Highwoods Properties (HIW) investor relations material

Executive summary

• Achieved strong leasing and operational performance, with 958,000 sq ft of second-generation leases signed and robust activity in both in-service and development properties, driving higher lease rates and future NOI, cash flow, and FFO growth.

• Portfolio spans 26.8M SF, focused on high-quality office properties in Sunbelt BBDs, with 89.7% leased as of March 31, 2026, and a continued emphasis on sustainable growth, ESG leadership, and capital recycling.

• Completed joint venture acquisitions in Dallas and Raleigh, investing over $108 million, and sold $42 million of non-core assets in Richmond, improving portfolio quality and cash flows.

• Board authorized up to $250 million in share repurchases, to be funded by non-core asset sales on a leverage-neutral basis.

• Leasing pipeline remains robust, with high-quality space in BBDs in short supply and strong demand supporting occupancy and rent growth.

Financial highlights

• Delivered FFO of $94 million ($0.84 per share) and net income of $31.4 million ($0.29 per share) in Q1 2026, with rental and other revenues rising 6.8% year-over-year to $214.0 million.

• GAAP rent growth was 19.4% and cash rent growth was 4.8% year-over-year on second-generation leases; net effective rents were 8.8% above the prior five-quarter average.

• Same property NOI declined 0.1% to $135.2 million, with cash same property NOI down 0.6% to $128.5 million.

• Placed in service over $200 million of 87% leased development properties; GlenLake III is now 94% leased.

• In-service leased rate was 89.7%, up 60 basis points sequentially, with occupancy at 85.0%.

Outlook and guidance

• Maintains full-year 2026 FFO outlook of $3.40 to $3.68 per share, with year-end occupancy expected between 86.5% and 88.5%.

• Same property cash NOI growth projected between -1.0% and +1.0% year-over-year.

• Expects $190 million to $210 million in planned building dispositions in the next three months, with up to $250 million of non-core asset sales targeted for 2026.

• NOI growth expected as leases commence, with over $20 million of annual NOI growth from new developments compared to Q1 run rate.