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]

Core Viewpoint - Highwoods Properties reported quarterly funds from operations (FFO) of $0.85 per share, matching the Zacks Consensus Estimate, but down from $0.99 per share a year ago [1] - The company posted revenues of $205.53 million for the quarter, exceeding the Zacks Consensus Estimate by 0.65%, but slightly lower than the previous year's revenues of $206.86 million [2] Financial Performance - FFO for the last quarter was $0.85 per share, consistent with estimates, and the company has surpassed consensus FFO estimates two times in the last four quarters [1] - Revenues for the quarter were $205.53 million, which is a slight decrease from $206.86 million year-over-year, and the company has topped consensus revenue estimates two times over the last four quarters [2] Market Performance - Highwoods Properties shares have declined approximately 5.5% since the beginning of the year, contrasting with the S&P 500's gain of 3.1% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.83 on revenues of $204.69 million, and for the current fiscal year, it is $3.43 on revenues of $828.26 million [7] - The estimate revisions trend for Highwoods Properties is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The REIT and Equity Trust - Other industry is currently in the bottom 30% of the Zacks industries, which may impact the stock's performance [8]

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]

Workforce and Employee Demographics - The total cost of the workforce in 2024 was approximately $61 million, with an average annual turnover rate of 14%[41] - Approximately 71% of employees work in division offices, primarily involved in property management and maintenance[41] - The average tenure of employees was ten years, with an average age of 49 years[40] - The average annual turnover rate for the company was 16%, significantly lower than the national industry average of 25%[40] - As of December 31, 2024, 37% of the company's employees were female and 29% were persons of color[54] - In 2024, 57% of new hires were female and 39% were persons of color[54] - About 33% of employees are highly specialized trade professionals, with an average age of 52 years, indicating a potential future shortage of skilled workers[42] Employee Compensation and Benefits - Nearly 50% of employees are eligible for an annual bonus ranging from 5% to 20% of their base salary[45] - Approximately 8% of employees are eligible for long-term equity incentive compensation, providing them with a stake in the company's success[46] - Over 94% of employees participate in the 401(k) retirement savings plan, which includes a competitive match on contributions[47] - The company has established a development cash incentive plan, with payouts generally ranging from $1,000 to $10,000 based on project performance[48] Company Strategy and Operations - The company aims to generate attractive and sustainable returns by developing and owning high-quality office buildings in best business districts (BBDs)[31] - The company focuses on owning and managing properties in dynamic and vibrant BBDs to enhance customer talent attraction and retention[30] - The company maintains a conservative and flexible balance sheet with access to ample liquidity and multiple sources of capital[33] - The company has established a corporate resiliency team to refine its long-term resiliency strategy and track progress towards sustainability goals[35] Diversity and Inclusion Initiatives - The company has a diversity and inclusion program called "Heart of Highwoods" aimed at creating opportunities for all in the commercial real estate industry[55] - The diversity and inclusion program, "Heart of Highwoods," aims to create opportunities for all individuals in the commercial real estate industry[55] Health and Safety Programs - The company has a robust health and safety program to mitigate workplace risks and promote employee well-being[51] - The company has a robust health and safety program, including training on OSHA compliance and emergency response procedures[51] Partnerships and Community Engagement - The company has partnered with local trade schools to implement an apprenticeship program to address the expected shortage of skilled trade professionals[43] - The company has implemented an apprenticeship program in partnership with local trade schools to address the shortage of skilled trade professionals[43] Revenue Sources - As of December 31, 2024, Bank of America and Asurion accounted for 3.8% and 3.5% of the company's annualized GAAP revenues, respectively[50]

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]

Core Viewpoint - Highwoods Properties, Inc. is set to release its fourth quarter 2024 results on February 11, 2025, with a conference call scheduled for February 12, 2025, at 11:00 A.M. Eastern time [2]. Company Overview - Highwoods Properties, Inc. is a publicly-traded real estate investment trust (REIT) headquartered in Raleigh, focusing on owning, developing, acquiring, leasing, and managing properties in major business districts across several cities including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa [4]. - The company emphasizes creating environments that foster collaboration and innovation, aiming to deliver greater value to customers and stakeholders [4]. Conference Call Details - The conference call for the fourth quarter results can be accessed by US/Canada callers at (833) 470-1428 with access code 441734, and international callers can dial (404) 975-4839 using the same passcode [3]. - A live webcast of the call will be available on the company's website, along with a replay after the event [3].

Highwoods Properties (HIW) is well-poised to benefit from the rising demand for its highly amenitized office properties, aggressive capital-recycling initiatives and solid balance sheet strength.Analysts seem positive about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for HIW’s 2024 funds from operations (FFO) per share has moved marginally northward over the past month to $3.62.Shares of this office-based real estate investment trust (REIT) company have gained 22% in the past six months c ...

Heading into 2025, the U.S. real estate market is poised for a transformative period of growth and change. Supported by a resilient economy, easing financial conditions and advancements in technology, new opportunities are anticipated across various real estate sectors.This draws our attention to REITs that cater to different asset categories, like Alpine Income Property Trust, Inc. (PINE) , Regency Centers Corporation (REG) , SL Green Realty Corp. (SLG) and Highwoods Properties, Inc. (HIW) .Why 2025 Will b ...

Highwoods Properties (HIW) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a cha ...