| Revenue Recognition |
Revenue Recognition The following is a summary of revenue sources for the three and nine months ended September 30, 2026 and 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | (Amounts in thousands) | | 2026 | | 2025 | | 2026 | | 2025 | | Lease revenues | | $ | 69,316 | | | $ | 50,944 | | | $ | 172,518 | | | $ | 153,172 | | | Parking revenue | | 1,043 | | | 1,214 | | | 3,470 | | | 3,628 | | | Tenant services | | 1,697 | | | 1,266 | | | 4,191 | | | 3,128 | | | Rental revenues | | $ | 72,056 | | | $ | 53,424 | | | $ | 180,179 | | | $ | 159,928 | |
The components of lease revenues for the three and nine months ended September 30, 2026 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | (Amounts in thousands) | | 2026 | | 2025 | | 2026 | | 2025 | | Fixed lease revenues | | $ | 52,106 | | | $ | 33,922 | | | $ | 120,967 | | | $ | 102,285 | | | Variable lease revenues | | 17,210 | | | 17,022 | | | 51,551 | | | 50,887 | | | Lease revenues | | $ | 69,316 | | | $ | 50,944 | | | $ | 172,518 | | | $ | 153,172 | |
Bloomberg L.P. (“Bloomberg”) leases approximately 952,000 square feet at our 731 Lexington Avenue property and accounted for revenue of $99,004,000 and $96,655,000 for the nine months ended September 30, 2026 and 2025, respectively, representing approximately 55% and 60% of our rental revenues in each period, respectively. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data. In May 2024, Alexander’s and Bloomberg entered into an agreement to extend Bloomberg’s leases that were scheduled to expire in February 2029 for a term of eleven years to February 2040. In connection with the lease extension, Bloomberg was entitled to a $113,618,000 tenant fund which is accounted for as a lease incentive under GAAP. Accordingly, there was an initial deferred lease incentive asset of $113,618,000, which is amortized as a reduction to rental revenues over the remaining term of the lease, and a corresponding liability. These amounts are included in “Deferred leasing costs, net” and “Lease incentive liability,” on our consolidated balance sheets. On March 31, 2026, Alexander’s and Bloomberg entered into a lease amendment providing Bloomberg with a rent abatement of $56,809,000 for the period of April 1, 2026 to December 1, 2026, which reduces the tenant fund by a corresponding amount over that period from $113,618,000 to $56,809,000. On June 26, 2026, we entered into a lease modification agreement with Kohl’s for its 135,000 square foot store at our Rego Park shopping center providing options for us and Kohl’s to early terminate the lease in August 2026, subject to a termination payment of approximately $29,000,000 from Kohl’s. Simultaneously, we entered into a 15-year lease, plus renewal options, with Target for that space. On August 2, 2026, Kohl’s terminated its lease and paid the remaining $25,100,000 of the $29,000,000 termination payment. Other than Bloomberg and Kohl’s (due to the recognition of the termination payment), no other tenant accounted for more than 10% of our rental revenues for the three and nine months ended September 30, 2026.
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