Core Viewpoint - Highwoods Properties (HIW) is well-positioned to benefit from increasing demand for its office properties in high-growth Sun Belt markets, supported by a disciplined capital-recycling program and a healthy balance sheet, although competition and high interest rates present challenges [1][4][6]. Group 1: Demand and Leasing Activity - Highwoods is experiencing a recovery in demand for its office properties, evidenced by a new leasing volume of 922,167 square feet in Q1 2024, which includes 422,889 square feet of new leases [2]. - The company is expected to benefit from favorable demographic trends and job growth in the Sun Belt markets, which will support long-term rent growth [6][13]. Group 2: Financial Position - Highwoods maintains a strong financial position with investment-grade ratings of BBB/Baa2 from S&P and Moody's, allowing access to debt markets at favorable rates [3]. - As of April 16, 2024, the company had approximately $17 million in available cash and $10 million drawn from its $750 million revolving credit facility, with no consolidated debt maturities until Q2 2026 [7]. Group 3: Challenges and Market Conditions - Elevated interest rates pose a concern for Highwoods, leading to high borrowing costs and affecting its ability to purchase or develop real estate, with a net debt of approximately $3.31 billion as of March 31, 2024 [4]. - The overall office demand in some markets may remain subdued in the near term, with increased development activities likely to create new supply, potentially straining occupancy levels, which management anticipates will average between 87-89% in 2024 [8]. Group 4: Stock Performance - Over the past three months, Highwoods' shares have increased by 22.0%, outperforming the industry's growth of 14.6% [15].

This Raleigh, NC-based office real estate investment trust (REIT) is well-positioned to benefit from the growing demand for its premier office properties concentrated in high-growth Sun Belt markets. Its disciplined capitalrecycling program and accretive development projects are other tailwinds. A healthy balance sheet position augurs well for long-term growth. Image Source: Zacks Investment Research Highwoods has a large part of its portfolio concentrated in high-growth Sun Belt markets, and the company is ...

RALEIGH, N.C., July 02, 2024 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) will release its second quarter 2024 results on Tuesday, July 23rd, after the market closes. A conference call will be held the next day, Wednesday, July 24th, at 11:00 A.M. Eastern time. For US/Canada callers, dial (833) 470-1428 and enter access code 794414. International callers should dial (929) 526-1599 and enter the same passcode. A live, listen-only webcast can be accessed on the Company's website at www.highwoods. ...

A conference call will be held the next day, Wednesday, July 24th, at 11:00 A.M. Eastern time. About Highwoods Contact: Brendan Maiorana Executive Vice President and Chief Financial Officer brendan.maiorana@highwoods.com 919-872-4924 RALEIGH, N.C., July 02, 2024 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) will release its second quarter 2024 results on Tuesday, July 23rd, after the market closes. For US/Canada callers, dial (833) 470-1428 and enter access code 794414. International callers sho ...

RALEIGH, N.C., May 30, 2024 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) announces Ted Klinck, President and Chief Executive Officer, will participate in a Company roundtable presentation during Nareit's REITweek: 2024 Investor Conference. The presentation will take place on Wednesday, June 5, 2023, at 9:30 a.m. ET, and will last approximately 30 minutes. The following is a link to the webcast presentation on the Company's website, a replay of which will be available an hour after the presentat ...

Shares of Highwoods Properties (HIW) have gained 11.1% in the year-to-date period against the industry's decline of 10.2%. The Raleigh, NC-based office real estate investment trust (REIT) is well-positioned to benefit from the growing demand for its premier office properties concentrated in high-growth Sun Belt markets. Its disciplined capital- recycling program and accretive development projects are other tailwinds. A healthy balance sheet position augurs well for long-term growth. The company, carrying a ...

A month has gone by since the last earnings report for Highwoods Properties (HIW) . Shares have added about 0.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Highwoods Properties due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Highwoods Q1 FFO Miss Estimates ...

Core Viewpoint - Highwoods Properties (HIW) is strategically positioned to capitalize on the increasing demand for its office properties in high-growth Sun Belt markets, supported by a disciplined capital-recycling program and a robust balance sheet, although it faces competition and high interest rates as potential challenges [1][8][10]. Group 1: Market Position and Demand - Highwoods has a significant portion of its portfolio in high-growth Sun Belt markets, which are expected to experience favorable demographic trends and above-average job growth, supporting long-term rent growth [2]. - The company is witnessing a recovery in demand for its office properties, as evidenced by a leasing volume of 922,167 square feet in the first quarter, including 422,889 square feet of new leases [3]. - The next cycle of office space demand is anticipated to be driven by inbound migration and investments from office occupiers in the Sun Belt regions, along with increased hiring plans, which will likely enhance leasing activity [4]. Group 2: Financial Strategy and Position - Highwoods employs a disciplined capital-recycling strategy, focusing on disposing of non-core assets and reinvesting in premium acquisitions and development projects to improve portfolio quality [5]. - The company maintains a healthy balance sheet with no consolidated debt maturities until the second quarter of 2026, holding approximately $17 million in cash and $10 million drawn from a $750 million revolving credit facility, along with investment-grade ratings from S&P and Moody's [6]. Group 3: Challenges and Risks - Highwoods faces intense competition from other developers and operators in the office property sector, which may hinder its ability to attract tenants at higher rents and affect leasing activity [8]. - The overall office demand in certain markets is expected to remain subdued in the near term, with increased development activities likely leading to new supply, which could strain occupancy levels [9]. - Elevated interest rates present a challenge, increasing borrowing costs and potentially making the company's dividend payout less attractive compared to fixed-income investments [10].

gawrav REITs have taken a beating over the past 12+ months. While it's easy to get caught up in a doom loop of negativity around this sector, it's worth considering that like everything else, this too should pass with time. Plus, it's good to go against the grain when it seems the majority of the market is chasing hot AI tech names to very high valuations. In the meantime, value and income investors get paid real cash for holding on to undervalued companies that own hard assets that produce durable cash flo ...

Financial Data and Key Metrics Changes - The company reported FFO of $0.89 per share and same property cash NOI growth of 0.3% [85] - Occupancy dipped modestly to 88.5% [85] - The 2024 FFO outlook was updated to a range of $3.46 to $3.61 per share, reflecting a $0.015 reduction at the midpoint due to higher interest rates and the dilutive impact of asset sales [15][121] Business Line Data and Key Metrics Changes - The company signed 922,000 square feet of second generation leases, including over 400,000 square feet of new leases [119] - The development pipeline is now valued at $506 million, with 157,000 square feet of first generation leases signed during the quarter, resulting in a 41% lease rate [122] - The 23Springs project in Uptown Dallas is now 54% pre-leased, one year before completion [127] Market Data and Key Metrics Changes - Tampa recorded the highest leasing volume in the quarter with 267,000 square feet signed [128] - Atlanta signed 199,000 square feet for the quarter, with 160,000 square feet being new leases, marking the greatest share of new leasing across the portfolio [129] - Raleigh, Nashville, Dallas, and Charlotte were highlighted as top-performing cities, contributing to strong leasing activity [101] Company Strategy and Development Direction - The company plans to sell up to an additional $150 million in non-core properties, with a focus on improving portfolio quality and cash flow growth [6][84] - The company does not expect to announce new development projects during the year due to challenging market conditions [88] - The strategy emphasizes creating high-quality office experiences in desirable business districts to attract tenants [120] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in the office sector but remains optimistic about future demand due to the quality of the portfolio and strategic locations [9] - The company expects occupancy to trough in the first half of next year but believes it will be at a higher level than previously anticipated [105] - Management noted that the leasing environment remains competitive, with a focus on maintaining occupancy over pushing rental rates [11] Other Important Information - The company has $850 million of available liquidity, which increased to $915 million following recent asset sales [131] - The company is not planning any capital raising for the year, relying on existing liquidity and construction loans for development projects [62] Q&A Session All Questions and Answers Question: What does retention look like in '24 excluding known move-outs? - Management indicated that retention levels would be around 40% when excluding known move-outs, which would be higher if those were included [60] Question: What is the outlook for acquisitions given current market conditions? - Management stated that the acquisition environment is challenging due to high pricing and quality concerns, but they remain interested in quality assets [31] Question: Will there be continued degradation in net effective rents across the portfolio? - Management expressed optimism about holding net effective rents steady, despite current tenant market conditions [34][36] Question: Can you provide an update on the leasing activity in Dallas? - Management reported strong leasing activity at 23Springs, with significant interest and several prospects in the pipeline [47] Question: What are the expectations for future growth opportunities? - Management highlighted a focus on capital recycling and improving cash flow through strategic asset sales and potential acquisitions in the future [44][50]