How Investors May Respond To Highwoods Properties (HIW) Expanding Its Charlotte Presence With $223M Tower Acquisition

• Highwoods Properties, Inc. recently closed the acquisition of 6Hundred at Legacy Union, a 24-story, Class AA office tower in Charlotte's Uptown CBD, for a total expected investment of US$223 million including near-term improvements and leasing capital.
• This purchase grows Highwoods' Charlotte presence by adding a newly delivered, 84% leased, LEED gold-targeted property directly connected to its existing holdings in the area.
• We'll look at how this significant Charlotte office tower acquisition may alter Highwoods Properties' investment narrative and growth prospects.

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Highwoods Properties Investment Narrative Recap

To be a shareholder in Highwoods Properties, it helps to believe in the revival of office demand in Sunbelt cities and the ongoing demand for high-quality, sustainable assets. The acquisition of 6Hundred at Legacy Union bolsters Highwoods' foothold in Charlotte and strengthens near-term catalysts around occupancy and potential rental growth, but does not materially change the biggest risk: persistent hybrid work trends potentially limiting future leasing momentum.

One recent development relevant to this news is the sale of US$37 million in non-core assets since October 1, 2025, which highlights Highwoods' continued focus on recycling capital into modern, higher-yield properties and supporting near-term portfolio upgrades. This action supports the catalyst of enhancing earnings power through asset repositioning rather than organic revenue growth in a challenged office market.

However, investors should also be aware that, in contrast, persistent trends toward hybrid work could still challenge…

Read the full narrative on Highwoods Properties (it's free!)

Highwoods Properties is expected to generate $903.7 million in revenue and $69.7 million in earnings by 2028. This outlook implies a 3.5% annual revenue growth rate but a notable decrease in earnings, which are forecast to drop by $56.8 million from the current $126.5 million.

Uncover how Highwoods Properties' forecasts yield a $31.70 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members show a wide fair value range for Highwoods Properties, from US$31.70 to US$44.19 based on two independent estimates. As opinions differ, keep in mind that slow expected revenue growth remains an ongoing concern for the company’s performance and future outlook.

Explore 2 other fair value estimates on Highwoods Properties - why the stock might be worth just $31.70!

Build Your Own Highwoods Properties Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Highwoods Properties research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Highwoods Properties research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Highwoods Properties' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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