Highwoods Q2 Earnings Surge on $79M Property Sale Gain; $250M Buyback Authorized
HIW sits 64% above its 52-week low of $20.45.
Summary
Highwoods Properties' Q2 net income jumped to $96.8M on a $79M property sale gain. The board authorized a $250M buyback, and the company extended a $150M term loan to 2029.
Key Events · Earnings and Guidance · HIW
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Q2 Net Income Surges on Disposition Gain
Net income reached $96.8M vs $19.2M in Q2 2025, boosted by a $79.0M gain from selling a Nashville building and Richmond land. Excluding gains, core FFO per share was $0.90, up slightly from $0.89.
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$250M Stock Buyback Authorized
The board approved a new $250M share repurchase program, funded by asset sales and available cash. No shares were repurchased during Q2.
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Debt Management: Term Loan Extended, Notes Repurchased
Extended the maturity of a $150M term loan from 2027 to 2029 and repurchased $11M of unsecured notes due March 2027. $289.1M of notes still mature in March 2027.
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Liquidity Remains Strong
Cash and equivalents rose to $145.4M, with $749.9M available on the $750M revolving credit facility. No amounts were drawn on the revolver at quarter-end.
Analysis · HIW · Real Estate & Construction
A $79 million gain on the sale of a Nashville building and Richmond land propelled Highwoods Properties' Q2 net income to $96.8 million, a sharp rise from $19.2 million a year ago. Core operations improved modestly—same-property NOI rose 1.4% on higher rents and occupancy—but the headline beat masks a business still navigating office-sector headwinds. Signaling confidence in the portfolio's value, the board authorized a $250 million stock repurchase program, though no shares have been bought back yet. The balance sheet remains solid with $145 million in cash and full availability on a $750 million revolver, providing ample liquidity for the $289 million of notes maturing in March 2027.
At the time of this filing, HIW was trading at $33.64 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $3.7B. The 52-week trading range was $20.45 to $34.03. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.