Core Viewpoint - Highwoods Properties, Inc. has agreed to acquire Advance Auto Parts Tower, a 20-story, Class AA office tower in Raleigh, enhancing its portfolio in a high-demand area for premier office spaces [1][3]. Group 1: Acquisition Details - The Advance Auto Parts Tower spans approximately 346,000 square feet and is fully leased with a weighted average lease term of 8.2 years as of December 31, 2024 [1][2]. - The acquisition will be financed through proceeds from a recent non-core asset sale in Tampa, FL [2]. Group 2: Strategic Importance - This acquisition aligns with the growing demand for high-quality office spaces as companies emphasize return-to-office mandates [3]. - Highwoods aims to expand its presence in the North Hills mixed-use Best Business District, which has attracted numerous businesses and residents [4]. Group 3: Company Strategy and Performance - Highwoods follows a disciplined capital-recycling strategy, focusing on disposing of non-core assets and reinvesting in premium acquisitions and development projects [4]. - The company has seen its shares rise by 16.1% over the past year, outperforming the industry growth of 5.7% [5].

Core Viewpoint - Highwoods Properties, Inc. has agreed to acquire the Advance Auto Parts Tower, a 20-story, Class AA office building in Raleigh, which is fully leased and strategically located adjacent to another Highwoods property, the CAPTRUST Tower [2][4] Group 1: Acquisition Details - The Advance Auto Parts Tower spans 346,000 square feet and is LEED-gold certified, with a current weighted average lease term of 8.2 years as of December 31, 2024 [2] - The acquisition is expected to close within the next 30 days, with the company posting non-refundable earnest money deposits of $20 million [4] - The funding for this acquisition will be on a leverage-neutral basis, utilizing proceeds from the recent sale of non-core assets in Tampa [3] Group 2: Strategic Importance - The acquisition is seen as a strategic move to enhance Highwoods' presence in the North Hills mixed-use Best Business District, which has strong demographics attracting businesses and residents [4] - The company anticipates that this acquisition will be immediately accretive to cash flows and improve portfolio quality, while maintaining a neutral impact on near-term funds from operations (FFO) [4] Group 3: Company Overview - Highwoods Properties, Inc. is a publicly-traded real estate investment trust (REIT) focused on owning, developing, acquiring, leasing, and managing properties in prime business districts across several major cities [5] - The company's mission emphasizes creating exceptional environments and experiences to deliver greater value to customers and shareholders [5]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported FFO of $0.85 per share, aligning with expectations, while the full year FFO was $3.61 per share, nearly 2% higher than the midpoint of the original outlook [13][42] - The company experienced a net loss of $3.7 million in Q4, which included a $24.6 million impairment charge [42] - The balance sheet remains strong with no debt maturities until 2026 and a pro forma debt-to-EBITDA ratio reduced to 6.1 times from 6.3 times [43][45] Business Line Data and Key Metrics Changes - The company leased 1.3 million square feet of second-generation space in Q4, including 370,000 square feet of new leases, contributing to a total of 4 million square feet leased for the year, the highest in a decade [14][30] - The weighted average lease term reached a record high of 7.5 years, indicating strong tenant commitment [14][31] Market Data and Key Metrics Changes - Nationally, the U.S. office market saw a decline in the overall vacancy rate for the first time in three years, with a 24% quarter-over-quarter increase in leasing activity [27][28] - The company ended the year with an occupancy rate of 87.1%, significantly higher than the market average, and 89.9% when including signed but not yet commenced leases [31] Company Strategy and Development Direction - The company is optimistic about future growth, citing significant upside potential in its core operating portfolio and development pipeline, with expectations of $30 million in NOI growth above the 2025 outlook [11][24] - The company plans to focus on organic growth through leasing high-quality properties and is targeting up to $150 million in additional non-core dispositions to fund future investments [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for their markets, noting limited new supply and strong demand for high-quality office space [23][39] - The company anticipates a temporary trough in 2025 before resuming consistent same-store growth, with an average occupancy outlook of 85% to 86.5% [22][48] Other Important Information - The company has proactively raised $215 million through non-core dispositions and equity issuance to enhance its capital position for future acquisitions [10][44] - The development pipeline is now 59% leased, up from 49% in the previous quarter, indicating strong leasing momentum [20] Q&A Session Summary Question: Leasing outlook and larger vacancies - Management clarified that no leasing is included in the occupancy outlook for the four core assets with significant vacancies, with major leases not commencing until 2026 [58][60] Question: Acquisition targets and funding - The company is targeting both stabilized and opportunistic assets for acquisition, emphasizing a balanced approach to funding through both disposition proceeds and equity [65][70] Question: Impairment charge and asset sales - Management confirmed that the impairment charge on 625 Liberty Avenue is part of a long-term strategy to exit non-core markets like Pittsburgh, with no immediate updates on a sale [75] Question: Changes in leasing strategy - The leasing strategy remains robust, focusing on a mix of small and larger tenants, with a successful spec suite program in place [78] Question: Federal government leases - The company has diverse exposure to federal leases, primarily with essential agencies, and does not foresee significant risk from potential government changes [83] Question: Market performance expectations - Management expects all markets to recover, with Nashville and Charlotte showing strong performance, while Raleigh has been softer but is improving [92] Question: Land purchase at Century Center - The acquisition of land at Century Center allows for consolidated ownership and long-term flexibility, with potential for monetization of undeveloped land [95][96] Question: CapEx trends and dividend coverage - CapEx is expected to remain elevated due to leasing activities, with coverage likely to be lumpy in the short term but ultimately driving higher NOI and cash flow [106][108] Question: Development start conditions - Development starts are unlikely this year unless market rents exceed current expectations by 20% to 30% [110]

Core Insights - Highwoods Properties Inc. (HIW) reported fourth-quarter 2024 funds from operations (FFO) per share of 85 cents, matching the Zacks Consensus Estimate but lower than the prior year's 99 cents [1] - The company experienced healthy leasing activity with rent growth, although higher interest expenses impacted results [2] Financial Performance - Rental and other revenues for the fourth quarter were $205.5 million, exceeding the Zacks Consensus Estimate of $204.2 million but slightly below the prior year's $206.9 million [2] - For full-year 2024, FFO per share was $3.61, down from $3.83 in the previous year but in line with the consensus estimate; rental and other revenues decreased by 1% to $825.9 million, below the consensus mark of $828.9 million [3] Leasing Activity - Highwoods' average in-place cash rent increased by 3.1% per square foot year-over-year; however, the in-service portfolio occupancy declined by 90 basis points to 87.1% [4] - The company reported second-generation leasing activity of 1.3 million square feet in the fourth quarter, with a dollar-weighted average lease term of 6.8 years and GAAP rent growth of 12.2% [5] Expenses and Interest - Rental property and other expenses rose to $71.5 million, a 2.8% increase year-over-year; interest expenses increased by 5.6% to $37.3 million [6] Portfolio Activity - During the quarter, Highwoods sold a 170,000-square-foot non-core office building for $21.4 million and acquired land in Atlanta for $50.6 million; post-quarter, the company sold 616,000 square feet of non-core office buildings for $145 million [7] Balance Sheet - The company's total available liquidity exceeded $900 million, with a net debt-to-adjusted EBITDAre ratio of 6.29, up from 6.13 at the end of 2023 [8] 2025 Guidance - Highwoods anticipates 2025 FFO per share between $3.26 and $3.44, with the consensus estimate at $3.43; same-property cash NOI is expected to decline between -4.0% and -2.0% [9]

Core Insights - Highwoods Properties reported revenue of $205.53 million for the quarter ended December 2024, a decrease of 0.6% year-over-year, with an EPS of $0.85 compared to $0.36 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $204.19 million by 0.65%, while the EPS met the consensus estimate [1] Financial Performance Metrics - Lease termination fees, net, were reported at $1 million, significantly higher than the average estimate of $0.32 million, reflecting a year-over-year increase of 105.5% [4] - Contractual rents, net, amounted to $174.01 million, slightly above the average estimate of $173.98 million, but showed a year-over-year decline of 1.1% [4] - Other miscellaneous operating revenues were reported at $10.72 million, close to the estimated $10.79 million, with a year-over-year increase of 7.4% [4] - Cost recoveries billed under lease arrangements, net, were $17.51 million, exceeding the average estimate of $17.02 million, representing a year-over-year increase of 2.9% [4] - Straight-line rental income, net, was reported at $2.29 million, below the estimated $2.51 million, showing a significant year-over-year decrease of 34.3% [4] - Net Earnings Per Share (Diluted) was -$0.03, compared to the average estimate of $0.09 [4] Stock Performance - Over the past month, shares of Highwoods Properties returned +0.2%, while the Zacks S&P 500 composite increased by +4.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Highwoods Properties (HIW) came out with quarterly funds from operations (FFO) of $0.85 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.99 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this real estate investment trust would post FFO of $0.88 per share when it actually produced FFO of $0.90, delivering a surprise of 2.27%.Over the last four quarters, the company has surpassed consensus FFO estimates two times.Hig ...

Core Insights - Highwoods Properties, Inc. has released its fourth quarter and full year 2024 results, indicating ongoing performance in the office real estate sector [1] Company Overview - Highwoods Properties, Inc. is a publicly-traded, fully-integrated office real estate investment trust (REIT) headquartered in Raleigh, focusing on owning, developing, acquiring, leasing, and managing properties in prime business districts across several major cities including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa [2] - The company's vision is to lead the evolution of commercial real estate, aiming to create environments and experiences that inspire collaboration and achievement among customers and their teams, ultimately delivering greater value to shareholders [2]

Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from [ ] to [ ] HIGHWOODS PROPERTIES, INC. (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION North Carolina 000-21731 56-1869557 150 Fayetteville Street, Suite 1400 Raleigh, NC ...

Core Insights - Highwoods Properties, Inc. has announced significant investment and financing transactions that were completed in Q4 2024 and early 2025 [1] Group 1: Asset Dispositions - The company sold non-core buildings in Raleigh and Tampa for total gross proceeds of $166.4 million, with $21.4 million from Q4 2024 and the remainder in early 2025 [2] - The sold properties include one office building of 170,000 square feet in North Raleigh and three buildings totaling 616,000 square feet in Tampa, which are 88% occupied and expected to generate $13.6 million in GAAP net operating income and $13.0 million in cash net operating income in 2025 [2] Group 2: Land Acquisition - In Q4 2024, the company acquired the fee simple title to the land beneath its Century Center assets for $50.6 million, consolidating ownership of the buildings and land for long-term flexibility [3] Group 3: Equity Raise - The company sold 1.59 million shares of common stock at an average gross sales price of $32.71 per share, raising net proceeds of $51.3 million [4] Group 4: Management Commentary - The President and CEO highlighted that the recent asset sales reflect the company's strategy of divesting non-core assets to reinvest in higher-quality buildings, with nearly $220 million in proceeds enhancing the balance sheet and providing capital for future growth opportunities in 2025 [5]

________________________________________ Conference CallWednesday, February 12th, at 11:00 A.M._________________________________________ RALEIGH, N.C., Jan. 09, 2025 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) will release its fourth quarter 2024 results on Tuesday, February 11th, after the market closes. A conference call will be held the next day, Wednesday, February 12th at 11:00 A.M. Eastern time. For US/Canada callers, dial (833) 470-1428 and enter access code 441734. International caller ...