Highwoods Properties (NYSE:HIW) Issues Quarterly Earnings Results

Key Points

• Highwoods Properties reported quarterly EPS of $0.85, exceeding analysts’ consensus estimate of $0.43 by $0.42. Revenue was $216.38 million, slightly above expectations of $212.15 million.
• The REIT declared a quarterly dividend of $0.50 per share, or $2.00 annually, implying a 5.9% yield; its board also authorized a $250 million share-repurchase program covering up to 9.5% of outstanding shares.
• Despite the earnings beat, analysts maintain a consensus “Hold” rating with a $30 price target. Shares recently traded near $33.62, close to the company’s 52-week high of $34.03.

Highwoods Properties (NYSE:HIW - Get Free Report) posted its earnings results on Tuesday. The real estate investment trust reported $0.85 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.42, FiscalAI reports. Highwoods Properties had a return on equity of 3.97% and a net margin of 11.64%.The firm had revenue of $216.38 million during the quarter, compared to analysts' expectations of $212.15 million.

Highwoods Properties Stock Performance

Highwoods Properties stock traded down $0.23 during trading hours on Tuesday, hitting $33.62. The company had a trading volume of 1,757,851 shares, compared to its average volume of 1,553,021. Highwoods Properties has a one year low of $20.45 and a one year high of $34.03. The firm has a market cap of $3.71 billion, a PE ratio of 40.02 and a beta of 1.07. The firm has a 50-day moving average of $29.68 and a 200 day moving average of $25.95. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.50 and a quick ratio of 1.50.

Highwoods Properties Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 17th will be paid a $0.50 dividend. The ex-dividend date is Monday, August 17th. This represents a $2.00 dividend on an annualized basis and a yield of 5.9%. Highwoods Properties's dividend payout ratio is 238.10%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on HIW shares. Morgan Stanley upped their price target on shares of Highwoods Properties from $23.00 to $35.00 and gave the company an "equal weight" rating in a report on Wednesday, July 22nd. Wells Fargo & Company boosted their price objective on shares of Highwoods Properties from $24.00 to $26.00 and gave the company an "equal weight" rating in a research report on Monday, June 1st. Truist Financial increased their target price on Highwoods Properties from $23.00 to $30.00 and gave the stock a "hold" rating in a report on Friday, June 26th. Mizuho boosted their price target on Highwoods Properties from $25.00 to $30.00 and gave the company a "neutral" rating in a report on Tuesday, July 21st. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $28.00 price objective on shares of Highwoods Properties in a report on Thursday, May 14th. Two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $30.00.

Highwoods Properties declared that its Board of Directors has approved a share buyback plan on Wednesday, April 22nd that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the real estate investment trust to reacquire up to 9.5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its shares are undervalued.

Institutional Trading of Highwoods Properties

Several hedge funds have recently added to or reduced their stakes in the company. Mariner LLC increased its position in Highwoods Properties by 34.9% during the 4th quarter. Mariner LLC now owns 29,330 shares of the real estate investment trust's stock worth $757,000 after buying an additional 7,583 shares during the period. Cerity Partners LLC boosted its position in shares of Highwoods Properties by 35.1% in the fourth quarter. Cerity Partners LLC now owns 25,695 shares of the real estate investment trust's stock valued at $663,000 after acquiring an additional 6,680 shares during the period. Horizon Investments LLC bought a new position in Highwoods Properties during the third quarter worth about $578,000. EFG International AG bought a new position in Highwoods Properties during the fourth quarter worth about $573,000. Finally, BNP Paribas Financial Markets raised its stake in Highwoods Properties by 26.7% in the 3rd quarter. BNP Paribas Financial Markets now owns 16,943 shares of the real estate investment trust's stock worth $539,000 after purchasing an additional 3,571 shares in the last quarter. 96.31% of the stock is owned by institutional investors and hedge funds.

About Highwoods Properties

Highwoods Properties, Inc is a publicly traded real estate investment trust (REIT) that acquires, develops, leases and manages office properties. The company's portfolio is primarily focused on Class A office space, with an emphasis on high-quality buildings in key urban and suburban submarkets. Highwoods seeks to generate long-term, recurring revenues through a mix of in-place lease renewals, strategic dispositions and build-to-suit developments. Its asset management platform drives operational efficiencies and tenant service initiatives across its holdings.

Founded in 1970 and headquartered in Raleigh, North Carolina, Highwoods Properties has expanded its presence to eight major metropolitan regions across the Southeastern United States and Texas.

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