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Mar 31, 2025
Highwoods Q1 2025 Earnings Report
Highwoods Properties, Inc. reported a significant increase in net income and gains on property dispositions for Q1 2025, despite a decrease in total rental and other revenues.
Key Takeaways
Highwoods Properties, Inc. reported a net income of $100 million for the first quarter of 2025, a substantial increase from $27.213 million in the same period last year. This was primarily driven by significant gains on disposition of property, totaling $82.215 million. However, total rental and other revenues decreased to $200.383 million from $211.275 million in Q1 2024.
Net income surged to $100 million in Q1 2025, up from $27.213 million in Q1 2024, largely due to property dispositions.
Gains on disposition of property were $82.215 million, a significant increase compared to $7.209 million in the prior year.
Total rental and other revenues decreased by 5.2% to $200.383 million, primarily due to lower consolidated same property revenues and lost revenue from property dispositions.
Diluted earnings per common share increased to $0.91 in Q1 2025 from $0.25 in Q1 2024.
Revenue by Geographic Location
Forward Guidance
Highwoods Properties anticipates lower rental and other revenues and net operating income for the remainder of 2025 compared to 2024, primarily due to lower anticipated occupancy and property dispositions. The company expects to meet its short-term liquidity needs through available cash, operating cash flows, and various financing sources, including debt and equity issuances, and disposition of non-core assets.
Positive Outlook
- No scheduled debt maturities prior to May 2026, providing financial flexibility.
- Ample liquidity from existing cash, cash equivalents, and revolving credit facility to fund operations and growth.
- Ability to issue debt securities, secured debt, bank term loans, and equity securities to meet future obligations.
- Strategic disposition of non-core assets to generate proceeds.
- Revolving credit facility allows quick capitalization on strategic opportunities at short-term interest rates.
Challenges Ahead
- Expected lower rental and other revenues for the remainder of 2025 compared to 2024.
- Anticipated lower same property NOI for the remainder of 2025 due to lower occupancy and increased expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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