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olivLaw · US equity research

Highwoods Properties, Inc. HIW

Real Estate Investment Trusts · SIC 6798 · Vertical: Real Estate Investment Trusts (SIC 6798)

31.72USD−1.49% · 1 dayClose 05 Nov 2026

Highwoods Properties is a fully integrated office REIT that owns, develops, acquires, leases and manages office buildings in the best business districts of eight Southeastern US markets. The company matters now because occupancy dipped at the end of 2025 but recovered slightly in the first half of 2026, while rents on new and renewed leases rose markedly; occupancy of 85.7% (June 30, 2026) and a 20.9% rent increase are the key figures.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 05 Nov 2026, Highwoods Properties, Inc. (HIW) stock was 31.72 USD (−1.49% on the day), with market capitalisation 3.5 bn USD, P/E 37.5 on diluted EPS of 0.85 USD over the last 12 months, dividend yield 5.36%, beta 0.66, 52-week range 20.58–34.40 USD. Latest reported quarter (Q1 2026): revenue of 214.0 m USD (+6.8% YoY), net income of 33.4 m USD (−66.6% YoY), diluted EPS 0.29 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
3.5 bn USD
shares as of 21 Apr 2026
P/E (TTM)
37.5
Diluted EPS TTM 0.85 · TTM to 31 Mar 2026
E/P (TTM)
2.67%
TTM to 31 Mar 2026
Dividend yield
5.36%
DPS 12m 1.70
Beta (2y)
0.66
Volatility (1y) 30%
52-week range
20.5834.40

Price history

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Technical reading

RSI (14)
59.9
strong (55–70)
Bollinger (20, 2)
27.98 – 32.04
in the upper half of the band · %B 0.92 · band width 13.5%
SMA 50 / 200
30.15 / 27.60
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.43 / 0.15
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+7.0%−5.9%+13.0 pp—
3 months+0.8%−4.6%+5.4 pp—
6 months+24.1%+0.2%+23.8 pp—
Year to date+22.9%+7.4%+15.4 pp—
1 year+10.3%+8.2%+2.1 pp+4.4%
3 years+61.3%+68.4%−7.2 pp+14.7%
5 years−32.6%+56.5%−89.1 pp—
Max drawdown (1y)
−29.9%
07 Nov 2025 → 27 Mar 2026
Max drawdown (5y)
−62.9%
14 Jan 2022 → 25 Oct 2023
Compound annual growth (5y)
−7.6%
S&P 500 +9.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2026 · 31 Mar 2026

Revenue
214.0 m USD
+6.8% YoY
Net income
33.4 m USD
−66.6% YoY
Diluted EPS
0.29
−68.1% YoY
net / operating
15.6% / 66.8%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Revenue204.7 m204.3 m205.5 m200.4 m200.6 m201.8 m203.4 m214.0 m
Operating income140.2 m138.6 m134.1 m135.3 m136.9 m135.9 m136.6 m142.9 m
Depreciation & amortisation73.7 m79.1 m72.5 m71.4 m74.7 m73.9 m75.0 m77.5 m
Interest expense35.9 m37.5 m37.3 m36.6 m37.7 m38.5 m39.7 m41.7 m
Net income64.8 m15.5 m-3.2 m100.0 m19.2 m13.7 m29.7 m33.4 m
Diluted EPS0.590.14-0.03 ≈0.910.170.120.27 ≈0.29
Operating cash flow130.0 m ≈97.5 m ≈103.7 m46.3 m116.5 m ≈96.7 m ≈99.7 m62.8 m
Dividends paid53.0 m ≈53.0 m ≈53.5 m53.8 m53.9 m ≈54.0 m ≈55.0 m55.0 m

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 92 percentile of its own 38-quarter history (min 9.5, median 20.4, max 40.9; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue720.0 m736.0 m736.9 m768.0 m828.9 m834.0 m825.9 m806.1 m
Revenue YoY+2.5%+2.2%+0.1%+4.2%+7.9%+0.6%−1.0%−2.4%
Net income177.6 m141.7 m357.9 m323.3 m164.0 m151.3 m104.3 m162.7 m
Net income YoY−7.3%−20.2%+152.6%−9.7%−49.3%−7.7%−31.1%+56.0%
Diluted EPS1.641.303.322.981.491.390.941.45
Diluted EPS YoY−7.9%−20.7%+155.4%−10.2%−50.0%−6.7%−32.4%+54.3%
net %24.7%19.3%48.6%42.1%19.8%18.1%12.6%20.2%
Free cash flowunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
27.4 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
2.4 bn USD
Total assets
6.3 bn USD
Debt / equity
unavailable
Current ratio
unavailable
ROE
6.9%
ROA
2.6%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
834.0 m
2024
825.9 m
2025
806.1 m

SEC (XBRL)· 10 Feb 2026verified

Operating income
2023
565.2 m
2024
553.7 m
2025
544.7 m

SEC (XBRL)· 10 Feb 2026verified

Depreciation & amortisation
2023
299.4 m
2024
299.0 m
2025
295.0 m

SEC (XBRL)· 10 Feb 2026verified

EBITDA
2023
864.6 m ≈
2024
852.7 m ≈
2025
839.7 m ≈

SEC (XBRL)· 10 Feb 2026derived

Interest expense
2023
136.7 m
2024
147.2 m
2025
152.4 m

SEC (XBRL)· 10 Feb 2026verified

Net income
2023
151.3 m
2024
104.3 m
2025
162.7 m

SEC (XBRL)· 10 Feb 2026verified

Diluted EPS
2023
1.39
2024
0.94
2025
1.45

SEC (XBRL)· 10 Feb 2026verified

Weighted average diluted shares
2023
107.8 m
2024
108.3 m
2025
110.6 m

SEC (XBRL)· 10 Feb 2026verified

Balance sheet · USD

Cash
2023
25.1 m
2024
22.4 m
2025
27.4 m

SEC (XBRL)· 10 Feb 2026verified

Intangibles (excl. goodwill)
2023
225.9 m
2024
210.0 m
2025
244.3 m

SEC (XBRL)· 10 Feb 2026verified

Total assets
2023
6.0 bn
2024
6.0 bn
2025
6.3 bn

SEC (XBRL)· 10 Feb 2026verified

Total liabilities
2023
3.5 bn
2024
3.6 bn
2025
3.8 bn

SEC (XBRL)· 10 Feb 2026verified

Equity
2023
2.4 bn
2024
2.4 bn
2025
2.4 bn

SEC (XBRL)· 10 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
387.0 m
2024
403.6 m
2025
359.2 m

SEC (XBRL)· 10 Feb 2026verified

Investing cash flow
2023
-169.7 m
2024
-302.4 m
2025
-440.7 m

SEC (XBRL)· 10 Feb 2026verified

Financing cash flow
2023
-205.4 m
2024
-99.0 m
2025
90.8 m

SEC (XBRL)· 10 Feb 2026verified

Dividends paid
2023
211.0 m
2024
212.4 m
2025
216.7 m

SEC (XBRL)· 10 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-2.4%
computed by olivLawFY 2025
Revenue CAGR 3Y
-0.9%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
1.8%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
-1.6%
computed by olivLawFY 2025
Net income growth (YoY)
56.0%
computed by olivLawFY 2025
Net income CAGR 3Y
-0.3%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
-14.6%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
54.3%
computed by olivLawFY 2025
EPS CAGR 3Y
-0.9%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
-15.3%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
104.1%
computed by olivLawTTM to 31 Mar 2026
EBIT margin
67.4%
computed by olivLawTTM to 31 Mar 2026
Net margin
11.7%
computed by olivLawTTM to 31 Mar 2026
FCF margin
unavailable
input data missing

Returns

ROE
4.0%
computed by olivLawTTM to 31 Mar 2026 · balance sheet at 31 Mar 2026
ROA
1.5%
computed by olivLawTTM to 31 Mar 2026 · balance sheet at 31 Mar 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
3.5x
computed by olivLawTTM to 31 Mar 2026

Liquidity

Current ratio
unavailable
input data missing
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
375.7 m USD
computed by olivLawTTM to 31 Mar 2026
Capital expenditure
unavailable
input data missing
Free cash flow
unavailable
input data missing
Cash conversion
44.0%
computed by olivLawTTM to 31 Mar 2026

Market and valuation

Market capitalisation
3.5 bn USD
computed by olivLawbalance sheet at 31 Mar 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
36.4x
computed by olivLawTTM to 31 Mar 2026
P/E (TTM)
37.5x
computed by olivLawTTM to 31 Mar 2026
Earnings yield
2.7%
computed by olivLawTTM to 31 Mar 2026
P/B
1.5x
computed by olivLawbalance sheet at 31 Mar 2026
P/S
4.3x
computed by olivLawTTM to 31 Mar 2026 · balance sheet at 31 Mar 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
Dividend yield
5.4%
computed by olivLawTTM to 31 Mar 2026
Shareholder yield (distributions)
6.2%
computed by olivLawTTM to 31 Mar 2026 · balance sheet at 31 Mar 2026

9 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 57 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

31.72 USD

05 Nov 2026Source: olivLaw, closing series

Market cap: 3.5 bn USD

Key indicators

Market capitalisation
3.5 bn USD
computed by olivLawbalance sheet at 31 Mar 2026
P/E (TTM)
37.5x
computed by olivLawTTM to 31 Mar 2026
P/B
1.5x
computed by olivLawbalance sheet at 31 Mar 2026
EV/EBITDA
unavailable
input data missing
ROE
4.0%
computed by olivLawTTM to 31 Mar 2026 · balance sheet at 31 Mar 2026
Net margin
11.7%
computed by olivLawTTM to 31 Mar 2026
Revenue growth (YoY)
-2.4%
computed by olivLawFY 2025
Dividend yield
5.4%
computed by olivLawTTM to 31 Mar 2026

Coverage and freshness

17/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Mar 2026
Latest balance sheet date: 31 Mar 2026
Share count (cover of the latest filing), as of: 21 Apr 2026
Source: SEC (XBRL)published 28 Apr 2026
verified 1843derived 138

Score by group

  • Balance sheet80
  • Returns66
  • Quality72
  • Growth0
  • Valuation50

Estimated value range

Low
19.30
USD per share
Mid
29.81
USD per share
High
42.83
USD per share
Price: 31.72 USD
The price is within the range
Potential to the central value: -6.0% (value / price − 1)
Margin of safety: -6.4% (1 − price / value)
Agreement between methods: high · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 16.26 – 55.61 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • Net asset value (NAV)unavailable · input data missing
  • Dividend discount (DDM)22.34 – 30.04 (Mid 25.63)
  • Peers: P/B16.26 – 55.61 (Mid 33.99)
    31 companies used · median multiple 1.6x · quartiles 0.8x – 2.6x
    BRSP, BRT, CDP, CLDT, CSR, CTO, DLR, DOC, ESS, EXR, FR, HR, HST, INN, IOR, KIM, O, ONL, PECO, PLD, PSA, RITM, SQFT, SUI, SUNS, VICI, VMRK, VTR, WELL, WHLR, XRN
Multiple comparisons use the SIC vertical: Real Estate Investment Trusts (SIC 6798)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 57/100

FactorValueScoreWeight used
ROE · Quality4.0%35 (vs peers)8%
EBITDA margin · Quality104.1%100 (on a fixed band)11%
Revenue CAGR 3Y · Growth-0.9%0 (on a fixed band)11%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet3.5x80 (on a fixed band)16%
P/B · Valuation1.5x59 (vs peers)24%
P/E (TTM) · Valuation37.5x29 (vs peers)11%
Dividend yield · Returns5.4%66 (vs peers)19%
Payout ratio (EPS) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial80/100 · 1/2 factors with a value
  • Growth0/100 · 1/1 factors with a value
  • Quality72/100 · 2/2 factors with a value
  • Returns· partial66/100 · 1/2 factors with a value
  • Valuation50/100 · 2/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

HIGHWOODS PROPERTIES, INC. (HIW). Latest full fiscal year: 2025; data up to 2026-03-31.

Figures computed from the financial statements: revenue 806.1 m USD in 2025; YoY growth -2.4%; net margin 11.7%; ROE 4.0%.

The estimated value range is 19.30–42.83 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 29.81 USD, the price of 31.72 USD leaves a potential of -6.0% (value / price − 1) and a margin of safety of -6.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 57/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • EBITDA margin: 104.1%
  • Interest coverage: 3.5x

What contradicts it

  • Revenue CAGR 3Y: -0.9%
  • P/E (TTM): 37.5x

Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, Payout ratio (EPS).

Versus the vertical median

Real Estate Investment Trusts (SIC 6798) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
37.5x
vertical median 28.6x
above median (+31.3%)
EV/EBITDA
—
vertical median 14.5x
P/S
4.3x
vertical median 5.1x
below median (−17.0%)
P/B
1.5x
vertical median 1.7x
below median (−14.1%)
ROE
4.0%
vertical median 7.1%
below median (−43.5%)
Net margin
11.7%
vertical median 18.3%
below median (−36.1%)
EBIT margin
67.4%
vertical median 34.3%
above median (+96.4%)
Revenue YoY
-2.4%
vertical median 4.8%
below median (−149.7%)
Net debt/EBITDA
—
vertical median 4.9x
Dividend yield
5.4%
vertical median 4.0%
above median (+32.9%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
WELLWelltower Inc.180.0 bn105.14.0%12.7%+35.6%+18% / +175%
PLDPrologis, Inc.119.9 bn32.47.1%42.5%+7.2%+0% / +12%
EQIXEquinix Inc98.7 bn59.911.5%16.4%+5.4%+32% / +22%
AMTAmerican Tower Corporation90.0 bn27.290.6%30.7%+5.1%+7% / −7%
PSAPublic Storage63.6 bn34.616.0%37.8%+2.7%+24% / +32%
DLRDigital Realty Trust, Inc.61.4 bn45.66.2%21.7%+10.0%+9% / +26%
ORealty Income Corporation56.6 bn41.03.6%22.9%+9.1%+3% / +10%
VTRVentas, Inc.47.1 bn167.51.9%4.0%+18.5%+10% / +94%
CCICrown Castle Inc.38.7 bn47.9—20.1%−4.4%−0% / −22%
EXRExtra Space Storage Inc.33.4 bn32.67.9%29.9%+3.7%+20% / +23%
IRMIron Mountain Inc31.4 bn68.4—6.1%+12.2%+22% / +64%
VICIVICI Properties Inc.27.8 bn11.68.3%56.5%+4.1%−13% / −16%
VMRKVivmark Residential24.5 bn28.68.1%—+4.8%+6% / +15%
SBACSba Communications Corporation20.2 bn20.8—34.5%+5.1%−1% / −22%
ESSEssex Property Trust, Inc.17.4 bn41.78.0%22.7%+6.4%+3% / +27%
KIMKimco Realty Corporation17.2 bn28.35.8%27.8%+5.1%+24% / +33%
HSTHost Hotels & Resorts, Inc.16.9 bn16.515.8%16.5%+7.6%+40% / +41%
SUISun Communities, Inc14.6 bn—-12.8%-32.4%+2.0%−5% / −6%
DOCHealthpeak Properties, Inc.13.9 bn37.04.9%12.3%+4.5%+10% / +16%
RHPRyman Hospitality Properties, Inc.9.1 bn31.926.0%9.9%+10.2%+38% / +31%
FRFirst Industrial Realty Trust, Inc.7.1 bn19.613.4%48.0%+8.6%−6% / +15%
HRHealthcare Realty Trust Incorporated6.5 bn—-1.0%-4.0%−6.9%+5% / +25%
RITMRithm Capital Corp.5.3 bn13.75.8%8.7%−6.7%−18% / −9%
PECOPhillips Edison & Company, Inc.5.3 bn29.27.8%23.9%+9.9%+15% / +16%
CDPCopt Defense Properties3.7 bn21.611.7%22.1%+1.4%+5% / +34%

1- and 3-year price returns: for HIW from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
18.25
Total return -42% · Per year -42%
32.36
Total return 2% · Per year 2%
48.87
Total return 54% · Per year 54%
3 years
15.84
Total return -50% · Per year -21%
31.76
Total return 0% · Per year 0%
52.93
Total return 67% · Per year 19%
5 years
13.74
Total return -57% · Per year -15%
31.18
Total return -2% · Per year -0%
57.33
Total return 81% · Per year 13%
What moves the 3-year price the most
  • Exit P/E± 7.94
  • Net margin± 5.56
  • Annual revenue growth± 4.81
  • Annual dilution± 0.47

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 28 Jul 2026; since then the company filed 10-Q (27 Oct 2026).

In brief

Highwoods Properties is a fully integrated office REIT that owns, develops, acquires, leases and manages office buildings in the best business districts of eight Southeastern US markets. The company matters now because occupancy dipped at the end of 2025 but recovered slightly in the first half of 2026, while rents on new and renewed leases rose markedly; occupancy of 85.7% (June 30, 2026) and a 20.9% rent increase are the key figures.

SWOT

Strengths

  • A fully integrated model with in-house leasing, management, maintenance and service allows quick response to customer needs 1.
  • A balance sheet described as conservative, with an available revolving facility and access to diverse capital sources 1.
  • Recent rent gains on new and renewed leases point to pricing power in core markets 2.

Weaknesses

  • Occupancy fell in the second half of 2025 and remains below levels before that decline 1.
  • Reliance on a few large customers such as Bank of America and Asurion creates revenue concentration 2.
  • A relatively high leverage ratio could make profitability sensitive to the cost of financing 1.

Opportunities

  • If occupancy keeps improving, rental revenue could rise, especially in buildings with vacant space 2.
  • Planned acquisitions and developments in Dallas and Raleigh could add net operating income 1.
  • Recycling non-core properties could free capital for investment in higher-quality buildings 2.

Threats

  • Remote work could permanently reduce demand for office space 1.
  • Growing supply of new space in core markets could pressure rents and occupancy 1.
  • Rising interest rates could increase debt service costs 1.

Risks

  • Weaker office demandhigh

    Acceptance of remote work could reduce long-term demand for office space, affecting occupancy and rents 1.

  • Renewal risk with large customershigh

    Large customers might not renew or might terminate early, affecting revenues 12.

  • Early lease termination rightsmedium

    Some leases let customers terminate early under certain conditions, and the company cannot guarantee it will quickly re-lease vacated space 1.

  • Environmental and compliance costsmedium

    Environmental and safety laws could require unplanned remediation or compliance spending 1.

  • Leverage and financing costsmedium

    Rising interest rates could raise debt costs, and liquidity needs could be hard to meet in unfavorable conditions 1.

Investment thesis

What would need to be true (bull case)

  • Occupancy rose from 85.3% to 85.7% in the first half of 2026, and the expected range for the rest of the year was narrowed upward 21. If this trend continues, revenues could benefit from better occupancy.
  • Rents on new and renewed leases rose 20.9% in the second quarter of 2026, suggesting pricing power in core markets 2.
  • The conservative balance sheet, available credit line and integrated model could let the company take advantage of opportunities in difficult periods 1.

What would break the thesis

  • Remote work remains a structural issue, and long-term office demand could stay below pre-pandemic levels 1.
  • Concentration of revenue in a few large customers means a termination or non-renewal could have a visible effect 2.
  • High leverage and interest-rate exposure could reduce financial flexibility if financing conditions worsen 1.

What to watch

  • Office occupancy relative to the 86.0%–87.0% expected range for the rest of 20262026
  • Closing of the planned sale of non-core buildings worth 73.5 million USDbefore August 15, 2026
  • Trend in GAAP rents on new and renewed leasesQ3 2026
  • Renewal outcomes for large customers such as Bank of America and Asurionnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 28 Jul 2026; since then the company filed 10-Q (27 Oct 2026).

The business

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly traded REIT listed on the NYSE under the symbol HIW 1. The company describes itself as a fully integrated office REIT, meaning it staffs leasing, management, maintenance and customer service internally rather than outsourcing them 1. Its primary business is operating, acquiring and developing office properties, with a strategy focused on high-quality buildings in the most dynamic districts of its portfolio 1.

The company's strategy, called 'work-placemaking', emphasizes creating workplaces that attract talent, maintaining a conservative balance sheet and recycling properties that no longer meet its criteria 1. It operates through an Operating Partnership, in which the company holds the great majority of common units 1. Office occupancy stood at 85.7% on June 30, 2026, up from 85.3% at the end of 2025 2.

The company maintains a 750 million USD revolving credit facility, of which 170 million USD was drawn at the annual report date, maturing in January 2028 1. Its leverage ratio, measured as mortgages and notes payable plus preferred stock over undepreciated asset book value, was 43.7% at December 31, 2025 1.

Segments

Office properties in best business districts

The core activity is developing, acquiring and leasing office buildings in eight core markets, including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa 1. The company says its operations are not significantly dependent on any particular geographic market 1.

Market context

Demand for Southeastern office space depends on economic growth and office employment in the company's core markets 1. The company notes that occupancy tends to rise when economic growth improves and fall when it slows, with changes lagging the broader economy 1. For the rest of 2026, management expects average occupancy between 86.0% and 87.0%, narrowed from an earlier 85.0%–87.0% range 21.

Large customers matter: Bank of America accounts for 4.2% of annualized GAAP revenues and Asurion for 3.3%, both above the company's internal 3% review threshold 2. If space leased to these companies were not renewed, the revenue impact could be significant.

Trends

  • Work-from-home and office demandheadwind

    Social acceptance and perceived benefits of work-from-home arrangements could reduce long-term demand for office space, affecting occupancy and rents 1.

  • Rising rents on new and renewed leasestailwind

    Rents on leases signed in the second quarter of 2026 rose 20.9% versus prior leases, while tenant improvement costs per square foot also increased to 4.43 USD 2.

  • Operating cost pressureheadwind

    Rising operating costs such as property taxes, utilities and insurance could outpace the company's ability to recover them from customers, weighing on same-property results 1.

  • Portfolio recyclingmixed

    Selling non-core buildings worth 73.5 million USD could fund acquisitions and developments, but closing on the announced terms is not assured 2.

Competitive position

The company's properties compete with similar buildings in its markets on location, rent, services and facility quality 1. It also competes with other REITs, financial institutions, pension funds and individual investors when acquiring, developing or operating properties 1. Intense competition in weak markets could force rent concessions and greater tenant improvement spending 1.

If competitors offer space below market rents, the company could lose existing customers or face pressure to lower rents at renewal 1. The company cites its fully integrated model as an advantage that could improve customer experience and retention 1.

  • Other office REITs and developers in the Southeast

    Compete for the same tenants in the same markets, especially at renewal; the sources do not name these competitors.

  • Other real estate investment trusts

    Compete for acquisitions and development opportunities, as described in the annual report.

  • Financial institutions and pension funds

    Compete for real estate assets, which can affect pricing and availability of target buildings.

  • Individual investors and partnerships

    May compete in acquisitions and development, per the sources.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Highwoods Properties, Inc. · 10 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Highwoods Properties, Inc. · 28 Jul 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Highwoods Properties, Inc. · 28 Jul 2011

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.