The following is a summary of the Highwoods Properties, Inc. (HIW) Q1 2024 Earnings Call Transcript:
Financial Performance:
Highwoods Properties reported a Q1 2024 FFO of $0.89 per share with net income of $26.1 million, equating to $0.25 per share.
FFO was $96 million and same property cash NOI growth was reported at 0.3%.
Occupancy decreased slightly to 88.5%.
The company successfully sold noncore assets at a mid-7 cap rate resulting in $79 million with $6 million of NOI.
The 2024 FFO midpoint outlook is slightly lower due to higher-than-expected interest rates and the dilutive impact of non-core asset sales not factored into the initial outlook.
Business Progress:
The company signed 922,000 square feet of second gen leases in the quarter, including over 400,000 square feet of new leases and 36,000 square feet of net expansions.
It also signed 157,000 square feet of first gen leases.
The development pipeline is valued at $506 million, with significant growth expected from projects such as the 23Springs project in Uptown Dallas.
Highwoods experienced strong prospects and activity in their leasing and development areas, with significant leasing occurring in Dallas, indicating potential for further growth in this area.
The company plans to add further value through acquisitions, improving the quality of assets, and portfolio improvements contributing to high single and low double-digit stabilised cap rates.
No new development projects are planned in 2024 due to current environmental factors, but a further $150 million in dispositions are planned for the year.
More details: Highwoods Properties Inc IR
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