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Highwoods Properties
(NYSE:HIW)
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Rating:59Neutral
Price Target:
$33.00
â–²(4.73% Upside)
Action:Reiterated
Date:08/28/26
The score is driven primarily by mixed financial performance: very strong cash flow generation is weighed down by sharp TTM revenue/profit deterioration and meaningful historical leverage for an office REIT. Technicals are steady but not strong, valuation is supported by the ~6.35% dividend yield despite a ~20.7 P/E, and the term-loan extension modestly improves financial flexibility.
Positive Factors
Strong Cash Generation
Robust operating and free cash flow indicate that the property portfolio continues to convert earnings into liquidity. This supports recurring investment, debt service and shareholder distributions, although annual cash flow volatility remains a constraint.
Negative Factors
Sharp Revenue Contraction
A steep trailing revenue decline indicates weakened portfolio contribution and limits the company’s ability to grow recurring rental income. Sustained pressure could reduce operating leverage and make it harder to fund redevelopment or offset lease rollover.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust operating and free cash flow indicate that the property portfolio continues to convert earnings into liquidity. This supports recurring investment, debt service and shareholder distributions, although annual cash flow volatility remains a constraint.
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
$3.44B
Dividend Yield6.41%
Average Volume (3M)1.19M
Price to Earnings (P/E)20.5
Beta (1Y)0.70
Revenue Growth3.30%
EPS Growth28.46%
CountryUS
Employees315
SectorGeneral
Sector StrengthN/A
IndustryREIT - Office
Share Statistics
EPS (TTM)1.52
Shares Outstanding110,306,210
10 Day Avg. Volume1,005,293
30 Day Avg. Volume1,193,792
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$32.33Price Target Upside2.61% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)1.13
Revenue Forecast (FY)$863.71M
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 recurring rental income from leasing office space in its properties. Tenants typically sign multi-year leases and pay base rent; revenue may also include reimbursements and recoveries from t...
Highwoods Properties Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The earnings call emphasized strong leasing momentum, notable rent growth (GAAP +19.4%, cash +4.8%), significant development leasing and near-term embedded NOI growth (> $20M annual NOI), solid liquidity (> $650M) and a maintained FFO outlook. Key execution items include dispositions, potential share repurchases, and continued development stabilization. Near-term challenges are primarily timing-related: a sizeable leased-vs-occupied gap (470 bps), Q2 FFO timing/dilution from dispositions and some expense/term-fee variability. Overall, positives around leasing, portfolio quality, and balance sheet optionality materially outweigh the timing and execution risks.Positive Updates
Strong Leasing Activity and Improved Leased Rates
Signed 958,000 sqft of second-generation leases (including >300,000 sqft of new leases); leased rate on in-service portfolio increased 50 basis points and leased rate on developments increased 800 basis points. Weighted average lease term on second-generation lease volume was 7.5 years (over one year longer than recent average).
Negative Updates
Occupancy Lag Despite High Leased Percentage
Although combined placed-in-service and pipeline are 86% leased, they are only 48% occupied; spread between leased and occupied rates is 470 basis points (three times historical), indicating a timing lag before occupancy and cash flows fully materialize.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Leasing Activity and Improved Leased Rates
Signed 958,000 sqft of second-generation leases (including >300,000 sqft of new leases); leased rate on in-service portfolio increased 50 basis points and leased rate on developments increased 800 basis points. Weighted average lease term on second-generation lease volume was 7.5 years (over one year longer than recent average).
Read all positive updates
Company Guidance
Highwoods reiterated 2026 guidance, maintaining an FFO outlook of $3.40–$3.68 per share (Q1 FFO was $0.84/sh or $94M) and a year‑end occupancy target of 86.5%–88.5% (midpoint 87.5%), noting a leased rate of 89.7% (up from 89.2%) and a leased–occupied spread of 470 bps; management expects FFO to ramp in H2 as roughly 1.2M sqft of signed leases commence by year‑end (300k+ sqft positive net absorption since 3/31, with ~300–400k sqft still needed this year and ~100k sqft/month through midyear to hit the midpoint), and highlighted balance‑sheet and capital plans including >$650M available liquidity, a $100M Granite Park 6 mortgage that repatriated >$50M, ~$200M of planned non‑core dispositions by midyear, potential repurchases up to $250M of stock, an expected year‑end debt/EBITDA in the low‑ to mid‑6s (assuming $200M sales), $40M of remaining development capex, and anticipated incremental benefits of >$20M annual NOI from recent developments; other income/term‑fee items are expected to total about $0.06–$0.07 for full‑year 2026.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
Positive
31.51
Price Trends
31.50
Negative
28.59
Positive
25.98
Positive
Market Momentum
-0.11
Positive
49.81
Neutral
48.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIW, the sentiment is Positive. The current price of 31.51 is above the 20-day moving average (MA) of 31.07, above the 50-day MA of 31.50, and above the 200-day MA of 25.98, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 48.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $4.36B | 25.79 | 3.17% | 5.82% | -3.76% | -22.82% | |
61 Neutral | $4.24B | -21.70 | -4.61% | 4.54% | 7.60% | -387.48% | |
60 Neutral | $1.21B | -14.92 | -5.39% | 7.07% | 0.70% | -17.55% | |
59 Neutral | $3.44B | 20.52 | 7.09% | 6.41% | 3.30% | 28.46% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | $4.79B | 708.27 | 0.14% | 4.40% | 11.89% | -89.22% | |
50 Neutral | $1.91B | -83.60 | -1.21% | 6.65% | 0.78% | -167.70% |
* General Sector Average
HIW
Highwoods Properties
31.19
1.60
5.39%
CUZ
Cousins Properties
29.11
1.41
5.09%
DEI
Douglas Emmett
11.42
-4.07
-26.28%
KRC
Kilroy Realty
37.14
-3.05
-7.58%
SLG
SL Green Realty
55.56
-2.59
-4.46%
PDM
Piedmont Office
9.68
0.86
9.75%
Highwoods Properties Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Highwoods Properties Extends Term Loan, Updates Credit Pricing
Positive
Jun 4, 2026
On June 3, 2026, Highwoods Properties modified its $150 million unsecured bank term loan, extending the maturity from May 2027 to June 2029, with options for up to two additional years if no defaults occur. The move lengthens the company’s d...
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.