Highwoods Properties Stock Earnings Reports

Highwood Properties reported a strong Q1 2026 driven by robust leasing across both in-service and development properties, delivering FFO of $0.84 per share and maintaining full-year FFO guidance of $3.40–$3.68. Leasing velocity was notable: 958,000 sq ft of second-generation leases (including 300k+ sq ft of new leases), GAAP rent growth of 19.4% and cash rent growth of 4.8%, and strong mark-to-market rent spreads on key assets. Several development projects were placed in service (GlenLake III, Granite Park VI, GlenLake II retail), and the combined placed/ pipeline developments are 86% leased but only 48% occupied, implying significant near-term NOI and FFO upside as occupancy ramps. Management invested $108M in top BBD properties (Dallas, Raleigh) and sold $42M of noncore Richmond assets; they expect roughly $200M more noncore dispositions by midyear and may deploy proceeds to repurchase up to $250M of shares on a leverage-neutral basis. Balance sheet liquidity exceeded $650M at quarter-end; management closed a $100M mortgage at Granite Park VI post-quarter, and expects further JV financings that will repatriate capital. They reiterated priorities to (1) raise occupancy toward stabilized levels, (2) deliver/stabilize developments, (3) recycle noncore assets into higher-quality BBD assets, and (4) maintain a strong, flexible balance sheet. Management sees limited high-quality BBD supply, healthy demand (including corporate relocations and expansions) and favorable demographics in their Sunbelt markets, which supports pricing power, increased occupancy and long-term NOI growth. Key near-term items: roughly 1.2M sq ft of signed leases are expected to commence by year-end; management expects to sign ~100k sq ft/month of new leasing near term to hit midpoint occupancy (approx. 87.5%); Q1 included one-time gains and term fees that modestly affected results; capitalized interest will decline as major developments stop capitalizing interest; and expected FFO seasonality implies stronger results in H2 2026 and into 2027.