Alexander’s, Inc. Operating Results for the Quarter Ended March 31, 2007

Net income for the quarter ended March 31, 2007 was $32.2 million, or $6.32 per diluted share, compared to a net loss of $18.9 million, or $3.75 per diluted share, for the quarter ended March 31, 2006. Funds from operations (“FFO”) for the quarter ended March 31, 2007 was $37.7 million, or $7.39 per diluted share, compared to Negative FFO of $13.6 million, or $2.70 per diluted share, for the quarter ended March 31, 2006.

Net income and FFO for the quarter ended March 31, 2007 include $14.3 million, or $2.81 per diluted share, for the reversal of a portion of the accrual for stock for appreciation rights (“SARs”) compensation expense. Net loss and Negative FFO for the quarter ended March 31, 2006 include $37.5 million for an accrual of SARs compensation expense, partially offset by, $5.0 million for an after-tax net gain from the sale of residential condominium units at 731 Lexington Avenue. These items, in the aggregate, decreased net income and FFO by $32.5 million, or $6.48 per diluted share.