Highwoods Provides Business Update

Signs Long-Term Renewal with the FBI in Tampa
Collects 99% of June Rents
Sells Non-Core Office Properties in Memphis for $23.3M

RALEIGH, N.C., July 01, 2020 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) today provided a business update. 

The Company has signed a 138,000 square foot, long-term, full-building renewal with the Federal Bureau of Investigation in Tampa.  This was the Company’s largest lease expiration remaining in 2020.  Highwoods developed the FBI’s Tampa Field Office as a build-to-suit in 2005.   

June Rent Collection Update
After collecting 99% of its contractually required rents for the months of April and May, the Company has collected 99% of its contractually required rents for the month of June. 

To date, the Company has agreed to grant temporary rent deferrals that represent 1.2% of its annualized rental revenues, including the deferrals disclosed in its first quarter 2020 earnings release on April 28, 2020 and in its business update on June 1, 2020. The Company is not currently aware of any customer-specific facts or circumstances that indicate a likelihood of any material losses at this point during the second quarter.

The Company further reported that all buildings and parking facilities have remained open for business.

Non-Core Property Dispositions
The Company has sold Centrum and Colonnade, two office buildings in Memphis that encompass a total of 169,000 square feet, for $23.3 million.  These office properties are a combined 89% occupied and are projected to generate approximately $1.4 million of cash net operating income and $1.7 million of GAAP net operating income in 2020.

The Company expects to record non-FFO gains of approximately $9.6 million in the third quarter of 2020 in connection with these sales.

About Highwoods
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 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.  For more information about Highwoods, please visit our website at www.highwoods.com.