Highwoods Provides Leasing Update
Highwoods Properties (NYSE:HIW) has reported strong second-generation leasing activity, signing 738,000 square feet of leases since July 1, 2024, including over 400,000 square feet of new leases. A notable highlight is a long-term lease for 104,000 square feet at Two Alliance Center in Atlanta's Buckhead BBD with a new customer, set to commence in 2026. This lease will significantly backfill space vacated by a customer in Q3 2024.
CEO Ted Klinck emphasized that office users are favoring high-quality buildings with well-capitalized landlords. Highwoods has seen a 37% increase in new deals compared to all of 2023, with the majority of these leases expected to benefit the company from mid-2025 onwards. The company remains optimistic about its leasing pipeline momentum.
Highwoods Properties (NYSE:HIW) ha riportato una forte attività di leasing di seconda generazione, firmando 738.000 piedi quadrati di contratti dal 1° luglio 2024, inclusi oltre 400.000 piedi quadrati di nuovi contratti. Un aspetto notevole è un contratto a lungo termine per 104.000 piedi quadrati presso il Two Alliance Center nel Buckhead BBD di Atlanta con un nuovo cliente, che avrà inizio nel 2026. Questo contratto riempirà significativamente lo spazio lasciato vacante da un cliente nel terzo trimestre del 2024.
Il CEO Ted Klinck ha sottolineato che gli utenti degli uffici stanno privilegiando edifici di alta qualità con proprietari ben capitalizzati. Highwoods ha registrato un aumento del 37% nei nuovi contratti rispetto all'intero 2023, con la maggior parte di questi affitti prevista a beneficio dell'azienda a partire dalla metà del 2025. L'azienda rimane ottimista riguardo al slancio nel suo pipeline di leasing.
Highwoods Properties (NYSE:HIW) ha informado una fuerte actividad de arrendamiento de segunda generación, firmando 738,000 pies cuadrados de arrendamientos desde el 1 de julio de 2024, incluidos más de 400,000 pies cuadrados de nuevos arrendamientos. Un aspecto notable es un arrendamiento a largo plazo de 104,000 pies cuadrados en el Two Alliance Center en Buckhead BBD de Atlanta con un nuevo cliente, que comenzará en 2026. Este arrendamiento llenará significativamente el espacio desocupado por un cliente en el tercer trimestre de 2024.
El CEO Ted Klinck enfatizó que los usuarios de oficinas están favoreciendo edificios de alta calidad con propietarios bien capitalizados. Highwoods ha visto un aumento del 37% en nuevos acuerdos en comparación con todo 2023, y se espera que la mayoría de estos arrendamientos beneficien a la empresa a partir de mediados de 2025. La empresa se mantiene optimista sobre el impulso de su pipeline de arrendamiento.
하이우드 프로퍼티스(뉴욕증권거래소: HIW)는 2024년 7월 1일 이후 738,000 평방피트의 임대 계약을 체결한 강력한 2세대 임대 활동을 보고했습니다. 이에는 40만 평방피트 이상의 신규 임대가 포함됩니다. 주목할 만한 점은 애틀랜타의 벅헤드 BBD에 있는 투 얼라이언스 센터에서 10만 4천 평방피트의 장기 임대 계약을 체결한 것으로, 새로운 고객과의 계약이며 2026년에 시작될 예정입니다. 이 계약은 2024년 3분기 고객이 비운 공간을 의미 있게 보충할 것입니다.
CEO 테드 클링크는 사무실 사용자가 잘 자본화된 소유주와 고급 건물을 선호하고 있다고 강조했습니다. 하이우드는 2023년 전체에 비해 37% 증가한 신규 거래를 목격했으며, 이러한 임대 대부분은 2025년 중반 이후 회사에 혜택을 줄 것으로 예상됩니다. 회사는 임대 파이프라인의 모멘텀에 대해 낙관적입니다.
Highwoods Properties (NYSE:HIW) a rapporté une activité de location de seconde génération solide, ayant signé 738 000 pieds carrés de baux depuis le 1er juillet 2024, dont plus de 400 000 pieds carrés de nouveaux baux. Un point remarquable est un bail à long terme de 104 000 pieds carrés au Two Alliance Center dans le Buckhead BBD d'Atlanta avec un nouveau client, qui devrait commencer en 2026. Ce bail permettra de compenser de manière significative l'espace libéré par un client au troisième trimestre 2024.
Le PDG Ted Klinck a souligné que les utilisateurs de bureaux privilégient les bâtiments de haute qualité avec des propriétaires bien capitalisés. Highwoods a constaté une augmentation de 37 % des nouveaux contrats par rapport à l'ensemble de l'année 2023, la plupart de ces baux devant bénéficier à l'entreprise à partir de la mi-2025. L'entreprise reste optimiste quant à l'élan de son pipeline de locations.
Highwoods Properties (NYSE:HIW) hat eine starke Leasingaktivität der zweiten Generation gemeldet und seit dem 1. Juli 2024 738.000 Quadratfuß an Verträgen unterzeichnet, darunter mehr als 400.000 Quadratfuß an neuen Verträgen. Ein bemerkenswerter Höhepunkt ist ein langfristiger Vertrag über 104.000 Quadratfuß im Two Alliance Center im Buckhead BBD von Atlanta mit einem neuen Kunden, der 2026 beginnen soll. Dieser Vertrag wird erheblich den Raum ausfüllen, der im dritten Quartal 2024 von einem Kunden geräumt wurde.
CEO Ted Klinck betonte, dass Bürobeutzer hochwertige Gebäude mit gut kapitalisierten Vermietern bevorzugen. Highwoods hat einen 37% Anstieg bei neuen Deals im Vergleich zu 2023 verzeichnet, wobei die meisten dieser Verträge voraussichtlich ab Mitte 2025 zugunsten des Unternehmens wirken werden. Das Unternehmen bleibt optimistisch in Bezug auf die Dynamik seiner Leasingpipeline.
- 738,000 square feet of second-generation leases signed since July 1, 2024
- Over 400,000 square feet of new leases signed
- Long-term lease for 104,000 square feet at Two Alliance Center in Atlanta
- 37% increase in new deals compared to all of 2023
- Strong leasing pipeline momentum reported
- Benefits from new leases largely deferred until mid-2025 and beyond
- Significant customer vacancy at Two Alliance Center in Q3 2024
Insights
Highwoods Properties' leasing update reveals strong momentum in the office real estate sector, particularly for high-quality assets. The signing of 738,000 square feet of second-generation leases, including over 400,000 square feet of new leases, indicates robust demand. This is especially noteworthy given the challenges faced by the office market post-pandemic.
The 104,000 square foot lease at Two Alliance Center in Atlanta's Buckhead BBD is a significant win, demonstrating the company's ability to attract new tenants to premium locations. This lease will help mitigate the impact of a recent vacancy, showcasing effective asset management.
The
While the leasing update from Highwoods Properties is encouraging, it's important to consider the financial implications. The company's ability to secure 738,000 square feet of leases, with over half being new leases, suggests potential for revenue growth. However, the timing of these leases, with many not commencing until 2025 or later, means that immediate financial impact will be
Investors should focus on the company's occupancy rates and net operating income (NOI) in upcoming quarters. The backfilling of vacated space, such as at Two Alliance Center, is positive for maintaining steady cash flows. However, it's important to monitor any concessions or tenant improvement costs associated with these new leases, as these could impact short-term profitability.
The increased leasing activity compared to 2023 is a positive indicator, but it's essential to consider broader economic factors that could affect office demand and rental rates. Investors should also assess Highwoods' debt levels and interest coverage ratios to ensure the company can sustain its operations and dividend payments during this transitional period.
2nd Gen Leasing Activity Continues to be Strong
738,000 SF of Leases Signed to Date in Third Quarter
Includes over 400,000 SF of New Leases
RALEIGH, N.C., Sept. 09, 2024 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) announced it has signed 738,000 square feet of second generation leases since July 1, 2024, including over 400,000 square feet of new leases.
Included in the quarterly activity is a long-term lease for 104,000 square feet at Two Alliance Center in Atlanta’s Buckhead BBD with a new customer for Highwoods. The lease, which is expected to commence in 2026, will backfill a significant portion of a customer who vacated the building in the third quarter of 2024.
Ted Klinck, President and Chief Executive Officer, stated, “Leasing activity continues to be robust across our portfolio as office users are gravitating towards the highest quality buildings with the best capitalized landlords. This volume of work will largely benefit the Company starting in mid-2025 and thereafter. Thus far in 2024, we’ve signed
About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (“REIT”) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Highwoods is in the work-placemaking business. We believe that by creating environments and experiences where the best and brightest can achieve together what they cannot apart, we can deliver greater value to our customers, their teammates and, in turn, our stakeholders. 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 expected financial and operational results and the related assumptions underlying our expected results; 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 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.
Factors that could cause our actual results to differ materially from Highwoods’ current expectations include, among others, the following: the financial condition of our customers could deteriorate; our assumptions regarding potential losses related to customer financial difficulties 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 2023 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: | Hannah True |
| Manager of Finance and Corporate Strategy | |
| hannah.true@highwoods.com | |
| 919-872-4924 |
FAQ
How many square feet of leases has Highwoods Properties (HIW) signed in Q3 2024?
What significant lease did Highwoods Properties (HIW) secure at Two Alliance Center in Atlanta?
How does Highwoods Properties' (HIW) new deal volume in 2024 compare to 2023?
When will Highwoods Properties (HIW) start seeing benefits from the recent leasing activity?
