(HIW) Highwoods Properties - Overview
Sector: Real Estate | Industry: REIT - Office | Exchange: NYSE (USA) | Market Cap: 2.931m USD | Total Return: -5.9% in 12m
Avg Turnover: 31.5M
EPS Trend: 4.2%
Qual. Beats: 0
Rev. Trend: -91.0%
Qual. Beats: 1
Warnings
Earnings expected to drop: P/E 31.4 → Forward 65.8
High Debt/EBITDA (6.9) with thin interest coverage (1.5)
Altman Z'' -0.23 < 1.0 - financial distress zone
Tailwinds
Supp Ema20
Highwoods Properties (HIW) is a Maryland-incorporated Real Estate Investment Trust (REIT) focused on the ownership and operation of office properties within high-growth Sun Belt markets. Headquartered in Raleigh, the firm specializes in Best Business Districts (BBDs) across major metropolitan areas including Atlanta, Charlotte, Nashville, and Dallas. Their business model emphasizes work-placemaking, which involves developing premium, amenity-rich environments designed to attract high-quality corporate tenants.
As an Office REIT, Highwoods Properties is legally required to distribute at least 90% of its taxable income to shareholders in the form of dividends. The company operates as a fully integrated entity, meaning it manages all aspects of the property lifecycle internally, from initial land acquisition and development to ongoing leasing and facilities management. This structure allows for greater operational control over its portfolio of commercial assets.
Investors can further examine the company’s historical dividend growth and valuation metrics on ValueRay. Considering the current shifts in corporate work models, analyzing specific occupancy rates and lease expiration schedules is essential for evaluating the long-term stability of office-focused real estate holdings.
- High-quality office demand in Sun Belt business districts drives rental growth
- Elevated interest rates increase debt servicing costs and pressure FFO margins
- Strategic asset dispositions fund development pipeline amid tightening credit markets
- Occupancy levels depend on corporate return-to-office mandates in major regional hubs
- Concentrated exposure to secondary markets influences portfolio valuation and risk profile
| Net Income: 93.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -1.40 > 1.0 |
| NWC/Revenue: 24.77% < 20% (prev 12.58%; Δ 12.19% < -1%) |
| CFO/TA 0.06 > 3% & CFO 377.5m > Net Income 93.5m |
| Net Debt (3.67b) to EBITDA (531.5m): 6.91 < 3 |
| Current Ratio: 1.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (112.1m) vs 12m ago 2.03% < -2% |
| Gross Margin: 67.37% > 18% (prev 0.67%; Δ 6.67k% > 0.5%) |
| Asset Turnover: 12.94% > 50% (prev 13.44%; Δ -0.50% > 0%) |
| Interest Coverage Ratio: 1.46 > 6 (EBITDA TTM 531.5m / Interest Expense TTM 157.5m) |
| A: 0.03 (Total Current Assets 482.4m - Total Current Liabilities 279.4m) / Total Assets 6.60b |
| B: -0.14 (Retained Earnings -893.7m / Total Assets 6.60b) |
| C: 0.04 (EBIT TTM 230.4m / Avg Total Assets 6.34b) |
| D: -0.22 (Book Value of Equity -895.1m / Total Liabilities 3.98b) |
| Altman-Z'' = -0.23 = B |
| DSRI: 1.06 (Receivables 367.7m/346.7m, Revenue 819.8m/816.2m) |
| GMI: 1.00 (GM 67.37% / 67.32%) |
| AQI: 1.19 (AQ_t 0.16 / AQ_t-1 0.13) |
| SGI: 1.00 (Revenue 819.8m / 816.2m) |
| TATA: -0.04 (NI 93.5m - CFO 377.5m) / TA 6.60b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of June 02, 2026, the stock is trading at USD 26.39 with a total of 991,522 shares traded.
Over the past week, the price has changed by +2.88%,
over one month by +8.94%,
over three months by +19.00% and
over the past year by -5.85%.
Highwoods Properties has received a consensus analysts rating of 3.40. Therefore, it is recommended to hold HIW.
- StrongBuy: 3
- Buy: 0
- Hold: 6
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 25.6 | -3.1% |
P/E Trailing = 31.4458
P/E Forward = 65.7895
P/S = 3.5816
P/B = 1.2366
P/EG = 7.7739
Revenue TTM = 819.8m USD
EBIT TTM = 230.4m USD
EBITDA TTM = 531.5m USD
Long Term Debt = 3.70b USD (from longTermDebt, last quarter)
Short Term Debt = 8.80m USD (from shortTermDebt, last fiscal year)
Debt = 3.70b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.67b USD (calculated: Debt 3.70b - CCE 32.4m)
Enterprise Value = 6.60b USD (2.93b + Debt 3.70b - CCE 32.4m)
Interest Coverage Ratio = 1.46 (Ebit TTM 230.4m / Interest Expense TTM 157.5m)
EV/FCF = 20.79x (Enterprise Value 6.60b / FCF TTM 317.6m)
FCF Yield = 4.81% (FCF TTM 317.6m / Enterprise Value 6.60b)
FCF Margin = 38.75% (FCF TTM 317.6m / Revenue TTM 819.8m)
Net Margin = 11.40% (Net Income TTM 93.5m / Revenue TTM 819.8m)
Gross Margin = 67.37% ((Revenue TTM 819.8m - Cost of Revenue TTM 267.5m) / Revenue TTM)
Gross Margin QoQ = 66.77% (prev 67.17%)
Tobins Q-Ratio = 1.00 (Enterprise Value 6.60b / Total Assets 6.60b)
Interest Expense / Debt = 4.25% (Interest Expense 157.5m / Debt 3.70b)
Taxrate = 21.0% (US default 21%)
NOPAT = 182.0m (EBIT 230.4m * (1 - 21.00%))
Current Ratio = 1.73 (Total Current Assets 482.4m / Total Current Liabilities 279.4m)
Debt / Equity = 1.56 (Debt 3.70b / totalStockholderEquity, last quarter 2.37b)
Debt / EBITDA = 6.91 (Net Debt 3.67b / EBITDA 531.5m)
Debt / FCF = 11.56 (Net Debt 3.67b / FCF TTM 317.6m)
Total Stockholder Equity = 2.38b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.48% (Net Income 93.5m / Total Assets 6.60b)
RoE = 2.86% (Net Income TTM 93.5m / Total Stockholder Equity 3.27b)
RoCE = 3.30% (EBIT 230.4m / Capital Employed (Equity 3.27b + L.T.Debt 3.70b))
RoIC = 2.88% (NOPAT 182.0m / Invested Capital 6.31b)
WACC = 5.41% (E(2.93b)/V(6.63b) * Re(7.99%) + D(3.70b)/V(6.63b) * Rd(4.25%) * (1-Tc(0.21)))
Discount Rate = 7.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 2.63%
[DCF] Terminal Value 73.10% ; FCFF base≈341.6m ; Y1≈299.5m ; Y5≈242.0m
[DCF] Fair Price = 1.94 (EV 3.88b - Net Debt 3.67b = Equity 213.5m / Shares 110.3m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 4.15 | EPS CAGR: 1.57% | SUE: 0.13 | # QB: 0
Revenue Correlation: -91.00 | Revenue CAGR: -1.39% | SUE: 1.48 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.16 | Chg30d=-5.88% | Revisions=-20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.17 | Chg30d=+6.25% | Revisions=+20% | Analysts=1
EPS current Year (2026-12-31): EPS=0.61 | Chg30d=+1.67% | Revisions=+20% | GrowthEPS=+15.1% | GrowthRev=+6.4%
EPS next Year (2027-12-31): EPS=0.76 | Chg30d=+22.58% | Revisions=+20% | GrowthEPS=+24.6% | GrowthRev=+3.5%