Highwoods Properties Inc. (HIW) filed Quarterly Report for the period ended 2009-09-30.
Highwoods Properties Inc. is a fully integrated self-administered real estate investment trust that provides leasing management development construction and other customer-related services for its properties and for third parties. The company owns or has an interest in office industrial retail and service center properties including development projects and apartment units. (Company Press Release) Highwoods Properties Inc. has a market cap of $1.93 billion; its shares were traded at around $27.23 with a P/E ratio of 9.8 and P/S ratio of 4.2. The dividend yield of Highwoods Properties Inc. stocks is 6.2%.
Highlight of Business Operations:
The Company classified income of $23.0 million and $17.3 million as discontinued operations in the nine months ended September 30, 2009 and the nine months ended September 30, 2008, respectively. These amounts relate to 1.2 million square feet of office and industrial properties and 13 rental residential units sold or held for sale during 2008 and the nine months ended September 30, 2009, and include net gains on the sale of these properties of $20.6 million and $11.9 million in the nine months ended September 30, 2009 and the nine months ended September 30, 2008, respectively.
Based on our total market capitalization of approximately $4.0 billion as of September 30, 2009 (at the September 30, 2009 per share stock price of $31.45 and assuming the redemption for shares of Common Stock of the approximate 4.0 million Common Units not owned by the Company), our mortgages and notes payable represented 37.3% of our total market capitalization.
Mortgages and notes payable as of September 30, 2009 was comprised of $724.2 million of secured indebtedness with a weighted average interest rate of 6.20% and $748.4 million of unsecured indebtedness with a weighted average interest rate of 5.63%. As of September 30, 2009, our outstanding mortgages and notes payable and financing obligations were secured by real estate assets with an aggregate undepreciated book value of $1.2 billion.
In August 2009, we obtained a $115.0 million, six and a half-year secured loan that bears interest at 6.875% and a $47.3 million, seven-year secured loan that bears interest at 7.5%.
As of September 30, 2009, our unconsolidated joint ventures had $813.3 million of total assets and $636.5 million of total liabilities as reflected in their financial statements. As of September 30, 2009, our weighted average equity interest based on the total assets of these unconsolidated joint ventures was 36.8%. During the nine months ended September 30, 2009, these unconsolidated joint ventures earned $7.4 million of total net income, of which our share, after appropriate purchase accounting and other adjustments, was $3.8 million.
In prior periods, we entered into certain interest rate hedging arrangements which were designated and are being accounted for as cash flow hedges. The effective portion of these arrangements, representing deferred interest expense, was $1.0 million as of September 30, 2009 and is included in AOCL. This deferred expense will be recognized as an addition to interest expense in the same periods during which interest expense on the hedged financings affects net income. We expect approximately $0.1 million will be recognized as a decrease to interest expense within the next 12 months.
HIW is in the portfolios of Chris Davis of Davis Selected Advisers, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
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