Back to top

Analyst Blog

Highwoods Properties, Inc. (HIW - Analyst Report), a real estate investment trust (REIT), recently entered into long-term agreements with three new customers to lease a total of 69,000 square feet at PPG Place office complex located in Pittsburgh.

As per the transaction, the company leased office space spanning 35,000 square feet and 18,000 square feet at PPG Place I and another office space spanning 16,000 square foot at PPG Place VI.

Situated in the heart of downtown Pittsburgh, PPG Place is a six-building Class A office complex of approximately 1.54 million square feet. The building already boasts a number of renowned tenants like PPG Industries Inc. (PPG - Analyst Report), H. J. Heinz Company , Allegheny Technologies Incorporated (ATI - Analyst Report), Deloitte & Touche, Morgan Stanley Smith Barney and Ernst & Young.

With the acquisition of PPG Place in September 2011, Highwoods debuted in the vibrant diversified market of Pittsburgh. The city is well known for its developed medicine, higher education, tourism, banking, corporate headquarters and high technology sectors.

Since the acquisition of PPG Place, the occupancy of the company’s overall portfolio has increased 240 basis points to 83.6%. The company is on track to increase occupancy by an additional 290 basis points to 86.5% by end of 2012, including the impact of the new lease agreements.

Based in Raleigh, North Carolina, Highwoods is one of the biggest owners and operators of suburban office, industrial and retail properties in the Southeastern and Midwestern U.S., providing a complete line of real estate services to its customers and third parties through a fully-integrated organization. The core markets of the company include Florida, Georgia, Maryland, Missouri, Mississippi, North Carolina, South Carolina, Tennessee and Virginia.

Recently, Highwoods reported second quarter 2012 adjusted FFO (Funds from Operations) of 70 cents, in line with the Zacks Consensus Estimate and 11.1% higher than the year-ago adjusted FFO of 63 cents. We presently have a long-term Neutral recommendation on the stock. Also, the company carries a Zacks #3 Rank, which translates into a short-term Hold rating.

Note: FFO, a widely accepted and reported measure of  the performance of REITs, is derived by adding depreciation, amortization and other non-cash expenses to net income.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GTT COMMUNI… GTT 11.65 +4.11%
ALLERGAN IN… AGN 161.82 +3.99%
CLAYTON WIL… CWEI 117.06 +3.73%
GREENBRIER… GBX 69.63 +2.37%
RF MICRO DE… RFMD 12.02 +2.04%