Highwoods Properties, Inc. (HIW) Monday has announced recent investment and financing transactions completed in the fourth quarter of the year 2024 and early 2025.
The company sold several non-core properties in Raleigh and Tampa through multiple transactions, generating a total of $166.4 million. Of this, $21.4 million was closed in the fourth quarter of 2024, with the remainder finalizing in early 2025. The sales included a 170,000-square-foot office building in North Raleigh and three buildings totaling 616,000 square feet in Tampa's Westshore submarket. These properties, with an 88% occupancy rate, were projected to yield $13.6 million in GAAP net operating income and $13.0 million in cash net operating income in 2025.
Additionally, in the fourth quarter of 2024, Highwoods acquired full ownership of the land beneath its Century Center assets in Atlanta for $50.6 million, consolidating control over the 12-building office park spanning 1.7 million square feet and 13 acres of developable land. The company had previously held the buildings under a long-term ground lease.
Further, Highwoods raised $51.3 million in net proceeds by selling 1.59 million shares of common stock at an average price of $32.71 per share.
President and CEO Ted Klinck emphasized that these transactions align with the company's strategy of divesting non-core assets to reinvest in higher-quality properties. He noted that the nearly $220 million raised strengthens Highwoods' financial position and provides capital for future expansion in 2025. Klinck also highlighted that acquiring the Century Center land enhances long-term ownership stability and flexibility.
HIW is currently trading at $29.68 or 1.89% higher on the NYSE.
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