Highwoods Properties (HIW) AI Stock Analysis

• Market Cap: $3.14B
• Dividend Yield: 6.75%
• Average Volume (3M): 968.45K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.83
• Revenue Growth: -2.10%
• EPS Growth: -13.30%
• Country: US
• Employees: 350
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.12
• Shares Outstanding: 109,893,940
• 10 Day Avg. Volume: 1,178,239
• 30 Day Avg. Volume: 968,445
• PEG Ratio: -0.98
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 3.91
• P/FCF Ratio: 8.04
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 8.61
• Enterprise Value/Gross Profit: 17.66
• Enterprise Value/Ebitda: 12.20
• 1Y Price Target: $31.00
• Price Target Upside: 8.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: $31.00 ▲(8.66% Upside)

Highwoods Properties' overall stock score is driven by a positive earnings call highlighting strong leasing activities and strategic asset management. However, financial performance is challenged by declining revenue growth and increasing leverage. Technical indicators are bearish, but the attractive dividend yield provides a compensating factor.

Positive Factors

Strong Leasing Volume

Consistent strong leasing volumes enhance occupancy rates and revenue stability, reinforcing Highwoods' market position and growth potential.

Net Effective Rent Growth

Significant rent growth indicates strong demand and pricing power, contributing to improved revenue and profitability over the long term.

Development Pipeline Progress

Progress in the development pipeline suggests future revenue growth and asset value appreciation, supporting long-term business expansion.

Negative Factors

Elevated Capital Expenditures

Increased capital expenditures can strain cash flow and limit financial flexibility, potentially affecting short-term liquidity and investment capacity.

Potential Dilution from Capital Recycling

Asset recycling could dilute earnings if sale proceeds do not match acquisition costs, impacting financial performance and shareholder returns.

Revenue Growth Challenges

Declining revenue growth may signal market saturation or competitive pressures, potentially hindering long-term expansion and profitability.

Highwoods Properties Business Overview & Revenue Model

Company Description

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate investment trust (REIT) and a member of the S&P MidCap 400 Index. Highwoods is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa.

How the Company Makes Money

Highwoods 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 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 concerns.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	811.70M	830.02M	834.00M	828.93M	768.01M	736.90M
Gross Profit	395.79M	557.85M	565.22M	569.12M	531.57M	505.07M
EBITDA	573.01M	517.44M	528.51M	537.72M	489.12M	461.51M
Net Income	127.27M	102.25M	148.72M	159.06M	313.28M	347.40M
Balance Sheet
Total Assets	6.14B	6.03B	6.00B	6.06B	5.70B	5.21B
Cash, Cash Equivalents and Short-Term Investments	26.26M	22.41M	25.12M	21.36M	23.15M	109.32M
Total Debt	3.42B	3.29B	3.21B	3.20B	2.79B	2.47B
Total Liabilities	3.69B	3.60B	3.52B	3.50B	3.08B	2.74B
Stockholders Equity	2.38B	2.36B	2.43B	2.48B	2.48B	2.34B
Cash Flow
Free Cash Flow	363.25M	403.58M	386.96M	421.51M	272.50M	355.80M
Operating Cash Flow	363.25M	403.58M	386.96M	421.78M	414.56M	358.16M
Investing Cash Flow	-336.83M	-302.44M	-169.69M	-614.80M	-287.68M	110.68M
Financing Cash Flow	-18.61M	-99.04M	-205.43M	187.93M	-284.93M	-294.34M

Highwoods Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 28.53 is below the 20-day moving average (MA) of 29.78, below the 50-day MA of 30.88, and below the 200-day MA of 29.21, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 30.01 is Neutral, neither overbought nor oversold. The STOCH value of 29.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIW.

Highwoods Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	―	$5.05B	15.59	5.94%	5.11%	0.77%	62.58%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	―	$3.14B	24.74	5.37%	6.75%	-2.10%	-13.30%
CUZ	―	$4.33B	74.25	1.26%	4.94%	16.38%	3.60%
DEI	―	$2.17B	59.89	1.74%	5.86%	-0.57%	―
PDM	―	$1.01B	―	-4.45%	6.20%	-1.23%	9.10%
SLG	―	$3.82B	-8,130.65	0.63%	6.11%	7.66%	―

Highwoods Properties Corporate Events

Highwoods Properties Reports Q3 2025 Earnings

Highwoods Properties, Inc. is a real estate investment trust (REIT) that specializes in owning, developing, acquiring, leasing, and managing office properties primarily in major business districts across the southeastern United States. The company operates through Highwoods Realty Limited Partnership and is headquartered in Raleigh, North Carolina.

Highwoods Properties Extends Loan Maturity to 2029

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.

The most recent analyst rating on (HIW) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Highwoods Properties stock, see the HIW Stock Forecast page.

Highwoods Properties’ Earnings Call Reveals Positive Outlook

Highwoods Properties recently held its earnings call, reflecting a generally positive sentiment. The company is experiencing strong leasing activity and has increased its Funds From Operations (FFO) outlook, showcasing growth potential in its development pipeline. The focus on high-growth Sunbelt markets is yielding positive results, although challenges such as flat occupancy levels and elevated leasing CapEx remain. Overall, the positive aspects significantly outweigh the negatives, indicating a favorable outlook for the company.

Highwoods Properties Reports Q2 2025 Earnings

Highwoods Properties, Inc. is a real estate investment trust (REIT) specializing in the ownership, development, and management of office properties primarily located in the southeastern United States, including cities like Atlanta, Charlotte, and Nashville. The company operates through Highwoods Realty Limited Partnership, focusing on high-quality business districts.