Highwoods Announces $134M of Non-Core Asset Sales
RALEIGH, NC – November 8, 2021
RALEIGH, NC – November 8, 2021 – Highwoods Properties, Inc. (NYSE:HIW) has sold 5405
Windward Parkway, a 248,000 square foot office building in Atlanta, for $48.0 million and 50 Glenlake,
a 145,000 square foot office building also in Atlanta, for $20.6 million. Additionally, the Company expects
to close on the sale of three additional non-core buildings encompassing 366,000 square feet for a
combined purchase price of $65.5 million prior to December 31, 2021.
On a combined basis, these office properties are 78% occupied and were projected to generate $7.8
million of GAAP net operating income and $7.3 million of cash net operating income in 2021.
Ted Klinck, President and Chief Executive Officer of Highwoods Properties, said, “With these sales, we
will have closed on $297 million of dispositions since we first announced our $683 million acquisition of
trophy office assets in the high-growth markets of Charlotte and Raleigh from Preferred Apartment
Communities. We are on track with our plan to return our balance sheet metrics to pre-acquisition levels
by mid-2022, while improving the quality of our portfolio and providing higher growth for our shareholders
over time.”
About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate
investment trust (“REIT”) and a member of the S&P MidCap 400 Index. The Company is a fully
integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the
best business districts (BBDs) of Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond
and Tampa. For more information about Highwoods, please visit our website at www.highwoods.com.
Forward-Looking Statements
Some 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
planned sales of non-core assets and expected pricing and impact with respect to such sales, including
the tax impact of such sales; the expected financial and operational results and the related assumptions
underlying our expected results, including but not limited to potential losses related to customer
difficulties, anticipated building usage and expected economic activity due to COVID-19; the continuing
ability to borrow under the Company’s revolving credit facility; 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.
When considering such forward-looking statements, you should keep in mind important factors that could
cause our actual results to differ materially from those contained in any forward-looking statement,
including the following: closing of planned non-core dispositions may not occur on the terms described
in this press release or at all; buyers may not be available and pricing may not be adequate with respect
to planned dispositions of non-core assets; comparable sales data on which we based our expectations
with respect to the sales price of non-core assets may not reflect current market trends; the extent to
which the ongoing COVID-19 pandemic impacts our financial condition, results of operations and cash
flows depends on future developments, which are highly uncertain and cannot be predicted with
confidence, including the scope, severity and duration of the pandemic and its impact on the U.S.
economy and potential changes in customer behavior that could adversely affect the use of and demand
for office space; the financial condition of our customers could deteriorate or further worsen, which could
be further exacerbated by the COVID-19 pandemic; our assumptions regarding potential losses related
to customer financial difficulties due to the COVID-19 pandemic 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 release
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 2020 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.
REIT Profile
Highwoods Properties, Inc.
Symbol: HIW
CIK: 921082
Exchange: NYSE
Founded: 1978 (46 years)
Type of REIT: Equity REIT
Listing Status: Public
Market Capitalization: Mid-Cap
REIT Sector: Office, Industrial, Retail
REITRating™ (more)
Overall Score: 7.0 | See trend
REITRating is REITNote's Real Estate Investment Trust industry-specific rating and ranking system. The overall score is out of ten points, with ten being the best score.
REITMovers (more)
Latest Price: $25.96
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Previous Close: $25.40
Volume: 879,767
52-Week High: $26.27
52-Week Low: $16.25
Last updated: 2024-04-24 - v1.3