Highwoods Properties (HIW)
NYSE:HIW
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Highwoods Properties
(NYSE:HIW)
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Rating:67Neutral
Price Target:
$29.00
▲(23.09% Upside)
Action:Reiterated
Date:06/05/26
The score is driven primarily by resilient cash generation and a constructive earnings outlook supported by leasing momentum and embedded NOI growth. Offsetting factors are meaningful leverage and weaker recent net income, while technicals are strong but look overbought and valuation is mixed (high yield vs. high P/E).
Positive Factors
Resilient cash generation and improved FCF
Consistent operating cash flow and a marked TTM free cash flow improvement give Highwoods durable internal funding for debt service, development capex, and potential buybacks. Strong cash conversion supports liquidity and reduces near-term reliance on capital markets over coming quarters.
Negative Factors
Meaningful leverage constraining flexibility
Debt levels near 1.3–1.5x equity leave limited buffer against rate shocks or property-value declines. Elevated leverage raises refinancing and covenant sensitivity, constrains capital allocation choices, and increases downside risk to FFO if occupancy or NOI weaken over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient cash generation and improved FCF
Consistent operating cash flow and a marked TTM free cash flow improvement give Highwoods durable internal funding for debt service, development capex, and potential buybacks. Strong cash conversion supports liquidity and reduces near-term reliance on capital markets over coming quarters.
Read all positive factors
Highwoods Properties Key Performance Indicators (KPIs)
Highwoods Properties (HIW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.23B
Dividend Yield7.83%
Average Volume (3M)1.61M
Price to Earnings (P/E)34.5
Beta (1Y)0.77
Revenue Growth0.88%
EPS Growth-47.90%
CountryUS
Employees350
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.84
Shares Outstanding110,272,700
10 Day Avg. Volume1,983,263
30 Day Avg. Volume1,606,059
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 Cap2.11
Enterprise Value/Revenue8.33
Enterprise Value/Gross Profit12.36
Enterprise Value/Ebitda12.31
Forecast
1Y Price Target
$28.33Price Target Upside20.26% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.07
Revenue Forecast (FY)$855.37M
Highwoods Properties Business Overview & Revenue Model
Company Description
Highwoods Properties, Inc., based in Raleigh, operates as an S&P MidCap 400 Index constituent. This publicly listed Real Estate Investment Trust (REIT), whose shares trade on the NYSE under the ticker HIW, focuses exclusively on office properties....
How the Company Makes Money
Highwoods Properties makes money primarily by generating recurring rental income from leasing office space in its properties. Tenants typically sign multi-year leases and pay base rent; revenue may also include reimbursements and recoveries from t...
Highwoods Properties Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
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.Positive Updates
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).
Negative Updates
Occupancy Lag Despite High Leased Percentage
Although combined placed-in-service and pipeline are 86% leased, they are only 48% occupied; spread between leased and occupied rates is 470 basis points (three times historical), indicating a timing lag before occupancy and cash flows fully materialize.
Read all updates
Q1-2026 Updates
Positive
Negative
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).
Read all positive updates
Company Guidance
Highwoods reiterated 2026 guidance, maintaining an FFO outlook of $3.40–$3.68 per share (Q1 FFO was $0.84/sh or $94M) and a year‑end occupancy target of 86.5%–88.5% (midpoint 87.5%), noting a leased rate of 89.7% (up from 89.2%) and a leased–occupied spread of 470 bps; management expects FFO to ramp in H2 as roughly 1.2M sqft of signed leases commence by year‑end (300k+ sqft positive net absorption since 3/31, with ~300–400k sqft still needed this year and ~100k sqft/month through midyear to hit the midpoint), and highlighted balance‑sheet and capital plans including >$650M available liquidity, a $100M Granite Park 6 mortgage that repatriated >$50M, ~$200M of planned non‑core dispositions by midyear, potential repurchases up to $250M of stock, an expected year‑end debt/EBITDA in the low‑ to mid‑6s (assuming $200M sales), $40M of remaining development capex, and anticipated incremental benefits of >$20M annual NOI from recent developments; other income/term‑fee items are expected to total about $0.06–$0.07 for full‑year 2026.Highwoods Properties Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 819.76M | 806.11M | 825.86M | 834.00M | 828.93M | 768.01M |
| Gross Profit | 552.31M | 544.74M | 553.69M | 565.22M | 569.12M | 531.57M |
| EBITDA | 554.59M | 610.04M | 550.50M | 587.45M | 556.95M | 668.42M |
| Net Income | 93.48M | 159.61M | 102.25M | 148.72M | 159.06M | 313.28M |
Balance Sheet | ||||||
| Total Assets | 6.60B | 6.27B | 6.03B | 6.00B | 6.06B | 5.70B |
| Cash, Cash Equivalents and Short-Term Investments | 32.42M | 27.36M | 22.41M | 25.12M | 21.36M | 23.15M |
| Total Debt | 3.70B | 3.64B | 3.29B | 3.21B | 3.20B | 2.79B |
| Total Liabilities | 3.98B | 3.84B | 3.60B | 3.52B | 3.50B | 3.08B |
| Stockholders Equity | 2.37B | 2.38B | 2.36B | 2.43B | 2.48B | 2.48B |
Cash Flow | ||||||
| Free Cash Flow | 317.62M | 166.56M | 403.58M | 216.95M | 421.51M | 414.56M |
| Operating Cash Flow | 377.55M | 367.31M | 403.58M | 393.56M | 421.78M | 414.56M |
| Investing Cash Flow | -755.44M | -448.77M | -302.44M | -175.96M | -614.80M | -287.68M |
| Financing Cash Flow | 391.01M | 90.83M | -99.04M | -205.75M | 187.93M | -284.93M |
Highwoods Properties Technical Analysis
Positive
23.56
Price Trends
25.52
Positive
23.92
Positive
25.58
Positive
Market Momentum
1.22
Positive
66.63
Neutral
50.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIW, the sentiment is Positive. The current price of 23.56 is below the 20-day moving average (MA) of 27.85, below the 50-day MA of 25.52, and below the 200-day MA of 25.58, indicating a bullish trend. The MACD of 1.22 indicates Positive momentum. The RSI at 66.63 is Neutral, neither overbought nor oversold. The STOCH value of 50.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.23B | 34.47 | 3.94% | 7.83% | 0.88% | -47.90% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $4.65B | ― | -0.11% | 5.08% | 12.11% | -109.72% | |
63 Neutral | $4.32B | 19.88 | 4.05% | 5.75% | -1.42% | 8.81% | |
57 Neutral | $1.12B | -12.91 | -5.70% | 6.09% | -0.50% | -40.17% | |
56 Neutral | $3.89B | -23.58 | -3.89% | 6.95% | 7.65% | -478.02% | |
54 Neutral | $1.96B | -75.33 | -1.35% | 6.45% | 1.04% | -152.10% |
* Real Estate Sector Average
HIW
Highwoods Properties
29.28
0.05
0.16%
CUZ
Cousins Properties
28.28
-0.76
-2.61%
DEI
Douglas Emmett
11.71
-2.27
-16.23%
KRC
Kilroy Realty
36.81
3.84
11.64%
SLG
SL Green Realty
50.56
-10.92
-17.76%
PDM
Piedmont Office
8.94
1.54
20.81%
Highwoods Properties Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Highwoods Properties Extends Term Loan, Updates Credit Pricing
Positive
Jun 4, 2026
On June 3, 2026, Highwoods Properties modified its $150 million unsecured bank term loan, extending the maturity from May 2027 to June 2029, with options for up to two additional years if no defaults occur. The move lengthens the company’s d...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Highwoods Shareholders Reelect Board, Approve Governance Proposals
Positive
May 12, 2026
At its annual meeting of stockholders held on May 12, 2026, Highwoods Properties reported that shareholders overwhelmingly re-elected all nominated directors, including Charles A. Anderson, Carlos E. Evans, David L. Gadis, David J. Hartzell, Theod...
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.