Highwoods Properties (HIW) Q3 2026 earnings summary

Executive summary

• Signed 1.212M sq. ft. of second-generation leases; occupancy rose 130 bps sequentially to 87.0% and the leased rate reached 90.1%.

• Q3 FFO was $0.89/share; FY 2026 FFO guidance rose to $3.51–$3.70/share, with the midpoint up 2.5 cents from July and 6.5 cents from initial outlook.

• Strong leasing, higher occupancy and limited new supply supported rent growth and a positive outlook for organic NOI growth.

Financial highlights

• Q3 rental and other revenues were $218.2M vs. $201.8M; net income available to common stockholders was $31.8M, or $0.29/diluted share, vs. $12.9M, or $0.12/share.

• Q3 FFO was $100.1M, or $0.89/diluted share, vs. $94.8M, or $0.86/share; no land-sale gains were recorded in the quarter.

• Same-property cash NOI grew 0.2% and GAAP NOI grew 4.1%; consolidated same-property NOI increased 4.9%.

• Average in-place cash rents increased 3.6% YoY per sq. ft.; second-generation leases achieved 28.8% GAAP and 4.2% cash rent growth.

• Nine-month revenue increased to $648.6M from $602.8M; net income rose to $164.2M from $132.9M, including higher property disposition gains.

Outlook and guidance

• FY 2026 FFO guidance is $3.51–$3.70/share; the midpoint rose 2.5 cents vs. July and 6.5 cents vs. initial outlook. Guidance includes potential land-sale gains of up to $0.14/share at the high end and none at the low end.

• Excluding all land-sale gains, implied Q4 FFO exceeds $0.90/share; year-end occupancy guidance is 87.0%–88.0%, midpoint 87.5%.

• Outlook includes $100M–$400M of potential new development announcements, up to $85M of acquisitions and $100M–$250M of additional non-core dispositions in the remainder of 2026.

• Cash flow is expected to remain below normalized levels in 2027, with normalization more likely in 2028 and thereafter; normalized leasing CapEx is expected at $110M–$120M.

• Management expects cash, operating cash flow and financing sources to cover short-term needs, including the March 2027 note maturity.