Highwoods Announces $134M of Non-Core Asset Sales
Highwoods Properties (NYSE:HIW) has finalized the sale of two office buildings in Atlanta for a total of $68.6 million. The properties sold include 5405 Windward Parkway (248,000 sq. ft.) for $48.0 million and 50 Glenlake (145,000 sq. ft.) for $20.6 million. The company anticipates closing three additional non-core offices, totaling 366,000 sq. ft., for $65.5 million by year-end. These properties represent a collective 78% occupancy and were expected to generate approximately $7.8 million in net operating income for 2021. This marks a significant step in Highwoods' strategy to enhance its balance sheet and portfolio quality.
- Successfully sold two office buildings for $68.6 million.
- Anticipated sale of three additional properties for $65.5 million enhances liquidity.
- Plan to improve balance sheet metrics to pre-acquisition levels by mid-2022.
- Sold properties had a combined occupancy of only 78%.
- Sales impact could be limited due to economic uncertainties and ongoing COVID-19 challenges.
RALEIGH, N.C., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) has sold 5405 Windward Parkway, a 248,000 square foot office building in Atlanta, for
On a combined basis, these office properties are
Ted Klinck, President and Chief Executive Officer of Highwoods Properties, said, “With these sales, we will have closed on
About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate investment trust (“REIT”) and a member of the S&P MidCap 400 Index. The Company is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. For more information about Highwoods, please visit our website at www.highwoods.com.
Forward-Looking Statements
Some of the information in this press release may contain forward-looking statements. Such statements include, in particular, statements about our plans, strategies and prospects such as the following: the planned sales of non-core assets and expected pricing and impact with respect to such sales, including the tax impact of such sales; the expected financial and operational results and the related assumptions underlying our expected results, including but not limited to potential losses related to customer difficulties, anticipated building usage and expected economic activity due to COVID-19; the continuing ability to borrow under the Company’s revolving credit facility; the anticipated total investment, projected leasing activity, estimated replacement cost and expected net operating income of acquired properties and properties to be developed; and expected future leverage of the Company. You can identify forward-looking statements by our use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue” or other similar words. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that our plans, intentions or expectations will be achieved.
When considering such forward-looking statements, you should keep in mind important factors that could cause our actual results to differ materially from those contained in any forward-looking statement, including the following: closing of planned non-core dispositions may not occur on the terms described in this press release or at all; buyers may not be available and pricing may not be adequate with respect to planned dispositions of non-core assets; comparable sales data on which we based our expectations with respect to the sales price of non-core assets may not reflect current market trends; the extent to which the ongoing COVID-19 pandemic impacts our financial condition, results of operations and cash flows depends on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic and its impact on the U.S. economy and potential changes in customer behavior that could adversely affect the use of and demand for office space; the financial condition of our customers could deteriorate or further worsen, which could be further exacerbated by the COVID-19 pandemic; our assumptions regarding potential losses related to customer financial difficulties due to the COVID-19 pandemic could prove incorrect; counterparties under our debt instruments, particularly our revolving credit facility, may attempt to avoid their obligations thereunder, which, if successful, would reduce our available liquidity; we may not be able to lease or re-lease second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorable terms as old leases; we may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; we may not be able to complete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated; development activity in our existing markets could result in an excessive supply relative to customer demand; our markets may suffer declines in economic and/or office employment growth; unanticipated increases in interest rates could increase our debt service costs; unanticipated increases in operating expenses could negatively impact our operating results; natural disasters and climate change could have an adverse impact on our cash flow and operating results; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or repay or refinance outstanding debt upon maturity; and the Company could lose key executive officers.
This list of risks and uncertainties, however, is not intended to be exhaustive. You should also review the other cautionary statements we make in “Risk Factors” set forth in our 2020 Annual Report on Form 10-K. Given these uncertainties, you should not place undue reliance on forward-looking statements. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements to reflect any future events or circumstances or to reflect the occurrence of unanticipated events.
| Contact: | Brendan Maiorana |
| Executive Vice President of Finance and Treasurer | |
| brendan.maiorana@highwoods.com | |
| 919-872-4924 |
FAQ
What properties did Highwoods Properties sell for $68.6 million?
What is the square footage of the sold buildings by Highwoods Properties?
How much additional real estate does Highwoods Properties plan to sell by the end of 2021?
What was the occupancy rate of the sold properties?
What is the projected net operating income for the sold properties in 2021?
