Q2 2024 Highwoods Properties Inc Earnings Call Transcript
Key Points
- Highwoods Properties Inc (HIW) reported FFO of $0.98 per share, representing a 4% year-over-year growth.
- The company raised its full-year FFO outlook, increasing the midpoint by $0.03.
- Strong leasing activity with 909,000 square feet of second-generation leases and 352,000 square feet of new leases.
- Balance sheet remains strong with a debt-to-EBITDA ratio of 5.8x at quarter-end.
- Development pipeline is robust, with $506 million worth of projects that are 45% leased, expected to significantly bolster cash flow and earnings.
- Occupancy remains steady at 88.5%, not yet reflecting the strong leasing over the past few quarters.
- Potential lease cancellation at the former Tivity building in Nashville could impact occupancy and financial outlook.
- Higher interest rates have impacted the company's financial performance.
- Operating expenses are expected to be higher in the third quarter due to seasonal utility costs.
- The company faces challenges in the leasing environment, with continued pressure on net effective rents and high tenant improvement costs.
Earnings call -- My name is Cole, and I'll be the moderator for today's call. (Operator Instructions)
I'd now like to pass it over to Hannah true. Please go ahead.
Thank you, operator, and good morning, everyone. Joining me on the call this morning are Ted Klinck, our Chief Executive Officer, Brian Leary, our Chief Operating Officer, and Brendan Maiorana, our Chief Financial Officer. For your convenience, today's prepared remarks have been posted on the web, but you have not received yesterday's earning release or supplemental. Thgey're both available on the Investors section of our website at highwoods.com.
On today's call, I'll review will include non-GAAP measures such as FFO, NOI and EBITDA. The release and supplemental included a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures. Forward looking statements made during today's call are subject to risks and uncertainties.
These risks and uncertainties
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