Highwoods Announces $98M of Non-Core Asset Sales
RALEIGH, NC – May 19, 2022 – Highwoods Properties, Inc. (NYSE:HIW) has sold the FBI Tampa
Field Office, a 138,000 square foot office building developed by Highwoods as a build-to-suit for the FBI
in 2005 and renewed under a long-term lease in 2020, for $70.4 million. The Company also expects to
close on the sale of its last remaining office buildings in Greensboro, which total 299,000 square feet
and are 88.2% occupied, later this quarter or early in the third quarter for $20.3 million. In 2022, these
office buildings were projected to generate $6.3 million of annual GAAP net operating income and $5.7
million of annual cash net operating income, which includes the impact of free rent.
The Company has also sold an 8.9-acre non-core land parcel adjacent to its One Independence office
building in Tampa’s Westshore BBD for $6.9 million to a developer who plans to construct apartment
units. The Company expects to record $2.3 million of land sale gains (included in FFO) in the second
quarter.
Ted Klinck, President and CEO, said, “We are pleased with the continued execution of our non-core
asset dispositions. With these sales, we will have sold $464 million of non-core properties since we
announced our acquisition of a portfolio of office properties from PAC in mid-2021 and remain on pace
to return our balance sheet to pre-acquisition metrics by the middle of 2022.”
About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate
investment trust (“REIT”) and a member of the S&P MidCap 400 Index. The Company is a fullyintegrated office REIT that owns, develops, acquires, leases and manages properties primarily in the
best business districts (BBDs) of Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond
and Tampa. For more information about Highwoods, please visit our website at www.highwoods.com.
Forward-Looking Statements
Some of the information in this press release may contain forward-looking statements. Such statements
include, in particular, statements about our plans, strategies and prospects such as the following: the
planned sales of non-core assets and expected pricing and impact with respect to such sales, including
the tax impact of such sales; the expected financial and operational results and the related assumptions
underlying our expected results, including but not limited to potential losses related to customer
difficulties, anticipated building usage and expected economic activity due to COVID-19; the continuing
ability to borrow under the Company’s revolving credit facility; the anticipated total investment, projected
leasing activity, estimated replacement cost and expected net operating income of acquired properties
and properties to be developed; and expected future leverage of the Company. You can identify
forward-looking statements by our use of forward-looking terminology such as “may,” “will,” “expect,”
“anticipate,” “estimate,” “continue” or other similar words. Although we believe that our plans, intentions
and expectations reflected in or suggested by such forward-looking statements are reasonable, we
cannot assure you that our plans, intentions or expectations will be achieved.
among others, the following: closing of the planned disposition of our remaining office buildings in
Greensboro may not occur on the terms described in this press release or at all; buyers may not be
available and pricing may not be adequate with respect to the planned dispositions of non-core assets;
comparable sales data on which we based our expectations with respect to the sales price of the noncore assets may not reflect current market trends; the extent to which the ongoing COVID-19 pandemic
impacts our financial condition, results of operations and cash flows depends on future developments,
which are highly uncertain and cannot be predicted with confidence, including the scope, severity and
duration of the pandemic and its impact on the U.S. economy and potential changes in customer
behavior that could adversely affect the use of and demand for office space; the financial condition of
our customers could deteriorate or further worsen, which could be further exacerbated by the COVID19 pandemic; our assumptions regarding potential losses related to customer financial difficulties due
to the COVID-19 pandemic could prove incorrect; counterparties under our debt instruments,
particularly our revolving credit facility, may attempt to avoid their obligations thereunder, which, if
successful, would reduce our available liquidity; we may not be able to lease or re-lease second
generation space, defined as previously occupied space that becomes available for lease, quickly or on
as favorable terms as old leases; we may not be able to lease newly constructed buildings as quickly
or on as favorable terms as originally anticipated; we may not be able to complete development,
acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as
anticipated; development activity in our existing markets could result in an excessive supply relative to
customer demand; our markets may suffer declines in economic and/or office employment growth;
unanticipated increases in interest rates could increase our debt service costs; unanticipated increases
in operating expenses could negatively impact our operating results; natural disasters and climate
change could have an adverse impact on our cash flow and operating results; we may not be able to
meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs
and growth initiatives or repay or refinance outstanding debt upon maturity; and the Company could
lose key executive officers.
This list of risks and uncertainties, however, is not intended to be exhaustive. You should also review
the other cautionary statements we make in “Risk Factors” set forth in our 2021 Annual Report on Form
10-K. Given these uncertainties, you should not place undue reliance on forward-looking statements.
We undertake no obligation to publicly release the results of any revisions to these forward-looking
statements to reflect any future events or circumstances or to reflect the occurrence of unanticipated
events.
Highwoods Properties, Inc.
Symbol: HIW
CIK: 921082
Exchange: NYSE
Founded: 1978 (46 years)
Type of REIT: Equity REIT
Listing Status: Public
Market Capitalization: Mid-Cap
REIT Sector: Office, Industrial, Retail
REITRating is REITNote's Real Estate Investment Trust industry-specific rating and ranking system. The overall score is out of ten points, with ten being the best score.
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Last updated: 2024-10-22 - v1.3