Highwoods Properties (HIW)
NYSE:HIW
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Highwoods Properties
(NYSE:HIW)
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Rating:56Neutral
Price Target:
$27.00
▲(28.27% Upside)
Action:ReiteratedDate:02/11/26
The score is primarily held back by weakening profitability and data-quality uncertainty in the latest period, despite resilient operating cash flow and a stable (but leveraged) balance sheet. Technically, the stock remains in a downtrend with negative momentum. Offsetting factors include a high dividend yield and a generally constructive earnings-call outlook, though near-term headwinds and disposition execution risk limit upside confidence.
Positive Factors
Stable, strong operating cash flow
Highwoods shows durable operating cash generation over multiple years, with free cash flow generally tracking OCF. That steady cash flow underpins dividend coverage, funds capex and development, and provides flexibility for portfolio rotation and acquisitions even if near-term earnings are volatile.
Negative Factors
Sharp earnings deterioration and 2025 near‑zero net income
Net income compression to near zero signals weakening profitability and raises concern about earnings quality. While cash flow remains stronger, prolonged low reported earnings limit retained earnings, reduce buffer for downturns, and complicate stakeholder confidence in sustained dividend support.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable, strong operating cash flow
Highwoods shows durable operating cash generation over multiple years, with free cash flow generally tracking OCF. That steady cash flow underpins dividend coverage, funds capex and development, and provides flexibility for portfolio rotation and acquisitions even if near-term earnings are volatile.
Read all positive factors
Highwoods Properties (HIW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.31B
Dividend Yield7.83%
Average Volume (3M)1.66M
Price to Earnings (P/E)24.3
Beta (1Y)0.79
Revenue Growth-2.10%
EPS Growth-13.30%
CountryUS
Employees350
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.26
Shares Outstanding109,931,100
10 Day Avg. Volume1,407,021
30 Day Avg. Volume1,663,436
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)1.18
Price to Sales (P/S)3.47
P/FCF Ratio16.81
Enterprise Value/Market Cap2.56
Enterprise Value/Revenue7.35
Enterprise Value/Gross Profit10.88
Enterprise Value/Ebitda9.71
Forecast
1Y Price Target
$24.50Price Target Upside16.39% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.93
Revenue Forecast (FY)$849.27M
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 a...
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, e...
Highwoods Properties Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive long-term outlook supported by strong Sunbelt market fundamentals, outsized rent growth (net effective rents +20% vs 2024), a highly pre-leased development pipeline (78% pre-leased), and disciplined capital recycling and acquisitions expected to deliver attractive yields (~8%). Near-term challenges were clearly disclosed: temporary dilution and lower NOI from the recently acquired 600 at Legacy Union, elevated leasing capital and straight-line rent pressures weighing on near-term cash flow, and the need to execute ~$190–210M of dispositions by midyear to complete a leverage-neutral rotation. Management characterized most 2026 headwinds as temporary, with expected recovery and stronger growth in 2027 as development stabilizes and recently acquired assets reach higher occupancy.Positive Updates
Strong FFO and Upward 2026 Outlook
Reported Q4 FFO of $0.90 per share (including $0.06 per share of land sale gains) and full-year 2025 FFO of $3.48 per share. Initial 2026 FFO outlook range of $3.40 to $3.68 (midpoint $3.54), which management stated is ~5.7% higher at the midpoint versus their initial 2025 outlook.
Negative Updates
Temporary 2026 FFO Headwinds from Recent Transactions
Management identified approximately $0.09 per share of temporarily lower 2026 FFO at the midpoint driven primarily by: ~$(0.07) per share dilution from 600 at Legacy Union (building is 89% leased but only ~44% occupied), and ~$(0.03) per share hit from opportunistic early bond issuance (partly offset by +$0.01 from temporary leverage). Land sale gains of up to $0.16 per share (or $0.08 at midpoint) were included in the outlook.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong FFO and Upward 2026 Outlook
Reported Q4 FFO of $0.90 per share (including $0.06 per share of land sale gains) and full-year 2025 FFO of $3.48 per share. Initial 2026 FFO outlook range of $3.40 to $3.68 (midpoint $3.54), which management stated is ~5.7% higher at the midpoint versus their initial 2025 outlook.
Read all positive updates
Company Guidance
Highwoods guided 2026 FFO of $3.40–$3.68 per share (midpoint $3.54), which Ted said is ~5.7% higher at the midpoint than the initial 2025 outlook; the company noted this 2026 midpoint includes up to $0.16 per share of potential land sale gains ( $0.08 at the midpoint) and assumes closing $190–$210 million of dispositions by midyear (they closed $66M in Q4 and $42M subsequent) as part of a leverage‑neutral rotation (roughly $200M more of dispositions to complete the plan). Management expects to drive occupancy ~200 bps higher from 2025 to 2026 with a year‑end occupancy target of ~87.5% (average guidance ~85–87%), same‑property cash NOI roughly flat in 2026 while GAAP same‑property NOI is projected ~150 bps higher than cash NOI, and noted $0.09 per share of temporary 2026 FFO headwinds at the midpoint (≈‑$0.07 from the acquisition of 600 at Legacy Union, ≈‑$0.03 from accelerated bond issuance, partially offset by +$0.01 from temporarily elevated leverage). Other relevant metrics embedded in the outlook: development pipeline $474M and 78% pre‑leased, 600’s GAAP NOI ≈$10M in 2026 and >$18M in 2027 with ~8% projected stabilized yields, recent 2025 acquisitions of ~$472M (including $223M for 600), ~$580M invested over the last 12 months (nearly $600M at share), $270M of dispositions last year, and the expectation that debt/EBITDA will start elevated and decline steady as dispositions close and EBITDA grows.Highwoods Properties Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 806.11M | 825.86M | 834.00M | 828.93M | 768.01M |
| Gross Profit | 544.74M | 553.69M | 565.22M | 569.12M | 531.57M |
| EBITDA | 610.04M | 550.50M | 587.45M | 556.95M | 668.42M |
| Net Income | 159.61M | 102.25M | 148.72M | 159.06M | 313.28M |
Balance Sheet | |||||
| Total Assets | 6.27B | 6.03B | 6.00B | 6.06B | 5.70B |
| Cash, Cash Equivalents and Short-Term Investments | 27.36M | 22.41M | 25.12M | 21.36M | 23.15M |
| Total Debt | 3.64B | 3.29B | 3.21B | 3.20B | 2.79B |
| Total Liabilities | 3.84B | 3.60B | 3.52B | 3.50B | 3.08B |
| Stockholders Equity | 2.38B | 2.36B | 2.43B | 2.48B | 2.48B |
Cash Flow | |||||
| Free Cash Flow | 166.56M | 403.58M | 216.95M | 421.51M | 414.56M |
| Operating Cash Flow | 367.31M | 403.58M | 393.56M | 421.78M | 414.56M |
| Investing Cash Flow | -448.77M | -302.44M | -175.96M | -614.80M | -287.68M |
| Financing Cash Flow | 90.83M | -99.04M | -205.75M | 187.93M | -284.93M |
Highwoods Properties Technical Analysis
Negative
21.05
Price Trends
23.55
Negative
24.94
Negative
27.09
Negative
Market Momentum
-0.69
Negative
37.05
Neutral
35.55
Neutral
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 21.05 is below the 20-day moving average (MA) of 21.83, below the 50-day MA of 23.55, and below the 200-day MA of 27.09, indicating a bearish trend. The MACD of -0.69 indicates Negative momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 35.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIW.
Highwoods Properties Risk Analysis
Highwoods Properties disclosed 36 risk factors in its most recent earnings report. Highwoods Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Highwoods Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $3.46B | 89.50 | 5.11% | 5.75% | 0.77% | 62.58% | |
56 Neutral | $2.31B | 24.27 | 6.69% | 7.83% | -2.10% | -13.30% | |
53 Neutral | $3.66B | 106.88 | 0.85% | 5.08% | 16.38% | 3.60% | |
51 Neutral | $2.78B | ― | -2.25% | 6.95% | 8.60% | ― | |
51 Neutral | $811.52M | -6.00 | -4.45% | 6.09% | -1.23% | 9.10% | |
45 Neutral | $1.58B | -67.23 | 1.03% | 6.45% | -0.12% | ― |
* Real Estate Sector Average
HIW
Highwoods Properties
21.05
-5.95
-22.04%
CUZ
Cousins Properties
21.78
-6.55
-23.11%
DEI
Douglas Emmett
9.45
-6.35
-40.18%
KRC
Kilroy Realty
28.91
-3.82
-11.67%
SLG
SL Green Realty
36.65
-19.29
-34.49%
PDM
Piedmont Office
6.50
-0.87
-11.80%
Highwoods Properties Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Highwoods Properties Launches $300 Million At-The-Market Equity Program
Neutral
Feb 11, 2026
On February 11, 2026, Highwoods Properties, Inc. and Highwoods Realty Limited Partnership entered into a series of equity distribution agreements with a syndicate of major broker‑dealers to offer and sell up to $300 million of common stock t...
Business Operations and StrategyPrivate Placements and Financing
Highwoods Properties Completes $350M Notes Offering
Positive
Nov 14, 2025
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 f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.