Highwoods Properties (HIW) recently declared a quarterly dividend totaling US$0.50 per share, with an ex-dividend date of 17 August 2026. This continues a long streak of annual increases but comes as investors assess dividend sustainability.

The share price of Highwoods Properties has eased in the short term, with a 1-day share price return of 2.70% down and a 30-day share price return of 7.98% down, even after a 90-day share price return of 21.76% and a 1-year total shareholder return of 14.47%. This points to longer term momentum while near term sentiment cools around dividend sustainability and earnings trends.

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Highwoods Properties combines a long record of dividend growth with pressure on earnings and a softer recent share price. The key issue now is whether that mix leaves the stock attractively valued or already fully priced.

Most Popular Narrative: 3.7% Overvalued

With Highwoods Properties last closing at $30.66 against a narrative fair value of $29.56, the latest consensus view points to a modest premium that hinges on how future earnings and cash flows evolve under changing office demand.

Aging buildings and the need for continual asset modernization, including sustainability retrofits and elevated tenant improvements, will keep capital expenditures high over the next several years, putting sustained pressure on net margins and limiting growth in cash flows.

If you want to see what is driving that valuation gap for Highwoods Properties, the narrative leans heavily on shifting revenue growth, thinner margins, and a richer future earnings multiple. The mix of steady top line assumptions with falling profits and a higher implied P/E is where the story really gets interesting.

Result: Fair Value of $29.56 (OVERVALUED)

However, there are still clear risks to the Highwoods Properties narrative, including remote and hybrid work limiting office demand and high capital spending straining margins and cash flows.

Another View On Highwoods Properties Valuation

While the narrative fair value suggests Highwoods Properties is 3.7% overvalued at $30.66, our DCF model points in the opposite direction. On this view the stock trades below an estimated future cash flow value of $39.77, which raises a simple question: How much weight do you put on cash flow forecasts versus earnings multiples?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Highwoods Properties for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

The mixed signals around Highwoods Properties can feel uncertain, so use that as a prompt to move quickly, review the full data set, and decide where you stand. To see how the current mix of risks and rewards stacks up in one place, start with the 3 key rewards and 3 important warning signs

Looking for more investment ideas beyond Highwoods Properties?

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• Target reliable income potential by scanning for companies with strong payouts and financial resilience through the 10 dividend fortresses.
• Spot opportunities that combine quality and value by checking companies highlighted in the 53 high quality undervalued stocks.
• Stay ahead of the crowd by reviewing companies with solid fundamentals that receive less attention through the screener containing 19 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.