Highwoods Properties Acquires Lincoln Plaza in CBD Orlando - Seite 2

Investment Activity Update
Subsequent to its October 28^th third quarter earnings release, the Company has sold $13 million of non-core buildings, including a 75,000 square foot office building in Winston-Salem that was 95% occupied and its 23% share of a 150,000 square foot, joint venture office property in Atlanta that was 71% occupied. Combined, these properties were expected to generate cash and GAAP net operating income in 2015 of $0.8 million and $0.9 million, respectively. Year-to-date, the Company has sold $183 million of non-core buildings. 

In addition, the Company has acquired its joint venture partner's 50% interest in Innsbrook Center, a 66,400 square foot office building in Innsbrook, one of Richmond's BBDs, for a total investment of $4.4 million, 30% below estimated replacement cost. The building was 83% occupied at September 30, 2014 and is expected to generate incremental cash and GAAP net operating income in 2015 of $0.4 million. Year-to-date, the Company has invested $165 million in the acquisition of BBD-located office buildings. 

About Highwoods Properties
Highwoods Properties, headquartered in Raleigh, North Carolina, 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 fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Kansas City, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond, Tampa and the Triad. For more information about Highwoods Properties, please visit our website at www.highwoods.com.

Certain matters discussed in this press release, such as anticipated total investment, projected leasing activity, estimated replacement cost and expected net operating income of acquired properties and the expected cost, timing and impact of our development activity, are forward-looking statements within the meaning of the federal securities laws. These statements are distinguished by use of the words "will", "expect", "intend" and words of similar meaning. Although Highwoods believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Factors that could cause actual results to differ materially from Highwoods' current expectations include, among others, the following: the financial condition of our customers could deteriorate; development activity by our competitors in our existing markets could result in excessive supply of properties relative to customer demand; development, acquisition, reinvestment, disposition or joint venture projects may not be completed as quickly or on as favorable terms as anticipated; we may not be able to lease or re-lease second generation space quickly or on as favorable terms as old leases; our markets may suffer declines in economic growth; we may not be able to lease our newly constructed buildings as quickly or on as favorable terms as originally anticipated; unanticipated increases in interest rates could increase our debt service costs; unanticipated increases in operating expenses could negatively impact our NOI; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or to repay or refinance outstanding debt upon maturity; the Company could lose key executive officers; and others detailed in the Company's 2013 Annual Report on Form 10-K and subsequent SEC reports.