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HIW

Highwoods PropertiesNYSE:HIW Stock Report

Market Cap

US$4.7b

7D

0.3%

1Y

11.1%

Updated

07 Dec, 2021

Data

Company Financials +
HIW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health1/6
Dividends6/6

HIW Stock Overview

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.

Highwoods Properties Competitors

Kilroy Realty

NYSE:KRC

US$7.7b

Cousins Properties

NYSE:CUZ

US$5.7b

Corporate Office Properties Trust

NYSE:OFC

US$3.0b

Brandywine Realty Trust

NYSE:BDN

US$2.3b

Price History & Performance

Summary of all time highs, changes and price drops for Highwoods Properties
Historical stock prices
Current Share PriceUS$44.10
52 Week HighUS$48.98
52 Week LowUS$36.90
Beta1.12
1 Month Change-6.27%
3 Month Change-4.03%
1 Year Change11.08%
3 Year Change3.69%
5 Year Change-11.61%
Change since IPO107.53%

Recent News & Updates

Nov 02

Highwoods Properties: You May Have Overlooked This Undervalued Gem

Highwoods Properties is a high-quality player in the office REIT sector, investing in what it calls "better business districts". It's executing well with strong business fundamentals, including growing rents and occupancy. HIW continues to strategically recycle capital, and has a sizeable land bank upon which to build.

Aug 17

Highwoods Properties: The Dividend Raise Is Music To Investors' Ears

Highwoods Properties is a high-quality office REIT with a strategic focus on growing secondary markets. It's seeing strong operating metrics, and has a robust development pipeline currently underway. Management has communicated their confidence with the recent dividend raise, and I also highlight the balance sheet and valuation.

Shareholder Returns

HIWUS REITsUS Market
7D0.3%0.6%-2.6%
1Y11.1%29.3%17.8%

Return vs Industry: HIW underperformed the US REITs industry which returned 26% over the past year.

Return vs Market: HIW underperformed the US Market which returned 16.5% over the past year.

Price Volatility

Is HIW's price volatile compared to industry and market?
HIW volatility
HIW Average Weekly Movement3.6%
REITs Industry Average Movement3.7%
Market Average Movement6.2%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: HIW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HIW's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1978359Ted Klinckhttps://www.highwoods.com

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. Highwoods is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa.

Highwoods Properties Fundamentals Summary

How do Highwoods Properties's earnings and revenue compare to its market cap?
HIW fundamental statistics
Market CapUS$4.72b
Earnings (TTM)US$267.98m
Revenue (TTM)US$747.36m

17.6x

P/E Ratio

6.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIW income statement (TTM)
RevenueUS$747.36m
Cost of RevenueUS$230.59m
Gross ProfitUS$516.77m
ExpensesUS$248.79m
EarningsUS$267.98m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 08, 2022

Earnings per share (EPS)2.50
Gross Margin69.15%
Net Profit Margin35.86%
Debt/Equity Ratio116.5%

How did HIW perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

52%

Payout Ratio

Valuation

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

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HIW ($44.1) is trading below our estimate of fair value ($66.33)

Significantly Below Fair Value: HIW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HIW is good value based on its PE Ratio (17.6x) compared to the US REITs industry average (45.9x).

PE vs Market: HIW is poor value based on its PE Ratio (17.6x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: HIW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HIW's PB Ratio (2x) is in line with the US REITs industry average.


Future Growth

How is Highwoods Properties forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIW's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: HIW's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: HIW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HIW's revenue (4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: HIW's revenue (4% 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 (6.3%).


Past Performance

How has Highwoods Properties performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIW has a large one-off gain of $124.2M impacting its September 30 2021 financial results.

Growing Profit Margin: HIW's current net profit margins (35.9%) are lower than last year (42.9%).


Past Earnings Growth Analysis

Earnings Trend: HIW's earnings have grown by 19% 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 (-16.9%) over the past year, making it difficult to compare to the REITs industry average (27.7%).


Return on Equity

High ROE: HIW's Return on Equity (11.1%) is considered low.


Financial Health

How is Highwoods Properties's financial position?


Financial Position Analysis

Short Term Liabilities: HIW's short term assets ($461.7M) exceed its short term liabilities ($253.1M).

Long Term Liabilities: HIW's short term assets ($461.7M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: HIW's net debt to equity ratio (115.4%) is considered high.

Reducing Debt: HIW's debt to equity ratio has increased from 82.5% to 116.5% over the past 5 years.

Debt Coverage: HIW's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: HIW's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

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

4.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HIW's dividend (4.54%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: HIW's dividend (4.54%) is in the top 25% of dividend payers in the US market (3.62%)


Stability and Growth of Payments

Stable Dividend: HIW's dividends per share have been stable 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 (52.1%), 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 covered by earnings (52% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Ted Klinck (55 yo)

3.08yrs

Tenure

US$3,324,467

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. He served as Chi...


CEO Compensation Analysis

Compensation vs Market: Ted's total compensation ($USD3.32M) is below average for companies of similar size in the US market ($USD5.29M).

Compensation vs Earnings: Ted's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: HIW's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: HIW's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Highwoods Properties, Inc.'s 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$4.724b
  • Market Cap: US$4.603b
  • Shares outstanding: 107.22m
  • Website: https://www.highwoods.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:20
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.