Highwoods Properties (NYSE:HIW) Issues Quarterly Earnings Results

Key Points

• Highwoods reported Q1 EPS of $0.29, beating the consensus of $0.13, with revenue of $214.03M (up 6.8% y/y), and updated FY 2026 guidance to 3.400–3.68 EPS.
• The board declared a quarterly dividend of $0.50 (annualized $2.00, yield 8.0%) but the dividend payout ratio is high at 136.99%, and authorized a $250M share buyback to repurchase up to 9.5% of shares.
• Shares trade near $24.91 with a market cap of $2.75B; the consensus analyst rating is Hold with a $27.67 price target.

Highwoods Properties (NYSE:HIW - Get Free Report) posted its quarterly earnings data on Tuesday. The real estate investment trust reported $0.29 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.16, Zacks reports. The company had revenue of $214.03 million during the quarter, compared to the consensus estimate of $209.06 million. Highwoods Properties had a net margin of 20.10% and a return on equity of 6.86%. The company's quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.83 EPS. Highwoods Properties updated its FY 2026 guidance to 3.400-3.68 EPS.

Highwoods Properties Price Performance

Shares of NYSE HIW opened at $24.91 on Wednesday. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 1.51. The business's 50 day moving average price is $22.39 and its two-hundred day moving average price is $25.39. The company has a market cap of $2.75 billion, a PE ratio of 17.06 and a beta of 1.05. Highwoods Properties has a twelve month low of $20.45 and a twelve month high of $32.76.

Highwoods Properties Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 9th. Investors of record on Monday, May 18th will be issued a dividend of $0.50 per share. The ex-dividend date is Monday, May 18th. This represents a $2.00 dividend on an annualized basis and a yield of 8.0%. Highwoods Properties's dividend payout ratio (DPR) is presently 136.99%.

Highwoods Properties declared that its board has approved a share repurchase program on Wednesday, April 22nd that allows the company to buyback $250.00 million in shares. This buyback authorization allows the real estate investment trust to reacquire up to 9.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd raised its stake in Highwoods Properties by 88.6% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 792 shares of the real estate investment trust's stock valued at $25,000 after acquiring an additional 372 shares during the period. California State Teachers Retirement System increased its holdings in shares of Highwoods Properties by 0.5% in the second quarter. California State Teachers Retirement System now owns 98,051 shares of the real estate investment trust's stock valued at $3,048,000 after purchasing an additional 489 shares during the last quarter. The Manufacturers Life Insurance Company raised its position in shares of Highwoods Properties by 3.0% in the fourth quarter. The Manufacturers Life Insurance Company now owns 19,896 shares of the real estate investment trust's stock valued at $514,000 after purchasing an additional 572 shares during the period. Maryland State Retirement & Pension System raised its position in shares of Highwoods Properties by 3.3% in the fourth quarter. Maryland State Retirement & Pension System now owns 22,218 shares of the real estate investment trust's stock valued at $574,000 after purchasing an additional 720 shares during the period. Finally, Amundi lifted its stake in shares of Highwoods Properties by 1.2% during the 4th quarter. Amundi now owns 74,337 shares of the real estate investment trust's stock worth $1,919,000 after buying an additional 879 shares during the last quarter. 96.31% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

HIW has been the topic of several analyst reports. Morgan Stanley upgraded Highwoods Properties from an "underweight" rating to an "equal weight" rating and dropped their target price for the stock from $24.00 to $23.00 in a report on Tuesday, March 31st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Highwoods Properties in a research report on Thursday, January 22nd. Truist Financial dropped their price objective on Highwoods Properties from $29.00 to $23.00 and set a "hold" rating on the stock in a research note on Tuesday, March 17th. Wall Street Zen raised Highwoods Properties from a "sell" rating to a "hold" rating in a report on Monday, March 23rd. Finally, Citigroup decreased their target price on shares of Highwoods Properties from $30.00 to $24.00 and set a "neutral" rating for the company in a research note on Wednesday, February 18th. Two investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $27.67.

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.