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Highwoods Properties (HIW)
NYSE:HIW
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Highwoods Properties (HIW) AI Stock Analysis

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HIW

Highwoods Properties

(NYSE:HIW)

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Neutral 66 (OpenAI - Gpt-5.6Sol)
Rating:66Neutral
Price Target:
$32.00
â–²(1.56% Upside)
Action:Reiterated
Date:10/28/26
The score is driven by constructive earnings-call momentum (raised FFO outlook, improving leasing/occupancy trajectory, liquidity and leverage expected to improve) and a supportive dividend yield. These positives are tempered by a levered balance sheet and uneven/volatile free cash flow, while technical indicators remain neutral-to-soft versus key intermediate moving averages.
Positive Factors
Improving Leasing and Occupancy
Higher occupancy and positive cash rent growth indicate improving demand for Highwoods’ office portfolio. This supports recurring rental revenue, strengthens leasing economics, and can improve same-property cash flow as recently signed leases mature and free-rent periods roll off.
Negative Factors
Meaningful Balance-Sheet Leverage
High absolute leverage leaves Highwoods more exposed to refinancing costs, asset-value pressure, and weaker occupancy than a less indebted owner. Although debt has declined, leverage can constrain capital allocation and make balance-sheet improvement dependent on sustained property cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Leasing and Occupancy
Higher occupancy and positive cash rent growth indicate improving demand for Highwoods’ office portfolio. This supports recurring rental revenue, strengthens leasing economics, and can improve same-property cash flow as recently signed leases mature and free-rent periods roll off.
Read all positive factors

Highwoods Properties Key Performance Indicators (KPIs)

Any
Any
Occupancy Rate
Occupancy Rate
Shows the share of rentable space currently leased across the portfolio, a direct indicator of rental income stability and market demand. Higher occupancy supports cash flow and rent pricing power; rising vacancy can signal weakening demand or competitive pressure.
Chart InsightsOccupancy has drifted down steadily since the 2021–22 peak, signaling persistent softness in leasing rather than a one-off dip. That gradual decline erodes same-property NOI and can pressure FFO/dividend coverage over time; the minor uptick in the latest quarter suggests early stabilization but isn’t yet convincing. Focus on upcoming lease expirations, renewal spreads and leasing velocity—meaningful improvement there would signal recovery, while continued weak renewals or rising concessions would keep earnings and payout ratios under stress.
Data provided by:The Fly

Highwoods Properties (HIW) vs. SPDR S&P 500 ETF (SPY)

Highwoods Properties Business Overview & Revenue Model

Company Description
Highwoods Properties, Inc., based in Raleigh, operates as an S&P MidCap 400 Index constituent. This publicly listed Real Estate Investment Trust (REIT), whose shares trade on the NYSE under the ticker HIW, focuses exclusively on office properties....
How the Company Makes Money
Highwoods Properties makes money primarily by generating rental revenue from leasing office space in its owned (and in some cases developed or acquired) properties. The core revenue stream is contractual base rent paid by tenants under lease agree...

Highwoods Properties Earnings Call Summary

Earnings Call Date:Oct 27, 2026
(Q3-2026)
|
% Change Since: |
Next Earnings Date:Feb 09, 2027
Earnings Call Sentiment Positive
The call was strongly constructive. Highlights included accelerating occupancy, strong leasing spreads, constrained office supply, raised FFO guidance, substantial disposition progress, improving leverage, ample liquidity, and positive development and renewal opportunities. The main challenges were elevated leasing CapEx, cash flow below normalized levels, slower acquisition activity, higher interest rates delaying transactions, and the delayed contribution from development. Management nevertheless expressed confidence in improving cash flow, occupancy, and long-term FFO growth.
Positive Updates
Strong Leasing Economics and Occupancy Gains
The company posted GAAP rent growth of 29% and cash rent growth of 4% on more than 1.2 million square feet of second-generation leases, achieving the second-highest second-generation net effective rents in company history. Portfolio occupancy increased 130 basis points from the end of the second quarter, while the lease rate reached 90.1%, up 50 basis points sequentially.
Negative Updates
Cash Same-Property NOI Growth Lagged GAAP Growth
Same-property cash NOI growth was 0.2%, compared with 4.1% GAAP NOI growth. The gap was primarily attributed to the occupancy build and associated free-rent periods.
Read all updates
Q3-2026 Updates
Negative
Strong Leasing Economics and Occupancy Gains
The company posted GAAP rent growth of 29% and cash rent growth of 4% on more than 1.2 million square feet of second-generation leases, achieving the second-highest second-generation net effective rents in company history. Portfolio occupancy increased 130 basis points from the end of the second quarter, while the lease rate reached 90.1%, up 50 basis points sequentially.
Read all positive updates
Company Guidance
Highwoods updated its 2026 FFO outlook to $3.51-$3.70 per share, including the possibility of $0.14 per share of land sale gains at the high end and none at the low end; excluding all land sale gains, the midpoint implies FFO of more than $0.90 per share for the fourth quarter. The company expects to sell an additional $100 million-$250 million of non-core assets by the end of the year, include $100 million-$400 million of new development announcements for the remainder of the year, and stabilize 23 Springs by the second quarter of next year. Year-end occupancy is expected at 87.0%-88.0%, with the midpoint remaining 87.5%, while new leasing volumes are expected to moderate; achieving occupancy of around 88.5% by the end of next year would require around 250 a quarter, give or take. Normalized leasing CapEx is expected to moderate into the low $100 million range, probably $110 million, $115 million, maybe $120 million, with 2027 an okay year from a cash flow perspective and normalized levels more likely in 2028 and thereafter. Debt to EBITDA is expected to be modestly lower at year-end and continue to decline throughout 2027, assuming otherwise leverage-neutral investment activities, and same-property NOI growth next year on a cash basis, probably in all likelihood, on a GAAP basis, is expected to be above trend levels.

Highwoods Properties Financial Statement Overview

Summary
Financials are solid but constrained: TTM results show improved revenue and rebounding net income with consistently positive operating cash flow and solid TTM free cash flow. Offsetting that, the balance sheet is meaningfully levered (high debt relative to equity), and free cash flow has been volatile and down versus the prior annual period—key risks for an office REIT if occupancy or financing conditions weaken.
Income Statement
68
Positive
Balance Sheet
56
Neutral
Cash Flow
61
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue851.95M806.11M825.86M834.00M828.93M768.01M
Gross Profit572.31M544.74M553.69M565.22M569.12M531.57M
EBITDA587.43M610.04M550.50M587.45M556.95M668.42M
Net Income187.54M159.61M102.25M148.72M159.06M313.28M
Balance Sheet
Total Assets6.45B6.27B6.03B6.00B6.06B5.70B
Cash, Cash Equivalents and Short-Term Investments279.20M27.36M22.41M25.12M21.36M23.15M
Total Debt3.51B3.64B3.29B3.21B3.20B2.79B
Total Liabilities3.82B3.84B3.60B3.52B3.50B3.08B
Stockholders Equity2.37B2.38B2.36B2.43B2.48B2.48B
Cash Flow
Free Cash Flow321.43M166.56M403.58M216.95M421.51M414.56M
Operating Cash Flow381.36M367.31M403.58M393.56M421.78M414.56M
Investing Cash Flow-294.51M-448.77M-302.44M-175.96M-614.80M-287.68M
Financing Cash Flow73.20M90.83M-99.04M-205.75M187.93M-284.93M

Highwoods Properties Technical Analysis

Technical Analysis Sentiment
Negative
Last Price31.51
Price Trends
50DMA
30.18
Negative
100DMA
30.55
Negative
200DMA
26.88
Positive
Market Momentum
MACD
-0.07
Negative
RSI
45.50
Neutral
STOCH
57.38
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 31.51 is above the 20-day moving average (MA) of 29.46, above the 50-day MA of 30.18, and above the 200-day MA of 26.88, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 57.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$3.22B17.287.89%6.85%5.59%45.12%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
65
Neutral
$1.14B-12.93-5.98%7.07%2.85%-25.01%
55
Neutral
$497.98M-3.65-19.42%10.96%3.52%25.03%
53
Neutral
$4.69B693.670.14%4.49%11.89%-89.22%
50
Neutral
$1.67B-73.21-1.21%7.60%0.78%-167.70%
48
Neutral
$3.74B-23.78-3.53%4.83%8.70%-340433.33%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HIW
Highwoods Properties
30.50
3.93
14.79%
CUZ
Cousins Properties
29.09
4.60
18.78%
DEI
Douglas Emmett
10.21
-1.61
-13.65%
SLG
SL Green Realty
50.93
2.14
4.38%
PDM
Piedmont Office
9.51
1.46
18.14%
BDN
Brandywine Realty
3.02
-0.12
-3.73%
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.Date of analysis: Oct 28, 2026