HIW's Q4 results reflect healthy leasing activity with rent growth amid rising demand for high-quality office buildings, though high interest expenses play a spoilsport.
The headline numbers for Highwoods Properties (HIW) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Highwoods Properties (HIW) came out with quarterly funds from operations (FFO) of $0.85 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.99 per share a year ago.
Besides Wall Street's top -and-bottom-line estimates for Highwoods Properties (HIW), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2024.
Healthy demand for HIW's high-quality office spaces, capital-recycling efforts and balance sheet strength bode well for long-term growth.
With the economy expected to thrive in 2025, focusing on REITs is a wise strategy as they offer crucial real estate infrastructure for physical and digital activities.
Highwoods Properties (HIW) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Highwoods Properties offers reliable dividends and is attractive for long-term investors due to its low P/FFO multiple and recent share price pullback. Despite a modest Q3 revenue miss, raised FFO guidance and strong leasing volumes indicate potential upside, especially with lower interest rates. The REIT's solid fundamentals, attractive Sun Belt market exposure, and conservative payout ratio make it a compelling buy at current valuations.
HIW's efforts to grow in high-growth markets, diversified tenant base, aggressive capital-recycling program and solid balance sheet are positives.
Highwoods Properties, Inc. (NYSE:HIW ) Q3 2024 Earnings Conference Call October 23, 2024 11:00 AM ET Company Participants Hannah True - Manager, Finance and Corporate Strategy Ted Klinck - President & CEO Brian Leary - EVP & COO Brendan Maiorana - EVP & CFO Conference Call Participants Blaine Heck - Wells Fargo Ronald Kamdem - Morgan Stanley Robert Stevenson - Janney Michael Griffin - Citigroup Nicholas Thillman - Baird Peter Abramowitz - Jefferies Dylan Burzinski - Green Street Operator Good morning. Thank you for joining today's Highwoods Properties Q3 2024 Earnings Call.
HIW's Q3 results reflect healthy leasing activity with rent growth amid rising demand for high-quality office buildings.
While the top- and bottom-line numbers for Highwoods Properties (HIW) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.