Alexanders (NYSE:ALX) is a thinly traded REIT listed on the NYSE which is controlled and managed by Vornado (NYSE:VNO). The value of its primary asset, an entire square block on the Upper East Side of Manhattan, has a greater value than the entire market capitalization of the stock. The other assets of Alexanders, primarily a large shopping center in a densely populated area of Queens, New York, you basically get for free. Being conservatively managed, they also have a substantial amount of cash, equal to about one quarter of the present market price. ALX is a quality investment, offering safety, moderate growth as well as an $18 annual dividend. It is neglected by the financial community because of it being controlled by another, much larger REIT and having a very small public float.

Alexanders was a chain of NYC department stores, which was acquired by Vornado and its principals, for the value of its land. The department store is long since gone but several of its sites have been developed as successful commercial real estate projects. Vornado has spun off much of its non-Manhattan assets into publicly traded REITs such as Urban Edge (NYSE:UE) but it has never fully acquired ALX or given up control. At present VNO and its principals own 59.8% of the outstanding shares with Franklin Mutual Advisors having 7.53% and The Vanguard Group having 7.10% making a total of 74.11%. Considering that other financial institutions own shares in ALX and assuming other individuals affiliated with VNO and ALX may own shares, the float is extremely thin. This becomes readily apparent when you look at daily trading volume as well as the wide bid/ask spread.

READ FULL ARTICLE HERE