Back to top

Analyst Blog

Highwoods Properties Inc. (HIW - Analyst Report), a real estate investment trust (REIT), recently penned a long-term build-to-suit deal with a leading packaging and paper products firm – International Paper Company (IP - Analyst Report) – for constructing a new office building in Memphis. The transaction is in line with Highwoods’ strategic move toward strengthening its relationship with existing customers.

Memphis, Tenn.-based, International Paper deals in industrial and consumer packaging and uncoated papers, with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa.

Per the deal, Highwoods will build a 9-story Class A office building spanning 241,000 square foot with structured parking on Poplar Avenue corridor submarket – the best business district (‘BBD’) of Memphis. As a matter of fact, the new to-be-build property will be positioned directly across the street from International Place, International Paper’s global headquarter and main campus.

Highwoods’ projects to invest around $56.1 million for the construction project, which includes land acquired by the company exclusively for this development. The construction of the property, which is 100% pre-leased to International Paper, is anticipated to commence in the fourth quarter of 2013. Highwoods expects the project to be completed by the second quarter of 2015.

Memphis is one of the chief markets of Highwoods, with Poplar Avenue corridor submarket being the significant area of operation. In particular, the company currently owns 1.3 million square feet in Memphis' Poplar Avenue corridor submarket. As a whole, Highwoods’ Memphis portfolio comprises 2.0 million square feet of office space, which was 86.5% occupied at the end of 2012.

We expect the abovementioned deal to boost Highwoods’ presence in the Poplar Avenue corridor submarket. Also, it is expected to enhance the company’s top-line growth and prove accretive to the earnings going forward.

Highwoods currently holds a Zacks Rank #3 (Hold). Other REITs that are performing better include Omega Healthcare Investors, Inc. (OHI - Snapshot Report) carrying a Zacks Rank #1 (Strong Buy) and Cousins Properties Inc. (CUZ - Analyst Report) with a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

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 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
SIGNET JEWE… SIG 116.37 +7.72%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%
RF MICRO DE… RFMD 11.76 +2.31%