Highwoods Properties, Inc. reported a decrease in revenue and profitability for the fiscal year ending December 31, 2025, with total rental and other revenues amounting to $806.1 million, down from $825.9 million in 2024. The company’s net income rose to $162.7 million, compared to $104.3 million in the previous year, resulting in diluted earnings per share of $1.45, an increase from $0.94. The decline in revenue was primarily attributed to lost income from property dispositions and lower consolidated same property revenues, which were impacted by a decrease in average occupancy from 87.1% in 2024 to 85.3% in 2025.
In terms of strategic developments, Highwoods Properties made significant acquisitions during 2025, including the purchase of 6HUNDRED, a 411,000 square foot office building in Charlotte for $193.4 million, and the Advance Auto Parts Tower in Raleigh for $137.9 million. The company also sold several properties, generating gains on dispositions totaling $107.1 million. These transactions reflect the company's ongoing strategy to enhance its portfolio by acquiring high-quality assets while divesting non-core properties.
Operationally, Highwoods Properties managed a portfolio of 27.5 million rentable square feet across key markets, including Atlanta, Charlotte, and Nashville. The company reported a total of 1,500 customers, with its largest clients being Bank of America and Asurion, which accounted for 4.3% and 3.5% of annualized GAAP rental revenue, respectively. The company’s employee headcount decreased to 315, down from 347 in the previous year, with an average employee tenure of 10 years.
Looking ahead, Highwoods Properties anticipates an increase in rental and other revenues for 2026, driven by the contributions from recent acquisitions and completed development projects. The company expects average occupancy to stabilize between 85% and 87% in the coming year. Additionally, the firm maintains a conservative balance sheet with a leverage ratio of 43.7% as of December 31, 2025, and has ample liquidity to support its operations and growth initiatives, including a $750 million revolving credit facility. The company declared a cash dividend of $0.50 per share, consistent with its previous dividend payments, reflecting its commitment to returning value to shareholders.
About HIGHWOODS PROPERTIES, INC.
Highwoods Properties, Inc. is a fully integrated real estate investment trust (REIT) specializing in owning, developing, leasing, and managing office properties primarily in major U.S. business districts. Its portfolio focuses on high-quality workplaces in vibrant markets, offering competitive leasing services and sustainable, environmentally resilient buildings. The company emphasizes long-term value creation through strategic acquisitions, development, and operational excellence in the office real estate sector.
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