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Highwoods (HIW) Q2 FFO & Revenues Beat Estimates, NOI Rises

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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.

Highwoods Properties, Inc. Price, Consensus and EPS Surprise

Highwoods Properties, Inc. Price, Consensus and EPS Surprise

Highwoods Properties, Inc. price-consensus-eps-surprise-chart | Highwoods Properties, Inc. Quote

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.