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Jun 30
Highwoods Q2 2025 Earnings Report
Highwoods reported Q2 2025 results with $0.17 in net income per share and solid leasing momentum across its portfolio.
Key Takeaways
Highwoods delivered strong operational performance in Q2 2025, achieving robust leasing activity and maintaining resilient cash flows. Although same property cash NOI declined, rent growth and lease signings supported an improved outlook.
Reported net income of $18.3 million, or $0.17 per share
Signed 923,000 sq ft of second-gen leases, including 371,000 sq ft of new leases
Achieved 17.6% GAAP rent growth and 3.6% cash rent growth
Raised full-year 2025 FFO guidance midpoint to $3.41 per share
Highwoods
Highwoods
Forward Guidance
Highwoods updated its 2025 FFO guidance to $3.37–$3.45 per share, raising the midpoint to $3.41 on strong leasing and asset recycling progress.
Positive Outlook
- Midpoint of FFO guidance increased to $3.41 per share
- Leasing pipeline remains strong with over 300,000 sq ft signed in July
- Portfolio leased rate improved by 80 basis points sequentially
- Development pipeline is 64% pre-leased with only $106M remaining to fund
- Completed $145M of asset dispositions and $138M in acquisitions
Challenges Ahead
- Same property cash NOI projected to decline between -4.0% and -2.0%
- G&A expense outlook increased due to pre-development write-offs
- Operating expenses remained elevated
- Cash NOI declined YoY in Q2
- Leasing challenges remain in some legacy vacancies