UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10‐K  x

   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   For the Fiscal Year Ended:

   December 31, 2010
  OR  o

   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   For the transition period from

   toCommission File Number:

   001-6064
   ALEXANDER’S, INC.(Exact name of registrant as specified in its charter)
   Delaware

   

   51-0100517(State or other jurisdiction of incorporation or organization)

   

   (IRS Employer Identification No.)210 Route 4 East, Paramus, New Jersey

   

   07652(Address of principal executive offices)

   

   (Zip Code)
   Registrant’s telephone number, including area code

   (201)587-8541
   Securities registered pursuant to Section 12(b) of the Act:   Title of each class

   

   Name of each exchange on which registeredCommon Stock, $1 par value per share

   

   New York Stock Exchange
   Securities registered pursuant to Section 12(g) of the Act: NONE Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Exchange Act.YESoNOx  Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 (d) of the Act. YESoNOx  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. YESxNOo


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Indicate by check mark
whether the registrant has submitted electronically and posted on its corporate
Web site, if any, 
every Interactive Data File required to be submitted and posted pursuant to
Rule 405 of Regulation S-T (Section  232.405 
of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit 
and post such files).oYesoNo  Indicate by check mark if disclosure of delinquent
filers pursuant to Item 405 of Regulation S‐K is not contained herein,
and will not be contained, to the best of the registrant’s knowledge, in
definitive proxy or information statements incorporated by reference in Part
III of this Form 10‐K or any amendment to this Form 10‐K.o  Indicate by check mark whether the registrant is a large
accelerated filer, accelerated filer, a non-accelerated filer, or a 
smaller reporting company. See the definitions of “large accelerated filer,”
“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.   oLarge Accelerated Filer
 
 xAccelerated FileroNon-Accelerated Filer (Do not check if smaller reporting company)
 
 oSmaller Reporting Company
   Indicate by check mark whether the registrant is a
shell company (as defined in Rule 12b-2 of the Act).YESoNOx   The aggregate market
value of the voting and non-voting shares of common stock held by
non-affiliates of the registrant, (i.e., by persons other than officers and
directors of Alexander’s, Inc.) was $622,802,000 at June 30, 2010.   As of December 31, 2010
there were 5,105,936 shares of the registrant’s common stock outstanding.   DOCUMENTS INCORPORATED BY REFERENCE  Part III: Portions of the Proxy Statement for the Annual
Meeting of Stockholders to be held on May 26, 2011.


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TABLE OF CONTENTSItem
    
    
    PagePart I.1.
    Business
    41A.
    Risk Factors
    71B.
    Unresolved Staff Comments
    152.
    Properties
    163.
    Legal Proceedings
    20Part II.5.
    Market for Registrant’s Common Equity,
      Related Stockholder Matters and IssuerPurchases of Equity Securities
    216.
    Selected Financial Data
    237.
    Management’s Discussion and Analysis of
      Financial Condition and Results of Operations
    247A.
    Quantitative and Qualitative Disclosures
      about Market Risk
    378.
    Financial Statements and Supplementary
      Data
    389.
    Changes in and Disagreements With Accountants
      on Accounting and Financial Disclosure
    569A.
    Controls and Procedures
    569B.
    Other Information
    59Part III.10.
    Directors, Executive Officers and Corporate
      Governance(1)
    5911.
    Executive
      Compensation(1)
    6012.
    Security Ownership of Certain Beneficial
      Owners and Management and RelatedStockholder
    Matters(1)
    6013.
    Certain Relationships and Related
      Transactions, and Director Independence(1)
    6014.
    Principal Accounting Fees and
      Services(1)
    60Part IV.15.
    Exhibits and Financial Statement
      Schedules
    61Signatures
    
    
    62
  _____________________________ (1)These items are
omitted in part or in whole because the registrant will file a definitive Proxy
Statement pursuant to Regulation 14A under the Securities Exchange Act of 1934
with the Securities and Exchange Commission no later than 120 days after
December 31, 2010, portions of which are incorporated by reference herein.  2


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FORWARD-LOOKING STATEMENTS  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.  Forward-looking
statements are not guarantees of performance.  They represent our
intentions, plans, expectations and beliefs and are subject to numerous
assumptions, risks and uncertainties.  Our future results, financial
condition, results of operations and business may differ materially from those
expressed in these forward-looking statements.  You can find many of these
statements by looking for words such as “approximates,” “believes,” “expects,”
“anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar
expressions in this Annual Report on Form 10‐K.  We also note the following
forward-looking statements:  in the case of our development projects, the
estimated completion date, estimated project costs and costs to complete; and
estimates of dividends on shares of our common stock.  Many of the factors
that will determine the outcome of these and our other forward-looking
statements are beyond our ability to control or predict.  For a further
discussion of factors that could materially affect the outcome of our
forward-looking statements, see “Item 1A - Risk Factors” in this Annual Report
on Form 10‐K.  For these
statements, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995.  You are cautioned not to place undue reliance on our forward-looking
statements, which speak only as of the date of this Annual Report on Form 10-K
or the date of any document incorporated by reference.  All subsequent
written and oral forward-looking statements attributable to us or any person
acting on our behalf are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section.  We do not undertake
any obligation to release publicly, any revisions to our forward-looking
statements to reflect events or circumstances after the date of this Annual
Report on Form 10-K. 3


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PART I ITEM 1.     BUSINESS GENERAL Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties.  All references to “we,” “us,” “our,” “Company” and “Alexander’s” refer to Alexander’s, Inc. and its consolidated subsidiaries.  We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO).  We have seven properties in the greater New York City metropolitan area consisting of:  Operating properties  (i)     the 731 Lexington Avenue property, a 1,307,000 square foot multi-use building, comprising the entire square block bounded by Lexington Avenue, East 59th Street, Third Avenue and East 58th Street in Manhattan.  The building contains 885,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold.  Bloomberg L.P. (“Bloomberg”) occupies all of the office space.  The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants;  (ii)     the Kings Plaza Regional Shopping Center contains 1,210,000 square feet and is located on Flatbush Avenue in Brooklyn.  The center is anchored by a 339,000 square foot Macy’s (owned by Macy’s, Inc.), a 289,000 square foot Sears department store and a 114,000 square foot Lowe’s on land leased from us;  (iii)the Rego Park I Shopping Center contains 343,000 square feet and is located on Queens Boulevard and 63rd Road in Queens.  The center is anchored by a 195,000 square foot Sears department store, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls.  In January 2011, we leased 50,000 square feet to Burlington Coat Factory;  (iv)the Rego Park II property, a newly developed 615,000 square foot shopping center, islocated adjacent to our Rego Park I property in Queens.  As of December 31, 2010, 89% of the center is in service and such portion is 100% leased, primarily to three anchor tenants: a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.  In addition 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado;  (v)    the Paramus property, located at the intersection of Routes 4 and 17 in Paramus, New Jersey, consists of 30.3 acres of land leased to IKEA Property, Inc.;  (vi)   the Flushing property, a 167,000 square foot building, is located at Roosevelt Avenue and Main Street in Queens and is sub-leased to New World Mall LLC for the remainder of our ground lease term; and  Property to be developed  (vii)the Rego Park III property is a 3.4 acre land parcel adjacent to our Rego Park II property in Queens at the intersection of Junction Boulevard and the Horace Harding Service Road.  4


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Business
Environment Substantially all businesses, including ours, were
negatively affected by the 2008/2009 economic recession and illiquidity and
volatility in the capital and financial markets.  Although there are signs
of an economic recovery and greater stability in the capital and financial
markets, it is not possible for us to predict whether these trends will continue
in the future or quantify the impact of these or any other trends on our
financial results.  Significant Tenants Bloomberg
accounted for $83,137,000, $77,988,000 and $66,333,000, or 34%, 35% and 31% of
our consolidated revenues in the years ended December 31, 2010, 2009 and 2008,
respectively.  No other tenant accounted for more than 10% of our
consolidated revenues in any of the last three years.  If we were to lose
Bloomberg as a tenant, or if Bloomberg were to fail or become unable to perform
its obligations under its lease, it would adversely affect our results of
operations and financial condition.  We receive and evaluate certain
confidential financial information and metrics from Bloomberg on a semi-annual
basis.  In addition, we access and evaluate financial information regarding
Bloomberg from private sources, as well as publicly available data.  Relationship with Vornado At December 31,
2010, Vornado owned 32.4% of our outstanding common stock.  Steven Roth is
the Chairman of our Board of Directors and Chief Executive Officer, the Managing
General Partner of Interstate Properties (“Interstate”), a New Jersey general
partnership, and the Chairman of the Board of Trustees of Vornado.  At
December 31, 2010, Mr. Roth, Interstate and its other two general partners,
David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the
Company and trustees of Vornado) owned, in the aggregate, 27.2% of our
outstanding common stock, in addition to the 2.3% they indirectly own through
Vornado.  Michael D. Fascitelli, President and Chief Executive Officer of
Vornado, is our President and a member of our Board of Directors.  Joseph
Macnow, our Executive Vice President and Chief Financial Officer, holds the same
position with Vornado.  We are managed
by, and our properties are leased and developed by, Vornado, pursuant to
agreements which expire in March of each year and are automatically
renewable.  Vornado is a fully-integrated REIT with significant experience
in managing, leasing, developing, and operating retail and office
properties.  Environmental Matters In July 2006, we
discovered an oil spill at our Kings Plaza Regional Shopping Center.  We
have notified the New York State Department of Environmental Conservation
(“NYSDEC”) about the spill and have developed a remediation plan. The NYSDEC has
approved a portion of the remediation plan and clean up is ongoing.  The
estimated costs associated with the clean up will aggregate approximately
$2,500,000.  We have paid $500,000 of such amount and the remainder is
covered under our insurance policy.  Competition We operate in a
highly competitive environment.  All of our properties are located in the
greater New York City metropolitan area.  We compete with a large number of
property owners and developers.  Principal factors of competition are the
amount of rent charged, attractiveness of location and quality and breadth of
services provided.  Our success depends upon, among other factors, trends
of national and local economies, the financial condition and operating results
of current and prospective tenants, the availability and cost of capital,
interest rates, construction and renovation costs, taxes, governmental
regulations and legislation, population trends, zoning laws, and our ability to
lease, sublease or sell our properties, at profitable levels.  Our success
is also subject to our ability to refinance existing debt as it comes due and on
acceptable terms. 5


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Employees We currently
have 80 employees.  Executive Office Our executive
office is located at 210 Route 4 East, Paramus, New Jersey, 07652 and our
telephone number is (201) 587-8541.  Available Information Copies of our
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on
Form 8-K, and amendments to these reports, as well as Reports on Forms 3, 4 and
5 regarding officers, directors, and 10% beneficial owners filed or furnished
pursuant to Section 13(a), 15(d) or 16(a) of the Securities Exchange Act of
1934, are available free of charge on our website (www.alx-inc.com) as soon as
reasonably practicable after they are electronically filed with, or furnished
to, the Securities and Exchange Commission (“SEC”).  Also available on our
website are copies of our (i) Audit Committee Charter, (ii) Compensation
Committee Charter, (iii) Code of Business Conduct and Ethics and (iv) Corporate
Governance Guidelines.  In the event of any changes to these items, revised
copies will be made available on our website.  Copies of these documents
are also available directly from us, free of charge.  On April 11,
2000, Vornado and Interstate filed with the SEC, the 26th amendment
to a Form 13D indicating that they, as a group, own in excess of 51% of our
common stock.  This ownership level makes us a “controlled” company for the
purposes of the New York Stock Exchange, Inc.’s Corporate Governance Standards
(the “NYSE Rules”).  This means that we are not required to, among other
things, have a majority of the members of our Board of Directors be independent
under the NYSE Rules, have all of the members of our Compensation Committee be
independent under the NYSE Rules or to have a Nominating Committee.  While
we have voluntarily complied with a majority of the independence requirements of
the NYSE Rules, we are under no obligation to do so and this situation may
change at anytime. 6


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ITEM 1a.  risk factors Material factors
that may adversely affect our business and operations are summarized below.  REAL ESTATE INVESTMENTS’ VALUE AND
INCOME FLUCTUATE DUE TO VARIOUS FACTORS. The value of
real estate fluctuates depending on conditions in the general economy and the
real estate business.  These conditions may also adversely impact our
revenues and cash flows.  The factors that
affect the value of our real estate include, among other things:  ·national, regional and local economic
conditions; ·competition from other available space; ·local conditions such as an oversupply of space or
a reduction in demand for real estate in the area; ·how
well we manage our properties; ·changes in market rental rates; ·the
timing and costs associated with property improvements and rentals; ·whether we are able to pass all or portions of any
increases in operating costs through to tenants; ·changes in real estate taxes and other
expenses; ·whether tenants and users such as customers and
shoppers consider a property attractive; ·the
financial condition of our tenants, including the extent of tenant bankruptcies
or defaults; ·availability of financing on acceptable terms or at
all; ·fluctuations in interest rates; ·our
ability to obtain adequate insurance; ·changes in zoning laws and taxation; ·government regulation; ·consequences of any armed conflict involving, or
terrorist attack against, the United States; ·potential liability under environmental or other
laws or regulations; ·natural disasters; ·general competitive factors; and ·climate changes.  The rents we
receive and the occupancy levels at our properties may decline as a result of
adverse changes in any of these factors.  If our rental revenues and/or
occupancy levels decline, we generally would expect to have less cash available
to pay our indebtedness and for distribution to our stockholders.  In
addition, some of our major expenses, including mortgage payments, real estate
taxes and maintenance costs generally do not decline when the related rents
decline.  Capital markets
and economic conditions can materially affect our financial condition and
results of operations and the value of our debt and equity
securities. There are many
factors that can affect the value of our debt and equity securities, including
the state of the capital markets and economy which have recently negatively
affected substantially all businesses, including ours.  Demand for office
and retail space may decline nationwide as it did in 2008 and 2009, due to
bankruptcies, downsizing, layoffs and cost cutting.  The cost and
availability of credit may be adversely affected by illiquid credit markets and
wider credit spreads may adversely affect our liquidity and financial condition,
and the liquidity and financial condition of our tenants.  Our inability or
the inability of our tenants to timely refinance maturing liabilities and access
the capital markets to meet liquidity needs may materially effect our financial
condition and results of operations and the value of our debt and equity
securities.  Real estate is a competitive
business. We operate in a
highly competitive environment.  All of our properties are located in the
greater New York City metropolitan area.  We compete with a large number of
real estate property owners and developers, some of which may be willing to
accept lower returns on their investments.  Principal factors of
competition are rents charged, attractiveness of location, the quality of the
property and breadth and quality of services provided.  Our success depends
upon, among other factors, trends of national and local economies, the financial
condition and operating results of current and prospective tenants and
customers, availability and cost of capital, construction and renovation costs,
taxes, governmental regulations, legislation and population trends.   7


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We depend on leasing space to tenants on
economically favorable terms and collecting rent from tenants who may not be
able to pay. Our financial
results depend significantly on leasing space in our properties to tenants on
economically favorable terms.  In addition, because a majority of our
income is derived from renting real property, our income, funds available to pay
indebtedness and funds available for distribution to stockholders will decrease
if certain of our tenants cannot pay their rent or if we are not able to
maintain our level of occupancy on favorable terms.  If a tenant does not
pay its rent, we might not be able to enforce our rights as landlord without
delays and might incur substantial legal and other costs.  During periods
of economic adversity, there may be an increase in the number of tenants that
cannot pay their rent and an increase in vacancy rates.  Bankruptcy or insolvency of tenants may
decrease our revenues, net income and available cash. From time to
time, some of our tenants have declared bankruptcy, and other tenants may
declare bankruptcy or become insolvent in the future.  In the case of our
shopping centers, the bankruptcy or insolvency of a major tenant could cause us
to have difficulty leasing the remainder of the affected property.  Our
leases generally do not contain restrictions designed to ensure the
creditworthiness of our tenants.  As a result, the bankruptcy or insolvency
of a major tenant could result in a lower level of net income and funds
available for the payment of our indebtedness or distribution to
stockholders.  Some of our tenants represent a
significant portion of our revenues.  Loss of these tenant relationships or
deterioration in the tenants’ credit quality could adversely affect our
financial condition or results of operation. Bloomberg
accounted for $83,137,000, $77,988,000 and $66,333,000, or 34%, 35% and 31% of
our consolidated revenues in the years ended December 31, 2010, 2009 and 2008,
respectively.  No other tenant accounted for more than 10% of our
consolidated revenues in any of the last three years.  If we were to lose
Bloomberg as a tenant, or if Bloomberg were to fail or become unable to perform
its obligations under its lease, it would adversely affect our results of
operations and financial condition.  Inflation or
deflation may adversely affect our financial condition and results of
operations. Although neither
inflation nor deflation has materially impacted our operations in the recent
past, increased inflation could have a pronounced negative impact on our
mortgages and interest rates and general and administrative expenses, as these
costs could increase at a rate higher than our rents.  Inflation could also
have an adverse effect on consumer spending which could impact our tenants’
sales and, in turn, our percentage rents, where applicable.  Conversely,
deflation could lead to downward pressure on rents and other sources of
income.  Our business and operations would suffer in the
event of system failures.  Despite system redundancy, the implementation of
security measures and the existence of a disaster recovery plan for our internal
information technology systems, our systems are vulnerable to damages from any
number of sources, including computer viruses, unauthorized access, energy
blackouts, natural disasters, terrorism, war and telecommunication
failures.  Any system failure or accident that causes interruptions in our
operations could result in a material disruption to our business.  We may
also incur additional costs to remedy damages caused by such
disruptions.   8


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We may incur costs to comply with
environmental laws. Our operations
and properties are subject to various federal, state and local laws and
regulations concerning the protection of the environment including air and water
quality, hazardous or toxic substances and health and safety.  Under some
environmental laws, a current or previous owner or operator of real estate may
be required to investigate and clean up hazardous or toxic substances released
at a property.  The owner or operator may also be held liable to a
governmental entity or to third parties for property damage or personal injuries
and for investigation and clean-up costs incurred by those parties because of
the contamination.  These laws often impose liability without regard to
whether the owner or operator knew of the release of the substances or caused
such release.  The presence of contamination or the failure to remediate
contamination may impair our ability to sell or lease real estate or to borrow
using the real estate as collateral.  Other laws and regulations govern
indoor and outdoor air quality including those that can require the abatement or
removal of asbestos-containing materials in the event of damage, demolition,
renovation or remodeling and also govern emissions of and exposure to asbestos
fibers in the air.  The maintenance and removal of lead paint and certain
electrical equipment containing polychlorinated biphenyls (PCBs) and underground
storage tanks are also regulated by federal and state laws.  We are also
subject to risks associated with human exposure to chemical or biological
contaminants such as molds, pollens, viruses and bacteria which, above certain
levels, can be alleged to be connected to allergic or other health effects and
symptoms in susceptible individuals.  We could incur fines for
environmental compliance and be held liable for the costs of remedial action
with respect to the foregoing regulated substances or tanks or related claims
arising out of environmental contamination or human exposure at or from our
properties.  In July 2006, we
discovered an oil spill at our Kings Plaza Regional Shopping Center.  We
have notified the New York State Department of Environmental Conservation
(“NYSDEC”) about the spill and have developed a remediation plan. The NYSDEC has
approved a portion of the remediation plan and clean up is ongoing.  The
estimated costs associated with the clean up will aggregate approximately
$2,500,000.  We have paid $500,000 of such amount and the remainder is
covered under our insurance policy.  Each of our
properties has been subjected to varying degrees of environmental assessment at
various times.  Except as referenced above, the environmental assessments
did not, as of the date of this Annual Report on Form 10-K, reveal any
environmental condition material to our business.  However, identification
of new compliance concerns or undiscovered areas of contamination, changes in
the extent or known scope of contamination, discovery of additional sites, human
exposure to the contamination or changes in cleanup or compliance requirements
could result in significant costs to us.  Some of our potential losses may not be
covered by insurance. We maintain
general liability insurance with limits of $300,000,000 per occurrence and
all-risk property and rental value insurance coverage with limits of $1.7
billion per occurrence, including coverage for terrorist acts, with sub-limits
for certain perils such as floods and earthquakes on each of our
properties.  There can be no assurance that we will be able to maintain
similar levels of insurance coverage in the future in amounts and on terms that
are commercially reasonable.  We are responsible for deductibles and losses
in excess of our insurance coverage, which could be material.  Our mortgage
loans are non-recourse to us, except for $75,000,000 of the $320,000,000
mortgage on our 731 Lexington Avenue property, in the event of a substantial
casualty, as defined.  Our mortgage loans contain customary covenants
requiring us to maintain insurance.  If lenders insist on greater coverage
than we are able to obtain, it could adversely affect our ability to finance our
properties.  Compliance or failure to comply with the
Americans with Disabilities Act or other safety regulations and requirements
could result in substantial costs. The Americans
with Disabilities Act (“ADA”) generally requires that public buildings,
including our properties, meet certain federal requirements related to access
and use by disabled persons.  Noncompliance could result in the imposition
of fines by the federal government or the award of damages to private
litigants.  If, under the ADA, we are required to make substantial
alterations and capital expenditures in one or more of our properties, including
the removal of access barriers, it could adversely affect our financial
condition and results of operations, as well as the amount of cash available for
distribution to stockholders.  Our properties
are subject to various federal, state and local regulatory requirements, such as
state and local fire and life safety requirements.  If we fail to comply
with these requirements, we could incur fines or private damage awards.  We
do not know whether existing requirements will change or whether compliance with
future requirements will require significant unanticipated expenditures that
will affect our cash flow and results of operations. 9


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OUR INVESTMENTS ARE CONCENTRATED IN THE
GREATER NEW YORK CITY METROPOLITAN AREA. CIRCUMSTANCES AFFECTING THIS AREA
GENERALLY COULD ADVERSELY AFFECT OUR BUSINESS. All of our properties are in the greater
New York City metropolitan area and are affected by the economic cycles and
risks inherent in that area. All of our
revenues come from properties located in the greater New York City metropolitan
area.  Real estate markets are subject to economic downturns and we cannot
predict how economic conditions will impact this market in either the short or
long term.  Declines in the economy or a decline in the real estate market
in this area could hurt our financial performance and the value of our
properties.  The factors affecting economic conditions in this area
include:  ·financial performance and productivity of the
publishing, advertising, financial, technology, retail, insurance and real
estate industries; ·unemployment levels; ·business layoffs or downsizing; ·industry slowdowns; ·relocations of businesses; ·changing demographics; ·increased telecommuting and use of alternative work
places; ·infrastructure quality; and ·any
oversupply of, or reduced demand for, real estate.  It is impossible
for us to assess the future effects of trends in the economic and investment
climates of the greater New York City metropolitan region, and more generally of
the United States, on the real estate market in this area.  Local, national
or global economic downturns, would negatively affect our businesses and
profitability.  Terrorist attacks, such as those of
September 11, 2001 in New York City, may adversely affect the value of our
properties and our ability to generate cash flow. All of our
properties are located in the greater New York City metropolitan area.  In
the aftermath of a terrorist attack, tenants in this area may choose to relocate
their businesses to less populated, lower-profile areas of the United States
that are not as likely to be targets of future terrorist activity and fewer
customers may choose to patronize businesses in this area.  This would
trigger a decrease in the demand for space in these markets, which could
increase vacancies in our properties and force us to lease our properties on
less favorable terms.  As a result, the value of our properties and the
level of our revenues could decline materially.  We are subject
to risks that affect the general retail environment. A substantial
portion of our properties are in the retail shopping center real estate
market.  This means that we are subject to factors that affect the retail
environment generally, including the level of consumer spending and consumer
confidence, unemployment rates, the threat of terrorism and increasing
competition from discount retailers, outlet malls, retail websites and catalog
companies.  These factors could adversely affect the financial condition of
our retail tenants and the willingness of retailers to lease space in our
shopping centers.  We face risks associated with our tenants being
designated “Prohibited Persons” by the Office of Foreign Assets Control.  Pursuant to Executive Order 13224 and other laws,
the Office of Foreign Assets Control of the United States Department of the
Treasury (“OFAC”) maintains a list of persons designated as terrorists or who
are otherwise blocked or banned (“Prohibited Persons”) from conducting business
or engaging in transactions in the United States.  Our leases, loans and
other agreements may require us to comply with OFAC requirements.  If a
tenant or other party with whom we conduct business is placed on the OFAC list
we may be required to terminate the lease or other agreement.  Any such
termination could result in a loss of revenue or otherwise negatively affect our
financial results and cash flows.   10


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WE MAY ACQUIRE OR SELL ASSETS OR DEVELOP
PROPERTIES.  OUR FAILURE OR INABILITY TO CONSUMMATE THESE TRANSACTIONS OR
MANAGE THESE TRANSACTIONS COULD ADVERSELY AFFECT OUR OPERATIONS AND FINANCIAL
RESULTS. We may acquire or develop properties and
this may create risks. Although our
stated business strategy is not to engage in acquisitions, we may acquire or
develop properties when we believe that an acquisition or development project is
otherwise consistent with our business strategy.  We may not, however,
succeed in consummating desired acquisitions or in completing developments on
time or within budget.  In addition, we may face competition in pursuing
acquisition or development opportunities that could increase our costs. 
When we do pursue a project or acquisition, we may not succeed in leasing newly
developed or acquired properties at rents sufficient to cover costs of
acquisition or development and operations.  Difficulties in integrating
acquisitions may prove costly or time-consuming and could divert management’s
attention.  Acquisitions or developments in new markets or types of
properties where we do not have the same level of market knowledge may result in
weaker than anticipated performance.  We may abandon acquisition or
development opportunities that we have begun pursuing and consequently fail to
recover expenses already incurred and have devoted management time to a matter
not consummated.  It may be difficult to buy and sell real
estate quickly, which may limit our flexibility. Real estate
investments are relatively difficult to buy and sell quickly. 
Consequently, we may have limited ability to vary our portfolio promptly in
response to changes in economic or other conditions.  Moreover, our ability
to buy, sell, or finance real estate assets may be adversely affected during
periods of uncertainty or unfavorable conditions in the credit markets as we, or
potential buyers of our assets, may experience difficulty in obtaining
financing.   OUR ORGANIZATIONAL AND FINANCIAL
STRUCTURE GIVES RISE TO OPERATIONAL AND FINANCIAL RISKS. We depend on dividends and distributions
from our direct and indirect subsidiaries.  The creditors of these
subsidiaries are entitled to amounts payable to them by the subsidiaries before
the subsidiaries may pay any dividends or distributions to
us. Substantially
all of our properties and assets are held through subsidiaries.  We depend
on cash distributions and dividends from our subsidiaries for substantially all
of our cash flow.  The creditors of each of our direct and indirect
subsidiaries are entitled to payment of that subsidiary’s obligations to them
when due and payable before that subsidiary may make distributions or dividends
to us.  Thus, our ability to pay dividends, if any, to our security holders
depends on our subsidiaries’ ability to first satisfy their obligations to their
creditors and our ability to satisfy our obligations, if any, to our
creditors.  In addition, our
participation in any distribution of the assets of any of our direct or indirect
subsidiaries upon the liquidation, reorganization or insolvency of the
subsidiary, is only after the claims of the creditors, including trade
creditors, and preferred security holders, if any, of the applicable direct or
indirect subsidiaries are satisfied.  Our existing financing documents contain
covenants and restrictions that may restrict our operational and financial
flexibility. At December 31,
2010, substantially all of the individual properties we own were encumbered by
mortgages.  These mortgages contain covenants that limit our ability to
incur additional indebtedness on these properties, provide for lender approval
of tenants’ leases in certain circumstances, and provide for yield maintenance
or defeasance premiums to prepay them.  These mortgages may significantly
restrict our operational and financial flexibility.  In addition, if we
were to fail to perform our obligations under existing indebtedness or become
insolvent or were liquidated, secured creditors would be entitled to payment in
full from the proceeds of the sale of the pledged assets prior to any proceeds
being paid to other creditors or to any holders of our securities.  In such
an event, it is possible that we would have insufficient assets remaining to
make payments to other creditors or to any holders of our securities.  11


---



We have indebtedness, and this
indebtedness and the cost to service it, may increase and debt refinancing may
not be available on acceptable terms. As of December
31, 2010, total debt outstanding was $1,246,411,000.  Our ratio of total
debt to total enterprise value was 42.2% at December 31, 2010.  “Enterprise
value” means the market equity value of our common stock, plus debt, less cash
and cash equivalents at such date.  In addition, we have significant debt
service obligations.  For the year ended December 31, 2010, our scheduled
cash payments for principal and interest were $92,770,000.  In the future,
we may incur additional debt, and thus increase the ratio of total debt to total
enterprise value.  If our level of indebtedness increases, there may be an
increased risk of default which could adversely affect our financial condition
and results of operations.  In addition, in a rising interest rate
environment, the cost of refinancing our existing debt and any new debt or
market rate security or instrument may increase.Continued uncertainty in the equity and credit
markets may negatively impact our ability to obtain financing on reasonable
terms or at all, which may negatively affect our ability to refinance our
debt.  We may issue stock appreciations rights
and other forms of stock-based compensation, and the cash required to settle
these awards may impact our liquidity. In the past, we
have issued stock appreciation rights (“SARs”) and other forms of stock-based
compensation.  As of December 31, 2010, no SARs or other forms of
stock-based compensation were outstanding.  We may in the future issue SARs
and other forms of stock-based compensation as a form of executive compensation,
and the cash required to settle these awards may impact our
liquidity.  We might fail to qualify or remain
qualified as a REIT, and may be required to pay income taxes at corporate
rates. Although we
believe that we will remain organized and will continue to operate so as to
qualify as a REIT for federal income tax purposes, we might fail to remain
qualified.  Our qualification as a REIT for federal income tax purposes is
governed by highly technical and complex provisions of the Internal Revenue Code
(the “Code”) for which there are only limited judicial or administrative
interpretations.  Our qualification as a REIT also depends on various facts
and circumstances that are not entirely within our control.  In addition,
legislation, new regulations, administrative interpretations or court decisions
might significantly change the tax laws with respect to the requirements for
qualification as a REIT or the federal income tax consequences of qualifying as
a REIT.  If, with respect to any taxable year, we fail to
maintain our qualification as a REIT and do not qualify under statutory relief
provisions, we could not deduct distributions to stockholders in computing our
taxable income and would have to pay federal income tax on our taxable income at
regular corporate rates. The federal income tax payable would include any
applicable alternative minimum tax. If we had to pay federal income tax, the
amount of money available to distribute to stockholders and pay our indebtedness
would be reduced for the year or years involved, and we would no longer be
required to make distributions to stockholders. In addition, we would also be
disqualified from treatment as a REIT for the four taxable years following the
year during which qualification was lost, unless we were entitled to relief
under the relevant statutory provisions. Although we currently intend to operate
in a manner designed to allow us to qualify as a REIT, future economic, market,
legal, tax or other considerations may cause us to revoke the REIT election or
fail to qualify as a REIT.  We face possible adverse changes in tax
laws, which may result in an increase in our tax liability. From time to
time changes in state and local tax laws or regulations are enacted, which may
result in an increase in our tax liability.  The shortfall in tax revenues
for states and municipalities in recent years may lead to an increase in the
frequency and size of such changes.  If such changes occur, we may be
required to pay additional taxes on our assets or income.  These increased
tax costs could adversely affect our financial condition and results of
operations and the amount of cash available for payment of dividends.  Loss of our key personnel could harm our
operations and adversely affect the value of our common
stock. We are dependent
on the efforts of Steven Roth, our Chief Executive Officer, and Michael D.
Fascitelli, our President. Although we believe that we could find replacements
for these key personnel, the loss of their services could harm our operations
and adversely affect the value of our common stock.   12


---



ALEXANDER’S CHARTER DOCUMENTS AND
APPLICABLE LAW MAY HINDER ANY ATTEMPT TO ACQUIRE US. Provisions in
Alexander’s certificate of incorporation and by laws, as well as provisions of
the Code and Delaware corporate law, may delay or prevent a change in control of
the Company or a tender offer, even if such action might be beneficial to
stockholders, and limit the stockholders’ opportunity to receive a potential
premium for their shares of common stock over then prevailing market
prices.  Primarily to
facilitate maintenance of its qualification as a REIT, Alexander’s certificate
of incorporation generally prohibits ownership, directly, indirectly or
beneficially, by any single stockholder of more than 9.9% of the outstanding
shares of preferred stock of any class or 4.9% of outstanding common stock of
any class.  The Board of Directors may waive or modify these ownership
limits with respect to one or more persons if it is satisfied that ownership in
excess of these limits will not jeopardize Alexander’s status as a REIT for
federal income tax purposes.  In addition, the Board of Directors has,
subject to certain conditions and limitations, exempted Vornado and certain of
its affiliates from these ownership limitations.  Stock owned in violation
of these ownership limits will be subject to the loss of rights and other
restrictions.  These ownership limits may have the effect of inhibiting or
impeding a change in control.  Alexander’s
Board of Directors is divided into three classes of directors.  Directors
of each class are chosen for three-year staggered terms.  Staggered terms
of directors may have the effect of delaying or preventing changes in control or
management, even though changes in management or a change in control might be in
the best interest of our stockholders.  In addition,
Alexander’s charter documents authorize the Board of Directors to:  ·cause Alexander’s to issue additional authorized
but unissued common stock or preferred stock; ·classify or reclassify, in one or more series, any
unissued preferred stock; ·set
the preferences, rights and other terms of any classified or reclassified stock
that Alexander’s issues; and ·increase, without stockholder approval, the number
of shares of beneficial interest that Alexander’s may issue.  The Board of
Directors could establish a series of preferred stock with terms that could
delay, deter or prevent a change in control of Alexander’s or other transaction
that might involve a premium price or otherwise be in the best interest of our
stockholders, although the Board of Directors does not, at present, intend to
establish a series of preferred stock of this kind.  Alexander’s charter
documents contain other provisions that may delay, deter or prevent a change in
control of the Company or other transaction that might involve a premium price
or otherwise be in the best interest of our stockholders.  In addition,
Vornado and Interstate (the three general partners of which are both trustees of
Vornado and Directors of Alexander’s) together beneficially own approximately
59.6% of our outstanding shares of common stock.  This degree of ownership
is likely to reduce the possibility of a tender offer or an attempt to change
control of the Company by a third party.  We may change our policies without
obtaining the approval of our stockholders. Our operating
and financial policies, including our policies with respect to acquisitions of
real estate or other assets, growth, operations, indebtedness, capitalization
and dividends, are exclusively determined by our Board of Directors. 
Accordingly, our stockholders do not control these policies.  13


---



OUR OWNERSHIP
STRUCTURE AND RELATED-PARTY TRANSACTIONS MAY GIVE RISE TO CONFLICTS OF
INTEREST. Steven Roth, Vornado and Interstate may
exercise substantial influence over us.  They and some of our other
directors and officers have interests or positions in other entities that may
compete with us. At December 31,
2010, Interstate and its partners owned approximately 7.0% of the common shares
of beneficial interest of Vornado and approximately 27.2% of our outstanding
common stock.  Steven Roth, David Mandelbaum and Russell B. Wight, Jr. are
the partners of Interstate.  Mr. Roth is the Chairman of our Board of
Directors and Chief Executive Officer, the Chairman of the Board of Trustees of
Vornado and the Managing General Partner of Interstate.  Mr. Wight and
Mr. Mandelbaum are both trustees of Vornado and members of our Board of
Directors.  In addition, Vornado manages and leases the real estate assets
of Interstate.  At December 31,
2010, Vornado owned 32.4% of our outstanding common stock, in addition to the
27.2% owned by Interstate and its partners.  In addition to the
relationships described in the immediately preceding paragraph, Michael D.
Fascitelli, President and Chief Executive Officer of Vornado, is our President
and a member of our Board of Directors. Dr. Richard West is a trustee of Vornado
and a member of our Board of Directors.  Joseph Macnow, our Executive Vice
President and Chief Financial Officer, holds the same position with
Vornado.  Because of their
overlapping interests, Vornado, Mr. Roth, Interstate and the other
individuals noted in the preceding paragraphs may have substantial influence
over Alexander’s, and on the outcome of any matters submitted to Alexander’s
stockholders for approval.  In addition, certain decisions concerning our
operations or financial structure may present conflicts of interest among
Vornado, Messrs. Roth, Mandelbaum and Wight and Interstate and other
security holders.  Vornado, Mr. Roth and Interstate may, in the
future, engage in a wide variety of activities in the real estate business which
may result in conflicts of interest with respect to matters affecting us, such
as, which of these entities or persons, if any, may take advantage of potential
business opportunities, the business focus of these entities, the types of
properties and geographic locations in which these entities make investments,
potential competition between business activities conducted, or sought to be
conducted, by us, competition for properties and tenants, possible corporate
transactions such as acquisitions, and other strategic decisions affecting the
future of these entities.  There may be conflicts of interest
between Vornado, its affiliates and us. Vornado manages,
develops and leases our properties under agreements that have one-year terms
expiring in March of each year, which are automatically renewable.  Because
we share common senior management with Vornado and because five of the trustees
of Vornado also constitute the majority of our directors, the terms of the
foregoing agreements and any future agreements may not be comparable to those we
could have negotiated with an unaffiliated third party.  For a
description of Interstate’s ownership of Vornado and Alexander’s, see “Steven
Roth, Vornado and Interstate may exercise substantial influence over us. 
They and some of our other directors and officers have interests or positions in
other entities that may compete with us.” above.   14


---



THE NUMBER OF SHARES OF ALEXANDER’S
COMMON STOCK AND THE MARKET FOR THOSE SHARES GIVE RISE TO VARIOUS
RISKS. The price of our common shares has been
volatile and may fluctuate. The trading price of our common shares
has been volatile and may continue to fluctuate widely as a result of a number
of factors, many of which are outside of our control.  In addition, the
stock market is subject to fluctuations in the share prices and trading volumes
that affect the market prices of the shares of many companies.  These broad
market fluctuations have in the past and may in the future adversely affect the
market price of our common shares.  Among the factors that could affect the
price of our common shares are: ·our financial condition and
performance; ·the financial condition of our tenants,
including the extent of tenant bankruptcies or defaults; ·actual or anticipated quarterly
fluctuations in our operating results and financial condition; ·the reputation of REITs and real estate
investments generally and the attractiveness of REIT equity securities in
comparison to other equity securities, including securities issued by other real
estate companies, and fixed income securities; ·uncertainly and volatility in the equity
and credit markets; ·changes in revenue or earnings estimates
or publication of research reports and recommendations by financial analysts or
actions taken by rating agencies with respect to our securities or those of
other real estate investment trusts; ·failure to meet analysts’ revenue or
earnings estimates; ·speculation in the press or investment
community; ·strategic actions by us or our
competitors, such as acquisitions or restructurings; ·the extent of institutional investor
interest in us; ·the extent of short-selling of our
common shares and the shares of our competitors; ·fluctuations in the stock price and
operating results of our competitors; ·general financial and economic market
conditions and, in particular, developments related to market conditions for
real estate investment trusts and other real estate related companies; ·domestic and international economic
factors unrelated to our performance; and ·all other risk factors addressed
elsewhere in this document. A significant decline in our stock price
could result in substantial losses for stockholders. Alexander’s has additional shares of its
common stock available for future issuance, which could decrease the market
price of the common stock currently outstanding. The interest of
our current stockholders could be diluted if we issue additional equity
securities.  As of December 31, 2010, we had authorized but unissued
4,826,550 shares of common stock, par value of $1.00 per share and 3,000,000
shares of preferred stock, par value $1.00 per share.  In addition, 895,000
shares are available for future grant under the terms of our 2006 Omnibus Stock
Plan.  These awards may be granted in the form of options, restricted
stock, SARs or other equity-based interests, and if granted, would reduce that
number of shares available for future grants, provided however that an award
that may be settled only in cash, would not reduce the number of shares
available under the plan.  We cannot predict the impact that future
issuances of common or preferred stock or any exercise of outstanding options or
grants of additional equity-based interests would have on the market price of
our common stock.    ITEM 1B.     UNRESOLVED STAFF
COMMENTS There are no
unresolved comments from the staff of the Securities and Exchange Commission as
of the date of this Annual Report on Form 10-K. 15


---



ITEM 2.    
properties The following table shows the location,
ownership, approximate size (excluding parking garages) and occupancy of each of
our properties as of December 31, 2010.  Average
    
    
    
    LeaseAnnualized
    
    
    
    Expiration/Land
    
    Building
    
    Occupancy
    
    Rent
      Per
    
    
    
    OptionProperty
    
    Acreage
    
    Square
      Feet
    
    Rate
    
    Square
      Foot
    
    Tenants
    
    Expiration(s)Operating
      Properties:731 Lexington AvenueNew York, New YorkOffice
    
    
    
    697,000
    
    
    
    
    
    
    
    Bloomberg L.P.
    
    2029/2039188,000
    
    
    
    
    
    
    
    Bloomberg L.P.
    
    2015/2020885,000
    
    
    100%
    
    $
    82.14Retail
    
    
    
    83,000
    
    
    
    
    
    
    
    The Home
      Depot
    
    2025/203534,000
    
    
    
    
    
    
    
    The
      Container Store
    
    202127,000
    
    
    
    
    
    
    
    Hennes
      & Mauritz
    
    201930,000
    
    
    
    
    
    
    
    Various
    
    Various174,000
    
    
    100%
    
    
    161.231.9
    
    1,059,000Kings Plaza Regional Shopping
      CenterBrooklyn, New York
    
    
    
    415,000
    
    
    94%
    
    
    61.57
    
    106 Mall
      tenants
    
    VariousMacy’s
      (owned by339,000
    
    
    
    
    
    
    
    Macy’s,
      Inc.)
    
    N/A289,000
    
    
    
    
    
    
    
    Sears
    
    2023/2033114,000
    
    
    
    
    
    
    
    Lowe’s
      (ground lessee)
    
    2028/205353,000
    
    
    
    
    
    
    
    Best
      Buy
    
    203224.3
    
    1,210,000Rego Park IQueens, New York
    
    
    
    195,000
    
    
    
    
    
    
    
    Sears
    
    2021Burlington Coat Factory50,000
    
    
    
    
    
    
    
    (lease
      not commenced)
    
    2022/202746,000
    
    
    
    
    
    
    
    Bed Bath
      & Beyond
    
    2013/202136,000
    
    
    
    
    
    
    
    Marshalls
    
    202116,000
    
    
    
    
    
    
    
    Old
      Navy
    
    20214.8
    
    343,000
    
    
    85%
    
    
    32.28Rego Park IIQueens, New YorkIn Service
    
    
    
    145,000
    
    
    
    
    
    
    
    Costco
    
    2034/2059135,000
    
    
    
    
    
    
    
    Century
      21
    
    2030/2050133,000
    
    
    
    
    
    
    
    Kohl’s
    
    2030/205047,000
    
    
    
    
    
    
    
    Toys
      "R"Us/Babies "R" Us
    
    2021/203690,000
    
    
    
    
    
    
    
    Various
    
    Various550,000
    
    
    100%
    
    
    38.01Under Development
    
    
    
    65,0006.6
    
    615,000Routes 4 and 17Paramus, New Jersey
    
    30.3
    
    -
    
    
    100%
    
    
    -
    
    IKEA
      (ground lessee)
    
    2041Roosevelt Avenue and Main
StreetQueens, New York (ground leasedthrough January 2037)
    
    1
    
    167,000
    
    
    100%
    
    
    14.99
    
    New
      World Mall LLC
    
    2027/2037Property to be
      Developed:Rego Park III, adjacent to Rego Park
      IIQueens, New York
    
    3.4
    
    -
    
    
    -
    
    
    -
    
    -
    
    -3,394,000
 16


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ITEM 2.        PROPERTIES –continued Operating Properties  731 Lexington Avenue The 731 Lexington Avenue property, a 1,307,000 square foot multi-use building, comprises the entire square block bounded by Lexington Avenue, East 59th Street, Third Avenue and East 58th Street in Manhattan, New York, and is situated in the heart of one of Manhattan’s busiest business and shopping districts, with convenient access to several subway and bus lines. The property is located across the street from Bloomingdale’s flagship store and only a few blocks away from Fifth Avenue and 57th Street.  The building contains 885,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold.  Bloomberg L.P. occupies all of the office space.  The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants.  The office and retail spaces are encumbered by first mortgage loans with balances of $351,751,000 and $320,000,000, respectively, as of December 31, 2010.  These loans mature in February 2014 and July 2015 and bear interest at 5.33% and 4.93%, respectively.   Kings Plaza Regional Shopping Center The Kings Plaza Regional Shopping Center contains 1,210,000 square feet and is located on Flatbush Avenue in Brooklyn, New York.  The center is anchored by a 339,000 square foot Macy’s (owned by Macy’s, Inc.), a 289,000 square foot Sears department store and a 114,000 square foot Lowe’s on land leased from us.  Among the features are a marina, a parking deck (3,739 spaces) and an energy plant that generates electricity for the center.  The following table sets forth lease expirations for the Mall tenants in the center as of December 31, 2010, for each of the next ten years, assuming none of the tenants exercise their renewal options.  Annual Rent of

   

   

   

   

   Percent ofNumber of

   

   Square Feet of

   

   Expiring Leases

   

   Percent of

   

   2010  GrossExpiring

   

   Expiring

   

   

   

   

   Per

   

   Total Leased

   

   AnnualYear

   

   Leases

   

   Leases

   

   Total

   

   Square Foot

   

   Square Feet

   

   RentalsMonth to month

   

   6

   

   12,067

   

   

   $

   1,076,292

   

   $

   89.19

   

   

   2.9%

   

   

   4.2%2011

   

   13

   

   42,600

   

   

   

   2,225,484

   

   

   52.24

   

   

   10.1%

   

   

   8.6%2012

   

   14

   

   35,652

   

   

   

   2,489,844

   

   

   69.84

   

   

   8.5%

   

   

   9.6%2013

   

   10

   

   37,965

   

   

   

   2,495,220

   

   

   65.72

   

   

   9.0%

   

   

   9.6%2014

   

   11

   

   44,256

   

   

   

   3,153,720

   

   

   71.26

   

   

   10.5%

   

   

   12.2%2015

   

   6

   

   8,656

   

   

   

   635,652

   

   

   73.43

   

   

   2.1%

   

   

   2.5%2016

   

   7

   

   25,275

   

   

   

   1,633,548

   

   

   64.63

   

   

   6.0%

   

   

   6.3%2017

   

   13

   

   46,051

   

   

   

   2,979,468

   

   

   64.70

   

   

   11.0%

   

   

   11.5%2018

   

   8

   

   27,622

   

   

   

   1,893,744

   

   

   68.56

   

   

   6.6%

   

   

   7.3%2019

   

   10

   

   26,749

   

   

   

   1,919,256

   

   

   71.75

   

   

   6.4%

   

   

   7.4%2020

   

   6

   

   59,494

   

   

   

   2,791,656

   

   

   46.92

   

   

   14.1%

   

   

   10.8%
 17


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ITEM 2.        PROPERTIES –continued Mall sales per square foot were $618 and $628 for the years ended December 31, 2010 and 2009, respectively.  The following table sets forth the occupancy rate and the average annual rent per square foot for the Mall stores for each of the past five years.  AverageAnnual Base RentAs of December 31,

   

   Occupancy Rate

   

   Per Square Foot2010

   

   94%

   

   

   $

   61.572009

   

   92%

   

   

   

   59.322008

   

   94%

   

   

   

   56.862007

   

   94%

   

   

   

   55.952006

   

   94%

   

   

   

   52.78
  The center is encumbered by a first mortgage loan with a balance of $151,214,000 at December 31, 2010.  The loan matures in June 2011 and bears interest at 7.46%.   Rego Park I The Rego Park I Shopping Center contains 343,000 square feet and is located on Queens Boulevard and 63rd Road in Queens, New York.  The center is anchored by a 195,000 square foot Sears department store, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls.  In January 2011, we leased 50,000 square feet to Burlington Coat Factory.  The center contains a parking deck (1,265 spaces) that provides for paid parking.  The center is encumbered by a 100% cash collateralized loan with a balance of $78,246,000 at December 31, 2010.  The loan matures in March 2012, bears interest at 0.75% and is prepayable at any time without penalty.   Rego Park II The Rego Park II property, a newly developed 615,000 square foot shopping center, is located adjacent to our Rego Park I property in Queens, New York.  As of December 31, 2010, 89% of the center is in service and such portion is 100% leased, primarily to three anchor tenants: a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.  In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado.  The center contains a parking deck (1,315 spaces) that provides paid parking.  In December 2010, we repaid a portion of the construction loan and extended its maturity date to December 2011.  The loan has a balance of $277,200,000 at December 31, 2010 and bears interest at LIBOR plus 1.20% (1.46% at December 31, 2010.)   Paramus We own 30.3 acres of land located at the intersection of Routes 4 and 17 in Paramus, New Jersey.  The property is located directly across from the Garden State Plaza regional shopping mall and is within two miles of three other regional shopping malls and ten miles of New York City.  This land is leased to IKEA Property, Inc.  The lease has a 40-year term expiring in 2041, with a purchase option in 2021 for $75,000,000.  We have a $68,000,000 interest only, non-recourse mortgage loan on the property from a third-party lender.  The fixed interest rate on the debt is 5.92% with interest payable monthly until maturity in October 2011.  The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan.  If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a net gain on the sale of the land of approximately $62,000,000.  If the purchase option is not exercised, the triple-net rent for the last 20 years must include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term. 18


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ITEM 2.        PROPERTIES –continued Flushing The Flushing property is located at Roosevelt Avenue and Main Street in the downtown, commercial section of Flushing, Queens, New York.  Roosevelt Avenue and Main Street are active shopping districts and there are many national retailers located in the area.  A subway entrance is located directly in front of the property with bus service across the street.  The property comprises a four-floor building containing 167,000 square feet and a parking garage, which is sub-leased to New World Mall, LLC for the remainder of our ground lease term.  In 2003, we recognized $1,289,000 of income representing a non-refundable purchasedeposit of $1,875,000, net of $586,000 of costs associated with the transaction, from a party that agreed to purchase this property; as such party had not met its obligations under a May 30, 2002 purchase contract.  On September 10, 2002, November 7, 2002, and July 8, 2004, we received letters from the party demanding return of the deposit.  On December 28, 2005, the party filed a complaint against us in the New York State Court alleging that we failed to honor the terms and conditions of the agreement.  The complaint sought specific performance and, if specific performance was denied, it sought a return of the deposit plus interest and $50,000 in costs.  In August 2010, the New York State Court entered judgment denying specific performance and ordered us to return the deposit together with accrued interest and fees.  We have filed a notice of appeal and this judgment is stayed pending the appeal.  As a result of the judgment, included as a component of “general and administrative” expenses on our consolidated statement of income for the year ended December 31, 2010 is a $3,135,000 litigation loss accrual, representing the amount of the deposit, accrued interest and fees.   Property to be Developed Rego Park III We own approximately 3.4 acres of land adjacent to our Rego Park II property in Queens, New York, which comprises a one‐quarter square block and is located at the intersection of Junction Boulevard and the Horace Harding Service Road.  The land is currently being used for public paid parking and while the current plans for the development of this parcel are preliminary, it may include up to 80,000 square feet of retail space.  There can be no assurance that this project will commence, be completed, completed on time or completed for the budgeted amount.   Insurance  We maintain general liability insurance with limits of $300,000,000 per occurrence and all-risk property and rental value insurance coverage with limits of $1.7 billion per occurrence, including coverage for terrorist acts, with sub-limits for certain perils such as floods and earthquakes on each of our properties.  There can be no assurance that we will be able to maintain similar levels of insurance coverage in the future in amounts and on terms that are commercially reasonable.  We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.  Our mortgage loans are non-recourse to us, except for $75,000,000 of the $320,000,000 mortgage on our 731 Lexington Avenue property, in the event of a substantial casualty, as defined.  Our mortgage loans contain customary covenants requiring us to maintain insurance.  If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties.  19


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ITEM 3.       
LEGAL PROCEEDINGS We are from time
to time involved in legal actions arising in the ordinary course of
business.  In our opinion, after consultation with our legal counsel, the
outcome of such matters will not have a material effect on our financial
condition, results of operations or cash flows.  For a discussion
of the litigation concerning our Flushing, New York, property, see “Item 2.
Properties – Operating Properties – Flushing.”    20


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PART II  ITEM 5.      MARKET FOR
REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
EQUITY SECURITIES  Our common stock
is listed on the New York Stock Exchange under the symbol “ALX.”  Set forth
below are the high and low closing prices for the shares of our common stock for
each full quarterly period within the two most recent years and any dividends
paid per share during such periods.  Year Ended
      December 31,2010
    
    2009Quarter
    
    High
    
    Low
    
    Dividends
    
    High
    
    Low
    
    DividendsFirst
    
    $
    312.28
    
    $
    267.94
    
    $
    -
    
    $
    266.93
    
    $
    125.88
    
    $
    -Second
    
    
    340.00
    
    
    282.03
    
    
    2.50
    
    
    303.14
    
    
    160.46
    
    
    -Third
    
    
    347.83
    
    
    297.16
    
    
    2.50
    
    
    325.22
    
    
    250.00
    
    
    -Fourth
    
    
    421.82
    
    
    314.45
    
    
    2.50
    
    
    314.05
    
    
    260.15
    
    
    -
  In order to
maintain our qualification as a REIT under the Internal Revenue Code, we must
distribute at least 90% of our taxable income to stockholders. Because the
balance of our net operating loss carryover (“NOL”) has exceeded taxable income
in the past, there was no distribution requirement and accordingly no dividends
were paid. In 2010, our estimated taxable income exceeded the remaining balance
of our NOL and we began paying a regular quarterly dividend of $2.50 per share
(estimated quarterly taxable income) beginning in the second quarter of
2010.  On January 12, 2011, we increased our regular quarterly dividend to
$3.00 per share (an indicated annual rate of $12.00 per share).  As of December
31, 2010, there were approximately 376 holders of record of our common
stock.   Recent Sales of
Unregistered Securities  During
2010,we did not sell any unregistered
securities.    Recent Purchases
of Equity Securities  During 2010, we
did not repurchase any of our equity securities. 21


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Performance
Graph  The following
graph is a comparison of the five-year cumulative return of our common stock,
the Standard & Poor’s 500 Index (the “S&P 500 Index”) and the National
Association of Real Estate Investment Trusts’ (“NAREIT”) All Equity Index
(excluding health care real estate investment trusts), a peer group index. 
The graph assumes that $100 was invested on December 31, 2005 in our common
stock, the S&P 500 Index and the NAREIT All Equity Index and that all
dividends were reinvested without the payment of any commissions.  There
can be no assurance that the performance of our stock will continue in line with
the same or similar trends depicted in the graph below.      2005
    2006
    2007
    2008
    2009
    2010Alexander’s
    100
    171
    144
    105
    124
    172S&P 500 Index
    100
    116
    122
    77
    97
    112The NAREIT All Equity Index
    100
    135
    114
    71
    91
    116
 22


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ITEM 6.     selected financial
data The following
table sets forth selected financial and operating data.  This data should
be read in conjunction with the consolidated financial statements and notes
thereto and “Item 7.  Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in this Annual Report on Form 10-K. 
This data may not be comparable to, or indicative of, future operating
results.  Year Ended
      December 31,(Amounts in thousands, except per share
      amounts)
    2010
    
    2009
    
    2008
    
    2007
    
    2006Total revenues
    $
    241,350
    
    $
    223,529
    
    $
    211,097
    
    $
    207,980
    
    $
    198,772Income (loss) before net gain on sale of
      condominiums(1)
    $
    67,445
    
    $
    132,941
    
    $
    76,295
    
    $
    115,509
    
    $
    (89,334)Net gain on sale of condominiums after income
      taxes
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    13,256Net income (loss)
    
    67,445
    
    
    132,941
    
    
    76,295
    
    
    115,509
    
    
    (76,078)Net (income) loss attributable to the
      noncontrollinginterest
    
    (1,016)
    
    
    (751)
    
    
    (7)
    
    
    (1,168)
    
    
    1,095Net income (loss) attributable to Alexander’s
    $
    66,429
    
    $
    132,190
    
    $
    76,288
    
    $
    114,341
    
    $
    (74,983)Income (loss) per common
      share:Income (loss) per common share – basic
    $
    13.01
    
    $
    25.90
    
    $
    15.05
    
    $
    22.68
    
    $
    (14.92)Income (loss) per common share – diluted
    $
    13.01
    
    $
    25.89
    
    $
    14.96
    
    $
    22.44
    
    $
    (14.92)Balance sheet data:Total assets
    $
    1,679,300
    
    $
    1,703,769
    
    $
    1,603,568
    
    $
    1,532,410
    
    $
    1,447,242Real estate, at cost
    
    1,050,291
    
    
    1,025,234
    
    
    967,975
    
    
    835,081
    
    
    692,388Accumulated depreciation and
      amortization
    
    157,232
    
    
    132,386
    
    
    114,235
    
    
    96,183
    
    
    80,779Debt
    
    1,246,411
    
    
    1,278,964
    
    
    1,221,255
    
    
    1,110,197
    
    
    1,068,498Total equity
    
    343,776
    
    
    314,626
    
    
    180,751
    
    
    137,426
    
    
    28,337__________________________(1)
    Includes reversals of stock appreciation
      rights ("SARs") compensation expense of $34,275, $20,254 and $43,536 in
      2009, 2008 and 2007, respectively, and an accrual for SARs compensation
      expense of $148,613 in 2006.
 23


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ITEM 7.     management’s discussion and analysis of financial conditions and results of operations Overview Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping properties.  All references to “we,” “us,” “our,” “Company,” and “Alexander’s”, refer to Alexander’s, Inc. and its consolidated subsidiaries.  We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO).  We have seven properties in the greater New York City metropolitan area.  We compete with a large number of property owners and developers.  Our success depends upon, among other factors, trends of national and local economies, the financial condition and operating results of current and prospective tenants, the availability and cost of capital, interest rates, construction and renovation costs, taxes, governmental regulations and legislation, population trends, zoning laws, and our ability to lease, sublease or sell our properties, at profitable levels.  Our success is also subject to our ability to refinance existing debt on acceptable terms as it comes due.  Substantially all businesses, including ours, were negatively affected by the 2008/2009 economic recession and illiquidity and volatility in the capital and financial markets.  Although there are signs of an economic recovery and greater stability in the capital and financial markets, it is not possible for us to predict whether these trends will continue in the future or quantify the impact of these or any other trends on our financial results.  In January 2011, we leased 50,000 square feet at our Rego Park I Shopping Center to Burlington Coat Factory.  Year Ended December 31, 2010 Financial Results Summary  Net income attributable to common stockholders for the year ended December 31, 2010 was $66,429,000, or $13.01 per diluted share, compared to $132,190,000, or $25.89 per diluted share, for the year ended December 31, 2009.  Funds from operations attributable to common stockholders (“FFO”) for the year ended December 31, 2010 was $97,271,000, or $19.05 per diluted share, compared to $158,960,000, or $31.14 per diluted share, for the year ended December 31, 2009. Net income attributable to common stockholders and FFO for the years ended December 31, 2010 and 2009 include income of $5,113,000 and $42,472,000, respectively, or $1.00 and $8.32 per diluted share, respectively, from the reversal of a portion of the liability for income taxes due to the expiration of the applicable statute of limitations.  The year ended December 31, 2010 also includes $3,135,000, or $0.61 per diluted share, for a litigation loss accrual related to our Flushing property and the year ended December 31, 2009 includes $34,275,000, or $6.71 per diluted share, for the reversal of a portion of previously recognized stock appreciation rights compensation expense.  Quarter Ended December 31, 2010 Financial Results Summary  Net income attributable to common stockholders for the quarter ended December 31, 2010 was $17,891,000, or $3.50 per diluted share, compared to $15,102,000, or $2.96 per diluted share, for the quarter ended December 31, 2009.  FFO for the quarter ended December 31, 2010 was $25,982,000, or $5.09 per diluted share, compared to $22,372,000, or $4.38 per diluted share, for the quarter ended December 31, 2009.   Significant Tenants Bloomberg L.P. (“Bloomberg”) accounted for $83,137,000, $77,988,000, and $66,333,000, or 34%, 35% and 31%, of our consolidated revenues in the years ended December 31, 2010, 2009 and 2008, respectively.  No other tenant accounted for more than 10% of our consolidated revenues in any of the last three years.  If we were to lose Bloomberg as a tenant, or if Bloomberg were to fail or become unable to perform its obligations under its lease, it would adversely affect our results of operations and financial condition.  We receive and evaluate certain confidential financial information and metrics from Bloomberg on a semi-annual basis.  In addition, we access and evaluate financial information regarding Bloomberg from private sources, as well as publicly available data. 24


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Recently Issued Accounting Literature On January 21, 2010, the Financial Accounting Standards Board (“FASB”) issued an update to Accounting Standards Codification (“ASC”) 820,Fair Value Measurements and Disclosures, adding new requirements for disclosures about transfers into and out of Levels 1 and 2 fair value measurements and additional disclosures about the activity within Level 3 fair value measurements.  The adoption of this guidance on January 1, 2010 did not have any effect on our consolidated financial statements.  On June 12, 2009, the FASB issued an update to ASC 810,Consolidation, which modifies the existing quantitative guidance used in determining the primary beneficiary of a variable interest entity (“VIE”) by requiring entities to qualitatively assess whether an enterprise is a primary beneficiary, based on whether the entity has (i) power over the significant activities of the VIE, and (ii) an obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE.  The adoption of this guidance on January 1, 2010 did not have any effect on our consolidated financial statements.   Critical Accounting Policies and Estimates Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires us 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.  Set forth below is a summary of our accounting policies that we believe are critical to the preparation of our consolidated financial statements.  This summary should be read in conjunction with a more complete discussion of our accounting policies included in Note 2 to the consolidated financial statements in this Annual Report on Form 10-K.  Real Estate  Real estate is carried at cost, net of accumulated depreciation and amortization.  As of December 31, 2010 and 2009, the carrying amount of our real estate, net of accumulated depreciation, was $893,059,000 and $892,848,000, respectively.  Maintenance and repairs are charged to operations as incurred.  Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. If we do not allocate these costs appropriately or incorrectly estimate the useful lives of our real estate, depreciation expense may be misstated.  As real estate is undergoing development activities, all property operating expenses, including interest expense, are capitalized to the cost of the real property to the extent that we believe such costs are recoverable through the value of the property.  Our properties and related intangible assets, including properties to be developed in the future, currently under development and those that are substantially completed and are to be held and used, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared.  For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset.  An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value.  If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements.  Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results.  Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.  25


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Critical Accounting Policies and Estimates - Continued  Allowance for Doubtful Accounts  We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,047,000 and $1,736,000 as of December 31, 2010 and 2009, respectively) for estimated losses resulting from the inability of tenants to make required payments under the lease agreements.  We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.  These estimates may differ from actual results, which could be material to our consolidated financial statements.  Revenue Recognition We have the following revenue sources and revenue recognition policies:  ·Base Rent (revenue arising from tenant leases) – These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases.  We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use.  In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.  ·Percentage Rent (revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds) – These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).  ·Expense Reimbursements (revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties) – This revenue is accrued in the same periods as the expenses are incurred.  ·Parking income (revenue arising from the rental of parking space at our properties) – This income is recognized as cash is received.  Before we recognize revenue, we assess its collectability.  If our assessment of the collectability of revenue changes, the impact on our consolidated financial statements could be material.  Income Taxes We operate in a manner intended to enable us to continue to qualify as a Real Estate Investment Trust (“REIT”) under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”).  In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year.  To the extent we do notdistribute all of ourtaxable income, we would be subject to corportate levelincome taxes.  Because the balance of our net operating loss carryover (“NOL”) has exceeded taxable income in the past, there was no distribution requirement. In 2010, our estimated taxable income exceeded the remaining balance of our NOL and we began paying a regular quarterly dividend which approximated our taxable income.  Under ASC 740,Income Taxes,deferred income taxes would be recognized for temporary differences between the financial reporting basis of assets and liabilities and their respective tax basis and for operating loss and tax credit carry-forwards based on enacted tax rates expected to be in effect when such amounts are realized or settled.  However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of available evidence, including tax planning strategies and other factors.  As of December 31, 2010 and 2009, there were no deferred tax assets or liabilities on our consolidated balance sheets. 26


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Results of Operations – Year Ended December 31,
2010 Compared to December 31, 2009  Property Rentals Property rentals
were $166,403,000 in the year ended December 31, 2010, compared to $155,275,000
in the year ended December 31, 2009, an increase of $11,128,000.  This
increase was primarily attributable to tenants at the Rego Park II property
whose space was placed into service subsequent to the second half of 2009 and
during 2010.   Expense Reimbursements Tenant expense
reimbursements were $74,947,000 in the year ended December 31, 2010, compared to
$68,254,000 in the year ended December 31, 2009, an increase of
$6,693,000.  This increase was primarily due to higher reimbursable
operating expenses and real estate taxes and services provided to tenants. 
This was primarily attributable to the Rego Park II property whose space was
placed into service subsequent to the second half of 2009 and during
2010.   Operating Expenses Operating
expenses were $78,652,000 in the year ended December 31, 2010, compared to
$73,340,000 in the year ended December 31, 2009, a increase of $5,312,000. 
This resulted from a $6,115,000 increase in reimbursable operating expenses and
real estate taxes, primarily attributable to the Rego Park II property whose
space was placed into service subsequent to the second half of 2009 and during
2010, partially offset by an $803,000 decrease in non-reimbursable operating
expenses.   Depreciation and Amortization Depreciation and
amortization was $31,343,000 in the year ended December 31, 2010, compared to
$27,284,000 in the year ended December 31, 2009, an increase of
$4,059,000.  This increase resulted primarily from depreciation on the
portion of Rego Park II placed into service subsequent to the second half of
2009 and during 2010.   General and Administrative Expenses Excluding
$3,135,000 for a litigation loss accrual related to our Flushing property in
2010, and $34,275,000 for the reversal of SARs compensation expense and
$1,407,000 for the write-off of previously capitalized costs at our Flushing
property in 2009, general and administrative expenses increased by $35,000 from
the prior year.   Interest and Other Income, net Interest and
other income, net was $851,000 in the year ended December 31, 2010, compared to
$2,847,000 in the prior year, a decrease of $1,996,000.  This decrease was
primarily due to lower average yields on investments (0.13% in the current year
as compared to 0.48% in the prior year).   Interest and Debt Expense Interest and
debt expense was $58,372,000 in the year ended December 31, 2010, compared to
$57,473,000 in the prior year, an increase of $899,000.  This increase was
primarily due to (i) $2,183,000 of lower capitalized interest as a result of
placing a portion of our Rego Park II property into service, (ii) $1,784,000 of
interest related to our income tax liability, resulting primarily from a lower
reversal of previously recognized interest expense in the current year as
compared to the prior year, partially offset by (iii) interest savings of
$2,433,000 from the partial repayment of our Kings Plaza debt in March 2010 and
(iv) $351,000 of lower interest on the leasing commissions owed to
Vornado.  27


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Results of Operations – Year Ended December 31,
2010 Compared to December 31, 2009 - continued  Net loss on Early Extinguishment of
Debt Net loss on
early extinguishment of debt was $1,238,000 in the year ended December 31, 2010,
compared to $519,000 in the prior year and resulted from the open market
purchases of our Kings Plaza debt of $27,500,000 and $11,948,000 in 2010 and
2009, respectively, for $28,738,000 and $12,467,000 in cash,
respectively.   Income Tax Benefit Income tax
benefit was $2,641,000 in the year ended December 31, 2010, compared to
$36,935,000 in the prior year, a decrease of $34,294,000.  This decrease
resulted primarily from a lower reversal of our income tax liability in the
current year as compared to the prior year.  These liabilities were
reversed as a result of the expiration of the applicable statute of
limitations.   Net Income Attributable to the Noncontrolling
Interest Net income
attributable to the noncontrolling interest was $1,016,000 in the year ended
December 31, 2010, compared to $751,000 in the prior year, and represents our
venture partner’s 75% pro rata share of net income from our consolidated
partially owned entity, the Kings Plaza energy plant joint venture. 28


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Results of Operations – Year Ended December 31,
2009 Compared to December 31, 2008  Property Rentals Property rentals
were $155,275,000 in the year ended December 31, 2009, compared to $143,004,000
in the year ended December 31, 2008, an increase of $12,271,000.  This
increase was primarily attributable to anchor tenants at the Rego Park II
property whose space was placed into service during 2009.   Expense Reimbursements Tenant expense
reimbursements were $68,254,000 in the year ended December 31, 2009, compared to
$68,093,000 in the year ended December 31, 2008, an increase of
$161,000.   Operating Expenses Operating
expenses were $73,340,000 in the year ended December 31, 2009, compared to
$77,110,000 in the year ended December 31, 2008, a decrease of $3,770,000. 
This decrease resulted primarily from a $3,707,000 write-off in 2008 of Circuit
City’s receivable arising from the straight-lining of rent in connection with
its lease termination at Rego Park I.   Depreciation and Amortization Depreciation and
amortization was $27,284,000 in the year ended December 31, 2009, compared to
$24,066,000 in the year ended December 31, 2008, an increase of
$3,218,000.  This increase resulted primarily from depreciation on the
portion of Rego Park II placed into service during 2009, partially offset by a
$1,430,000 write-off of in 2008 of Circuit City’s tenant improvements in
connection with its lease termination at Rego Park I.   General and Administrative Expenses Excluding (i)
$34,275,000 and $20,254,000 for the reversal of a portion of previously
recognized SARs compensation expense in 2009 and 2008, respectively, and (ii)
$1,407,000 for the write-off of previously capitalized costs at our Flushing
property in 2009, general and administrative expenses decreased by $1,065,000
from 2008.  This decrease resulted primarily from lower professional
fees.   Interest and Other Income, net Interest and
other income, net was $2,847,000 in the year ended December 31, 2009, compared
to $15,222,000 in the prior year, a decrease of $12,375,000.  This decrease
was primarily comprised of (i) $8,448,000 from lower average yields on
investments (0.48% in the year ended December 31, 2009 as compared to 2.29% in
the year ended December 2008), (ii) $2,164,000 from lower average cash balances
in 2009 and (iii) $1,872,000 from the net gain on the sale of real estate tax
abatement certificates in 2008.   Interest and Debt Expense Interest and
debt expense was $57,473,000 in the year ended December 31, 2009, compared to
$62,474,000 in the prior year, a decrease of $5,001,000.  This decrease was
primarily comprised of (i) a $5,165,000 reversal of a portion of the liability
for income taxes in the current year (which was previously recognized as
interest expense) due to the expiration of the applicable statute of
limitations, (ii) a $4,237,000 decrease in interest from the refinancing of the
Rego Park I mortgage loan in March 2009, (iii) a $1,021,000 decrease in interest
on the Rego Park II construction loan, primarily due to a lower average interest
rate (1.58% in the year ended December 31, 2009 as compared to 3.81% in the
prior year), (iv) a $569,000 decrease in interest on the income tax liability
due to the reversal of a portion of the liability in 2009 and (v) a $507,000
decrease in interest on the leasing commissions due to Vornado, mainly due to a
lower rate in 2009, partially offset by (vi) $7,132,000 of lower capitalized
interest as a result of placing a portion of the Rego Park II property into
service during 2009. 29


---



Results of Operations – Year Ended December 31,
2009 Compared to December 31, 2008 - continued  Net Loss on Early Extinguishment of
Debt Net loss on early extinguishment of debt
was $519,000 in the year ended December 31, 2009 and resulted from the open
market purchases of our Kings Plaza debt of $11,948,000 for $12,467,000 in
cash.  Income Tax Benefit (Expense) In the year
ended December 31, 2009, we had an income tax benefit of $36,935,000, compared
to an expense of $941,000 in the year ended December 31, 2008.  The tax
benefit in 2009 was due to the reversal of a portion of the liability for income
taxes due to the expiration of the applicable statute of limitations.  The
tax expense in 2008 relates primarily to the interest income of our taxable REIT
subsidiary which was liquidated in 2008.   Net Income Attributable to the Noncontrolling
Interest Net income
attributable to the noncontrolling interest was $751,000 in the year ended
December 31, 2009, compared to $7,000 in the year ended December 31, 2008, and
represents our venture partner’s 75% pro rata share of net income from our
consolidated partially owned entity, the Kings Plaza energy plant joint
venture. 30


---



Related Party Transactions  Vornado At December 31,
2010, Vornado owned 32.4% of our outstanding common stock.  We are managed
by, and our properties are leased and developed by, Vornado, pursuant to the
agreements described below, which expire in March of each year and are
automatically renewable.  Steven Roth is the Chairman of our Board of
Directors and Chief Executive Officer, the Managing General Partner of
Interstate Properties (“Interstate”), a New Jersey general partnership, and the
Chairman of the Board of Trustees of Vornado.  At December 31, 2010,
Mr. Roth, Interstate and its other two general partners, David Mandelbaum
and Russell B. Wight, Jr. (who are also directors of the Company and trustees of
Vornado) owned, in the aggregate, 27.2% of our outstanding common stock, in
addition to the 2.3% they indirectly own through Vornado.  Michael D.
Fascitelli, President and Chief Executive Officer of Vornado, is our President
and a member of our Board of Directors.  Joseph Macnow, our Executive Vice
President and Chief Financial Officer, holds the same position with
Vornado.  Management and Development
Agreements We pay Vornado
an annual management fee equal to the sum of (i) $3,000,000, (ii) 3% of gross
income from the Kings Plaza Regional Shopping Center, (iii) $0.50 per square
foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and
(iv) $248,000, escalating at 3% per annum, for managing the common area of 731
Lexington Avenue.  In addition,
Vornado is entitled to a development fee of 6% of development costs, as defined,
with a minimum guaranteed fee of $750,000 per annum.  Leasing Agreements Vornado also
provides us with leasing services for a fee of 3% of rent for the first ten
years of a lease term, 2% of rent for the eleventh through the twentieth year of
a lease term, and 1% of rent for the twenty-first through thirtieth year of a
lease term, subject to the payment of rents by tenants.  In the event
third-party real estate brokers are used, the fees to Vornado increase by 1% and
Vornado is responsible for the fees to the third-party real estate
brokers.  Vornado is also entitled to a commission upon the sale of any of
our assets equal to 3% of gross proceeds, as defined, for asset sales less than
$50,000,000 and 1% of gross proceeds, as defined, for asset sales of $50,000,000
or more.  The total of these amounts is payable in annual installments in
an amount not to exceed $4,000,000, with interest on the unpaid balance at LIBOR
plus 1% (1.99% at December 31, 2010).  Other Agreements We have
agreements with Building Maintenance Services, a wholly owned subsidiary of
Vornado, to supervise cleaning, engineering and security services at our
Lexington Avenue and Kings Plaza properties for an annual fee of the cost for
such services plus 6%.  The following is
a summary of fees to Vornado under the agreements discussed above.  (Amounts in thousands)
    Year Ended
      December 31,2010
    
    2009
    
    2008Company management fees
    $
    3,000
    
    $
    3,000
    
    $
    3,000Development fees
    
    727
    
    
    3,215
    
    
    6,520Leasing fees
    
    4,267
    
    
    15,975
    
    
    2,946Property management fees and payments for
      cleaning,engineering and security
    services
    
    4,342
    
    
    4,108
    
    
    4,146$
    12,336
    
    $
    26,298
    
    $
    16,612
  As a result of
the substantial completion of the Rego Park II construction, we paid Vornado the
unpaid balance of the development fee of $13,934,000 in the fourth quarter of
2010.  At December 31, 2010, we owed Vornado $41,888,000 for leasing fees
and $1,897,000 for management, property management and cleaning fees. 31


---



LIQUIDITY AND
CAPITAL RESOURCES  We anticipate
that cash flows from continuing operations over the next twelve months, together
with existing cash balances, will be adequate to fund our business operations,
cash dividends to stockholders, debt amortization and recurring capital
expenditures.   Development Projects  The Rego Park II
property, a newly developed 615,000 square foot shopping center, is located
adjacent to our Rego Park I property in Queens, New York.  As of December
31, 2010, 89% of the center is in service.  In December 2010, we repaid a
portion of the construction loan and extended its maturity date to December
2011.  The loan has a balance of $277,200,000 at December 31, 2010 and
bears interest at LIBOR plus 1.20% (1.46% at December 31, 2010).   Insurance  We maintain
general liability insurance with limits of $300,000,000 per occurrence and
all-risk property and rental value insurance coverage with limits of $1.7
billion per occurrence, including coverage for terrorist acts, with sub-limits
for certain perils such as floods and earthquakes on each of our
properties.  There can be no assurance that we will be able to maintain
similar levels of insurance coverage in the future in amounts and on terms that
are commercially reasonable.  We are responsible for deductibles and losses
in excess of our insurance coverage, which could be material.  Our mortgage
loans are non-recourse to us, except for $75,000,000 of the $320,000,000
mortgage on our 731 Lexington Avenue property, in the event of a substantial
casualty, as defined.  Our mortgage loans contain customary covenants
requiring us to maintain insurance.  If lenders insist on greater coverage
than we are able to obtain, it could adversely affect our ability to finance our
properties.   Dividends  On January 12,
2011, we increased our regular quarterly dividend to $3.00 per share (an
indicated annual rate of $12.00 per share).  This dividend policy, if
continued for all of 2011, would require us to pay out approximately
$61,300,000. 32


---



LIQUIDITY AND
CAPITAL RESOURCES – continued  Debt and
Contractual Obligations  Below is a
summary of our outstanding debt at December 31, 2010.  Interest(Amounts in thousands)
    Balance
    
    Rate
    
    MaturityKings Plaza
    $
    151,214
    
    7.46%
    
    
    Jun.
      2011Paramus
    
    68,000
    
    5.92%
    
    
    Oct.
      2011Rego Park II(1)
    
    277,200
    
    1.46%
    
    
    Dec.
      2011Rego Park I(2)
    
    78,246
    
    0.75%
    
    
    Mar.
      2012Lexington Office
    
    351,751
    
    5.33%
    
    
    Feb.
      2014Lexington Retail(3)
    
    320,000
    
    4.93%
    
    
    Jul.
      2015$
    1,246,411
  __________________________ (1)This loan bears
interest at LIBOR plus 1.20%. (2)This loan is 100%
cash collateralized. (3)In the event of a
substantial casualty, up to $75,000 of this loan may become recourse to
us.   Below is a summary of our contractual obligations
and commitments as of December 31, 2010.  Less than
    
    One to
    
    Three
      to
    
    More than(Amounts in thousands)
    Total
    
    One
      Year
    
    Three
      Years
    
    Five
      Years
    
    Five
      YearsContractual obligations:Long-term debt obligations
    $
    1,389,800
    
    $
    557,961
    
    $
    171,067
    
    $
    660,772
    
    $
    -Operating lease obligations
    
    13,018
    
    
    802
    
    
    1,605
    
    
    1,605
    
    
    9,006Purchase obligations (primarilyconstuction commitments)
    
    359
    
    
    359
    
    
    -
    
    
    -
    
    
    -Other obligations (primarily due
    toVornado)
    
    51,043
    
    
    7,135
    
    
    8,000
    
    
    8,000
    
    
    27,908$
    1,454,220
    
    $
    566,257
    
    $
    180,672
    
    $
    670,377
    
    $
    36,914Commitments:Standby letters of credit
    $
    7,998,000
    
    $
    7,998,000
    
    $
    -
    
    $
    -
    
    $
    -
  The table above
excludes $3,041,000 of liabilities for income taxes for which the timing of
future cash flows is uncertain. 33


---



LIQUIDITY AND
CAPITAL RESOURCES – Continued  Cash Flows Property rental
income is our primary source of cash flow and is dependent on a number of
factors including the occupancy level and rental rates of our properties, as
well as our tenants’ ability to pay their rents.  Our properties provide us
with a relatively consistent stream of cash flow that enables us to pay our
operating expenses, interest expense, recurring capital expenditures and cash
dividends to stockholders.  Other sources of liquidity to fund cash
requirements include our existing cash, proceeds from financings, including
mortgage or construction loans secured by our properties and proceeds from asset
sales.  Cash and cash
equivalents were $397,220,000 at December 31, 2010, compared to $412,734,000 at
December 31, 2009, a decrease of $15,514,000.  This decrease resulted from
$72,143,000 of net cash used in financing activities and $19,393,000 of net cash
used in investing activities, partially offset by $76,022,000 of net cash
provided by operating activities. Our consolidated outstanding debt was
$1,246,411,000 at December 31, 2010, a $32,553,000 decrease from the balance at
December 31, 2009.  $496,414,000 of our outstanding debt matures during
2011.  We may refinance our maturing debt as it comes due or choose to
repay it.  Year Ended December 31, 2010 Net cash
provided by operating activities of $76,022,000 was comprised of net income of
$67,445,000, and $15,792,000 of adjustments for non-cash items, partially offset
by $7,215,000 for the net change in operating assets and liabilities.  The
adjustments for non-cash items were primarily comprised of (i) depreciation and
amortization of $34,849,000, partially offset by (ii) straight-lining of rental
income of $15,182,000 and (iii) a $5,113,000 reversal of a portion of the
liability for income taxes.  Net cash used in
investing activities of $19,393,000 was primarily comprised of $42,310,000 of
real estate additions, primarily related to the development of our Rego Park II
property, and purchases of short-term investments of $23,000,000, partially
offset by $40,000,000 of proceeds from maturing short-term
investments.  Net cash used in
financing activities of $72,143,000 was primarily comprised of (i) dividends
paid on common stock of $38,295,000, (ii) $27,500,000 for the purchase of a
portion of our Kings Plaza debt, (iii) $24,039,000 for the repayment of a
portion of Rego Park II construction loan upon exercise of the one-year
extension option and (iv) $17,080,000 for the repayment of borrowings, partially
offset by (v) $34,828,000 of borrowings under our Rego Park II construction
loan.   Year Ended December 31, 2009 Cash and cash
equivalents were $412,734,000 at December 31, 2009, compared to $515,940,000 at
December 31, 2008, a decrease of $103,206,000.  This decrease resulted from
$201,282,000 of net cash used in investing activities, partially offset by
$58,497,000 of net cash provided by financing activities and $39,579,000 of net
cash provided by operating activities.  Net cash
provided by operating activities of $39,579,000 was comprised of net income of
$132,941,000, partially offset by adjustments for non-cash items of $67,799,000
and the net change in operating assets and liabilities of $25,563,000.  The
adjustments for non-cash items were comprised of (i) a $42,472,000 reversal of a
portion of the liability for income taxes, (ii) a reversal of the liability for
SARs compensation expense of $34,275,000 and (iii) straight-lining of rental
income of $23,381,000, partially offset by (iv) depreciation and amortization of
$30,445,000 and (v) other non-cash adjustments of $1,884,000.  The net
change in operating assets and liabilities of $25,563,000 included a $22,838,000
payment for SARs compensation expense.  Net cash used in
investing activities of $201,282,000 was primarily comprised of restricted cash
of $86,427,000, primarily related to the fully cash-collateralized mortgage at
Rego Park I, capital expenditures of $74,855,000, primarily related to the
development of our Rego Park II project, and short-term investments of
$55,000,000, partially offset by $15,000,000 of proceeds from maturing
short-term investments.  Net cash
provided by financing activities of $58,497,000 was primarily comprised of
$162,961,000 of proceeds from a construction loan to fund expenditures for our
Rego Park II project, partially offset by repayments of borrowings of
$105,252,000.   34


---



LIQUIDITY AND CAPITAL RESOURCES –
Continued  Year Ended December 31, 2008 Cash and cash
equivalents were $515,940,000 at December 31, 2008, compared to $560,231,000 at
December 31, 2007, a decrease of $44,291,000.  This decrease resulted from
$131,638,000 of net cash used in investing activities, primarily related to
capital expenditures at our Rego Park II project, partially offset by
$78,088,000 of net cash provided by financing activities and $9,259,000 of net
cash provided by operating activities.  Net cash
provided by operating activities of $9,259,000 was primarily comprised of (i)
net income of $76,295,000, partially offset by, (ii) the net change in operating
assets and liabilities of $64,467,000 and (iii) adjustments for non-cash items
of $2,569,000.  The net change in operating assets and liabilities was
primarily comprised of a $62,808,000 payment for a portion of the liability for
SARs compensation expense.  The adjustments for non-cash items were
primarily comprised of (a) a reversal of a portion of the liability for SARs
compensation expense of $20,254,000 and (b) straight-lining of rental income of
$10,113,000, partially offset by (c) depreciation and amortization of
$26,719,000.  Net cash used in
investing activities of $131,638,000 was primarily comprised of capital
expenditures of $134,554,000, primarily related to the development of our Rego
Park II project.  Net cash
provided by financing activities of $78,088,000 was primarily comprised of
$125,909,000 of proceeds from a construction loan to fund expenditures for our
Rego Park II project, partially offset by the payment of a special dividend of
$35,571,000 and repayments of borrowings of $14,851,000.  35


---



Funds from Operations (“FFO”)  FFO is computed
in accordance with the definition adopted by the Board of Governors of the
National Association of Real Estate Investment Trusts (“NAREIT”).  NAREIT
defines FFO as GAAP net income or loss adjusted to exclude net gains from sales
of depreciated real estate assets, depreciation and amortization expense from
real estate assets, extraordinary items and other specified non-cash items,
including the pro rata share of such adjustments of unconsolidated
subsidiaries.  FFO and FFO per diluted share are used by management,
investors and analysts to facilitate meaningful comparisons of operating
performance between periods and among our peers because it excludes the effect
of real estate depreciation and amortization and net gains on sales, which are
based on historical costs and implicitly assume that the value of real estate
diminishes predictably over time, rather than fluctuating based on existing
market conditions.  FFO does not represent cash generated from operating
activities and is not necessarily indicative of cash available to fund cash
requirements and should not be considered as an alternative to net income as a
performance measure or cash flow as a liquidity measure.  FFO may not be
comparable to similarly titled measures employed by other companies.  A
reconciliation of our net income to FFO is provided below.  FFO attributable
to common stockholders for the year ended December 31, 2010 was $97,271,000, or
$19.05 per diluted share, compared to $158,960,000, or $31.14 per diluted share,
for the year ended December 31, 2009.  FFO attributable to common
stockholders for the years ended December 31, 2010 and 2009 include income of
$5,113,000 and $42,472,000, or $1.00 and $8.32 per diluted share, respectively,
from the reversal of a portion of the liability for income taxes due to the
expiration of the applicable statute of limitations.  The year ended
December 31, 2010 also includes $3,135,000, or $0.61 per diluted share, for a
litigation loss accrual related to our Flushing property and the year ended
December 31, 2009 includes $34,275,000, or $6.71 per diluted share, for the
reversal of a portion of previously recognized stock appreciation rights
compensation expense.  FFO attributable
to common stockholders for the quarter ended December 31, 2010 was $25,982,000,
or $5.09 per diluted share, compared to $22,372,000, or $4.38 per diluted share,
for the year ended December 31, 2009.  The following
table reconciles our net income to FFO:  For the
      Year Ended
    
    For the
      Quarter Ended(Amounts in thousands, except share and per
      share amounts)
    December
      31,
    
    December
      31,2010
    
    2009
    
    2010
    
    2009Net income attributable to
      Alexander’s
    $
    66,429
    
    $
    132,190
    
    $
    17,891
    
    $
    15,102Depreciation and amortization of real
      property
    
    30,842
    
    
    26,770
    
    
    8,091
    
    
    7,270FFO attributable to common
      stockholders
    $
    97,271
    
    $
    158,960
    
    $
    25,982
    
    $
    22,372FFO  attributable to common stockholders
      per diluted share
    $
    19.05
    
    $
    31.14
    
    $
    5.09
    
    $
    4.38Weighted average shares used in computing
      diluted FFO per share
    
    5,105,936
    
    
    5,105,370
    
    
    5,105,936
    
    
    5,105,936
 36


---



ITEM 7A.     QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK We have exposure
to fluctuations in interest rates, which are sensitive to many factors that are
beyond our control.  Our exposure to a change in interest rates is
summarized in the table below.  Balance as
      of
    
    
    
    
    Effect of
      1%December
      31,
    
    Weighted-Average
    
    Change in(Amounts in thousands, except per share
      amounts)
    2010
    
    Interest
      Rate
    
    Base RatesVariable (including $41,888 due to
      Vornado)
    $
    319,088
    
    1.53%
    
    
    $
    3,191Fixed Rate
    
    969,211
    
    5.24%
    
    
    
    -$
    1,288,299
    
    
    
    
    $
    3,191Total effect on diluted earnings per
      share
    
    
    
    
    
    
    $
    0.62
  The fair value
of our consolidated debt is calculated by discounting the future contractual
cash flows of our existing debt using the current rates available to borrowers
with similar credit ratings for the remaining terms of such debt.  As of
December 31, 2010 and 2009, the estimated fair value of our consolidated debt
was $1,291,048,000 and $1,215,501,000, respectively.  Our fair value
estimates, which are made at the end of the reporting period, may be different
from the amounts that may ultimately be realized upon disposition of our
financial instruments. 37


---



ITEM 8.       
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA  PageIndex to Consolidated Financial
      Statements
    NumberReport of Independent Registered Public
      Accounting Firm
    
    39Consolidated Balance Sheets at December 31,
      2010 and 2009
    
    40Consolidated Statements of Income for theYears Ended December 31, 2010, 2009 and
      2008
    
    41Consolidated Statements of Changes in Equity
      for theYears Ended December 31, 2010, 2009 and
      2008
    
    42Consolidated Statements of Cash Flows for
      theYears Ended December 31, 2010, 2009 and
      2008
    
    43Notes to Consolidated Financial
      Statements
    
    44
 38


---



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM  To the Board of
Directors and Stockholders of Alexander’s,
Inc. Paramus, New
Jersey  We have audited
the accompanying consolidated balance sheets of Alexander’s, Inc. and
subsidiaries (the “Company”) as of December 31, 2010 and 2009, and the related
consolidated statements of income, changes in equity, and cash flows for each of
the three years in the period ended December 31, 2010.  Our audits also
included the financial statement schedules listed in the Index at Item 15. 
These financial statements and financial statement schedules are the
responsibility of the Company’s management.  Our responsibility is to
express an opinion on the financial statements and financial statement schedules
based on our audits.  We conducted our
audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States).  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe that
our audits provide a reasonable basis for our opinion.  In our opinion,
such consolidated financial statements present fairly, in all material respects,
the financial position of Alexander’s, Inc. and subsidiaries at December 31,
2010 and 2009, and the results of their operations and their cash flows for each
of the three years in the period ended December 31, 2010, in conformity with
accounting principles generally accepted in the United States of America. 
Also, in our opinion, such financial statement schedules, when considered in
relation to the basic consolidated financial statements taken as a whole,
present fairly, in all material respects, the information set forth
therein.  We have also
audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the Company’s internal control over financial
reporting as of December 31, 2010, based on the criteria established inInternal Control—Integrated
Frameworkissued by the Committee of Sponsoring
Organizations of the Treadway Commission and our report dated February 22, 2011
expressed an unqualified opinion on the Company’s internal control over
financial reporting.   /s/ DELOITTE & TOUCHE LLP     Parsippany, New Jersey February 22, 2011 39


---



ALEXANDER’S, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Amounts in thousands, except share and per share amounts)December 31,ASSETS

   

   2010

   

   2009Real estate, at cost:Land

   

   $

   74,974

   

   $

   74,974Buildings and leasehold improvements

   

   

   934,782

   

   

   832,761Development and construction in progress

   

   

   40,535

   

   

   117,499Total

   

   

   1,050,291

   

   

   1,025,234Accumulated depreciation and amortization

   

   

   (157,232)

   

   

   (132,386)Real estate, net

   

   

   893,059

   

   

   892,848Cash and cash equivalents

   

   

   397,220

   

   

   412,734Short-term investments

   

   

   23,000

   

   

   40,000Restricted cash

   

   

   85,567

   

   

   91,484Accounts receivable, net of allowance for doubtful accounts of $1,047 and $1,736, respectively

   

   

   4,224

   

   

   2,159Receivable arising from the straight-lining of rents

   

   

   175,680

   

   

   160,498Deferred lease and other property costs, net (including unamortized leasing fees to Vornado of$48,949 and $49,638, respectively)

   

   

   68,835

   

   

   71,285Deferred debt issuance costs, net of accumulated amortization of $18,855, and $15,349, respectively

   

   

   8,167

   

   

   11,616Other assets

   

   

   23,548

   

   

   21,145$

   1,679,300

   

   $

   1,703,769LIABILITIES AND EQUITYNotes and mortgages payable

   

   $

   1,246,411

   

   $

   1,278,964Amounts due to Vornado

   

   

   43,785

   

   

   56,666Accounts payable and accrued expenses

   

   

   41,610

   

   

   45,208Liability for income taxes and other

   

   

   3,718

   

   

   8,305Total liabilities

   

   

   1,335,524

   

   

   1,389,143Commitments and contingenciesPreferred stock: $1.00 par value per share; authorized, 3,000,000 shares; issued and outstanding, none

   

   

   -

   

   

   -Common stock: $1.00 par value per share; authorized, 10,000,000 shares; issued 5,173,450 shares;outstanding, 5,105,936 shares

   

   

   5,173

   

   

   5,173Additional capital

   

   

   31,501

   

   

   31,501Retained earnings

   

   

   304,055

   

   

   275,921340,729

   

   

   312,595Treasury stock: 67,514 shares, at cost

   

   

   (375)

   

   

   (375)Total Alexander’s equity

   

   

   340,354

   

   

   312,220Noncontrolling interest in consolidated subsidiary

   

   

   3,422

   

   

   2,406Total equity

   

   

   343,776

   

   

   314,626$

   1,679,300

   

   $

   1,703,769See notes to consolidated financial statements.
 40


---



ALEXANDER’S, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(Amounts in thousands, except per share amounts)Year Ended December 31,2010

   

   2009

   

   2008REVENUESProperty rentals

   $

   166,403

   

   $

   155,275

   

   $

   143,004Expense reimbursements

   

   74,947

   

   

   68,254

   

   

   68,093Total revenues

   

   241,350

   

   

   223,529

   

   

   211,097EXPENSESOperating (including fees to Vornado of $5,182, $4,948 and $4,986, respectively)

   

   78,652

   

   

   73,340

   

   

   77,110Depreciation and amortization

   

   31,343

   

   

   27,284

   

   

   24,066General and administrative (including a reversal of stock appreciation rights (“SARs”)compensationexpense of $34,275 and $20,254, in 2009 and 2008, respectively,andmanagement fees to Vornado of $2,160 in each year)

   

   7,792

   

   

   (28,246)

   

   

   (14,567)Total expenses

   

   117,787

   

   

   72,378

   

   

   86,609OPERATING INCOME

   

   123,563

   

   

   151,151

   

   

   124,488Interest and other income, net

   

   851

   

   

   2,847

   

   

   15,222Interest and debt expense

   

   (58,372)

   

   

   (57,473)

   

   

   (62,474)Net loss on early extinguishment of debt

   

   (1,238)

   

   

   (519)

   

   

   -Income before income taxes

   

   64,804

   

   

   96,006

   

   

   77,236Income tax benefit (expense)

   

   2,641

   

   

   36,935

   

   

   (941)Net income

   

   67,445

   

   

   132,941

   

   

   76,295Net income attributable to the noncontrolling interest

   

   (1,016)

   

   

   (751)

   

   

   (7)Net income attributable to Alexander’s

   $

   66,429

   

   $

   132,190

   

   $

   76,288Net income per common share - basic

   $

   13.01

   

   $

   25.90

   

   $

   15.05Weighted average shares - basic

   

   5,105,936

   

   

   5,103,790

   

   

   5,067,426Net income per common share - diluted

   $

   13.01

   

   $

   25.89

   

   $

   14.96Weighted average shares - diluted

   

   5,105,936

   

   

   5,105,370

   

   

   5,098,529Dividends per common share (including a special dividend in 2008)

   $

   7.50

   

   $

   -

   

   $

   7.00See notes to consolidated financial statements.
 41


---



ALEXANDER’S, INC. AND
      SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN
      EQUITY(Amounts
      in thousands)Non-(Amounts in thousands)
    Common
      Stock
    
    Additional
    
    Retained
    
    Treasury
    
    Alexander’s
    
    controlling
    
    TotalShares
    
    Amount
    
    Capital
    
    Earnings
    
    Stock
    
    Equity
    
    Interest
    
    EquityBalance, December 31,
      2007
    5,173
    
    $
    5,173
    
    $
    27,636
    
    $
    103,014
    
    $
    (720)
    
    $
    135,103
    
    $
    2,323
    
    $
    137,426Net income
    -
    
    
    -
    
    
    -
    
    
    76,288
    
    
    -
    
    
    76,288
    
    
    7
    
    
    76,295Special cash dividend($7.00 per share)
    -
    
    
    -
    
    
    -
    
    
    (35,571)
    
    
    -
    
    
    (35,571)
    
    
    -
    
    
    (35,571)Distributions
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    (675)
    
    
    (675)Common stock issued underoption plan
    -
    
    
    -
    
    
    3,011
    
    
    -
    
    
    265
    
    
    3,276
    
    
    -
    
    
    3,276Balance, December 31,
      2008
    5,173
    
    
    5,173
    
    
    30,647
    
    
    143,731
    
    
    (455)
    
    
    179,096
    
    
    1,655
    
    
    180,751Net income
    -
    
    
    -
    
    
    -
    
    
    132,190
    
    
    -
    
    
    132,190
    
    
    751
    
    
    132,941Common stock issued underoption plan
    -
    
    
    -
    
    
    854
    
    
    -
    
    
    80
    
    
    934
    
    
    -
    
    
    934Balance, December 31,
      2009
    5,173
    
    
    5,173
    
    
    31,501
    
    
    275,921
    
    
    (375)
    
    
    312,220
    
    
    2,406
    
    
    314,626Net income
    -
    
    
    -
    
    
    -
    
    
    66,429
    
    
    -
    
    
    66,429
    
    
    1,016
    
    
    67,445Dividends paid on commonstock
    -
    
    
    -
    
    
    -
    
    
    (38,295)
    
    
    -
    
    
    (38,295)
    
    
    -
    
    
    (38,295)Balance, December 31,
      2010
    5,173
    
    $
    5,173
    
    $
    31,501
    
    $
    304,055
    
    $
    (375)
    
    $
    340,354
    
    $
    3,422
    
    $
    343,776See notes
      to consolidated financial statements.
 42


---



ALEXANDER’S, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in thousands)Year Ended December 31,2010

   

   2009

   

   2008CASH FLOWS FROM OPERATING ACTIVITIESNet income

   $

   67,445

   

   $

   132,941

   

   $

   76,295Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization (including amortization of debt issuance costs)

   

   34,849

   

   

   30,445

   

   

   26,719Straight-lining of rental income

   

   (15,182)

   

   

   (23,381)

   

   

   (10,113)Reversal of income tax liability

   

   (5,113)

   

   

   (42,472)

   

   

   (800)Liability for stock appreciation rights

   

   -

   

   

   (34,275)

   

   

   (20,254)Other non-cash adjustments

   

   1,238

   

   

   1,884

   

   

   1,879Change in operating assets and liabilities:Accounts receivable, net

   

   (2,065)

   

   

   4,421

   

   

   (635)Other assets

   

   (6,068)

   

   

   (12,421)

   

   

   (3,947)Payment for stock appreciation rights

   

   -

   

   

   (22,838)

   

   

   (62,808)Accounts payable and accrued expenses

   

   13,273

   

   

   4,668

   

   

   (4,467)Income tax liability of taxable REIT subsidiary

   

   704

   

   

   2,054

   

   

   2,549Amounts due to Vornado

   

   (12,881)

   

   

   (1,344)

   

   

   4,898Other liabilities

   

   (178)

   

   

   (103)

   

   

   (57)Net cash provided by operating activities

   

   76,022

   

   

   39,579

   

   

   9,259CASH FLOWS FROM INVESTING ACTIVITIESConstruction in progress and real estate additions

   

   (42,310)

   

   

   (74,855)

   

   

   (134,554)Purchases of short-term investments

   

   (23,000)

   

   

   (55,000)

   

   

   -Proceeds from maturing short-term investments

   

   40,000

   

   

   15,000

   

   

   -Restricted cash

   

   5,917

   

   

   (86,427)

   

   

   (70)Proceeds from the sale of real estate tax abatement certificates

   

   -

   

   

   -

   

   

   2,986Net cash used in investing activities

   

   (19,393)

   

   

   (201,282)

   

   

   (131,638)CASH FLOWS FROM FINANCING ACTIVITIESDebt repayments

   

   (68,619)

   

   

   (105,252)

   

   

   (14,851)Dividends paid (including a special dividend in 2008)

   

   (38,295)

   

   

   -

   

   

   (35,571)Proceeds from borrowings

   

   34,828

   

   

   162,961

   

   

   125,909Debt issuance costs

   

   (57)

   

   

   (146)

   

   

   -Exercise of stock options

   

   -

   

   

   934

   

   

   3,276Distributions to the noncontrolling interest

   

   -

   

   

   -

   

   

   (675)Net cash (used in) provided by financing activities

   

   (72,143)

   

   

   58,497

   

   

   78,088Net decrease in cash and cash equivalents

   

   (15,514)

   

   

   (103,206)

   

   

   (44,291)Cash and cash equivalents at beginning of year

   

   412,734

   

   

   515,940

   

   

   560,231Cash and cash equivalents at end of year

   $

   397,220

   

   $

   412,734

   

   $

   515,940SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATIONCash payments for interest (of which $1,269, $3,452 and $10,584 havebeen capitalized)

   $

   52,889

   

   $

   57,906

   

   $

   68,097Non-cash additions to real estate included in accounts payable and accrued expenses

   $

   -

   

   $

   22,409

   

   $

   33,406See notes to consolidated financial statements.
 43


---



ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  1.    ORGANIZATION Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties.  All references to “we,” “us,” “our,” “Company” and “Alexander’s” refer to Alexander’s, Inc. and its consolidated subsidiaries.  We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO).  We have seven properties in the greater New York City metropolitan area consisting of:  Operating properties  (i)      the 731 Lexington Avenue property, a 1,307,000 square foot multi-use building, comprising the entire square block bounded by Lexington Avenue, East 59th Street, Third Avenue and East 58th Street in Manhattan.  The building contains 885,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold.  Bloomberg L.P. (“Bloomberg”) occupies all of the office space.  The Home Depot (83,000 square feet), The Container Store (34,000 square feet) and Hennes & Mauritz (27,000 square feet) are the principal retail tenants;  (ii)     the Kings Plaza Regional Shopping Center contains 1,210,000 square feet and is located on Flatbush Avenue in Brooklyn.  The center is anchored by a 339,000 square foot Macy’s (owned by Macy’s, Inc.), a 289,000 square foot Sears department store and a 114,000 square foot Lowe’s on land leased from us;  (iii)the Rego Park I Shopping Center contains 343,000 square feet and is located on Queens Boulevard and 63rd Road in Queens.  The center is anchored by a 195,000 square foot Sears department store, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls.  In January 2011, we leased 50,000 square feet to Burlington Coat Factory;  (iv)the Rego Park II property, a newly developed 615,000 square foot shopping center, islocated adjacent to our Rego Park I property in Queens.  As of December 31, 2010, 89% of the center is in service and such portion is 100% leased, primarily to three anchor tenants: a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.  In addition 47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned affiliate of Vornado;  (v)    the Paramus property, located at the intersection of Routes 4 and 17 in Paramus, New Jersey, consists of 30.3 acres of land leased to IKEA Property, Inc.;  (vi)   the Flushing property, a 167,000 square foot building, is located at Roosevelt Avenue and Main Street in Queens and is sub-leased to New World Mall LLC for the remainder of our ground lease term; and  Property to be developed  (vii)the Rego Park III property is a 3.4 acre land parcel adjacent to our Rego Park II property in Queens at the intersection of Junction Boulevard and the Horace Harding Service Road.   We have determined that our properties have similar economic characteristics and meet the criteria which permit the properties to be aggregated into one reportable segment (the leasing, management, development and redeveloping of properties in the greater New York City metropolitan area).  Our chief operating decision-maker assesses and measures segment operating results based on a performance measure referred to as net operating income at the individual operating segment.  Net operating income for each property represents net rental revenues less operating expenses. 44


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ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation– The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries.  All significant intercompany amounts have been eliminated.  Our financial statements are prepared in conformity with the accounting principles generally accepted in the United States of America (“GAAP”), which requires us 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.   Real Estate– Real estate is carried at cost, net of accumulated depreciation and amortization.  Maintenance and repairs are charged to operations as incurred.  Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. If we do not allocate these costs appropriately or incorrectly estimate the useful lives of our real estate, depreciation expense may be misstated.  As real estate is undergoing development activities, all property operating expenses, including interest expense, are capitalized to the cost of the real property to the extent that we believe such costs are recoverable through the value of the property.  Our properties and related intangible assets, including properties to be developed in the future, currently under development and those that are substantially completed and are to be held and used, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared.  For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset.  An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value.  If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results.  Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.   Cash and Cash Equivalents– Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less.  The majority of our cash and cash equivalents are held at major commercial banks which may at times exceed the Federal Deposit Insurance Corporation limit.  To date we have not experienced any losses on our invested cash.   Short-term Investments –Short-term investments consist of certificates of deposit placed through an account registry service (“CDARS”) with original maturities of 91 to 180 days.  These investments are FDIC insured and classified as available-for-sale.   Restricted Cash –Restricted cash consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements.  45


---



ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued  Allowance for Doubtful Accounts– We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ($1,047,000 and $1,736,000 as of December 31, 2010 and 2009, respectively) for estimated losses resulting from the inability of tenants to make required payments under the lease agreements.  We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates.   Deferred Charges– Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense.  Direct costs related to leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases.  All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate.   Fair Value of Financial Instruments–The fair value of our consolidated debt is calculated by discounting the future contractual cash flows of our existing debt using the current rates available to borrowers with similar credit ratings for the remaining terms of such debt.  As of December 31, 2010 and 2009, the estimated fair value of our consolidated debt was $1,291,048,000 and $1,215,501,000, respectively.  Our fair value estimates, which are made at the end of  the reporting period, may be different from the amounts that may ultimately be realized upon disposition of our financial instruments.   Revenue Recognition– We have the following revenue sources and revenue recognition policies:  Base Rent(revenue arising from tenant leases) – These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases.  We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use.  In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease.  Percentage Rent(revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds) – These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).  Expense Reimbursements(revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties) – This revenue is accrued in the same periods as the expenses are incurred.  Parking Income(revenue arising from the rental of parking space at our properties) – This income is recognized as cash is received.   Income Taxes– We operate in a manner intended to enable us to continue to qualify as a Real Estate Investment Trust (“REIT”) under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”).  In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year.  To the extent we do notdistribute all of ourtaxable income, we would be subject to corporate levelincome taxes. Because the balance of our net operating loss carryover (“NOL”) has exceeded taxable income in the past, there was no distribution requirement. In 2010, our estimated taxable income exceeded the remaining balance of our NOL and we began paying a regular quarterly dividend which approximated our taxable income. All of the dividends distributed in 2010 were characterized as ordinary income for federal income tax purposes. In 2008, we declared and paid a special dividend which was attributable to the liquidation of the wholly owned 731 Lexington Avenue taxable REIT subsidiary into Alexander’s.  46


---



ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued The following table reconciles our net income to estimated taxable income (loss) for the years ended December 31, 2010, 2009 and 2008. (Unaudited and in thousands)

   Years Ended December 31,2010

   

   2009

   

   2008Net income attributable to Alexander’s

   $

   66,429

   

   $

   132,190

   

   $

   76,288Straight-line rent adjustments

   

   (15,182)

   

   

   (23,381)

   

   

   (6,634)Depreciation and amortization timing differences

   

   602

   

   

   1,385

   

   

   16Reversal of liability for income taxes

   

   (3,162)

   

   

   (37,307)

   

   

   (625)Interest expense

   

   -

   

   

   (107)

   

   

   -Stock appreciation rights compensation expense

   

   -

   

   

   (57,113)

   

   

   (83,973)Net income of the TRS

   

   -

   

   

   -

   

   

   (3,165)Other

   

   6,245

   

   

   (3,395)

   

   

   (9,521)Taxable income (loss) before NOL

   

   54,932

   

   

   12,272

   

   

   (27,614)NOL carried forward

   

   (16,939)

   

   

   (29,211)

   

   

   (1,597)Taxable income/(NOL)

   $

   37,993

   

   $

   (16,939)

   

   $

   (29,211)
  At December 31, 2010, the net basis of our assets and liabilities for tax purposes is approximately $197,991,000 lower than the amount reported for financial statement purposes.  Under ASC 740,Income Taxes, deferred income taxes would be recognized for temporary differences between the financial reporting basis of assets and liabilities and their respective tax basis and for operating loss and tax credit carry-forwards based on enacted tax rates expected to be in effect when such amounts are realized or settled.  However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of available evidence, including tax planning strategies and other factors.  As of December 31, 2010 and 2009 there were no deferred tax assets or liabilities on our consolidated balance sheets.   Income Per Share  Basic income per share is computed based on weighted average shares of common stock outstanding during the period.  Diluted income per share is computed based on the weighted average shares of common stock outstanding during the period and assumes all potentially dilutive securities were converted into common stock at the earliest date possible.   Recently Issued Accounting Literature  On January 21, 2010, the Financial Accounting Standards Board (“FASB”) issued an update to Accounting Standards Codification (“ASC”) 820,Fair Value Measurements and Disclosures, adding new requirements for disclosures about transfers into and out of Levels 1 and 2 fair value measurements and additional disclosures about the activity within Level 3 fair value measurements.  The adoption of this guidance on January 1, 2010 did not have any effect on our consolidated financial statements.  On June 12, 2009, the FASB issued an update to ASC 810,Consolidation, which modifies the existing quantitative guidance used in determining the primary beneficiary of a variable interest entity (“VIE”) by requiring entities to qualitatively assess whether an enterprise is a primary beneficiary, based on whether the entity has (i) power over the significant activities of the VIE, and (ii) an obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE.  The adoption of this guidance on January 1, 2010 did not have any effect on our consolidated financial statements. 47


---



ALEXANDER’S,
INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  3.    RELATED PARTY
TRANSACTIONS  Vornado At December 31,
2010, Vornado owned 32.4% of our outstanding common stock.  We are managed
by, and our properties are leased and developed by, Vornado, pursuant to the
agreements described below, which expire in March of each year and are
automatically renewable.  Steven Roth is the Chairman of our Board of
Directors and our Chief Executive Officer, the Managing General Partner of
Interstate Properties (“Interstate”), a New Jersey general partnership, and the
Chairman of the Board of Trustees of Vornado.  At December 31, 2010,
Mr. Roth, Interstate and its other two general partners, David Mandelbaum
and Russell B. Wight, Jr. (who are also directors of the Company and trustees of
Vornado) owned, in the aggregate, 27.2% of our outstanding common stock, in
addition to the 2.3% they indirectly own through Vornado.  Michael D.
Fascitelli, President and Chief Executive Officer of Vornado, is our President
and a member of our Board of Directors.  Joseph Macnow, our Executive Vice
President and Chief Financial Officer, holds the same position with
Vornado.  Management and Development
Agreements We pay Vornado
an annual management fee equal to the sum of (i) $3,000,000, (ii) 3% of gross
income from the Kings Plaza Regional Shopping Center, (iii) $0.50 per square
foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and
(iv) $248,000, escalating at 3% per annum, for managing the common area of 731
Lexington Avenue.  In addition,
Vornado is entitled to a development fee of 6% of development costs, as defined,
with a minimum guaranteed fee of $750,000 per annum.  Leasing Agreements Vornado also
provides us with leasing services for a fee of 3% of rent for the first ten
years of a lease term, 2% of rent for the eleventh through the twentieth year of
a lease term, and 1% of rent for the twenty-first through thirtieth year of a
lease term, subject to the payment of rents by tenants.  In the event
third-party real estate brokers are used, the fees to Vornado increase by 1% and
Vornado is responsible for the fees to the third-party real estate
brokers.  Vornado is also entitled to a commission upon the sale of any of
our assets equal to 3% of gross proceeds, as defined, for asset sales less than
$50,000,000 and 1% of gross proceeds, as defined, for asset sales of $50,000,000
or more.  The total of these amounts is payable in annual installments in
an amount not to exceed $4,000,000, with interest on the unpaid balance at LIBOR
plus 1% (1.99% at December 31, 2010).  Other Agreements We have
agreements with Building Maintenance Services, a wholly owned subsidiary of
Vornado, to supervise cleaning, engineering and security services at our
Lexington Avenue and Kings Plaza properties for an annual fee of the cost for
such services plus 6%. 48


---



ALEXANDER’S,
INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  3.    RELATED PARTY TRANSACTIONS -
continued   The following is
a summary of fees to Vornado under the agreements discussed above.  (Amounts in thousands)
    
    Year Ended
      December 31,2010
    
    2009
    
    2008Company management fees
    
    $
    3,000
    
    $
    3,000
    
    $
    3,000Development fees
    
    
    727
    
    
    3,215
    
    
    6,520Leasing fees
    
    
    4,267
    
    
    15,975
    
    
    2,946Property management fees and payments for
      cleaning, engineeringand security services
    
    
    4,342
    
    
    4,108
    
    
    4,146$
    12,336
    
    $
    26,298
    
    $
    16,612
   As a result of
the substantial completion of the Rego Park II construction, we paid Vornado the
unpaid balance of the development fee of $13,934,000 in the fourth quarter of
2010. At December 31, 2010, we owed Vornado $41,888,000 for leasing fees, and
$1,897,000 for management, property management and cleaning fees.   4.    FAIR VALUE
MEASUREMENTS ASC 820,Fair Value Measurement and Disclosuresdefines fair value and establishes a framework for
measuring fair value.  The objective of fair value is to determine the
price that would be received upon the sale of an asset or paid to transfer a
liability in an orderly transaction between market participants at the
measurement date (the exit price).ASC 820
establishes a fair value hierarchy that prioritizes observable and unobservable
inputs used to measure fair value into three levels: Level 1 – quoted prices
(unadjusted) in active markets that are accessible at the measurement date for
assets or liabilities; Level 2 – observable prices that are based on inputs not
quoted in active markets, but corroborated by market data; and Level 3 –
unobservable inputs that are used when little or no market data is
available.  The fair value hierarchy gives the highest priority to Level 1
inputs and the lowest priority to Level 3 inputs. In determining fair value, we
utilize valuation techniques that maximize the use of observable inputs and
minimize the use of unobservable inputs to the extent possible as well as
consider counterparty credit risk in our assessment of fair value. 
Financial assets recorded at fair value in our consolidated financial statements
at December 31, 2010 and 2009 consist solely of short-term investments (CDARS
classified as available-for-sale) and are presented in the table below based on
their level in the fair value hierarchy.  There were no financial
liabilities recorded at fair value at December 31, 2010 and 2009.  As of
      December 31, 2010(Amounts in thousands)
    Total
    
    Level
      1
    
    Level
      2
    
    Level
      3Short-term investments
    $
    23,000
    
    $
    23,000
    
    $
    -
    
    $
    -As of
      December 31, 2009(Amounts in thousands)
    Total
    
    Level
      1
    
    Level
      2
    
    Level
      3Short-term investments
    $
    40,000
    
    $
    40,000
    
    $
    -
    
    $
    -
 49


---



ALEXANDER’S,
INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  5.    REGO PARK II
PROJECT The Rego Park II
property, a newly developed 615,000 square foot shopping center, is located
adjacent to our Rego Park I property in Queens, New York.  As of December
31, 2010, 89% of the center is in service and such portion is 100% leased,
primarily to three anchor tenants: a 145,000 square foot Costco, a 135,000
square foot Century 21 and a 133,000 square foot Kohl’s.  In addition,
47,000 square feet is leased to Toys “R” Us/Babies “R” Us, a one-third owned
affiliate of Vornado.  The center contains a parking deck (1,315 spaces)
that provides paid parking.  In December
2010, we repaid a portion of the construction loan and extended its maturity
date to December 2011. The loan has a balance of $277,200,000 at December 31,
2010 and bears interest at LIBOR plus 1.20% (1.46% at December 31,
2010).   6.    NOTES AND MORTGAGES
PAYABLE The following is
a summary of our outstanding notes and mortgages payable.  Interest
      Rate at
    
    Balance at
      December 31(Amounts in thousands)
    Maturity
    
    December
      31, 2010
    
    2010
    
    
    2009First mortgage, secured by the Kings PlazaRegional Shopping Center
    Jun. 2011
    
    7.46
    %
    
    $
    151,214
    (1)
    
    $
    183,318First mortgage, secured by the Paramus
      property
    Oct. 2011
    
    5.92
    %
    
    
    68,000
    
    
    
    68,000Construction loan, secured by theRego Park II Shopping
      Center(2)
    Dec. 2011
    
    1.46
    %
    
    
    277,200
    
    
    
    266,411First mortgage, secured by the Rego Park IShopping Center (100% cash
      collateralized)
    Mar. 2012
    
    0.75
    %
    
    
    78,246
    
    
    
    78,246First mortgage, secured by the office spaceat the Lexington Avenue property
    Feb. 2014
    
    5.33
    %
    
    
    351,751
    
    
    
    362,989First mortgage, secured by the retail spaceat the Lexington Avenue
      property(3)
    Jul. 2015
    
    4.93
    %
    
    
    320,000
    
    
    
    320,000$
    1,246,411
    
    
    $
    1,278,964___________________(1)
    On March 3, 2010, we acquired $27,500 of this
      debt for $28,738 in cash, resulting in a $1,238 net loss on early
      extinguishment of debt.(2)
    This loan bears interest at LIBOR plus
      1.20%.(3)
    In the event of a substantial casualty, as
      defined, up to $75,000 of this loan may become recourse to
    us.
   All of our debt
is secured by mortgages and/or pledges of the stock of the subsidiaries holding
the properties.  The net carrying value of real estate collateralizing the
debt amounted to $890,289,000 at December 31, 2010.  Our existing financing
documents contain covenants that limit our ability to incur additional
indebtedness on these properties, provide for lender approval of tenants’ leases
in certain circumstances, and provide for yield maintenance to prepay
them.  As of December 31, 2010, the principal repayments for the next five
years and thereafter are as follows:  (Amounts in thousands)Year Ending December 31,
    
    Amount2011
    
    $
    508,2752012
    
    
    90,7112013
    
    
    13,2082014
    
    
    314,2172015
    
    
    320,000Thereafter
    
    
    -
  We may refinance our maturing debt as it comes due
or choose to repay it. 50


---



ALEXANDER’S,
INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  7.    LIABILITY FOR INCOME
TAXES In accordance
with the provisions of ASC 740,Income Taxes, we have an
income tax liability of $3,041,000 and $7,450,000 as of December 31, 2010 and
2009, respectively.  This ASC 740 liability, which includes $2,466,000 and
$4,041,000 of accrued interest as of December 31, 2010 and 2009, respectively,
is included as a component of “liability for income taxes and other,” on our
consolidated balance sheets.  If this liability were reversed, it would
result in non-cash income and reduce our effective tax rate.  Of this
liability, $2,455,000 is expected to reverse in the third quarter of 2011 as a
result of the expiration of the applicable statute of limitations. 
Interest expense related to the ASC 740 liability is included as a component of
“interest and debt expense” on our consolidated statements of income.  In
the years ended December 31, 2010, 2009 and 2008, we recognized interest of
$376,000, $1,807,000 and $2,549,000, respectively.  (Amounts in thousands)
    AmountBalance at January 1, 2009
    $
    47,868Additions based on tax positions related to
      the current year
    
    247Additions for tax positions of prior
      years
    
    1,807Reduction for tax positions of prior
      years
    
    (42,472)Settlements
    
    -Balance at December 31, 2009
    
    7,450Additions based on tax positions related to
      the current year
    
    328Additions for tax positions of prior
      years
    
    376Reduction for tax positions of prior
      years
    
    (5,113)Settlements
    
    -Balance at December 31, 2010
    $
    3,041
  In 2010 and
2009, we reversed $5,113,000 and $42,472,000, respectively, of liabilities
related to income taxes as a result of the expiration of the applicable statute
of limitations.  Accordingly, we recognized income in 2010 and 2009, of
which $3,162,000 and $37,307,000, respectively, were included as a component of
“income tax benefit” (portion previously recognized as income tax expense) and
$1,951,000 and $5,165,000, respectively, were included as a reduction of
“interest and debt expense” (portion previously recognized as interest expense)
on our consolidated statements of income.  As of December
31, 2010, Taxable REIT Subsidiary (“TRS”) tax returns for the years 2004 through
2009 and REIT tax returns for the years 2007 through 2009 remain open to
examination by the major taxing jurisdictions to which we are subject.   8.    NONCONTROLLING INTEREST IN
CONSOLIDATED SUBSIDIARY Prior to 2005,
we owned and operated an energy plant that generated all of the electrical power
at our Kings Plaza Regional Shopping Center.  In April 2005, we contributed
the 35 year old plant and $750,000 in cash, for a 25% interest in a joint
venture.  In addition, we provided the joint venture with a $15,350,000
loan (eliminated in consolidation).  The joint venture rebuilt the plant at
a total cost of approximately $18,350,000 and began operations in March
2007.  Pursuant to ASC Topic 805,Business Combinations,we control the
joint venture and accordingly, consolidate its accounts into our consolidated
financial statements. 51


---



ALEXANDER’S,
INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  9.    LEASES As Lessor We lease space
to tenants in retail centers and an office building.  The rental terms
range from approximately 5 to 25 years.  The leases provide for the payment
of fixed base rents payable monthly in advance as well as reimbursements of real
estate taxes, insurance and maintenance costs.  Retail leases also provide
for the payment by the lessee of additional rents based on a percentage of their
sales.  Future base
rental revenue under these non-cancelable operating leases is as
follows:  (Amounts in thousands)Year Ending December 31,
    
    Amount2011
    
    $
    150,0192012
    
    
    154,0982013
    
    
    148,9452014
    
    
    146,1582015
    
    
    145,877Thereafter
    
    
    1,506,739
  These future minimum amounts do not
include additional rents based on a percentage of tenants’ sales.  For the
years ended December 31, 2010, 2009, and 2008, these rents were $665,000,
$633,000, and $784,000, respectively.  Bloomberg L.P.
(“Bloomberg”) accounted for $83,137,000, $77,988,000 and $66,333,000, or 34%,
35% and 31% of our consolidated revenues in the years ended December 31, 2010,
2009 and 2008, respectively.  No other tenant accounted for more than 10%
of consolidated revenues in any of the last three years.  If we were to
lose Bloomberg as a tenant, or if Bloomberg were to fail or become unable to
perform its obligations under its lease, it would adversely affect our results
of operations and financial condition.  We receive and evaluate certain
confidential financial information and metrics from Bloomberg on a semi-annual
basis.  In addition, we access and evaluate financial information regarding
Bloomberg from private sources, as well as publicly available data.  As Lessee We are a tenant under long-term ground
leases that range from approximately 8 to 17 years.  Future minimum lease
payments under these operating leases are as follows:  (Amounts in thousands)Year Ending December 31,
    
    Amount2011
    
    $
    8022012
    
    
    8022013
    
    
    8032014
    
    
    8022015
    
    
    803Thereafter
    
    
    9,006
  Rent expense is
primarily for our Flushing ground lease and was $848,000, $848,000, and $841,000
for the years ended December 31, 2010, 2009 and 2008, respectively. 52


---



ALEXANDER’S,
INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  10.  COMMITMENTS AND
CONTINGENCIES Insurance We maintain
general liability insurance with limits of $300,000,000 per occurrence and
all-risk property and rental value insurance coverage with limits of $1.7
billion per occurrence, including coverage for terrorist acts, with sub-limits
for certain perils such as floods and earthquakes on each of our
properties.  There can be no assurance that we will be able to maintain
similar levels of insurance coverage in the future in amounts and on terms that
are commercially reasonable.  We are responsible for deductibles and losses
in excess of our insurance coverage, which could be material.  Our mortgage
loans are non-recourse to us, except for $75,000,000 of the $320,000,000
mortgage on our 731 Lexington Avenue property, in the event of a substantial
casualty, as defined.  Our mortgage loans contain customary covenants
requiring us to maintain insurance.  If lenders insist on greater coverage
than we are able to obtain, it could adversely affect our ability to finance our
properties.  Environmental Remediation In July 2006, we
discovered an oil spill at our Kings Plaza Regional Shopping Center.  We
have notified the New York State Department of Environmental Conservation
(“NYSDEC”) about the spill and have developed a remediation plan. The NYSDEC has
approved a portion of the remediation plan and clean up is ongoing.  The
estimated costs associated with the clean up will aggregate approximately
$2,500,000.  We have paid $500,000 of such amount and the remainder is
covered under our insurance policy.  Flushing Property In 2003, we
recognized $1,289,000 of income representing a non-refundable purchase deposit
of $1,875,000, net of $586,000 of costs associated with the transaction, from a
party that agreed to purchase this property, as such party had not met its
obligations under a May 30, 2002 purchase contract.  On September 10, 2002,
November 7, 2002, and July 8, 2004, we received letters from the party demanding
return of the deposit.  On December 28, 2005, the party filed a complaint
against us in the New York State Court alleging that we failed to honor the
terms and conditions of the agreement.  The complaint sought specific
performance and, if specific performance was denied, it sought a return of the
deposit plus interest and $50,000 in costs.  In August 2010, the New York
State Court entered judgment denying specific performance and ordered us to
return the deposit together with accrued interest and fees.  We have filed
a notice of appeal and this judgment is stayed pending the appeal.  As a
result of the judgment, included as a component of “general and administrative”
expenses on our consolidated statement of income for the year ended December 31,
2010 is a $3,135,000 litigation loss accrual, representing the amount of the
deposit, accrued interest and fees.  Paramus In 2001 we
leased 30.3 acres of land located in Paramus, New Jersey to IKEA Property, Inc.
The lease has a 40-year term with a purchase option in 2021 for $75,000,000. We
have a $68,000,000 interest only, non-recourse mortgage loan on the property
from a third party lender. The fixed interest rate on the debt is 5.92% with
interest payable monthly until maturity in October 2011. The annual triple-net
rent is the sum of $700,000 plus the amount of debt service on the mortgage
loan. If the purchase option is exercised, we will receive net cash proceeds of
approximately $7,000,000 and recognize a gain on sale of land of approximately
$62,000,000. If the purchase option is not exercised, the triple-net rent for
the last 20 years must include the debt service sufficient to fully amortize
$68,000,000 over the remaining 20-year lease term.  Letters of Credit Approximately
$7,998,000 of standby letters of credit were issued and outstanding as of
December 31, 2010.  Other There are
various other legal actions against us in the ordinary course of business. 
In our opinion, the outcome of such matters will not have a material effect on
our financial condition, results of operations or cash flows. 53


---



ALEXANDER’S,
INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  11.  STOCK-BASED COMPENSATION Our Omnibus
Stock Plan (the “Plan”), which was approved by our stockholders on May 18, 2006,
provides for grants of incentive and non-qualified stock options, restricted
stock, SARs and performance shares, as defined, to the directors, officers and
employees of the Company and Vornado, and any other person or entity as
designated by the Omnibus Stock Plan Committee of our Board of Directors (the
“Committee”).  At December 31, 2010, there were 895,000 shares available
for future grant under the Plan.  We account for
all stock-based compensation in accordance with ASC 718,Compensation-Stock Compensation.  Stock Options There have been
no stock option grants since 1999; accordingly, no compensation expense was
recognized during the years ended December 31, 2010, 2009 and 2008.  There
were 14,346 and 47,640 options exercised during the years ended December 31,
2009 and 2008, respectively.  Cash received from option exercises in each
of the years ended December 31, 2009 and 2008 was $934,000 and $3,276,000,
respectively.  As of December 31, 2010, there are no stock options
outstanding.  Stock Appreciation Rights
(“SARs”) On September 15
and October 14, 2008, Steven Roth, the Chairman of our Board of Directors and
Chief Executive Officer, exercised an aggregate of 200,000 SARs which were
scheduled to expire on March 4, 2009 and received gross proceeds of
$62,808,000.  On March 2, 2009, Mr. Roth and Mr. Fascitelli each exercised
150,000 SARs, which were scheduled to expire on March 4, 2009 and each received
gross proceeds of $11,419,000.  These SARs were granted at 100% of the
market price of our company’s stock on the date of grant.  As of December
31, 2010, there are no SARs outstanding.   12.  EARNINGS PER SHARE The following
table sets forth the computation of basic and diluted income per share,
including a reconciliation of net income and the number of shares used in
computing basic and diluted income per share.  Basic income per share is
determined using the weighted average shares of common stock outstanding during
the period.  Diluted income per share is determined using the weighted
average shares of common stock outstanding during the period and assumes all
potentially dilutive securities were converted into common shares at the
earliest date possible.  For the
      Year Ended December 31,(Amounts in thousands, except share and per
      share amounts)
    2010
    
    2009
    
    2008Net income attributable to common
      shareholders – basic and diluted
    $
    66,429
    
    $
    132,190
    
    $
    76,288Weighted average shares outstanding –
      basic
    
    5,105,936
    
    
    5,103,790
    
    
    5,067,426Dilutive effect of stock
options
    
    -
    
    
    1,580
    
    
    31,103Weighted average shares outstanding –
      diluted
    
    5,105,936
    
    
    5,105,370
    
    
    5,098,529Net income per common share – basic
    $
    13.01
    
    $
    25.90
    
    $
    15.05Net income per common share – diluted
    $
    13.01
    
    $
    25.89
    
    $
    14.96
 54


---



ALEXANDER’S,
INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)  13.  SUMMARY OF QUARTERLY RESULTS
(UNAUDITED)  Net IncomeAttributable to
    
    Income PerCommon
    
    Common
      Share(1)(Amounts in thousands, except per share
      amounts)
    Revenues
    
    Shareholders
    
    Basic
    
    Diluted2010December 31
    $
    62,250
    
    $
    17,891
    
    $
    3.50
    
    $
    3.50September 30
    
    61,390
    
    
    17,875
    
    
    3.50
    
    
    3.50June 30
    
    59,166
    
    
    15,549
    
    
    3.05
    
    
    3.05March 31
    
    58,544
    
    
    15,114
    
    
    2.96
    
    
    2.962009December 31
    $
    57,154
    
    $
    15,102
    
    $
    2.96
    
    $
    2.96September 30
    
    58,410
    
    
    58,029
    
    
    11.37
    
    
    11.37June 30
    
    54,875
    
    
    13,005
    
    
    2.55
    
    
    2.55March 31
    
    53,090
    
    
    46,054
    
    
    9.04
    
    
    9.03_______________________(1)
    The total for the year may differ from the
      sum of the quarters as a result of weighting.
 55


---



ITEM 9.      changes in
and disagreements with accountants on accounting and financial
disclosure None.  ITEM 9a.  controls and
procedures (a) Disclosure
Controls and Procedures – Our management, with the participation of our Chief
Executive Officer and Chief Financial Officer, have evaluated the effectiveness
of our disclosure controls and procedures (as such term is defined in Rules
13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended)
as of the end of the period covered by this Annual Report on Form 10-K. 
Based on such evaluation, our Chief Executive Officer and Chief Financial
Officer have concluded that, as of the end of such period, our disclosure
controls and procedures are effective. 56


---



MANAGEMENT’S
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING  The management
of Alexander’s, Inc., together with its consolidated subsidiaries (the
“Company”), is responsible for establishing and maintaining adequate internal
control over financial reporting.  The Company’s internal control over
financial reporting is a process designed under the supervision of the Company’s
principal executive and principal financial officers to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of the Company’s financial statements for external reporting purposes in
accordance with accounting principles generally accepted in the United States of
America.  As of December
31, 2010, management conducted an assessment of the effectiveness of the
Company’s internal control over financial reporting based on the framework
established inInternal Control – Integrated
Frameworkissued by the Committee of Sponsoring
Organizations of the Treadway Commission.  Based on this assessment,
management has determined that the Company’s internal control over financial
reporting as of December 31, 2010 is effective.  The Company’s
internal control over financial reporting includes policies and procedures that
pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect transactions and dispositions of assets; provide reasonable
assurances that transactions are recorded as necessary to permit preparation of
financial statements in accordance with accounting principles generally accepted
in the United States of America, and that receipts and expenditures are being
made only in accordance with authorizations of management and the directors of
the Company; and provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the Company’s
assets that could have a material effect on the Company’s financial
statements.  The
effectiveness of the Company’s internal control over financial reporting as of
December 31, 2010 has been audited by Deloitte & Touche LLP, an independent
registered public accounting firm, as stated in their report appearing on page
58 of this Annual Report on Form 10-K, which expresses an unqualified opinion on
the effectiveness of the Company’s internal control over financial reporting as
of December 31, 2010.    57


---



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM  To the Board of Directors and Stockholders Alexander’s, Inc. Paramus, New Jersey  We have audited the internal control over financial
reporting of Alexander’s, Inc. and subsidiaries (the “Company”) as of December
31, 2010, based on criteria established inInternal Control—Integrated
Frameworkissued by the Committee of Sponsoring
Organizations of the Treadway Commission.  The Company’s management is
responsible for maintaining effective internal control over financial reporting
and for its assessment of the effectiveness of internal control over financial
reporting, included in the accompanying Management Report on Internal Control
over Financial Reporting.  Our responsibility is to express an opinion on
the Company’s internal control over financial reporting based on our
audit.  We conducted our audit in accordance with the
standards of the Public Company Accounting Oversight Board (United
States).  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over
financial reporting was maintained in all material respects.  Our audit
included obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, testing and
evaluating the design and operating effectiveness of internal control based on
the assessed risk, and performing such other procedures as we considered
necessary in the circumstances.  We believe that our audit provides a
reasonable basis for our opinion.  A company’s internal control over financial
reporting is a process designed by, or under the supervision of, the company’s
principal executive and principal financial officers, or persons performing
similar functions, and effected by the company’s board of directors, management,
and other personnel to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles.  A
company’s internal control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a
material effect on the financial statements.  Because of the inherent limitations of internal
control over financial reporting, including the possibility of collusion or
improper management override of controls, material misstatements due to error or
fraud may not be prevented or detected on a timely basis.  Also,
projections of any evaluation of the effectiveness of the internal control over
financial reporting to future periods are subject to the risk that the controls
may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.  In our opinion, the Company maintained, in all
material respects, effective internal control over financial reporting as of
December 31, 2010, based on the criteria established inInternal Control—Integrated
Frameworkissued by the Committee of Sponsoring
Organizations of the Treadway Commission.  We have also audited, in accordance with the
standards of the Public Company Accounting Oversight Board (United States), the
consolidated financial statements and financial statement schedules as of and
for the year ended December 31, 2010 of the Company and our report dated
February 22, 2011 expressed an unqualified opinion on those financial statements
and financial statement schedules.   /s/ DELOITTE & TOUCHE LLP  Parsippany, New Jersey February22, 2011 58


---



ITEM 9b.  other information None.     PART III  ITEM 10.   directors, executive officers
and corporate governance Information
relating to our directors will be contained in a definitive Proxy Statement
involving the election of directors pursuant to Regulation 14A under the
Securities Exchange Act of 1934, as amended.  We will file the Proxy
Statement with the Securities and Exchange Commission no later than 120 days
after December 31, 2010.  Such information is incorporated by reference
herein.  Also incorporated herein by reference is the information under the
caption “Section 16(a) Beneficial Ownership Reporting Compliance” of the Proxy
Statement.  The following is
a list of the names, ages, principal occupations and positions with us of our
executive officers and the positions held by such officers during the past five
years.  PRINCIPAL
      OCCUPATION, POSITION AND OFFICEName
    
    Age
    
    (Current
      and during past five years with the Company unless otherwise
      stated)Steven Roth
    
    69
    
    
    Chairman
      of the Board of Directors since May 2004 and Chief Executive Officer since
      March 1995; Chairman of the Board of Vornado Realty Trust since May 1989;
      Chief Executive Officer of Vornado Realty Trust from May 1989 through May
      2009;  a Trustee of Vornado Realty Trust since 1979; and Managing
      General Partner of Interstate Properties.Michael D. Fascitelli
    
    54
    
    
    President
      since August 2000; Director of the Company since December 1996; Chief
      Executive Officer of Vornado Realty Trust since May 2009 and President and
      Trustee since December 1996; Partner at Goldman Sachs & Co., in charge
      of its real estate practice, from December 1992 to December 1996; and,
      prior thereto, Vice President at Goldman Sachs & Co.Joseph Macnow
    
    65
    
    
    Executive
      Vice President and Chief Financial Officer since June 2002; Executive Vice
      President – Finance and Administration from March 2001 to June 2002; Vice
      President and Chief Financial Officer from August 1995 to March 2001;
      Executive Vice President – Finance and Administration of Vornado Realty
      Trust since January 1998 and Chief Financial Officer of Vornado Realty
      Trust since March 2001; and Vice President and Chief Financial Officer of
      Vornado Realty Trust from 1985 to January 1998.
  We have a code
of business conduct and ethics that applies to our Chief Executive Officer and
Executive Vice President and Chief Financial Officer, among others.  The
code is posted on our website at www.alx-inc.com.  We intend to satisfy our
disclosure obligation regarding amendments and waivers of this code applicable
to our Chief Executive Officer and Executive Vice President and Chief Financial
Officer by posting such information on our website. 59


---



ITEM 11.   executive
compensation Information
relating to executive compensation will be contained in the Proxy Statement
referred to in “Item 10.  Directors, Executive Officers and Corporate
Governance” of this Annual Report on Form 10-K.  Such information is
incorporated by reference herein.    ITEM 12.   security ownership of certain
beneficial owners and management and related stockholder matters Information
relating to security ownership of certain beneficial owners and management and
related stockholder matters, except as set forth below, will be contained in the
Proxy Statement referred to in “Item 10.  Directors, Executive Officers and
Corporate Governance” of this Annual Report on Form 10-K.  Such information
is incorporated by reference herein.  Equity
Compensation Plan Information  The following
table provides information as of December 31, 2010, regarding our equity
compensation.  Number of
      securities(a)
    
    
    
    
    remaining
      available forNumber of
      securities
    
    
    
    
    future
      issuance underto be
      issued upon
    
    Weighted-average
    
    equity
      compensationexercise
      of
    
    exercise
      price of
    
    plans
      (excludingoutstanding options,
    
    outstanding options,
    
    securities
      reflected inPlan
      Category
    
    warrants
      and rights
    
    warrants
      and rights
    
    column
      (a))Equity compensation plans approved by
      security holders
    
    N/A
    
    $
    N/A
    
    895,000Equity compensation plans not approved by
      security holders
    
    N/A
    
    
    N/A
    
    N/ATotal
    
    N/A
    
    $
    N/A
    
    895,000
    ITEM
13.      CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE Information
relating to certain relationships and related transactions and director
independence will be contained in the Proxy Statement referred to in “Item
10.  Directors, Executive Officers and Corporate Governance” of this Annual
Report on Form 10-K.  Such information is incorporated by reference
herein.   ITEM
14.      PRINCIPAL ACCOUNTING FEES AND
SERVICES Information
relating to principal accounting fees and services will be contained in the
Proxy Statement referred to in “Item 10.  Directors, Executive Officers and
Corporate Governance” of this Annual Report on Form 10-K.  Such information
is incorporated by reference herein. 60


---



PART IV  ITEM
15.      EXHIBITS, FINANCIAL STATEMENT
SCHEDULES  (a)        The
following documents are filed as part of this Annual Report on Form
10-K.  1.     The consolidated
financial statements are set forth in Item 8 of this Annual Report on Form
10-K.  2.     The following financial
statement schedules should be read in conjunction with the financial statements
included in Item 8 of this Annual Report on Form 10-K.  Pages in
      thisAnnual
      Reporton Form
      10-KSchedule II – Valuation and Qualifying
      Accounts – years endedDecember 31, 2010, 2009 and
2008
    63Schedule III – Real Estate and Accumulated
      Depreciation as ofDecember 31, 2010, 2009 and
2008
    64
   All other financial statement schedules are omitted
because they are not applicable, not required, or the information is included
elsewhere in the consolidated financial statements or the notes
thereto.  3.     The following exhibits
listed on the Exhibit Index are filed with this Annual Report on Form
10-K.  ExhibitNo.21
    
    
    Subsidiaries of Registrant23
    
    
    Consent of Independent Registered Public
      Accounting Firm31.1
    
    
    Rule 13a-14(a) Certification of the Chief
      Executive Officer31.2
    
    
    Rule 13a-14(a) Certification of the Chief
      Financial Officer32.1
    
    
    Section 1350 Certification of the Chief
      Executive Officer32.2
    
    
    Section 1350 Certification of the Chief
      Financial Officer
 61


---



SIGNATURES  Pursuant to the
requirements of Section 13 or 15(d) 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:  February 22, 2011
    By:
    
    /s/ Joseph MacnowJoseph Macnow, Executive Vice Presidentand Chief Financial Officer
  Pursuant to the
requirements of the Securities Exchange Act of 1934, this report has been signed
below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.  Signature
    
    Title
    
    DateBy:
    /s/Steven Roth
    
    Chairman of the Board of Directors
    
    February 22, 2011(Steven Roth)
    
    
    (Principal Executive Officer)By:
    /s/Michael D. Fascitelli
    
    President and Director
    
    February 22, 2011(Michael D. Fascitelli)By:
    /s/Joseph Macnow
    
    Executive Vice President and
    
    February 22, 2011(Joseph Macnow)
    
    
    Chief Financial Officer(Principal Financial and Accounting
      Officer)February 22, 2011By:
    /s/Thomas R. DiBenedetto
    
    Director(Thomas R. DiBenedetto)February 22, 2011By:
    /s/David Mandelbaum
    
    Director(David Mandelbaum)February 22, 2011By:
    /s/Arthur Sonnenblick
    
    Director(Arthur Sonnenblick)February 22, 2011By:
    /s/Neil Underberg
    
    Director(Neil Underberg)February 22, 2011By:
    /s/Richard R. West
    
    Director(Richard R. West)February 22, 2011By:
    /s/Russell B. Wight Jr.
    
    Director(Russell B. Wight Jr)
 62


---



ALEXANDER’S, INC. AND
      SUBSIDIARIESSCHEDULE
      IIVALUATION
      AND QUALIFYING ACCOUNTS(Amounts
      in thousands)Column
      A
    
    Column
      B
    
    Column
      C
    
    Column
      D
    
    Column
      EAdditions:
    
    Deductions:Balance at
    
    Charged
    
    Uncollectible
    
    BalanceBeginning
    
    Against
    
    Accounts
    
    at
      EndDescription
    
    of
      Year
    
    Operations
    
    Written
      Off
    
    of
      YearAllowance for doubtful
      accounts:Year Ended December 31, 2010
    
    $
    1,736
    
    $
    (22)
    
    $
    (667)
    
    $
    1,047Year Ended December 31, 2009
    
    $
    1,357
    
    $
    540
    
    $
    (161)
    
    $
    1,736Year Ended December 31, 2008
    
    $
    667
    
    $
    910
    
    $
    (220)
    
    $
    1,357
 63


---



ALEXANDER’S, INC. AND SUBSIDIARIESSCHEDULE III-REAL ESTATE AND ACCUMULATED DEPRECIATIONDECEMBER 31,  2010(Amounts in thousands)COLUMN A

   COLUMN B

   

   COLUMN C

   

   COLUMN D

   

   COLUMN E

   

   COLUMN F

   

   COLUMN G

   COLUMN H

   COLUMN IGross Amount at WhichInitial Cost to Company(1)

   

   

   

   

   Carried at Close of Period

   

   

   

   

   

   

   

   

   DepreciationBuilding,

   

   Costs

   

   

   

   

   Building,

   

   

   

   

   

   

   

   Accumulated

   

   

   

   

   in LatestLeaseholds

   

   Capitalized

   

   

   

   

   Leaseholds

   

   

   

   

   

   

   

   Depreciation

   

   

   

   

   Incomeand Leasehold

   

   Subsequent

   

   

   

   

   and Leasehold

   

   Construction

   

   

   

   

   and

   

   Date of

   Date

   

   StatementDescription

   Encumbrances

   

   Land

   

   Improvements

   

   to Acquisition(2)

   

   Land

   

   Improvements

   

   In Progress

   

   **Total**(2)

   

   Amortization

   

   Construction

   Acquired(1)

   

   is ComputedCommercial Property:New York, NYRego Park I

   $

   78,246

   

   $

   1,647

   

   $

   8,953

   

   $

   47,440

   

   $

   1,647

   

   $

   56,381

   

   $

   12

   

   $

   58,040

   

   $

   21,438

   

   1959

   

   1992

   

   

   5-39 yearsRego Park II

   

   277,200

   

   

   3,127

   

   

   1,467

   

   

   368,034

   

   

   3,127

   

   

   329,837

   

   

   39,664

   

   

   372,628

   

   

   11,510

   

   2009

   

   1992

   

   

   5-40 yearsRego Park III

   

   

   

   

   779

   

   

   -

   

   

   826

   

   

   779

   

   

   -

   

   

   825

   

   

   1,604

   

   

   -

   

   N/A

   

   1992

   

   

   26 yearsFlushing

   

   -

   

   

   -

   

   

   1,660

   

   

   (107)

   

   

   -

   

   

   1,553

   

   

   -

   

   

   1,553

   

   

   554

   

   1975 (3)

   

   1992

   

   

   N/ALexington Avenue

   

   671,751

   

   

   14,432

   

   

   12,355

   

   

   424,779

   

   

   27,498

   

   

   424,034

   

   

   34

   

   

   451,566

   

   

   79,264

   

   2003

   

   1992

   

   

   5-39 yearsKings Plaza RegionalShopping Center

   

   151,214

   

   

   497

   

   

   9,542

   

   

   142,940

   

   

   30,002

   

   

   122,977

   

   

   -

   

   

   152,979

   

   

   44,466

   

   1970

   

   1992

   

   

   8-50 yearsParamus, NJ

   

   68,000

   

   

   1,441

   

   

   -

   

   

   10,313

   

   

   11,754

   

   

   -

   

   

   -

   

   

   11,754

   

   

   -

   

   N/A

   

   1992

   

   

   N/AOther Properties

   

   -

   

   

   167

   

   

   1,804

   

   

   (1,804)

   

   

   167

   

   

   -

   

   

   -

   

   

   167

   

   

   -

   

   N/A

   

   1992

   

   

   N/ATOTAL

   $

   1,246,411

   

   $

   22,090

   

   $

   35,781

   

   $

   992,421

   

   $

   74,974

   

   $

   934,782

   

   $

   40,535

   

   $

   1,050,291

   

   $

   157,232__________________________(1)

   Initial cost is as of May 15, 1992 (the date on which the Company commenced its real estate operations).(2)

   The net basis of the Company’s assets and liabilities for tax purposes is approximately $197,991,000 lower than the amount reported for financial statement purposes.(3)

   This date represents the lease acquisition date.
 64


---



ALEXANDER’S, INC. AND
      SUBSIDIARIESSCHEDULE
      III   REAL ESTATE AND ACCUMULATED
  DEPRECIATION(Amounts
      in thousands)December
      31,2010
    
    2009
    
    2008REAL ESTATE:Balance at beginning of period
    
    $
    1,025,234
    
    $
    967,975
    
    $
    835,081Additions (deletions) during the
      period:Land
    
    
    -
    
    
    -
    
    
    5,519Buildings and leasehold
      improvements
    
    
    102,402
    
    
    238,119
    
    
    5,043Development and construction in
      progress
    
    
    (76,964)
    
    
    (177,389)
    
    
    123,0791,050,672
    
    
    1,028,705
    
    
    968,722Less: Fully depreciated assets
    
    
    (381)
    
    
    (3,471)
    
    
    (747)Balance at end of period
    
    $
    1,050,291
    
    $
    1,025,234
    
    $
    967,975ACCUMULATED DEPRECIATION:Balance at beginning of period
    
    $
    132,386
    
    $
    114,235
    
    $
    96,183Additions charged to operating
      expenses
    
    
    25,227
    
    
    21,622
    
    
    18,799157,613
    
    
    135,857
    
    
    114,982Less: Fully depreciated assets
    
    
    (381)
    
    
    (3,471)
    
    
    (747)Balance at end of period
    
    $
    157,232
    
    $
    132,386
    
    $
    114,235
 65


---



EXHIBIT
      INDEXExhibitNo.3.1
    
    -
    Amended
      and Restated Certificate of Incorporation. Incorporated herein by
      reference from Exhibit 3.1 to the registrant’s Registration Statement on
      Form S-3 filed on September 20, 1995
    *3.2
    
    -
    By-laws,
      as amended. Incorporated herein by reference from Exhibit 10.1 to the
      registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30,
      2000
    *10.1
    
    -
    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 Annual Report on Form 10-K for the
      fiscal year ended July 25, 1992
    *10.2
    
    -
    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 Annual Report Form
      10-K for the year ended December 31, 1994
    *10.3
    
    -
    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 quarter ended June 30, 2001, filed on August 2,
      2001
    *10.4
    
    -
    Amended
      and Restated Consolidated Mortgage and Security Agreement dated as of
      May 31, 2001 among Alexander’s Kings Plaza LLC as mortgagor,
      Alexander’s of King LLC as mortgagor and Kings Parking LLC 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 quarter ended June 30,
      2001, filed on August 2, 2001
    *10.5
    
    -
    Amended,
      Restated and Consolidated Promissory Note, dated as of May 31, 2001 by and
      between Alexander’s Kings Plaza LLC, Alexander’s of Kings LLC, and
      Kings Parking LLC 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
      quarter ended June 30, 2001, filed on August 2, 2001
    *10.6
    
    -
    Cash
      Management Agreement dated as of May 31, 2001 by and between Alexander’s
      Kings Plaza LLC, Alexander’s of Kings LLC, and Kings Parking LLC
      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 quarter ended June
      30, 2001, filed on August 2, 2001
    *___________________*
    
    Incorporated by reference.
 66


---



10.7
    
    -
    Note
      modification and Severance Agreement dated as of November 26, 2001,
      between Alexander’s Kings Plaza LLC, Alexander’s of Kings LLC, and Kings
      Parking LLC  collectively borrower and JP Morgan Chase Bank of New
      York, lender. Incorporated herein by reference from Exhibit 10(v)(A)(4) to
      the registrant’s Annual Report on Form 10 K for the year ended December
      31, 2001, filed on March 13, 2002
    *10.8
    
    -
    Loan
      Agreement dated as of October 2, 2001 by and between ALX of Paramus LLC as
      borrower, and SVENSKA HANDELSBANKEN AB (publ), as lender. Incorporated
      herein by reference from Exhibit 10(v)(C)(1) to the registrant’s Annual
      Report on Form 10-K for the year ended December 31, 2001, filed on March
      13, 2002
    *10.9
    
    -
    Mortgage,
      Security Agreement and Fixture Financing Statement dated as of October 2,
      2001 by and between ALX of Paramus LLC as borrower, and SVENSKA
      HANDELSBANKEN AB (publ), as lender. Incorporated herein by reference from
      Exhibit 10(v)(C)(2) to the registrant’s Annual Report on Form 10-K for the
      year ended December 31, 2001, filed on March 13, 2002
    *10.10
    
    -
    Environmental undertaking letter dated as of
      October 2, 2001 by and between ALX of Paramus LLC, as borrower, and
      SVENSKA HANDELSBANKEN AB (publ), as lender. Incorporated herein by
      reference from Exhibit 10(v)(C)(3) to the registrant’s Annual Report on
      Form 10-K for the fiscal year ended December 31, 2001, filed on March 13,
      2002
    *10.11
    
    -
    Lease
      dated as of October 2, 2001 by and between ALX of Paramus LLC, as
      Landlord, and IKEA Property, Inc. as Tenant. Incorporated herein by
      reference from Exhibit 10(v)(C)(4) to the registrant’s Annual Report on
      Form 10-K for the year ended December 31, 2001, filed on March 13, 2002
    *10.12
    
    -
    First
      Amendment to Real Estate Retention Agreement, dated as of July 3, 2002, by
      and between Alexander’s, Inc. and Vornado Realty, L.P. Incorporated herein
      by reference from Exhibit 10(i)(E)(3) to the registrant’s Quarterly Report
      on Form 10-Q for the quarter ended June 30, 2002, filed on August 7,
      2002
    *10.13
    
    -
    59th
      Street Real Estate Retention Agreement, dated as of July 3, 2002, by and
      between Vornado Realty, L.P., 731 Residential LLC and 731 Commercial LLC.
      Incorporated herein by reference from Exhibit 10(i)(E)(4) to the
      registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30,
      2002, filed on August 7, 2002
    *10.14
    
    -
    Amended
      and Restated Management and Development Agreement, dated as of July 3,
      2002, by and between Alexander’s, Inc., the subsidiaries party thereto and
      Vornado Management Corp. Incorporated herein by reference from Exhibit
      10(i)(F)(1) to the registrant’s Quarterly Report on Form 10-Q for the
      quarter ended June 30, 2002, filed on August 7, 2002
    *10.15
    
    -
    Kings
      Plaza Management Agreement, dated as of May 31, 2001, by and between
      Alexander’s Kings Plaza LLC and Vornado Management Corp. Incorporated
      herein by the quarter ended June 30, 2002, filed on August 7,
      2002
    *10.16
    
    -
    Limited
      Liability Company Operating Agreement of 731 Residential LLC, dated as of
      July 3, 2002, among 731 Residential Holding LLC, as the sole member,
      Domenic A. Borriello, as an Independent Manager and Kim Lutthang, as an
      Independent Manager. Incorporated herein by reference from Exhibit
      10(i)(A)(1) to the registrant’s Quarterly Report on Form 10-Q for the
      quarter ended June 30, 2002, filed on August 7, 2002
    *___________________*
    
    Incorporated by reference.
 67


---



10.17
    
    -
    Limited
      Liability Company Operating Agreement of 731 Commercial LLC, dated as of
      July 3, 2002, among 731 Commercial Holding LLC, as the sole member,
      Domenic A. Borriello, as an Independent Manager and Kim Lutthang, as an
      Independent Manager. Incorporated herein by reference from Exhibit
      10(i)(A)(2) to the registrant’s Quarterly Report on Form 10-Q for the
      quarter ended June 30, 2002, filed on August 7, 2002
    *10.18
    
    -
    Reimbursement Agreement, dated as of July 3,
      2002, by and between Alexander’s, Inc., 731 Commercial LLC, 731
      Residential LLC and Vornado Realty, L.P. Incorporated herein by reference
      from Exhibit 10(i)(C)(8) to the registrant’s Quarterly Report on Form 10-Q
      for the quarter ended June 30, 2002, filed on August 7, 2002
    *10.19
    
    -
    First
      Amendment of Lease, dated as of April 19, 2002, between Seven Thirty One
      Limited Partnership, landlord and Bloomberg L.P., tenant. Incorporated
      herein by reference from Exhibit 10(v)(B)(2) to the registrant’s Quarterly
      Report on Form 10-Q for the fiscal quarter ended June 30, 2002, filed on
      August 7, 2002
    *10.20
    
    -
    Loan and
      Security Agreement, dated as of February 13, 2004, between 731 Office One
      LLC, as Borrower and German American Capital Corporation, as Lender.
      Incorporated herein by reference from Exhibit 10.20 to the registrant’s
      Annual Report on Form 10-K for the year ended December 31, 2003, filed on
      March 2, 2004
    *10.21
    
    -
    Amended,
      Restated and Consolidated Mortgage, Security Agreement, Financing
      Statement and Assignment of Leases, Rent and Security Deposits by and
      between 731 Office One LLC as Borrower and German American Capital
      Corporation as Lender, dated as of February 13, 2004. Incorporated herein
      by reference from Exhibit 10.21 to the registrant’s Annual Report on Form
      10-K for the year ended December 31, 2003, filed on March 2,
      2004
    *10.22
    
    -
    Amended,
      Restated and Consolidated Note, dated as of February 13, 2004, by 731
      Office One LLC in favor of German American Capital Corporation.
      Incorporated herein by reference from Exhibit 10.22 to the registrant’s
      Annual Report on Form 10-K for the year ended December 31, 2003, filed on
      March 2, 2004
    *10.23
    
    -
    Assignment of Leases, Rents and Security
      Deposits from 731 Office One LLC to German American Capital Corporation,
      dated as of February 13, 2004. Incorporated herein by reference from
      Exhibit 10.23 to the registrant’s Annual Report on Form 10-K for the year
      ended December 31, 2003, filed on March 2, 2004
    *10.24
    
    -
    Account
      and Control Agreement, dated as of February 13, 2004, by and among German
      American Capital Corporation as Lender, and 731 Office One LLC as
      Borrower, and JP Morgan Chase as Cash Management Bank. Incorporated herein
      by reference from Exhibit 10.24 to the registrant’s Annual Report on Form
      10-K for the year ended December 31, 2003, filed on March 2,
      2004
    *10.25
    
    -
    Manager’s
      Consent and Subordination of Management Agreement dated February 13, 2004
      by 731 Office One LLC and Alexander’s Management LLC and German American
      Capital Corporation. Incorporated herein by reference from Exhibit 10.25
      to the registrant’s Annual Report on Form 10-K for the year ended December
      31, 2003, filed on March 2, 2004
    *10.26
    
    -
    Note
      Exchange Agreement dated as of February 13, 2004 by and between 731 Office
      One LLC and German American Capital Corporation. Incorporated herein by
      reference from Exhibit 10.26 to the registrant’s Annual Report on Form
      10-K for the year ended December 31, 2003, filed on March 2,
      2004
    *___________________*
    
    Incorporated by reference.
 68


---



10.27
    
    -
    Promissory Note A-1 dated as of February 13,
      2004 and 731 Office One LLC in favor of German American Capital
      Corporation. Incorporated herein by reference from Exhibit 10.27 to the
      registrant’s Annual Report on Form 10-K for the year ended December
      31,  2003, filed on March 2, 2004
    *10.28
    
    -
    Promissory Note A-2 dated as of February 13,
      2004 and 731 Office One LLC in favor of German American Capital
      Corporation. Incorporated herein by reference from Exhibit 10.28 to the
      registrant’s Annual Report on Form 10-K for the year ended December 31,
      2003, filed on March 2, 2004
    *10.29
    
    -
    Promissory Note A-3 dated as of February 13,
      2004 and 731 Office One LLC in favor of German American Capital
      Corporation. Incorporated herein by reference from Exhibit 10.29 to the
      registrant’s Annual Report on Form 10-K for the year ended December 31,
      2003, filed on March 2, 2004
    *10.30
    
    -
    Promissory Note A-4 dated as of February 13,
      2004, and 731 Office One LLC in favor of German American Capital
      Corporation. Incorporated herein by reference from Exhibit 10.30 to the
      registrant’s Annual Report on Form 10-K for the year ended December 31,
      2003, filed on March 2, 2004
    *10.31
    
    -
    Promissory Note A-X dated as of February 13,
      2004, and 731 Office One LLC in favor of German American Capital
      Corporation. Incorporated herein by reference from Exhibit 10.31 to the
      registrant’s Annual Report on Form 10-K for the year ended December 31,
      2003, filed on March 2, 2004
    *10.32
    
    -
    Promissory Note B dated as of February 13,
      2004, and 731 Office One LLC in favor of German American Capital
      Corporation. Incorporated herein by reference from Exhibit 10.32 to the
      registrant’s Annual Report on Form 10-K for the year ended December 31,
      2003, filed on March 2, 2004
    *10.33
    
    -
    Guaranty
      of Recourse Obligations dated as of February 13, 2004, by Alexander’s,
      Inc. to and for the benefit of German American Capital Corporation.
      Incorporated herein by reference from Exhibit 10.33 to the registrant’s
      Annual Report on Form 10-K for the year ended December 31, 2003, filed on
      March 2, 2004
    *10.34
    
    -
    Environmental Indemnity dated as of February
      13, 2004, by Alexander’s, Inc. and 731 Office One LLC for the benefit of
      German American Capital Corporation. Incorporated herein by reference from
      Exhibit 10.34 to the registrant’s Annual Report on Form 10-K for the year
      ended December 31, 2003, filed on March 2, 2004
    *10.35
    
    -
    Loan
      Agreement dated as of July 6, 2005, between 731 Retail One LLC, as
      Borrower and Archon Financial, as Lender.  Incorporated herein by
      reference from Exhibit 10.1 to the  registrant’s Current Report on
      Form 8-K, filed on July 12, 2005
    *10.36
    **
    -
    Form of
      Stock Option Agreement between the Company and certain employees.
      Incorporated herein by reference from Exhibit 10.61 to the registrant’s
      Quarterly Report on Form 10-Q for the quarter ended September 30, 2005,
      filed on October 27, 2005
    *10.37
    **
    -
    Form of
      Restricted Stock Option Agreement between the Company and certain
      employees.  Incorporated herein by reference from Exhibit 10.62 to
      the registrant’s Quarterly Report on Form 10-Q for the quarter ended
      September 30, 2005, filed on October 27, 2005
    *___________________*
    
    Incorporated by reference.**
    
    Management contract or compensatory
      agreement.
 69


---



10.38
    **
    -
    Registrant’s 2006 Omnibus Stock Plan dated
      April 4, 2006.  Incorporated herein by reference from Annex B to
      Schedule 14A, filed by the registrant on April 28, 2006
    *10.39
    
    -
    Second
      Amendment to Real Estate Retention Agreement, dated as of January 1, 2007,
      by and between Alexander’s, Inc. and Vornado Realty L.P. 
      Incorporated herein by reference from Exhibit 10.64 to the registrant’s
      Annual Report on Form 10-K for the year ended December 31, 2006, filed on
      February 26, 2007
    *10.40
    
    -
    Amendment
      to 59th Street Real Estate Retention agreement, dated as of January 1,
      2007, by and among Vornado Realty L.P., 731 Retail One LLC, 731 Restaurant
      LLC, 731 Office One LLC and 731 Office Two LLC.  Incorporated herein
      by reference from Exhibit 10.65 to the registrant’s Annual Report on Form
      10-K for the year ended December 31, 2006, filed on February 26,
      2007
    *10.41
    
    -
    Building
      Loan Agreement, dated as of December 21, 2007, among Alexander’s of Rego
      Park II, Inc., as Borrower, PB Capital Corporation, as Lender,
      Norddeutsche Landesbank Girozentrale, New York Branch, as Lender, Wells
      Fargo Bank, National Association, as  Lender, Landesbank
      Baden-Wurttemberg, New York Branch, as Lender, Bank of Ireland,
      Connecticut Branch, as Lender, PB Capital Corporation, as Administrative
      Agent, PB Capital Corporation and Norddeutsche Landesbank Girozentrale,
      New York Branch, as Co-Arrangers. Incorporated herein by reference from
      Exhibit 10.1 to the registrant’s Current Report on Form 8-K, filed on
      December 28, 2007
    *10.42
    
    -
    Project
      Loan Agreement, dated as of December 21, 2007, among Alexander’s of Rego
      Park II, Inc., as Borrower, PB Capital Corporation, as Lender,
      Norddeutsche Landesbank Girozentrale, New York Branch, as Lender, Wells
      Fargo Bank, National Association, as Lender, Landesbank Baden-Wurttemberg,
      New York Branch, as Lender, Bank of Ireland, Connecticut Branch, as
      Lender, PB Capital Corporation, as Administrative Agent, PB Capital
      Corporation and Norddeutsche Landesbank Girozentrale, New York Branch, as
      Co-Arrangers. Incorporated herein by reference from Exhibit 10.2 to the
      registrant’s Current Report on Form 8-K, filed on December 28,
      2007
    *10.43
    
    -
    Series I
      Building Loan Mortgage, Assignment of Leases and Rents and Security
      Agreement, dated as of December 21, 2007, from Alexander’s of Rego Park
      II, Inc., as Mortgagor, to PB Capital Corporation, as Administrative Agent
      for the Lenders. Incorporated herein by reference from Exhibit 10.3 to the
      registrant’s Current Report on Form 8-K, filed on December 28,
      2007
    *10.44
    
    -
    Series II
      Building Loan Mortgage, Assignment of Leases and Rents and Security
      Agreement, dated as of December 21, 2007, from Alexander’s of Rego Park
      II, Inc., as Mortgagor, to PB Capital Corporation, as Administrative Agent
      for the Lenders. Incorporated herein by reference from Exhibit 10.4 to the
      registrant’s Current Report on Form 8-K, filed on December 28,
      2007
    *10.45
    
    -
    Series I
      Project Loan Mortgage, Assignment of Leases and Rents and Security
      Agreement, dated as of December 21, 2007, from Alexander’s of Rego Park
      II, Inc., as Mortgagor, to PB Capital Corporation, as Administrative Agent
      for the Lenders. Incorporated herein by reference from Exhibit 10.5 to the
      registrants Current Report on Form 8-K, filed on December 31,
      2007
    *10.46
    
    -
    Series II
      Project Loan Mortgage, Assignment of Leases and Rents and Security
      Agreement, dated as of December 21, 2007, from Alexander’s of Rego Park
      II, Inc., as Mortgagor, to PB Capital Corporation, as Administrative Agent
      for the Lenders. Incorporated herein by reference from Exhibit 10.6 to the
      registrant’s Current Report on Form 8-K, filed on December 28,
      2007
    *___________________*
    
    Incorporated by reference.**
    
    Management contract or compensatory
      agreement.
 70


---



10.47
    
    -
    Guaranty
      of Completion, dated as of December 21, 2007, executed by Alexander’s,
      Inc. for the benefit of PB Capital Corporation, as Administrative Agent
      for itself and the other Lenders Incorporated herein by reference from
      Exhibit 10.7 to the registrant’s Current Report on Form 8-K, filed on
      December 28, 2007
    *10.48
    
    -
    Guaranty
      of Payment, dated as of December 21, 2007, executed by Alexander’s, Inc.
      for the benefit of PB Capital Corporation, as Administrative Agent for
      itself and the other Lenders. Incorporated herein by reference from
      Exhibit 10.8 to the registrant’s Current Report on Form 8-K, filed on
      December 28, 2007
    *10.49
    
    -
    First
      Amendment to Amended and Restated Management and Development Agreement,
      dated as of July 6, 2005, by and between Alexander’s, Inc., the
      subsidiaries party thereto and Vornado Management Corp.  Incorporated
      herein by reference from Exhibit 10.52 to the registrant’s Annual Report
      on Form 10-K, for the year ended December 31, 2007, filed on February 25,
      2008
    *10.50
    
    -
    Second
      Amendment to Amended and Restated Management and Development Agreement,
      dated as of December 20, 2007, by and between Alexander’s, Inc., the
      subsidiaries party thereto and Vornado Management Corp.  Incorporated
      herein by reference from Exhibit 10.53 to the registrant’s Annual Report
      on Form 10-K, for the year  ended December 31, 2007, filed on
      February 25, 2008
    *10.51
    
    -
    Rego II
      Management and Development Agreement, dated as of December 20, 2007, by
      and between Alexander’s of Rego Park II, Inc., and Vornado Realty L.P.
      Incorporated herein by reference from Exhibit 10.54 to the registrant’s
      Annual Report on Form 10-K, for the year ended December 31, 2007, filed on
      February 25, 2008
    *10.52
    
    -
    Third
      Amendment to Real Estate Retention Agreement, dated as of December 20,
      2007, by and between Alexander’s, Inc., and Vornado Realty L.P. 
      Incorporated herein by reference from Exhibit 10.55 to the registrant’s
      Annual Report on Form 10-K, for the year  ended December 31, 2007,
      filed on February 25, 2008
    *10.53
    
    -
    Rego II
      Real Estate Retention Agreement, dated as of December 20, 2007, by and
      between Alexander’s, Inc., and Vornado Realty L.P.  Incorporated
      herein by reference from Exhibit 10.56 to the registrant’s Annual Report
      on Form 10-K, for the year ended December 31, 2007 filed on February 25,
      2008
    *10.54
    
    -
    Loan
      Agreement dated as of March 10, 2009 between Alexander’s Rego Park
      Shopping Center Inc., as Borrower and U.S. Bank National Association, as
      Lender.  Incorporated herein by reference from Exhibit 10.55 to the
      registrant’s Quarterly Report on for 10-Q for the quarter ended March 31,
      2009, filed on May 4, 2009
    *10.55
    
    -
    Amended
      and Restated Mortgage, Security Agreement, Fixture Filing and Assignment
      of Leases and Rentals by and between Alexander’s Rego Shopping Center,
      Inc. as Borrower and U.S. Bank National Association as Lender, dated as of
      March 10, 2009.  Incorporated herein by reference from Exhibit 10.56
      to the registrant’s Quarterly Report on for 10-Q for the quarter ended
      March 31, 2009, filed on May 4, 2009
    *10.56
    
    -
    Amended
      and Restated Promissory Note dated as of March 10, 2009, by Alexander’s
      Rego Shopping Center Inc., in favor of U.S. Bank National
      Association.  Incorporated herein by reference from Exhibit 10.57 to
      the registrant’s Quarterly Report on for 10-Q for the quarter ended March
      31, 2009, filed on May 4, 2009
    *10.57
    
    -
    Cash
      Pledge Agreement dated as of March 10, 2009, executed by Alexander’s Rego
      Shopping Center Inc. to and for the benefit of U.S. Bank National
      Association.  Incorporated herein by reference from Exhibit 10.58 to
      the registrant’s Quarterly Report on for 10-Q for the quarter ended March
      31, 2009, filed on May 4, 2009
    *___________________*
    
    Incorporated by reference.
 71


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10.58
    
    -
    Lease
      dated as of February 7, 2005, by and between 731 Office One LLC, as
      Landlord, and Citibank, N.A., as Tenant.  Incorporated herein by
      reference from Exhibit 10.59 to the registrant’s Quarterly Report on for
      10-Q for the quarter ended March 31, 2009, filed on May 4,
    2009
    *10.59
    
    -
    Assignment and Assumption and Consent
      Agreement, dated as of March 25, 2009, by and between 731 Office One LLC,
      as Landlord, Citicorp North America, Inc., as Assignor, and Bloomberg
      L.P., as Assignee.  Incorporated herein by reference from Exhibit
      10.60 to the registrant’s Quarterly Report on for 10-Q for the quarter
      ended March 31, 2009, filed on May 4, 2009
    *21
    
    -
    Subsidiaries of Registrant23
    
    -
    Consent of Independent Registered Public
      Accounting Firm31.1
    
    -
    Rule 13a-14 (a) Certification of the Chief
      Executive Officer31.2
    
    -
    Rule 13a-14 (a) Certification of the Chief
      Financial Officer32.1
    
    -
    Section 1350 Certification of the Chief
      Executive Officer32.2
    
    -
    Section 1350 Certification of the Chief
      Financial Officer___________________*
    
    Incorporated by reference.
  72


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