Highwoods Properties
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Highwoods Properties (HIW) investor relations material

Highwoods Properties Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary11 Feb, 2026

Executive summary

  • Sun Belt BBD markets show strong fundamentals with limited new supply and robust demand, driving rental rate and net effective rent growth year-over-year.

  • Recent acquisitions and development pipeline stabilization are expected to deliver outsized NOI and earnings growth through 2027 and beyond.

  • Q4 2025 net income per share was $0.26 and FFO per share was $0.90, including $0.06 per share of land sale gains and $0.01 per share dilutive impact from investment and financing activities not in prior outlook.

  • Full year 2025 net income per share was $1.45 and FFO per share was $3.48.

  • Capital recycling strategy focuses on selling non-core or maximized-value assets and reinvesting in high-growth, high-quality BBD properties.

Financial highlights

  • Q4 2025 FFO was $0.90 per share, including $0.06 of land sale gains; full-year 2025 FFO reached $3.48 per share.

  • Q4 2025 net income: $28.7 million ($0.26 per share), up from a net loss of $3.7 million in Q4 2024.

  • Full year 2025 net income: $157.3 million ($1.45 per share), up from $99.8 million ($0.94 per share) in 2024.

  • Full year 2025 FFO: $385.0 million ($3.48 per share), down from $391.2 million ($3.61 per share) in 2024.

  • Net effective rents for 2025 were 20% higher than 2024 and 19% above 2022, marking a new high.

Outlook and guidance

  • Initial 2026 FFO outlook is $3.40–$3.68 per share ($3.54 midpoint), 5.7% higher than the initial 2025 outlook.

  • 2026 FFO includes $0.09 per share of temporary headwinds from acquisitions, bond issuance, and asset sales, with no impact on 2027 and beyond.

  • 2026 FFO outlook includes up to $0.16 per share of land sale gains.

  • Year-end 2026 occupancy projected at 87.5%, with asset recycling expected to reduce occupancy by 25 bps.

  • Same property cash NOI expected to be flat in 2026, but GAAP NOI projected to be 150 bps higher.

Largest temporary FFO headwind in 2026?
Impact of planned dispositions on 2026 FFO?
6Hundred Legacy Union 2026 year-end occupancy?
Pipeline for new development starts
Cash flow outlook and dividend coverage
AI impact on Sunbelt tenant demand?
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Frequently asked questions

Highwoods Properties Inc is a real estate investment trust (REIT) that owns, develops, and operates office properties. The company focuses on urban and suburban office buildings located in business districts across the Southeastern and Mid-Atlantic United States. Its portfolio includes high-performance workspaces leased to a diverse mix of tenants. The company is headquartered in Raleigh, North Carolina, and its shares are listed on the NYSE.

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