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Highwoods Properties
(NYSE:HIW)
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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
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
$3.22B
Dividend Yield6.85%
Average Volume (3M)1.21M
Price to Earnings (P/E)17.3
Beta (1Y)0.65
Revenue Growth5.59%
EPS Growth45.12%
CountryUS
Employees315
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)1.69
Shares Outstanding110,306,210
10 Day Avg. Volume1,142,405
30 Day Avg. Volume1,214,179
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 Cap2.10
Enterprise Value/Revenue7.95
Enterprise Value/Gross Profit11.83
Enterprise Value/Ebitda11.53
Forecast
1Y Price Target
$32.67Price Target Upside3.67% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.21
Revenue Forecast (FY)$866.50M
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
Positive
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
Income Statement
68
Positive
Balance Sheet
56
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 851.95M | 806.11M | 825.86M | 834.00M | 828.93M | 768.01M |
| Gross Profit | 572.31M | 544.74M | 553.69M | 565.22M | 569.12M | 531.57M |
| EBITDA | 587.43M | 610.04M | 550.50M | 587.45M | 556.95M | 668.42M |
| Net Income | 187.54M | 159.61M | 102.25M | 148.72M | 159.06M | 313.28M |
Balance Sheet | ||||||
| Total Assets | 6.45B | 6.27B | 6.03B | 6.00B | 6.06B | 5.70B |
| Cash, Cash Equivalents and Short-Term Investments | 279.20M | 27.36M | 22.41M | 25.12M | 21.36M | 23.15M |
| Total Debt | 3.51B | 3.64B | 3.29B | 3.21B | 3.20B | 2.79B |
| Total Liabilities | 3.82B | 3.84B | 3.60B | 3.52B | 3.50B | 3.08B |
| Stockholders Equity | 2.37B | 2.38B | 2.36B | 2.43B | 2.48B | 2.48B |
Cash Flow | ||||||
| Free Cash Flow | 321.43M | 166.56M | 403.58M | 216.95M | 421.51M | 414.56M |
| Operating Cash Flow | 381.36M | 367.31M | 403.58M | 393.56M | 421.78M | 414.56M |
| Investing Cash Flow | -294.51M | -448.77M | -302.44M | -175.96M | -614.80M | -287.68M |
| Financing Cash Flow | 73.20M | 90.83M | -99.04M | -205.75M | 187.93M | -284.93M |
Highwoods Properties Technical Analysis
Negative
31.51
Price Trends
30.18
Negative
30.55
Negative
26.88
Positive
Market Momentum
-0.07
Negative
45.50
Neutral
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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $3.22B | 17.28 | 7.89% | 6.85% | 5.59% | 45.12% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 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 | $4.69B | 693.67 | 0.14% | 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
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.