Highwoods Properties (HIW) investor relations material

Executive summary

• Achieved strong leasing volume and financial performance, with robust activity in both in-service and development properties, driving higher lease rates and future NOI, cash flow, and FFO growth.

• Focused on high-quality office properties in major business districts, aiming for long-term sustainable returns through acquisitions, developments, and recycling of non-core assets.

• Completed joint venture acquisitions in Dallas and Raleigh, and sold non-core assets in Richmond, improving portfolio quality and cash flows.

• Portfolio occupancy ended at 85.0% as of March 31, 2026, with expected average occupancy between 85.5% and 86.5% for the remainder of 2026.

• Signed new and renewal leases at GAAP rents 19.4% higher than previous leases in the same spaces.

Financial highlights

• Rental and other revenues rose 6.8% year-over-year to $214.0 million for Q1 2026, driven by acquisitions and higher same property revenues.

• Net income attributable to common stockholders was $31.4 million ($0.29 per share), down from $97.4 million ($0.91 per share) in Q1 2025.

• Funds from operations (FFO) available for common stockholders was $94.0 million ($0.84 per share), up from $91.7 million ($0.83 per share) in Q1 2025.

• Same property NOI declined 0.1% to $135.2 million, with cash same property NOI down 0.6% to $128.5 million.

• Achieved GAAP rent growth of 19.4% and cash rent growth of 4.8% on second generation leases.

Outlook and guidance

• Maintains full-year 2026 FFO outlook of $3.40 to $3.68 per share.

• Year-end occupancy outlook reiterated at 86.5%-88.5%, implying a 250-basis point increase at midpoint over the next three quarters.

• NOI growth expected as leases commence, with over $20 million of annual NOI growth from new developments compared to Q1 run rate.

• Expects $190 million to $250 million in planned building dispositions in the next three months.

• Assumes same property cash NOI growth between -1.0% and +1.0% for 2026.