NYSE:HIW

Stock Analysis Report

Executive Summary

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate investment trust (“REIT”) and a member of the S&P MidCap 400 Index.

Snowflake

Fundamentals

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Highwoods Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HIW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

HIW

-1.8%

US REITs

0.3%

US Market


1 Year Return

5.9%

HIW

13.1%

US REITs

12.5%

US Market

Return vs Industry: HIW underperformed the US REITs industry which returned 13.1% over the past year.

Return vs Market: HIW underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

HIWIndustryMarket
7 Day-1.7%-1.8%0.3%
30 Day6.3%-2.0%4.1%
90 Day5.6%1.3%5.6%
1 Year10.5%5.9%17.8%13.1%15.0%12.5%
3 Year11.7%-2.3%37.7%20.7%49.1%39.4%
5 Year37.3%11.4%56.5%23.7%62.8%44.7%

Price Volatility Vs. Market

How volatile is Highwoods Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Highwoods Properties undervalued compared to its fair value and its price relative to the market?

11.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HIW ($46.3) is trading below our estimate of fair value ($52.02)

Significantly Below Fair Value: HIW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HIW is good value based on its PE Ratio (37.6x) compared to the REITs industry average (38.8x).

PE vs Market: HIW is poor value based on its PE Ratio (37.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: HIW is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: HIW is overvalued based on its PB Ratio (2.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Highwoods Properties forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIW's forecast earnings growth (12.3% per year) is above the savings rate (2.7%).

Earnings vs Market: HIW's earnings (12.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: HIW's earnings are forecast to grow, but not significantly.

Revenue vs Market: HIW's revenue (4.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: HIW's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HIW's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Highwoods Properties performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIW has high quality earnings.

Growing Profit Margin: HIW's current net profit margins (17.5%) are lower than last year (24.1%).


Past Earnings Growth Analysis

Earnings Trend: HIW's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: HIW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HIW had negative earnings growth (-26.2%) over the past year, making it difficult to compare to the REITs industry average (8.3%).


Return on Equity

High ROE: HIW's Return on Equity (5.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Highwoods Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HIW has a high level of physical assets or inventory.

Debt Coverage by Assets: HIW's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: HIW's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HIW has a sufficient allowance for bad loans.

Low Risk Liabilities: HIW reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HIW has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HIW has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HIW has an appropriate level of bad loans.


Next Steps

Dividend

What is Highwoods Properties's current dividend yield, its reliability and sustainability?

4.10%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: HIW's dividend (4.1%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: HIW's dividend (4.1%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

Stable Dividend: HIW's dividend payments have been volatile in the past 10 years.

Growing Dividend: HIW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.6%), HIW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HIW's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

What is the CEO of Highwoods Properties's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Ted Klinck (53yo)

0.2yrs

Tenure

US$1,842,988

Compensation

Mr. Theodore J. Klinck, also known as Ted, has been Chief Executive Officer and Director at Highwoods Properties, Inc. since September 1, 2019 and has been its President November 28, 2018. Mr. Klinck serve ...


CEO Compensation Analysis

Compensation vs Market: Ted's total compensation ($USD1.84M) is below average for companies of similar size in the US market ($USD6.77M).

Compensation vs Earnings: Ted's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: HIW's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

63yo

Average Age

Experienced Board: HIW's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$383,10028 Dec 18
Carlos Evans
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$38.31

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Carman Liuzzo (58yo)

    Senior Vice President of Investments

    • Tenure: 2.8yrs
    • Compensation: US$946.17k
  • Jeff Miller (48yo)

    Executive VP

    • Tenure: 12.7yrs
    • Compensation: US$1.25m
  • W. Reames (55yo)

    Senior Vice President of Nashville

    • Tenure: 0yrs
    • Compensation: US$741.46k
  • Mark Mulhern (59yo)

    Executive VP & CFO

    • Tenure: 5.2yrs
    • Compensation: US$1.80m
  • Ted Klinck (53yo)

    President

    • Tenure: 0.2yrs
    • Compensation: US$1.84m
  • Dan Clemmens

    VP & Chief Accounting Officer

    • Tenure: 12.3yrs
  • Brendan Maiorana (43yo)

    Executive Vice President of Finance & Investor Relations

    • Tenure: 3.5yrs
  • Art McCann

    VP & Chief Information Officer

    • Tenure: 12.6yrs
  • Brian Leary (45yo)

    Executive VP & COO

    • Tenure: 0.3yrs
  • L. Roberson (60yo)

    Senior Vice President of Development

    • Tenure: 0yrs

Board Members

  • Sherry Kellett (74yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$166.16k
  • Gene Anderson (74yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$161.16k
  • Anne Lloyd (58yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$134.87k
  • Carlos Evans (67yo)

    Chairman of the Board

    • Tenure: 1.1yrs
    • Compensation: US$161.11k
  • Ted Klinck (53yo)

    President

    • Tenure: 0.2yrs
    • Compensation: US$1.84m
  • Chuck Anderson (58yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$156.58k
  • Dave Hartzell (63yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$161.16k

Company Information

Highwoods Properties, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Highwoods Properties, Inc.
  • Ticker: HIW
  • Exchange: NYSE
  • Founded: 1978
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$4.948b
  • Market Cap: US$4.803b
  • Shares outstanding: 106.47m
  • Website: https://www.highwoods.com

Number of Employees


Location

  • Highwoods Properties, Inc.
  • 3100 Smoketree Court
  • Suite 600
  • Raleigh
  • North Carolina
  • 27604
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIWNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1994
HQSDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1994

Biography

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate investment trust (“REIT”) and a member of the S&P MidCap 400 Index. The Company is a fullyintegrated office ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:36
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.