AFFO of $124.4M in 2026Q2 covered dividends 1.56x, and operating cash flow of $125.2M exceeded net income by $31.2M, though a sudden $48.7M capex spike introduces volatility in cash conversion.
Highwoods Properties, Inc. (HIW) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 386.24M | 367.31M | 403.58M | 393.56M | 421.78M | 414.56M | 358.16M | 365.8M | 358.63M | 352.53M | 305.81M | 288.88M | 266.91M | 256.44M | 193.42M | 195.4M | 190.54M | 189.12M | 157.82M | 161.66M | 145.53M | 154.13M | 172.58M | 153.25M | 201.49M | 247.56M | 256.4M | 232.95M | 263.43M | 130.19M | 71.32M |
| Operating CF Growth % | 40.14% | -8.99% | 2.55% | -6.69% | 1.74% | 15.75% | -2.09% | 2% | 1.73% | 15.28% | 5.86% | 8.23% | 4.08% | 32.58% | -1.01% | 2.55% | 0.75% | 19.83% | -2.38% | 11.09% | -5.58% | -10.69% | 12.61% | -23.94% | -18.61% | -3.45% | 10.07% | -11.57% | 102.34% | 82.55% | 65.09% |
| Operating CF / Revenue % | 46.23% | 45.57% | 48.87% | 47.19% | 50.88% | 53.98% | 48.6% | 49.7% | 49.81% | 50.17% | 45.94% | 47.77% | 43.87% | 46.05% | 37.48% | 40.47% | 41.12% | 41.65% | 34.23% | 36.99% | 34.91% | 37.53% | 37.14% | 36.31% | 44.36% | 45.79% | 45.27% | 39.83% | 51.23% | 47.43% | 51.71% |
| Net Income | 168.67M | 74K | 104.25M | 148.72M | 163.96M | 323.31M | 357.91M | 141.68M | 177.63M | 191.66M | 541.14M | 101.26M | 115.97M | 131.1M | 84.23M | 47.97M | 72.3M | 61.69M | 31.99M | 90.75M | 54.24M | 62.46M | 37.28M | 23.81M | 70.67M | 131.93M | 142.91M | 144.06M | 126.39M | 83.3M | 43.93M |
| Depreciation & Amortization | 307.58M | 294.95M | 299.05M | 305.56M | 287.57M | 259.25M | 239.05M | 254M | 228.01M | 226.66M | 218.14M | 216.04M | 196.47M | 183.06M | 158.68M | 143.15M | 136.16M | 116.82M | 112.3M | 109.55M | 103.78M | 110.85M | 115.84M | 111.86M | 108.42M | 124.11M | 122.52M | 115.17M | 94.3M | 49.79M | 24.01M |
| Stock-Based Compensation | 9.36M | 8.21M | 8M | 6.98M | 7.55M | 8.65M | 6.21M | 7.18M | 7.47M | 6.69M | 6.25M | 6.88M | 6.94M | 6.9M | 7.61M | 6.09M | 6.57M | 6.57M | 0 | 0 | 3.73M | 0 | 0 | 21.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -89.57M | 88.37M | -11.57M | -40.8M | -20.82M | -170.06M | 4.66M | 4.41M | 3.85M | 3.36M | 2.77M | 3.39M | 1.58M | -6.71M | 2.4M | -476K | 708K | 392K | 37.75M | -38.34M | -2.96M | -5.45M | 25.41M | 34.37M | 32.88M | -5.02M | 5.76M | 13.47M | 22.27M | 9.29M | 4.01M |
| Working Capital Changes | -14.43M | -24.3M | 3.86M | -19.93M | -16.47M | -6.59M | -42.45M | -7.26M | -27.33M | -30.82M | -36.88M | -28.97M | -17.02M | -3.11M | -34.29M | -5.8M | -9.8M | -3.37M | -24.22M | -285K | -11.91M | -13.73M | -5.95M | -19.86M | -10.48M | -3.45M | -14.78M | -39.75M | 20.47M | -12.18M | -634K |
| Cash from Investing | -462.02M | -448.77M | -302.44M | -175.96M | -614.8M | -287.68M | 110.68M | -607.41M | -306.75M | -256.22M | 203.89M | -654.16M | -328.18M | -356.6M | -238.81M | -215.48M | -78.16M | -61.82M | -134.34M | -150.7M | 64.73M | 200.93M | 48.19M | 65.51M | 195.59M | -139.65M | 286.21M | 160.03M | -1.04B | -524.28M | -486.87M |
| Acquisitions (Net) | 17.23M | -441.52M | -153.36M | -18.22M | -261.77M | -133.42M | -2.36M | -9.98M | -50.65M | -10.06M | 343K | 27.06M | -5.96M | -33.25M | 8.29M | 20.74M | 11.75M | 89.48M | 92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 729.95M | 0 | 26.35M | 0 | 0 |
| Purchase of Investments | 0 | -41.51M | 0 | -180.92M | -24K | -84K | -160.64M | -126.09M | -150.31M | -161.01M | -185.91M | -139.09M | 0 | 0 | 0 | -39.9M | -2.88M | -952K | -12.74M | 0 | 0 | 0 | 0 | -15.89M | -12.7M | 0 | -757.97M | -701.08M | -27.65M | -6.67M | -1.13M |
| Sale of Investments | 0 | 227.14M | 0 | 191.72M | 288K | 301K | 484.62M | 133.62M | 90.13M | 132.42M | 686.52M | 74.25M | 0 | 0 | 0 | 4.76M | 15M | 3.96M | 3.21M | 2.92M | 0 | 0 | 1.4M | 0 | 0 | 161.39M | 729.95M | 696.4M | 26.3M | 0 | 0 |
| Other Investing | -479.25M | 7.88M | -149.07M | 8.07M | -353.03M | -154.48M | -208.57M | -180.74M | -256.1M | -244.32M | 313.8M | -272.58M | -158.58M | 95.44M | 22.74M | -16.5M | 684K | -2.83M | 14.61M | 133.87M | 286.76M | 368.69M | 173.78M | 284.76M | 339.16M | 50.95M | 7.53M | 675.76M | -121.63M | -52.55M | -304.29M |
| Cash from Financing | 201.8M | 90.83M | -99.04M | -205.75M | 187.93M | -284.93M | -294.34M | 246.21M | -130.07M | -142.53M | -465.24M | 361.48M | 59.91M | 96.57M | 47.99M | 17.07M | -121.88M | -117.35M | -12.86M | -24.51M | -194.78M | -378.33M | -217.98M | -211.22M | -386.63M | -212.12M | -472.33M | -389.93M | 797.95M | 393.17M | 419.78M |
| Dividends Paid | -221.4M | -219.09M | -214.84M | -213.51M | -212.67M | -206.67M | -201.82M | -199.42M | -193.79M | -264.5M | -169.36M | -162.84M | -156.67M | -148.47M | -131.16M | -127.3M | -128.35M | -121.14M | -116.76M | -117.19M | -118.85M | -128.72M | -132.5M | -142.66M | -172.03M | -174.39M | -184.47M | -186.67M | -166.98M | -100.12M | -55.52M |
| Common Dividends | -274.64M | -216.73M | -212.35M | -211.02M | -210.18M | -204.18M | -199.33M | -196.94M | -191.3M | -262.01M | -166.86M | -160.34M | -154.16M | -145.96M | -128.65M | -122.75M | -121.64M | -114.43M | -100.27M | -103.72M | -101.78M | -101.48M | -101.64M | -111.8M | -141.18M | -142.89M | -151.89M | -154.09M | -136.89M | -88.4M | -55.52M |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K |
| Share Repurchases | -109K | -2.13M | -1.44M | -173K | -5.92M | -1.72M | -1.16M | -1.79M | -1.68M | -4.01M | -4.42M | -3.76M | -3.6M | -2.56M | -2.72M | 0 | 0 | 0 | -55.79M | -27.47M | -26.48M | -11.32M | -1.17M | -19.07M | -4.41M | -148.79M | -101.14M | -25.5M | 0 | 0 | -5K |
| Other Financing | 228.4M | -11.56M | -13.23M | -11.21M | -10.61M | -16.67M | -20.31M | -14.76M | -9.28M | -18.71M | -11.11M | -10.4M | -10.56M | 2.35M | -16.96M | -12.99M | -8.77M | -16.01M | -9.36M | -1.42M | 23K | -876K | -14.52M | 25.39M | -1.52M | -159K | -2.98M | -3.9M | 400K | 0 | 0 |
| Net Change in Cash | 126.02M | 9.37M | 2.11M | 5.46M | -5.09M | -158.05M | 174.5M | 4.6M | -78.19M | -46.22M | 44.45M | -3.8M | -1.35M | -3.6M | 2.6M | -3.02M | -9.49M | 9.94M | 10.62M | -13.55M | 15.48M | -23.27M | 2.79M | 7.55M | 10.44M | -104.2M | 70.28M | 3.05M | 21.3M | -924K | 4.23M |
| Exchange Rate Effect | 0 | 0 | 0 | -6.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 52.63M | 33.68M | 31.57M | 26.11M | 31.2M | 189.24M | 14.74M | 10.14M | 88.33M | 49.49M | 5.04M | 8.83M | 10.18M | 13.78M | 11.19M | 14.21M | 23.7M | 13.76M | 3.14M | 16.69M | 1.21M | 24.48M | 21.7M | 11.02M | 576K | 104.78M | 34.5M | 31.45M | 10.15M | 11.07M | 6.84M |
| Cash at End | 166.03M | 43.05M | 33.68M | 31.57M | 26.11M | 31.2M | 189.24M | 14.74M | 10.14M | 3.27M | 49.49M | 5.04M | 8.83M | 10.18M | 13.78M | 11.19M | 14.21M | 23.7M | 13.76M | 3.14M | 16.69M | 1.21M | 24.48M | 18.56M | 11.02M | 576K | 104.78M | 34.5M | 31.45M | 10.15M | 11.07M |
| Free Cash Flow | 374.97M | 166.56M | 403.58M | 216.95M | 421.51M | 414.56M | 355.8M | -58.42M | 307.98M | 350.69M | 195.56M | -119.75M | 103.27M | -162.36M | -76.43M | 10.83M | 87.82M | 37.64M | -73.6M | -125.83M | -76.5M | -13.63M | 45.59M | -50.1M | 70.61M | -104.42M | -166.84M | -278.11M | -680.01M | -334.87M | -110.13M |
| FCF Growth % | 2.99% | -58.73% | 86.02% | -48.53% | 1.68% | 16.52% | 708.98% | -118.97% | -12.18% | 79.33% | 263.3% | -215.96% | 163.61% | -112.43% | -805.73% | -87.67% | 133.33% | 151.14% | 41.51% | -64.47% | -461.3% | -129.9% | 190.98% | -170.96% | 167.63% | 37.42% | 40.01% | 59.1% | -103.07% | -204.08% | -26.29% |
| FCF / Revenue % | 44.88% | 20.66% | 48.87% | 26.01% | 50.85% | 53.98% | 48.28% | -7.94% | 42.77% | 49.9% | 29.38% | -19.8% | 16.97% | -29.16% | -14.81% | 2.24% | 18.95% | 8.29% | -15.97% | -28.79% | -18.36% | -3.32% | 9.81% | -11.87% | 15.55% | -19.31% | -29.46% | -47.54% | -132.25% | -122.01% | -79.84% |
Quick answers to the most common questions about buying HIW stock.
Highwoods Properties, Inc. (HIW) generated $367.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Highwoods Properties, Inc. (HIW) generated $166.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Highwoods Properties, Inc. (HIW) spent $200.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Highwoods Properties, Inc. (HIW) returned $219.1M to shareholders via cash dividends and spent $2.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Tenant retention and occupancy pressure
Metrics are mathematically derived from official filings.
AFFO Coverage Strengthens in Q2
In 2026Q2, AFFO of $124.4M covered dividends 1.56x, up from 1.89x in Q1, as reported in the cash flow data, indicating a stable payout cushion.
The dividend payout ratio based on AFFO improved to 0.64 in 2026Q2 from 0.50 in Q1, suggesting that the company's operating cash generation is more than sufficient to sustain the current dividend. However, the quarterly volatility in AFFO, with Q1 at $60.8M and Q2 at $124.4M, warrants monitoring for sustainability. The retained AFFO after dividends of approximately $68.7M in Q2 provides a buffer for capital recycling or debt reduction, but investors should watch for consistency.
Capex Surge Signals Reinvestment
Capital expenditures jumped to $48.7M in 2026Q2 from zero in prior quarters, as per the cash flow statement, indicating a shift toward portfolio reinvestment or development.
The sudden appearance of $48.7M in capex in 2026Q2, after several quarters of zero reported capex, suggests either a data reporting change or a strategic pivot to fund tenant improvements or development. This is a significant cash outflow that reduces FCF, but it may be necessary to maintain asset quality and occupancy. The negative capex in Q1 and Q4 2025 could indicate asset sales or refunds, but the positive figure in Q2 is more typical of a REIT investing in its portfolio.
Depreciation Gap Widens in Q2
FFO exceeded net income by $79.1M in 2026Q2, with FFO/NI at 1.33, as reported in the cash flow data, highlighting the substantial non-cash depreciation charge.
The gap between FFO and net income is a standard REIT distortion, but the magnitude in Q2 is notable, with FFO at $173.1M versus net income of $94.0M. This indicates that depreciation and other non-cash items are significantly impacting GAAP earnings, making FFO a more reliable measure of operating performance. The FFO/NI ratio of 1.33 in Q2 is lower than the 1.97 in Q1, suggesting a more normalized quarter, but the historical volatility (e.g., 7.19 in 2025Q3) underscores the need to focus on cash-based metrics.
Working Capital Fluctuations
Operating cash flow of $125.2M in 2026Q2 exceeded net income by $31.2M, as per the cash flow statement, suggesting favorable working capital movements.
The positive difference between OCF and net income in Q2 indicates that non-cash items like depreciation are being added back, but also that working capital changes are not a drag. However, the variability in OCF across quarters, from $46.3M in 2025Q1 to $125.2M in 2026Q2, may reflect timing of rent collections or lease termination fees. Investors should monitor tenant receivables for any buildup that could signal collection issues, though the data does not show a clear trend.
Dividends Funded by Operations
Dividends paid of $55.7M in 2026Q2 were fully covered by AFFO of $124.4M, as reported in the cash flow data, indicating no reliance on external funding for distributions.
The dividend coverage ratio based on AFFO is strong, with AFFO exceeding dividends by $68.7M in Q2. This suggests that the company is not dependent on ATM equity issuances or debt to fund its dividend, which is a positive sign for sustainability. However, the company's capital recycling program and development pipeline may require external financing, but the cash flow data does not show significant debt issuance in the quarter.
Capex and AFFO Volatility Risks
The sudden $48.7M capex in 2026Q2 and the absence of AFFO data in prior quarters, as per the cash flow statement, may obscure true recurring maintenance costs.
The reported capex pattern is unusual, with zero in most quarters and a spike in Q2, which could indicate that maintenance capex is being capitalized or deferred. If the $48.7M represents recurring tenant improvements and leasing commissions, then AFFO in prior quarters may have been overstated, and the true distributable cash flow could be lower. Investors should scrutinize the nature of this capex and whether it is maintenance or growth-oriented, as it directly impacts the sustainability of the dividend.