Alexander's (ALX) Plunges 12% on Q2 Earnings Dismay – What’s Fueling the Selloff?

Summary
• Alexander’s Inc. (ALX) slumps 12.14% intraday to $215.48, a 33.7% drop from its 52-week high of $260.84
• Q2 2025 net income declines 27.0% to $6.1 million ($1.19/share) vs. $8.4 million ($1.63/share) in Q2 2024
• FFO falls 13.2% to $14.8 million ($2.88/share), with six-month FFO down 16.3%
• Bollinger Bands and MACD signal bearish momentum as shares trade near 52-week low of $184.76
Today’s collapse in Alexander’s shares reflects a stark divergence from its sector peers, as the REIT’s Q2 earnings report reveals deteriorating fundamentals. The stock’s sharp drop from its intraday high of $247.16 to a low of $211.74 underscores immediate investor panic over declining net income, revenues, and FFO—a critical metric for REITs. With the 200-day moving average at $215.88 now acting as a critical psychological threshold, the market is now asking: Is this a buying opportunity or a warning shot?

Q2 Earnings Report Sparks Investor Flight
Alexander’s Q2 2025 results reveal a 27.0% year-over-year drop in net income to $6.1 million ($1.19/share) and a 13.2% decline in FFO to $14.8 million ($2.88/share). Six-month net income fell 24.7% to $18.4 million, while six-month FFO dropped 16.3% to $35.6 million. These metrics, coupled with a 3.4% decline in Q2 revenue to $51.6 million, signal operational headwinds for the NYC-focused REIT. The lack of geographic diversification and the broader Manhattan commercial real estate slump likely amplified the selloff. With FFO—a proxy for cash flow—shrinking at an accelerating rate, investors are now pricing in a prolonged earnings contraction.

Equity REITs Mixed as Sector Leader Simon Property Group (SPG) Rises
While Alexander’s shares plummet, the Equity REITs sector remains mixed. Sector leader Simon Property Group (SPG) rose 1.32% intraday, outperforming ALX’s collapse. This divergence highlights ALX’s unique vulnerabilities: its five NYC properties are exposed to localized market pressures, unlike SPG’s diversified mall portfolio. The REIT sector’s uneven performance underscores the importance of geographic and asset-type diversification in mitigating risk during macroeconomic shifts.

Technical Deterioration Warrants Cautious Positioning
• 200-day moving average: $215.88 (below current price); RSI: 55.4 (neutral); MACD: 6.38 (bearish divergence)
• Bollinger Bands: Price near lower band ($225.08), suggesting oversold conditions
• 30-day support: $225.18–$226.01; 200-day support: $213.56–$215.03
With Alexander’s shares trading near critical technical levels, traders should monitor the $215.88 200-day average and $213.56 200-day support. The RSI at 55.4 and MACD bearish crossover indicate short-term weakness, though the long-term bullish trend (current price above 200-day MA) suggests a potential rebound. Absent actionable options data, leveraged ETFs are unavailable for direct use. A disciplined approach would involve using stop-loss orders below $213.56 to mitigate further downside risk.

Backtest Alexander'S Stock Performance
The backtest of ALX's performance after a -12% intraday plunge shows mixed results. While the 3-day win rate is 50.43%, the 10-day win rate is lower at 46.85%, and the 30-day win rate is 50.94%. This suggests that ALX tends to recover moderately in the short term, but there is a higher probability of positive returns in the longer term.

ALX at Crossroads: Rebound or Reckoning?
Alexander’s shares face a critical juncture as they hover near the 200-day moving average and key support levels. While the 55.4 RSI and bearish MACD suggest near-term vulnerability, the stock’s long-term bullish trend (above 200-day MA) offers a glimmer of hope. Sector leader Simon Property Group (SPG) rising 1.32% highlights the contrast between diversified and concentrated REITs. Investors must now decide: cut losses below $213.56 or hold for a potential bounce above $225.08. With FFO declining at an accelerating rate, the next earnings report in Q3 2025 will be pivotal. Watch for $213.56 breakdown or Q3 guidance clarity.