Subscribe to Entrepreneur for $5

Highwoods (HIW) Q3 FFO & Revenues Top Estimates, NOI Rises

Highwoods' (HIW) better-than-expected Q3 results reflect healthy rental revenues and solid same-property cash net operating income.

This story originally appeared on Zacks

Highwoods Properties, Inc.’s HIW third-quarter 2021 funds from operations (FFO) per share of 96 cents surpassed the Zacks Consensus Estimate of 93 cents. Rental and other revenues of $195.5 million outpaced the Zacks Consensus Estimate of $192.2 million.

- Zacks

Decent leasing activity as well as rent and same-property cash net operating income (NOI) growth aided the company.

As the FFO per share increased 11.6% to 96 cents, year over year, the rental and other revenues climbed 8% in the third quarter.

Quarter in Detail

Highwoods leased 672,000 square feet of second-generation office space in the third quarter, including 245,000 square feet of new leases. The in-place cash rent was up 2% per square foot on a year-over-year basis. At the end of the reported quarter, occupancy was 90.4%.

Excluding the net impact of temporary rent deferral repayments, the same-property cash NOI increased 5.2% year over year.

As of Sep 30, 2021, Highwoods had $27.9 million of cash and cash equivalents compared with the $109.3 million reported as of Dec 31, 2020.

The company closed the acquisition of office assets from Preferred Apartment Communities, Inc for $683 million.


Highwoods predicts 2021 FFO per share of $3.73-$3.76 compared with the $3.62-$3.73 estimated earlier. The Zacks Consensus Estimate for the same is pegged at $3.71.

The same-property cash NOI for the current year is projected at 6-7%, while the year-end occupancy is estimated to be 90-91%. Dispositions are expected to be $87-$137 million.

Highwoods currently carries a Zacks Rank #2 (Buy). 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 CyrusOne Inc. CONE scheduled for Oct 28, Apple Hospitality REIT  APLE and CubeSmart  CUBE slated for Nov 4.

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.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


Highwoods Properties, Inc. (HIW): Free Stock Analysis Report


CubeSmart (CUBE): Free Stock Analysis Report


CyrusOne Inc (CONE): Free Stock Analysis Report


Apple Hospitality REIT, Inc. (APLE): Free Stock Analysis Report


To read this article on click here.


Zacks Investment Research