Financial Analysis

COMMITMENTS AND CONTINGENCIES Insurance W e maintain general liability insurance with limits of $300,000,000 per occurrence and per property, which includes communicable disease coverage, and all-risk property and rental value insurance coverage with limits of $1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties and excluding communicable disease coverage. Fifty Ninth Street Insurance Company, LLC (FNSIC), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (NBCR) acts, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027. Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to FNSIC. For NBCR acts, FNSIC is responsible for a deductible of $348,000 and 20% of the balance of a covered loss, and the Federal government is responsible for the remaining 80% of a covered loss. We are ultimately responsible for any loss incurred by FNSIC. We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism or other events. However, we cannot antic …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following is a summary of revenue sources for the years ended December 31, 2025, 2024 and 2023. Year Ended December 31, (Amounts in thousands) 2025 2024 2023 Lease revenues $ 204,181 $ 217,656 $ 216,468 Parking revenue 4,941 4,751 4,456 Tenant services 4,061 3,967 4,038 Rental revenues $ 213,183 $ 226,374 $ 224,962

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STOCK-BASED COMPENSATION We account for stock-based compensation in accordance with ASC Topic 718, Compensation Stock Compensation (ASC 718). Our 2016 Omnibus Stock Plan (the Plan) provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, deferred stock units (DSUs) and performance shares, as defined, to the directors, officers and employees of the Company and Vornado. In May 2025, we granted each of the members of our Board of Directors 346 DSUs with a market value of $75,000 per grant. The grant date fair value of these awards was $56,250 per grant, or $394,000 in the aggregate, in accordance with ASC 718. The DSUs entitle the holders to receive shares of the Companys common stock without the payment of any consideration. The DSUs vested immediately and accordingly, were expensed on the date of grant, but the shares of common stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Companys Board of Directors or until a later date selected by the grantee. As of December 31, 2025, there were 28,666 DSUs outstanding and 477,121 shares were available for future grant under the Plan. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS ASC Topic 820, Fair Value Measurement (ASC 820) defines fair value and establishes a framework for measuring fair value. ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities that are highly liquid and are actively traded in secondary markets; Level 2 observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Financial Assets and Liabilities Measured at Fair Value Financial assets measured at fair value on our consolidated balance sheet as of December 31, 2025 consist of an interest rate cap, which is presented in the table below based on its level in the fair value hierarchy. There were no financial liabilities measured at fair value as of December 31, 2025. As of December 31, 2025 (Amounts in thousands) Total Level 1 Level 2 Level 3 Interest rate cap (inclu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

LEASES As Lessor We lease space to tenants under operating leases in an office building and in retail centers. The rental terms range from approximately 5 to 25 years. The leases provide for the payment of fixed base rents payable monthly in advance as well as reimbursements of real estate taxes, insurance and maintenance costs. Retail leases may also provide for the payment by the lessee of additional rents based on a percentage of their sales. We also lease residential space at The Alexander apartment tower which generally have a 1 or 2 year lease terms. Future undiscounted cash flows under our contractual non-cancelable operating leases are as follows: (Amounts in thousands) As of December 31, 2025 For the year ending December 31, 2026 $ 136,291 2027 129,760 2028 137,236 2029 52,793 2030 126,724 Thereafter 1,065,582 These amounts do not include reimbursements or additional rents based on a percentage of retail tenants sales. Bloomberg accounted for reve nue of $129,317,000, $125,349,000 and $120,351,000 in the years ended December 31, 2025 , 2024 and 2023, respectively, representing approximately 61%, 55% and 54% of our rental revenues in each year, respectively. No other tenant accounted for more than 10% of o ur rental revenues. 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 assessmen …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

In December 2023, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We adopted this update effective December 15, 2025. The adoption of ASU 2023-09 did not have a material impact on our disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (ASU 2025-01). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permi …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

MULTIEMPLOYER BENEFIT PLANS Our subsidiaries make contributions to certain multiemployer defined benefit plans (Multiemployer Pension Plans) and health plans (Multiemployer Health Plans) for our union represented employees, pursuant to the respective collective bargaining agreements. Multiemployer Pension Plans Multiemployer Pension Plans differ from single-employer pension plans in that (i) contributions to multiemployer plans may be used to provide benefits to employees of other participating employers and (ii) if other participating employers fail to make their contributions, each of our subsidiaries may be required to bear their pro rata share of unfunded obligations. If a participating subsidiary withdraws from a plan in which it participates, it may be subject to a withdrawal liability. As of December 31, 2025, our subsidiaries participation in these plans were not significant to our consolidated financial statements. In the years ended December 31, 2025, 2024 and 2023 our subsidiaries contributed $276,000, $267,000 and $215,000, respectively, towards Multiemployer Pension Plans. Our subsidiaries contributions did not represent more than 5% of total employer contributions in any of these plans for the years ended December 31, 2025, 2024 and 2023 . Multiemployer Health Plans Multiemployer Health Plans in which our subsidiaries participate provide health benefits to eligible active and retired employees. In the years ended December 31, 2025, 2024 and 2023 our subsidiaries …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

4. RELATED PARTY TRANSACTIONS Vornado As of December 31, 2025, Vornado owne d 32.4% of our outstanding common stock. We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable. Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (Interstate), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado. As of December 31, 2025 , Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.0% of our outstanding common stock, in addition to the 2.3% they indirectly own through Vornado. Management and Development Agreements We pay Vornado an annual management fee equal to the sum of (i) $2,800,000, (ii) 2% of gross revenue from the Rego Park II shopping center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $387,000, escalating at 3% per annum, for managing the common area of 731 Lexington Avenue. Vornado is also entitled to a development fee equal to 6% of development costs, as defined. Leasing and Other Agreements Vornado also provides us with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2 …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION The following is a summary of revenue sources for the years ended December 31, 2025, 2024 and 2023. Year Ended December 31, (Amounts in thousands) 2025 2024 2023 Lease revenues $ 204,181 $ 217,656 $ 216,468 Parking revenue 4,941 4,751 4,456 Tenant services 4,061 3,967 4,038 Rental revenues $ 213,183 $ 226,374 $ 224,962 The components of lease revenues for the years ended December 31, 2025, 2024 and 2023 are as follows: Year Ended December 31, (Amounts in thousands) 2025 2024 2023 Fixed lease revenues $ 136,521 $ 147,903 $ 147,569 Variable lease revenues 67,660 69,753 68,899 Lease revenues $ 204,181 $ 217,656 $ 216,468

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"SEGMENT INFORMATION We have determined that our properties, which are considered our operating segments, have similar economic characteristics and meet the criteria that permit these operating segments to be aggregated into one reportable segment (the leasing, management, development and redevelopment of properties in New York City). Net operating income (NOI) represents total revenues less operating expenses. The Companys chief operating decision maker (""CODM"") is its Chief Executive Officer, who considers NOI to be the financial measure of segment profit and loss for making decisions on how to allocate resources and assessing the performance of the segment. Asset information by segment is not reported as the CODM does not use this measure to assess segment performance or to make resource allocation decisions. Below is a summary of financial information for the years ended December 31, 2025, 2024 and 2023. Year Ended December 31, (Amounts in thousands) 2025 2024 2023 Rental revenues $ 213,183 $ 226,374 $ 224,962 Real estate tax expense (61,665) (59,256) (57,722) Other segment expenses (1) (44,711) (43,984) (43,488) Total operating expenses (106,376) (103,240) (101,210) NOI $ 106,807 $ 123,134 $ 123,752 (1) Includes various expenses associated with operating our properties including but not limited to ground rent, insurance, repairs and maintenance and utilities. Below is a reconciliation of NOI to net income for the years ended December 31, 2025, 2024 and 2023. Year Ended …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Certain prior year balances have been reclassified in order to conform to the current period presentation. Recently Issued Accounting Literature In December 2023, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We adopted this update effective December 15, 2025. The adoption of ASU 2023-09 did not have a material im …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Insurance We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, which includes communicable disease coverage, and all-risk property and rental value insurance coverage with limits of $1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties and excluding communicable disease coverage. Fifty Ninth Street Insurance Company, LLC (FNSIC), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (NBCR) acts, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027. Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to FNSIC. For NBCR acts, FNSIC is responsible for a $348,000 deductible and 20% of the balance of a covered loss, and the Federal government is responsible for the remaining 80% of a covered loss. We are ultimately responsible for any loss incurred by FNSIC. We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism or other events. However, we cannot anticipat …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following is a summary of revenue sources for the three and nine months ended September 30, 2025 and 2024. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2025 2024 2025 2024 Lease revenues $ 50,944 $ 53,244 $ 153,172 $ 163,878 Parking revenue 1,214 1,168 3,628 3,483 Tenant services 1,266 1,263 3,128 3,103 Rental revenues $ 53,424 $ 55,675 $ 159,928 $ 170,464

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Stock-Based Compensation We account for stock-based compensation in accordance with Accounting Standards Codification (ASC) Topic 718, Compensation Stock Compensation (ASC 718). Our 2016 Omnibus Stock Plan (the Plan) provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, deferred stock units (DSUs) and performance shares, as defined, to the directors, officers and employees of the Company and Vornado. In May 2025, we granted each of the members of our Board of Directors 346 DSUs with a market value of $75,000 per grant. The grant date fair value of these awards was $56,250 per grant, or $394,000 in the aggregate, in accordance with ASC 718. The DSUs entitle the holders to receive shares of the Companys common stock without the payment of any consideration. The DSUs vested immediately and accordingly, were expensed on the date of grant, but the shares of common stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Companys Board of Directors or until a later date selected by the grantee. As of September 30, 2025, there were 28,666 DSUs outstanding and 477,121 shares were available for future grant under the Plan. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements ASC Topic 820, Fair Value Measurement (ASC 820) defines fair value and establishes a framework for measuring fair value. ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities that are highly liquid and are actively traded in secondary markets; Level 2 observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. 8. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value Financial assets measured at fair value on our consolidated balance sheet as of September 30, 2025 consist of an interest rate cap, which is presented in the table below based on its level in the fair value hierarchy. There were no financial liabilities measured at fair value as of September 30, 2025. As of September 30, 2025 (Amounts in thousands) Total Level …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We have evaluated the impact of this standard and do not expect it to have a material impact on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (ASU 2025-01). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permi …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Related Party Transactions Vornado As of September 30, 2025, Vornado owned 32.4% of our outstanding common stock. We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable. Management and Development Agreements We pay Vornado an annual management fee equal to the sum of (i) $2,800,000, (ii) 2% of gross revenue from the Rego Park II shopping center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $387,000, escalating at 3% per annum, for managing the common area of 731 Lexington Avenue. Vornado is also entitled to a development fee equal to 6% of development costs, as defined. Leasing and Other Agreements Vornado also provides us with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2% of rent for the eleventh through the twentieth year of a lease term, and 1% of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants. Under the agreements in effect prior to May 1, 2024, in the event third-party real estate brokers were used, the fees to Vornado increased by 1% and Vornado was responsible for the fees to the third-party real estate brokers (Third-Party Lease Commissions). On May 1, 2024, our Board of Directors approved amendments to the leasing agreements, subject to applicable lender consents, pursuant to …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Recognition The following is a summary of revenue sources for the three and nine months ended September 30, 2025 and 2024. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2025 2024 2025 2024 Lease revenues $ 50,944 $ 53,244 $ 153,172 $ 163,878 Parking revenue 1,214 1,168 3,628 3,483 Tenant services 1,266 1,263 3,128 3,103 Rental revenues $ 53,424 $ 55,675 $ 159,928 $ 170,464 The components of lease revenues for the three and nine months ended September 30, 2025 and 2024 are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2025 2024 2025 2024 Fixed lease revenues $ 33,922 $ 35,608 $ 102,285 $ 112,542 Variable lease revenues 17,022 17,636 50,887 51,336 Lease revenues $ 50,944 $ 53,244 $ 153,172 $ 163,878 Bloomberg L.P. (Bloomberg) accounted for revenue of $96,655,000 and $93,179,000 for the nine months ended September 30, 2025 and 2024, respectively, representing approximately 60% and 55% of our rental revenues in each period, respectively. No other tenant accounted for more than 10% of our rental revenues. 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 Bloombergs creditworthiness, we receive certain confidential financial information and metrics fr …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information We have determined that our properties, which are considered our operating segments, have similar economic characteristics and meet the criteria that permit these operating segments to be aggregated into one reportable segment (the leasing, management, development and redevelopment of properties in New York City). Net operating income (NOI) represents total revenues less operating expenses. The Companys chief operating decision maker (""CODM"") is its Chief Executive Officer, who considers NOI to be the financial measure of segment profit and loss for making decisions on how to allocate resources and assessing the performance of the reportable segment. Asset information by segment is not reported as the CODM does not use this measure to assess segment performance or to make resource allocation decisions. Below is a summary of financial information for the three and nine months ended September 30, 2025 and 2024. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2025 2024 2025 2024 Rental revenues $ 53,424 $ 55,675 $ 159,928 $ 170,464 Real estate tax expense (15,755) (15,018) (45,439) (43,931) Other segment expenses (1) (10,938) (11,428) (32,752) (32,769) Total operating expenses (26,693) (26,446) (78,191) (76,700) NOI $ 26,731 $ 29,229 $ 81,737 $ 93,764 (1) Includes various expenses associated with operating our properties including but not limited to ground rent, insurance, repairs and maintenance and …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing