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Highwoods Properties (HIW)
NYSE:HIW
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Highwoods Properties
(NYSE:HIW)
Rating:65Neutral
Price Target:―
Positive Factors
Asset Sales
Highwoods Properties has successfully completed the sale of non-core buildings in Raleigh and Tampa, generating $166.4 million in gross proceeds.
Land Acquisition
The acquisition of the fee simple title to the land underneath the Century Center assets positions Highwoods Properties for potential future development opportunities.
Leasing Activity
Leasing activity increased to 1.3 million square feet from 0.9 million square feet in the previous quarter, reflecting a positive trend.
Negative Factors
Earnings Guidance
The earnings guidance is expected to be lower than consensus estimates, which may negatively impact investor sentiment.
Impairment
There is a $24.6 million non-cash impairment at 625 Liberty Avenue, indicating financial strain.
Occupancy Rates
Occupancy is at 87.1%, showing a decline both quarter-over-quarter and year-over-year.
Highwoods Properties (HIW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.23B
Dividend Yield6.67%
Average Volume (3M)894.65K
Price to Earnings (P/E)18.8
Beta (1Y)0.98
Revenue Growth-2.01%
EPS Growth31.64%
CountryUS
Employees350
SectorReal Estate
Sector Strength56
IndustryREIT - Office
Share Statistics
EPS (TTM)0.91
Shares Outstanding107,810,610
10 Day Avg. Volume915,907
30 Day Avg. Volume894,653
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)1.34
Price to Sales (P/S)0.00
P/FCF Ratio9.57
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit6.76
Enterprise Value/Ebitda1.77
Forecast
1Y Price Target
$29.40Price Target Upside0.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Highwoods Properties Business Overview & Revenue Model
Company DescriptionHighwoods 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 MoneyHighwoods Properties makes money primarily through leasing office space to tenants. The company's revenue model is based on long-term lease agreements that provide a steady stream of rental income. These leases often include provisions for annual rent increases, which help protect against inflation and contribute to revenue growth. In addition to rental income, Highwoods may generate revenue from property management fees and the sale of properties when market conditions are favorable. The company's partnerships with local governments and development projects also play a role in its earnings, as they can lead to new leasing opportunities and enhance the value of its existing properties. The focus on high-demand markets and strategic acquisitions further supports its financial performance.
Highwoods Properties Financial Statement Overview
Summary
Highwoods Properties exhibits mixed financial results. The income statement shows declining revenue and profitability, but the balance sheet indicates good leverage with no reported debt. Cash flow performance is strong, supporting liquidity and operational resilience. Overall, the company has a stable financial base despite revenue challenges.Income Statement
Highwoods Properties' income statement shows mixed results. The company has experienced a significant decline in total revenue for the latest annual report, leading to negative EBIT and a drastic reduction in net income. Despite these challenges, the company has maintained a positive EBITDA margin, indicating operational efficiency. However, the overall revenue growth rate appears stagnant over the years.40
Negative
Balance Sheet
The balance sheet of Highwoods Properties reveals moderate financial stability. The company has a solid equity ratio and no total debt reported in the most recent period, suggesting improved leverage. However, the return on equity has decreased due to the reduction in net income, potentially impacting future financial flexibility.60
Neutral
Cash Flow
Highwoods Properties shows strong cash flow metrics. The company has consistently generated positive operating cash flow, and the free cash flow has shown growth. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to profits. This strong cash position supports the company's liquidity and operational resilience.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 816.59M | 830.02M | 834.00M | 828.93M | 768.01M | 736.90M | Gross Profit |
| 474.73M | 557.85M | 565.22M | 569.12M | 531.57M | 505.07M | EBIT |
| 207.32M | 515.94M | 224.05M | 242.35M | 237.01M | 227.29M | EBITDA |
| 516.12M | 474.48M | 528.51M | 283.94M | 250.93M | 232.25M | Net Income Common Stockholders |
| 173.63M | 102.25M | 148.72M | 58.57M | 222.18M | 261.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 27.29M | 22.41M | 25.12M | 21.36M | 23.15M | 109.32M | Total Assets |
| 6.01B | 6.03B | 6.00B | 6.06B | 5.70B | 5.21B | Total Debt |
| 3.28B | 3.29B | 3.21B | 3.20B | 2.79B | 2.47B | Net Debt |
| 3.25B | 3.27B | 3.19B | 3.18B | 2.77B | 2.36B | Total Liabilities |
| 3.55B | 3.60B | 3.52B | 3.50B | 3.08B | 2.74B | Stockholders Equity |
| 2.40B | 2.36B | 2.43B | 2.48B | 2.48B | 2.34B |
| Cash Flow | Free Cash Flow | ||||
| 337.49M | 403.58M | 386.96M | 421.51M | 272.50M | 355.80M | Operating Cash Flow |
| 381.87M | 403.58M | 386.96M | 421.78M | 414.56M | 358.16M | Investing Cash Flow |
| -272.33M | -302.44M | -169.69M | -614.80M | -287.68M | 110.68M | Financing Cash Flow |
| -97.31M | -99.04M | -205.43M | 187.93M | -284.93M | -294.34M |
Highwoods Properties Technical Analysis
Positive
29.14
Price Trends
28.16
Positive
28.35
Positive
29.63
Negative
Market Momentum
0.59
Negative
52.81
Neutral
40.52
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 29.14 is above the 20-day moving average (MA) of 28.96, above the 50-day MA of 28.16, and below the 200-day MA of 29.63, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 40.52 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.34B | ― | -2.11% | 2.49% | 1.67% | 73.75% | |
70 Neutral | $7.75B | 19.51 | 3.69% | 6.59% | 1.11% | -3.07% | |
65 Neutral | $3.23B | 18.77 | 7.21% | 6.67% | -2.01% | 31.64% | |
64 Neutral | $4.63B | 82.44 | 1.15% | 4.64% | 10.93% | -31.07% | |
60 Neutral | $2.82B | 10.38 | 0.33% | 8508.19% | 5.98% | -17.49% | |
60 Neutral | $2.99B | 46.60 | 2.49% | 5.16% | -1.98% | ― | |
58 Neutral | $4.43B | 663.10 | -0.13% | 5.20% | 13.36% | 94.82% |
* Real Estate Sector Average
Performance Comparison
HIW
Highwoods Properties
29.14
5.42
22.85%
CUZ
Cousins Properties
26.94
5.12
23.46%
DEI
Douglas Emmett
14.14
1.36
10.64%
KRC
Kilroy Realty
31.52
0.95
3.11%
SLG
SL Green Realty
55.56
7.78
16.28%
PGRE
Paramount Group
5.76
1.32
29.73%
Highwoods Properties Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 6.82%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, robust investment activity, and successful leasing efforts, contributing to a positive outlook despite macroeconomic uncertainties and challenges in leasing capital expenditure. The company's strategic focus on high-quality assets in Sunbelt markets positions it well for future growth.Q1-2025 Updates
Positive Updates
Strong Financial Performance and Growth
Highwoods Properties delivered FFO of $0.83 per share, exceeding expectations, and generated healthy cash flow with a raised 2025 FFO outlook. The company executed substantial leasing activity and investment transactions, setting up for future growth.
Robust Investment Activity
The company recycled $145 million of non-core disposition proceeds into the acquisition of a $138 million Class AA building in North Hills, Raleigh, which is accretive to cash flow and expected to contribute significantly to long-term growth.
Leasing Success Across Portfolio
Highwoods signed 97,000 square feet of first-gen leases and 700,000 square feet of second-gen office space, with net effective rents more than 20% higher than the prior five-quarter average. The leasing pipeline remains strong.
Positive Outlook for Office Market
Despite macroeconomic uncertainties, the company remains optimistic due to strong leasing activity, robust demand in Sunbelt markets, and lack of new office supply, which is expected to drive rent growth.
Negative Updates
Macroeconomic Uncertainties
Concerns over the macroeconomic outlook, including potential government cutbacks and global tariffs, pose risks that could impact future leasing and investment activity.
Elevated Vacancy and Lease-Up Challenges
While the company executed significant leasing, there were known customer move-outs, leading to a dip in occupancy. The lease-up of certain core properties remains a focus to drive future NOI growth.
Increased Leasing Capital Expenditure
Higher leasing capital is expected over the next few quarters as the company works to drive occupancy higher, which will impact cash flow in the short term.
Company Guidance
During the Highwoods Properties Q1 2025 earnings call, the company provided several key metrics and guidance updates. They reported a robust investment activity with $145 million in non-core dispositions recycled into the $138 million acquisition of Advance Auto Parts Tower, enhancing their portfolio quality and projected long-term growth. The company placed in service 2827 Peachtree, a 79,135 square foot development, which is 94% leased. They signed 97,000 square feet of first-gen leases in their development pipeline, now 63% leased, and 700,000 square feet of second-gen office space with net effective rents over 20% higher than the prior five-quarter average. They raised the midpoint of their 2025 FFO outlook by $0.04, to a range of $3.31 to $3.47 per share, following strong financial performance and the acquisition of Advance Auto Parts Tower. Additionally, Highwoods' occupancy dipped due to known move-outs but is expected to grow in the coming years with a healthy backlog of signed leases. The company has also secured over 40% of the $25 million NOI growth from four core buildings and anticipates further growth from developments in Raleigh and Dallas.Highwoods Properties Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Highwoods Properties Approves New Equity Incentive Plan
Neutral
May 13, 2025
On May 13, 2025, Highwoods Properties‘ stockholders approved a new long-term equity incentive plan, which aims to align the interests of directors, officers, and employees with those of the stockholders by granting them ownership stakes in the company. The plan allows for the issuance of up to 1,250,000 shares of common stock as restricted stock or restricted stock units, with specific limitations on the number of shares that can be granted annually to individuals. Key features include restrictions on share recycling, prohibitions on stock options, and specific vesting period requirements, ensuring that awards are aligned with long-term company success. Additionally, the company held its annual stockholders’ meeting on the same day, where various matters, including the election of directors and the ratification of Deloitte & Touche LLP as the independent auditor for 2025, were voted on.
The most recent analyst rating on (HIW) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Highwoods Properties stock, see the HIW Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.