HIWNYSEReal Estate Investment TrustsUS GAAP · USD

Highwoods Properties, Inc

Highwoods Properties, Inc. is a publicly traded REIT that owns, develops, acquires, leases and manages office properties, with a portfolio concentrated in best business districts across the Southeast and Dallas. The company is built around fully integrated, in-house management of high-quality workplaces that are designed to attract and retain tenants in talent-driven markets.

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Revenue806m USD
−2.4 %y/y
Operating profit (EBIT)545m USD
−1.6 %y/y
EBIT margin67.6%
+0.5 ppy/y
Net income163m USD
+56.0 %y/y
Free cash flow359m USD
−11.0 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

02004006008001,000m USD2020: 737 m USD2020: EBIT 505 m USD20202021: 768 m USD2021: EBIT 532 m USD20212022: 829 m USD2022: EBIT 569 m USD20222023: 834 m USD2023: EBIT 565 m USD20232024: 826 m USD2024: EBIT 554 m USD20242025: 806 m USD2025: EBIT 545 m USD2025806545
RevenueOperating profit (EBIT)
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Business

Share of revenue
Office leasing70 %

Rental of office space in Highwoods-owned buildings, including renewals and new leases.

Property management and recoveries15 %

Operating services and cost recoveries tied to managing and maintaining the portfolio.

Development and redevelopment10 %

New office development and repositioning projects that create future rental income.

Asset sales and other revenues5 %

Disposition activity and miscellaneous property-related income.

Customers

Highwoods serves office tenants that want commute-worthy, amenitized workplaces in strong business districts, rather than commodity suburban office space. Its customer base is driven by companies that need quality space to attract and retain employees, including professional services, financial, healthcare, technology and other office users. The company also has exposure to federal government leasing requirements through some of its contracts.

Corporate office tenants

Businesses leasing office space for headquarters, regional offices and administrative functions in Highwoods' core markets.

Professional services and knowledge workers

Law, consulting, finance and similar users that value premium locations and workplace quality.

Healthcare, technology and other office users

Specialized office occupiers that need modern, flexible space and strong market access.

Federal government-related tenants

Government or government-adjacent occupiers subject to compliance and contracting requirements.

Strategy

Highwoods' strategy is to own and operate high-quality office buildings in best business districts, while recycling non-core assets into better properties in its core markets. Management is also focused on maintaining a strong balance sheet, using in-house operating capabilities to improve tenant service and preserving flexibility to buy and sell assets through the cycle.

Portfolio upgrade through acquisitions, development and dispositionsShort term

Improves average asset quality and long-term resilience while reallocating capital away from non-core properties.

Strengthen in-service portfolio performanceMedium term

Higher occupancy, better leasing and stronger tenant retention support recurring rental income.

Maintain local market expertise and operating controlMedium term

In-house management improves responsiveness, cost control and customer service in targeted markets.

Geography

Highwoods is concentrated in the Southeast and Texas, with core markets in Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. The company is headquartered in Raleigh and runs division offices in Atlanta, Nashville, Orlando, Raleigh and Tampa, with planned expansion of local offices into Charlotte and Dallas over time. This footprint matters because leasing demand, occupancy and asset recycling are driven by local office employment and market-specific conditions.

Risks

Highwoods is exposed to structural office demand pressure, especially from work-from-home adoption and weaker office employment in its markets. Its results also depend on successful leasing, acquisition execution, asset valuation and compliance with federal contractor rules, while cyber and IT disruptions could impair operations and tenant service.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Structural decline in office demand from remote work1Local economic weakness in core markets2Acquisition and development execution risk3Cybersecurity and IT disruption4Federal contractor compliance risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Structural decline in office demand from remote workImpact: HighLikelihood: High

    If tenants need less space or downsize, leasing demand and renewal rates can fall across the portfolio.

    Exposure: Office REIT portfolio in commuter-oriented business districts

  2. Local economic weakness in core marketsImpact: HighLikelihood: High

    Higher unemployment or slower office job growth can reduce occupancy and rental rates.

    ExposureAtlantaCharlotteDallasNashvilleOrlandoRaleighRichmondTampa
  3. Acquisition and development execution riskImpact: MediumLikelihood: Medium

    New assets may not lease as expected and renovation or development costs can exceed estimates.

    ExposureProperty acquisitionsRedevelopmentBuild-to-suit projects
  4. Cybersecurity and IT disruptionImpact: MediumLikelihood: Medium

    Breaches or outages could affect building systems, customer service and internal operations.

    Exposure: Property management and corporate systems

  5. Federal contractor compliance riskImpact: MediumLikelihood: Low

    Non-compliance could lead to fines, contract losses or restrictions on future government leasing.

    Exposure: Properties leased to or used by federal government-related tenants

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Accounting

Judgemental items
Purchase price allocation for acquisitions

Management estimates fair values for tangible and intangible assets using cash flow, cap rate and market assumptions.

Impact: Affects asset basis, future depreciation and reported gains or losses on acquisition

Real estate impairment testing

Non-core or out-of-service assets may need write-downs if estimated fair value falls below carrying value.

Impact: Can create material non-cash charges, as seen with the Century Center impairment

Credit losses on lease receivables

Tenant financial deterioration can increase expected losses and reduce reported revenue quality.

Impact: Affects rental revenue and operating results

Disposition and development timing

Asset sales and newly completed projects change revenue mix and period-to-period comparability.

Impact: Can distort same-property trends and near-term revenue growth

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Last updated: 24/09/2026