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Highwoods Properties Q4 FFO Meets Estimates, Revenues Beat
HIWHighwoods Properties(HIW) ZACKS·2025-02-12 16:11

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 205.5million,exceedingtheZacksConsensusEstimateof205.5 million, exceeding the Zacks Consensus Estimate of 204.2 million but slightly below the prior year's 206.9million[2]−Forfull−year2024,FFOpersharewas206.9 million [2] - For full-year 2024, FFO per share was 3.61, down from 3.83inthepreviousyearbutinlinewiththeconsensusestimate;rentalandotherrevenuesdecreasedby13.83 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 828.9million[3]LeasingActivity−Highwoods′averagein−placecashrentincreasedby3.1828.9 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 37.3million[6]PortfolioActivity−Duringthequarter,Highwoodssolda170,000−square−footnon−coreofficebuildingfor37.3 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 50.6million;post−quarter,thecompanysold616,000squarefeetofnon−coreofficebuildingsfor50.6 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 900million,withanetdebt−to−adjustedEBITDAreratioof6.29,upfrom6.13attheendof2023[8]2025Guidance−Highwoodsanticipates2025FFOpersharebetween900 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,withtheconsensusestimateat3.44, with the consensus estimate at 3.43; same-property cash NOI is expected to decline between -4.0% and -2.0% [9]