Highwoods Properties (HIW) came out with quarterly funds from operations (FFO) of $0.90 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to FFO of $0.93 per share a year ago.
Highwoods Properties offers solid upside potential due to strong leasing activity, a healthy balance sheet, and attractive Sun Belt market exposure. Despite recent price appreciation, HIW's valuation remains attractive with a low forward P/FFO multiple of 9.86x, below the sector median. Management's raised full-year outlook and strong leasing volumes suggest potential for further earnings beats and increased investor confidence.
HIW's portfolio of premier office properties in high-growth Sun Belt markets is well-poised to gain from tenants' rising preference for premium office spaces.
Solid recovery in demand for premium office properties, a diverse tenant base and capital recycling augur well for HIW. Competition from peers is a risk.
HIW reports healthy leasing activity amid the rising demand for high-quality office buildings.
Highwoods Properties has delivered a strong return of 34% since our Strong Buy recommendation, but we are now downgrading it to a "Hold". The company's fundamentals remain solid with high occupancy and consistent cash flow, but future growth is expected to be flat or negative. We are cutting our price target to $35/share due to lower growth estimates and current high valuation, limiting further upside potential.
Highwoods' (HIW) healthy leasing activity amid the rising demand for premier offices, well-diversified tenant base, aggressive capital-recycling program and balance-sheet strength are key growth drivers.
Highwoods Properties Inc focuses on suburban sunbelt properties, experiencing faster NOI growth. Q2'24 results showed good leasing progress, with increased SPNOI growth and raised FFO outlook. Despite strong results, potential risks include geographic concentration, interest rate sensitivity, and prolonged office real estate downturn.
Highwoods' (HIW) Q2 FFO surpasses estimates. Results reflect a fall in rental property and other expenses.
The headline numbers for Highwoods Properties (HIW) give insight into how the company performed in the quarter ended June 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 $0.98 per share, beating the Zacks Consensus Estimate of $0.90 per share. This compares to FFO of $0.94 per share a year ago.
Highwoods' (HIW) portfolio of premier office properties, a rebound in demand in its markets and a healthy balance sheet are key catalysts. However, competition from peers and high interest rates are concerns.