Detailed financial statements for Highwoods Properties, Inc. (HIW): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Highwoods Properties, Inc., based in Raleigh, operates as an S&P MidCap 400 Index constituent. This publicly listed Real Estate Investment Trust (REIT), whose shares trade on the NYSE under the ticker HIW, focuses exclusively on office properties. Highwoods is a comprehensively integrated company, handling all aspects of its real estate portfolio from initial acquisition and development to leasing and day-to-day management.
Analysis Summary
Highwoods Properties, Inc. reported revenue of $806.1M in the most recent fiscal year, growing at a 5-year CAGR of 1.8%. Net income reached $159.6M, with a -14.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 67.2%, operating margin 25.8%, net margin 20.2%. Free cash flow grew at -14.1% CAGR over 5 years.
At the current price of $29.49, HIW trades at a P/E of 19.52 and an ROE of 6.71%. Market capitalisation stands at $3.3B.
Balance sheet quality for HIW: current ratio of 42.4, net debt of $3.61B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $166.6M represents 104% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $665.6M | $702.7M | $720.0M | $736.0M | $736.9M | $768.0M | $828.9M | $834.0M | $825.9M | $806.1M |
| Cost of Revenue | $231.1M | $236.9M | $242.4M | $248.5M | $231.8M | $236.4M | $259.8M | $268.8M | $272.2M | $261.4M |
| Gross Profit | $434.5M | $465.8M | $477.6M | $487.5M | $505.1M | $531.6M | $569.1M | $565.2M | $553.7M | $544.7M |
| Research & Development | $1 | $0 | $0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $38.2M | $39.6M | $40.0M | $44.1M | $41.0M | $40.6M | $42.3M | $42.9M | $41.9M | $40.3M |
| Operating Expenses | $258.3M | $267.5M | $270.0M | $298.6M | $282.6M | $299.8M | $329.9M | $342.3M | $340.9M | $335.3M |
| Operating Income | $176.3M | $198.4M | $207.7M | $188.9M | $222.5M | $231.8M | $239.2M | $222.9M | $212.7M | $209.5M |
| EBITDA | $342.7M | $419.5M | $407.6M | $477.8M | $680.5M | $668.4M | $557.0M | $587.5M | $550.5M | $610.0M |
| Interest Expense | $76.6M | $69.1M | $71.4M | $81.6M | $81.0M | $85.9M | $105.4M | $136.7M | $147.2M | $152.4M |
| Pre-tax Income | $122.5M | $191.7M | $177.6M | $141.7M | $357.9M | $323.3M | $164.0M | $151.3M | $104.3M | $162.7M |
| Income Tax | -$317.3M | $84.0M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Income | $524.3M | $185.4M | $171.8M | $136.9M | $347.4M | $313.3M | $159.1M | $148.7M | $102.2M | $159.6M |
| EPS | $5.30 | $1.78 | $1.66 | $0.52 | $3.32 | $2.98 | $1.49 | $1.39 | $0.94 | $1.45 |
| EPS (Diluted) | $5.30 | $1.78 | $1.62 | $0.51 | $3.32 | $2.98 | $1.49 | $1.39 | $0.94 | $1.45 |
| Shares Outstanding (Diluted) | $101.4M | $105.6M | $106.3M | $106.4M | $106.7M | $107.1M | $105.1M | $107.8M | $108.3M | $110.6M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $201.8M | $203.4M | $214.0M | $216.4M |
| Gross Profit | $135.8M | $136.6M | $142.9M | $146.2M |
| Operating Income | $53.0M | $53.1M | $51.9M | $57.3M |
| EBITDA | $126.1M | $144.3M | $152.6M | $136.3M |
| Net Income | $13.5M | $29.2M | $31.9M | $94.0M |
| EPS | $0.12 | $0.26 | $0.29 | $0.85 |
| EPS (Diluted) | $0.12 | $0.26 | $0.29 | $0.85 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $49.5M | $3.3M | $3.8M | $9.5M | $109.3M | $23.2M | $21.4M | $25.1M | $22.4M | $27.4M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $199.0M | $231.5M | $251.6M | $258.0M | $283.2M | $283.6M | $319.2M | $343.5M | $337.1M | $358.5M |
| Inventory | $29.1M | $85.1M | $6.4M | 0 | 0 | 0 | 0 | 0 | $55.4M | 0 |
| Total Current Assets | $318.1M | $348.5M | $290.6M | $293.6M | $546.7M | $393.3M | $410.8M | $440.2M | $499.0M | $373.6M |
| Property, Plant & Equipment | $3.93B | $3.96B | $4.04B | $4.43B | $4.29B | $4.82B | $4.90B | 0 | 0 | 0 |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $244.3M |
| Total Assets | $4.56B | $4.62B | $4.68B | $5.14B | $5.21B | $5.70B | $6.06B | $6.00B | $6.03B | $6.27B |
| Accounts Payable | $313.9M | $228.2M | $218.9M | $252.5M | $239.4M | $263.3M | $273.2M | $187.3M | $204.2M | 0 |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $6.9M | $9.2M | $8.8M |
| Total Current Liabilities | $313.9M | $228.2M | $218.9M | $252.5M | $239.4M | $295.0M | $273.2M | $193.8M | $304.6M | $8.8M |
| Long-term Debt | $1.95B | $2.01B | $2.09B | $2.54B | $2.47B | $2.79B | $3.20B | $3.21B | $3.29B | $3.59B |
| Total Liabilities | $2.26B | $2.24B | $2.30B | $2.83B | $2.74B | $3.08B | $3.50B | $3.52B | $3.60B | $3.84B |
| Retained Earnings | -$749.4M | -$747.3M | -$769.3M | 0 | 0 | -$579.6M | 0 | -$698.0M | -$810.6M | -$870.1M |
| Total Equity | $2.14B | $2.22B | $2.25B | $2.15B | $2.34B | $2.48B | $2.48B | $2.43B | $2.36B | $2.38B |
| Total Debt | $1.95B | $2.01B | $2.09B | $2.54B | $2.47B | $2.79B | $3.20B | $3.21B | $3.29B | $3.64B |
| Net Debt | $1.90B | $2.01B | $2.08B | $2.53B | $2.36B | $2.77B | $3.18B | $3.19B | $3.27B | $3.61B |
| Working Capital | $4.2M | $120.3M | $71.7M | $41.1M | $307.3M | $98.4M | $137.6M | $246.4M | $194.4M | $364.8M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $26.3M | $27.4M | $32.4M | $145.4M |
| Total Assets | $6.14B | $6.27B | $6.60B | $6.47B |
| Total Liabilities | $3.69B | $3.84B | $3.98B | $3.88B |
| Total Equity | $2.38B | $2.38B | $2.37B | $2.39B |
| Total Debt | $3.40B | $3.64B | $3.70B | $3.52B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $541.1M | $191.7M | $177.6M | $141.7M | $357.9M | $323.3M | $164.0M | $148.7M | $104.3M | $74,000 |
| Depreciation & Amortization | $218.1M | $226.7M | $228.0M | $254.0M | $239.0M | $259.3M | $287.6M | $305.6M | $299.0M | $295.0M |
| Stock-based Compensation | $6.3M | $6.7M | $7.5M | $7.2M | $6.2M | $8.6M | $7.6M | $7.0M | $8.0M | $8.2M |
| Change in Working Capital | -$36.9M | -$30.8M | -$27.3M | -$7.3M | -$42.5M | -$6.6M | -$16.5M | -$19.9M | $3.9M | -$24.3M |
| Operating Cash Flow | $305.8M | $352.5M | $358.6M | $365.8M | $358.2M | $414.6M | $421.8M | $393.6M | $403.6M | $367.3M |
| Capital Expenditure | -$110.2M | -$1.8M | -$50.6M | -$424.2M | -$2.4M | 0 | -$264,000 | -$176.6M | 0 | -$200.8M |
| Acquisitions | $343,000 | -$10.1M | -$50.6M | -$10.0M | -$2.4M | -$133.4M | -$261.8M | -$18.2M | -$153.4M | -$441.5M |
| Stock Repurchased | -$4.4M | -$4.0M | -$1.7M | -$1.8M | -$1.2M | -$1.7M | -$5.9M | -$173,000 | -$1.4M | -$2.1M |
| Dividends Paid | -$169.4M | -$264.5M | -$193.8M | -$199.4M | -$201.8M | -$206.7M | -$212.7M | -$213.5M | -$214.8M | -$219.1M |
| Free Cash Flow | $195.6M | $350.7M | $308.0M | -$58.4M | $355.8M | $414.6M | $421.5M | $217.0M | $403.6M | $166.6M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $96.7M | $101.5M | $62.8M | $125.2M |
| Capital Expenditure | 0 | -$59.9M | 0 | $48.7M |
| Free Cash Flow | $96.7M | $41.6M | $62.8M | $173.9M |
| Dividends Paid | -$54.6M | -$55.5M | -$55.5M | -$55.7M |
| Stock-based Compensation | $1.2M | $763,000 | $6.5M | $950,000 |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +5.6% | +2.5% | +2.2% | +0.1% | +4.2% | +7.9% | +0.6% | -1.0% | -2.4% | |
| Net Income Growth (YoY) | -64.6% | -7.3% | -20.3% | +153.7% | -9.8% | -49.2% | -6.5% | -31.2% | +56.1% | |
| EPS Growth (YoY) | -66.4% | -6.7% | -68.7% | +538.5% | -10.2% | -50.0% | -6.7% | -32.4% | +54.3% | |
| Shares Change (YoY) | +4.1% | +0.6% | +0.2% | +0.3% | +0.3% | -1.8% | +2.5% | +0.5% | +2.1% | |
| FCF Growth (YoY) | +79.3% | -12.2% | -119.0% | +709.0% | +16.5% | +1.7% | -48.5% | +86.0% | -58.7% | |
| Gross Margin | 65.3% | 66.3% | 66.3% | 66.2% | 68.5% | 69.2% | 68.7% | 67.8% | 67.0% | 67.6% |
| Operating Margin | 26.5% | 28.2% | 28.8% | 25.7% | 30.2% | 30.2% | 28.9% | 26.7% | 25.8% | 26.0% |
| EBITDA Margin | 51.5% | 59.7% | 56.6% | 64.9% | 92.3% | 87.0% | 67.2% | 70.4% | 66.7% | 75.7% |
| Net Margin | 78.8% | 26.4% | 23.9% | 18.6% | 47.1% | 40.8% | 19.2% | 17.8% | 12.4% | 19.8% |
| FCF Margin | 29.4% | 49.9% | 42.8% | -7.9% | 48.3% | 54.0% | 50.9% | 26.0% | 48.9% | 20.7% |
| Effective Tax Rate | -258.9% | 43.8% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $1.93 | $3.32 | $2.90 | $-0.55 | $3.33 | $3.87 | $4.01 | $2.01 | $3.73 | $1.51 |
| Dividends Per Share | $1.67 | $2.50 | $1.82 | $1.87 | $1.89 | $1.93 | $2.02 | $1.98 | $1.98 | $1.98 |
| Shares Outstanding (Basic) | $98.4M | $102.7M | $103.4M | $103.7M | $103.9M | $104.2M | $105.1M | $105.5M | $106.2M | $108.5M |
What to look at in Reit companies
- FFO / Share (Positive growth) — REIT 'true EPS' — net income + depreciation.
- Dividend coverage (FFO/div) (>=1.1x) — FFO must cover the dividend with margin.
- Net Debt / EBITDA (<=6x) — NAREIT benchmark. Normalises leverage by cash generation.
- Debt / Assets (40-60%) — REITs use a lot of debt by design. >65% fragile when rates rise.
- FFO Payout (proxy) (<80%) — Dividends / Operating CF. Quality REITs retain >20% to grow.
- P/FFO (15-20x) — REIT P/E equivalent. Healthy typical range.
Profitability
| Return on Equity | 6.71% |
| Return on Invested Capital | 24.78% |
| Return on Assets | 2.54% |
| Gross Margin | 67.21% |
| Operating Margin | 25.76% |
| Net Margin | 20.19% |
Financial Health
| Debt / Equity | 1.47 |
| Current Ratio | 1.78 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 9.62 | 28.60 | 23.31 | 94.06 | 11.94 | 14.96 | 18.78 | 16.52 | 32.53 | 17.81 |
| P/B | 2.35 | 2.35 | 1.78 | 2.36 | 1.76 | 1.88 | 1.19 | 1.00 | 1.37 | 1.18 |
| P/S | 7.54 | 7.44 | 5.56 | 6.89 | 5.59 | 6.05 | 3.55 | 2.91 | 3.93 | 3.47 |
| Gross Margin | 65.3% | 66.3% | 66.3% | 66.2% | 68.5% | 69.2% | 68.7% | 67.8% | 67.0% | 67.6% |
| Operating Margin | 26.5% | 28.2% | 28.8% | 25.7% | 30.2% | 30.2% | 28.9% | 26.7% | 25.8% | 26.0% |
| Net Margin | 78.8% | 26.4% | 23.9% | 18.6% | 47.1% | 40.8% | 19.2% | 17.8% | 12.4% | 19.8% |
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Explore sector: Real Estate · REIT - Office
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