Occupancy and Leasing - Average occupancy in the office portfolio decreased from 88.9% as of December 31, 2023, to 88.5% as of June 30, 2024, with expectations to range from 87.0% to 88.0% for the remainder of 2024[128] - Annualized rental revenues from new and renewal leases signed in the second quarter were $31.00 per rentable square foot, representing a 9.4% increase compared to previous leases in the same office spaces[130] - The average term for new leases signed in the second quarter was 8.3 years, while renewals had an average term of 4.5 years[129] Financial Performance - Consolidated same property net operating income (NOI) was $1.5 million, or 1.1%, higher in the second quarter of 2024 compared to 2023, driven by an increase in same property revenue[133] - NOI was $0.8 million, or 0.6%, lower in the second quarter of 2024 compared to 2023, primarily due to lost NOI from property dispositions[134] - The company expects same property NOI to be lower for the remainder of 2024 due to anticipated increases in same property expenses and lower average occupancy[133] - Rental and other revenues decreased by $2.6 million, or 1.2%, in Q2 2024 compared to Q2 2023, primarily due to property dispositions, which resulted in a $4.4 million revenue loss[147] - Operating expenses for rental properties were $1.7 million, or 2.6%, lower in Q2 2024 compared to Q2 2023, mainly due to a $1.3 million decrease from property dispositions[148] - Interest expense increased by $1.8 million, or 5.4%, in Q2 2024 compared to Q2 2023, primarily due to higher average interest rates[151] - Other income rose by $6.3 million in Q2 2024 compared to Q2 2023, mainly due to a $5.8 million refund of Tennessee franchise taxes[152] - Gains on property dispositions increased by $15.7 million in Q2 2024 compared to Q2 2023[153] - Net income for Q2 2024 was $64,770,000, compared to $43,870,000 in Q2 2023, representing a 47.5% increase[202] - Same property net operating income for Q2 2024 was $144,449,000, up from $142,892,000 in Q2 2023, reflecting a 1.1% growth[202] - Same property cash net operating income for Q2 2024 reached $140,755,000, compared to $136,206,000 in Q2 2023, indicating a 3.9% increase[202] - Total net operating income for the first half of 2024 was $281,019,000, down from $288,005,000 in the same period of 2023, a decrease of 2.8%[202] Capital Structure and Liquidity - The leverage ratio as of June 30, 2024, was 41.5%, with approximately $21 million in existing cash and $82.0 million drawn on a $750.0 million revolving credit facility[139] - The company maintains a conservative balance sheet and believes it has ample liquidity to fund operations and growth prospects[139] - The company anticipates that available cash and cash equivalents will be adequate to meet short-term liquidity requirements, including operating expenses and capital expenditures[141] - As of June 30, 2024, there was no amount outstanding under the revolving credit facility, with an unused capacity of $749.9 million[176] - The company modified its $750.0 million unsecured revolving credit facility, now maturing in January 2028, with an interest rate of SOFR plus a spread adjustment of 10 basis points and a borrowing spread of 85 basis points[175] - The company incurred $7.7 million in debt issuance costs during Q1 2024, which will be amortized over the term of the new revolving credit facility[175] - The company had $27.0 million in cash and cash equivalents as of June 30, 2024[186] - The company is currently in compliance with financial covenants and expects to remain compliant for at least the next year[177] - The company’s financial covenants allow lenders to accelerate borrowings upon an event of default, which could adversely affect operational funding[178] Dividends and Shareholder Returns - The company declared a cash dividend of $0.50 per share of Common Stock on July 17, 2024, payable on September 10, 2024[183] - Funds from operations (FFO) for the three months ended June 30, 2024, were $106.6 million, with FFO available for common stockholders at $105.9 million, translating to $0.98 per share[198] Property Development and Sales - The company is developing 0.8 million rentable square feet of office properties, with a total estimated investment of $543 million[173] - The company sold seven buildings in Raleigh for $62.5 million, recording a gain of $35 million on the disposition[170] - The company anticipates selling up to $150 million of non-core properties during the remainder of 2024[189] Expenses and Other Financial Metrics - General and administrative expenses for the first half of 2024 totaled $21,856,000, compared to $21,795,000 in the same period of 2023, a marginal increase of 0.3%[202] - Depreciation and amortization expenses for Q2 2024 were $73,745,000, down from $75,018,000 in Q2 2023, a decrease of 1.7%[202] - Interest expense for Q2 2024 was $35,904,000, slightly higher than $34,063,000 in Q2 2023, marking a 5.4% increase[202] - Equity in earnings of unconsolidated affiliates showed a loss of $(1,120,000) in Q2 2024, compared to a loss of $(798,000) in Q2 2023, indicating a worsening performance[202] - The company reported a total of $9,177,000 in same property net operating income from unconsolidated joint ventures for the first half of 2024, down from $9,415,000 in the same period of 2023, a decrease of 2.5%[202]

Core Viewpoint - Highwoods Properties, Inc. has declared cash dividends for both its preferred and common stock, indicating a commitment to returning value to shareholders [1][3]. Group 1: Dividend Announcements - The Board of Directors declared a cash dividend of $21.5625 per share for the 8 5/8% Series A Cumulative Redeemable Preferred Stock, payable on September 3, 2024, to holders of record as of August 15, 2024 [1]. - A cash dividend of $0.50 per share for common stock was announced for the quarter ended June 30, 2024, which translates to an annualized dividend of $2.00 per share, payable on September 10, 2024, to holders of record as of August 19, 2024 [3]. Group 2: Company Overview - Highwoods Properties, Inc. is a publicly-traded fully-integrated office real estate investment trust (REIT) based in Raleigh, focusing on owning, developing, acquiring, leasing, and managing properties in prime business districts across several major cities [2]. - The company emphasizes creating environments that foster collaboration and innovation, aiming to deliver greater value to customers and stakeholders [2].

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].