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RALEIGH - Highwoods Properties, Inc. (NYSE:HIW), a real estate investment trust based in Raleigh, has signed leases totaling over 750,000 square feet in the second quarter, the company announced Monday. This figure includes more than 300,000 square feet of new leases. The company’s president and CEO, Ted Klinck, highlighted the ongoing strength of their leasing activities, with a substantial portion of the deals being second-generation leases, and a promising pipeline of new and renewal prospects. The company’s strong operational performance is reflected in its financial metrics, with InvestingPro data showing a healthy gross profit margin of 67.5% and a solid current ratio of 1.56, indicating strong liquidity.
The company’s portfolio, focused on prime business district locations, has attracted both new users and existing customers, which Klinck believes underscores the value of Highwoods’ offerings. With the volume of leases signed in the first five months of 2025, Highwoods anticipates growth in occupancy rates toward the end of the year and beyond. According to InvestingPro data, the company has maintained dividend payments for 32 consecutive years, currently offering an attractive dividend yield of 6.73%. The stock has shown strong momentum with a 22.1% return over the past year.
Highwoods Properties specializes in owning, developing, and managing office properties primarily in the best business districts (BBDs) of several major U.S. cities, including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa. The company’s strategy is centered around creating work environments that foster collaboration and productivity, aiming to deliver value to both customers and shareholders. With a market capitalization of $3.27 billion and an EBITDA of $470.5 million in the last twelve months, the company maintains a strong financial position. For deeper insights into Highwoods’ financial health and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US equities.
While the press release contains forward-looking statements regarding the company’s expectations for financial and operational results, these are based on current plans and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially.
The information provided is based on a press release statement from Highwoods Properties, Inc. The company’s leasing activity is a key indicator of its operational performance and can be an important consideration for investors tracking the real estate market. Highwoods has not disclosed financial terms of the leases or the identities of the new tenants. As with all market-related news, investors are encouraged to consider the broader economic conditions and market competition when evaluating the significance of leasing announcements.
In other recent news, Highwoods Properties reported its first-quarter 2025 earnings, significantly surpassing analyst expectations with an earnings per share (EPS) of $0.91 compared to the forecasted $0.22. Despite a slight revenue shortfall, with actual revenue of $200.38 million against an expected $202.95 million, the company demonstrated robust performance. Highwoods Properties raised its 2025 funds from operations (FFO) outlook to a range of $3.31 to $3.47 per share, reflecting confidence in continued growth. The company also completed a significant acquisition of Advance Auto Parts Tower in Raleigh, which is expected to contribute positively to cash flow. Analysts from Janney and Mizuho engaged with company executives during the earnings call, with discussions highlighting strong leasing activities and a strategic focus on high-quality office spaces. The company reported net income of $97.4 million, benefiting from favorable market conditions and strategic asset recycling. Highwoods Properties continues to focus on its Sunbelt markets, which have shown resilience and potential for future growth.
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