EQUITY:                                                            |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Debt (including $119,000 and $115,000 due to
Vornado Realty Trust)                               |                                            | $                                       | 458,444       |                              |         | $             | 367,788 |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Amounts due to Vornado Realty Trust and                                                          |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            |                                         | its affiliate |                              |         | 2,035         |         |              |         | 1,267 |        
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Accounts payable and accrued liabilities                                                         |                                            |                                         | 10,762        |                              |         |               | 13,821  |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Other liabilities                                                                                |                                            |                                         | 3,284         |                              |         |               | 2,734   |             
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|TOTAL LIABILITIES                                                                                |                                            |                                         | 474,525       |                              |         |               | 385,610 |             
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Minority Interest                                                                                |                                            |                                         | 1,220         |                              |         |               |        |             
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|COMMITMENTS AND CONTINGENCIES                                                                    |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|STOCKHOLDERS EQUITY:                                                                            |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Preferred stock: no par value;
authorized, 3,000,000 shares;
issued, none                        |                                            |                                         | 5,174         |                              |         |               | 5,174   |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Common stock: $1.00 par value per share;
authorized, 10,000,000 shares;
issued, 5,173,450 shares |                                            |                                         | 5,174         |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Additional capital                                                                               |                                            |                                         | 24,843        |                              |         |               | 24,843  |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Retained earnings/(deficit)                                                                      |                                            |                                         | 18,557        |                              |         |               | (11,362 | )           
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                 |                                            |                                         | 48,574        |                              |         |               | 18,655  |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|Less treasury shares, 172,600 shares                                                             |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 |                                            |                                         |               | at cost                      |         |               | (960    | )            |         |       | (960    | )
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                 | Total stockholders equity                 |                                         |               | 47,614                       |         |               |         | 17,695       |        
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                
|                                                                                                 | TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY |                                         | $             | 523,359                      |         |               | $       | 403,305      |        
|                                                                                                 |                                            |                                         |               |                              |         |               |         |             

See notes to consolidated financial statements.

3



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##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES




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

|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |        | 
|--------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | - | -------------------------- | ------ | ------------------------- | - | ------ | ------ | ---- | - | ------- | ------ |  | - | ------- | ------ | 
|                                                                                  |                                                                                                                                                                          |   | For The Three Months Ended |        | For The Nine Months Ended
|                                                                                  |                                                                                                                                                                          |   | September 30,              |        | September 30,            
|                                                                                  |                                                                                                                                                                          |   |                            |        |                          
|                                                                                  |                                                                                                                                                                          |   | 2001                       |        | 2000                      |   | 2001   |        | 2000
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |     
|REVENUES:                                                                         |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Property rentals                                                                                                                                                         |   | $                          | 10,935 |                           |   | $      | 10,676 |      |   | $       | 32,731 |  |   | $       | 31,843 | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Expense reimbursements                                                                                                                                                   |   |                            | 5,485  |                           |   |        | 5,706  |      |   |         | 17,641 |  |   |         | 15,713 | 
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|Total revenues                                                                    |                                                                                                                                                                          |   | 16,420                     |        |                           |   | 16,382 |        |      |   | 50,372  |        |  |   | 47,556  |       
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|EXPENSES:                                                                         |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Operating (including management fee to Vornado of $341
and $329 for the three months ended in 2001 and
2000; $1,015 and $997 for the nine months ended in
2001 and 2000) |   |                            | 6,788  |                           |   |        | 7,909  |      |   |         | 22,208 |  |   |         | 21,918 | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | General and administrative (including management fee to
Vornado of $540 and $1,620 each for the three and nine
months ended in 2001 and 2000) and 1999)                  |   |                            | 1,144  |                           |   |        | 6,921  |      |   |         | 2,872  |  |   |         | 9,676  | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                  | Depreciation and amortization                                                                                                                                            |   |                            | 1,610  |                           |   |        | 1,404  |      |   |         | 4,792  |  |   |         | 4,121  | 
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|Total expenses                                                                    |                                                                                                                                                                          |   | 9,542                      |        |                           |   | 16,234 |        |      |   | 29,872  |        |  |   | 35,715  |       
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|OPERATING INCOME                                                                  |                                                                                                                                                                          |   | 6,878                      |        |                           |   | 148    |        |      |   | 20,500  |        |  |   | 11,841  |       
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Interest and debt expense
(including interest on loans from Vornado)              |                                                                                                                                                                          |   | (6,073                     | )      |                           |   | (5,777 | )      |      |   | (15,379 | )      |  |   | (16,458 | )     
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Interest and other income, net                                                    |                                                                                                                                                                          |   | 1,457                      |        |                           |   | 206    |        |      |   | 2,258   |        |  |   | 854     |       
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|Income (loss) before gain on sale of Fordham Road property
and extraordinary item |                                                                                                                                                                          |   | 2,262                      |        |                           |   | (5,423 | )      |      |   | 7,379   |        |  |   | (3,763  | )     
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Gain on sale of Fordham Road property                                             |                                                                                                                                                                          |   |                           |        |                           |   |       |        |      |   | 19,026  |        |  |   |        |       
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Minority Interest                                                                 |                                                                                                                                                                          |   | (20                        | )      |                           |   |       |        |      |   | (20     | )      |  |   |        |       
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|Income (loss) before extraordinary item                                           |                                                                                                                                                                          |   | 2,242                      |        |                           |   | (5,423 | )      |      |   | 26,385  |        |  |   | (3,763  | )     
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Extraordinary gain from early extinguishment of debt                              |                                                                                                                                                                          |   |                           |        |                           |   |       |        |      |   | 3,534   |        |  |   |        |       
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|NET INCOME (LOSS)                                                                 |                                                                                                                                                                          | $ | 2,242                      |        |                           | $ | (5,423 | )      |      | $ | 29,919  |        |  | $ | (3,763  | )     
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Basic and diluted income (loss) per share
before extraordinary item               |                                                                                                                                                                          | $ | .45                        |        |                           | $ | (1.08  | )      |      | $ | 5.27    |        |  | $ | (.75    | )     
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Basic and diluted income (loss) per share
after extraordinary item                |                                                                                                                                                                          | $ | .45                        |        |                           | $ | (1.08  | )      |      | $ | 5.98    |        |  | $ | (.75    | )     
|                                                                                  |                                                                                                                                                                          |   |                            |        |                           |   |        |        |      |   |         |        |  |   |         |       

See notes to consolidated financial statements.

4



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##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES




CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)

|                                                                                         |                                                               |   |        |                           |   |      |         |         |   | 
|---------------------------------------------------------------------------------------- | ------------------------------------------------------------- | - | ------ | ------------------------- | - | ---- | ------- | ------- | - | 
|                                                                                         |                                                               |   |        | For The Nine Months Ended
|                                                                                         |                                                               |   |        | September 30,            
|                                                                                         |                                                               |   |        |                          
|                                                                                         |                                                               |   |        | 2001                      |   | 2000
|                                                                                         |                                                               |   |        |                           |   |     
|Cash Flows From Operating Activities:                                                    |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Net income (loss)                                                                        |                                                               | $ | 29,919 |                           |   | $    | (3,763  | )      
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Adjustments to reconcile net income (loss) to net
cash provided by operating activities: |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Depreciation and amortization (including debt issuance costs) |   |        | 6,043                     |   |      |         | 5,427   |  
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Straight-lining of rental income, net                         |   |        | (2,420                    | ) |      |         | (2,596  | )
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Gain on sale of Fordham Road property                         |   |        | (19,026                   | ) |      |         |        |  
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Minority
interest                                             |   |        | 20                        |   |      |         |        |  
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Stock appreciation rights compensation expense                |   |       |                           |   |      | 6,864   |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Extraordinary gain from early extinguishment of debt          |   | (3,534 | )                         |   |      |        |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Change in assets and liabilities:                                                        |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Accounts receivable                                           |   |        | 1,426                     |   |      |         | 1,066   |  
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Amounts due to Vornado Realty Trust and its affiliate         |   |        | 768                       |   |      |         | (2,618  | )
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Accounts payable and accrued expenses                         |   |        | (2,830                    | ) |      |         | 467     |  
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Other liabilities                                             |   |        | 550                       |   |      |         | (479    | )
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Other                                                         |   |        | (3,522                    | ) |      |         | (2,333  | )
|                                                                                         |                                                               |   |        |                           |   |      |         |        
|Net cash provided by operating activities                                                |                                                               |   | 7,394  |                           |   |      | 2,035   |        
|                                                                                         |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Cash Flows From Investing Activities:                                                    |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Additions to real estate                                      |   |        | (30,056                   | ) |      |         | (63,288 | )
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Proceeds from sale of Fordham Road property                   |   |        | 23,701                    |   |      |         |        |  
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Cash restricted for operating liabilities                     |   |        | (19,876                   | ) |      |         | (125    | )
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Cash made available for operating liabilities                 |   |        | 11,197                    |   |      |         |        |  
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Cash made available for construction and development          |   |        | 8,388                     |   |      |         | 11,350  |  
|                                                                                         |                                                               |   |        |                           |   |      |         |        
|Net cash used in investing activities                                                    |                                                               |   | (6,646 | )                         |   |      | (52,063 | )      
|                                                                                         |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Cash Flows From Financing Activities:                                                    |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Issuance of debt                                              |   |        | 232,685                   |   |      |         | 32,754  |  
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Debt repayments                                               |   |        | (138,723                  | ) |      |         | (222    | )
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Proceeds from minority interest                               |   |        | 1,200                     |   |      |         |        |  
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Deferred debt expense                                         |   |        | (5,079                    | ) |      |         | (616    | )
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                         | Payment of acquisition obligation                             |   |        |                          |   |      |         | (6,936  | )
|                                                                                         |                                                               |   |        |                           |   |      |         |        
|Net cash provided by financing activities                                                |                                                               |   | 90,083 |                           |   |      | 24,980  |        
|                                                                                         |                                                               |   |        |                           |   |      |         |        
|Net increase (decrease) in cash and cash equivalents                                     |                                                               |   | 90,831 |                           |   |      | (25,048 | )      
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Cash and cash equivalents at beginning of period                                         |                                                               |   | 2,272  |                           |   |      | 26,053  |        
|                                                                                         |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Cash and cash equivalents at end of period                                               |                                                               | $ | 93,103 |                           |   | $    | 1,005   |        
|                                                                                         |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Supplemental disclosure of cash flow information:                                        |                                                               |   |        |                           |   |      |         |        
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Cash payments for interest (of which $14,748 and $10,840 have
been capitalized)          |                                                               | $ | 29,008 |                           |   | $    | 24,827  |        
|                                                                                         |                                                               |   |        |                           |   |      |         |        

See notes to consolidated financial statements.

5



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##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.     CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Balance Sheet as of September 30, 2001, the Consolidated
Statements of Operations for the three and nine months ended September 30, 2001
and 2000, and the Consolidated Statements of Cash Flows for the nine months
ended September 30, 2001 and 2000 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, 2000 as
filed with the Securities and Exchange Commission. The results of operations
for the three and nine months ended September 30, 2001 are not necessarily
indicative of the operating results for the full year.

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

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

Vornado owns 33.1% of the Companys common stock at September 30, 2001.
The Company is managed by and its properties are redeveloped and leased by
Vornado, pursuant to agreements with a one-year term expiring in March of each
year which are automatically renewable. Under these agreements, the Company
incurred fees of $1,154,000 and $1,919,000 in the three month periods ended
September 30, 2001 and 2000, and $5,220,000 and $5,291,000 in the nine month
periods ended September 30, 2001 and 2000.

At September 30, 2001, the Company is indebted to Vornado in the amount of
$119,000,000 comprised of (i) $95,000,000 relating to the subordinated tranche
of a $115,000,000 secured financing, and (ii) $24,000,000 under a secured line
of credit ($26,000,000 remains available under this facility). On March 15,
2001, the interest rate on these loans was reset from 15.72% to 13.74% using
the same spread to treasuries as previously used. The Company incurred
interest on its loans from Vornado of $4,245,000 and $4,175,000 in the three
months ended September 30, 2001 and 2000, and $13,210,000 and $11,424,000 in
the nine months ended September 30, 2001 and 2000.

Minority Interest

In connection with tax planning for the development of the Companys
Lexington Avenue property, 100 shares of $.01 par value preferred stock was
sold by 59th Street Corporation (a wholly-owned subsidiary of the Company) to
Vornado on August 1, 2001 for $1,200,000. The non-convertible preferred stock
entitles the holder to cumulative 10% dividends payable semi-annually and is
redeemable at any time at the option of 59th Street Corporation.

3.      SALE OF FORDHAM ROAD PROPERTY

The Company sold its Fordham Road property, located in the Bronx, New
York, on January 12, 2001. The vacant property contains 303,000 square feet
and was sold for $25,500,000 resulting in a gain of $19,026,000. In addition,
the Company paid off the mortgage on this property at a discount, which
resulted in an extraordinary gain from the early extinguishment of debt of
$3,534,000. Included in the expenses relating to the sale, the Company paid a
commission of $1,020,000, of which $520,000 was paid to Vornado.

6



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##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

4.      LEXINGTON AVENUE

On May 1, 2001 the Company entered into a lease agreement with Bloomberg
L.P., a global, multi-media based distributor of information services. Under
this agreement, Bloomberg will lease approximately 700,000 square feet at the
Companys 59th Street and Lexington Avenue development property. The initial
term of the lease is for 25 years, with a ten-year renewal option. Base annual
net rent is $34,221,000 in each of the first four years and $38,226,000 in the
fifth year, with similar percentage increases thereafter.

The development plans currently consist of a proposed 1.4 million square
foot multi-use building comprised of a commercial portion, which may include a
combination of retail stores and offices; and a residential portion, consisting
of condominium units. If the residential portion of the property is developed,
the air rights representing the residential portion would be held by a taxable
REIT subsidiary, as a REIT is not permitted to sell condominiums without being
subject to a 100% excise tax on the gain from the sale of such condominiums. In
connection therewith, a wholly-owned subsidiary of the Company, Alexanders
Tower LLC (a taxable REIT subsidiary) has filed a Form 10 Registration
Statement with the Securities and Exchange Commission that allows the Companys
possible distribution, to its stockholders, of the equity interest in
Alexanders Tower LLC, which was formed to hold title to, and develop, the
residential portion of the property. There can be no assurance that
the residential portion will be built or that it will be distributed
to stockholders. The funding required for the proposed
building will be in excess of $650,000,000. The Company is exploring various
alternatives for financing the project, including equity, debt, joint ventures
and asset sales, which may involve arrangements with Vornado Realty Trust.

There can be no assurance that this project ultimately will be completed,
completed on time or completed for the budgeted amount. If the project is not
completed on a timely basis, the lease may be cancelled and significant
penalties may apply.

5.      KINGS PLAZA REGIONAL SHOPPING CENTER

The Company has completed an interior renovation of the Kings Plaza
Regional Shopping Center (the Center) at a cost of $31,655,000. These costs
were reclassified to Buildings, leaseholds and leasehold improvements from
Capitalized expenses, development costs and construction in progress during
the first quarter of this year. The exterior of the Center is expected to be
renovated next year.

On June 1, 2001, the Company, through a newly formed subsidiary, completed
a $223,000,000 refinancing of its subsidiarys Kings Plaza Regional Shopping
Center property and repaid the $115,210,000 debt collateralized by the property
from the proceeds of the new loan. The new 10-year mortgage matures in June
2011 and bears interest at 7.46%. Monthly payments include principal based on
a 27-year amortization schedule.

6.      COMMITMENTS AND CONTINGENCIES

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. The New York State Department of
Environmental Conservation (NYDEC) has approved a portion of the remediation
approach. The Company accrued $2,000,000 in previous years ($1,796,000 has
been paid as of September 30, 2001) 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. Based upon revised estimates, the Company
accrued an additional $675,000 in the second quarter of 2001. If the NYDEC
insists on a more extensive remediation approach, the Company could incur
additional obligations.

7



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##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 intends to pursue all available remedies
against any potentially responsible third parties, there can be no assurance
that such parties will be identified, or if identified, whether these
potentially responsible third parties will be solvent. In addition, the costs
associated with pursuing any potentially responsible parties may be cost
prohibitive. The Company has not recorded an asset as of September 30, 2001
for potential recoveries of environmental remediation costs from other parties.

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

Letters of Credit

Approximately $7,900,000 in standby letters of credit were issued at
September 30, 2001.

7.      INCOME (LOSS) PER SHARE

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

|                                                |                                                                                                     |                                         |   |                            |     |                           |   |        |       |      |   |        |      |  |   |        |      |  
|----------------------------------------------- | --------------------------------------------------------------------------------------------------- | --------------------------------------- | - | -------------------------- | --- | ------------------------- | - | ------ | ----- | ---- | - | ------ | ---- |  | - | ------ | ---- | -
|                                                |                                                                                                     |                                         |   | For The Three Months Ended |     | For The Nine Months Ended
|                                                |                                                                                                     |                                         |   | September 30,              |     | September 30,            
|                                                |                                                                                                     |                                         |   |                            |     |                          
|                                                |                                                                                                     |                                         |   | 2001                       |     | 2000                      |   | 2001   |       | 2000
|                                                |                                                                                                     |                                         |   |                            |     |                           |   |        |       |     
|(amounts in thousands except per share amounts) |                                                                                                     |                                         |   |                            |     |                           |   |        |       |      |   |        |      |  |   |       
|Numerator:                                      |                                                                                                     |                                         |   |                            |     |                           |   |        |       |      |   |        |      |  |   |       
|                                               
|                                               
|                                               
|                                               
|                                                | Income (loss) before extraordinary item                                                             |                                         | $ | 2,242                      |     |                           | $ | (5,423 | )     |      | $ | 26,385 |      |  | $ | (3,763 | )   
|                                               
|                                               
|                                               
|                                               
|                                                | Extraordinary item                                                                                  |                                         |   |                           |     |                           |   |       |       |      |   | 3,534  |      |  |   |       |     
|                                                |                                                                                                     |                                         |   |                            |     |                           |   |        |       |      |   |        |      |  |   |       
|                                                | Net income (loss)                                                                                   |                                         | $ | 2,242                      |     |                           | $ | (5,423 | )     |      | $ | 29,919 |      |  | $ | (3,763 | )   
|                                                |                                                                                                     |                                         |   |                            |     |                           |   |        |       |      |   |        |      |  |   |       
|Denominator:                                    |                                                                                                     |                                         |   |                            |     |                           |   |        |       |      |   |        |      |  |   |       
|                                               
|                                               
|                                               
|                                               
|                                                | Denominator for basic income per share 
weighted average shares
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 (loss) before extraordinary item |   | $                          | .45 |                           |   | $      | (1.08 | )    |   | $      | 5.27 |  |   | $      | (.75 | )
|                                               
|                                               
|                                               
|                                               
|                                                |                                                                                                     | Extraordinary item                      |   |                            |    |                           |   |        |      |      |   |        | .71  |  |   |        |     |  
|                                                |                                                                                                     |                                         |   |                            |     |                           |   |        |       |      |   |        |      |  |   |       
|                                                |                                                                                                     | Net income (loss) per common share      |   | $                          | .45 |                           |   | $      | (1.08 | )    |   | $      | 5.98 |  |   | $      | (.75 | )
|                                                |                                                                                                     |                                         |   |                            |     |                           |   |        |       |      |   |        |      |  |   |       

8



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##### Table of Contents



ALEXANDERS, INC.
AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

8.      RECENTLY ISSUED ACCOUNTING STANDARDS

In July 2001, the Financial Accounting Standards Board issued SFAS No.
141, Business Combinations and SFAS No. 142, Goodwill and Other Intangible
Assets. SFAS No. 141 is effective immediately and SFAS 142 will be
implemented in January 2002. The new standards are not expected to have a
significant impact on our financial statements.

In
August 2001, FASB issued SFAS No. 143, Accounting for Asset
Retirement Obligations(effective January 1, 2003) and SFAS
No. 144 Accounting for the Impairment or Disposal of Long-Lived
Assets(effective January 1, 2002). SFAS No. 143 requires the
recording of the fair value of a liability for an asset retirement
obligation in the period which it is incurred. SFAS No. 144
supercedes current accounting literature and now provides for a
single accounting model for long lived-assets to be disposed of by
sale and requires discontinued operations presentation for disposals
of a component of an entity. The Company is in the process of
evaluating the financial statement impact of the adoption of SFAS
No. 143 and 144.

9.      SUBSEQUENT EVENT

On
October 5, 2001, the Company entered into a ground lease for
its Paramus, N.J. property with IKEA Property, Inc. The lease has a 40-year term
with an option to purchase at the end of the 20th year for
$75,000,000.
Further, the Company has obtained a $68,000,000 interest only, non-recourse mortgage loan on
the property from a third party lender. The interest rate on the debt is 5.92%
with interest payable monthly until maturity in October, 2011. The
triple net rent each year is the sum of $700,000 plus
the amount of debt service on the mortgage loan.
If the purchase option is not exercised at the end of the 20th year, the triple
net rent for the last 20 years must include debt service
sufficient to fully amortize the $68,000,000 over the remaining 20 year lease
period. In addition, as a result of this transaction, the Company also repaid
$10,000,000 of the $20,000,000 outstanding term loan to a bank, which carries
an interest rate of LIBOR plus 1.85% (5.34% at September 30, 2001).

9



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##### Table of Contents






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

Certain statements contained herein constitute forward-looking statements
as such term is defined in Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Certain factors could cause actual results to differ materially from those in
the forward-looking statements. Factors that might cause such a material
difference include, but are not limited to, (a) changes in the general economic
climate, (b) local conditions such as an oversupply of space or a reduction in
demand for real estate in the area, (c) conditions of tenants, (d) competition
from other available space, (e) increased operating costs and interest expense,
(f) the timing of and costs associated with property improvements, (g) changes
in taxation or zoning laws, (h) government regulations, (i) failure of
Alexanders to continue to qualify as a REIT, (j) availability of financing on
acceptable terms, (k) potential liability under environmental or other laws or
regulations, (l) general competitive factors, (m) dependence upon Vornado
Realty Trust and (n) possible conflicts of interest with Vornado Realty Trust.

Results of Operations

The
Company had net income of $2,242,000 in the quarter ended September
30, 2001, compared to net loss of $5,423,000 in the quarter ended September
30, 2000, an increase of $7,665,000, and net income of $29,919,000 for the nine
months ended September 30, 2001, compared to net loss of $3,763,000 for the
nine months ended September 30, 2000, an increase of $33,682,000. Included in
the current nine months is a gain on the sale of the Fordham Road property of
$19,026,000 and an extraordinary gain from the early extinguishment of debt of
$3,534,000.

Tenant expense reimbursements were $5,485,000 in the quarter ended
September 30, 2001, compared to $5,706,000 in the prior years quarter, a
decrease of $221,000. This decrease is primarily due to decreased operating
costs of the utility plant at the Companys Kings Plaza Regional Shopping
Center. Tenant expense reimbursements were $17,641,000 for the nine months
ended September 30, 2001, compared to $15,713,000 for the nine months ended
September 30, 2000, an increase of $1,928,000. This increase resulted from (i)
reimbursements for incremental real estate taxes over the prior year, and (ii)
a change made in prior years nine months in the method of allocating an anchor
tenants share of parking lot expenses at the Rego Park I property (which
covered a number of years and reduced the prior years nine month amount).

Operating expenses were $6,788,000 in the quarter ended September 30,
2001, compared to $7,909,000 in the prior years quarter, a decrease of
$1,121,000. This decrease is primarily due to decreased operating costs
(primarily fuel) of the utility plant at the Companys Kings Plaza Regional
Shopping Center. Operating expenses were $22,208,000 for the nine months ended
September 30, 2001, compared to $21,918,000 for the nine months ended September
30, 2000, an increase of $290,000. This increase resulted from higher real
estate taxes as compared to the prior years nine month period and an
additional accrual of $675,000 for environmental remediation at the Kings Plaza
Regional Shopping Center.

General and administrative expenses were $1,144,000 in the quarter ended
September 30, 2001, compared to $6,921,000 in the prior years quarter, a
decrease of $5,777,000, and $2,872,000 for the nine months ended September 30,
2001, compared to $9,676,000 for the nine months ended September 30, 2000, a
decrease of $6,804,000. These decreases resulted primarily from compensation
expense of $5,881,000 and $6,864,000, for the prior years quarter and nine
months, relating to stock appreciation rights. No such expense occurred during
2001.

Depreciation and amortization expenses were $1,610,000 in the quarter
ended September 30, 2001, compared to $1,404,000 in the prior years quarter,
an increase of $206,000, and $4,792,000 for the nine months ended September 30,
2001, compared to $4,121,000 for the months ended September 30, 2000, an
increase of $671,000. These increases are the result of a refurbishment of the
Companys Kings Plaza Regional Shopping Center completed in the beginning of
2001.

Interest and debt expense was $6,073,000 in the quarter ended September
30, 2001, compared to $5,777,000 in the prior years quarter, an increase of
$296,000, and $15,379,000 for the nine months ended September 30, 2001,
compared to $16,458,000 for the nine months ended September 30, 2000, a
decrease of $1,079,000. These fluctuations occurred due to (i) additional
borrowing of $108,000,000 in connection with refinancing the Companys Kings
Plaza Regional Shopping Center on June 1, 2001, and (ii) higher capitalized
interest relating to the Companys development properties.

10



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##### Table of Contents



Interest and other income was $1,457,000 in the quarter ended September
30, 2001, compared to $206,000 in the prior years quarter, an increase of
$1,251,000, and $2,258,000 for the nine months ended September 30, 2001,
compared to $854,000 for the nine months ended September 30, 2000, an increase
of $1,404,000. These increases are primarily the result of higher average
invested balances, due to increased borrowings for the Companys Kings Plaza
Regional Shopping Center on June 1, 2001.

Liquidity and Capital Resources

In the aggregate, the Companys operating properties do not generate
sufficient cash flow to pay all of its expenses. The Companys two
non-operating properties (Lexington Avenue and Rego Park II) are in various
stages of development. As rents commence from portions of the development
property(s) and from the Companys vacant property, the Company expects that
cash flow will become positive.

The development plans currently consist of a proposed 1.4 million square
foot multi-use building comprised of a commercial portion, which may include a
combination of retail stores and offices; and a residential portion, consisting
of condominium units. If the residential portion of the property is developed,
the air rights representing the residential portion would be held by a taxable
REIT subsidiary, as a REIT is not permitted to sell condominiums without being
subject to a 100% excise tax on the gain from the sale of such condominiums. In
connection therewith, a wholly-owned subsidiary of the Company, Alexanders
Tower LLC (a taxable REIT subsidiary) has filed a Form 10 Registration
Statement with the Securities and Exchange Commission that allows the Companys
possible distribution, to its stockholders, of the equity interest in
Alexanders Tower LLC, which was formed to hold title to, and develop, the
residential portion of the property. There can be no assurance that
the residential portion will be built or that it will be distributed
to stockholders. The funding required for the proposed
building will be in excess of $650,000,000. The Company is exploring various
alternatives for financing the project, including equity, debt, joint ventures
and asset sales, which may involve arrangements with Vornado Realty Trust.

On May 1, 2001 the Company entered into a lease agreement with Bloomberg
L.P., under this agreement, Bloomberg will lease approximately 700,000 square
feet. The initial term of the lease is for 25 years, with a ten-year renewal
option. Base annual net rent is $34,221,000 in each of the first four years
and $38,226,000 in the fifth year with similar percentage increases thereafter.
There can be no assurance that this project ultimately will be completed,
completed on time or completed for the budgeted amount. If the project is not
completed on a timely basis, the lease may be cancelled and significant
penalties may apply.

On
October 5, 2001, the Company entered into a ground lease for
its Paramus, N.J. property with IKEA Property, Inc. The lease has a 40-year term
with an option to purchase at the end of the 20th year for
$75,000,000. Further, the Company has obtained a $68,000,000 interest
only, non-recourse mortgage loan on
the property from a third party lender. The interest rate on the debt is 5.92%
with interest payable monthly until maturity in October, 2011. The
triple net rent each year is the sum of $700,000 plus
the amount of debt service on the mortgage loan. If the purchase option is not exercised at the end of the 20th year, the triple
net rent for the last 20 years must include debt service
sufficient to fully amortize the $68,000,000 over the remaining 20 year lease
period. In addition, as a result of this transaction, the Company also repaid
$10,000,000 of the $20,000,000 outstanding term loan to a bank, which carries
an interest rate of LIBOR plus 1.85% (5.34% at September 30, 2001).

The Company sold its Fordham road property, located in the Bronx, New
York, on January 12, 2001. The vacant property contains 303,000 square feet
and was sold for $25,500,000 resulting in a gain of $19,026,000. In addition,
the Company paid off the $21,263,000 mortgage on this property at a discount,
which resulted in an extraordinary gain from the early extinguishment of debt
of $3,534,000.

During the first quarter ended March 31, 2001, the Company borrowed
$4,000,000 under the secured line of credit from Vornado. At September 30,
2001, $26,000,000 remains available under this facility.

On March 15, 2001 the interest rate on the $119,000,000 loans from Vornado
were reset from 15.72% to 13.74% using the same spread to treasuries as
previously used.

On June 1, 2001, the Company, through a newly formed subsidiary, completed
a $223,000,000 refinancing of its subsidiarys Kings Plaza Regional Shopping
Center property and repaid the $115,210,000 debt collateralized by

11



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##### Table of Contents



the property from the proceeds of the new loan. The new 10-year mortgage
matures in June 2011 and bears interest at 7.46%.

The Company estimates that the fair market values of its assets are
substantially in excess of their historical cost and that it has additional
borrowing capacity. 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) 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, 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 liabilities 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
payments of $138,723,000.

Nine Months Ended September 30, 2000

Net cash provided by operating activities of $2,035,000 was comprised of
(i) non-cash items of $9,695,000, offset by, (ii) net loss of $3,763,000, and
(iii) the net change in operating assets and liabilities of $3,897,000. The
adjustments for non-cash items are comprised of (i) depreciation and
amortization of $5,427,000, (ii) compensation expense of $6,864,000, partially
offset by (iii) the effect of straight-lining of rental income of $2,596,000.

Net cash used in investing activities of $52,063,000 was primarily
comprised of capital expenditures of $63,288,000, partially offset by the
release of restricted cash of $11,350,000. The capital expenditures were
primarily comprised of (i) excavation, foundation, predevelopment costs and air
rights purchases at Lexington Avenue of $30,418,000, (ii) renovations to the
Kings Plaza Regional Shopping Center of $19,758,000, and (iii) capitalized
interest and other carrying costs of $12,413,000.

Net cash provided by financing activities of $24,980,000 resulted
primarily from an increase in debt of $32,754,000 partially offset by the
payment of acquisition obligation of $6,936,000.

Funds from (used in) Operations for the Three and Nine Months Ended September
30, 2001 and 2000

Funds from operations was $3,227,000 in the quarter ended September 30,
2001, compared to funds used in operations of $5,396,000 in the prior years
quarter, an increase of $8,623,000. Funds from operations was $9,841,000 in
the nine months ended September 30, 2001, compared to funds used in operations
of $3,994,000 in the prior years nine months, an increase of $13,835,000. The
following table reconciles net income to funds from (used in) operations:

12



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##### Table of Contents



|                                                         |  |                            |           |                           |  |      |            |      |  |   |             |   |  |   |            |  
|-------------------------------------------------------- |  | -------------------------- | --------- | ------------------------- |  | ---- | ---------- | ---- |  | - | ----------- | - |  | - | ---------- | -
|                                                         |  | For The Three Months Ended |           | For The Nine Months Ended
|                                                         |  | September 30,              |           | September 30,            
|                                                         |  |                            |           |                          
|                                                         |  | 2001                       |           | 2000                      |  | 2001 |            | 2000
|                                                         |  |                            |           |                           |  |      |            |     
|Net income (loss)                                        |  | $                          | 2,242,000 |                           |  | $    | (5,423,000 | )    |  | $ | 29,919,000  |   |  | $ | (3,763,000 | )
|                                                        
|                                                        
|                                                        
|                                                        
|Gain on Sale of Fordham Road
property                    |  |                            |          |                           |  |      |           |      |  |   | (19,026,000 | ) |  |   |           |  
|                                                        
|                                                        
|                                                        
|                                                        
|Extraordinary gain from early
extinguishment of debt     |  |                            |          |                           |  |      |           |      |  |   | (3,534,000  | ) |  |   |           |  
|                                                        
|                                                        
|                                                        
|                                                        
|Depreciation and amortization of
real property           |  |                            | 1,610,000 |                           |  |      | 1,404,000  |      |  |   | 4,792,000   |   |  |   | 4,121,000  |  
|                                                        
|                                                        
|                                                        
|                                                        
|Straight-lining of property rentals
for rent escalations |  |                            | (735,000  | )                         |  |      | (815,000   | )    |  |   | (2,420,000  | ) |  |   | (2,596,000 | )
|                                                        
|                                                        
|                                                        
|                                                        
|Leasing fees paid in excess
of expense recognized        |  |                            |          |                           |  |      | (562,000   | )    |  |   |            |   |  |   | (1,756,000 | )
|                                                         |  |                            |           |                           |  |      |            |      |  |   |             |   |  |   |            |  
|                                                         |  | $                          | 3,117,000 |                           |  | $    | (5,396,000 | )    |  | $ | 9,731,000   |   |  | $ | (3,994,000 | )
|                                                         |  |                            |           |                           |  |      |            |      |  |   |             |   |  |   |            |  

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

|                     |  |                            |            |                           |  |      |             |      |  |   |            |   |  |   |             |  
|-------------------- |  | -------------------------- | ---------- | ------------------------- |  | ---- | ----------- | ---- |  | - | ---------- | - |  | - | ----------- | -
|                     |  | For The Three Months Ended |            | For The Nine Months Ended
|                     |  | September 30,              |            | September 30,            
|                     |  |                            |            |                          
|                     |  | 2001                       |            | 2000                      |  | 2001 |             | 2000
|                     |  |                            |            |                           |  |      |             |     
|Operating activities |  | $                          | 5,522,000  |                           |  | $    | (3,295,000  | )    |  | $ | 7,394,000  |   |  | $ | 2,035,000   |  
|                     |  |                            |            |                           |  |      |             |      |  |   |            |   |  |   |             |  
|Investing activities |  | $                          | (6,786,000 | )                         |  | $    | (18,446,000 | )    |  | $ | (6,646,000 | ) |  | $ | (52,063,000 | )
|                     |  |                            |            |                           |  |      |             |      |  |   |            |   |  |   |             |  
|Financing activities |  | $                          | 701,000    |                           |  | $    | 19,984,000  |      |  | $ | 90,083,000 |   |  | $ | 24,980,000  |  
|                     |  |                            |            |                           |  |      |             |      |  |   |            |   |  |   |             |  

Recently Issued Accounting Standards

In July 2001, the Financial Accounting Standards Board issued SFAS No.
141, Business Combinations and SFAS No. 142, Goodwill and Other Intangible
Assets. SFAS No. 141 is effective immediately and SFAS 142 will be
implemented in January 2002. The new standards are not expected to have a
significant impact on our financial statements.

In
August 2001, FASB issued SFAS No. 143, Accounting for Asset
Retirement Obligations(effective January 1, 2003) and SFAS
No. 144 Accounting for the Impairment or Disposal of Long-Lived
Assets(effective January 1, 2002). SFAS No. 143 requires the
recording of the fair value of a liability for an asset retirement
obligation in the period which it is incurred. SFAS No. 144
supercedes current accounting literature and now provides for a
single accounting model for long lived-assets to be disposed of by
sale and requires discontinued operations presentation for disposals
of a component of an entity. The Company is in the process of
evaluating the financial statement impact of the adoption of SFAS
No. 143 and 144.

13



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##### Table of Contents






Item 3. Quantitative and Qualitative Disclosures About Market Risk

At September 30, 2001, the Company had $35,000,000 of variable rate of
debt at a weighted average interest rate of 6.05% and $423,444,000 of fixed
rate of debt bearing interest at a weighted average interest rate of 9.18%. A
one percent increase in the base used to determine the interest rate of the
variable rate debt would result in a $350,000 decrease in the Companys annual
net income $.07 per basic and diluted share.

14



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##### Table of Contents






PART II. OTHER INFORMATION




Item 1. Legal Proceedings

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




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, 2001, the Company did not file any
reports on Form 8-K.

15



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##### Table of Contents






SIGNATURES

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

|                       |  |                                        
|---------------------- |  | ---------------------------------------
|                       |  | ALEXANDERS, INC                       
|                       |  |                                        
|                       |  | (Registrant)                           
|                      
|                      
|                      
|                      
|                       |  |                                        
|                      
|                      
|                      
|                      
|Date: November 1, 2001 |  | /s/ Patrick T. Hogan                   
|                       |  |                                        
|                       |  | Patrick T. Hogan,                      
|                      
|                      
|                      
|                      
|                       |  | Vice President, Chief Financial Officer

16



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##### Table of Contents






EXHIBIT INDEX

|            |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                          |  |     
|----------- |  | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|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) |  |  |  | Agreement, dated as of December 4, 1985, among
Seven Thirty One Limited Partnership (731
Limited Partnership), Alexanders Department
Stores of Lexington Avenue, Inc., the Company,
Emanuel Gruss, Riane Gruss and Elizabeth
Goldberg (collectively, the Partners).
Incorporated herein by reference from Exhibit
10(i)(F)(1) to the Registrants Form 10-K for
the fiscal year ended July 26, 1986 |  | *   
|           
|           
|           
|           
|10(i)(A)(2) |  |  |  | Amended and Restated Agreement of Limited
Partnership in the 731 Limited Partnership,
dated as of August 21, 1986, among the Partners.
Incorporated herein by reference from Exhibit 1
to the Registrants Current Report on Form 8-K,
dated August 21, 1986                                                                                                                                             |  | *   
|           
|           
|           
|           
|10(i)(A)(3) |  |  |  | Third Amendment to Amended and Restated
Agreement of Limited Partnership dated December
30, 1994, among the Partners. Incorporated
herein by reference from Exhibit 10(i)(A)(3) to
the Registrants Form 10-K for the fiscal year
ended December 31, 1994                                                                                                                                                |  | *   
|           
|           
|           
|           
|10(i)(B)(1) |  |  |  | Promissory Note Modification Agreement, dated
October 4, 1993, between Alexanders Department
Stores of New Jersey, Inc. and New York Life
Insurance Company (New York Life).
Incorporated herein by reference from Exhibit
10(i)(3)(a) to the Registrants Form 10-K for
the Transition Period August 1, 1993 to December
31, 1993                                                                    |  | *   
|           
|           
|           
|           
|10(i)(B)(2) |  |  |  | Mortgage Modification Agreement, dated October
4, 1993, by Alexanders Department Stores of New
Jersey, Inc. and New York Life. Incorporated
herein by reference from Exhibit 10(i)(E)(3)(a)
to the Registrants Form 10-K for the Transition
Period August 1, 1993 to December 31, 1993                                                                                                                 |  | *   
|           
|           
|           
|           
|10(i)(C)    |  |  |  | Credit Agreement, dated March 15, 1995, among
the Company and Vornado Lending Corp.
Incorporated herein by reference from Exhibit
10(i)(C) to the Registrants Form 10-K for the
fiscal year ended December 31, 1994                                                                                                                                                                                     |  | *   
|           
|           
|           
|           
|10(i)(C)(1) |  |  |  | Modification and Extension of Credit Agreement,
dated as of March 13, 2000, between Vornado
Lending L.L.C., as Lender, and Alexanders Inc.,
as Borrower. 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, 2000                                                                                         |  | *   
|           
|           
|           
|           
|10(i)(C)(2) |  |  |  | First Modification and Extension of Credit
Agreement dated as of March 15, 2000 between
Alexanders, Inc., as borrower, and Vornado
Lending L.L.C. as lender. 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, 2001                                                                                     |  | *   



---

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

17



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##### Table of Contents



|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                               |  |     
|------------ |  | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit      |  |   |  |                                                                                                                                                                                                                                                                                                                                                                               |  |     
|No.          |  |   |  |                                                                                                                                                                                                                                                                                                                                                                               |  | Page
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                               |  |     
|10 (i)(C)(3) |  |  |  | First Note Modification and Extension Agreement
dated as of March 15, 2000 between Alexanders
Inc. as borrower, and Vornado Lending L.L.C., as
lender. 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, 2001                                                                |  | *   
|            
|            
|            
|            
|10(i)(C)(4)  |  |  |  | Third Modification and Extension of Credit
Agreement dated as of March 15, 2000 between
Alexanders Inc. as borrower, and Vornado
Lending L.L.C., as lender. 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, 2001                                                           |  | *   
|            
|            
|            
|            
|10(i)(C)(5)  |  |  |  | Third Note Modification and Extension Agreement
dated as of March 15, 2000 between Alexanders
Inc. as borrower, and Vornado Lending L.L.C., as
lender. 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, 2001                                                                |  | *   
|            
|            
|            
|            
|10(i)(D)     |  |  |  | Credit Agreement, dated March 15, 1995, among
the Company and First Union Bank, National
Association. Incorporated herein by reference
from Exhibit 10(i)(D) to the Registrants Form
10-K for the fiscal year ended December 31,
1994                                                                                                                                        |  | *   
|            
|            
|            
|            
|10(i)(D)(1)  |  |  |  | Modification and Extension of Credit Agreement,
dated as of April 14, 2000, between First Union
National Bank, as lender, and Alexanders Inc.,
as borrower. 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)(D)(2)  |  |  |  | Pledge and Security Agreement for Transferable
Development Rights, dated as of April 14, 2000,
between First Union National Bank, as secured
party, 731 Limited Partnership, as assignor, and
Alexanders, Inc. as borrower, 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)(D)(3) |  |  |  | Modification and Extension of Credit Agreement
dated as of April 27, 2001 between Alexanders,
Inc. as borrower, and First Union National Bank,
as lender. Incorporated herein by reference from
Exhibit 10(i) (D) 3 to the Registrants
Quarterly Report on Form
10-Q for the fiscal quarter ended June 30, 2001                                                             |  | *   
|            
|            
|            
|            
|10 (i)(D)(4) |  |  |  | Note Modification and Extension Agreement of
Credit Agreement dated as of April 27, 2001
between Alexanders, Inc. as borrower, and First
Union National Bank, as lender. Incorporated
herein by reference from Exhibit 10(i) (D) 4 to
the Registrants Quarterly Report on Form 10-Q
for the fiscal quarter ended June 30, 2001                                              |  | *   
|            
|            
|            
|            
|10(i)(E)     |  |  |  | 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)(G)(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                                                             |  | *   



---

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

18



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##### Table of Contents



|                |  |   |  |                                                                                                                                                                                                                                                                                                                                                                |  |     
|--------------- |  | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit         |  |   |  |                                                                                                                                                                                                                                                                                                                                                                |  |     
|No.             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                |  | Page
|                |  |   |  |                                                                                                                                                                                                                                                                                                                                                                |  |     
|10(i)(G)(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)(H)        |  |  |  | Management and Development Agreement, dated as
of February 6, 1995, between Vornado Realty
Trust and the Company, on behalf of itself and
each subsidiary listed therein. Incorporated
herein by reference from Exhibit 10.1 to the
Registrants Current Report on Form 8-K dated
February 6, 1995                                                             |  | *   
|               
|               
|               
|               
|10(i)(I)        |  |  |  | Commitment letter, dated as of February 6, 1995,
between Vornado Realty Trust and the Company.
Incorporated herein by reference from Exhibit
10.3 to the Registrants Current Report on Form
8-K dated February 6, 1995                                                                                                                                        |  | *   
|               
|               
|               
|               
|10(i)(J)(1)     |  |  |  | First Amendment to Mortgage and Security
Agreement, dated as of February 24, 2000,
between Banc of America Commercial Finance
Corporation, as mortgagee, and Alexanders of
Fordham Road, Inc., as mortgagor. 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)(J)(2)     |  |  |  | Amended and Restated Promissory Note (Secured),
dated as of February 24, 2000, between Banc of
America Commercial Finance Corporation, as
lender, and Alexanders of Fordham Road, Inc.,
as borrower. 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)(J)(3)     |  |  |  | Trigger Agreement, dated as of February 24,
2000, between Banc of America Commercial Finance
Corporation, as lender, and Alexanders, Inc.,
as guarantor. 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)(K)        |  |  |  | Term Loan Agreement dated as of June 18, 1998
among Alexanders Kings Plaza Center, Inc.,
Kings Plaza Corp., and Alexanders Department
Stores of Brooklyn, Inc., as Borrower, Union
Bank of Switzerland, as Lender. Incorporated
herein by reference from Exhibit 10 to the
Registrants Form 10-Q for the fiscal quarter
ended June 30, 1998                 |  | *   
|               
|               
|               
|               
|10(ii)(A)(3)    |  |  |  | Agreement of Lease for Rego Park, Queens, New
York, between Alexanders, Inc. and Sears
Roebuck & Co. Incorporated herein by reference
from Exhibit 10.1 to the Registrants Quarterly
Report on Form 10-Q for the fiscal quarter ended
March 31, 1994                                                                                                         |  | *   
|               
|               
|               
|               
|10(ii)(A)(4)(a) |  |  |  | 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)(b) |  |  |  | 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                                                                                                                           |  | *   



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

19



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##### Table of Contents



|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |     
|------------ |  | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit      |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |     
|No.          |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | Page
|             |  |   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |     
|10(ii)(A)(6) |  |  |  | Agreement of Lease for Rego Park, Queens, New
York, between the Company and Marshalls of
Richfield, MN., Inc., dated as of March 1, 1995.
Incorporated herein by reference from Exhibit
10(ii)(A)(12)(a) to the Registrants Form 10-K
for the fiscal year ended December 31, 1994                                                                                                                                                                                    |  | *   
|            
|            
|            
|            
|10(ii)(A)(7) |  |  |  | Guaranty, dated March 1, 1995, of the Lease
described in Exhibit 10(ii)(A)(6)(a) above by
the Company. Incorporated herein by reference
from Exhibit 10(ii)(A)(12)(b) to the
Registrants Form 10-K for the fiscal year ended
December 31, 1994                                                                                                                                                                                                                       |  | *   
|            
|            
|            
|            
|10(iii)(B)   |  |  |  | Employment Agreement, dated February 9, 1995,
between the Company and Stephen Mann.
Incorporated herein by reference from Exhibit
10(iii)(B) to the Registrants Form 10-K for the
fiscal year ended December 31, 1994                                                                                                                                                                                                                                                |  | *   
|            
|            
|            
|            
|10(iv)(A)    |  |  |  | Registrants Omnibus Stock Plan, as amended,
dated May 28, 1997. Incorporated herein by
reference from Exhibit 10 to the Registrants
Form 10-Q for the fiscal quarter ended June 30,
1997                                                                                                                                                                                                                                                                            |  | *   
|            
|            
|            
|            
|10(v)(A)(1)  |  |  |  | Amended and Restated Consolidated Mortgage and
Security Agreement dated as of May 31, 2001
among Alexanders Kings Plaza L.L.C. as
mortgagor, Alexanders of King L.L.C., as
mortgagor and Kings Parking L.L.C., as
mortgagor, collectively borrower, to Morgan
Guaranty Trust Company of New York, as
mortgagee. Incorporated herein by reference from
Exhibit 10(v) A1 to the Registrants Quarterly
Report on Form 10-Q for the fiscal quarter ended
June 30, 2001 |  | *   
|            
|            
|            
|            
|10(v)(A)(2)  |  |  |  | Amended, Restated and Consolidated Promissory
Note, dated as of May 31, 2001 by and between
Alexanders Kings Plaza L.L.C., Alexanders of
Kings L.L.C. and Kings Parking L.L.C.,
collectively borrower, and Morgan Guaranty Trust
Company of New York, lender. Incorporated herein
by reference from Exhibit 10(v) A2 to the
Registrants Quarterly Report on Form 10-Q for
the fiscal quarter ended June 30, 2001                                                   |  | *   
|            
|            
|            
|            
|10(v)(A)(3)  |  |  |  | Cash Management Agreement dated as of May 31,
2001 by and between Alexanders Kings Plaza
L.L.C., Alexanders of Kings L.L.C. and Kings
Parking L.L.C., collectively borrower, and
Morgan Guaranty Trust Company of New York,
lender. Incorporated herein by reference from
Exhibit 10(v) A3 to the Registrants Quarterly
Report on Form 10-Q for the fiscal quarter ended
June 30, 2001                                                                             |  | *   
|            
|            
|            
|            
|10(v)(B)     |  |  |  | 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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|* |  | Incorporated by reference
|- |  | -------------------------

20