Highwoods Properties Inc

Latest Results (30.06.2026):

Highwoods Properties Inc — Fourth Quarter and Full Year 2025: The company reported Q4 2025 net income of $0.26 per diluted share ($28.7M) and FFO of $0.90 per diluted share ($100.8M). For full year 2025 Highwoods reported net income of $1.45 per diluted share ($157.3M) and FFO of $3.48 per diluted share ($385.0M). The quarter featured strong leasing activity, meaningful rent improvement versus prior years, a $474M development pipeline that is 78% pre-leased, and a 2026 FFO outlook of $3.40 to $3.68 per share.

Earnings and FFO

Q4 2025 net income available to common stockholders was $28.7M ($0.26/share) and FFO was $100.8M ($0.90/share). Full year 2025 net income was $157.3M ($1.45/share) and FFO was $385.0M ($3.48/share). Q4 FFO included $0.06/share of land sale gains and a $0.01/share dilutive impact from financing/investment activity not in prior outlook.

Leasing and Rent Momentum

Signed 526,000 SF of second-generation leases in Q4 (221,000 SF of new leases) with a dollar-weighted average term of 5.6 years. GAAP rent growth on leases was 15.4% and cash rent growth was 1.2%; company-wide net effective rents in 2025 were ~20% higher than 2024 and 19% above the 2022 peak.

Occupancy and Same-Property Performance

Ended the quarter with in-service occupancy of 85.3% and an in-service leased rate of 89.2% (leased rate ~400 bps above year-end occupancy). Same-property cash NOI was flat year-over-year (0.0%) and same-property GAAP NOI grew 0.4% for the quarter.

Development Pipeline

Current development pipeline at Highwoods’ share is $474M and 78% pre-leased. Since the prior quarter the company signed 95,000 SF of first-generation leases and continues to expect embedded NOI growth as projects stabilize.

Acquisitions and Dispositions

Completed acquisition of 6Hundred at Legacy Union (411k SF) for $223.0M in Q4 (44% occupied at closing). Since October 2025 the company sold $108M of non‑core properties (including $42M sold subsequent to year-end) and acquired additional assets (The Terraces and Bloc83) in joint ventures.

Financing and Balance Sheet

Ended Q4 with net debt-to‑Adjusted EBITDAre of 6.6x, $725M available on a $750M unsecured revolver, and no consolidated maturities until 2027. Issued $350M of unsecured notes due January 2033 at an effective 5.43% rate and raised ~$10.7M via ATM share issuance.

2026 Outlook and One‑time Items

Management expects 2026 FFO per share of $3.40–$3.68. The outlook reflects an estimated ~$(0.09)/share drag at the midpoint from temporary/accelerated items (including 6Hundred occupancy ramp and financing timing) and potential up to $0.16/share of land sale gains in 2026.