AL ALX Alexander's, Inc. Loading... : Investor Sentiment and Bull/Bear Views

Piper Sandler raises its price target for Alexander's Inc to $212, reflecting an upgraded forecast for the real estate investment trust.

ALX has a derisked thesis from a Bloomberg lease, providing downside protection and upside optionality, making it a favorable long.

Bill is long Alexander's because the December 29 debt restructuring on the Bloomberg retail condo effectively cut a non-recourse mortgage to about 44 cents on the dollar, saved roughly $17.2 million of annual interest, gave Alexander control of the retail condo, and left a sum-of-the-parts value around $340 per share versus a $240 share price. The main asset is the Bloomberg HQ triple-net lease through 2040 with contractual escalators: $78.7 million now, $88.3 million in 2028, and a 2030 reset between $85.7 million and $104 million. The other assets, including the Alexander apartment building, Rego Park II, and the Rego Park I development site, are effectively free at today's price. Governance concerns are mitigated because Roth and insiders own about 46% of ALX versus about 10.3% of Vornado and are more aligned through ALX ownership and dividends. The short thesis looks stale after debt maturities were refinanced, dividend coverage should approach 100% after the 2028 step-up, and high short interest plus a potential special dividend create squeeze risk.