<PAGE>
                                                        EXHIBIT INDEX ON PAGE 42

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                                      1934

                  For the fiscal year ended: DECEMBER 31, 2001

                         Commission file number: 1-6064

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

             DELAWARE                                        51-0100517
       (State or other jurisdiction of                    (I.R.S. Employer
       incorporation or organization)                   Identification No.)

        888 SEVENTH AVENUE, NEW YORK, NEW YORK               10019
       (Address of principal executive offices)           (Zip Code)

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

Securities registered pursuant to Section 12(b) of the Act:

<TABLE>
<CAPTION>
     Title of each class                                      Name of each exchange on which registered
     -------------------                                      -----------------------------------------

<S>                                                           <C>
Common Stock, $1 par value                                             New York Stock Exchange
</TABLE>

Securities registered pursuant to Section 12(g) of the Act:  NONE


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.
YES  X        NO
    ---          -----

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 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. [X]

The aggregate market value of the common stock held by non-affiliates of the
Registrant (based upon the closing price of the stock on the New York Stock
Exchange on February 22, 2002) was approximately $113,257,000.

5,000,850 shares of the Registrant's common stock, par value $1 per share, were
outstanding as of February 22, 2002.

                       Documents Incorporated by Reference

Part III: Proxy Statement for Annual Meeting of Shareholders to be held May 29,
2002
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                          Item                                                                    Page
                          ----                                                                    ----

<S>                       <C>         <C>                                                         <C>
   PART I.                1.          Business                                                       3

                          2.          Properties                                                     6

                          3.          Legal Proceedings                                              9

                          4.          Submission of Matters to a Vote of Security Holders            9

                                      Executive Officers of the Company                             10

   PART II.               5.          Market for Registrant's Common
                                      Equity and Related Stockholder Matters                        11

                          6.          Selected Financial Data                                       12

                          7           Management's  Discussion  and  Analysis  of  Financial
                                      Condition and Results of Operations                           13

                          7A.         Quantitative and Qualitative  Disclosures about Market
                                      Risk                                                          18

                          8.          Financial Statements and Supplementary Data                   19

                          9.          Changes in and Disagreements with Accountants
                                      on Accounting and Financial Disclosure                        19


   PART III.              10.         Directors and Executive Officers of the Registrant           36(1)

                          11.         Executive Compensation                                       36(1)

                          12.         Security Ownership of Certain
                                      Beneficial Owners and Management                             36(1)


                          13.         Certain Relationships and Related Transactions               36(1)

   PART IV                14.         Exhibits, Financial Statement
                                      Schedules, and Reports on Form 8-K                            37

   SIGNATURES                                                                                       38
</TABLE>



(1)      These items are omitted because the Registrant will file a definitive
         Proxy Statement pursuant to Regulation 14A involving the election of
         directors with the Securities and Exchange Commission not later than
         120 days after December 31, 2001, which is incorporated by reference.

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

                                      -2-
<PAGE>
PART I
Item 1.  Business

GENERAL

         Alexander's, Inc. (the "Company") is a real estate investment trust
("REIT") engaged in leasing, managing, developing and redeveloping properties.
Alexander's activities are conducted through its manager, Vornado Realty Trust
("Vornado").

         Alexander's has seven properties consisting of:

         Operating properties:

         (i)      the recently renovated Kings Plaza Regional Shopping Center on
                  Flatbush Avenue in Brooklyn, New York, which contains
                  1,100,000 square feet is comprised of a two-level mall
                  containing 470,000 square feet (the "Mall"), a 289,000 square
                  foot department store leased to Sears and another anchor
                  department store owned and operated as a Macy's by Federated
                  Department Stores, Inc. ("Federated");

         (ii)     the Rego Park I property located on Queens Boulevard and 63rd
                  Road in Rego Park, Queens, New York, which contains a 351,000
                  square foot building, which is 100% leased to Sears, Circuit
                  City, Bed Bath & Beyond, Marshalls and Old Navy;

         (iii)    the Paramus property which consists of 30.3 acres of land
                  located at the intersection of Routes 4 and 17 in Paramus, New
                  Jersey which was leased to IKEA Properties, Inc. beginning
                  October 5, 2001.

         (iv)     the Flushing property located at Roosevelt Avenue and Main
                  Street in Flushing, New York, which contains a 177,000 square
                  foot building currently vacant; and

         (v)      the Third Avenue property located at Third Avenue and 152nd
                  Street in the Bronx, New York, which contains a 173,000 square
                  foot building leased to an affiliate of Conway;

         Property under development:

         (vi)     the Lexington Avenue property which comprises the entire
                  square block bounded by Lexington Avenue, East 59th Street,
                  Third Avenue and East 58th Street in Manhattan, New York; and

         Non-operating property to be developed:

         (vii)    the Rego Park II property, which comprises one and one-half
                  square blocks of vacant land adjacent to the Rego Park I
                  property.

         Discussion of Lexington Avenue property under development:

         The development plans at Lexington Avenue currently consist of a
proposed 1.4 million square foot multi-use building comprised of a commercial
portion, which may include a combination of retail stores and offices, and a
residential portion, consisting of condominium units. There can be no assurance
that the residential portion will be built. If the residential portion of the
property is developed, the air rights representing the residential portion would
be held by a taxable REIT subsidiary, as a REIT is not permitted to sell
condominiums without being subject to a 100% excise tax on the gain from the
sale of such condominiums. The funding required for the proposed building will
be in excess of $650,000,000. The Company is exploring various alternatives for
financing the project, including equity, debt, joint ventures and asset sales,
which may involve arrangements with Vornado Realty Trust. For a discussion of
insurance and its possible effect on financing, see the discussion in Item 2 on
page 9.

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

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

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

         Sears accounted for 21%, 21% and 22% of the Company's consolidated
revenues for the years ended December 31, 2001, 2000 and 1999, respectively. No
other tenant accounted for more than 10% of revenues.

         The Company has completed an interior renovation of the Kings Plaza
Regional Shopping Center (the "Center") at a total cost of $33,000,000. The
exterior of the Center is expected to be renovated in 2002 at a cost of
approximately $4,000,000.

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

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

         The Company is a Delaware corporation with its principal executive
office located at 888 Seventh Avenue, New York, New York, 10019, telephone (212)
894-7000.

         Relationship with Vornado Realty Trust ("Vornado")

         Vornado owns 33.1% of the Company's Common Stock at December 31, 2001.
The Company is managed by, and its properties are redeveloped and leased by,
Vornado, pursuant to agreements with a one-year term expiring in March of each
year which are automatically renewable. Vornado is a fully integrated REIT with
significant experience in the ownership, development, leasing, operation and
management of retail and office properties.

         The annual management fee payable by the Company to Vornado is equal to
the sum of (i) $3,000,000, (ii) 3% of the gross income from the Mall, plus (iii)
6% of development costs with minimum guaranteed fees of $750,000 per annum. The
leasing agreement provides for the Company to pay a fee to Vornado equal to (i)
3% of the gross proceeds, as defined, from the sale of an asset and (ii) in the
event of a lease or sublease of an asset, 3% of lease rent for the first ten
years of a lease term, 2% of lease rent for the eleventh through the twentieth
years of a lease term and 1% of lease rent for the twenty-first through
thirtieth year of a lease term, subject to the payment of rents by tenants. Such
amount is payable annually in an amount not to exceed $2,500,000, until the
present value of such installments (calculated at a discount rate of 9% per
annum) equals the amount that would have been paid had it been paid at the time
the transactions which gave rise to the commissions occurred. Pursuant to the
leasing agreement, in the event third party real estate brokers are used, the
fees to Vornado increase by 1% and Vornado is responsible for the fees to the
third party real estate brokers. Under these agreements, the Company incurred
fees of $9,361,000, $6,721,000 and $7,237,000 for the years ended December 31,
2001, 2000 and 1999. At December 31, 2001 the Company owes Vornado $2,249,000
for leasing fees.

         At December 31, 2001, the Company is indebted to Vornado in the amount
of $119,000,000 comprised of (i) $95,000,000, the subordinated tranche of a
$105,000,000 secured financing, and (ii) $24,000,000 under a $50,000,000 secured
line of credit (which carries a 1% unused commitment fee). The interest rate on
the loan and line of credit is 13.74% and the maturity has been extended to
April 15, 2003. The interest rate on the loan and line of credit will reset on
March 15, 2002 and quarterly thereafter, using the same spread to treasuries as
presently exists and a 3.00% floor for treasuries. These loans are secured by
liens on the Company's assets and/or pledges of the stock of subsidiaries owning
the assets and/or guarantees of such subsidiaries and the parent; except the
liens do not cover the Kings Plaza

                                      -4-
<PAGE>
Regional Shopping Center, Paramus and Rego Park I and are subordinate to first
mortgages and a $10,000,000 bank term loan which is included in the $105,000,000
secured financing discussed above.

         Steven Roth is Chief Executive Officer and a director of the Company,
the Managing General Partner of Interstate Properties ("Interstate") and
Chairman of the Board and Chief Executive Officer of Vornado. At December 31,
2001, Mr. Roth, Interstate and the other two general partners of Interestate,
David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the
Company and trustees of Vornado) own, in the aggregate, 27.5% of the outstanding
common stock of the Company, and 15.5% of the outstanding common shares of
beneficial interest of Vornado.

ENVIRONMENTAL MATTERS

       In June 1997, the Kings Plaza Regional Shopping Center (the "Center"),
commissioned an Environmental Study and Contamination Assessment Site
Investigation (the Phase II "Study") to evaluate and delineate environmental
conditions disclosed in a Phase I study. The results of the Study indicate the
presence of petroleum and bis (2-ethylhexyl) phthalate contamination in the soil
and groundwater. The Company has delineated the contamination and has developed
a remediation approach. The New York State Department of Environmental
Conservation ("NYDEC") has approved a portion of the remediation approach. The
Company accrued $2,000,000 in previous years ($1,830,000 has been paid as of
December 31, 2001) for its estimated obligation with respect to the clean up of
the site, which includes costs of (i) remedial investigation, (ii) feasibility
study, (iii) remedial design, (iv) remedial action and (v) professional fees.
Based upon revised estimates, the Company accrued an additional $675,000 in the
second quarter of 2001. If the NYDEC insists on a more extensive remediation
approach, the Company could incur additional obligations.

       The majority of the contamination may have resulted from activities of
third parties; however, the sources of the contamination have not been fully
identified. Although the Company is pursuing claims against any potentially
responsible third parties, there can be no assurance that such parties will be
identified, or if identified, whether these potentially responsible third
parties will be solvent. In addition, the costs associated with pursuing any
potentially responsible parties may be cost prohibitive. The Company has not
recorded an asset as of December 31, 2001 for potential recoveries of
environmental remediation costs from other parties.


COMPETITION

         The Company conducts its real estate operations in the New York
metropolitan area, a highly competitive market. The Company's success depends
upon, among other factors, the trends of the 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, income tax laws, governmental regulations and legislation,
population trends, the market for real estate properties in the New York
metropolitan area, zoning laws and the ability of the Company to lease, sublease
or sell its properties at profitable levels. The Company competes with a large
number of real estate property owners. In addition, although the Company
believes that it will realize significant value from its properties over time,
the Company anticipates that it may take a number of years before all of its
properties generate cash flow at or near anticipated levels. The Company's
success is also subject to its ability to finance its development and to
refinance its debts as they come due.

EMPLOYEES

         The Company currently has one corporate employee and 62 property level
employees.

                                      -5-
<PAGE>
Item 2.  Properties

The following table shows the location, approximate size and leasing status as
of December 31, 2001 of each of the Company's properties, excluding the Fordham
Road property that was sold on January 12, 2001


<TABLE>
<CAPTION>
                                      Approximate      Approximate
                                         Land           Building
                                         Area          Leaseable     Average
                                       in Square         Square      Annualized              Significant                   Lease
                                         Feet            Feet/       Base Rent                Tenants           Square   Expiration/
                                       ("SF")or        Number of     Per Sq.     Percent    (30,000 square      Footage    Option
Property                   Ownership    Acreage          Floors       Foot       Leased      feet or more)      Leased   Expiration
--------                   ---------   ----------       ------     ------------  ------    ----------------     ------    ----------
OPERATING PROPERTIES

<S>                        <C>        <C>             <C>          <C>           <C>      <C>                  <C>       <C>
   Kings Plaza Regional    Owned       24.3 acres     759,000/4      $ 31.93       98%          Sears          289,000   2023/2033
    Shopping Center                                       (1)(2)                          117 Mall tenants     452,000    Various
    Flatbush Avenue
    Brooklyn, New York

   Rego Park I             Owned        4.8 acres     351,000/3        31.12      100           Sears          195,000   2021/2031
    Queens Blvd. &                                       (1)                                Circuit City       50,000       2021
    63rd Rd.                                                                              Bed Bath & Beyond    46,000    2013/2021
    Rego Park, New York                                                                       Marshalls        39,000    2008/2021

   Routes 4 & 17           Owned       30.3 acres        N/A           N/A        100    IKEA Property, Inc.      N/A        2041
   Paramus, New Jersey                                  Ground        Ground                                   Ground
                                                        Lease         Lease                                     Lease

   Roosevelt Avenue &      Leased (3)   44,975 SF     177,000/4          --        0             --                --
    Main Street                                          (1)
    Flushing, New York

   Third Avenue &          Owned        60,451 SF     173,000/4         7.86      100      An affiliate of     173,000      2023
    152nd Street                                                                               Conway
    Bronx, New York

PROPERTY UNDER
DEVELOPMENT
   Square block at East    Owned        84,420 SF         --
    59th Street &
    Lexington Avenue
    New York, New York

NON-OPERATING
PROPERTY TO
BE DEVELOPED
   Rego Park II            Owned        6.6 acres         --
    Queens, New York

                                                     1,460,000
                                                     =========
</TABLE>




                                     -6-
<PAGE>
(1)      Excludes parking garages operated for the benefit of the Company.

(2)      Excludes the 339,000 square foot Macy's store, owned and operated by
         Federated.

(3)      Leased to the Company through January 2027. The Company is obligated to
         pay rent to the landlord as follows: $331,000 per year from February
         1997 through January 2007, $220,000 per year from February 2007 through
         January 2017, and $147,000 per year from February 2017 through January
         2027.

Operating Properties:

Kings Plaza Regional Shopping Center

     The Kings Plaza Regional Shopping Center (the "Center") contains
approximately 1.1 million square feet and is comprised of a two-level mall (the
"Mall") containing 470,000 square feet and two four-level anchor stores. One of
the anchor stores is owned by the Company and leased to Sears, while the other
anchor store is owned and operated as a Macy's store by Federated. The Center
occupies a 24.3-acre site at the intersection of Flatbush Avenue and Avenue U
located in Brooklyn, New York. Among the Center's features are a marina, a
five-level parking structure and an energy plant that generates all of the
Center's electrical power. The Company has completed an interior renovation at a
total cost of $33,000,000. The exterior of the Center is expected to be
renovated in 2002 at a cost of approximately $4,000,000.

     The following table shows lease expirations for the Mall tenants in the
Center for the next ten years, assuming none of the tenants exercise renewal
options:

<TABLE>
<CAPTION>
                                                                                       Percent of     Percent of
                                                                                       Total Lease    2001 Gross
                                    Approximate       Annualized       Annualized        Square       Annual Base
                                   Leased Area in     Fixed Rent       Fixed Rent        Footage        Rental
                      Number of     Square Feet         Under        Under Expiring    Represented    Represented
                       Leases      Under Expiring      Expiring        Leases per      by Expiring    by Expiring
            Year      Expiring         Leases           Leases        Square Foot        Leases         Leases
           -----      ---------     -----------         -----        --------------    -----------    -----------


<S>         <C>       <C>          <C>                <C>            <C>               <C>            <C>
            2002          13           34,800         $ 1,637,547       $  47.06            7.70%          8.64%
            2003           8           22,398           1,215,754          54.28            4.96           6.41
            2004           3           13,137             570,231          43.41            2.91           3.01
            2005           9            2,415             554,774         229.72            0.53           2.93
            2006          15           82,833           2,914,633          35.19           18.34          15.37
            2007          12           49,405           2,420,582          48.99           10.94          12.77
            2008           4            5,341             310,312          58.10            1.18           1.64
            2009          17           79,056           4,053,447          51.27           17.50          21.38
            2010          12           26,469           1,767,845          66.79            5.86           9.32
            2011          14           40,350           2,190,759          54.29            8.93          11.56
</TABLE>

The following table shows the occupancy rate and the average annual rent per
square foot for the Mall stores as of:

<TABLE>
<CAPTION>
                                                                          Average
                                                                     Annual Base Rent
                                               Occupancy Rate         Per Square Foot
                                               --------------         ---------------

<S>                                            <C>                   <C>
         December 31, 2001                          96%                 $  45.97
         December 31, 2000                          91                     44.66
         December 31, 1999                          86                     43.12
         December 31, 1998                          90                     40.63
         December 31, 1997                          86                     38.17
</TABLE>

                                      -7-
<PAGE>
Rego Park I

         The Rego Park I property encompasses the entire block fronting on
Queens Boulevard and bounded by 63rd Road, 62nd Drive, 97th Street and Junction
Boulevard.

         The existing 351,000 square foot building was redeveloped in 1996 and
is fully leased to Sears, Circuit City, Bed Bath & Beyond, Marshalls and Old
Navy. In addition, in conjunction with the redevelopment, a multi-level parking
structure was constructed which provides paid parking spaces for approximately
1,200 vehicles.

Paramus

         The Company owns 30.3 acres of land located at the intersection of
Routes 4 and 17 in Paramus, New Jersey. The Company's property is located
directly across from the Garden State Plaza regional shopping mall, within two
miles of three other regional shopping malls and within 10 miles of New York
City. This land is leased to IKEA Property, Inc. as discussed below.

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

Flushing

         The Flushing property is located on Roosevelt Avenue and Main Street in
the downtown, commercial section of Flushing, Queens. Roosevelt Avenue and Main
Street are active shopping districts with many national retailers located in the
area. A subway entrance is located directly in front of the property with bus
service across the street. It comprises a four-floor building containing 177,000
square feet and a parking garage.

         This property has been vacant since March 1999. The Company is
currently in discussions with several tenants to re-lease portions of this
space.

Third Avenue

         The Company owns the Third Avenue property, a four-floor building and a
small surface parking lot located at the intersection of Third Avenue and 152nd
Street in the Bronx, New York. The store is located in a densely populated
neighborhood. This property is leased to an affiliate of Conway, a New York area
discount retailer.

Property Under Development:

Lexington Avenue

         The Company owns the Lexington Avenue property which comprises the
entire square block bounded by Lexington Avenue, East 59th Street, Third Avenue
and East 58th Street 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 directly across the street from Bloomingdale's
flagship store and only a few blocks away from both Fifth Avenue and 57th
Street.

         The development plans at Lexington Avenue currently consist of a
proposed 1.4 million square foot multi-use building comprised of a commercial
portion, which may include a combination of retail stores and offices, and a
residential portion, consisting of condominium units. There can be no assurance
that the residential portion will be built. If the residential portion of the
property is developed, the air rights representing the residential portion would
be held by a taxable REIT subsidiary, as a REIT is not permitted to sell
condominiums without being subject to a 100% excise tax on the gain from the
sale of such condominiums. The funding required for the proposed building will
be in excess of $650,000,000. The Company is exploring various alternatives for
financing the project, including equity, debt, joint ventures and asset sales,
which may involve arrangements with Vornado Realty Trust. For a discussion of
insurance and its possible effect on financing, see the discussion in Item 2 on
page 9.

                                      -8-
<PAGE>
         On May 1, 2001 the Company entered into a lease agreement with
Bloomberg L.P. to lease approximately 700,000 square feet. The initial term of
the lease is for 25 years, with a ten-year renewal option. Base annual net rent
is $34,221,000 in each of the first four years and $38,226,000 in the fifth year
with a similar percentage increase each four years thereafter. There can be no
assurance that the project ultimately will be completed, completed on time or
completed for the budgeted amount. If the project is not completed on a timely
basis, the lease may be cancelled and significant penalties may apply.

Non-Operating Property to be Developed:

Rego Park II

         The Company owns two land parcels adjacent to the Rego Park I property.
They are the entire square block bounded by the Long Island Expressway, 97th
Street, 62nd Drive and Junction Boulevard and a smaller parcel of approximately
one-half square block at the intersection of 97th Street and the Long Island
Expressway. Both parcels are currently zoned for residential use. Both parcels
are being used for public paid parking. The Company intends to continue to use
these properties for paid parking while it evaluates development options.

Insurance

         The Company carries comprehensive liability and all risk property
insurance (fire, flood, extended coverage and rental loss insurance) with
respect to its assets. The Company's all risk insurance policies in effect
before September 11, 2001 included coverage for terrorist acts, except for acts
of war. Since September 11, 2001, insurance companies are excluding terrorists
acts from coverage in all risk policies. The Company is unlikely to be able to
obtain all risk insurance which includes coverage for terrorists acts when
policies renew in 2002. Therefore, the risk of financial loss in the case of
terrorist acts is the Company's, which loss could be material.

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

Item 3.    Legal Proceedings

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

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

         No matters were submitted to a vote of security holders during the
fourth quarter of the year ended December 31, 2001.

                                      -9-
<PAGE>
Executive Officers of the Company

         The following is a list of the names, ages, principal occupations and
positions with the Company of the executive officers of the Company and the
positions held by such officers during the past five years.

<TABLE>
<CAPTION>
                                        Principal  Occupations,  Position and Office  (current and during the past
    Name                      Age       five years with the Company unless otherwise stated)
----------------      ---------------  ----------------------------------------------------------------------------
<S>                            <C>      <C>
Stephen Mann                   64       Chairman of the Board of Directors since March 2, 1995;  Interim  Chairman
                                        of the Board of Directors from August,  1994 to March 1, 1995; Chairman of
                                        the Clifford  Companies since 1990;  and, prior thereto,  counsel to Mudge
                                        Rose Guthrie Alexander & Ferdon, attorneys.


Steven Roth                    60       Chief  Executive  Officer of the Company since March 2, 1995;  Chairman of
                                        the Board and Chief Executive Officer of Vornado since May 1989;  Chairman
                                        of Vornado's  Executive  Committee of the Board since April 1988;  and the
                                        Managing  General Partner of Interstate,  an owner of shopping centers and
                                        an investor in securities and partnerships.


Michael D. Fascitelli          45       President  of the Company  since  August 1, 2000;  Director of the Company
                                        and President and Trustee of Vornado  Realty Trust since December 2, 1996;
                                        President and Director of Vornado  Operating  Company since 1998;  Partner
                                        at  Goldman,  Sachs & Co.  in  charge  of its real  estate  practice  from
                                        December 1992 to December  1996;  and Vice  President at Goldman,  Sachs &
                                        Co., prior to December 1992.


Joseph Macnow                  56       Executive  Vice  President  - Finance  and  Administration  since March 1,
                                        2001;  Vice  President  and Chief  Financial  Officer of the Company  from
                                        August  1995 to  February  2001;  Executive  Vice  President - Finance and
                                        Administration  of Vornado since January 1998, and Chief Financial Officer
                                        of  Vornado  since  March  2001 and Vice  President  and  Chief  Financial
                                        Officer of Vornado from 1985 to January 1998.


Patrick T. Hogan               34       Vice  President  - Chief  Financial  Officer  since  March 1,  2001;  Vice
                                        President  of Vornado  since  March  2001; Vice-President - Chief Financial
                                        Officer of Vornado Operating Company since  March  2001;  Chief  Financial
                                        Officer and  Treasurer  for  Correctional  Properties  Trust,  a  Maryland
                                        UPREIT, from February 1998 to February 2001;  from June 1996  to  February
                                        1998,  worked  for the Wackenhut  Corporation  and  Subsidiaries  managing
                                        treasury and financial  reporting  functions  while  forming  Correctional
                                        Properties Trust.
</TABLE>

                                      -10-
<PAGE>
                                     PART II

Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

         Equity and Related Stockholder Matters

         The common stock, par value $1.00 per share, of the Company is traded
on the New York Stock Exchange under the symbol "ALX". Set forth below are the
high and low sales prices for the Company's common stock for each full quarterly
period within the two most recent years:

<TABLE>
<CAPTION>
                                            High                           Low
                                            ----                           ---

<S>                                       <C>                           <C>
        1st  Quarter 2001                 $ 74.63                       $ 60.93
        2nd  Quarter 2001                   67.60                         58.38
        3rd  Quarter 2001                   65.40                         59.09
        4th  Quarter 2001                   61.60                         56.40
</TABLE>

<TABLE>
<CAPTION>
                                            High                           Low
                                            ----                           ---

<S>                                       <C>                          <C>
        1st  Quarter 2000                 $ 82.00                      $   63.50
        2nd  Quarter 2000                   73.75                          63.50
        3rd  Quarter 2000                   82.13                          73.20
        4th  Quarter 2000                   82.00                          67.00
</TABLE>

         As of December 31, 2001, there were approximately 1,700 holders of
record of the Company's common stock. The Company pays dividends only if, as and
when declared by its Board of Directors. No dividends were paid in 2001 and
2000. In order to qualify as a REIT, the Company generally is required to
distribute as a dividend 90% of its taxable income. At December 31, 2001, the
Company had net operating loss carryovers ("NOL's") of approximately
$133,000,000. Under the Internal Revenue Code of 1986, as amended, the Company's
NOL's generally would be available to offset the amount of the Company's REIT
taxable income that otherwise would be required to be distributed as a dividend
to stockholders.

                                      -11-
<PAGE>


Item 6.    Selected Financial Data

           Summary of Selected Financial Data
           (Amounts in thousands, except per share data)

<TABLE>
<CAPTION>
                                                  Year Ended December 31,
                               --------------------------------------------------------------------------
                                  2001            2000          1999             1998             1997
                                  ----            ----          ----             ----             ----

<S>                            <C>             <C>          <C>             <C>              <C>
Operating data:
    Total revenues             $  69,343       $  63,965    $  64,390       $  51,663(3)     $  25,369
                               ---------       ---------    ---------       ---------        ---------

    Net income (loss)          $  27,386(1)    $   5,197        5,524(2)       (6,055)(4)    $   7,466(5)
                               =========       =========    =========       =========        =========

    Income (loss)
      per common share: (6)    $    5.48            1.04    $    1.10       $   (1.21)       $    1.49
                               =========       =========    =========       =========        =========

Balance sheet data:

    Total assets               $ 583,339       $ 403,305    $ 366,496       $ 317,043        $ 235,074
    Real estate, net             380,359         341,492      267,203         239,157          191,733
    Debt                         515,831         367,788      329,161         277,113          208,087
    Stockholders' equity          45,081          17,695       12,498           6,974           13,029
</TABLE>




Notes:

(1)      Net income includes the following, (i) gain on sale of the Fordham Road
         Property of $19,026 (ii) extraordinary gain from early extinguishment
         of debt of $3,534 offset by (iii) $3,058 resulting from the write-off
         of architectural and engineering costs associated with development
         plans at Paramus prior to IKEA, and (iv) $2,030 from the write-off of
         professional fees resulting from the termination of the spin-off of
         Alexander's Tower LLC.

(2)      Net of $4,877 resulting from the write-off of the asset arising from
         the straight-lining of rents primarily due to Caldor's rejection of its
         Flushing lease in 1999.

(3)      In June 1998, the Company increased its interest in the Kings Plaza
         Mall to 100% by acquiring Federated's 50% interest.

(4)      Net loss includes the write-off of $15,096 resulting from the razing of
         the building formerly located at the Company's Lexington Avenue site.

(5)      Includes a gain of $8,914 from the condemnation of a portion of the
         Paramus property net of the write-off of the carrying value of the
         building of $5,786.

(6)      Income (loss) per share is the same for all years presented with and
         without dilution. For further discussion of income (loss) per share see
         notes to the consolidated financial statements.

                                      -12-
<PAGE>
Item 7.    Management's Discussion and Analysis of Financial Condition
           and Results of Operations

OVERVIEW

         The Company had net income of $27,386,000 for the year ended December
31, 2001, compared to net income of $5,197,000 in the prior year. Net income for
2001 includes (i) a gain the sale of the Fordham Road property of $19,026,000,
(ii) an extraordinary gain from the early extinguishment of debt of $3,534,000,
partially offset by (iii) a charge of $3,058,000 resulting from the write-off of
architectural and engineering costs associated with the development plans prior
to the IKEA Property Inc. (IKEA) ground lease at Paramus, and (iv) a charge of
$2,030,000 resulting from the write-off of professional fees resulting from the
termination of the spin-off of Alexander's Tower LLC discussed below.

         A wholly-owned subsidiary of the Company, Alexander's Tower LLC (a
taxable REIT subsidiary) was formed to hold title to, and develop, the
residential portion of the property. During 2001, the Company filed a Form 10
Registration Statement with the Securities and Exchange Commission that would
have allowed the Company's possible distribution, to its stockholders, of the
equity interest in Alexander's Tower LLC. On December 21, 2001, the Company
withdrew and terminated the registration.

         Details of the additional changes in the components of net income for
the year ended December 31, 2001 as compared to 2000 are discussed below.

RESULTS OF OPERATIONS

         Years Ended December 31, 2001 and December 31, 2000

         The Company's revenues, which consist of property rentals and tenant
expense reimbursements were $69,343,000 in 2001, compared to $63,965,000 in
2000, an increase of $5,378,000.

         Property rentals were $45,625,000 in 2001, compared to $43,173,000 in
2000, an increase of $2,452,000. This increase results primarily from (i)
commencement, on October 5, 2001, of the ground lease with IKEA at the Paramus
property, and (ii) an increase in occupancy at the Kings Plaza Regional Shopping
Center.

         Tenant expense reimbursements were $23,718,000 in 2001, compared to
$20,792,000 in 2000, an increase of $2,926,000. This increase resulted primarily
from (i) higher reimbursements for incremental real estate taxes and repairs and
maintenance, and (ii) a $531,000 adjustment, made in the first quarter of 2000,
in the method of allocating an anchor tenant's share of parking lot expenses at
the Rego Park I property (which covered a number of years).

         Operating expenses were $29,785,000 in 2001, compared to $29,040,000 in
2000, an increase of $745,000. This resulted primarily from an increase in real
estate taxes and repairs and maintenance of $1,534,000, partially offset by the
following relating to the Kings Plaza Regional Shopping Center, decreases in (i)
operating expenses of $866,000 primarily from fuel costs at the utility plant
and (ii) marketing expenses of $492,000, partially offset by an accrual of
$675,000 for environmental remedation.

         Depreciation and amortization expense was $6,508,000 in 2001, compared
to $5,543,000 in 2000. This increase of $965,000 is a result of the interior
refurbishment of the Company's Kings Plaza Regional Shopping Center completed in
the beginning of 2001.

         Interest and debt expense was $22,469,000 in 2001, compared to
$21,424,000 in 2000, an increase of $1,045,000. This resulted primarily from (i)
$108,000,000 in additional mortgage borrowings from refinancing the Kings Plaza
Regional Shopping Center on June 1, 2001, (ii) a $68,000,000 mortgage loan on
the Paramus property on October 5, 2001, offset by (iii) the repayment of a loan
in the amount of $21,263,000 in connection with the sale on January 12, 2001 of
the Fordham Road property. The increase in interest resulting from higher
average borrowing was substantially offset by (i) a decrease in average interest
rates to 9.20% from 10.07%, and (ii) an increase in capitalized interest
relating to the Company's development properties.

         Interest and other income was $3,237,000 in 2001, compared to
$1,124,000 in 2000. This increase of $2,113,000 results primarily from increased
invested cash balances attributable to additional borrowings on the Company's
Kings Plaza Regional Shopping Center on June 1, 2001, and Paramus property on
October 5, 2001.

                                      -13-
<PAGE>
         Minority interest of $49,000 in 2001 relates to $1,200,000 of
non-convertible preferred stock that was sold to Vornado Realty Trust by 59th
Street Corporation (a wholly-owned subsidiary of the Company) on August 1, 2001.
This issue was redeemed by 59th Street Corporation, and a $49,000 dividend was
paid, on December 28, 2001.

         Years Ended December 31, 2000 and December 31, 1999

         The Company's revenues, which consist of property rentals and tenant
expense reimbursements were $63,965,000 in 2000, compared to $64,390,000 in
1999, a decrease of $425,000.

         Property rentals were $43,173,000 in 2000, compared to $44,232,000 in
1999, a decrease of $1,059,000. This decrease resulted primarily from Caldor's
rejection of its Flushing lease effected March 29, 1999.

         Tenant expense reimbursements were $20,792,000 in 2000, compared to
$20,158,000 in 1999, an increase of $634,000. This increase resulted primarily
from higher reimbursements for a portion of the increased fuel costs of the
utility plant at the Company's Kings Plaza Regional Shopping Center; partially
offset from a change made in the first quarter of 2000, in the method of
allocating an anchor tenant's share of parking lot expenses at the Rego Park I
property (which covered a number of years).

         Operating expenses were $29,040,000 in 2000, compared to $33,081,000 in
1999, a decrease of $4,041,000. This decrease resulted primarily from: (i)
$4,877,000 representing the write-off of the asset arising from the
straight-lining of rents due to Caldor's rejection of its Flushing lease in
1999, (ii) a decrease in repairs and maintenance of $1,243,000 in 2000,
partially offset by an increase in expenses of the utility plant at the
Company's Kings Plaza Regional Shopping Center in the current year resulting
from higher fuel costs.

         General and administrative expenses were $3,885,000 in 2000, compared
to $3,692,000 in 1999, an increase of $193,000 primarily as a result of higher
professional fees.

         Interest and debt expense was $21,424,000 in 2000, compared to
$17,647,000 in 1999, an increase of $3,777,000. This increase resulted from (i)
an increase in average debt outstanding of $61,268,000, and (ii) an increase in
average interest rates from 8.50% to 10.07%, substantially offset by (iii) an
increase in capitalized interest resulting from the Company's development
properties.


LIQUIDITY AND CAPITAL RESOURCES

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

     The development plans at Lexington Avenue currently consist of a proposed
1.4 million square foot multi-use building comprised of a commercial portion,
which may include a combination of retail stores and offices, and a residential
portion, consisting of condominium units. There can be no assurance that the
residential portion will be built. The funding required for the proposed
building will be in excess of $650,000,000. The Company is exploring various
alternatives for financing the project, including equity, debt, joint ventures
and asset sales, which may involve arrangements with Vornado Realty Trust. For a
discussion of insurance and its possible effect on financing, see the discussion
below and in Item 2 on page 9.

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

     The Company's debt instruments, consisting of mortgage loans secured by its
properties (which are generally non-recourse to the Company), contain customary
covenants requiring the Company to maintain insurance. There can be no assurance
that the lenders under these instruments will not take the position that an
exclusion from all risk insurance coverage for losses due to terrorist acts is a
breach of these debt instruments that allows the lenders to

                                      -14-
<PAGE>
declare an event of default and accelerate repayment of debt. In addition, if
lenders insist on coverage for these risks, it could adversely affect the
Company's ability to finance and/or refinance its properties, including the
construction of its Lexington Avenue development property.

         On October 5, 2001, the Company entered into a ground lease for its
Paramus, N.J. property with IKEA Property, Inc. The lease has a 40-year term
with an option to purchase at the end of the 20th year for $75,000,000. Further,
the Company has obtained a $68,000,000 interest only, non-recourse mortgage loan
on the property from a third party lender. The fixed interest rate on the debt
is 5.92% with interest payable monthly until maturity in October, 2011. The
triple net rent each year is the sum of $700,000 plus the amount of debt service
on the mortgage loan. If the purchase option is not exercised at the end of the
20th year, the triple net rent for the last 20 years must include debt service
sufficient to fully amortize the $68,000,000 over the remaining 20-year lease
period. In addition, as a result of this transaction, the Company also repaid
$10,000,000 of the $20,000,000 outstanding term loan to a bank, which carries an
interest rate of LIBOR plus 1.85% (3.75% at December 31, 2001).

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

         At December 31, 2001, the Company is indebted to Vornado in the amount
of $119,000,000 comprised of (i) $95,000,000, the subordinated tranche of a
$105,000,000 secured financing, and (ii) $24,000,000 under a $50,000,000 secured
line of credit (which carries a 1% unused commitment fee). The interest rate on
the loan and line of credit is 13.74% and the maturity has been extended to
April 15, 2003. The interest rate on the loan and line of credit will reset on
March 15, 2002 and quarterly thereafter, using the same spread to treasuries as
presently exists and a 3.00% floor for treasuries. These loans are secured by
liens on the Company's assets and/or pledges of the stock of subsidiaries owning
the assets and/or guarantees of such subsidiaries and the parent; except the
liens do not cover the Kings Plaza Regional Shopping Center, Paramus and Rego
Park I and are subordinate to first mortgages and a $10,000,000 bank term loan
which is included in the $105,000,000 secured financing discussed above.

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

         A summary of maturities of debt at December 31, 2001 is as follows:

<TABLE>
<CAPTION>
                     Year ending December 31,
                     ------------------------
<S>                                                    <C>
                               2002                    $     2,524,000
                               2003                        146,721,000
                               2004                          3,226,000
                               2005                          3,895,000
                               2006                          4,199,000
</TABLE>

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

         CASH FLOWS

         Year Ended December 31, 2001

         Net cash provided by operating activities of $9,839,000 was comprised
of (i) net income of $27,386,000, (ii) non-cash items of $4,824,000, (iii)
write-off of architectural and engineering costs of $3,058,000 associated with
the development plans prior to the IKEA Property, Inc. ground lease, (iv)
write-off of professional fees of $2,030,000 resulting from the termination of
the spin-off of Alexander's Tower LLC, offset by (v) gain on sale of

                                      -15-
<PAGE>
Fordham Road property of $19,026,000, (vi) extraordinary gain from early
extinguishment of debt of $3,534,000, and (vii) the net change in operating
assets and liabilities of $4,899,000. The adjustments for non-cash items are
primarily comprised of (i) depreciation and amortization of $7,973,000, offset
by (ii) the effect of straight-lining of rental income of $3,149,000.

         Net cash used in investing activities of $22,995,000 was comprised of
(i) proceeds from the sale of Fordham Road property of $23,701,000, (ii) the
release of restricted cash of $21,670,000, offset by (iii) capital expenditures
of $48,490,000 and (iv) an increase in restricted cash of $19,876,000. The
capital expenditures were primarily comprised of (i) capitalized interest and
other carrying costs of $21,378,000, (ii) renovations to the Kings Plaza
Regional Shopping Center of $3,651,000 and (iii) excavation, foundation and
predevelopment costs at Lexington Avenue of $21,599,000.

         Net cash provided by financing activities of $146,142,000 was comprised
of (i) proceeds from the issuance of debt of $300,685,000 offset by, (ii)
repayment of debt of $149,337,000, and (iii) debt issuance costs of $5,206,000.

         Year Ended December 31, 2000

         Cash provided by operating activities of $10,741,000 was comprised of
income after adjustments for non-cash items of $9,737,000, net of the change in
operating assets and liabilities of $1,004,000. The adjustments for non-cash
items are comprised of depreciation and amortization of $8,049,000 and the
effect of straight-lining of rental income of $3,509,000.

         Net cash used in investing activities of $65,636,000 was comprised of
capital expenditures of $77,931,000, offset by the release of restricted cash of
$12,295,000. The capital expenditures were primarily comprised of: (i)
excavation, foundation and predevelopment costs at Lexington Avenue of
$35,300,000, (ii) renovations to the Kings Plaza Regional Shopping Center of
$22,700,000, and (iii) capitalized interest and other carrying costs of
$18,800,000.

         Net cash provided by financing activities of $31,114,000 was comprised
of (i) proceeds from the issuance of debt of $38,849,000, offset by (ii) payment
of acquisition obligation of $6,936,000, (iii) repayments of debt of $222,000
and (iv) debt issuance costs of $577,000.

         Year Ended December 31, 1999

         Cash provided by operating activities of $17,194,000 was comprised of
income after adjustments for non-cash items of $14,445,000, net of the change in
operating assets and liabilities of $2,749,000. The adjustments for non-cash
items are comprised of depreciation and amortization of $7,460,000 and the
effect of straight-lining of rental income of $1,461,000.

         Net cash used in investing activities of $47,601,000 was primarily
comprised of (i) the escrowing of cash from the proceeds from the Kings Plaza
Regional Shopping Center which is restricted as to its use $13,601,000, net of
the release of cash from escrow for the condemnation of a portion of the Paramus
property $2,318,000 and (ii) capital expenditures of $36,318,000.

         Net cash provided by financing activities of $41,097,000 was comprised
of (i) proceeds from the issuance of debt of $137,676,000, offset by (ii)
repayments of debt of $85,628,000, (iii) debt issuance costs of $3,522,000 and
(iv) payment of acquisition obligation of $7,429,000.

                                      -16-
<PAGE>
         Funds from Operations for the Years Ended December 31, 2001 and 2000

         Funds from operations were $5,785,000 in the year ended December 31,
2001, an increase of $311,000 from the prior year. The following table
reconciles funds from operations and net income:

<TABLE>
<CAPTION>
                                                           2001                2000
                                                           ----                ----

<S>                                                     <C>              <C>
Net income                                              $ 27,386,000     $  5,197,000
Depreciation and amortization of
      real property                                        6,508,000        5,543,000
Straight-lining of property rentals
      for rent escalations                                (3,149,000)      (3,509,000)
Write-off of the asset arising from the
      straight-lining of rents                                    --               --
Gain on sale of Fordham Road property                    (19,026,000)              --
Extraordinary gain from early extinguishment of debt      (3,534,000)              --
Leasing fees paid in excess
      of expense recognized                               (2,400,000)      (1,757,000)
                                                        ------------     ------------
                                                        $  5,785,000     $  5,474,000
                                                        ============     ============
</TABLE>


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

<TABLE>
<CAPTION>
                             2001              2000
                             ----              ----

<S>                     <C>               <C>
Operating activities    $   9,839,000     $  10,741,000
                        =============     =============

Investing activities    $ (22,995,000)    $ (65,636,000)
                        =============     =============

Financing activities    $ 146,142,000     $  31,114,000
                        =============     =============
</TABLE>

         Recently Issued Accounting Standards

         In July 2001, the Financial Accounting Standards Board issued SFAS No.
141, Business Combinations and SFAS No. 142, Goodwill and Other Intangible
Assets. SFAS No. 141 is effective immediately and SFAS No. 142 will be
implemented in January 2002. The implementation of these standards did not have
an impact on the Company's financial statements.

                                      -17-
<PAGE>
         In August 2001, FASB issued SFAS No. 143, Accounting for Asset
Retirement Obligations (effective January 1, 2003) and SFAS No. 144 Accounting
for the Impairment or Disposal of Long-Lived Assets (effective January 1, 2002).
SFAS No. 143 requires the recording of the fair value of a liability for an
asset retirement obligation in the period in which it is incurred. SFAS No. 144
supercedes current accounting literature and now provides for a single
accounting model for long-lived assets to be disposed of by sale and requires
discontinued operations presentation for disposals of a "component" of entity.
The Company does not believe that the adoption of SFAS No. 143 and 144 will
affect the Company's financial statements.

Item 7A.   Quantitative and Qualitative Disclosures About Market Risk

         At December 31, 2001 and 2000, the Company had $25,000,000 and
$170,788,000 of variable rate debt at weighted average interest rates of 4.95%
and 8.36%. In addition, at December 31, 2001 and 2000, the Company had
$490,831,000 and $197,000,000 of fixed rate debt bearing interest at weighted
average interest rates of 8.73% and 12.19%. A one percent increase in the base
used to determine the interest rate of the variable rate debt would result in a
$250,000 decrease in the Company's annual net income for the year ended December
31, 2001 ($.05 per basic and diluted share).


                                      -18-
<PAGE>
Item 8.  Financial Statements and Supplementary Data


                          Index to Financial Statements
<TABLE>
<CAPTION>
                                                                       Page
                                                                      Number
                                                                      ------
<S>                                                                   <C>
       Independent Auditors' Report                                     20

       Consolidated Balance Sheets at December 31, 2001 and 2000        21

       Consolidated Statements of Income for the
            Years Ended December 31, 2001, 2000 and 1999                23

       Consolidated Statements of Stockholders' Equity for the
            Years Ended December 31, 2001, 2000 and 1999                24

       Consolidated Statements of Cash Flows for the
            Years Ended December 31, 2001, 2000 and 1999                25

       Notes to Consolidated Financial Statements                       26
</TABLE>

Item 9.  Changes in and Disagreements with Accountants on Accounting and
         Financial Disclosure

         Not applicable.



                                      -19-
<PAGE>
INDEPENDENT AUDITORS' REPORT


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, 2001 and 2000 and the
related consolidated statements of income, stockholders' equity and cash flows
for each of the three years in the period ended December 31, 2001. Our audits
also included the financial statement schedules listed in the index at Item
14(a)(2). 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 auditing standards generally accepted
in the United States of America. 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 financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2001, and
2000, and the results of their operations and their cash flows for each of the
three years in the period ended December 31, 2001 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.





DELOITTE & TOUCHE LLP

Parsippany, New Jersey
March 11, 2002


                                      -20-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                   (amounts in thousands except share amounts)

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                 December 31,
                                                                            ------------------------
                                                                              2001           2000
                                                                            ---------      ---------
<S>                                                                         <C>            <C>
ASSETS:
Real estate, at cost:
   Land                                                                     $  91,969      $  81,656
   Buildings, leaseholds and leasehold improvements                           176,036        141,873
   Capitalized expenses, development costs and construction in progress       168,737        169,811
                                                                            ---------      ---------
      Total                                                                   436,742        393,340
   Less accumulated depreciation and amortization                             (56,383)       (51,848)
                                                                            ---------      ---------
Real estate, net                                                              380,359        341,492

Asset held for sale (Fordham Road property)                                        --          4,559

Cash and cash equivalents                                                     135,258          2,272
Restricted cash                                                                 6,596          8,390
Accounts receivable, net of allowance for doubtful accounts
   of $929 and $722 in 2001 and 2000                                            1,534          1,723
Receivable arising from the straight-lining of rents, net                      18,233         15,084
Deferred lease and other property costs                                        29,371         24,453
Deferred debt expense                                                           5,840          2,280
Other assets                                                                    6,148          3,052
                                                                            ---------      ---------


TOTAL ASSETS                                                                $ 583,339      $ 403,305
                                                                            =========      =========
</TABLE>

                 See notes to consolidated financial statements


                                      -21-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                     CONSOLIDATED BALANCE SHEETS (continued)
                   (amounts in thousands except share amounts)

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                        December 31,
                                                                                                  ------------------------
                                                                                                    2001           2000
                                                                                                  ---------      ---------

<S>                                                                                               <C>            <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
Debt (including $119,000 and $115,000 due
    to Vornado Realty Trust (Vornado) in 2001 and 2000)                                           $ 515,831      $ 367,788
Amounts due to Vornado and its affiliate                                                              4,822          1,267
Accounts payable and accrued expenses                                                                13,940         13,821
Other liabilities                                                                                     3,665          2,734
                                                                                                  ---------      ---------
    TOTAL LIABILITIES                                                                               538,258        385,610
                                                                                                  ---------      ---------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Preferred stock:  no par value; authorized, 3,000,000 shares;
    issued, none
Common stock:  $1.00 par value per share; authorized, 10,000,000 shares;
    issued, 5,173,450 shares                                                                          5,174          5,174
Additional capital                                                                                   24,843         24,843
Retained earnings/(deficit)                                                                          16,024        (11,362)
                                                                                                  ---------      ---------
                                                                                                     46,041         18,655
Less treasury shares, 172,600 shares at cost                                                           (960)          (960)
                                                                                                  ---------      ---------
Total stockholders' equity                                                                           45,081         17,695
                                                                                                  ---------      ---------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                        $ 583,339      $ 403,305
                                                                                                  =========      =========
</TABLE>

                 See notes to consolidated financial statements


                                      -22-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                        CONSOLIDATED STATEMENTS OF INCOME
                   (amounts in thousands except share amounts)

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                              Year Ended December 31,
                                                                                        ------------------------------------
                                                                                          2001          2000          1999
                                                                                        --------      --------      --------
<S>                                                                                     <C>           <C>           <C>
REVENUES:
    Property rentals                                                                    $ 45,625      $ 43,173      $ 44,232
    Expense reimbursements                                                                23,718        20,792        20,158
                                                                                        --------      --------      --------
Total revenues                                                                            69,343        63,965        64,390
                                                                                        --------      --------      --------

EXPENSES:
    Operating (including management fee of $1,362, $1,337 and $1,342
       to Vornado)                                                                        29,785        29,040        33,081
    Write-off of architectural and engineering costs associated with
       development plans of Paramus prior to IKEA                                          3,058            --            --
    General and administrative (including management
       fee of $2,160 to Vornado in each year)                                              3,855         3,885         3,692
    Depreciation and amortization                                                          6,508         5,543         5,441
                                                                                        --------      --------      --------
Total expenses                                                                            43,206        38,468        42,214
                                                                                        --------      --------      --------

OPERATING INCOME                                                                          26,137        25,497        22,176

    Interest and debt expense
       (including interest on loans from Vornado)                                        (22,469)      (21,424)      (17,647)
    Interest and other income, net                                                         3,237         1,124           995
    Write-off professional fees resulting from the termination of the spin-off of
     Alexander's Tower LLC                                                                (2,030)           --            --
                                                                                        --------      --------      --------
     Income before gain on sale of
       Fordham Road property and extraordinary item                                        4,875         5,197         5,524
    Gain on sale of Fordham Road property                                                 19,026            --            --
    Minority Interest                                                                        (49)           --            --
                                                                                        --------      --------      --------

    Income before extraordinary item                                                      23,852         5,197         5,524
    Extraordinary gain from early extinguishment of debt                                   3,534            --            --
                                                                                        --------      --------      --------

NET INCOME                                                                              $ 27,386      $  5,197      $  5,524
                                                                                        ========      ========      ========

    Basic and diluted income per share
       before extraordinary item                                                        $   4.77      $   1.04      $   1.10
                                                                                        ========      ========      ========

    Basic and diluted income per share
       after extraordinary item                                                         $   5.48      $   1.04      $   1.10
                                                                                        ========      ========      ========
</TABLE>

                 See notes to consolidated financial statements.


                                      -23-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                             (amounts in thousands)


--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                      Retained
                               Common    Additional   Earnings/    Treasury  Stockholders'
                               Stock      Capital     (Deficit)     Stock      Equity
                               ------    ----------   ---------    --------  -------------
<S>                            <C>       <C>          <C>         <C>        <C>
Balance, January 1, 1999       $5,174     $24,843     $(22,083)     $(960)     $ 6,974


Net income                         --          --        5,524         --        5,524
                               ------     -------     --------      -----      -------
Balance, December 31, 1999      5,174      24,843      (16,559)      (960)      12,498

Net income                         --          --        5,197         --        5,197
                               ------     -------     --------      -----      -------
Balance, December 31, 2000      5,174      24,843      (11,362)      (960)      17,695

Net income                         --          --       27,386         --           --
                               ------     -------     --------      -----      -------
Balance, December 31, 2001     $5,174     $24,843     $ 16,024      $(960)     $45,081
                               ======     =======     ========      =====      =======
</TABLE>

                 See notes to consolidated financial statements.


                                      -24-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (amounts in thousands)

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                      Year Ended December 31,
                                                                               --------------------------------------
                                                                                 2001           2000          1999
                                                                               ---------      --------      ---------
<S>                                                                            <C>            <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                                     $  27,386      $  5,197      $   5,524
Adjustments to reconcile net income to
      net cash provided by operating activities:
      Depreciation and amortization (including debt
        issuance costs)                                                            7,973         8,049          7,460
      Straight-lining of rental income, net                                       (3,149)       (3,509)        (3,416)
      Write-off of the asset arising from the straight-lining of rents                --            --          4,877
      Gain on Sale of Fordham Road property                                      (19,026)           --             --
      Extraordinary gain from early extinguishment of debt                        (3,534)           --             --
      Write-off of architectural and engineering costs associated with
        development plans prior to the IKEA Property Inc. ground lease             3,058            --             --
      Write-off of professional fees resulting from the termination of the
        spin-off of Alexander's Tower LLC                                          2,030            --             --
Change in assets and liabilities:
      Accounts receivable                                                            189         1,630            (50)
      Amounts due to Vornado and its affiliate                                     3,555        (2,554)        (2,019)
      Accounts payable and accrued expenses                                          348         3,017            691
      Deferred lease and other property costs                                     (6,887)       (1,526)           994
      Other liabilities                                                              932          (546)           638
      Other                                                                       (3,036)          983          2,495
                                                                               ---------      --------      ---------
Net cash provided by operating activities                                          9,839        10,741         17,194
                                                                               ---------      --------      ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to real estate                                                         (48,490)      (77,931)       (36,318)
Cash made available for construction financing                                     8,388        12,202          4,384
Cash restricted for construction financing                                            --            --        (17,985)
Cash made available for operating liabilities                                     13,282            93          2,318
Cash restricted for operating liability                                          (19,876)           --
Proceeds from sale of Fordham Road Property                                       23,701            --             --
                                                                               ---------      --------      ---------
Net cash used in investing activities                                            (22,995)      (65,636)       (47,601)
                                                                               ---------      --------      ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of debt                                                                 300,685        38,849        137,676
Debt repayments                                                                 (149,337)         (222)       (85,628)
Deferred debt expense                                                             (5,206)         (577)        (3,522)
Payment of acquisition obligation                                                     --        (6,936)        (7,429)
                                                                               ---------      --------      ---------
Net cash provided by financing activities                                        146,142        31,114         41,097
                                                                               ---------      --------      ---------

Net increase (decrease) in cash and cash equivalents                             132,986       (23,781)        10,690
Cash and cash equivalents at the beginning of the year                             2,272        26,053         15,363
                                                                               ---------      --------      ---------
Cash and cash equivalents at the end of the year                               $ 135,258      $  2,272      $  26,053
                                                                               =========      ========      =========


SUPPLEMENTAL INFORMATION:
Cash payments for interest (of which $19,259, $16,731 and $9,352
   have been capitalized)                                                      $  38,793      $ 33,979      $  23,266
                                                                               =========      ========      =========
</TABLE>

                 See notes to consolidated financial statements.


                                      -25-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

1.  ORGANIZATION AND BUSINESS

    Alexander's, Inc. (the "Company") is a real estate investment trust ("REIT")
engaged in leasing, managing, developing and redeveloping properties.
Alexander's activities are conducted through its manager, Vornado Realty Trust
("Vornado").

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

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

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    Basis of Presentation -- The consolidated financial statements include the
accounts of the Company and its wholly owned subsidiaries. All intercompany
accounts and transactions have been eliminated. Certain reclassifications to
prior year amounts have been made to conform with the current year's
presentation. The Company currently operates in one business segment.

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

    Cash and Cash Equivalents -- The Company includes in cash and cash
equivalents both cash and short-term highly liquid investments purchased with
original maturities of three months or less. Cash and cash equivalents does not
include cash restricted for construction financing and operating liabilities
which is disclosed separately.

    Fair Value of Financial Instruments - All financial instruments of the
Company are reflected in the accompanying Consolidated Balance Sheets at
historical cost which, in management's estimation, based upon an interpretation
of available market information and valuation methodologies (including
discounted cash flow analyses with regard to fixed rate debt), reasonably
approximates their fair values. Such fair value estimates are not necessarily
indicative of the amounts that would be realized upon disposition of the
Company's financial instruments.

    Real Estate and Other Property - Real estate and other property is carried
at cost, net of accumulated depreciation. Depreciation is provided on buildings
and improvements on a straight-line basis over their estimated useful lives
ranging from four years to forty years. When real estate and other property is
undergoing development activities, all property operating expenses, including
interest expense, are capitalized to the cost of the real property to the extent
that management believes such costs are recoverable through the value of the
property.

    The Company's properties are reviewed for impairment if events or changes in
circumstances indicate that the carrying amount of the property may not be
recoverable. In such an event, a comparison is made of the current and projected
operating cash flows of each such property into the foreseeable future on an
undiscounted basis, to the carrying amount of such property. Such carrying
amount would be adjusted, if necessary, to reflect an impairment in the value of
the asset.

    Deferred Charges - Direct financing costs are deferred and amortized over
the terms of the related agreements as a component of interest 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.


                                      -26-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

    Revenue Recognition - Base rents, additional rents based on tenants' sales
volume and reimbursement of the tenants' share of certain operating expenses are
generally recognized when due from tenants. The straight-line basis is used to
recognize base rents under leases entered into after November 14, 1985, which
provide for varying rents over the lease terms. Contingent rents are not
recognized until realized.

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

    The Company has reported NOL carryovers for federal tax purposes of
approximately $133,000,000 at December 31, 2001, expiring from 2007 to 2015. The
Company also has investment tax and targeted jobs tax credits of approximately
$2,800,000 expiring in 2008 through 2014.

    The net basis in the Company's assets and liabilities for tax purposes is
approximately $71,000,000 lower than the amount reported for financial statement
purposes.

    Amounts Per Share - Basic income per share excludes any dilutive effects of
stock options. Stock options outstanding were not dilutive in any period.

    Stock Options - The Company accounts for stock-based compensation using the
intrinsic value method. Under the intrinsic value method compensation cost is
measured as the excess, if any, of the quoted market price of the Company's
stock at the date of grant over the exercise price of the option granted.
Compensation cost for stock options, if any, is recognized ratably over the
vesting period. The Company's policy is to grant options with an exercise price
equal to the quoted market price of the Company's stock on the grant date.
Accordingly, no compensation cost has been recognized for the Company's stock
option plans.

    Stock Appreciation Rights - Stock Appreciation Rights (SARs) are granted at
100% of the market price of the Common Stock on the date of grant. SARs vest
ratably, becoming fully vested 36 months after grant. Expense is recognized
ratably in the statement of income if the stock price exceeds the exercise price
at the balance sheet date. On subsequent balance sheet dates, if the stock price
falls, the previously recognized expense is reversed, but not below zero.

     Recently Issued Accounting Standards

    In July 2001, the Financial Accounting Standards Board issued SFAS No. 141,
Business Combinations and SFAS No. 142, Goodwill and Other Intangible Assets.
SFAS No. 141 is effective immediately and SFAS No. 142 will be implemented in
January 2002. The implementation of these standards did not have an impact on
the Company's financial statements.

    In August 2001, FASB issued SFAS No. 143, Accounting for Asset Retirement
Obligations (effective January 1, 2003) and SFAS No. 144 Accounting for the
Impairment or Disposal of Long-Lived Assets (effective January 1, 2002). SFAS
No. 143 requires the recording of the fair value of a liability for an asset
retirement obligation in the period in which it is incurred. SFAS No. 144
supercedes current accounting literature and now provides for a single
accounting model for long-lived assets to be disposed of by sale and requires
discontinued operations presentation for disposals of a "component" of entity.
The Company does not believe that the adoption of SFAS No. 143 and 144 will
affect the Company's financial statements.


                                      -27-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

3.  DEBT

    Debt comprises:

<TABLE>
<CAPTION>
                                                          December 31,
                                                  -----------------------------
                                                     2001             2000
                                                  ------------     ------------
<S>                                               <C>              <C>
Term loan to Vornado (1)                          $119,000,000     $115,000,000

Term loan to bank (1)                               10,000,000       20,000,000

First mortgage loan, secured by
   the Company's Kings Plaza
   Regional Shopping Center (2)                    221,831,000      114,525,000

First mortgage loan, secured by the Company's
   Rego Park I Shopping Center (3)                  82,000,000       82,000,000

First mortgage loan secured by the Company's
   Paramus Property (4)                             68,000,000               --

Secured note (5)                                    15,000,000       15,000,000

First mortgage loan secured by the
   Company's Fordham Road property (6)                      --       21,263,000
                                                  ------------     ------------

                                                  $515,831,000     $367,788,000
                                                  ============     ============
</TABLE>

For a discussion of insurance and its possible effect on financing, see the
discussion below.

        (1) At December 31, 2001, the Company is indebted to Vornado in the
            amount of $119,000,000 comprised of (i) $95,000,000, the
            subordinated tranche of a $105,000,000 secured financing, and (ii)
            $24,000,000 under a $50,000,000 secured line of credit (which
            carries a 1% unused commitment fee). The interest rate on the loan
            and line of credit is 13.74% and the maturity has been extended to
            April 15, 2003. The interest rate on the loan and line of credit
            will reset on March 15, 2002 and quarterly thereafter, using the
            same spread to treasuries as presently exists and a 3.00% floor for
            treasuries.

            The interest rate on the bank loan is LIBOR plus 1.85% (3.75% at
            December 31, 2001). The term loan to the bank which was scheduled to
            mature on March 15, 2002, has been extended to March 15, 2003. In
            addition, the interest rate will reset on March 15, 2002 using the
            same spread to LIBOR as presently exists.

            The loans are secured by liens on the Company's assets and/or
            pledges of the stock of subsidiaries owning the assets and/or
            guarantees of such subsidiaries and the parent; except the liens do
            not cover the Kings Plaza Regional Shopping Center, Paramus and Rego
            Park I and are subordinate to first mortgages. The Vornado lien is
            subordinate to the bank's $10,000,000 loan. The Vornado loan is
            prepayable quarterly without penalty. Under the terms of the loans,
            no dividends can be paid unless required to maintain REIT status.

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


                                      -28-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

        (3) The mortgage loan, which is an obligation of a wholly-owned
            subsidiary, matures in May, 2009 and is secured by a mortgage on the
            Rego Park I property and guaranteed by the Company. The loan bears
            interest at a fixed rate of 7.25%. Amortization of principal begins
            in July 2004 on a 30-year schedule.

        (4) The $68,000,000 interest only, non-recourse mortgage loan on the
            Paramus property is from a third party lender. The fixed interest
            rate on the debt is 5.92% with interest payable monthly until
            maturity in October, 2011.

        (5) The note is secured by a third mortgage on the Lexington Avenue
            property. The note bears annual interest at Prime plus 1% (5.75% at
            December 31, 2001) and is prepayable without penalty.

        (6) The Company's mortgage loan, which was an obligation of a
            wholly-owned subsidiary of the Company, has been satisfied in
            connection with the sale of the Fordham Road property on January 12,
            2001.

    A summary of maturities of debt at December 31, 2001, is as follows:

<TABLE>
<CAPTION>
                    Year Ending December 31,
                    ------------------------
<S>                                            <C>
                             2002              $  2,524,000
                             2003               146,721,000
                             2004                 3,226,000
                             2005                 3,895,000
                             2006                 4,199,000
</TABLE>

     All of the Company's debt is secured by mortgages and/or pledges of the
stock of subsidiaries holding the properties. The net carrying value of real
estate collateralizing the debt amounted to $380,359,000 at December 31, 2001.

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

4.   LEASES

As Lessor

    The Company leases properties to tenants. The rental terms for the
properties leased range from 5 years to approximately 40 years. The leases
provide for the payment of fixed base rentals payable monthly in advance and for
the payment by the lessees of additional rents based on a percentage of the
tenants' sales as well as reimbursements of real estate taxes, insurance and
maintenance.


                                      -29-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

    Future base rental revenue under these noncancellable operating leases
(other than leases which have not commenced, including Bloomberg) is as follows:

<TABLE>
<CAPTION>
                     Year Ending                          Total
                    December 31,                         Amounts
                    ------------                         -------
<S>                                                   <C>
                        2002                          $ 38,446,000
                        2003                            38,611,000
                        2004                            38,908,000
                        2005                            38,667,000
                        2006                            36,668,000
                     Thereafter                        497,089,000
</TABLE>

    Included in operating expenses for the year ended December 31, 1999 is
$4,877,000 resulting from the write-off of the asset arising from the
straight-line of rents primarily as a result of Caldor's rejection of its
Flushing lease in 1999.

    Sears accounted for 21%, 21% and 22% of the Company's consolidated revenues
for the years ended December 31, 2001, 2000, and 1999, respectively. No other
tenant accounted for more than 10% of revenues.

As Lessee

    The Company is a tenant under long-term leases. Future minimum lease
payments under the operating leases are as follows:

<TABLE>
<CAPTION>
                    Year Ending                            Total
                    December 31,                          Amounts
                    ------------                          -------
<S>                                                     <C>
                        2002                            $  416,000
                        2003                               416,000
                        2004                               416,000
                        2005                               416,000
                        2006                               416,000
                     Thereafter                          4,847,000
</TABLE>

    Rent expense was $416,000 for each of the years ended December 31, 2001,
2000 and 1999.

5.  LEXINGTON AVENUE

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

    The development plans at Lexington Avenue currently consist of a proposed
1.4 million square foot multi-use building comprised of a commercial portion,
which may include a combination of retail stores and office, and a residential
portion, consisting of condominium units. There can be no assurance that the
residential portion will be built. If the residential portion of the property is
developed, the air rights representing the residential portion would be held by
a taxable REIT subsidiary, as a REIT is not permitted to sell condominiums
without being subject to a 100% excise tax on the gain from the sale of such
condominiums. In connection therewith, a wholly-owned subsidiary of the Company,
Alexander's Tower LLC (a taxable REIT subsidiary) was formed to hold title to,
and develop, the residential portion of the property. During 2001, the Company
filed a Form 10 Registration Statement with the Securities and Exchange
Commission that would have allowed the Company's possible distribution, to its
stockholders, of the equity interest in Alexander's Tower LLC. On December 21,
2001, the Company withdrew and terminated the registration. Accordingly, the
Company wrote-off professional fees associated therewith of $2,030,000 for the
year.


                                      -30-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

    The funding required for the proposed building will be in excess of
$650,000,000. The Company is exploring various alternatives for financing the
project, including equity, debt, joint ventures and asset sales, which may
involve arrangements with Vornado Realty Trust. For a discussion of insurance
and its possible effect on financing, see the discussion below.

6. PARAMUS PROPERTY

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

7. KINGS PLAZA REGIONAL SHOPPING CENTER

    The Company has completed an interior renovation of the Kings Plaza Regional
Shopping Center (the "Center") at a cost of $33,000,000. These costs were
reclassified to "Buildings, leaseholds and leasehold improvements" from
"Capitalized expenses, development costs and construction in progress" during
the first quarter of 2001. The exterior of the Center is expected to be
renovated in 2002 at a cost of approximately $4,000,000.

8. SALE OF FORDHAM ROAD PROPERTY

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

9.  RELATED PARTY TRANSACTIONS

    Steven Roth is Chief Executive Officer and a director of the Company, the
Managing General Partner of Interstate Properties ("Interstate") and Chairman of
the Board and Chief Executive Officer of Vornado. At December 31, 2001, Mr.
Roth, Interstate and the other two general partners of Interestate, David
Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and
trustees of Vornado) own, in the aggregate, 27.5% of the outstanding common
stock of the Company, and 15.5% of the outstanding common shares of beneficial
interest of Vornado.

    The Company is managed by and its properties are redeveloped and leased by
Vornado, pursuant to agreements with a one-year term expiring in March of each
year which are automatically renewable.

    The annual management fee payable by the Company to Vornado is equal to the
sum of (i) $3,000,000, (ii) 3% of the gross income from the Mall, plus (iii) 6%
of development costs with minimum guaranteed fees of $750,000 per annum. The
leasing agreement provides for the Company to pay a fee to Vornado equal to (i)
3% of the gross proceeds, as defined, from the sale of an asset and (ii) in the
event of a lease or sublease of an asset, 3% of lease rent for the first ten
years of a lease term, 2% of lease rent for the eleventh through the twentieth
years of a lease term and 1% of lease rent for the twenty-first through
thirtieth year of a lease term, subject to the payment of rents by tenants. Such
amount is payable annually in an amount not to exceed $2,500,000, until the
present value of such installments (calculated at a discount rate of 9% per
annum), equals the amount that would have been paid had it been paid at the time
the transactions which gave rise to the commissions occurred. Pursuant to the
leasing agreement, in the event third party real estate brokers are used, the
fees to Vornado increase by 1% and Vornado is responsible for the fees to the
third party real estate brokers. Under these agreements, the Company incurred
fees of $9,361,000, $6,721,000 and $7,237,000 for the years ended December 31,
2001, 2000 and 1999. At December 31, 2001 the Company owes Vornado $2,249,000
for leasing fees.


                                      -31-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

    The Company has $119,000,000 of outstanding loans with Vornado. The Company
incurred interest on the loans of $17,455,000, $15,934,000 and $7,857,000 for
the years ended December 31, 2001, 2000 and 1999.

    Minority Interest

    In connection with tax planning for the development of the Company's
Lexington Avenue property, 100 shares of $.01 par value preferred stock was sold
by 59th Street Corporation (a wholly-owned subsidiary of the Company) to Vornado
on August 1, 2001 for $1,200,000. The non-convertible preferred stock entitles
the holder to cumulative 10% dividends payable semi-annually and is redeemable
at any time at the option of 59th Street Corporation. On December 28, 2001, 59th
Street Corporation redeemed this issue and paid a $49,000 dividend.

 10.  COMMITMENTS AND CONTINGENCIES

    The Company carries comprehensive liability and all risk property insurance
(fire, flood, extended coverage and rental loss insurance) with respect to its
assets. The Company's all risk insurance policies in effect before September 11,
2001 included coverage for terrorist acts, except for acts of war. Since
September 11, 2001, insurance companies are excluding terrorists acts from
coverage in all risk policies. The Company is unlikely to be able to obtain all
risk insurance which includes coverage for terrorists acts when policies renew
in 2002. Therefore, the risk of financial loss in the case of terrorist acts is
the Company's, which loss could be material.

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

    In June 1997, the Kings Plaza Regional Shopping Center (the "Center"),
commissioned an Environmental Study and Contamination Assessment Site
Investigation (the Phase II "Study") to evaluate and delineate environmental
conditions disclosed in a Phase I study. The results of the Study indicate the
presence of petroleum and bis (2-ethylhexyl) phthalate contamination in the soil
and groundwater. The Company has delineated the contamination and has developed
a remediation approach. The New York State Department of Environmental
Conservation ("NYDEC") has approved a portion of the remediation approach. The
Company accrued $2,000,000 in previous years ($1,830,000 has been paid as of
December 31, 2001) for its estimated obligation with respect to the clean up of
the site, which includes costs of (i) remedial investigation, (ii) feasibility
study, (iii) remedial design, (iv) remedial action and (v) professional fees.
Based upon revised estimates, the Company accrued an additional $675,000 in the
second quarter of 2001. If the NYDEC insists on a more extensive remediation
approach, the Company could incur additional obligations.

    The majority of the contamination may have resulted from activities of third
parties; however, the sources of the contamination have not been fully
identified. Although the Company is pursuing claims against any potentially
responsible third parties, there can be no assurance that such parties will be
identified, or if identified, whether these potentially responsible third
parties will be solvent. In addition, the costs associated with pursuing any
potentially responsible parties may be cost prohibitive. The Company has not
recorded an asset as of December 31, 2001 for potential recoveries of
environmental remediation costs from other parties.

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

    Letters of Credit

    Approximately $7,900,000 in standby letters of credit were issued at
December 31, 2001.

                                      -32-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

11. STOCK OPTION PLAN

    Under the Omnibus Stock Plan (the "Plan"), approved by the Company's
stockholders on May 22, 1996, directors, officers, key employees, employees of
Vornado Realty Trust and any other person or entity as designated by the Omnibus
Stock Plan Committee are eligible to be granted incentive share options and
non-qualified options to purchase common shares. Options granted are at prices
equal to 100% of the market price of the Company's shares at the date of grant,
vest on a graduated basis, becoming fully vested 36 months after grant and
expire ten years after grant. The Plan also provides for the award of Stock
Appreciation Rights, Performance Shares and Restricted Stock, as defined.

    If compensation cost for Plan awards had been determined based on fair value
at the grant dates, net income and income per share would have been reduced to
the pro forma amounts below, for the years ended December 31, 2001, 2000 and
1999:

<TABLE>
<CAPTION>
                                2001               2000              1999
                           --------------     --------------    --------------
<S>                        <C>                <C>               <C>
Net income:
         As reported       $   27,386,000     $    5,197,000    $    5,524,000
         Pro forma         $   25,851,000     $    3,662,000    $   (1,414,000)

Net income per share
  applicable to common
  shareholders:
         As reported       $         5.48     $         1.04    $         1.10
         Pro forma         $         5.17     $          .73    $         (.28)
</TABLE>

    The fair value of each option grant is estimated on the date of grant using
an option-pricing model with the following weighted-average assumptions used for
grants in the period ended December 31, 1999 (no options were granted in the
year ended December 31, 2001 or 2000):

<TABLE>
<CAPTION>
                                                          1999
                                                        -------
<S>                                                     <C>
                Expected Volatility                         38%
                Expected Life                           5 years
                Risk-free interest rate                   6.45%
                Expected dividend yield                      0%
</TABLE>

    A summary of the Plan's status, and changes during the years ended December
31, 2001, 2000 and 1999 are presented below:

<TABLE>
<CAPTION>
                                    December 31, 2001        December 31, 2000      December 31, 1999
                                  ---------------------   ----------------------  ---------------------
                                              Weighted-                Weighted-              Weighted-
                                               Average                  Average                Average
                                              Exercise                 Exercise               Exercise
                                   Shares      Price       Shares       Price      Shares      Price
                                  -------     --------    --------     --------   --------    --------
<S>                                <C>        <C>         <C>          <C>        <C>         <C>
Outstanding at January 1           105,000    $  70.38    955,000      $  71.66    350,000    $  73.88
Granted                                 --          --         --            --    605,000       70.38
Exercised                               --          --         --            --         --          --
Converted to Stock
   Appreciation Rights                  --          --   (850,000)        71.82         --          --
                                  --------               --------                 --------

Outstanding at December 31         105,000    $  70.38    105,000      $  70.38    955,000    $  71.66
                                  ========    ========   ========      ========   ========    ========

Weighted-average fair value of
   options granted (per option)   $     --               $     --                 $  40.81
                                  ========               ========                 ========
</TABLE>


                                      -33-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


     The following table summarizes information about options outstanding under
the Plan at December 31, 2001:

<TABLE>
<S>                                                                               <C>
           Options outstanding:
                Number outstanding at December 31, 2001                             105,000
                Weighted-average remaining contractual life                        7.2 Years
                Weighted-average exercise price                                   $  70.375
           Options exercisable:
                Number exercisable at December 31, 2001                              70,350
                Weighted-average exercise price                                   $  70.375

           Shares available for future grant at December 31, 2001 were 895,000.
</TABLE>

     On June 5, 2000, the Board of Directors approved the conversion of 850,000
stock options of two officers/directors into equivalent stock appreciation
rights (SARs). The SARs have the same vesting terms and strike prices as the
options. Accounting for SARs is reflected in the statement of operations,
whereas the accounting for stock options is not. Since the stock price at
December 31, 2001 is less than the strike price, no expense is included in the
statement of operations for the year ended December 31, 2001. SARs, unlike
options, are not aggregated under the REIT rules.

12.  INCOME PER SHARE

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

<TABLE>
<CAPTION>
                                                                  December 31,
                                                  -------------------------------------------
                                                      2001            2000            1999
                                                  -----------     -----------     -----------
<S>                                               <C>             <C>             <C>
Numerator:
     Income before extraordinary item .......     $23,852,000     $ 5,197,000     $ 5,524,000
     Extraordinary item .....................       3,534,000              --              --
                                                  -----------     -----------     -----------

     Net income .............................     $27,386,000     $ 5,197,000     $ 5,524,000
                                                  ===========     ===========     ===========

Denominator
     Denominator for basic income per share -
        weighted average shares .............       5,000,850       5,000,850       5,000,850
     Effect of dilutive securities:
        Employee stock options ..............              --           4,927          22,072
                                                  -----------     -----------     -----------

    Denominator for diluted income per share-
        adjusted weighted average shares and
        assumed conversions .................       5,000,850       5,005,777       5,022,922
                                                  ===========     ===========     ===========

INCOME PER COMMON SHARE -
     BASIC AND DILUTED:
     Income before extraordinary item .......     $      4.77     $      1.04     $      1.10
     Extraordinary item .....................             .71              --              --
                                                  -----------     -----------     -----------
     Net income per common share ............     $      5.48     $      1.04     $      1.10
                                                  ===========     ===========     ===========
</TABLE>




                                      -34-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


13.  SUMMARY OF QUARTERLY RESULTS (UNAUDITED)
     (amounts in thousands except per share amounts)



<TABLE>
<CAPTION>
                                                                       NET INCOME (LOSS) PER
                                                                          COMMON SHARE (1)
                                                                   ------------------------------
                               REVENUE       NET INCOME (LOSS)        BASIC            DILUTED
                               -------       -----------------        -----            -------
<S>                           <C>            <C>                   <C>               <C>
2001
March 31..............        $  16,890      $    25,607  (2)      $     5.12        $      5.12
June 30...............           17,062            2,070                  .41                .41
September 30..........           16,420            2,242                  .45                .45
December 31...........           18,971           (2,533) (3)            (.51)              (.51)

2000
March 31..............        $  15,086      $     1,427           $      .29        $       .28
June 30...............           16,088              233  (4)             .05                .05
September 30..........           16,382           (5,423) (4)           (1.08)             (1.08)
December 31...........           16,409            8,960  (4)            1.79               1.79
</TABLE>



(1)  The total for the year may differ from the sum of the quarters as a result
     of weighting.

(2)  Includes a gain on the sale of the Fordham Road property of $19,026 and an
     extraordinary gain from the early extinguishment of debt of $3,534.

(3)  Includes of a charge of (i) $3,058 resulting from the write off of
     architectural and engineering costs associated with the development plans
     at Paramus prior to the IKEA ground lease, and (ii) a charge of $2,030 from
     the write-off of professional fees resulting from the termination of the
     spin-off of Alexander's Tower LLC.

(4)  Net of Stock Appreciation Rights (SARs) expense of $983 and $5,881 in the
     second and third quarter of 2000, respectively. The fourth quarter of 2000
     includes $6,864 representing the reversal of the SARs expense previously
     recognized during 2000.




                                      -35-
<PAGE>
                                    PART III


Item 10.    Directors and Executive Officers of the Registrant


     Information resulting from directors and executive officers of the Company
will be contained in a definitive Proxy Statement involving the election of
directors which the Company will file with the Securities and Exchange
Commission pursuant to Regulation 14A under the Securities Exchange Act of 1934,
as amended, not later than 120 days after December 31, 2001, and such
information is incorporated herein by reference. Information resulting from
Executive Officers of the Registrant appears on page 10 of this Annual Report on
Form 10-K.

Item 11.    Executive Compensation

     Information resulting from executive compensation will be contained in the
Proxy Statement referred to above in Item 10, "Directors and Executive Officers
of the Registrant", and such information is incorporated herein by reference.

Item 12.    Security Ownership of Certain Beneficial Owners and Management

     Information resulting from security ownership of certain beneficial owners
and management will be contained in the Proxy Statement referred to in Item 10,
"Directors and Executive Officers of the Registrant", and such information is
incorporated herein by reference.


Item 13.    Certain Relationships and Related Transactions


     Information resulting from certain relationships and related transactions
will be contained in the Proxy Statement referred to in Item 10, "Directors and
Executive Officers of the Registrant", and such information is incorporated
herein by reference.




                                      -36-
<PAGE>
                                     PART IV

ITEM 14.    Exhibits, Financial Statement Schedules, and Reports on Form 8-K

            (a)    Documents filed as part of this Report

                   1.    The consolidated financial statements are set forth in
                         Item 8 of this Annual Report on Form 10-K.

                   2.    Financial Statement Schedules:

            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.

<TABLE>
<CAPTION>
                                                                                         Pages in this
                                                                                         Annual Report
                                                                                         on Form 10-K
                                                                                         ------------
<S>                                                                                      <C>
         Schedule II - Valuation and Qualifying Accounts - years ended
            December 31, 2001, 2000 and 1999                                                  39
         Schedule III - Real Estate and Accumulated Depreciation as of
            December 31, 2001                                                                 40
</TABLE>

                   All other consolidated financial schedules are omitted
because they are inapplicable, not required, or the information is included
elsewhere in the consolidated financial statements or the notes thereto.

                   3.    Exhibits

                         See Exhibit Index on page 42

            (b)    Reports on Form 8-K

                   During the last quarter of the period covered by this Annual
Report on Form 10-K, no reports on Form 8-K were filed.




                                      -37-
<PAGE>
                                   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.


                                        By:        /s/ Patrick T. Hogan
                                              ----------------------------------
                                                       Patrick T. Hogan
                                              Vice President and Chief Financial
                                                           Officer

                                        Date: March 11, 2002
                                              ----------------------------------




         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.

<TABLE>
<CAPTION>
    Signature                                      Title                       Date
    ---------                                      -----                       ----
<S>                                 <C>                                   <C>
/s/ Steven Roth                     Chief Executive Officer and Director  March 11, 2002
-------------------------
    Steven Roth                         (Principal Executive Officer)


/s/ Michael D. Fascitelli           President and Director                March 11, 2002
-------------------------
    Michael D. Fascitelli


/s/ Thomas R. DiBenedetto           Director                              March 11, 2002
-------------------------
    Thomas R. DiBenedetto


/s/ David Mandelbaum                Director                              March 11, 2002
-------------------------
    David Mandelbaum


/s/  Stephen Mann                   Director                              March 11, 2002
-------------------------
    Stephen Mann


/s/ Arthur I. Sonnenblick           Director                              March 11, 2002
-------------------------
    Arthur I. Sonnenblick


/s/ Neil Underberg                  Director                              March 11, 2002
-------------------------
    Neil Underberg


/s/ Richard West                    Director                              March 11, 2002
-------------------------
    Richard West


/s/ Russell B. Wight, Jr.           Director                              March 11, 2002
-------------------------
    Russell B. Wight, Jr.
</TABLE>




                                      -38-
<PAGE>
                        ALEXANDER'S INC. AND SUBSIDIARIES

                                   SCHEDULE II
                        VALUATION AND QUALIFYING ACCOUNTS

<TABLE>
<CAPTION>
               Column A                       Column B          Column C                  Column D                 Column E
--------------------------------------      ------------     ---------------  ---------------------------------    --------
(amounts in thousands)                         Balance          Additions                Deductions                 Balance
                                            at Beginning     Charged Against  ---------------------------------     at End
Description                                    of Year          Operations          Description          Amount     of Year
-----------                                    -------          ----------          -----------          ------     -------
<S>                                            <C>               <C>          <C>                        <C>       <C>
Year Ended December 31, 2001:
    Deducted from accounts receivable,                                        Uncollectible accounts
      allowance for doubtful accounts          $  722            $  365           written-off            $  158    $    929
                                               ======            ======                                  ======    ========

Year Ended December 31, 2000:
    Deducted from accounts receivable                                         Uncollectible accounts
      allowance for doubtful accounts          $  314            $  413           written-off            $    5    $    722
                                               ======            ======                                  ======    ========

Year Ended December 31, 1999:
    Deducted from accounts receivable,                                        Uncollectible accounts
      allowance for doubtful accounts          $  841            $  (68)          written-off            $  459    $    314
                                               ======            ======                                  ======    ========
</TABLE>




                                      -39-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES
             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                DECEMBER 31, 2001
                             (amounts in thousands)


<TABLE>
<CAPTION>
      Column A              Column B                 Column C                 Column D
-----------------------------------------------------------------------------------------
                                             Initial Cost to Company(2)
                                            ----------------------------

                                                             Building,          Cost
                                                             Leaseholds     Capitalized
                                                           and Leasehold   Subsequent to
    Description           Encumbrances         Land         Improvements   Acquisition(3)
    -----------           ------------         ----         ------------   --------------
<S>                      <C>                <C>            <C>             <C>
Commercial Property:
New York City,
  New York:
Third Avenue             $        --        $     1,201     $     4,437     $        --
Rego Park I                   82,000              1,647           8,953          57,641
Rego Park II                      --              3,906           1,467             451
Flushing                          --                 --           1,660           1,553
Lexington Ave.                15,000             14,432          12,355         186,044
Kings Plaza
Regional Shopping
Center                       221,831                497           9,542         113,432
                         -----------        -----------     -----------     -----------

Total New York               318,831             21,683          38,414         359,121


New Jersey - Paramus          68,000              1,441              --          10,313

Other Properties                  --                599           1,804           3,367
                                            -----------     -----------     -----------

Other secured debt           129,000(1)
                         -----------

TOTAL                    $   515,831        $    23,723     $    40,218     $   372,801
                         ===========        ===========     ===========     ===========
</TABLE>

<TABLE>
<CAPTION>
      Column A                                    Column E                                 Column F        Column G
---------------------------------------------------------------------------------------------------------------------
                              Gross Amount at which Carried at Close of Period
                         -----------------------------------------------------------
                                                         Capitalized
                                          Buildings,       Expenses                      Accumulated
                                          Leasehold        and Pre-                      Depreciation
                                        and Leaseholds   development                         and            Date of
    Description              Land        Improvements       Costs          Total(3)      Amortization    Construction
    -----------              ----        ------------       -----          --------      ------------    ------------
<S>                      <C>            <C>              <C>             <C>             <C>             <C>
Commercial Property:
New York City,
  New York:
Third Avenue             $     1,201     $     4,437     $        --     $     5,638     $     3,239        1928
Rego Park I                    1,647          66,594              --          68,241          17,428        1959
Rego Park II                   3,906           1,566             352           5,824           1,468        1965
Flushing                          --           3,213              --           3,213           1,681        1975(4)
Lexington Ave.                48,379              --         164,452         212,831              --          --
Kings Plaza
Regional Shopping
Center                        24,483          98,422             566         123,471          30,761        1970
                         -----------     -----------     -----------     -----------     -----------

Total New York                79,616         174,232         165,370         419,218          54,577


New Jersey - Paramus          11,754              --              --          11,754              --          --

Other Properties                 599           1,804           3,367           5,770           1,806        Various
                         -----------     -----------     -----------     -----------     -----------

Other secured debt


TOTAL                    $    91,969     $   176,036     $   168,737     $   436,742     $    56,383
                         ===========     ===========     ===========     ===========     ===========
</TABLE>

<TABLE>
<CAPTION>
      Column A             Column H         Column I
-------------------------------------------------------


                                         Life on Which
                                        Depreciation in
                                         Latest Income
                             Date         Statement is
    Description          Acquired(2)        Computed
    -----------          -----------        --------
<S>                      <C>            <C>
Commercial Property:
New York City,
  New York:
Third Avenue                 1992            40 years
Rego Park I                  1992         15-39 years
Rego Park II                 1992         38-39 years
Flushing                     1992            26 years
Lexington Ave.               1992            --
Kings Plaza
Regional Shopping
Center                       1992          7-50 years


Total New York


New Jersey - Paramus         1992            --

Other Properties             1992          7-25 years


Other secured debt


TOTAL

</TABLE>


     (1)  The loans, which were scheduled to mature in March 2001, have been
          extended to April 2003. The loans are secured by liens on the
          Company's assets and/or pledges of the stock of subsidiaries owning
          the assets and/or guarantees of such subsidiaries and the parent;
          except for the Kings Plaza Regional Shopping Center, Paramus and Rego
          Park I. These liens are subordinate to first mortgages.

     (2)  Initial cost is as of May 15, 1992 (the date on which the Company
          commenced real estate operations) unless acquired subsequent to that
          date. See Column H.

     (3)  The net basis in the Company's assets and liabilities for tax purposes
          is approximately $71,000 lower than the amount reported for financial
          statement purposes.

     (4)  Date represents lease acquisition date.

     (5)  The Fordham Road property was sold on January 12, 2001 and the related
          encumbrance was satisfied. At December 31, 2000 such property was
          classified as "asset held for sale."




                                      -40-
<PAGE>
                       ALEXANDER'S, INC. AND SUBSIDIARIES

             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                             (amounts in thousands)



<TABLE>
<CAPTION>
                                                            December 31,
                                               --------------------------------------
                                                 2001           2000          1999
                                               ---------      ---------     ---------
<S>                                            <C>            <C>           <C>
REAL ESTATE:

Balance at beginning of period                 $ 404,935      $ 327,004     $ 290,686
Additions during the period:
    Buildings, leaseholds and
    leasehold improvements                         3,118          1,541         6,846
Capitalized expenses and development costs        45,372         76,390        29,472
                                               ---------      ---------     ---------
                                                 453,425        404,935       327,004
Less: asset sold and written-off                  16,683             --            --
                                               ---------      ---------     ---------

Balance at end of period                       $ 436,742      $ 404,935     $ 327,004
                                               =========      =========     =========

ACCUMULATED DEPRECIATION:

Balance at beginning of period                 $  58,884      $  55,199     $  51,529

    Additions charged to operating
     expenses                                      4,535          3,685         3,670
                                               ---------      ---------     ---------
                                                  63,419         58,884        55,199
Less: asset sold                                  (7,036)            --            --
                                               ---------      ---------     ---------

Balance at end of period                       $  56,383      $  58,884     $  55,199
                                               =========      =========     =========
</TABLE>




                                      -41-
<PAGE>
                               Index to Exhibits

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

<TABLE>
<CAPTION>
    EXHIBIT
      NO.                                                                                                           PAGE
      ---                                                                                                           ----
<S>                  <C>                                                                                            <C>
3(i)                 -- Certificate of Incorporation, as amended.  Incorporated herein by reference from Exhibit
                          3.0 to the Registrant's Current Report on Form 8-K dated September 21, 1993 ............   *

3(ii)                -- By-laws, as amended.  Incorporated herein by reference from Exhibit 10.1 to the
                          Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2000.    *

10(i)(A)(1)          -- Agreement, dated as of December 4, 1985, among Seven Thirty One Limited Partnership
                          ("731 Limited Partnership"), Alexander's Department Stores of Lexington Avenue, Inc.,
                          the Company, Emanuel Gruss, Riane Gruss and Elizabeth Goldberg (collectively, the
                          "Partners").  Incorporated herein by reference from Exhibit 10(i)(F)(1) to the
                          Registrant's Form 10-K for the fiscal year ended July 26, 1986 .........................   *

10(i)(A)(2)          -- Amended and Restated Agreement of Limited Partnership in the 731 Limited Partnership,
                          dated as of August 21, 1986, among the Partners.  Incorporated herein by reference from
                          Exhibit 1 to the Registrant's Current Report on Form 8-K, dated August 21, 1986 ........   *

10(i)(A)(3)          -- Third Amendment to Amended and Restated Agreement of Limited Partnership dated December
                          30, 1994, among the Partners.  Incorporated herein by reference from Exhibit
                          10(i)(A)(3) to the Registrant's Form 10-K for the fiscal year ended December 31, 1994 ..   *

10(i)(B)(1)          -- Promissory Note Modification Agreement, dated October 4, 1993, between Alexander's
                          Department Stores of New Jersey, Inc. and New York Life Insurance Company ("New York
                          Life").  Incorporated herein by reference from Exhibit 10(i)(3)(a) to the Registrant's
                          Form 10-K for the Transition Period August 1, 1993 to December 31, 1993 ................   *

10(i)(B)(2)          -- Mortgage Modification Agreement, dated October 4, 1993, by Alexander's Department Stores
                          of New Jersey, Inc. and New York Life.  Incorporated herein by reference from Exhibit
                          10(i)(E)(3)(a) to the Registrant's Form 10-K for the Transition Period August 1, 1993
                          to December 31, 1993 ...................................................................   *

10(i)(C)             -- Credit Agreement, dated March 15, 1995, among the Company and Vornado Lending Corp.
                          Incorporated herein by reference from Exhibit 10(i)(C) to the Registrant's Form 10-K
                          for the fiscal year ended December 31, 1994 ............................................   *

10(i)(C)(1)          -- Modification and Extension of Credit Agreement, dated as of March 13, 2000, between
                          Vornado Lending L.L.C., as Lender, and Alexander's Inc., as Borrower.  Incorporated
                          herein by reference from Exhibit 10(i)(C)(1) to the Registrant's Quarterly Report on
                          Form 10-Q for the fiscal quarter ended June 30, 2000 ...................................   *

10(i)(C)(2)          -- First Modification and Extension of Credit Agreement dated as of March 15, 2000 between
                          Alexander's, Inc., as borrower, and Vornado Lending L.L.C. as lender. Incorporated
                          herein by reference from Exhibit 10(i) (c) 2 to the Registrant's Quarterly Report on
                          Form 10-Q for the fiscal quarter ended June 30, 2001 ...................................   *

10 (i)(C)(3)         -- First Note Modification and Extension Agreement dated as of March 15, 2000 between
                          Alexander's Inc. as borrower, and Vornado Lending L.L.C., as lender.  Incorporated
                          herein by reference from Exhibit 10(i) (c) 3 to the Registrant's Quarterly Report on
                          Form 10-Q for the fiscal quarter ended June 30, 2001 ...................................   *
</TABLE>

----------

* Incorporated by reference



                                      -42-
<PAGE>
<TABLE>
<CAPTION>
    EXHIBIT
      NO.                                                                                                           PAGE
      ---                                                                                                           ----
<S>                  <C>                                                                                            <C>
10(i)(C)(4)          -- Third Modification and Extension of Credit Agreement dated as of March 15, 2000 between
                          Alexander's Inc. as borrower, and Vornado Lending L.L.C., as lender.  Incorporated
                          herein by reference from Exhibit 10(i) (c) 4 to the Registrant's Quarterly Report on
                          Form 10-Q for the fiscal quarter ended June 30, 2001 ...................................   *

10(i)(C)(5)          -- Third Note Modification and Extension Agreement dated as of March 15, 2000 between
                          Alexander's Inc. as borrower, and Vornado Lending L.L.C., as lender.  Incorporated
                          herein by reference from Exhibit 10(i) (c) 5 to the Registrant's Quarterly Report on
                          Form 10-Q for the fiscal quarter ended June 30, 2001 ...................................   *

10(i)(D)             -- Credit Agreement, dated March 15, 1995, among the Company and First Union Bank, National
                          Association.  Incorporated herein by reference from Exhibit 10(i)(D) to the
                          Registrant's Form 10-K for the fiscal year ended December 31, 1994 .....................   *

10(i)(D)(1)          --  Modification and Extension of Credit Agreement, dated as of April 14, 2000, between
                          First Union National Bank, as lender, and Alexander's Inc., as borrower.  Incorporated
                          herein by reference from Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q
                          for the fiscal quarter ended March 31, 2000 ............................................   *

10(i)(D)(2)          -- Pledge and Security Agreement for Transferable Development Rights, dated as of April 14,
                          2000, between First Union National Bank, as secured party, 731 Limited Partnership, as
                          assignor, and Alexander's, Inc. as borrower, Incorporated herein by reference from
                          Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter
                          ended March 31, 2000 ...................................................................   *

10 (i)(D)(3)         -- Modification and Extension of Credit Agreement dated as of April 27, 2001 between
                          Alexander's, Inc. as borrower, and First Union National Bank, as lender. Incorporated
                          herein by reference from Exhibit 10(i) (D) 3  to  the  Registrant's  Quarterly  Report
                          on  Form 10-Q for the fiscal quarter ended June 30, 2001 ...............................   *

10 (i)(D)(4)         -- Note Modification and Extension Agreement of Credit Agreement dated as of April 27, 2001
                          between Alexander's, Inc. as borrower, and First Union National Bank, as lender.
                          Incorporated herein by reference from Exhibit 10(i) (D) 4 to the Registrant's Quarterly
                          Report on Form 10-Q for the fiscal quarter ended June 30, 2001 .........................   *

10(i)(E)             -- Amended, Restated and Consolidated Mortgage and Security Agreement, dated May 12, 1999,
                          between The Chase Manhattan Bank, as mortgagee, and Alexander's Rego Shopping Center
                          Inc., as mortgagor.  Incorporated herein by reference from Exhibit 10(i)(E) to the
                          Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2000 ..   *

10(i)(G)(1)          -- Real Estate Retention Agreement dated as of July 20, 1992, between Vornado Realty Trust
                          and Keen Realty Consultants, Inc., each as special real estate consultants, and the
                          Company.  Incorporated herein by reference from Exhibit 10(i)(O) to the Registrant's
                          Form 10-K for the fiscal year ended July 25, 1992 ......................................   *

10(i)(G)(2)          -- Extension Agreement to the Real Estate Retention Agreement, dated as of February 6,
                          1995, between the Company and Vornado Realty Trust.  Incorporated herein by reference
                          from Exhibit 10(i)(G)(2) to the Registrant's Form 10-K for the fiscal year ended
                          December 31, 1994 ......................................................................   *
</TABLE>

----------

* Incorporated by reference




                                      -43-
<PAGE>
<TABLE>
<CAPTION>
    EXHIBIT
      NO.                                                                                                           PAGE
      ---                                                                                                           ----
<S>                  <C>                                                                                            <C>
10(i)(H)             -- Management and Development Agreement, dated as of February 6, 1995, between Vornado
                          Realty Trust and the Company, on behalf of itself and each subsidiary listed therein.
                          Incorporated herein by reference from Exhibit 10.1 to the Registrant's Current Report
                          on Form 8-K dated February 6, 1995 .....................................................   *

10(i)(I)             -- Commitment letter, dated as of February 6, 1995, between Vornado Realty Trust and the
                          Company.  Incorporated herein by reference from Exhibit 10.3 to the Registrant's
                          Current Report on Form 8-K dated February 6, 1995 ......................................   *

10(i)(J)(1)          -- First Amendment to Mortgage and Security Agreement, dated as of February 24, 2000,
                          between Banc of America Commercial Finance Corporation, as mortgagee, and Alexander's
                          of Fordham Road, Inc., as mortgagor.  Incorporated herein by reference from Exhibit
                          10.1 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended
                          March 31, 2000 .........................................................................   *

10(i)(J)(2)          -- Amended and Restated Promissory Note (Secured), dated as of February 24, 2000, between
                          Banc of America Commercial Finance Corporation, as lender, and Alexander's of Fordham
                          Road, Inc., as borrower.  Incorporated herein by reference from Exhibit 10.1 to the
                          Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2000 .   *

10(i)(J)(3)          -- Trigger Agreement, dated as of February 24, 2000, between Banc of America Commercial
                          Finance Corporation, as lender, and Alexander's, Inc., as guarantor.  Incorporated
                          herein by reference from Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q
                          for the fiscal quarter ended March 31, 2000 ............................................   *

10(i)(K)             -- Term Loan Agreement dated as of June 18, 1998 among Alexanders' Kings Plaza Center,
                          Inc., Kings Plaza Corp., and Alexander's Department Stores of Brooklyn, Inc., as
                          Borrower, Union Bank of Switzerland, as Lender.  Incorporated herein by reference from
                          Exhibit 10 to the Registrant's Form 10-Q for the fiscal quarter ended June 30, 1998 ....   *

10(ii)(A)(3)         -- Agreement of Lease for Rego Park, Queens, New York, between Alexander's, Inc. and Sears
                          Roebuck & Co.  Incorporated herein by reference from Exhibit 10.1 to the Registrant's
                          Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1994 ..............   *

10(ii)(A)(4)(a)      -- Lease for Roosevelt Avenue, Flushing, New York, dated as of December 1, 1992, between
                          the Company, as landlord, and Caldor, as tenant.  Incorporated herein by reference from
                          Exhibit (ii)(E)(7) to the Registrant's Form 10-K for the fiscal year ended July 25, 1992   *

10(ii)(A)(4)(b)      -- First Amendment to Sublease for Roosevelt Avenue, Flushing, New York, dated as of
                          February 22, 1995 between the Company, as sublandlord, and Caldor, as tenant.
                          Incorporated herein by reference from Exhibit 10(ii)(A)(8)(b) to the Registrant's Form
                          10-K for the fiscal year ended December 31, 1994 .......................................   *

10(ii)(A)(5)         -- Lease Agreement, dated March 1, 1993 by and between the Company and Alex Third Avenue
                          Acquisition Associates.  Incorporated by reference from Exhibit 10(ii)(F) to the
                          Registrant's Form 10-K for the fiscal year ended July 31, 1993 .........................   *

10(ii)(A)(6)         -- Agreement of Lease for Rego Park, Queens, New York, between the Company and Marshalls of
                          Richfield, MN., Inc., dated as of March 1, 1995.  Incorporated herein by reference from
                          Exhibit 10(ii)(A)(12)(a) to the Registrant's Form 10-K for the fiscal year ended
                          December 31, 1994 ......................................................................   *
</TABLE>

----------

* Incorporated by reference




                                      -44-
<PAGE>
<TABLE>
<CAPTION>
    EXHIBIT
      NO.                                                                                                           PAGE
      ---                                                                                                           ----
<S>                  <C>                                                                                            <C>
10(ii)(A)(7)         -- Guaranty, dated March 1, 1995, of the Lease described in Exhibit 10(ii)(A)(6)(a) above
                          by the Company.  Incorporated herein by reference from Exhibit 10(ii)(A)(12)(b) to the
                          Registrant's Form 10-K for the fiscal year ended December 31, 1994 .....................   *

10(iii)(B)           -- Employment Agreement, dated February 9, 1995, between the Company and Stephen Mann.
                          Incorporated herein by reference from Exhibit 10(iii)(B) to the Registrant's Form 10-K
                          for the fiscal year ended December 31, 1994 ............................................   *

10(iv)(A)            -- Registrant's Omnibus Stock Plan, as amended, dated May 28, 1997.  Incorporated herein by
                          reference from Exhibit 10 to the Registrant's Form 10-Q for the fiscal quarter ended
                          June 30, 1997 ..........................................................................   *

10(v)(A)(1)          -- Amended and Restated Consolidated Mortgage and Security Agreement dated as of May 31,
                          2001 among Alexander's Kings Plaza L.L.C. as mortgagor, Alexander's of King L.L.C., as
                          mortgagor and Kings Parking L.L.C., as mortgagor, collectively borrower, to Morgan
                          Guaranty Trust Company of New York, as mortgagee. Incorporated herein by reference from
                          Exhibit 10(v) A1 to the Registrant's Quarterly Report on Form 10-Q for the fiscal
                          quarter ended June 30, 2001 ............................................................   *

10(v)(A)(2)          -- Amended, Restated and Consolidated Promissory Note, dated as of May 31, 2001 by and
                          between Alexander's Kings Plaza L.L.C., Alexander's of Kings L.L.C. and Kings Parking
                          L.L.C., collectively borrower, and Morgan Guaranty Trust Company of New York, lender.
                          Incorporated herein by reference from Exhibit 10(v) A2 to the Registrant's Quarterly
                          Report on Form 10-Q for the fiscal quarter ended June 30, 2001 .........................   *

10(v)(A)(3)          -- Cash Management Agreement dated as of May 31, 2001 by and between Alexander's Kings
                          Plaza L.L.C., Alexander's of Kings L.L.C. and Kings Parking L.L.C., collectively
                          borrower, and Morgan Guaranty Trust Company of New York, lender. Incorporated herein by
                          reference from Exhibit 10(v) A3 to the Registrant's Quarterly Report on Form 10-Q for
                          the fiscal quarter ended June 30, 2001 .................................................   *

10(v)(A)(4)          -- Note modification and Severance Agreement dated as of November 26, 2001, between
                          Alexander's Kings Plaza L.L.C., Alexander's of Kings L.L.C. and Kings Parking L.L.C.,
                          collectively borrower and JP Morgan Chase Bank of New York, lender .....................

10(v)(B)             -- Agreement of Lease dated as of April 30, 2001 between Seven Thirty One Limited
                          Partnership, landlord, and Bloomberg L.P., tenant. Incorporated herein by reference
                          from Exhibit 10(v) B to the Registrant's Quarterly Report on Form 10-Q for the fiscal
                          quarter ended June 30, 2001 ............................................................   *

10(v)(C)(1)          -- Loan Agreement dated as of October 2, 2001 by and between ALX of Paramus LLC, as
                          borrower, and SVENSKA HANDELSBANKEN AB (publ), as lender ...............................

10(v)(C)(2)          -- Mortgage, Security Agreement and Fixture Financing Statement dated as of October 2, 2001
                          by and between ALX of Paramus LLC, as borrower, and SVENSKA HANDELSBANKEN AB (publ), as
                          lender .................................................................................

10(v)(C)(3)          -- Environmental undertaking letter dated as of October 2, 2001 by and between ALX of
                          Paramus LLC, as borrower, and SVENSKA HANDELSBANKEN AB (publ), as lender ...............

10(v)(C)(4)          -- Lease dated as of October 2, 2001 by and between ALX of Paramus LLC, as Landlord, and
                          IKEA Property, Inc. as Tenant ..........................................................
</TABLE>

----------

* Incorporated by reference




                                      -45-
<PAGE>
<TABLE>
<CAPTION>
    EXHIBIT
      NO.                                                                                                           PAGE
      ---                                                                                                           ----
<S>                  <C>                                                                                            <C>
12                      Consolidated Ratios of Earnings to Fixed Charges and Combined Fixed
                          Charges and Preferred Stock Dividend Requirements.

13                      Not applicable.

16                      Not applicable.

18                      Not applicable.

19                      Not applicable.

21                      Subsidiaries of Registrant.

22                      Not applicable.

23                      Consent of Deloitte & Touche LLP.

25                      Not applicable.

29                      Not applicable.
</TABLE>


                                      -46-