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HIW
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Highwoods Announces Recent Investment and Financing Activity

1. Highwoods sold non-core properties for $166.4M, enhancing balance sheet. 2. They acquired land under Century Center for $50.6M, improving ownership control. 3. Raised $51.3M by selling 1.59M shares at $32.71 each, funding growth. 4. Recent transactions support strategic shift towards higher-quality real estate holdings. 5. Management emphasizes flexibility for long-term growth in future investments.

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$29.402/03 04:18 PM EDTEvent Start
$29.1302/04 09:57 PM EDTLatest Updated
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FAQ

Why Bullish?

Selling non-core assets and reinvestment can enhance HIW's long-term value, similar to prior successful strategies.

How important is it?

The article details significant investment decisions, directly impacting HIW's financial strategy and growth.

Why Long Term?

These strategic moves are likely to benefit HIW over a sustained period, as seen in past mergers and acquisitions.

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HIW
RALEIGH, N.C., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) is today announcing investment and financing transactions that closed during the fourth quarter of 2024 and to date in early 2025. First, the Company has sold in a series of transactions non-core buildings in Raleigh and Tampa for combined gross proceeds of $166.4 million. Gross proceeds from dispositions closed in the fourth quarter of 2024 totaled $21.4 million with the remainder closing early in the first quarter of 2025. The sold properties include one office building encompassing 170,000 square feet in North Raleigh and three buildings encompassing 616,000 square feet in the Westshore submarket of Tampa. On a combined basis, these properties are 88% occupied and were projected to generate $13.6 million of GAAP net operating income and $13.0 million of cash net operating income in 2025. Second, in the fourth quarter of 2024, the Company acquired fee simple title to the land underneath its Century Center assets for $50.6 million. The Company previously held most of its buildings in Century Center, a 12-building office park encompassing 1.7 million square feet and 13 acres of developable land in the Chamblee/N. Druid Hills submarket of Atlanta, pursuant to a long-term ground lease with a third party who owned fee simple title to the land. Third, in the fourth quarter of 2024, the Company sold 1.59 million shares of its common stock at an average gross sales price of $32.71 per share, raising net proceeds of $51.3 million. Ted Klinck, President and Chief Executive Officer, stated, “Our recent disposition activity demonstrates our continuing ability to execute on our long-standing strategy of selling non-core assets with limited future upside and ultimately using the proceeds to recycle into higher-quality buildings. The nearly $220 million of proceeds from these non-core dispositions and equity raised during the fourth quarter, further bolsters our already strong balance sheet and creates dry powder for future external growth opportunities in 2025.” “Acquiring the land underneath our Century Center assets consolidates our ownership of the buildings and the land, which provides us with more long-term flexibility and certainty,” added Mr. Klinck. About HighwoodsHighwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (“REIT”) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Highwoods is in the work-placemaking business. We believe that by creating environments and experiences where the best and brightest can achieve together what they cannot apart, we can deliver greater value to our customers, their teammates and, in turn, our stakeholders. For more information about Highwoods, please visit our website at www.highwoods.com. Forward-Looking StatementsSome of the information in this press release may contain forward-looking statements. Such statements include, in particular, statements about our plans, strategies and prospects such as the following: the expected financial and operational results and the related assumptions underlying our expected results; the planned sales of non-core assets and expected pricing and impact with respect to such sales, including the tax impact of such sales; the anticipated total investment, projected leasing activity, estimated replacement cost and expected net operating income of acquired properties and properties to be developed; and expected future leverage of the Company. You can identify forward-looking statements by our use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue” or other similar words. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that our plans, intentions or expectations will be achieved. Factors that could cause our actual results to differ materially from Highwoods’ current expectations include, among others, the following: the financial condition of our customers could deteriorate; our assumptions regarding potential losses related to customer financial difficulties could prove incorrect; counterparties under our debt instruments, particularly our revolving credit facility, may attempt to avoid their obligations thereunder, which, if successful, would reduce our available liquidity; we may not be able to lease or re-lease second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorable terms as old leases; we may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; we may not be able to complete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated; development activity in our existing markets could result in an excessive supply relative to customer demand; our markets may suffer declines in economic and/or office employment growth; unanticipated increases in interest rates could increase our debt service costs; unanticipated increases in operating expenses could negatively impact our operating results; natural disasters and climate change could have an adverse impact on our cash flow and operating results; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or repay or refinance outstanding debt upon maturity; and the Company could lose key executive officers. This list of risks and uncertainties, however, is not intended to be exhaustive. You should also review the other cautionary statements we make in “Risk Factors” set forth in our 2023 Annual Report on Form 10-K. Given these uncertainties, you should not place undue reliance on forward-looking statements. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements to reflect any future events or circumstances or to reflect the occurrence of unanticipated events. Contact:        Brendan Maiorana                                   Executive Vice President and Chief Financial Officer        Brendan.Maiorana@highwoods.com919-872-4924

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