Highwoods Properties (HIW) investor relations material

Executive summary

• Achieved strong financial and operational results, with robust leasing activity, rent growth, and accelerated project stabilization across key Sun Belt and BBD markets.

• Signed over 1.1 million sq ft of second-generation leases and 63,000 sq ft of first-generation leases in development, with average lease terms of 6.4 years and strong rent spreads.

• Portfolio includes 27.7 million rentable sq ft in-service, 0.6 million under development, and 3.5 million potential build-out.

• Disposed of $375 million in non-core assets year-to-date, exceeding initial outlook, with more sales expected.

• Maintained a strong balance sheet with ample liquidity, no near-term debt maturities, and a focus on long-term value creation through acquisitions, developments, and dispositions.

Financial highlights

• Q2 2026 net income: $96.8M ($0.85/share), FFO: $101.3M ($0.90/share), both up significantly year-over-year.

• Rental and other revenues for Q2 2026 were $216.4M, up 7.9% year-over-year; same property NOI increased 1.4%.

• Debt to EBITDA improved to 6.2x; $145M cash on hand and undrawn $750M revolver at quarter end.

• FFO included $0.035–$0.04 per share land sale gain; G&A was $1M higher due to pre-development cost write-offs.

• Operating margins in mid-85% range in Q2, with incremental occupancy gains expected to have 90% margin.

Outlook and guidance

• Raised 2026 FFO outlook to $3.46–$3.70 per share (midpoint $3.58), reflecting strong H1 performance and positive H2 expectations.

• Projected occupancy to end 2026 in the 86.5%–88.5% range, with nearly 200 bps upside expected in H2.

• Expect to announce $100–$400 million of new development and up to $250 million in acquisitions in H2 2026.

• Anticipate closing $73.5M in non-core asset sales by August 15, 2026, with $100M–$250M additional sales possible in 2026.