We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Highwoods Concludes Property Acquisition in Raleigh for $138M
Read MoreHide Full Article
Highwoods Properties, Inc. (HIW - Free Report) recently announced that it has completed the acquisition of Advance Auto Parts Tower for $138 million. The property — a 20-story, Class AA office tower, spanning around 346,000 square feet — is located in Raleigh’s mixed-use North Hills Best Business District (“BBD”).
Located adjacent to Highwoods’ owned CAPTRUST Tower, the property under consideration, built in 2020, is duly LEED-gold certified. As of Dec. 31, 2024, it is fully leased with a weighted average lease term of 8.2 years. Following the closing of the transaction, Advance Auto is estimated to generate cash net operating income of $11.0 million in the first four quarters.
Highwoods plans to finance the above acquisition by using the proceeds of the recent non-core asset sale in Tampa, FL. The move will aid HIW in meeting the growing demand for premier office properties with class-apart amenities.
Highwoods: In a Nutshell
Highwoods follows a disciplined capital-recycling strategy that entails disposing of non-core assets and redeploying the proceeds in premium asset acquisitions and accretive development projects. The above acquisition highlights the company’s efforts to expand its footprint in high-growth BBD markets and improve the quality of the overall portfolio through acquisitions and development.
Highwoods’ well-diversified tenant base, efforts to expand in the high-growth markets and balance sheet strength are its key growth drivers. However, competition from other players is likely to limit its pricing power and hurt profitability. High interest expenses add to its woes.
Over the past year, shares of this Zacks Rank #4 (Sell) company have risen 13.3%, outperforming the industry’s growth of 5.6%.
Image: Bigstock
Highwoods Concludes Property Acquisition in Raleigh for $138M
Highwoods Properties, Inc. (HIW - Free Report) recently announced that it has completed the acquisition of Advance Auto Parts Tower for $138 million. The property — a 20-story, Class AA office tower, spanning around 346,000 square feet — is located in Raleigh’s mixed-use North Hills Best Business District (“BBD”).
Located adjacent to Highwoods’ owned CAPTRUST Tower, the property under consideration, built in 2020, is duly LEED-gold certified. As of Dec. 31, 2024, it is fully leased with a weighted average lease term of 8.2 years. Following the closing of the transaction, Advance Auto is estimated to generate cash net operating income of $11.0 million in the first four quarters.
Highwoods plans to finance the above acquisition by using the proceeds of the recent non-core asset sale in Tampa, FL. The move will aid HIW in meeting the growing demand for premier office properties with class-apart amenities.
Highwoods: In a Nutshell
Highwoods follows a disciplined capital-recycling strategy that entails disposing of non-core assets and redeploying the proceeds in premium asset acquisitions and accretive development projects. The above acquisition highlights the company’s efforts to expand its footprint in high-growth BBD markets and improve the quality of the overall portfolio through acquisitions and development.
Highwoods’ well-diversified tenant base, efforts to expand in the high-growth markets and balance sheet strength are its key growth drivers. However, competition from other players is likely to limit its pricing power and hurt profitability. High interest expenses add to its woes.
Over the past year, shares of this Zacks Rank #4 (Sell) company have risen 13.3%, outperforming the industry’s growth of 5.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are SBA Communications (SBAC - Free Report) and Cousins Properties (CUZ - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for SBA Communications’ 2025 FFO per share has been moved marginally northward to $12.91 over the past two months.
The consensus estimate for Cousins Properties’ 2025 FFO per share has been moved marginally upward to $2.78 over the past week.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.