Highwoods Properties (HIW) AI Stock Analysis

• Market Cap: $3.13B
• Dividend Yield: 6.91%
• Average Volume (3M): 987.94K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.95
• Revenue Growth: -2.16%
• EPS Growth: -16.41%
• Country: US
• Employees: 350
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Office
• EPS (TTM): 0.17
• Shares Outstanding: 108,073,010
• 10 Day Avg. Volume: 1,626,284
• 30 Day Avg. Volume: 987,941
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.18
• Enterprise Value/Revenue: 11.16
• Enterprise Value/Gross Profit: 16.67
• Enterprise Value/Ebitda: 13.18
• 1Y Price Target: $29.00
• Price Target Upside: 0.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $32.00 ▲(10.54% Upside)

The overall score reflects positive earnings call sentiment and strong financial performance, offset by technical weakness and a relatively high valuation. The potential for growth in high-demand markets and the attractive dividend yield are key strengths, while the high P/E ratio and bearish momentum are risks.

Positive Factors

Asset Sales

Highwoods Properties has successfully completed the sale of non-core buildings in Raleigh and Tampa, generating $166.4 million in gross proceeds.

Leasing Activity

Leasing activity increased to 1.3mn SF from 0.9mn SF in the previous quarter.

Negative Factors

Earnings Guidance

The 25e guidance is below expectations driven by lower same-store NOI and would expect shares to be under pressure.

Earnings Impact

2025 is anticipated to be a transition year for Highwoods Properties, with large lease expirations and asset recycling potentially impacting earnings.

Occupancy

Occupancy is at 87.1%, showing a decline both quarter-over-quarter and year-over-year.

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 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 presents a mixed financial picture. The income statement indicates challenges with revenue and profitability, but the balance sheet and cash flow statements highlight financial stability and liquidity. The company's strong cash generation provides a safety net despite recent revenue declines, suggesting potential for stabilization and growth.

Income Statement

Highwoods Properties' income statement shows mixed results. The company has experienced a significant decline in total revenue for the latest annual report, leading to negative EBIT and a drastic reduction in net income. Despite these challenges, the company has maintained a positive EBITDA margin, indicating operational efficiency. However, the overall revenue growth rate appears stagnant over the years.

Balance Sheet

The balance sheet of Highwoods Properties reveals moderate financial stability. The company has a solid equity ratio and no total debt reported in the most recent period, suggesting improved leverage. However, the return on equity has decreased due to the reduction in net income, potentially impacting future financial flexibility.

Cash Flow

Highwoods Properties shows strong cash flow metrics. The company has consistently generated positive operating cash flow, and the free cash flow has shown growth. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to profits. This strong cash position supports the company's liquidity and operational resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	611.63M	830.02M	834.00M	828.93M	768.01M	736.90M
Gross Profit	409.42M	557.85M	565.22M	569.12M	531.57M	505.07M
EBITDA	517.97M	474.48M	528.51M	283.94M	250.93M	232.25M
Net Income	128.41M	102.25M	148.72M	58.57M	222.18M	261.61M
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	0.00	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: Negative
• Last Price: 28.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 28.95 is below the 20-day moving average (MA) of 29.60, below the 50-day MA of 30.55, and below the 200-day MA of 29.50, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 38.16 is Neutral, 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	74 Outperform	$4.53B	20.57	4.06%	5.70%	2.26%	10.15%
HIW	72 Outperform	$3.13B	24.72	5.39%	6.91%	-2.16%	-16.41%
PGRE	66 Neutral	$1.62B	―	-2.52%	0.56%	-1.68%	63.27%
Sector *	65 Neutral	$2.02B	17.32	4.04%	5.11%	1.08%	-0.02%
CUZ	63 Neutral	$4.64B	74.76	1.30%	4.64%	13.07%	-4.94%
DEI	59 Neutral	$2.96B	67.33	1.74%	5.22%	-0.57%	―
SLG	58 Neutral	$3.95B	663.10	-0.37%	5.69%	15.25%	79.18%

Highwoods Properties Corporate Events

Highwoods Properties Approves New Equity Incentive Plan

On May 13, 2025, Highwoods Properties‘ stockholders approved a new long-term equity incentive plan, which aims to align the interests of directors, officers, and employees with those of the stockholders by granting them ownership stakes in the company. The plan allows for the issuance of up to 1,250,000 shares of common stock as restricted stock or restricted stock units, with specific limitations on the number of shares that can be granted annually to individuals. Key features include restrictions on share recycling, prohibitions on stock options, and specific vesting period requirements, ensuring that awards are aligned with long-term company success. Additionally, the company held its annual stockholders’ meeting on the same day, where various matters, including the election of directors and the ratification of Deloitte & Touche LLP as the independent auditor for 2025, were voted on.

The most recent analyst rating on (HIW) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Highwoods Properties stock, see the HIW Stock Forecast page.