Highwoods Properties grows profit, raises guidance
Highwoods Properties Inc. reported a 19 percent increase in funds from operations in the second quarter, beating Wall Street expectations.
The Raleigh, N.C.-based real estate investment trust, which has holdings in Tampa, posted FFO of $42.3 million, or 69 cents per diluted share, up from $35.6 million, or 58 cents per diluted share, in the same period last year.
Analysts polled by Thomson Financial had projected, on average, FFO of 66 cents per diluted share for Highwoods in the quarter ended June 30. FFO is the preferred measure of profitability for REITs.
Highwoods’ net income of $12.1 million, or 21 cents per diluted share, increased more than threefold from $4 million, or 7 cents per diluted share, in the year-ago quarter.
The company’s office buildings were 91.1 percent occupied on June 30, and 66 percent of its $336 million development pipeline was pre-leased as of that date.
“Our company is stronger today than it was four years ago,” CEO Ed Fritsch said in a media release payday advance lender. “We have transformed our portfolio and strengthened our balance sheet. We have no remaining debt maturities this year and $155 million of high coupon debt maturing in 2009.”
Because of its strong performance, Highwoods (NYSE: HIW) raised its FFO 2008 guidance to a range of $2.70 to $2.78 per diluted share from $2.60 to $2.72.
In Tampa, the REIT owns Highwoods Bay Center I and Harbour Place.