| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | 20.3x | 17.8x | Around median | |
Growth | 39 | -2.2% | 7.1% | Bottom tier | |
Quality | 73 | 8.1% | 4.5% | Top tier | |
Safety | 44 | 4.3x | 2.6x | Around median | |
Capital Return | 45 | 6.37% | 2.12% | Around median | |
Momentum | 79 | 5.1% | 2.9% | Top tier | |
Sentiment | 41 | 2 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, 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, Inc. is a real estate company focused on owning, operating, and developing high-quality office buildings in the best business districts within Sunbelt markets, particularly Dallas, Raleigh, Charlotte, Nashville, and Tampa. Its operating income primarily depends on leasing office space and increasing occupancy and rents, while it uses development projects, partnerships, and the recycling of non-core assets to improve portfolio quality and cash flow growth. In Q1 fiscal 2026, the company invested $108 million in properties in Dallas and Raleigh through joint ventures and sold a non-core portfolio in Richmond for $42 million.
In Q1 fiscal 2026, revenue according to EDGAR data was approximately $214.0 million, net income was $32.8 million, and earnings per share were $0.29, equivalent to a calculated net income margin of approximately 15.3%. Management reported on the earnings call net income of $31.3 million and FFO of $94 million, or $0.84 per share; net income included a $17 million gain from the Richmond sale, while this gain was excluded from FFO. By comparison, fiscal 2025 recorded revenue of $806.1 million, net income of $165.8 million, and earnings per share of $1.45.
The business mix reflects a deliberate shift toward higher-quality office buildings in BBD areas, with an accelerating contribution from new developments. During Q1 fiscal 2026, the company placed into service development properties valued at more than $200 million that were 87% leased, including GlenLake III at 94% leased and Granite Park VI at 80% leased. The properties placed into service together with the remaining development pipeline were 86% leased on a combined basis but only 48% physically occupied, making the commencement of signed leases the critical factor in converting leasing into NOI, cash flow, and FFO.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on HIW is Neutral, with an average price target of $32 and a range between $30 and $35. The average is approximately 9.7% below the 52-week range high of $35.44, while the highest target approaches that high and remains slightly below it; this distribution reflects a balance between expected occupancy and NOI growth and the risks of the office sector and delayed commencement of some leases until 2027. The 52-week range extends from $20.45 to $35.44, a variation consistent with the sensitivity of the company's valuation to the trajectory of occupancy, leverage, and long-term office demand.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The primary driver is the increase in the operating portfolio's leased rate to 89.7% in Q1 fiscal 2026 from 89.2% in the previous quarter. The company signed 958 thousand square feet of second-generation leases, including more than 300 thousand square feet of new leases, in addition to 107 thousand square feet of first-generation leases in development projects. It also has approximately 1.2 million square feet of signed leases expected to commence before the end of fiscal 2026, supporting its occupancy target of 86.5% to 88.5%.
Leasing at 23 Springs, a 642 thousand-square-foot property in Uptown Dallas, reached approximately 83% in Q1 fiscal 2026, compared with 75% in the previous quarter and 62% 12 months earlier. Leasing at Midtown East, a 143 thousand-square-foot property in Tampa, reached approximately 95%, compared with 76% in the previous quarter and 39% 12 months earlier, while its office component reached 100%. The company expects these projects, together with developments placed into service, to contribute more than $20 million of annual NOI above the Q1 fiscal 2026 run rate, but some leases will not become fully operational before mid-2027.
Yes, management maintained its fiscal 2026 FFO outlook of $3.40 to $3.68 per share after recording $0.84 in the first quarter. It expects FFO to increase in the second half of the year as occupancy improves, but suggested that the second quarter would be lower than the first quarter. It also reaffirmed its year-end occupancy range of 86.5% to 88.5% and estimated the need for approximately 100 thousand square feet of new leasing per month through June or July 2026 to reach the midpoint.
The company sold a non-core portfolio in Richmond for $42 million during Q1 fiscal 2026, generating a $17 million gain included in net income but not in FFO. It is targeting approximately $200 million of additional asset sales by mid-2026, alongside $108 million of investments in Dallas and Raleigh through joint ventures during the quarter. It also authorized share repurchases of up to $250 million using disposition proceeds on a leverage-neutral basis, without committing to this option as the ultimate use of capital.
Highwoods ended the quarter with more than $650 million of available liquidity. After quarter-end, it closed $100 million of secured property financing on Granite Park VI, resulting in more than $50 million of capital returned to the company. Management expects to end fiscal 2026 with debt to EBITDA in the low-to-mid six times range, assuming $200 million of non-core asset sales, while only $40 million remains to fund the company's share of development projects.
The company's thesis depends on continued demand for high-quality offices in BBD areas within Sunbelt markets, so any weakness in office utilization poses a direct risk to occupancy and rents. Management acknowledged on April 29, 2026, that artificial intelligence could reshape the workforce and affect long-term office demand, but it had not seen a negative impact on its portfolio during Q1 fiscal 2026. Meanwhile, more than 500 thousand square feet of the portfolio was available for sublease, despite this availability declining by approximately 6% to 7% in the previous quarter and some of it being converted to actual tenant use.
