Strong Financial Performance and Growth
Highwoods Properties delivered FFO of $0.83 per share, exceeding expectations, and generated healthy cash flow with a raised 2025 FFO outlook. The company executed substantial leasing activity and investment transactions, setting up for future growth.
Robust Investment Activity
The company recycled $145 million of non-core disposition proceeds into the acquisition of a $138 million Class AA building in North Hills, Raleigh, which is accretive to cash flow and expected to contribute significantly to long-term growth.
Leasing Success Across Portfolio
Highwoods signed 97,000 square feet of first-gen leases and 700,000 square feet of second-gen office space, with net effective rents more than 20% higher than the prior five-quarter average. The leasing pipeline remains strong.
Positive Outlook for Office Market
Despite macroeconomic uncertainties, the company remains optimistic due to strong leasing activity, robust demand in Sunbelt markets, and lack of new office supply, which is expected to drive rent growth.