Shares of real estate investment trust (REIT) Highwoods Properties, Inc. (HIW) have declined 7.8% so far this year. HIW’s recent fourth-quarter numbers came in ahead of expectations on both its top-line and bottom-line fronts.
Revenue increased 13% year-over-year to $203.2 million, beating estimates by $3.4 million. Earnings per share at $1.19 were better than expectations by $0.59. Notably, the company delivered funds from operation (FFO) of $1.06 per share, which is the highest figure in its history.
Additionally, HIW signed second-generation leases of 884,000 square feet during this period, which helped push its occupancy rate to 91.2%.
With these positive developments in mind, let us take a look at the changes in HIW’s key risk factors that investors should know.
According to the TipRanks Risk Factors tool, Highwoods’ top risk category is Finance & Corporate, contributing 11 of the total 33 risks identified for the stock, compared to a sector average of 27 risk factors under the same category.
In its recent report, the company has changed one key risk factor under the Finance & Corporate risk category.
HIW highlighted that for a company to maintain its status as a REIT, at least 90% of its taxable income (excluding net capital gains) has to be distributed to shareholders. Consequently, this limits HIW’s ability to accumulate capital for other business objectives including paring down debt, reinvestments in the existing portfolio, or pursuing growth initiatives.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have increased holdings in Highwoods by 6.2 thousand shares in the last quarter, indicating a neutral hedge fund confidence signal in the stock based on activities of 2 hedge funds.
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