Revenue growth reached 6.8% in 2026Q1, yet NOI margins remain constrained near 66.8%, reflecting the ongoing difficulty of managing property-level expenses in a volatile office market.
| 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 |
|---|
| Revenue | 819.76M | 806.11M | 825.86M | 834M | 828.93M | 768.01M | 736.9M | 735.98M | 720.03M | 702.74M | 665.63M | 604.67M | 608.47M | 556.81M | 516.1M | 482.85M | 463.32M | 454.03M | 461M | 437.06M | 416.8M | 410.7M | 464.72M | 422.06M | 454.22M | 540.62M | 566.43M | 584.93M | 514.19M | 274.47M | 137.93M |
| Revenue Growth % | 0.43% | -2.39% | -0.98% | 0.61% | 7.93% | 4.22% | 0.13% | 2.21% | 2.46% | 5.57% | 10.08% | -0.62% | 9.28% | 7.89% | 6.89% | 4.22% | 2.05% | -1.51% | 5.48% | 4.86% | 1.48% | -11.62% | 10.11% | -7.08% | -15.98% | -4.56% | -3.16% | 13.76% | 87.34% | 99% | 87.65% |
| Property Operating Expenses | 267.46M | 261.37M | 272.17M | 268.78M | 259.81M | 236.44M | 231.82M | 248.51M | 242.41M | 236.89M | 231.09M | 215.94M | 225.5M | 203.34M | 187.43M | 176.15M | 164.39M | 164.25M | 165.73M | 157.26M | 153.59M | 17.81M | 168.43M | 147.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 552.31M | 544.74M | 553.69M | 565.22M | 569.12M | 531.57M | 505.07M | 487.47M | 477.62M | 465.85M | 434.55M | 388.73M | 382.96M | 353.47M | 328.67M | 306.7M | 298.93M | 289.77M | 295.27M | 279.8M | 263.21M | 392.89M | 296.29M | 274.68M | 454.22M | 540.62M | 566.43M | 584.93M | 514.19M | 274.47M | 137.93M |
| NOI Margin % | 67.37% | 67.58% | 67.04% | 67.77% | 68.66% | 69.21% | 68.54% | 66.23% | 66.33% | 66.29% | 65.28% | 64.29% | 62.94% | 63.48% | 63.68% | 63.52% | 64.52% | 63.82% | 64.05% | 64.02% | 63.15% | 95.66% | 63.76% | 65.08% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Operating Expenses | 342.37M | 335.26M | 340.95M | 342.27M | 329.88M | 299.81M | 282.62M | 298.57M | 269.96M | 267.48M | 258.29M | 239.56M | 232.25M | 214.15M | 193.69M | 178.75M | 168.74M | 167.73M | 164.81M | 321.8M | 308.44M | 302.07M | 343.88M | 301.42M | 297.33M | 276.01M | 279.21M | 286.42M | 246.03M | 124.28M | 57.41M |
| G&A Expenses | 41.28M | 40.31M | 41.9M | 42.86M | 42.27M | 40.55M | 41.03M | 44.07M | 40.01M | 39.65M | 38.15M | 37.64M | 36.22M | 37.19M | 37.38M | 35.73M | 32.95M | 36.68M | 38.04M | 41.57M | 37.31M | 33.06M | 41.76M | 24.82M | 24.58M | 21.4M | 21.86M | 22.34M | 20.78M | 10.22M | 5.67M |
| EBITDA | 511.02M | 504.43M | 511.79M | 522.36M | 526.86M | 491.02M | 464.04M | 443.4M | 723.62M | 707.42M | 671.26M | 365.21M | 347.18M | 236.26M | 204.89M | 182.49M | 266.35M | 151.99M | 257.23M | 224.81M | 212.14M | 219.48M | 236.68M | 232.5M | 265.31M | 388.71M | 409.74M | 413.68M | 362.46M | 199.98M | 104.52M |
| EBITDA Margin % | 62.34% | 62.58% | 61.97% | 62.63% | 63.56% | 63.93% | 62.97% | 60.25% | 100.5% | 100.67% | 100.85% | 60.4% | 57.06% | 42.43% | 39.7% | 37.79% | 57.49% | 33.48% | 55.8% | 51.44% | 50.9% | 53.44% | 50.93% | 55.09% | 58.41% | 71.9% | 72.34% | 70.72% | 70.49% | 72.86% | 75.78% |
| Depreciation & Amortization | 301.09M | 294.95M | 299.05M | 299.41M | 287.61M | 259.25M | 241.59M | 254.5M | 515.96M | 509.05M | 495.01M | 216.04M | 196.47M | 183.06M | 158.68M | 143.15M | 136.16M | 116.82M | 126.77M | 109.55M | 103.78M | 110.85M | 115.84M | 111.86M | 108.42M | 124.11M | 122.52M | 115.17M | 94.3M | 49.79M | 24.01M |
| D&A / Revenue % | 36.73% | 36.59% | 36.21% | 35.9% | 34.7% | 33.76% | 32.78% | 34.58% | 71.66% | 72.44% | 74.37% | 35.73% | 32.29% | 32.88% | 30.75% | 29.65% | 29.39% | 25.73% | 27.5% | 25.06% | 24.9% | 26.99% | 24.93% | 26.5% | 23.87% | 22.96% | 21.63% | 19.69% | 18.34% | 18.14% | 17.4% |
| Operating Income | 209.94M | 209.48M | 212.74M | 222.95M | 239.25M | 231.76M | 222.46M | 188.9M | 207.66M | 198.37M | 176.26M | 149.17M | 150.72M | 53.21M | 46.21M | 39.35M | 130.19M | 35.17M | 130.46M | 115.26M | 108.36M | 108.63M | 120.84M | 120.64M | 156.89M | 264.61M | 287.22M | 298.51M | 268.16M | 150.19M | 80.52M |
| Operating Margin % | 25.61% | 25.99% | 25.76% | 26.73% | 28.86% | 30.18% | 30.19% | 25.67% | 28.84% | 28.23% | 26.48% | 24.67% | 24.77% | 9.56% | 8.95% | 8.15% | 28.1% | 7.75% | 28.3% | 26.37% | 26% | 26.45% | 26% | 28.58% | 34.54% | 48.95% | 50.71% | 51.03% | 52.15% | 54.72% | 58.38% |
| Interest Expense | 4M | 152.43M | 147.2M | 136.71M | 105.39M | 85.85M | 80.96M | 81.65M | 71.42M | 69.11M | 76.65M | 86.05M | 85.13M | 92.7M | 96.11M | 96M | 93.37M | 86.87M | 98.49M | 100.34M | 0 | 591K | 120.03M | 114.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Coverage | - | 2.07x | 1.71x | 2.11x | 2.56x | 4.77x | 5.42x | 2.74x | 3.49x | 3.77x | 2.60x | 1.99x | 1.73x | 1.45x | 1.42x | 1.32x | 1.68x | 0.40x | 1.28x | 1.13x | - | 179.48x | 2.83x | 3.33x | - | - | - | - | - | - | - |
| Non-Operating Income | -20.45M | -105.61M | -38.71M | -65.09M | -30.1M | -177.4M | -216.42M | -34.43M | -41.39M | -62.4M | -22.94M | -17.32M | -12.85M | -13.02M | -11.86M | -14.97M | -26.85M | 84.49M | 4.74M | -57.82M | -247K | 0 | -219.26M | -260.14M | -587.82M | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 96.02M | 162.65M | 104.25M | 151.33M | 163.96M | 323.31M | 357.91M | 141.68M | 177.63M | 191.66M | 122.55M | 85.52M | 115.59M | 62.72M | 50.72M | 44.5M | -485K | -11K | 31.99M | 90.75M | 53.74M | 8.06M | 41.58M | 55.7M | 164.96M | 280.78M | 291.88M | 0 | 0 | 0 | 0 |
| Pretax Margin % | 11.71% | 20.18% | 12.62% | 18.15% | 19.78% | 42.1% | 48.57% | 19.25% | 24.67% | 27.27% | 18.41% | 14.14% | 19% | 11.26% | 9.83% | 9.22% | -0.1% | -0% | 6.94% | 20.76% | 12.89% | 1.96% | 8.95% | 13.2% | 36.32% | 51.94% | 51.53% | 0% | 0% | 0% | 0% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 83.98M | -317.31M | 79.57M | 92.3M | 32.23M | 72.27M | 100.25M | 61.69M | 83.2M | 98.47M | 72.5M | 65.78M | 49.82M | 95.85M | 82.32M | 81.65M | 133.4M | 153.73M | 160.42M | 142.51M | 78.52M | 41.2M |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 43.82% | -258.93% | 93.04% | 79.86% | 51.39% | 142.5% | 225.28% | -12720.41% | -756409.09% | 307.79% | 79.89% | 122.39% | 618% | 230.53% | 147.8% | 49.5% | 47.51% | 52.67% | - | - | - | - |
| Net Income | 93.48M | 159.61M | 102.25M | 148.72M | 159.06M | 313.28M | 347.4M | 136.92M | 171.84M | 185.37M | 524.29M | 97.08M | 110.96M | 125.46M | 79.59M | 45.13M | 68.5M | 58.49M | 31.99M | 90.75M | 53.74M | 62.46M | 41.58M | 55.7M | 93.46M | 131.21M | 133.49M | 138.09M | 125.65M | 71.68M | 39.32M |
| Net Margin % | 11.4% | 19.8% | 12.38% | 17.83% | 19.19% | 40.79% | 47.14% | 18.6% | 23.86% | 26.38% | 78.77% | 16.05% | 18.24% | 22.53% | 15.42% | 9.35% | 14.78% | 12.88% | 6.94% | 20.76% | 12.89% | 15.21% | 8.95% | 13.2% | 20.58% | 24.27% | 23.57% | 23.61% | 24.44% | 26.12% | 28.51% |
| Net Income Growth % | -46.16% | 56.1% | -31.25% | -6.5% | -49.23% | -9.82% | 153.73% | -20.32% | -7.3% | -64.64% | 440.07% | -12.51% | -11.55% | 57.62% | 76.39% | -34.12% | 17.12% | 82.81% | -64.75% | 68.85% | -13.95% | 50.22% | -25.35% | -40.41% | -28.77% | -1.7% | -3.34% | 9.9% | 75.3% | 82.3% | 70.22% |
| Funds From Operations (FFO) | 394.56M | 454.57M | 401.29M | 448.13M | 446.67M | 572.53M | 588.99M | 391.42M | 687.8M | 694.42M | 1.02B | 313.12M | 307.43M | 308.51M | 238.28M | 188.27M | 204.66M | 175.31M | 158.76M | 200.29M | 157.52M | 173.31M | 157.41M | 167.55M | 201.88M | 255.32M | 256M | 253.26M | 219.95M | 121.47M | 63.33M |
| FFO Margin % | 48.13% | 56.39% | 48.59% | 53.73% | 53.89% | 74.55% | 79.93% | 53.18% | 95.52% | 98.82% | 153.13% | 51.78% | 50.53% | 55.41% | 46.17% | 38.99% | 44.17% | 38.61% | 34.44% | 45.83% | 37.79% | 42.2% | 33.87% | 39.7% | 44.45% | 47.23% | 45.2% | 43.3% | 42.78% | 44.26% | 45.91% |
| FFO Growth % | -0.82% | 13.28% | -10.45% | 0.33% | -21.98% | -2.79% | 50.47% | -43.09% | -0.95% | -31.87% | 225.53% | 1.85% | -0.35% | 29.48% | 26.56% | -8.01% | 16.74% | 10.42% | -20.74% | 27.15% | -9.11% | 10.1% | -6.05% | -17% | -20.93% | -0.27% | 1.08% | 15.14% | 81.08% | 91.81% | 76.89% |
| FFO per Share | 3.52 | 4.11 | 3.70 | 4.16 | 4.25 | 5.35 | 5.52 | 3.68 | 6.47 | 6.58 | 10.05 | 3.21 | 3.28 | 3.47 | 2.99 | 2.47 | 2.71 | 2.43 | 2.68 | 3.25 | 2.57 | 3.23 | 2.94 | 3.12 | 3.82 | 4.70 | 4.32 | 4.11 | 3.99 | 3.10 | 2.43 |
| FFO Payout Ratio % | 41.29% | 47.68% | 52.92% | 47.64% | 47.06% | 35.66% | 33.84% | 50.31% | 27.81% | 37.73% | 16.37% | 51.21% | 50.15% | 47.31% | 53.99% | 65.2% | 59.44% | 65.27% | 63.16% | 51.78% | 64.62% | 58.56% | 64.57% | 66.73% | 69.93% | 55.96% | 59.33% | 60.84% | 62.24% | 72.77% | 87.67% |
| EPS (Diluted) | 0.83 | 1.45 | 0.94 | 1.39 | 1.49 | 2.98 | 3.32 | 0.51 | 1.62 | 1.78 | 5.30 | 1.00 | 1.19 | 1.44 | 1.02 | 0.54 | 0.86 | 0.76 | 0.37 | 1.31 | 0.62 | 0.58 | 0.20 | 0.22 | 0.93 | 1.46 | 1.50 | 1.71 | 1.74 | 1.50 | 1.51 |
| EPS Growth % | -47.54% | 54.26% | -32.37% | -6.71% | -50% | -10.24% | 550.98% | -68.52% | -8.99% | -66.42% | 430% | -15.97% | -17.36% | 41.18% | 88.89% | -37.21% | 13.16% | 105.41% | -71.76% | 111.29% | 6.9% | 190% | -9.09% | -76.34% | -36.3% | -2.67% | -12.28% | -1.72% | 16% | -0.66% | 2.03% |
| EPS (Basic) | - | 1.45 | 0.94 | 1.39 | 1.49 | 2.98 | 3.32 | 0.52 | 1.66 | 1.78 | 5.30 | 1.00 | 1.20 | 1.44 | 1.02 | 0.54 | 0.86 | 0.76 | 0.37 | 1.33 | 0.64 | 0.58 | 0.20 | 0.22 | 0.93 | 1.47 | 1.50 | 1.72 | 1.74 | 1.51 | 1.51 |
| Diluted Shares Outstanding | 112.06M | 110.57M | 108.32M | 107.78M | 105.12M | 107.06M | 106.71M | 106.44M | 106.27M | 105.59M | 101.4M | 97.41M | 93.8M | 88.84M | 79.68M | 76.19M | 75.58M | 72.08M | 59.32M | 61.55M | 61.36M | 53.73M | 53.63M | 53.62M | 52.9M | 54.32M | 59.22M | 61.7M | 55.08M | 39.16M | 26.11M |
Office demand cyclicality
As reported in financial statements, Highwoods Properties experienced a revenue increase to $214.0M in 2026Q1, representing a 6.8% growth rate, though this follows a period of inconsistent performance where quarterly revenue fluctuated between $200M and $214M over the last ten quarters, suggesting a lack of sustained organic momentum.
The recent revenue uptick appears to be a departure from the stagnant or slightly negative growth observed throughout 2024 and 2025. Investors should monitor whether this reflects genuine leasing velocity in BBD sub-markets or if it is merely a temporary benefit from lease commencement timing.
Based on the provided income statement data, Highwoods Properties maintained a relatively stable NOI margin, hovering near 66.8% in 2026Q1, which suggests that the company has successfully managed property-level operating expenses despite the broader inflationary environment impacting the commercial real estate sector over the last two years.
While the 66.8% margin indicates operational discipline, the slight compression from the 68.5% peak in 2024Q2 warrants further investigation into rising property taxes and insurance costs. The ability to maintain these margins suggests that the company's modified gross lease structures are effectively passing through costs to tenants.
According to recent SEC filings, FFO per share has exhibited significant volatility, swinging from a high of $1.54 in 2025Q1 to a low of $0.56 in 2024Q4, which complicates the assessment of dividend safety and long-term earnings power for shareholders relying on consistent cash flow distributions.
The erratic FFO trajectory suggests that non-recurring items or accounting adjustments may be distorting the headline figures. Analysts should focus on the underlying cash flow generation rather than the headline FFO, as the current fluctuations may not accurately reflect the portfolio's true recurring earnings capacity.
As indicated by the limited AFFO data, the recurring capital expenditures and tenant improvement costs appear to be a significant drag on cash availability, with the 2025Q4 AFFO of $44.3M representing a substantial discount to the reported FFO of $104.2M for the same period.
This wide gap between FFO and AFFO implies that the company is reinvesting a large portion of its earnings back into the portfolio to retain tenants. Investors should be cautious, as this high capital intensity may limit the company's ability to fund future growth or sustain dividends without external financing.
Quick answers to the most common questions about buying HIW stock.
For fiscal year 2025, Highwoods Properties, Inc. (HIW) reported total revenue of $806.1M. This represents a 484.5% increase compared to $137.9M in 1996.
Highwoods Properties, Inc. (HIW) is profitable, generating $159.6M in net income for the fiscal year ending 2025 with a net profit margin of 19.8%.
Highwoods Properties, Inc. (HIW) reported an operating income of $209.5M, resulting in an operating profit margin of 26.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Highwoods Properties, Inc. (HIW) generated $544.7M in gross profit for the year, representing a gross profit margin of 67.6%. This demonstrates the company's core pricing power and production efficiency.