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HIW - Highwoods Properties Inc News Story

$44.51 -0.0  -0.0%

Last Trade - 24/09/21

Large Cap
Market Cap £3.39bn
Enterprise Value £5.30bn
Revenue £533.7m
Position in Universe 1536th / 7172

Highwoods Sells Non-Core Asset in Tampa for $43.0M

Wed 23rd June, 2021 9:05pm
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RALEIGH, N.C., June 23, 2021 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc.
(NYSE:HIW) has sold Preserve VII, a 115,000 square foot single customer
building in north Tampa, for $43.0 million. This property is 100% occupied and
is projected to generate $2.0 million of annual cash net operating income,
including the impact of $0.4 million of free rent, and $2.4 million of annual
GAAP net operating income in 2021.

The Company expects to record a non-FFO gain of approximately $22.8 million in
the second quarter of 2021 in connection with this sale.

Ted Klinck, President and Chief Executive Officer of Highwoods Properties,
said, “This sale is the first closing in our plan to substantially fund our
planned portfolio acquisition from PAC with proceeds from non-core asset
sales. We are pleased with the execution of this sale and buyer interest in
the non-core properties we currently have in the market. We’re looking
forward to redeploying disposition proceeds into high growth BBDs in Charlotte
and Raleigh via our planned portfolio acquisition.”

As previously disclosed, the Company has agreed to acquire a portfolio of
office properties from Preferred Apartment Communities (PAC) for a total
investment of $769 million, including the estimated value of non-core assets,
planned near-term building improvements and transaction costs. The acquisition
is expected to close during the third quarter of 2021. The Company’s plan is
to ultimately fund the acquisition primarily by accelerating the sale of $500
to $600 million of existing non-core assets by mid-2022, approximately half of
which is planned to close by year-end 2021. The Company expects to return its
balance sheet metrics to March 31, 2021 levels by mid-2022.

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 acquisition
of a portfolio of office assets from PAC; the anticipated procurement of an
unsecured bridge facility from JPMorgan Chase Bank, N.A.; 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. Currently, one of the
most significant factors that could cause actual outcomes to differ materially
from our forward-looking statements is the ongoing adverse effect of the
COVID-19 pandemic, and federal, state, and/or local regulatory guidelines and
private business actions to control it, on our financial condition, operating
results and cash flows, our customers, the use of and demand for office space,
the real estate market in which we operate, the global economy and the
financial markets. The extent to which the COVID-19 pandemic impacts us and
our customers will depend on future developments, which are highly uncertain
and cannot be predicted with confidence, including the scope, severity and
duration of the pandemic and its ongoing impact on the U.S. economy and
potential changes in customer behavior, among others.

Additional factors, many of which may be influenced by the COVID-19 pandemic,
that could cause actual outcomes or results to differ materially from those
indicated in these statements include: the closing of the planned acquisition
of a portfolio of office assets from PAC 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
financial condition of our customers could deteriorate or further worsen; 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

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 brendan.maiorana@highwoods.com 919-872-4924  


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