Highwoods Properties (HIW) AI Stock Analysis

• Market Cap: $2.82B
• Dividend Yield: 7.8%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.75
• Revenue Growth: -2.10%
• EPS Growth: -13.30%
• Country: US
• Employees: 350
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.12
• Shares Outstanding: 109,893,940
• 10 Day Avg. Volume: 1,635,443
• 30 Day Avg. Volume: 1,236,235
• PEG Ratio: -0.98
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 3.91
• P/FCF Ratio: 8.04
• Enterprise Value/Market Cap: 2.48
• Enterprise Value/Revenue: 8.63
• Enterprise Value/Gross Profit: 12.86
• Enterprise Value/Ebitda: 12.02
• 1Y Price Target: $30.60
• Price Target Upside: 19.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.16
• Revenue Forecast (FY): $812.40M

• Rating: 65 Neutral
• Price Target: $27.00 ▲(5.39% Upside)

Highwoods Properties' overall score is driven by a positive earnings call and attractive valuation, offset by weak technical indicators and financial performance challenges. The company's strategic initiatives and strong dividend yield provide a solid foundation, but caution is warranted due to bearish technical signals and rising leverage.

Positive Factors

Strategic Acquisitions

The acquisition of 6Hundred at Legacy Union enhances Highwoods' portfolio with a high-quality asset, strengthening its market position in a strategic location, and is expected to generate significant net operating income upon stabilization.

Leasing Volume and Occupancy

Consistent strong leasing volumes and increased occupancy rates indicate robust demand for Highwoods' properties, supporting stable revenue streams and enhancing long-term portfolio value.

Capital Structure Enhancement

The successful notes offering strengthens Highwoods' capital structure, providing financial flexibility for growth initiatives and reducing refinancing risk, thus supporting long-term operational stability.

Negative Factors

Rising Debt Levels

High leverage levels can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns effectively.

Declining Revenue Growth

A decline in revenue growth could indicate challenges in maintaining competitive positioning and market share, potentially affecting long-term profitability and shareholder value.

Elevated Capital Expenditures

Elevated capital expenditures ahead of projected occupancy build can pressure cash flows, limiting the company's ability to fund other strategic initiatives and potentially affecting liquidity.

Highwoods Properties Business Overview & Revenue Model

Company Description

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate investment trust (REIT) and a member of the S&P MidCap 400 Index. Highwoods is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa.

How the Company Makes Money

Highwoods Properties generates revenue primarily through leasing its office and mixed-use properties to tenants, which contributes a significant portion of its income through rental payments. The company benefits from long-term lease agreements, ensuring a stable cash flow. Additional revenue streams include property management fees and ancillary services provided to tenants. The company may also engage in strategic partnerships and joint ventures to enhance its market position and access new development opportunities. Highwoods’ focus on acquiring properties in high-growth markets and maintaining a well-managed portfolio further supports its earnings potential.

Highwoods Properties Financial Statement Overview

Summary

Highwoods Properties faces challenges with declining revenue growth and increasing leverage. However, the company maintains strong profitability margins and efficient cash flow management. The balance sheet shows a stable asset structure, but the rising debt levels could pose a risk if not managed carefully.

Income Statement

Highwoods Properties has shown a decline in revenue growth with a negative trend in the TTM period. The gross profit margin has decreased from previous years, indicating pressure on profitability. However, the company maintains a healthy net profit margin and strong EBITDA margin, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The company has a relatively high debt-to-equity ratio, which has been increasing over the years, indicating higher leverage. However, the return on equity remains positive, although it has decreased over time. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Highwoods Properties has experienced a decline in free cash flow growth in the TTM period, which is a concern. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. The free cash flow to net income ratio is stable, reflecting consistent cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	809.55M	825.86M	834.00M	828.93M	768.01M	736.90M
Gross Profit	543.47M	553.69M	565.22M	569.12M	531.57M	505.07M
EBITDA	581.42M	550.50M	587.45M	556.95M	668.42M	680.46M
Net Income	127.27M	102.25M	148.72M	159.06M	313.28M	347.40M
Balance Sheet
Total Assets	6.14B	6.03B	6.00B	6.06B	5.70B	5.21B
Cash, Cash Equivalents and Short-Term Investments	26.26M	22.41M	25.12M	21.36M	23.15M	109.32M
Total Debt	3.40B	3.29B	3.21B	3.20B	2.79B	2.47B
Total Liabilities	3.69B	3.60B	3.52B	3.50B	3.08B	2.74B
Stockholders Equity	2.38B	2.36B	2.43B	2.48B	2.48B	2.34B
Cash Flow
Free Cash Flow	363.25M	403.58M	216.95M	421.51M	414.56M	355.80M
Operating Cash Flow	363.25M	403.58M	393.56M	421.78M	414.56M	358.16M
Investing Cash Flow	-336.83M	-302.44M	-175.96M	-614.80M	-287.68M	110.68M
Financing Cash Flow	-18.61M	-99.04M	-205.75M	187.93M	-284.93M	-294.34M

Highwoods Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIW, the sentiment is Negative. The current price of 25.62 is below the 20-day moving average (MA) of 26.78, below the 50-day MA of 28.39, and below the 200-day MA of 29.14, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 28.91 is Positive, neither overbought nor oversold. The STOCH value of 18.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIW.

Highwoods Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	71 Outperform	$4.75B	14.65	5.94%	5.44%	0.77%	62.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	65 Neutral	$2.82B	22.24	5.37%	7.80%	-2.10%	-13.30%
CUZ	63 Neutral	$4.23B	72.55	1.26%	5.09%	16.38%	3.60%
PDM	55 Neutral	$1.09B	-15.03	-4.45%	5.70%	-1.23%	9.10%
DEI	52 Neutral	$1.93B	92.90	1.03%	6.45%	-0.12%	―
SLG	49 Neutral	$3.47B	―	0.61%	6.93%	8.60%	―

Highwoods Properties Corporate Events

Highwoods Properties Completes $350M Notes Offering

On November 14, 2025, Highwoods Realty Limited Partnership, the operational arm of Highwoods Properties, Inc., successfully completed a public offering of $350 million in notes with a 5.350% interest rate, set to mature on January 15, 2033. This financial move is poised to impact the company’s operations by providing capital for potential growth and strengthening its market position in the real estate sector.

Highwoods Properties Announces $350M Notes Offering

On November 4, 2025, Highwoods Properties, Inc. and its Operating Partnership entered into an underwriting agreement for a public offering of $350 million in notes with a 5.350% interest rate, due January 15, 2033. This strategic financial move, expected to close on November 14, 2025, is set to enhance the company’s capital structure and potentially strengthen its market position in the real estate sector.