Highwoods Properties (HIW) investor relations material

Executive summary

• Sun Belt and BBD markets show strong fundamentals, with 89.2% leased portfolio as of 12/31/2025 and a 5.7-year weighted average lease term, driving rental rate and net effective rent growth year-over-year.

• Strategic capital rotation through acquisitions in vibrant BBDs and dispositions of non-core assets supports portfolio quality and growth.

• Recent acquisitions and development pipeline stabilization are expected to deliver outsized NOI and earnings growth through 2027 and beyond.

• Strong ESG credentials, with significant progress toward 2030 sustainability goals and industry-leading certifications.

Financial highlights

• Q4 2025 FFO was $0.90 per share, including $0.06 of land sale gains; full-year 2025 FFO reached $3.48 per share.

• Q4 2025 net income was $28.7 million ($0.26 per share); full-year 2025 net income was $157.3 million ($1.45 per share).

• 2026 FFO per share outlook is $3.40–$3.68, compared to $3.48 in 2025.

• Same property cash NOI growth projected between -1.0% and +1.0% for 2026; Q4 2025 same property cash NOI growth was 0.0%.

• Consistent cash flow growth, with a 3.8% CAGR in cash available for distribution since 2010.

Outlook and guidance

• Initial 2026 FFO outlook is $3.40–$3.68 per share ($3.54 midpoint), 5.7% higher than the initial 2025 outlook.

• 2026 FFO includes $0.09 per share of temporary headwinds from acquisitions, bond issuance, and asset sales, with up to $0.16 per share of land sale gains.

• Year-end 2026 occupancy projected between 86.5% and 88.5%, with asset recycling expected to reduce occupancy by 25 bps.

• Same property cash NOI expected to be flat in 2026, but GAAP NOI projected to be 150 bps higher.

• Additional potential for $0–$250M in further acquisitions or dispositions not included in FFO outlook.