• Highwoods Properties, Inc. recently acquired the Bloc83 office complex in Raleigh’s CBD and The Terraces in Dallas’ Preston Center through joint ventures, planning to fund these deals largely via non-core asset sales within a leverage-neutral capital rotation by mid-2026.
• The company expects these acquisitions to immediately add to cash flows while upgrading its office portfolio toward higher-quality assets with stronger long-run income potential.
• We’ll now examine how funding these accretive Raleigh and Dallas joint venture acquisitions via asset sales could reshape Highwoods Properties’ investment narrative.

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Highwoods Properties Investment Narrative Recap

To own Highwoods Properties, you need to believe in its ability to keep upgrading its Sunbelt office portfolio while supporting a sizeable dividend, despite pressured earnings and interest coverage. The Bloc83 and Terraces joint ventures fit this “trade up in quality” story, but they do not fundamentally change the near term focus on leasing momentum as the key catalyst or the main risk around balance sheet flexibility.

The most relevant recent announcement alongside these acquisitions is the steady US$0.50 quarterly dividend, which signals an ongoing commitment to income even as earnings and interest coverage remain under pressure. How sustainable that payout is if asset sales or leasing trends disappoint is something investors should keep in mind as they weigh...

Highwoods Properties' narrative projects $903.7 million revenue and $69.7 million earnings by 2028. This requires 3.5% yearly revenue growth and a $56.8 million earnings decrease from $126.5 million today.

Uncover how Highwoods Properties' forecasts yield a $29.70 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community range from US$29.70 to about US$42.78, underlining how differently investors can view Highwoods. You should weigh those views against the company’s reliance on portfolio recycling to support cash flows and consider what that might mean if transaction markets slow or asset prices soften.

Explore 2 other fair value estimates on Highwoods Properties - why the stock might be worth as much as 57% more than the current price!

Build Your Own Highwoods Properties Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Highwoods Properties research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Highwoods Properties research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Highwoods Properties' overall financial health at a glance.

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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.