Highwoods Properties, Inc.’s (HIW - Free Report) second-quarter 2021 funds from operations (FFO) per share of 93 cents surpassed the Zacks Consensus Estimate by a cent. Rental and other revenues of $185.5 million outpaced the Zacks Consensus Estimate of $184.9 million.
Decent leasing activity as well as rent and same-property cash net operating income (NOI) growth aided the company.
While FFO per share remained flat at 93 cents, year over year, rental and other revenues inched up 1.3% in the second quarter.
Quarter in Detail
Highwoods leased 899,000 square feet of second-generation office space in the second quarter, including 323,000 square feet of new leases. In-place cash rent was up 4% per square foot on a year-over-year basis. At the end of the reported quarter, occupancy was 89.5%.
Excluding the net impact of temporary rent deferral repayments, same-property cash NOI increased 5.3% year over year.
As of Jun 30, 2021, Highwoods had $6.5 million of cash and cash equivalents compared with $109.3 million reported as of Dec 31, 2020.
The company announced the planned acquisition of office assets from Preferred Apartment Communities, Inc.
During the second quarter, it sold an 115,000-square-foot non-core office building in Tampa for $43 million.
Guidance
Highwoods predicts 2021 FFO per share of $3.62-$3.73 compared with the $3.54-$3.66 estimated earlier. The Zacks Consensus Estimate for the same is pegged at $3.64.
Same-property cash NOI for the current year is projected at 4.25-5.5%, while year-end occupancy is estimated to be 89.5-91.5%. Dispositions are expected to be $207-$257 million, while acquisitions are likely to be $680-$769 million for this year.
Highwoods currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of other REITs like Digital Realty Trust, Inc. (DLR - Free Report) , Cousins Properties (CUZ - Free Report) and CubeSmart (CUBE - Free Report) . All three companies are slated to report second-quarter earnings on Jul 29.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Highwoods Properties, Inc.’s (HIW - Free Report) second-quarter 2021 funds from operations (FFO) per share of 93 cents surpassed the Zacks Consensus Estimate by a cent. Rental and other revenues of $185.5 million outpaced the Zacks Consensus Estimate of $184.9 million.
Decent leasing activity as well as rent and same-property cash net operating income (NOI) growth aided the company.
While FFO per share remained flat at 93 cents, year over year, rental and other revenues inched up 1.3% in the second quarter.
Quarter in Detail
Highwoods leased 899,000 square feet of second-generation office space in the second quarter, including 323,000 square feet of new leases. In-place cash rent was up 4% per square foot on a year-over-year basis. At the end of the reported quarter, occupancy was 89.5%.
Excluding the net impact of temporary rent deferral repayments, same-property cash NOI increased 5.3% year over year.
As of Jun 30, 2021, Highwoods had $6.5 million of cash and cash equivalents compared with $109.3 million reported as of Dec 31, 2020.
The company announced the planned acquisition of office assets from Preferred Apartment Communities, Inc.
During the second quarter, it sold an 115,000-square-foot non-core office building in Tampa for $43 million.
Guidance
Highwoods predicts 2021 FFO per share of $3.62-$3.73 compared with the $3.54-$3.66 estimated earlier. The Zacks Consensus Estimate for the same is pegged at $3.64.
Same-property cash NOI for the current year is projected at 4.25-5.5%, while year-end occupancy is estimated to be 89.5-91.5%. Dispositions are expected to be $207-$257 million, while acquisitions are likely to be $680-$769 million for this year.
Highwoods currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of other REITs like Digital Realty Trust, Inc. (DLR - Free Report) , Cousins Properties (CUZ - Free Report) and CubeSmart (CUBE - Free Report) . All three companies are slated to report second-quarter earnings on Jul 29.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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