Highwoods Properties, Inc. reported its financial results for the second quarter and first half of 2025, revealing a decline in both rental revenues and net income compared to the same periods in 2024. For the three months ended June 30, 2025, the company generated rental and other revenues of $200.6 million, a decrease of 2.0% from $204.7 million in the prior year. Net income for the quarter was $19.2 million, down significantly from $64.8 million in the same quarter of 2024. The decline in revenue was attributed to lost income from property dispositions and lower occupancy rates, which fell to 85.6% from 87.1% at the end of 2024.
In the first half of 2025, Highwoods reported total revenues of $401.0 million, a decrease of 3.6% from $416.0 million in the first half of 2024. The company’s net income for this period was $119.2 million, an increase from $92.0 million in the previous year, primarily due to gains on property dispositions totaling $82.2 million. The company also noted that its same property net operating income (NOI) decreased by 2.1% in the second quarter, reflecting challenges in maintaining occupancy levels amid a competitive market.
Strategically, Highwoods completed the acquisition of the Advance Auto Parts Tower in Raleigh for $137.9 million during the first quarter of 2025, which contributed positively to revenue despite the overall decline. The company also sold three buildings in Tampa and land in Pittsburgh for a total of $146.3 million, realizing significant gains. As of June 30, 2025, Highwoods owned or had an interest in 27.3 million rentable square feet of in-service properties, with an additional 1.4 million square feet under development.
Operationally, Highwoods reported a total of 108,073,015 shares of common stock outstanding as of July 22, 2025. The company continues to focus on maintaining a diverse and stable customer base, with only two customers accounting for more than 3% of its revenues. Looking ahead, Highwoods anticipates that average occupancy will remain between 85.0% and 86.0% for the remainder of 2025, and it expects rental revenues to continue to be impacted by lower occupancy and property dispositions. The company remains committed to its strategy of enhancing its portfolio through acquisitions and dispositions while managing its financial performance amid evolving market conditions.
About HIGHWOODS PROPERTIES, INC.
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