The following is a summary of the Highwoods Properties, Inc. (HIW) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Highwoods Properties reported a Q1 2024 FFO of $0.89 per share with net income of $26.1 million, equating to $0.25 per share.

• FFO was $96 million and same property cash NOI growth was reported at 0.3%.

• Occupancy decreased slightly to 88.5%.

• The company successfully sold noncore assets at a mid-7 cap rate resulting in $79 million with $6 million of NOI.

• The 2024 FFO midpoint outlook is slightly lower due to higher-than-expected interest rates and the dilutive impact of non-core asset sales not factored into the initial outlook.

Business Progress:

• The company signed 922,000 square feet of second gen leases in the quarter, including over 400,000 square feet of new leases and 36,000 square feet of net expansions.

• It also signed 157,000 square feet of first gen leases.

• The development pipeline is valued at $506 million, with significant growth expected from projects such as the 23Springs project in Uptown Dallas.

• Highwoods experienced strong prospects and activity in their leasing and development areas, with significant leasing occurring in Dallas, indicating potential for further growth in this area.

• The company plans to add further value through acquisitions, improving the quality of assets, and portfolio improvements contributing to high single and low double-digit stabilised cap rates.

• No new development projects are planned in 2024 due to current environmental factors, but a further $150 million in dispositions are planned for the year.

More details: Highwoods Properties Inc IR

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