Key Highlights

  • Third-quarter EPS was $0.16 against a $0.13 estimate, a 24.38% surprise as screened.
  • The board declared a quarterly common dividend of $0.50 per share, or $2.00 annualized.
  • Second-quarter office occupancy was 85.7%, against 85.3% at year-end 2025.
  • 2026 average occupancy guidance in the second quarter was 86.0% to 87.0%.
  • Leverage was 42.1% at the end of the second quarter.

Highwoods Earnings: What Is Behind the $0.16 EPS Versus the $0.13 Estimate?

Highwoods Properties (NYSE:HIW) released third-quarter 2026 results on Tuesday, October 27, following its earlier announcement that it would report that day. The screen showed reported EPS of $0.16 against a $0.13 estimate, a 24.38% surprise as screened.

The company published its supplemental operating statistics the same day and scheduled its conference call for Wednesday, October 28 at 11:00 a.m. Eastern. Highwoods owns and operates office properties in Sun Belt markets, and the screen listed a market capitalisation of $3.29 billion.

The comparison matters because quarterly net income at an office REIT can swing with property sales. In the second quarter, net income was $96.8 million, helped by $79.0 million of gains on property dispositions. Asset sales are therefore a variable to check when reading any single quarter's per-share figure, which is why the underlying operating statistics matter alongside the headline.

Dividend and Balance Sheet: What Did the Board Signal?

On Thursday, October 22, the board declared a quarterly common dividend of $0.50 per share for the quarter ended September 30, or $2.00 annualized. It is payable on December 8 to holders of record on November 16.

The board also declared $21.5625 per share on the 8 5/8% Series A Cumulative Redeemable Preferred Stock, payable November 30.

In June, the company recast a $150 million unsecured bank term loan, extending its maturity to June 2029 and resetting pricing on several credit facilities. Leverage was 42.1% at the end of the second quarter, giving the company room to keep funding its dividend and capital needs from operations and sales proceeds.

Occupancy and Guidance Context: What Did the Second Quarter Establish?

Second-quarter rental and other revenues were $216.4 million. Office occupancy was 85.7%, up from 85.3% at year-end 2025, and management's 2026 average occupancy guidance was 86.0% to 87.0%.

In May, the company sold Bridgestone Tower in the Nashville central business district, part of the disposition activity behind the second-quarter gains. Two large asset managers each reported stakes above 15% of the shares in filings during the summer, at 17.7% and 15.29%.

Third-quarter occupancy, leasing and any change to the full-year outlook are in the supplemental statistics and will be addressed on the call. Readers should compare those figures with the second-quarter base of 85.7% occupancy and $216.4 million of rental and other revenues before drawing conclusions about the direction of the portfolio.

What Should Investors Watch on the Wednesday Call?

Investors will watch for any change to the 2026 occupancy range of 86.0% to 87.0%, the pace of leasing, disposition plans and leverage relative to 42.1%. The $0.50 dividend and the preferred payment dates are fixed, so the focus is on whether the quarter's operating results support that payout, and how the quarter's EPS beat compares with the underlying operating trend.