| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | 20.0x | 17.3x | Around median | |
Growth | 35 | -2.2% | 7.1% | Bottom tier | |
Quality | 73 | 8.1% | 4.5% | Top tier | |
Safety | 44 | 4.3x | 2.6x | Around median | |
Capital Return | 57 | 6.44% | 0.06% | Around median | |
Momentum | 78 | 1.0% | -1.6% | Top tier | |
Sentiment | 40 | 2 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
71% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Highwoods Properties owns, develops, and manages office buildings in the prime business areas it calls Best Business Districts across Sun Belt markets, with a significant presence in Charlotte, Nashville, Dallas, Atlanta, Tampa, and Raleigh. Operating income is derived primarily from leasing office space, while the company uses asset recycling to sell non-core buildings and land and redirect capital toward higher-growth assets and pre-leased development projects. In Q2 fiscal 2026, Charlotte, Nashville, and Dallas were the strongest sources of leasing and pricing momentum; the Charlotte portfolio recorded cash rent increases of 10% and GAAP rent increases of 29%, while the Uptown and Preston Center assets in Dallas achieved double-digit cash and GAAP rent spreads.
According to the latest EDGAR filings, revenue in Q1 fiscal 2026 was approximately $214.0 million, net income was $32.8 million, and earnings per share were $0.29. For the twelve months ended in fiscal 2026, revenue was $819.8 million, net income was $96.0 million, and earnings per share were approximately $0.86, compared with revenue of $806.1 million, net income of $165.8 million, and earnings per share of $1.45 in fiscal 2025. The data do not break down revenue by geographic market, but leasing activity in Q2 fiscal 2026 showed particular momentum in Nashville, totaling 241 thousand square feet, and in Charlotte and Dallas through rent growth and the scarcity of premium space.
In Q2 fiscal 2026, the company reported net income of $93.5 million, or $0.85 per share, and funds from operations FFO of $100.7 million, or $0.90 per share; the figure included a land-sale gain of approximately $0.035 per share. Second-generation leasing exceeded one million square feet, including 326 thousand square feet of new leases, cash rents increased 3.2%, and GAAP rents increased 20.9%, while net effective rent exceeded the average of the previous five quarters by 8%. Occupancy improved 70 basis points sequentially, the operating margin was around the midpoint of the 85% range, and the company expects year-end fiscal 2026 occupancy to reach a range of 86.5%–88.5%.
The analyst consensus on HIW is Neutral, with an average price target of $32.5 within a relatively narrow range of $30 to $35. The average target is above the 52-week range low of $20.45 but approximately 8% below its high of $35.44; this is consistent with balancing improved leasing and liquidity against weak dividend coverage and the dilutive impact of accelerated dispositions. The context does not provide a usable earnings multiple, so the stock's valuation here is based on the target range, the 52-week range, and the Neutral consensus.
Figures in the text are as of 2026-09-16; the live price is shown at the top of the page.
Highwoods Properties, listed on NYSE under the ticker HIW, owns, develops, and manages office buildings in prime business districts across Sun Belt markets. Its strategy focuses on premium, commute-friendly space in markets including Charlotte, Nashville, Dallas, Atlanta, Tampa, and Raleigh. Operating income is generated primarily from rent on these spaces, while the company uses sales of non-core assets to fund higher-growth investments and developments.
The company reported Q2 fiscal 2026 net income of $93.5 million, or $0.85 per share. FFO was approximately $100.7 million, or $0.90 per share, including a land-sale gain of approximately $0.035 per share. Occupancy also increased 70 basis points sequentially, while cash rent increases were 3.2% and GAAP rent increases were 20.9%.
23Springs in Uptown Dallas was the only remaining development project in Highwoods' portfolio after Midtown East was placed in service in Q2 fiscal 2026. Its leased rate increased to 93%, up ten percentage points during the quarter, with only $28 million of expected spending remaining at the company's share. Management moved its stabilization date forward from Q1 fiscal 2028 to Q2 fiscal 2027, with higher NOI expected because rents exceeded the original underwriting assumptions.
Automated analysis for informational purposes only — not investment advice.
Highwoods ended Q2 fiscal 2026 with $145 million in cash and no borrowings under its $750 million revolving credit facility. The debt-to-EBITDA ratio declined from 6.7 times to 6.2 times, and the company extended a $150 million term loan to 2031 while reducing its interest rate by 15 basis points. The $289 million March 2027 bond maturity remains the only maturity through Q1 fiscal 2028, after the company repurchased $11 million of bonds during the quarter.
The July 29, 2026 call raised the issue of the AFFO payout ratio exceeding 100%, reflecting weak cash coverage during fiscal 2026. Management attributed this to free-rent periods, occupancy buildout, and leasing capital expenditures totaling $84 million in the first half. The company expects the conversion of free rent to cash rent, the addition of approximately $40 million in NOI opportunity, and a decline in annual capital expenditures toward $120 million to support an improvement of more than $100 million in cash flow at normalized levels.
Risks include renewing only 200–300 thousand square feet of the slightly less than 800 thousand square feet of leases expiring during the remainder of fiscal 2026, leaving approximately 550 thousand square feet of move-outs at the midpoint of the estimate. Additional dispositions also reduced FFO guidance by approximately $0.04 per share, while the excess proceeds had not yet been reinvested in income-producing assets. Other risks include the seasonally expected decline in margins in Q3 fiscal 2026 and the lack of completed new development opportunities, which management estimated at between $100 million and $400 million as of the July 29, 2026 call.