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Highwoods Properties Inc. Reports Operating Results (10-Q)

October 30, 2012 | About:
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10qk

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Highwoods Properties Inc. (HIW) filed Quarterly Report for the period ended 2012-09-30.

Highwoods Properties Inc has a market cap of $2.4 billion; its shares were traded at around $31.58 with a P/E ratio of 11.5 and P/S ratio of 5. The dividend yield of Highwoods Properties Inc stocks is 5.4%.
This is the annual revenues and earnings per share of HIW over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of HIW.


Highlight of Business Operations:

Rental and other revenues from continuing operations were $10.9 million, or 9.3%, higher in the third quarter of 2012 as compared to 2011 primarily due to recent acquisitions, which accounted for $11.8 million of the increase. In addition, same property revenues were $0.6 million higher in the third quarter of 2012 as compared to 2011 primarily due to a slight increase in same property average occupancy and annualized GAAP rents per square foot from 90.0% and $18.72, respectively, in the third quarter of 2011 to 90.4% and $18.73, respectively, in the third quarter of 2012 and higher operating expense recoveries. These increases were partly offset by lower construction income of $1.7 million. We expect rental and other revenues for the remainder of 2012, adjusted for any future acquisitions, to be higher compared to 2011 primarily due to the contribution of recent acquisitions and slightly higher average occupancy in our same property portfolio.

Operating margin, defined as rental and other revenues less rental property and other expenses expressed as a percentage of rental and other revenues, was higher at 63.2% in the third quarter of 2012 as compared to 62.5% in 2011. Operating margin is expected to be similar for the remainder of 2012 as compared to 2011.

Rental and other revenues from continuing operations were $42.6 million, or 12.6%, higher in the nine months ended September 30, 2012 as compared to 2011 primarily due to recent acquisitions, which accounted for $36.5 million of the increase. In addition, same property revenues were $7.2 million higher in the nine months ended September 30, 2012 as compared to 2011 primarily due to an increase in same property average occupancy and annualized GAAP rents per square foot from 89.9% and $18.52, respectively, in the nine months ended September 30, 2011 to 90.7% and $18.75, respectively, in the nine months ended September 30, 2012, higher operating expense recoveries and higher net termination fees. These increases were partly offset by lower construction income of $1.7 million.

Operating margin, defined as rental and other revenues less rental property and other expenses expressed as a percentage of rental and other revenues, was lower at 63.9% in the nine months ended September 30, 2012, as compared to 64.0% in 2011.

Rental and other revenues related to properties not in our same property portfolio were $18.8 million and $8.5 million for the three months ended September 30, 2012 and 2011, respectively, and $52.6 million and $17.2 million for the nine months ended September 30, 2012 and 2011, respectively. Rental property and other expenses related to properties not in our same property portfolio were $8.7 million and $5.0 million for the three months ended September 30, 2012 and 2011, respectively, and $25.5 million and $10.1 million for the nine months ended September 30, 2012 and 2011, respectively.

Read the The complete Report

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