Highwoods Properties, Inc. (NYSE:HIW) Announces Quarterly Dividend of $0.50

Key Points

• Highwoods Properties declared a quarterly dividend of $0.50 per share, payable December 8 to shareholders of record on November 16. The annualized dividend is $2.00 per share, representing a 6.6% yield.
• The current dividend payout ratio is elevated at 289.9%, indicating earnings do not fully cover the dividend; however, analysts expect next year’s earnings to reduce the projected payout ratio to 55.1%.
• Analysts maintain a consensus “Hold” rating with a $32 price target. The company’s latest quarterly revenue rose 7.9% year over year, though EPS of $0.85 narrowly missed estimates.

Highwoods Properties, Inc. (NYSE:HIW - Get Free Report) announced a quarterly dividend on Thursday, October 22nd. Investors of record on Monday, November 16th will be paid a dividend of $0.50 per share by the real estate investment trust on Tuesday, December 8th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 6.6%. The ex-dividend date of this dividend is Monday, November 16th.

Highwoods Properties has a payout ratio of 289.9% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Highwoods Properties to earn $3.63 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 55.1%.

Highwoods Properties Stock Performance

Highwoods Properties stock opened at $30.44 on Friday. The firm has a 50 day simple moving average of $30.28 and a 200-day simple moving average of $28.99. Highwoods Properties has a 1-year low of $20.45 and a 1-year high of $35.44. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.68 and a quick ratio of 1.68. The stock has a market cap of $3.36 billion, a price-to-earnings ratio of 20.03 and a beta of 1.06.

Highwoods Properties (NYSE:HIW - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.85 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.86 by ($0.01). The company had revenue of $216.38 million during the quarter, compared to analysts' expectations of $212.15 million. Highwoods Properties had a net margin of 20.74% and a return on equity of 7.06%. The firm's quarterly revenue was up 7.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.89 earnings per share. Highwoods Properties has set its FY 2026 guidance at 3.460-3.700 EPS. On average, analysts expect that Highwoods Properties will post 3.56 EPS for the current year.

Wall Street Analysts Forecast Growth

HIW has been the subject of several recent analyst reports. Truist Financial lifted their price objective on shares of Highwoods Properties from $23.00 to $30.00 and gave the stock a "hold" rating in a research report on Friday, June 26th. Huntington assumed coverage on Highwoods Properties in a research report on Thursday, October 8th. They set a "market perform" rating and a $31.00 target price on the stock. Morgan Stanley boosted their target price on Highwoods Properties from $23.00 to $35.00 and gave the stock an "equal weight" rating in a research note on Wednesday, July 22nd. Wells Fargo & Company raised their price objective on shares of Highwoods Properties from $26.00 to $32.00 and gave the stock an "equal weight" rating in a report on Tuesday, September 1st. Finally, Weiss Ratings upgraded shares of Highwoods Properties from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. Eight analysts have rated the stock with a Hold rating. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $32.00.

About Highwoods Properties

Highwoods Properties, Inc NYSE: HIW is a real estate investment trust that owns, develops, leases and manages primarily office properties. Its portfolio includes office towers, campuses and mixed-use assets designed to serve businesses across a range of industries.

The company focuses on select high-growth markets in the U.S. Sun Belt, including Atlanta, Charlotte, Nashville, Orlando, Raleigh, Richmond and Tampa. In addition to leasing office space, Highwoods provides property management, development and tenant-support services for its buildings and commercial real estate customers.

Highwoods Properties is headquartered in Raleigh, North Carolina.

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