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Highwoods Properties (HIW)
:HIW
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Highwoods Properties
(NYSE:HIW)
Rating:68Neutral
Price Target:
$32.00
▲(2.33% Upside)
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 (HIW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.41B
Dividend Yield6.4%
Average Volume (3M)1.20M
Price to Earnings (P/E)26.7
Beta (1Y)0.91
Revenue Growth-2.16%
EPS Growth-16.41%
CountryUS
Employees350
SectorReal Estate
Sector Strength58
IndustryREIT - Office
Share Statistics
EPS (TTM)0.17
Shares Outstanding108,073,010
10 Day Avg. Volume1,099,104
30 Day Avg. Volume1,200,690
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.00
Enterprise Value/Revenue8.39
Enterprise Value/Gross Profit17.16
Enterprise Value/Ebitda12.72
Forecast
1Y Price Target
$29.80Price Target Upside-4.70% Downside
Rating ConsensusHold
Number of Analyst Covering5
Highwoods Properties Business Overview & Revenue Model
Company DescriptionHighwoods 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 MoneyHighwoods 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 Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment driven by strong leasing activity, financial performance improvements, and significant NOI growth potential. These positives are somewhat offset by challenges such as flat occupancy rates and high leasing CapEx. Despite these issues, the company maintains a robust balance sheet and promising development pipeline, indicating a well-positioned outlook for future growth.Q2-2025 Updates
Positive Updates
Strong Leasing Activity
Highwoods Properties achieved 923,000 square feet of second-gen leasing in Q2 2025, with 371,000 square feet being new leases, indicating potential future occupancy gains.
Financial Performance and FFO Increase
The company delivered FFO of $0.89 per share for the quarter, and raised the mid-point of the 2025 FFO outlook by $0.02 to a range of $3.37 to $3.45 per share, reflecting nearly a 2% increase.
NOI Growth Potential
Highwoods highlighted over $55 million of annual NOI growth potential in eight properties, with over 60% of this upside already secured with signed leases.
Resilient Balance Sheet
The company's debt-to-adjusted EBITDAre ratio was 6.3x at quarter-end, with over $700 million of available liquidity, and limited near-term debt maturities.
Development Pipeline Progress
Highwoods continues to advance its development pipeline, including projects like 23Springs in Dallas and Midtown East in Tampa, which are expected to drive future NOI growth.
Negative Updates
Flat Occupancy
Occupancy remained roughly flat from Q1 at 85.6%, with a leased rate increase of only 80 basis points to 88.9%.
Delayed Occupancy
Some leases that were expected to commence in late 2025 have been delayed to 2026, impacting the year-end occupancy outlook.
High Leasing CapEx
The elevated leasing CapEx due to future occupancy build continues to impact cash flows, with expectations of remaining high for the foreseeable future.
Company Guidance
During the Highwoods Properties Q2 2025 earnings call, the company provided guidance emphasizing robust leasing activity and significant NOI growth potential. Highwoods reported FFO of $0.89 per share for the quarter, with a year-end 2025 FFO outlook range of $3.37 to $3.45 per share, representing a $0.02 increase at the midpoint. Leasing volumes reached 923,000 square feet, including 371,000 square feet of new leases, raising their leased rate to 88.9%. The company highlighted $25 million of annual NOI upside from stabilizing its four core assets, with 50% of this potential already secured through signed leases. Development properties, including GlenLake III and Granite Park Six, offer over $10 million in NOI growth potential, with $6 million in signed leases yet to commence. Highwoods has positioned itself for meaningful growth, driven by strong leasing performance and a strategic focus on rotating into higher-growth, capital-efficient assets.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.65
Positive
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.60
Neutral
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.70
Positive
| 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
Positive
31.27
Price Trends
29.82
Positive
29.26
Positive
28.86
Positive
Market Momentum
0.46
Negative
66.28
Neutral
92.51
Negative
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 31.27 is above the 20-day moving average (MA) of 29.40, above the 50-day MA of 29.82, and above the 200-day MA of 28.86, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 66.28 is Neutral, neither overbought nor oversold. The STOCH value of 92.51 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.97B | 22.57 | 4.06% | 5.27% | 2.26% | 10.15% | |
70 Neutral | $1.72B | ― | -2.52% | 0.56% | -1.68% | 63.27% | |
69 Neutral | $4.95B | 79.88 | 1.30% | 4.40% | 13.07% | -4.94% | |
68 Neutral | $3.41B | 26.70 | 5.39% | 6.40% | -2.16% | -16.41% | |
63 Neutral | $7.06B | 13.77 | -0.50% | 7.05% | 4.08% | -25.24% | |
63 Neutral | $3.29B | 74.91 | 1.74% | 4.69% | -0.57% | ― | |
58 Neutral | $4.32B | 663.10 | -0.37% | 5.43% | 15.25% | 79.18% |
* Real Estate Sector Average
Performance Comparison
HIW
Highwoods Properties
31.27
1.51
5.07%
CUZ
Cousins Properties
29.16
2.20
8.16%
DEI
Douglas Emmett
16.15
1.01
6.67%
KRC
Kilroy Realty
40.98
7.77
23.40%
SLG
SL Green Realty
58.62
-3.07
-4.98%
PGRE
Paramount Group
7.37
2.40
48.29%
Highwoods Properties Corporate Events
Private Placements and Financing
Highwoods Properties Extends Loan Maturity to 2029
Neutral
Aug 14, 2025
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.
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.