Highwoods Properties Inc

Latest Results (28.11.2025):

Highwoods Properties, Inc. reported results for the third quarter of 2025. The company recorded net income available for common stockholders of $0.12 per diluted share and FFO available for common stockholders of $0.86 per diluted share. Leasing activity was strong (over 1.0M SF of second‑generation leases), but same‑property cash NOI declined 3.6% year‑over‑year; in‑service occupancy was 85.3% and in‑service leased rate was 88.7% at quarter end.

Key financials

Q3 2025 net income was $12.9M ($0.12 per diluted share) and FFO was $94.8M ($0.86 per diluted share). Nine‑month FFO was $284.2M ($2.58 per share). Same‑property cash NOI fell 3.6% YoY.

Leasing performance

Signed 1,049,000 SF of second‑generation leases (including 326,000 SF of new leases) with a dollar‑weighted average lease term of 6.7 years. GAAP rent growth was 18.3% and cash rent growth 0.3%; net effective rents were 21.8% above the prior five‑quarter average (a company high).

Occupancy and portfolio

In‑service occupancy was 85.3% and in‑service leased rate 88.7% at September 30, 2025. Average in‑place cash rents increased 1.6% per SF year‑over‑year.

Development pipeline

Development pipeline at Highwoods share totaled $474M and was 72% leased, with $96M remaining to fund. The company signed 138,000 SF of first‑generation leases, including 122,000 SF in the development pipeline.

Investment activity

Acquired the Legacy Union Parking Garage in Uptown Charlotte for $111.5M (supports 1.2M SF of owned office at Legacy Union) and sold a non‑core office (Stony Point IV) for $16M.

Financing and liquidity

Raised approximately $59.3M of gross equity through the ATM program. Ended the quarter with total available liquidity of over $625M, recast a $200M unsecured term loan extending maturity to January 2031, and reported net debt‑to‑Adjusted EBITDAre of ~6.4x with no consolidated maturities until 2027.

2025 outlook

Updated full‑year 2025 FFO guidance to $3.41–$3.45 per share (midpoint $3.43), up modestly from the prior midpoint provided in July. Outlook assumptions include year‑end occupancy ~85.7%–86.3% and same‑property cash NOI decline of roughly 3.0%–2.0%.