Highwoods Properties: Leasing Is Improving, But The Cash Test Is Still Ahead

Maxell Agustin Aguiran 13 Followers Follow Summary Highwoods Properties remains a Hold with a $31 price target, reflecting minimal capital appreciation potential at current levels. Leasing activity is improving, but cash NOI growth is weak at 0.3%, and occupancy conversion risk persists between leased and occupied rates. FFO guidance midpoint is $3.58 per share, with an 8.63x multiple and a 6.5% dividend yield; however, recurring cash flow visibility is limited. Liquidity is adequate, but funding bridges for development, refinancing risk, and tenant concentration require close monitoring into 2027. JHVEPhoto/iStock Editorial via Getty Images Highwoods Properties, Inc. ( HIW ) did have a nice quarter of leasing, which doesn't necessarily mean strong cash flows for common shareholders. Currently (August 10), its value in the market is $30.91, and I'm still a Hold with a 12MT This article was written by Maxell Agustin Aguiran 13 Followers Follow Maxell Agustin Aguiran is an equity research analyst, quantitative researcher, and Founder & Principal Consultant at Dragon Analytics. He specializes in financial analysis, machine learning, data analysis, and predictive analytics. His work includes developing evidence-based investment research, forecasting models, and analytical solutions that help investors and businesses interpret complex data, evaluate opportunities, and make better-informed decisions. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.