Highwoods Properties announces $166.4 million in asset sales and $50.6 million land acquisition, strengthening its portfolio and financial position.
Quiver AI Summary
Highwoods Properties, Inc. announced several significant investment and financing transactions, including the sale of non-core buildings in Raleigh and Tampa for $166.4 million, which are 88% occupied and expected to generate $13.6 million in net operating income for 2025. The company also acquired the land under its Century Center assets in Atlanta for $50.6 million, enhancing its ownership structure. Additionally, Highwoods raised $51.3 million by selling 1.59 million shares of common stock at an average price of $32.71 each. CEO Ted Klinck highlighted the company's ongoing strategy to sell non-core assets and reinvest proceeds into higher-quality properties, strengthening the balance sheet and preparing for future growth opportunities in 2025.
Potential Positives
- Highwoods Properties successfully sold non-core buildings in Raleigh and Tampa, resulting in combined gross proceeds of $166.4 million, which strengthens its financial position.
- The acquisition of the land under its Century Center assets for $50.6 million consolidates ownership, providing long-term flexibility and certainty in its real estate strategy.
- The company raised $51.3 million through the sale of 1.59 million shares of common stock, enhancing liquidity for future growth opportunities.
Potential Negatives
- The company has sold a significant number of non-core properties, which may indicate a struggle to maintain its portfolio and could affect investor confidence.
- The sold properties, while generating proceeds, were projected to contribute substantial net operating income, indicating a potential future revenue loss for the company.
- Forward-looking statements highlight uncertainties regarding customer financial conditions and potential difficulties in leasing or re-leasing properties, suggesting operational vulnerabilities.
FAQ
What company is making the recent investment and financing announcements?
Highwoods Properties, Inc. is the company announcing recent investment and financing transactions.
How much did Highwoods Properties raise from stock sales?
Highwoods Properties raised net proceeds of $51.3 million from the sale of 1.59 million shares of common stock.
What type of assets did Highwoods Properties sell?
Highwoods Properties sold non-core buildings in Raleigh and Tampa for combined gross proceeds of $166.4 million.
What significant acquisition did Highwoods complete in the fourth quarter of 2024?
Highwoods acquired fee simple title to the land underneath its Century Center assets for $50.6 million.
What does Highwoods Properties aim to achieve with their investment strategy?
Highwoods aims to recycle proceeds from non-core sales into higher-quality buildings, enhancing their long-term growth potential.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$HIW Insider Trading Activity
$HIW insiders have traded $HIW stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $HIW stock by insiders over the last 6 months:
- DAVID JOHN HARTZELL sold 6,173 shares for an estimated $205,313
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$HIW Hedge Fund Activity
We have seen 146 institutional investors add shares of $HIW stock to their portfolio, and 154 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- MASSACHUSETTS FINANCIAL SERVICES CO /MA/ added 1,536,067 shares (+131.0%) to their portfolio in Q3 2024, for an estimated $51,473,605
- INVESCO LTD. removed 1,206,104 shares (-26.2%) from their portfolio in Q3 2024, for an estimated $40,416,545
- T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 908,941 shares (+33.2%) to their portfolio in Q3 2024, for an estimated $30,458,612
- FRANKLIN RESOURCES INC added 908,401 shares (+40.9%) to their portfolio in Q3 2024, for an estimated $30,440,517
- PGGM INVESTMENTS removed 737,539 shares (-20.3%) from their portfolio in Q3 2024, for an estimated $24,714,931
- CBRE INVESTMENT MANAGEMENT LISTED REAL ASSETS LLC removed 556,644 shares (-57.7%) from their portfolio in Q3 2024, for an estimated $18,653,140
- COHEN & STEERS, INC. removed 510,315 shares (-3.2%) from their portfolio in Q3 2024, for an estimated $17,100,655
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
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 Highwoods
Highwoods 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 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 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
[email protected]
919-872-4924