Filing Information Provides essential filing details for Highwoods Properties, Inc. and its Operating Partnership [Registrant Information](index=1&type=section&id=Registrant%20Information) Highwoods Properties, Inc. and Highwoods Realty Limited Partnership filed this Form 10-Q; the Company is a large accelerated filer, the Operating Partnership is non-accelerated - **Highwoods Properties, Inc. (HIW)** is a large accelerated filer, and **Highwoods Realty Limited Partnership** is a non-accelerated filer[5](index=5&type=chunk)[6](index=6&type=chunk) - **108,073,015 shares** of Common Stock outstanding as of July 22, 2025[6](index=6&type=chunk) [Explanatory Note](index=3&type=section&id=Explanatory%20Note) Clarifies report terminology, defines the relationship between Highwoods Properties, Inc. and Highwoods Realty Limited Partnership, and outlines property-level operational information scope - The Company conducts its activities through the Operating Partnership and is its sole general partner[10](index=10&type=chunk) - Property-level operational information includes in-service wholly owned properties and in-service properties owned by consolidated and unconsolidated joint ventures (at our share); development projects are not considered in-service until completed and stabilized (occupancy generally exceeds **93%**)[11](index=11&type=chunk) PART I - FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20%28unaudited%29) Presents unaudited condensed consolidated financial statements for Highwoods Properties, Inc. and Highwoods Realty Limited Partnership, including balance sheets, income, comprehensive income, equity/capital, and cash flows [Highwoods Properties, Inc. Financial Statements](index=5&type=section&id=HIGHWOODS%20PROPERTIES%2C%20INC.%20Financial%20Statements) Provides unaudited consolidated financial statements for Highwoods Properties, Inc., detailing financial position, performance, and cash flows Consolidated Balance Sheets (Highwoods Properties, Inc.) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----- | :--------------------------- | :------------------------------- | | Total Assets | $6,058,711 | $6,029,355 | | Total Liabilities | $3,615,595 | $3,598,110 | | Total Equity | $2,376,238 | $2,365,454 | Consolidated Statements of Income (Highwoods Properties, Inc.) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Rental and other revenues | $200,600 | $204,738 | $400,983 | $416,013 | | Total operating expenses | $148,653 | $147,661 | $297,549 | $304,266 | | Net income | $19,221 | $64,770 | $119,221 | $91,983 | | Net income available for common stockholders | $18,270 | $62,870 | $115,719 | $88,934 | | Basic EPS | $0.17 | $0.59 | $1.07 | $0.84 | | Diluted EPS | $0.17 | $0.59 | $1.07 | $0.84 | Consolidated Statements of Cash Flows (Highwoods Properties, Inc.) | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | $162,855 | $202,365 | | Net cash used in investing activities | $(82,156) | $(55,960) | | Net cash used in financing activities | $(74,368) | $(141,169) | | Net increase in cash and cash equivalents and restricted cash | $6,331 | $5,236 | [Highwoods Realty Limited Partnership Financial Statements](index=12&type=section&id=HIGHWOODS%20REALTY%20LIMITED%20PARTNERSHIP%20Financial%20Statements) Provides unaudited consolidated financial statements for Highwoods Realty Limited Partnership, detailing financial position, performance, and cash flows Consolidated Balance Sheets (Highwoods Realty Limited Partnership) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----- | :--------------------------- | :------------------------------- | | Total Assets | $6,058,711 | $6,029,355 | | Total Liabilities | $3,615,595 | $3,598,110 | | Total Capital | $2,349,522 | $2,336,643 | Consolidated Statements of Income (Highwoods Realty Limited Partnership) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Rental and other revenues | $200,600 | $204,738 | $400,983 | $416,013 | | Total operating expenses | $148,653 | $147,661 | $297,549 | $304,266 | | Net income | $19,221 | $64,770 | $119,221 | $91,983 | | Net income available for common unitholders | $18,635 | $64,151 | $118,040 | $90,748 | | Basic EPS | $0.17 | $0.60 | $1.08 | $0.84 | | Diluted EPS | $0.17 | $0.60 | $1.08 | $0.84 | Consolidated Statements of Cash Flows (Highwoods Realty Limited Partnership) | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | $162,855 | $202,365 | | Net cash used in investing activities | $(82,156) | $(55,960) | | Net cash used in financing activities | $(74,368) | $(141,169) | | Net increase in cash and cash equivalents and restricted cash | $6,331 | $5,236 | [Notes to Condensed Consolidated Financial Statements](index=19&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Detailed notes to unaudited condensed consolidated financial statements cover business, accounting policies, capital, leases, investments, real estate, intangibles, debt, noncontrolling interests, fair value, share-based payments, assets held for sale, EPS/unit, and segment information [Note 1. Description of Business and Significant Accounting Policies](index=19&type=section&id=Note%201.%20Description%20of%20Business%20and%20Significant%20Accounting%20Policies) - Highwoods Properties, Inc. is a fully integrated office REIT operating in Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa; as of June 30, 2025, the company owned or had an interest in **27.3 million rentable square feet** of in-service properties and **1.4 million rentable square feet** under development[58](index=58&type=chunk) - The Company owns **98.0%** of the Common Units in the Operating Partnership as of June 30, 2025[59](index=59&type=chunk) - The Company issued **44,819 shares** of Common Stock under equity distribution agreements for net proceeds of **$1.4 million** during the three and six months ended June 30, 2025[60](index=60&type=chunk) [Note 2. Leases](index=20&type=section&id=Note%202.%20Leases) Rental and Other Revenues from Operating Leases | Period | 2025 (in thousands) | 2024 (in thousands) | | :----- | :------------------ | :------------------ | | Three Months Ended June 30 | $222,100 | $201,000 | | Six Months Ended June 30 | $392,900 | $408,800 | Variable Lease Payments | Period | 2025 (in thousands) | 2024 (in thousands) | | :----- | :------------------ | :------------------ | | Three Months Ended June 30 | $16,700 | $16,600 | | Six Months Ended June 30 | $33,600 | $39,100 | [Note 3. Investments in and Advances to Affiliates](index=21&type=section&id=Note%203.%20Investments%20in%20and%20Advances%20to%20Affiliates) - The Company has variable interests in several unconsolidated joint ventures (Granite Park Six, 23Springs, McKinney & Olive, Midtown East, 2827 Peachtree) where it is not the primary beneficiary, limiting its risk of loss to the carrying value of its investment balances and/or outstanding loans to the JVs[71](index=71&type=chunk)[73](index=73&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - The Midtown West joint venture is consolidated as the Company is the primary beneficiary, holding an **80.0% interest** and controlling significant activities[79](index=79&type=chunk) [Note 4. Real Estate Assets](index=23&type=section&id=Note%204.%20Real%20Estate%20Assets) - Acquired Advance Auto Parts Tower (**346,000 sq ft** office building in Raleigh) for **$137.9 million** in Q1 2025[81](index=81&type=chunk) - Sold three buildings in Tampa and land in Pittsburgh for **$146.3 million**, recording **$82.2 million** in net gains on disposition in Q1 2025[82](index=82&type=chunk) [Note 5. Intangible Assets and Below Market Lease Liabilities](index=23&type=section&id=Note%205.%20Intangible%20Assets%20and%20Below%20Market%20Lease%20Liabilities) Total Intangible Assets and Below Market Lease Liabilities (Net of Amortization) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------- | :--------------------------- | :------------------------------- | | Deferred leasing costs | $221,609 | $209,967 | | Acquisition-related below market lease liabilities | $14,770 | $16,186 | Amortization of Intangible Assets and Below Market Lease Liabilities | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Amortization of deferred leasing costs | $9,070 | $9,984 | $18,074 | $19,629 | | Amortization of lease incentives | $660 | $550 | $1,305 | $1,243 | | Amortization of above market lease assets | $636 | $794 | $1,234 | $1,596 | | Amortization of below market lease liabilities | $(665) | $(1,130) | $(1,417) | $(2,274) | [Note 6. Mortgages and Notes Payable](index=25&type=section&id=Note%206.%20Mortgages%20and%20Notes%20Payable) Mortgages and Notes Payable (Net) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------- | :--------------------------- | :------------------------------- | | Secured indebtedness | $707,567 | $712,186 | | Unsecured indebtedness | $2,639,626 | $2,595,815 | | Less-unamortized debt issuance costs | $(12,808) | $(14,442) | | Total mortgages and notes payable, net | $3,334,385 | $3,293,559 | - Unused capacity of the **$750.0 million** unsecured revolving credit facility was **$602.9 million** as of June 30, 2025, and **$612.9 million** as of July 22, 2025[86](index=86&type=chunk) - The Company is in compliance with financial covenants for its consolidated debt[87](index=87&type=chunk) [Note 7. Noncontrolling Interests](index=26&type=section&id=Note%207.%20Noncontrolling%20Interests) - Noncontrolling interest in consolidated affiliates relates to a **20.0% interest** in the Midtown West joint venture[89](index=89&type=chunk) Noncontrolling Interests in the Operating Partnership | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Beginning balance | $63,759 | $56,324 | $65,791 | $49,520 | | Adjustment to fair value | $3,829 | $(12) | $927 | $7,467 | | Net income attributable | $365 | $1,281 | $2,321 | $1,814 | | Distributions | $(1,075) | $(1,075) | $(2,151) | $(2,151) | | Total noncontrolling interests | $66,878 | $56,518 | $66,878 | $56,518 | [Note 8. Disclosure About Fair Value of Financial Instruments](index=26&type=section&id=Note%208.%20Disclosure%20About%20Fair%20Value%20of%20Financial%20Instruments) - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1 prices), and Level 3 (unobservable inputs)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[96](index=96&type=chunk) Fair Value Hierarchy as of June 30, 2025 | Category | Total (in thousands) | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | | :------- | :------------------- | :--------------------- | :--------------------- | :--------------------- | | Assets | $7,844 | $1,617 | $6,227 | $0 | | Noncontrolling Interests in OP | $66,878 | $66,878 | $0 | $0 | | Liabilities | $3,209,620 | $1,617 | $3,208,003 | $0 | [Note 9. Share-Based Payments](index=28&type=section&id=Note%209.%20Share-Based%20Payments) Share-Based Compensation Expense | Period | 2025 (in thousands) | 2024 (in thousands) | | :----- | :------------------ | :------------------ | | Three Months Ended June 30 | $1,300 | $1,100 | | Six Months Ended June 30 | $6,300 | $6,000 | - As of June 30, 2025, **$5.6 million** of total unrecognized share-based compensation costs remain, to be recognized over a weighted average remaining contractual term of **2.2 years**[100](index=100&type=chunk) [Note 10. Real Estate and Other Assets Held For Sale](index=28&type=section&id=Note%2010.%20Real%20Estate%20and%20Other%20Assets%20Held%20For%20Sale) Real Estate and Other Assets Held For Sale | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------- | :--------------------------- | :------------------------------- | | Net real estate assets | $0 | $45,802 | | Accrued straight-line rents receivable | $0 | $6,581 | | Deferred leasing costs, net | $0 | $2,784 | | Prepaid expenses and other assets, net | $0 | $242 | | Total assets held for sale | $0 | $55,409 | - As of June 30, 2025, there were no assets held for sale, indicating all previously held-for-sale assets were disposed of[101](index=101&type=chunk) [Note 11. Earnings Per Share and Per Unit](index=29&type=section&id=Note%2011.%20Earnings%20Per%20Share%20and%20Per%20Unit) Company Earnings Per Common Share (Basic & Diluted) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income available for common stockholders | $18,270 | $62,870 | $115,719 | $88,934 | | Basic EPS | $0.17 | $0.59 | $1.07 | $0.84 | | Diluted EPS | $0.17 | $0.59 | $1.07 | $0.84 | Operating Partnership Earnings Per Common Unit (Basic & Diluted) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income available for common unitholders | $18,635 | $64,151 | $118,040 | $90,748 | | Basic EPS | $0.17 | $0.60 | $1.08 | $0.84 | | Diluted EPS | $0.17 | $0.60 | $1.08 | $0.84 | [Note 12. Segment Information](index=30&type=section&id=Note%2012.%20Segment%20Information) - The Company evaluates its business by geographic location, with primary reportable segments including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa[106](index=106&type=chunk) Total Net Operating Income by Segment | Period | 2025 (in thousands) | 2024 (in thousands) | | :----- | :------------------ | :------------------ | | Three Months Ended June 30 | $136,945 | $140,179 | | Six Months Ended June 30 | $272,294 | $281,019 | [Note 13. Subsequent Events](index=32&type=section&id=Note%2013.%20Subsequent%20Events) - On July 24, 2025, the Company declared a cash dividend of **$0.50 per share** of Common Stock, payable on September 9, 2025[112](index=112&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial condition, operations, and cash flows, including strategy, revenue/expense analysis, liquidity, critical accounting, and non-GAAP measures [Disclosure Regarding Forward-Looking Statements](index=33&type=section&id=Disclosure%20Regarding%20Forward-Looking%20Statements) The report contains forward-looking statements, highlighting factors and risks that could cause actual results to differ materially from projections, including customer financial condition, leasing terms, and market conditions - Forward-looking statements are identified by terms like 'may,' 'will,' 'expect,' 'anticipate,' 'estimate,' 'continue'[117](index=117&type=chunk) - Key risks include deteriorating customer financial condition, inability to lease/re-lease space favorably, delays in development/acquisition, excessive supply, market declines, increased interest rates/operating expenses, natural disasters, and liquidity issues[119](index=119&type=chunk) [Executive Summary](index=34&type=section&id=Executive%20Summary) The Company aims to lead commercial real estate evolution by creating inspiring BBD environments, focusing on high-quality workplaces, a strong balance sheet, and portfolio strengthening through development, acquisition, and disposition - Company's vision: to be a leader in the evolution of commercial real estate for the benefit of customers, communities, and investors[121](index=121&type=chunk) - Strategy: own and operate high-quality workplaces in Best Business Districts (BBDs), maintain a strong balance sheet, employ a talented team, and communicate transparently[121](index=121&type=chunk) - Occupancy in the office portfolio decreased from **87.1%** as of December 31, 2024, to **85.6%** as of June 30, 2025, with expected average occupancy for the remainder of 2025 between **85.0%** and **86.0%**[124](index=124&type=chunk) - Annual combined GAAP rents for new and renewal leases signed in Q2 2025 were **$33.63 per rentable square foot**, representing a **17.6% increase** over previous leases[127](index=127&type=chunk) - Top customers (over **3%** of annualized GAAP revenues) as of June 30, 2025, include **Bank of America (3.9%)** and **Asurion (3.5%)**[128](index=128&type=chunk) - Consolidated same property NOI was **$2.9 million (2.1%) lower** in Q2 2025 versus 2024 due to decreased revenues and increased expenses, with expectations for it to be lower for the remainder of 2025[130](index=130&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Details financial performance for Q2 and H1 2025 versus 2024, highlighting changes in rental revenues, operating expenses, interest, other income, property disposition gains, affiliate earnings, and diluted EPS - Rental and other revenues decreased by **$4.1 million (2.0%)** in Q2 2025 compared to Q2 2024, primarily due to property dispositions, lower consolidated same property revenues, and properties taken out of service, partially offset by the Advance Auto Parts Tower acquisition[146](index=146&type=chunk) - Net income decreased from **$64.77 million** in Q2 2024 to **$19.22 million** in Q2 2025[19](index=19&type=chunk) - Diluted EPS decreased by **$0.42** in Q2 2025 compared to Q2 2024[153](index=153&type=chunk) - Gains on disposition of property were **$35.0 million lower** in Q2 2025 compared to Q2 2024[151](index=151&type=chunk) - Rental and other revenues decreased by **$15.0 million (3.6%)** in the first six months of 2025 compared to 2024, primarily due to dispositions, lower same property revenues, and properties taken out of service, partially offset by the Advance Auto Parts Tower acquisition[154](index=154&type=chunk) - Net income increased from **$91.98 million** in H1 2024 to **$119.22 million** in H1 2025[19](index=19&type=chunk) - Diluted EPS increased by **$0.23** in H1 2025 compared to H1 2024[161](index=161&type=chunk) - Gains on disposition of property were **$40.0 million higher** in H1 2025 compared to H1 2024, primarily from Tampa building dispositions[159](index=159&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The Company maintains a conservative balance sheet with ample liquidity, meeting short-term needs via operating cash and credit, and long-term needs via debt/equity and asset dispositions - As of July 22, 2025, the Company had approximately **$32 million** in cash and **$137.0 million** drawn on its **$750.0 million** revolving credit facility[136](index=136&type=chunk) - Leverage ratio (mortgages and notes payable + outstanding preferred stock to undepreciated book value of assets) was **42.5%** as of June 30, 2025[136](index=136&type=chunk) - No debt scheduled to mature prior to 2027, except for a **$200.0 million** unsecured bank term loan maturing in May 2026[140](index=140&type=chunk) - Expected to sell up to **$150 million** of non-core properties during the remainder of 2025[182](index=182&type=chunk) [Critical Accounting Estimates](index=43&type=section&id=Critical%20Accounting%20Estimates) No changes were made to the Company's critical accounting policies during the six months ended June 30, 2025 - No changes were made to critical accounting policies in the six months ended June 30, 2025[184](index=184&type=chunk) [Non-GAAP Information](index=44&type=section&id=Non-GAAP%20Information) Presents non-GAAP financial measures like FFO and NOI, offering a clearer understanding of performance by excluding non-cash items and property sale gains/losses - FFO, FFO available for common stockholders, and FFO per share are non-GAAP metrics considered beneficial for evaluating REIT performance, as they exclude depreciation, amortization, impairments, and gains/losses from property sales[186](index=186&type=chunk) Funds From Operations (FFO) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income | $19,221 | $64,770 | $119,221 | $91,983 | | FFO | $98,271 | $106,567 | $190,578 | $203,140 | | FFO available for common stockholders | $97,685 | $105,946 | $189,371 | $201,898 | | FFO per share | $0.89 | $0.98 | $1.72 | $1.87 | - NOI is defined as rental and other revenues less rental property and other expenses; Same property NOI and cash NOI are also used as supplemental measures[191](index=191&type=chunk) Same Property Net Operating Income (NOI) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net operating income | $136,945 | $140,179 | $272,294 | $281,019 | | Same property net operating income | $137,938 | $140,940 | $275,996 | $281,775 | | Same property cash net operating income | $133,665 | $136,990 | $265,633 | $273,431 | [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Market risk information as of December 31, 2024, is referenced from the company's 2024 Annual Report on Form 10-K - For market risk information as of December 31, 2024, refer to the 2024 Annual Report on Form 10-K[195](index=195&type=chunk) [Controls and Procedures](index=47&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) The Company and Operating Partnership's disclosure controls were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures for both the Company and the Operating Partnership were effective as of June 30, 2025[197](index=197&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[198](index=198&type=chunk) PART II - OTHER INFORMATION [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Details shares of Common Stock surrendered by employees for tax withholding related to restricted stock vesting in Q2 2025 Shares of Common Stock Surrendered for Tax Withholding (Q2 2025) | Period | Total Number of Shares Purchased | Weighted Average Price Paid per Share | | :----- | :------------------------------- | :------------------------------------ | | April 1 to April 30 | 19 | $29.64 | | May 1 to May 31 | — | — | | June 1 to June 30 | — | — | | Total | 19 | $29.64 | [Exhibits](index=48&type=section&id=ITEM%206.%20EXHIBITS) Lists all exhibits filed with the Form 10-Q, including equity incentive plans, certifications, and XBRL documents - Exhibits include the 2025 Long-Term Equity Incentive Plan, CEO/CFO certifications under Sections 302 and 906 of Sarbanes-Oxley Act for both the Company and Operating Partnership, and Inline XBRL documents[203](index=203&type=chunk) Signatures [Signatures](index=49&type=section&id=Signatures) Contains signatures of authorized officers for Highwoods Properties, Inc. and Highwoods Realty Limited Partnership, certifying the report filing - Report signed by Brendan C. Maiorana, Executive Vice President and Chief Financial Officer, on behalf of Highwoods Properties, Inc. and Highwoods Realty Limited Partnership on July 29, 2025[207](index=207&type=chunk)

Core Insights - Highwoods Properties (HIW) shares have increased by 14.5% over the past three months, outperforming the industry average rise of 5.5% [1] - The company's portfolio is strategically located in high-growth Sun Belt markets, which are expected to benefit from a rising demand for high-quality office spaces as organizations push for return-to-office mandates [1][4] - The net effective rents for HIW in Q1 2025 were reported to be 20% higher than the average of the previous five quarters, indicating strong demand for its properties [5][7] Financial Performance - Analysts have revised the Zacks Consensus Estimate for HIW's 2025 funds from operations (FFO) per share to $3.39, reflecting a positive outlook [2] - The company has a healthy balance sheet with over $700 million in total available liquidity as of March 31, 2025, and no consolidated debt maturities until Q2 2026 [9] Strategic Initiatives - Highwoods is implementing a disciplined capital-recycling strategy, having completed buyouts worth $3.6 billion and dispositions totaling $3.0 billion from 2010 to 2024 [6] - The company has a development pipeline valued at $474 million, which is 62.8% pre-leased and expected to generate over $40 million in incremental annual net operating income (NOI) upon stabilization [8] Market Trends - The demand for office spaces is anticipated to be driven by inbound migration and significant investments from office occupiers in the Sun Belt regions, alongside hiring plans in the company's markets [4] - The recovery in leasing activity and the return of tenants to offices are expected to support the fundamentals of the office real estate market [4][7]

Core Insights - The article discusses the resurgence of office REITs as major cities begin to recover from the pandemic and return to office mandates, highlighting potential investment opportunities in this sector [3][4][5]. Group 1: Market Trends - Major cities like Boston, New York, and San Francisco are experiencing a return to pre-pandemic commuting patterns, which is positively impacting office REITs [3][4]. - Office REITs, previously struggling due to COVID-19, are now seeing renewed interest as companies mandate employees to return to the office [5]. Group 2: Specific REIT Analysis - Alexander's (ALX) has a yield of 8.2% but faces high single-tenant risk, with Bloomberg accounting for nearly 60% of its rental revenue [7][8][9]. - Easterly Government Properties (DEA) has a yield of 8.1% but recently cut its dividend by about one-third, raising concerns about its financial stability [12][14]. - Highwoods Properties (HIW) offers a safer investment with a 6.4% yield and a low FFO payout ratio of 60%, indicating strong dividend coverage [15][16]. - American Assets Trust (AAT) has a yield of 6.7% and has resumed dividend growth after a cut during COVID, with dividends representing 70% of projected 2025 FFO [17][18]. - Brandywine Realty Trust (BDN) has a high yield of 14.4% but is facing challenges due to development projects and declining FFO, raising concerns about its dividend sustainability [19][21].

Conference Call Wednesday, July 30th, at 11:00 A.M.RALEIGH, N.C., June 24, 2025 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) will release its second quarter 2025 results on Tuesday, July 29th, after the market closes. A conference call will be held the next day, Wednesday, July 30th, at 11:00 A.M. Eastern time. For US/Canada callers, dial (833) 470-1428 and enter access code 172004. International callers should dial (404) 975-4839 and enter the same passcode. A live, listen-only webcast can be ...

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Portfolio & Market Highlights - The company has a portfolio of 267 million square feet as of March 31, 2025 [10] - The portfolio is 881% leased as of March 31, 2025 [10] - Over 95% of the portfolio's NOI is in the Sunbelt region [10] - More than 90% of NOI is in the top 20 ULI markets [12] Financial Performance & Outlook - The company's 2025 FFO per share outlook ranges from $331 to $347 [149] - Same property cash NOI growth is projected to be between -40% and -20% [149] - Completed dispositions are expected to be $145 million [149] - Completed acquisitions are expected to be $138 million [149] Investment Strategy - The company has completed $138 million in acquisitions in 2025 [115] - The company has completed $145 million in non-core dispositions in 2025 [119] - The company's development pipeline includes 14 million square feet [10]

Core Insights - Highwoods Properties (HIW) shares have increased by 8.3% over the past three months, contrasting with a 0.2% decline in the industry [1] - The company signed over 750,000 square feet of second-generation leases from the start of Q2 through June 2, 2025, including more than 300,000 square feet of new leases, indicating a rising demand for quality office spaces [1][8] Leasing Activity - In Q1 2025, Highwoods' second-generation leasing activity reached 700,000 square feet, with 252,000 square feet being new leases, showcasing a recovery in demand for its office properties [3] - The company is experiencing an increase in tenants returning to offices, which is expected to bolster office real estate market fundamentals [4] Market Dynamics - The next cycle of office space demand is anticipated to be driven by inbound migration and significant investments from office occupiers in Sun Belt regions, along with hiring plans in the company's markets [4] - Highwoods' portfolio is concentrated in high-growth Sun Belt markets, which are projected to have favorable demographic trends and above-average job growth, supporting long-term rent growth [5] Capital Strategy - Highwoods is implementing a disciplined capital-recycling strategy, selling non-core assets and reinvesting in premium acquisitions and development projects [6] - In Q1 2025, the company sold three non-core office buildings totaling 616,000 square feet for $145 million and acquired a Class AA office tower in Raleigh [6][8] Financial Health - The company maintains a healthy balance sheet with no consolidated debt maturities until Q2 2026 and over $700 million in total available liquidity as of March 31, 2025 [9] - Highwoods generated 84.3% unencumbered net operating income, providing the potential to access additional secured debt capital if necessary [9]

Core Insights - Highwoods Properties, Inc. (HIW) has signed over 750,000 square feet of second-generation leases from the beginning of the second quarter through June 2, 2025, including more than 300,000 square feet of new leases [1][7] - The company is experiencing a recovery in demand for its office properties, driven by organizations emphasizing return-to-office mandates, which is propelling leasing activity [2][3] Company Performance - In the first quarter of 2025, HIW signed approximately 691,000 square feet of second-generation leases, with nearly 244,000 square feet being new leases [3] - The company has a well-diversified tenant base and is focusing on expansion in high-growth markets, which are key growth drivers [3] - Over the past three months, HIW's shares have gained 8.4%, contrasting with a 1.3% decline in the industry [4] Future Outlook - HIW expects occupancy growth in late 2025, supported by a strong leasing pipeline [2][7] - The healthy volume of leases executed in the first five months of the year positions the company for future growth in occupancy [2]

Core Insights - Highwoods Properties, Inc. has released its 2024 Corporate Resiliency Report, emphasizing its commitment to maintaining a resilient and high-quality office portfolio that can thrive across various economic cycles [1] Company Overview - Highwoods Properties, Inc. is a publicly-traded real estate investment trust (REIT) listed on NYSE under the ticker HIW, with its headquarters in Raleigh [1] - The company focuses on owning, developing, acquiring, leasing, and managing properties primarily located in the best business districts (BBDs) of major cities including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa [1] - Highwoods aims to lead the evolution of commercial real estate, benefiting customers, communities, and investors [1] - The company's mission is to create inspiring environments and experiences that enhance collaboration among teammates and customers, ultimately delivering greater value to shareholders [1]

Group 1 - The earnings call for Highwoods Properties Q1 2025 was attended by key executives including the CFO, CEO, and COO [1][2] - The prepared remarks for the call were made available on the company's website for investor convenience [2] - The review included non-GAAP measures such as FFO, NOI, and EBITDAre, with reconciliations provided in the earnings release [3]