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HIW - Highwoods Properties Inc News Story

$43.77 -0.3  -0.7%

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Large Cap
Market Cap £3.38bn
Enterprise Value £5.64bn
Revenue £547.8m
Position in Universe 1446th / 7397

Highwoods Announces $134M of Non-Core Asset Sales

Mon 8th November, 2021 9:05pm
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RALEIGH, N.C., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc.
(NYSE:HIW) has sold 5405 Windward Parkway, a 248,000 square foot office
building in Atlanta, for $48.0 million and 50 Glenlake, a 145,000 square foot
office building also in Atlanta, for $20.6 million. Additionally, the Company
expects to close on the sale of three additional non-core buildings
encompassing 366,000 square feet for a combined purchase price of $65.5
million prior to December 31, 2021.

On a combined basis, these office properties are 78% occupied and were
projected to generate $7.8 million of GAAP net operating income and $7.3
million of cash net operating income in 2021.

Ted Klinck, President and Chief Executive Officer of Highwoods Properties,
said, “With these sales, we will have closed on $297 million of dispositions
since we first announced our $683 million acquisition of trophy office assets
in the high-growth markets of Charlotte and Raleigh from Preferred Apartment
Communities. We are on track with our plan to return our balance sheet metrics
to pre-acquisition levels by mid-2022, while improving the quality of our
portfolio and providing higher growth for our shareholders over time.”

About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded
(NYSE:HIW) real estate investment trust (“REIT”) and a member of the S&P
MidCap 400 Index. The Company is a fully-integrated office REIT that owns,
develops, acquires, leases and manages properties primarily in the best
business districts (BBDs) of Atlanta, Charlotte, Nashville, Orlando,
Pittsburgh, Raleigh, Richmond and Tampa.  For more information about
Highwoods, please visit our website at www.highwoods.com.

Forward-Looking Statements
Some of the information in this press release may contain forward-looking
statements. Such statements include, in particular, statements about our
plans, strategies and prospects such as the following: the planned sales of
non-core assets and expected pricing and impact with respect to such sales,
including the tax impact of such sales; the expected financial and operational
results and the related assumptions underlying our expected results, including
but not limited to potential losses related to customer difficulties,
anticipated building usage and expected economic activity due to COVID-19; the
continuing ability to borrow under the Company’s revolving credit facility;
the anticipated total investment, projected leasing activity, estimated
replacement cost and expected net operating income of acquired properties and
properties to be developed; and expected future leverage of the Company. You
can identify forward-looking statements by our use of forward-looking
terminology such as “may,” “will,” “expect,” “anticipate,”
“estimate,” “continue” or other similar words. Although we believe
that our plans, intentions and expectations reflected in or suggested by such
forward-looking statements are reasonable, we cannot assure you that our
plans, intentions or expectations will be achieved.

When considering such forward-looking statements, you should keep in mind
important factors that could cause our actual results to differ materially
from those contained in any forward-looking statement, including the
following: closing of planned non-core dispositions may not occur on the terms
described in this press release or at all; buyers may not be available and
pricing may not be adequate with respect to planned dispositions of non-core
assets; comparable sales data on which we based our expectations with respect
to the sales price of non-core assets may not reflect current market trends;
the extent to which the ongoing COVID-19 pandemic impacts our financial
condition, results of operations and cash flows depends on future
developments, which are highly uncertain and cannot be predicted with
confidence, including the scope, severity and duration of the pandemic and its
impact on the U.S. economy and potential changes in customer behavior that
could adversely affect the use of and demand for office space; the financial
condition of our customers could deteriorate or further worsen, which could be
further exacerbated by the COVID-19 pandemic; our assumptions regarding
potential losses related to customer financial difficulties due to the
COVID-19 pandemic could prove incorrect; counterparties under our debt
instruments, particularly our revolving credit facility, may attempt to avoid
their obligations thereunder, which, if successful, would reduce our available
liquidity; we may not be able to lease or re-lease second generation space,
defined as previously occupied space that becomes available for lease, quickly
or on as favorable terms as old leases; we may not be able to lease newly
constructed buildings as quickly or on as favorable terms as originally
anticipated; we may not be able to complete development, acquisition,
reinvestment, disposition or joint venture projects as quickly or on as
favorable terms as anticipated; development activity in our existing markets
could result in an excessive supply relative to customer demand; our markets
may suffer declines in economic and/or office employment growth; unanticipated
increases in interest rates could increase our debt service costs;
unanticipated increases in operating expenses could negatively impact our
operating results; natural disasters and climate change could have an adverse
impact on our cash flow and operating results; we may not be able to meet our
liquidity requirements or obtain capital on favorable terms to fund our
working capital needs and growth initiatives or repay or refinance outstanding
debt upon maturity; and the Company could lose key executive officers.

This list of risks and uncertainties, however, is not intended to be
exhaustive. You should also review the other cautionary statements we make in
“Risk Factors” set forth in our 2020 Annual Report on Form 10-K. Given
these uncertainties, you should not place undue reliance on forward-looking
statements. We undertake no obligation to publicly release the results of any
revisions to these forward-looking statements to reflect any future events or
circumstances or to reflect the occurrence of unanticipated events.

 Contact:  Brendan Maiorana                                   
           Executive Vice President of Finance and Treasurer  


GlobeNewswire, Inc. 2021
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