Highwoods Properties, Inc. (NYSE:HIW) is today announcing investment and financing transactions that closed during the fourth quarter of 2024 and to date in early 2025.
First, the Company has sold in a series of transactions non-core buildings in Raleigh and Tampa for combined gross proceeds of $166.4 million. Gross proceeds from dispositions closed in the fourth quarter of 2024 totaled $21.4 million with the remainder closing early in the first quarter of 2025. The sold properties include one office building encompassing 170,000 square feet in North Raleigh and three buildings encompassing 616,000 square feet in the Westshore submarket of Tampa. On a combined basis, these properties are 88% occupied and were projected to generate $13.6 million of GAAP net operating income and $13.0 million of cash net operating income in 2025.
Second, in the fourth quarter of 2024, the Company acquired fee simple title to the land underneath its Century Center assets for $50.6 million. The Company previously held most of its buildings in Century Center, a 12-building office park encompassing 1.7 million square feet and 13 acres of developable land in the Chamblee/N. Druid Hills submarket of Atlanta, pursuant to a long-term ground lease with a third party who owned fee simple title to the land.
Third, in the fourth quarter of 2024, the Company sold 1.59 million shares of its common stock at an average gross sales price of $32.71 per share, raising net proceeds of $51.3 million.
Ted Klinck, President and Chief Executive Officer, stated, “Our recent disposition activity demonstrates our continuing ability to execute on our long-standing strategy of selling non-core assets with limited future upside and ultimately using the proceeds to recycle into higher-quality buildings. The nearly $220 million of proceeds from these non-core dispositions and equity raised during the fourth quarter, further bolsters our already strong balance sheet and creates dry powder for future external growth opportunities in 2025.”
“Acquiring the land underneath our Century Center assets consolidates our ownership of the buildings and the land, which provides us with more long-term flexibility and certainty,” added Mr. Klinck.
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