Capital intensity remains a significant drag on liquidity, with 2025Q4 capital expenditures of $59.9M reducing operating cash flow to a tighter $41.6M in free cash flow.
| 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 | 377.55M | 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 % | 22.35% | -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 % | 46.06% | 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 | 93.48M | 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 | 301.09M | 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 | 9.69M | 8.21M | 8M | 0 | 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 | -55.64M | 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 | 26.4M | -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 | -755.44M | -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) | 155.06M | 0 | -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 | 0 | 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 | 0 | 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 | -910.5M | -448.77M | -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 | 391.01M | 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 | -219.61M | -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 | -162.91M | -216.73M | -212.35M | 0 | -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) | 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 | 1000K |
| Share Repurchases | -2.12M | -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 | 333.48M | -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 | 13.12M | 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 | 0 | 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 | 0 | 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 | 317.62M | 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 % | -15.86% | -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 % | 38.75% | 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% |
Tenant improvement capital intensity
As reported in financial statements, the dividend payout ratio relative to AFFO reached 0.53 in 2025Q4, indicating that while the dividend remains covered, the narrowing buffer between recurring cash flow and shareholder distributions warrants close monitoring as tenant improvement costs continue to pressure the company's liquidity profile.
The reliance on AFFO as the primary metric for dividend sustainability reveals a tightening margin, particularly when accounting for the significant capital required to retain tenants in the current office environment. Investors should interpret the 2025Q4 AFFO of $44.3M against the $55.5M dividend payment as a signal that the company is utilizing a substantial portion of its free cash flow to maintain current payout levels.
Based on the provided financial data, the divergence between GAAP Net Income and FFO is significant, with FFO/NI ratios fluctuating wildly from -33.37 in 2024Q4 to 7.19 in 2025Q3, suggesting that non-cash depreciation and amortization charges heavily distort the perceived earnings power of the REIT's portfolio.
The extreme variance in the FFO to Net Income ratio implies that headline earnings are not a reliable proxy for operational performance. Analysts should view these fluctuations as evidence that accounting adjustments, rather than core property-level cash generation, are driving the reported bottom-line volatility, necessitating a focus on cash-based metrics like AFFO.
According to recent SEC filings, Highwoods Properties incurred $59.9M in capital expenditures during 2025Q4, a substantial outflow that significantly reduced the reported $101.5M in operating cash flow to a much tighter $41.6M in free cash flow, highlighting the heavy burden of maintaining aging office assets.
The high level of capital expenditure suggests that the company is forced to reinvest heavily to keep its BBD assets competitive, which may limit the capital available for new development or debt reduction. This trend appears to be a structural drag on cash flow that could persist as long as the office market remains tenant-favorable and concessions remain elevated.
As indicated by the quarterly data, the conversion of operating cash flow into FFO is inconsistent, with OCF figures ranging from $46.3M to $130.0M over the last ten quarters, suggesting that working capital fluctuations and timing differences in rent collections may be obscuring the true cash-generating capacity of the portfolio.
The lack of stability in operating cash flow suggests that the company's core leasing operations are subject to significant timing variances, potentially linked to lease renewals or the timing of property-level expense payments. Investors should monitor whether this volatility is a temporary artifact of the current leasing cycle or a more permanent feature of the company's cash collection process.
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 $0.0M 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.