Highwoods Properties Q4 FFO Beats Estimates, Revenues Miss

HIW tops Q4 FFO estimates on strong leasing and rent growth while guiding 2026 FFO in line with expectations.

Published on Feb. 11, 2026

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Highwoods Properties, Inc. reported fourth-quarter 2025 funds from operations (FFO) that beat analyst estimates, driven by healthy leasing activity and rent growth. However, the company's revenues fell short of expectations. For the full year 2024, Highwoods' FFO per share came in at $3.48, lower than the prior-year tally of $3.61 but higher than the Zacks Consensus Estimate.

Why it matters

Highwoods Properties is a major office real estate investment trust (REIT) that operates primarily in the Southeastern and Midwestern United States. The company's quarterly results provide insight into the overall health of the office real estate market, which has faced challenges in recent years due to the shift to remote work during the COVID-19 pandemic.

The details

Highwoods' second-generation leasing activity encompassed 526,000 square feet of space in the fourth quarter, including 221,000 square feet of new leases. The dollar-weighted average term is 5.6 years. GAAP rent growth was 15.4%, and cash rent growth was 1.2%. During the fourth quarter, the company achieved its highest-ever net effective rents, which were 19% higher than the prior peak of 2022. The company's development pipeline aggregates $474 million (at HIW share) and is 78% pre-leased. Highwoods also sold off non-core assets for combined gross proceeds of $65.9 million during the quarter and acquired two properties in Raleigh and Dallas after the quarter ended.

  • Highwoods reported fourth-quarter 2025 results on February 11, 2026.
  • For the full year 2024, Highwoods' FFO per share came in at $3.48.

The players

Highwoods Properties, Inc.

A major office real estate investment trust (REIT) that operates primarily in the Southeastern and Midwestern United States.

Zacks Equity Research

The research arm of Zacks Investment Research, a leading investment research firm.

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The takeaway

Highwoods Properties' fourth-quarter results demonstrate the continued resilience of the office real estate market, particularly in the Southeastern and Midwestern regions where the company operates. The company's strong leasing activity and rent growth suggest that demand for office space remains solid, despite the challenges posed by the shift to remote work during the pandemic.