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 ...

Highwoods Properties (NYSE: HIW ) may not offer a lot of dividend growth, but the REIT is the type of steady-eddy stock income investors may consider attractive as a result of theirContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who ...

Core Insights - Highwoods Properties (HIW) shares have increased by 37.9% year to date, significantly outperforming the industry growth of 3.1% [1] - The company reported third-quarter 2024 funds from operations (FFO) per share of 90 cents, exceeding the Zacks Consensus Estimate of 88 cents but lower than the previous year's 93 cents [1][2] Financial Performance - The quarterly results showed strong leasing activity and rent growth, driven by rising demand for premium office spaces, although higher interest expenses had a negative impact [2] - The Zacks Consensus Estimate for HIW's 2024 FFO per share has been revised slightly upward to $3.61 over the past month [2] Market Position and Demand - Highwoods' portfolio is concentrated in high-growth Sun Belt markets, which are expected to experience above-average job growth, supporting long-term rent growth [3] - The average in-place cash rent grew by 3.9% per square foot year over year during the third quarter of 2024 [3] Leasing Activity - The company signed 906,000 square feet of second-generation leases in the third quarter, including 530,000 square feet of new leases [4] - Highwoods also signed 61,000 square feet of first-generation leases during the same period [4] Future Outlook - Future demand for office space is anticipated to be driven by inbound migration and significant investments from office occupiers in the Sun Belt regions [5] - The company has a diversified tenant base and is witnessing an increasing number of tenants returning to offices, which is expected to support market fundamentals [5] Capital Strategy - Highwoods follows a disciplined capital-recycling strategy, disposing of non-core assets and reinvesting in premium acquisitions and development projects [6] - The company completed dispositions worth $84 million from the beginning of the year through September 30, 2024, with an additional $150 million expected in 2024 [6] Financial Health - The company maintains a healthy balance sheet with no consolidated debt maturities until the second quarter of 2026, holding approximately $23.7 million in cash and $644.9 million in unused capacity under its revolving credit facility as of September 30, 2024 [7] - Highwoods generated 83.3% unencumbered net operating income (NOI) at the company's share, with investment-grade ratings from S&P and Moody's allowing access to favorable debt market rates [8]

Core Viewpoint - Highwoods Properties Inc. (HIW) reported third-quarter 2024 funds from operations (FFO) per share of 90 cents, exceeding the Zacks Consensus Estimate of 88 cents but lower than the previous year's 93 cents, reflecting strong leasing activity and rent growth despite higher interest expenses [1] Financial Performance - Rental and other revenues totaled $204.3 million, a decrease of 1.3% year over year, narrowly missing the Zacks Consensus Estimate of $205.3 million [1] - Average in-place cash rent increased by 3.9% per square foot compared to the prior-year quarter [2] - Same-property cash net operating income (NOI) rose by 2.4% year over year to $140.5 million [2] - Total rental property and other expenses were $65.7 million, down 2.2% year over year, while interest expenses increased by 9.4% to $37.5 million [3] Development and Leasing Activity - The current development pipeline amounts to $514 million (at HIW share) and is 49.2% pre-leased [3] - Second-generation leasing activity included 906,000 square feet in the third quarter, with 530,000 square feet of new leases signed [2] Balance Sheet Position - The company ended the third quarter with total available liquidity of $788 million, an increase from $777 million as of June 30, 2024 [4] - The net debt-to-adjusted EBITDAre ratio was reported at 6.1, up from 5.8 at the end of June 30, 2024 [4] 2024 Guidance - HIW raised its 2024 guidance for FFO per share to a range of $3.59-$3.63, up from the previous range of $3.54-$3.62, with the midpoint being 6 cents higher than the initial outlook [5] - Expected growth in same-property cash NOI is now between 1% and 2%, an increase from the prior range of 0.5%-2% [5] - Average occupancy is anticipated to remain between 87% and 89%, unchanged from previous guidance [5]

Core Viewpoint - Highwoods Properties reported a slight decline in revenue for Q3 2024, but showed a significant increase in earnings per share compared to the previous year [1]. Financial Performance - Revenue for the quarter ended September 2024 was $204.32 million, down 1.3% year-over-year [1]. - Earnings per share (EPS) was reported at $0.90, a significant increase from $0.21 in the same quarter last year [1]. - The revenue reported was a surprise of -0.49% compared to the Zacks Consensus Estimate of $205.32 million [1]. - The EPS exceeded the consensus estimate of $0.88, resulting in a surprise of +2.27% [1]. Key Metrics - Lease termination fees, net, were $0.18 million, down 48.8% year-over-year, compared to the average estimate of $0.31 million [1]. - Contractual rents, net, were $175.83 million, slightly above the average estimate of $174.62 million, representing a year-over-year increase of +0.6% [1]. - Other miscellaneous operating revenues were $10.20 million, below the average estimate of $10.91 million, with a year-over-year change of -0.8% [1]. - Cost recoveries billed under lease arrangements, net, were $16.23 million, below the average estimate of $17.19 million, reflecting a year-over-year decline of -4.4% [1]. - Straight-line rental income, net, was $1.88 million, significantly lower than the estimated $3.11 million, representing a -59.1% change year-over-year [1]. - Net Earnings Per Share (Diluted) was $0.14, below the average estimate of $0.17 [1]. Stock Performance - Highwoods Properties shares have returned +5.9% over the past month, outperforming the Zacks S&P 500 composite's +2.8% change [2]. - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2].

Core Viewpoint - Highwoods Properties reported quarterly funds from operations (FFO) of $0.90 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, but down from $0.93 per share a year ago [1] Financial Performance - The FFO surprise for the quarter was 2.27%, and the company had previously reported an FFO of $0.98 per share, surpassing expectations by 8.89% [1] - Highwoods Properties generated revenues of $204.32 million for the quarter ended September 2024, which was 0.49% below the Zacks Consensus Estimate and down from $207.1 million year-over-year [1] Stock Performance - Highwoods Properties shares have increased approximately 55% since the beginning of the year, significantly outperforming the S&P 500's gain of 22.7% [2] Future Outlook - The company's future FFO expectations and management's commentary during the earnings call will be crucial for the stock's immediate price movement [2] - Current consensus FFO estimate for the upcoming quarter is $0.86 on revenues of $203.71 million, and for the current fiscal year, it is $3.60 on revenues of $824.88 million [4] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook [5] - Iron Mountain, another company in the same industry, is expected to report quarterly earnings of $1.11 per share, reflecting a year-over-year increase of 12.1% [5]

Core Viewpoint - Highwoods Properties, Inc. has released its third quarter 2024 results, highlighting its operations as a fully-integrated office real estate investment trust (REIT) focused on prime business districts [1] Company Overview - Highwoods Properties, Inc. is headquartered in Raleigh and is publicly traded on the NYSE under the ticker HIW [1] - The company specializes in owning, developing, acquiring, leasing, and managing properties primarily in major business districts across cities such as Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa [1] - Highwoods aims to create environments that foster collaboration and innovation, thereby delivering greater value to customers and stakeholders [1]

The REIT sector ( XLRE ), particularly office REITs have seen suppressed valuations for the last couple of years as high interest rates have plagued the sector.Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend inves ...

Core Viewpoint - Highwoods Properties, Inc. is set to release its third quarter 2024 results on October 22nd, followed by a conference call on October 23rd at 11:00 A.M. Eastern time [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 major business districts across several cities including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa [3]. - The company emphasizes creating environments that foster collaboration and innovation, aiming to deliver greater value to customers and stakeholders [3]. Conference Call Details - For US/Canada callers, the conference call can be accessed by dialing (833) 470-1428 with access code 628980, while international callers should use (404) 975-4839 with the same passcode [2]. - A live webcast of the call will be available on the company's website, and a replay will also be accessible post-call [2].