Highwoods Properties (HIW) has kicked off a US$300 million at the market follow-on equity offering, shortly after reporting its fourth quarter and full year 2025 earnings and outlining its acquisition and development plans.

The at the market program and recent earnings update come after a 16.05% 30 day share price decline and a 15.65% 1 year total shareholder return decline, while the 3 year total shareholder return is slightly positive, suggesting recent momentum has softened compared with longer term performance.

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So with earnings improving, an at the market program in place, and the share price down over the past year, is Highwoods now trading at an attractive discount, or is the market already pricing in future growth?

Most Popular Narrative: 20.9% Undervalued

Highwoods Properties last closed at $23.12, while the most followed narrative pegs fair value closer to $29.22. This creates a clear valuation gap that hinges on a detailed cash flow story.

The ongoing shift to remote and hybrid work remains a structural headwind, and management's optimism on in office momentum may overstate the sustainability of recent leasing trends. If physical office demand fails to fully rebound, Highwoods could face higher long term vacancy and stagnant or declining rental revenue.

Want to see what justifies paying more than today’s price even with earnings expected to trend lower and margins tightening over time? The full narrative lays out a detailed path built on measured revenue growth assumptions, compressing profitability, and a richer future earnings multiple that all have to line up for that fair value to hold.

Result: Fair Value of $29.22 (UNDERVALUED)

However, this upside case could be knocked off course if remote and hybrid work continue to limit office demand, or if high renovation and tenant costs continue to pressure margins.

Next Steps

If this mix of risks and potential rewards feels finely balanced, do not wait around.

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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.