HIW climbs 14.5% as Sun Belt leasing rebounds, rents rise, and pre-leased projects boost the outlook.
Highwoods Properties is an office REIT focused on the Sun Belt region, where the company derives over 95% of its net operating income. Q1 2025 FFO was down Y/Y and Q/Q, impacted by occupancy declines. Even so, the REIT increased its full-year outlook as leasing activity picked up in Q2 2025.
HIW signs more than 750,000 square feet of second-generation leases, fueling an 8.3% stock rally as demand rebounds in the Sun Belt office.
HIW secures 750K+ sq ft of second-generation leases, including 300K+ sq ft of new leases from the beginning of the second quarter through June 2, 2025.
Highwoods Properties, Inc. (NYSE:HIW ) Q1 2025 Earnings Conference Call April 30, 2025 11:00 AM ET Company Participants Brendan Maiorana - EVP & CFO Ted Klinck - President & CEO Brian Leary - EVP & COO Conference Call Participants Blaine Heck - Wells Fargo Ronald Kamdem - Morgan Stanley Rob Stevenson - Janney Montgomery Peter Abramowitz - Jefferies Nick Thillman - Baird Dylan Burzinski - Green Street Vikram Malhotra - Mizuho Omotayo Okusanya - Deutsche Bank Operator Good morning. Thank you for attending today's Highwoods Properties Q1 2025 Earnings Call.
HIW's Q1 results reflect decent leasing activity and rent growth. However, lower occupancy and same-store NOI impact the performance.
Highwoods Properties (HIW) came out with quarterly funds from operations (FFO) of $0.83 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to FFO of $0.89 per share a year ago.
HIW boosts its portfolio by acquiring Advance Auto Parts Tower, a class AA property in Raleigh's mixed-use North Hills BBD.
Highwoods Properties is downgraded to a hold due to economic uncertainty and potential prolonged headwinds impacting financials and occupancy rates. Despite solid property locations and a compelling valuation, declining FFO, tight dividend coverage, and disappointing 2025 outlook warrant caution. Management's confidence in their pipeline and balance sheet strength offers some optimism, but increased investment activity is needed for a future upgrade.
HIW to gain from growing demand for high-quality offices and strategic portfolio rebalancing efforts. High competition and interest expenses are concerns.
Highwoods Properties, Inc. HIW recently announced that it has agreed to acquire Advance Auto Parts Tower, a 20-story, Class AA office tower. The property, spanning around 346,000 square feet, is located in Raleigh's mixed-use North Hills Best Business District (“BBD”).
Highwoods Properties, Inc. (NYSE:HIW ) Q4 2024 Earnings Conference Call February 12, 2025 11:00 AM ET Company Participants Brendan Maiorana - EVP & CFO Ted Klinck - President & CEO Brian Leary - EVP & COO Conference Call Participants Michael Griffin - Citigroup Ronald Kamdem - Morgan Stanley Robert Stevenson - Janney Montgomery Mike Lewis - Truist Nicholas Thillman - Baird Tom Catherwood - BTIG Dylan Burzinski - Green Street Young Ku - Wells Fargo Vikram Malhotra - Mizuho Omotayo Okusanya - Deutsche Bank Operator Good morning. Thank you for attending today's Highwoods Properties Q4 2024 Earnings Call.