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

Key Points

• Highwoods Properties, Inc. has declared a quarterly dividend of $0.50 per share, to be issued on December 9th, which reflects an annualized dividend yield of 6.7%.
• The company currently has a payout ratio of 289.9%, indicating reliance on its balance sheet to cover dividends, although it is expected to have a more sustainable ratio of 55.7% next year.
• Highwoods Properties reported $0.89 earnings per share for the last quarter, exceeding estimates, despite a 2% decline in revenue compared to the previous year.

Highwoods Properties, Inc. (NYSE:HIW - Get Free Report) declared a quarterly dividend on Thursday, October 23rd. Investors of record on Monday, November 17th will be given a dividend of 0.50 per share by the real estate investment trust on Tuesday, December 9th. This represents a c) dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date is Monday, November 17th.

Highwoods Properties has a payout ratio of 289.9% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Highwoods Properties to earn $3.59 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 55.7%.

Highwoods Properties Stock Performance

Shares of NYSE HIW opened at $29.65 on Friday. Highwoods Properties has a 12-month low of $24.18 and a 12-month high of $35.87. The firm has a market capitalization of $3.20 billion, a price-to-earnings ratio of 24.91 and a beta of 1.24. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 1.42. The firm has a 50 day moving average of $30.97 and a 200 day moving average of $30.12.

Highwoods Properties (NYSE:HIW - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The real estate investment trust reported $0.89 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.04. Highwoods Properties had a net margin of 16.15% and a return on equity of 5.57%. The business had revenue of $200.60 million for the quarter, compared to analysts' expectations of $203.22 million. During the same quarter last year, the company posted $0.98 EPS. The company's revenue was down 2.0% compared to the same quarter last year. Highwoods Properties has set its FY 2025 guidance at 3.370-3.450 EPS. On average, research analysts anticipate that Highwoods Properties will post 3.36 earnings per share for the current year.

Insider Activity at Highwoods Properties

In other news, Director David John Hartzell sold 4,300 shares of the firm's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $32.10, for a total transaction of $138,030.00. Following the completion of the transaction, the director owned 27,489 shares in the company, valued at $882,396.90. This trade represents a 13.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 1.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Highwoods Properties

A number of hedge funds have recently made changes to their positions in HIW. State Street Corp grew its holdings in Highwoods Properties by 1.3% during the 2nd quarter. State Street Corp now owns 6,564,027 shares of the real estate investment trust's stock valued at $204,076,000 after buying an additional 86,506 shares in the last quarter. Massachusetts Financial Services Co. MA raised its holdings in shares of Highwoods Properties by 87.4% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 6,118,701 shares of the real estate investment trust's stock worth $181,358,000 after acquiring an additional 2,852,877 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its position in shares of Highwoods Properties by 0.3% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 3,660,872 shares of the real estate investment trust's stock valued at $108,509,000 after acquiring an additional 10,331 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Highwoods Properties by 15.1% in the first quarter. Invesco Ltd. now owns 2,959,480 shares of the real estate investment trust's stock valued at $87,719,000 after purchasing an additional 388,332 shares in the last quarter. Finally, Daiwa Securities Group Inc. increased its position in Highwoods Properties by 0.4% in the second quarter. Daiwa Securities Group Inc. now owns 2,190,938 shares of the real estate investment trust's stock worth $68,116,000 after purchasing an additional 8,525 shares during the last quarter. 96.31% of the stock is currently owned by hedge funds and other institutional investors.

Highwoods Properties Company Profile

Highwoods Properties, Inc, headquartered in Raleigh, is a publicly-traded NYSE: HIW, fully-integrated office real estate investment trust (REIT) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa.

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