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Highwoods Properties
(NYSE:HIW)
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Rating:56Neutral
Price Target:
$32.00
â–²(1.56% Upside)
Action:Reiterated
Date:09/15/26
HIW scores moderately due to strong cash-flow generation but meaningful fundamental headwinds (sharp TTM revenue/profit decline and leverage risk). The earnings call improved the outlook via higher FFO guidance and expected occupancy gains, but near-term technicals remain weak and valuation is only mixed (high yield offset by a ~20 P/E).
Positive Factors
Strong cash generation
Robust operating and free cash flow indicates that Highwoods’ rental operations are converting into meaningful liquidity. Healthy cash conversion can support debt reduction, leasing investment, development commitments, and shareholder distributions, strengthening financial resilience over the next several quarters.
Negative Factors
Revenue and profit contraction
The sharp decline in trailing revenue and profitability indicates that portfolio cash-flow growth has not yet translated into stable earnings. Lower net income and operating leverage can constrain reinvestment capacity and make recovery dependent on successful occupancy gains, leasing, and property stabilization.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating and free cash flow indicates that Highwoods’ rental operations are converting into meaningful liquidity. Healthy cash conversion can support debt reduction, leasing investment, development commitments, and shareholder distributions, strengthening financial resilience over the next several quarters.
Read all positive factors
Highwoods Properties Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyHighwoods Properties (HIW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.25B
Dividend Yield6.75%
Average Volume (3M)1.10M
Price to Earnings (P/E)19.5
Beta (1Y)0.70
Revenue Growth3.30%
EPS Growth28.46%
CountryUS
Employees315
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)1.52
Shares Outstanding110,306,210
10 Day Avg. Volume1,221,118
30 Day Avg. Volume1,101,925
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.18
Price to Sales (P/S)3.47
P/FCF Ratio16.81
Enterprise Value/Market Cap2.16
Enterprise Value/Revenue8.43
Enterprise Value/Gross Profit12.54
Enterprise Value/Ebitda12.59
Forecast
1Y Price Target
$32.67Price Target Upside3.67% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)1.34
Revenue Forecast (FY)$863.86M
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:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call was strongly optimistic. Highlights included healthy leasing, rising rents, improving occupancy, accelerated 23Springs stabilization, substantial disposition proceeds, stronger liquidity, reduced leverage, and higher 2026 FFO guidance. Management also described favorable Sun Belt supply-demand conditions and growing build-to-suit opportunities. The main challenges were low current dividend coverage, elevated leasing capital expenditures, pre-development write-offs, disposition-related FFO dilution, remaining 2027 debt maturity, and some soft submarkets, but these were presented alongside specific funding resources and expected improvements.Positive Updates
Healthy Leasing Volume
The company signed over 1 million square feet of second-generation leases, including 326,000 square feet of new leases, plus 63,000 square feet of first-generation leases in the development pipeline. Brian Leary also cited over 120 leases, including 41 new deals totaling 326,000 square feet.
Negative Updates
Higher G&A from Pre-Development Write-Offs
G&A was nearly $1 million higher than expected because of write-offs of previously capitalized pre-development costs for projects where management's view of the highest and best use had changed. These write-offs were the primary reason the 2026 G&A outlook increased.
Read all updates
Q2-2026 Updates
Positive
Negative
Healthy Leasing Volume
The company signed over 1 million square feet of second-generation leases, including 326,000 square feet of new leases, plus 63,000 square feet of first-generation leases in the development pipeline. Brian Leary also cited over 120 leases, including 41 new deals totaling 326,000 square feet.
Read all positive updates
Company Guidance
Highwoods Properties raised 2026 FFO outlook to a range of $3.46-$3.70 per share, or $3.58 at the midpoint, an increase of $0.04 per share; excluding land sale gains, the range is up $0.01 per share despite $0.04 per share of dilution. The company expects year-end occupancy in a range of 86.5%-88.5%, with nearly 200 basis points of upside over the next two quarters at the midpoint, and expects 23Springs to stabilize in the second quarter of 2027, nine months earlier than its pro forma, with $28 million of remaining capital needed. It expects to close at least an additional $100 million and maybe as much as $300 million of dispositions by the end of the year, and announce at least $100 million and potentially as much as $400 million of new development during the remainder of the year. Leasing CapEx was $84 million in the first half of the year, an annualized run rate of close to $170 million, and is expected to come down to probably $120 million over time; normalized cash flow is expected to be in the neighborhood of $100 million+ higher than the annual run rate for the first half of the year, while debt to EBITDA is expected to be modestly lower at year-end and continue to decline throughout 2027.Highwoods Properties Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
35
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 835.54M | 806.11M | 825.86M | 834.00M | 828.93M | 768.01M |
| Gross Profit | 561.59M | 544.74M | 553.69M | 565.22M | 569.12M | 531.57M |
| EBITDA | 559.35M | 610.04M | 550.50M | 587.45M | 556.95M | 668.42M |
| Net Income | 168.67M | 159.61M | 102.25M | 148.72M | 159.06M | 313.28M |
Balance Sheet | ||||||
| Total Assets | 6.47B | 6.27B | 6.03B | 6.00B | 6.06B | 5.70B |
| Cash, Cash Equivalents and Short-Term Investments | 145.38M | 27.36M | 22.41M | 25.12M | 21.36M | 23.15M |
| Total Debt | 3.52B | 3.64B | 3.29B | 3.21B | 3.20B | 2.79B |
| Total Liabilities | 3.88B | 3.84B | 3.60B | 3.52B | 3.50B | 3.08B |
| Stockholders Equity | 2.39B | 2.38B | 2.36B | 2.43B | 2.48B | 2.48B |
Cash Flow | ||||||
| Free Cash Flow | 374.97M | 166.56M | 403.58M | 216.95M | 421.51M | 414.56M |
| Operating Cash Flow | 386.24M | 367.31M | 403.58M | 393.56M | 421.78M | 414.56M |
| Investing Cash Flow | -462.02M | -448.77M | -302.44M | -175.96M | -614.80M | -287.68M |
| Financing Cash Flow | 201.80M | 90.83M | -99.04M | -205.75M | 187.93M | -284.93M |
Highwoods Properties Technical Analysis
Neutral
31.51
Price Trends
30.98
Negative
29.91
Negative
26.46
Positive
Market Momentum
-0.46
Positive
42.75
Neutral
38.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIW, the sentiment is Neutral. The current price of 31.51 is above the 20-day moving average (MA) of 30.12, above the 50-day MA of 30.98, and above the 200-day MA of 26.46, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 38.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $3.67B | -18.91 | -4.61% | 4.89% | 7.60% | -387.48% | |
56 Neutral | $3.25B | 19.50 | 7.09% | 6.75% | 3.30% | 28.46% | |
54 Neutral | $1.12B | -13.92 | -5.39% | 7.07% | 0.70% | -17.55% | |
53 Neutral | $4.50B | 672.99 | 0.14% | 4.63% | 11.89% | -89.22% | |
50 Neutral | $1.61B | -71.82 | -1.21% | 7.75% | 0.78% | -167.70% | |
45 Neutral | $478.00M | -3.35 | -18.69% | 11.64% | 0.51% | 56.07% |
* Real Estate Sector Average
HIW
Highwoods Properties
29.64
0.19
0.66%
CUZ
Cousins Properties
27.66
0.98
3.67%
DEI
Douglas Emmett
9.81
-4.11
-29.54%
SLG
SL Green Realty
48.40
-7.66
-13.67%
PDM
Piedmont Office
9.03
0.39
4.51%
BDN
Brandywine Realty
2.75
-0.78
-22.18%
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.