Ted Klinck, President and CEO, stated, “Today’s announcement is consistent with our long-term
strategic plan of owning the highest quality office buildings in the BBDs of markets with favorable
economic and demographic trends. With its strong, diverse and growing economy, Dallas has been at
the top of our list for future market expansion. We are excited about the opportunity to build and grow
a strong presence in Dallas with our combination of proven development expertise, strong asset
management platform and highly-regarded brand.
We are also thrilled to partner with Granite Properties on the Granite Park Six and 23Springs
developments. Granite Properties is a prestigious privately-held commercial real estate investment,
development and management company with deep roots in Dallas and, like us, a winner of NAIOP’s
Developer of the Year award. Most importantly, we share the same vision of creating extraordinary
customer experiences through mixed-use environments, rich amenities, customer-centric service and
innovative wellness features – what we call work-placemaking.”
The Company’s long-term plan is to fund its entry into Dallas, including funding its share of Granite Park
Six and 23Springs, by exiting the Pittsburgh market. The Company’s Pittsburgh assets, which consist
of 2,155,000 square feet of office that was 92.9% occupied as of March 31, 2022, represent
approximately 6% of the Company’s overall GAAP net operating income.
Mr. Klinck stated “Our plan is to effectively fund our initial entry into Dallas, a high-growth market with
significant future upside opportunities, by selling our assets in Pittsburgh over the next few years.
Importantly, once completed, the stabilization of our new development projects in Dallas and our
Pittsburgh market exit, coupled with anticipated G&A savings, is expected to be roughly leverageneutral and accretive to our cash flows, while improving the quality of our portfolio and providing higher
growth over time.”
The Company can provide no assurances, however, that it will dispose of any of its assets in Pittsburgh
on favorable terms, or at all, because the dispositions are subject to the negotiation and execution of
sale agreements and would then be subject to the buyers’ completion of satisfactory due diligence and
other customary closing conditions. Because the Company will now classify its assets in Pittsburgh as
non-core, the Company’s net income in the second quarter of 2022 will include a non-FFO impairment
charge of $35.0 million to lower the carrying amount of certain assets (including accrued straight-line
rents receivable and deferred leasing costs) in Pittsburgh to their estimated fair value less cost to sell.
A presentation highlighting these investment activities can be accessed through the link below and in
the Investors section of the Company’s website at www.highwoods.com. 

Overall Score: 7.0 | See trend