Highwoods Properties (HIW) AI Stock Analysis

• Market Cap: $3.38B
• Dividend Yield: 6.39%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.88
• Revenue Growth: -2.16%
• EPS Growth: -16.41%
• Country: US
• Employees: 350
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.17
• Shares Outstanding: 108,073,010
• 10 Day Avg. Volume: 1,118,294
• 30 Day Avg. Volume: 1,127,293
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 8.39
• Enterprise Value/Gross Profit: 17.16
• Enterprise Value/Ebitda: 12.72
• 1Y Price Target: $29.80
• Price Target Upside: -3.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: $32.00 ▲(3.09% Upside)

Highwoods Properties' overall stock score is driven by strong earnings call sentiment and a solid valuation, particularly its high dividend yield. Financial performance is stable but faces challenges in revenue growth and leverage. Technical analysis indicates neutral momentum, with potential overbought conditions.

Positive Factors

Strong Leasing Activity

Strong leasing activity indicates robust demand for Highwoods' properties, supporting stable revenue streams and potential occupancy gains.

NOI Growth Potential

Significant NOI growth potential suggests future revenue increases, enhancing profitability and supporting long-term financial health.

Resilient Balance Sheet

A strong balance sheet with ample liquidity ensures financial stability and flexibility to pursue growth opportunities.

Negative Factors

Flat Occupancy

Flat occupancy rates may limit revenue growth and indicate challenges in attracting new tenants, affecting long-term income stability.

High Leasing CapEx

High leasing CapEx can strain cash flows, reducing available capital for other investments and potentially impacting profitability.

Revenue Growth Challenges

Declining revenue growth poses a risk to long-term financial performance, necessitating strategic initiatives to boost income.

Highwoods Properties Business Overview & Revenue Model

Company Description

Highwoods Properties, Inc. (HIW) is a real estate investment trust (REIT) based in the United States that primarily focuses on the acquisition, development, and management of office and industrial properties. The company operates in key markets across the southeastern and mid-Atlantic regions, providing a range of commercial real estate solutions. Highwoods is known for its high-quality portfolio of properties, which includes office buildings, retail spaces, and industrial sites, catering to a diverse array of tenants in various sectors.

How the Company Makes Money

Highwoods Properties generates revenue primarily through leasing office and industrial spaces to a variety of tenants, including corporations, government agencies, and small businesses. The company's revenue model is centered around long-term leases, which provide a stable income stream. Additionally, Highwoods earns money through property management and development services, as well as ancillary income from parking facilities and other tenant services. Key revenue streams include rental income from leased properties, lease escalations, and any additional fees associated with property management. Partnerships with local governments and businesses can also enhance their earnings potential, particularly in terms of incentives for development and redevelopment projects.

Highwoods Properties Financial Statement Overview

Summary

Highwoods Properties demonstrates strong profitability margins and efficient cash flow management. However, challenges in revenue growth and slightly increased leverage are notable. Continued focus on revenue generation and managing debt levels is crucial for sustaining long-term financial health.

Income Statement

Highwoods Properties shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate (-0.37%) and a decrease in gross profit margin (48.89%) compared to previous years. However, the company maintains a healthy net profit margin (15.86%) and strong EBITDA margin (65.97%). The EBIT margin is also robust at 35.46%, indicating efficient cost management despite revenue challenges.

Balance Sheet

The balance sheet of Highwoods Properties reflects moderate leverage with a debt-to-equity ratio of 1.41, which is slightly higher than previous years, indicating increased reliance on debt. Return on equity is modest at 5.43%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 39.16%, showing a stable capital structure.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 7.88% in the TTM period. The operating cash flow to net income ratio is strong at 1.29, indicating good cash generation relative to net income. The free cash flow to net income ratio is 1.0, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	813.53M	830.02M	834.00M	828.93M	768.01M	736.90M
Gross Profit	397.77M	557.85M	565.22M	569.12M	531.57M	505.07M
EBITDA	536.69M	474.48M	528.51M	537.72M	489.12M	461.51M
Net Income	129.00M	102.25M	148.72M	159.06M	313.28M	347.40M
Balance Sheet
Total Assets	6.06B	6.03B	6.00B	6.06B	5.70B	5.21B
Cash, Cash Equivalents and Short-Term Investments	21.19M	22.41M	25.12M	21.36M	23.15M	109.32M
Total Debt	3.33B	3.29B	3.21B	3.20B	2.79B	2.47B
Total Liabilities	3.62B	3.60B	3.52B	3.50B	3.08B	2.74B
Stockholders Equity	2.37B	2.36B	2.43B	2.48B	2.48B	2.34B
Cash Flow
Free Cash Flow	364.07M	403.58M	386.96M	421.51M	272.50M	355.80M
Operating Cash Flow	364.07M	403.58M	386.96M	421.78M	414.56M	358.16M
Investing Cash Flow	-328.63M	-302.44M	-169.69M	-614.80M	-287.68M	110.68M
Financing Cash Flow	-32.24M	-99.04M	-205.43M	187.93M	-284.93M	-294.34M

Highwoods Properties Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIW, the sentiment is Neutral. The current price of 31.04 is below the 20-day moving average (MA) of 31.71, above the 50-day MA of 30.20, and above the 200-day MA of 28.99, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 51.32 is Neutral, neither overbought nor oversold. The STOCH value of 23.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HIW.

Highwoods Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	69 Neutral	5.22B	23.71	4.08%	4.98%	2.26%	10.15%
CUZ	68 Neutral	4.81B	77.49	0.82%	4.54%	13.07%	-4.94%
HIW	68 Neutral	$3.38B	27.10	5.39%	6.39%	-2.16%	-16.41%
PGRE	64 Neutral	1.52B	-18.18	-1.47%	―	-1.68%	63.27%
SLG	61 Neutral	4.63B	-106.23	0.78%	5.14%	15.25%	79.18%
DEI	58 Neutral	3.21B	73.11	1.89%	4.92%	-0.57%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Highwoods Properties Corporate Events

Highwoods Properties Extends Loan Maturity to 2029

On August 12, 2025, Highwoods Properties announced the modification of its $200 million unsecured bank term loan, extending the maturity date from May 2026 to January 2029. The interest rate for the loan is set at SOFR plus 95 basis points, with potential adjustments based on credit ratings and sustainability goals related to greenhouse gas emissions reduction.