Highwoods Properties (Highwoods Properties) Interest Coverage

: 1.31 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Highwoods Properties's Operating Income for the three months ended in Dec. 2023 was $46.1 Mil. Highwoods Properties's Interest Expense for the three months ended in Dec. 2023 was $-35.3 Mil. Highwoods Properties's interest coverage for the quarter that ended in Dec. 2023 was 1.31. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Highwoods Properties Inc interest coverage is 1.63, which is low.

The historical rank and industry rank for Highwoods Properties's Interest Coverage or its related term are showing as below:

HIW' s Interest Coverage Range Over the Past 10 Years
Min: 1.58 Med: 2.31 Max: 2.91
Current: 1.63

HIW's Interest Coverage is ranked worse than
76.07% of 677 companies
in the REITs industry
Industry Median: 3.01 vs HIW: 1.63

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Highwoods Properties Interest Coverage Historical Data

The historical data trend for Highwoods Properties's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 2.31 [6] => 2.75 [7] => 2.70 [8] => 2.27 [9] => 1.63 )

Highwoods Properties Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.31

2.75

2.70

2.27

1.63

Highwoods Properties Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.94	1.93	1.66	1.64	1.31

Competitive Comparison

For the REIT - Office subindustry, Highwoods Properties's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Highwoods Properties Interest Coverage Distribution

For the REITs industry and Real Estate sector, Highwoods Properties's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Highwoods Properties's Interest Coverage falls into.

Highwoods Properties Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Highwoods Properties's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Highwoods Properties's Interest Expense was $-136.7 Mil. Its Operating Income was $222.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,213.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	222.947	/	-136.71
	=	1.63

Highwoods Properties's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Highwoods Properties's Interest Expense was $-35.3 Mil. Its Operating Income was $46.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,213.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	46.124	/	-35.302
	=	1.31

The higher the ratio, the stronger the company's Financial Strength is.

Highwoods Properties (NYSE:HIW) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Highwoods Properties Interest Coverage Related Terms

Thank you for viewing the detailed overview of Highwoods Properties's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Highwoods Properties (Highwoods Properties) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Highwoods Properties Inc (NYSE:HIW) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

150 Fayetteville Street, Suite 1400, Raleigh, NC, USA, 27601

Website

https://www.highwoods.com

Highwoods Properties Inc is a real estate investment trust engaged in the acquisition, ownership, management, and leasing of properties in urban areas throughout the Southern United States. In terms of total square footage, the vast majority of the company's real estate portfolio comprises office buildings in terms. Highwoods Properties derives nearly all of its income in the form of rental revenue from the tenants of its buildings. The majority of this revenue comes from its holdings in the urban markets of Atlanta, Raleigh, Nashville, and Tampa. These cities also account for the majority of the square footage under the company's ownership. Highwoods Properties' largest customers include the U.S. Government, financial services firms, industrial supply retailers, and healthcare companies.

Executives

Brian M Leary	officer: EVP & COO	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Theodore J Klinck	officer: VP/Chief Investment Officer	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Brendan C Maiorana	officer: EVP of Finance & IR	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Jeffrey Douglas Miller	officer: General Counsel & Sec.	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
David L Gadis	director	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Mark F Mulhern	director	410 S. WILMINGTON STREET, RALEIGH NC 27601
David John Hartzell	director	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Thomas P Anderson	director	3751 GRISSOM PARKWAY, SUITE 100, MYRTLE BEACH SC 29577
Carlos E Evans	director	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27616
Anne H Lloyd	director
Sherry A Kellett	director
Edward J Fritsch	director, officer: EVP & COO
Kevin E Penn	officer: VP/Chief Strategy & Admin	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Michael E Harris	officer: Sr. Vice President
Terry L Stevens	officer: VP, CFO & Treasurer	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604