Highwoods Properties (HIW)
NYSE:HIW
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Earnings Data
Report Date
Jul 28, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.44Last Year’s EPS
0.17Same Quarter Last Year
Based on 7 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The earnings call emphasized strong leasing momentum, notable rent growth (GAAP +19.4%, cash +4.8%), significant development leasing and near-term embedded NOI growth (> $20M annual NOI), solid liquidity (> $650M) and a maintained FFO outlook. Key execution items include dispositions, potential share repurchases, and continued development stabilization. Near-term challenges are primarily timing-related: a sizeable leased-vs-occupied gap (470 bps), Q2 FFO timing/dilution from dispositions and some expense/term-fee variability. Overall, positives around leasing, portfolio quality, and balance sheet optionality materially outweigh the timing and execution risks.Company Guidance
Strong Leasing Activity and Improved Leased Rates
Signed 958,000 sqft of second-generation leases (including >300,000 sqft of new leases); leased rate on in-service portfolio increased 50 basis points and leased rate on developments increased 800 basis points. Weighted average lease term on second-generation lease volume was 7.5 years (over one year longer than recent average).
Rent Growth and Net Effective Rents
GAAP rent growth of 19.4% and cash rent growth of 4.8%; net effective rents were the second-highest in company history and 9% higher than the prior five-quarter average.
FFO, Net Income and Outlook Maintained
Q1 FFO was $94.0 million or $0.84 per share and net income was $31.3 million or $0.29 per share. Management reiterated full-year FFO guidance of $3.40 to $3.68 per share.
Development Leasing and Stabilizations Driving Future NOI
Placed >$200 million of development properties in service (87% leased on placement). GlenLake III (203k sqft office + 15k retail) is 94% leased; GlenLake II Retail 100% leased; Granite Park 6 (422k sqft) 80% leased. 23 Springs leasing rose to 83% (from 75% last quarter and 62% a year ago); Midtown East is 95% leased (from 76% last quarter and 39% a year ago). Combined placed-in-service and remaining development pipeline are 86% leased but only 48% occupied, implying meaningful upcoming NOI, cash flow, and FFO growth as leases commence.
High-Quality Portfolio Activity and Capital Recycling
Acquired $108 million in commute-worthy BBD assets (Dallas and Raleigh JVs) and sold $42 million of non-core Richmond properties. Expect ~ $200 million of additional non-core asset sales by midyear and may repurchase up to $250 million of shares using disposition proceeds on a leverage-neutral basis.
Liquidity and Balance Sheet Actions
Available liquidity >$650 million at quarter-end. Closed a $100 million secured mortgage on Granite Park 6, repatriating >$50 million of capital to the company. Expect year-end debt/EBITDA in the low- to mid-6s assuming $200 million of disposals, with additional reductions as NOI grows.
Market Fundamentals and Geographic Wins
Strong fundamentals in core Sunbelt BBDs: Dallas (DFW had 117k sqft positive net absorption in 1Q), Charlotte (1.4M sqft leasing volume up ~74% YoY and ~410k sqft positive net absorption), Raleigh (persistent population and job growth), and Nashville (notable corporate demand). Management cites flight-to-quality dynamics and limited new supply supporting pricing power.
Localized Strong Rent Spreads
Significant mark-to-market and rent spread examples: GAAP spreads of ~27% at McKinney & Olive and The Terraces (Dallas); in Nashville, cash and GAAP rent spreads of 9.4% and 26.5%, respectively.
Occupancy Progress and Pipeline Visibility
Overall leased rate at 89.7% (up from 89.2% last quarter). Management reiterated year-end occupancy outlook of 86.5%–88.5% (midpoint 87.5%) and expects to convert leased but unoccupied space into occupancy with ~300k–400k sqft of additional starts needed to reach midpoint; company believes ~100k sqft/month of new leasing would put them on track.
Embedded NOI Growth from Near-Term Lease Commencements
Only $40 million of remaining capital required to complete the company’s share of development properties, which combined with developments placed in service will deliver >$20 million of annual NOI growth versus the Q1 2026 run rate.
HIW Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HIW Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 28, 2026 | $24.43 | $23.26 | -4.77% |
Feb 10, 2026 | $24.93 | $22.40 | -10.16% |
Oct 28, 2025 | $27.83 | $26.78 | -3.76% |
Jul 29, 2025 | $28.03 | $26.90 | -4.03% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Highwoods Properties (HIW) report earnings?
Highwoods Properties (HIW) is schdueled to report earning on Jul 28, 2026, After Close (Confirmed).
What is Highwoods Properties (HIW) earnings time?
Highwoods Properties (HIW) earnings time is at Jul 28, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is HIW EPS forecast?
HIW EPS forecast for the fiscal quarter 2026 (Q2) is 0.44.