Highwoods Announces $40.2M of Non-Core Asset Sales
31 Mai 2023 - 10:05PM
Highwoods Properties, Inc. (NYSE:HIW) has sold One
Independence Park, a 116,000 square foot office building in Tampa’s
Westshore BBD, for $19.5 million. One Independence Park is 100%
occupied by a single user under a lease the Company signed with the
new user last year. The Company has also sold Riverbirch, a 60,000
square foot office building in the Research Triangle Park submarket
of Raleigh, for $20.7 million. Riverbirch is 100% occupied by a
single customer that recently renewed under a long-term lease. In
2023, these office buildings were projected to generate $2.6
million of GAAP net operating income and $1.9 million of cash net
operating income, which includes $0.9 million of free rent.
Ted Klinck, President and CEO of Highwoods,
stated “We are pleased with the execution of these non-core asset
dispositions. These transactions highlight that high-quality
buildings with healthy occupancy continue to generate solid
interest from qualified buyers. Proceeds from these sales will
further fortify our already healthy balance sheet, enhance our
liquidity and position Highwoods to take advantage of future growth
opportunities.”
As part of the sale of One Independence Park,
the Company provided $9.8 million in non-recourse first mortgage
seller financing. The note bears interest at an annual rate of
5.50% and is scheduled to mature in November 2023, but can be
prepaid without penalty at any time prior to maturity. The cash
proceeds received from both dispositions have been used to reduce
amounts outstanding on the Company’s revolving credit facility and
for general corporate purposes.
About HighwoodsHighwoods
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, Dallas, Nashville, Orlando, Raleigh,
Richmond and Tampa. For more information about Highwoods,
please visit our website at www.highwoods.com.
Forward-Looking Statements
Some of the information in this press release
may contain forward-looking statements. Such statements include, in
particular, statements about the Company’s liquidity and future
growth opportunities. You can identify forward-looking statements
by our use of forward-looking terminology such as “may,” “will,”
“expect,” “anticipate,” “estimate,” “continue” or other similar
words. Although we believe that our plans, intentions and
expectations reflected in or suggested by such forward-looking
statements are reasonable, we cannot assure you that our plans,
intentions or expectations will be achieved.
Factors that could cause our actual results to
differ materially from Highwoods’ current expectations include,
among others, the following: the financial condition of our
customers could deteriorate; our assumptions regarding potential
losses related to customer financial difficulties could prove
incorrect; counterparties under our debt instruments, particularly
our revolving credit facility, may attempt to avoid their
obligations thereunder, which, if successful, would reduce our
available liquidity; we may not be able to lease or re-lease second
generation space, defined as previously occupied space that becomes
available for lease, quickly or on as favorable terms as old
leases; we may not be able to lease newly constructed buildings as
quickly or on as favorable terms as originally anticipated; we may
not be able to complete development, acquisition, reinvestment,
disposition or joint venture projects as quickly or on as favorable
terms as anticipated; development activity in our existing markets
could result in an excessive supply relative to customer demand;
our markets may suffer declines in economic and/or office
employment growth; unanticipated increases in interest rates could
increase our debt service costs; unanticipated increases in
operating expenses could negatively impact our operating results;
natural disasters and climate change could have an adverse impact
on our cash flow and operating results; 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 repay or
refinance outstanding debt upon maturity; and the Company could
lose key executive officers.
This list of risks and uncertainties, however,
is not intended to be exhaustive. You should also review the other
cautionary statements we make in “Risk Factors” set forth in our
2022 Annual Report on Form 10-K. Given these uncertainties, you
should not place undue reliance on forward-looking statements. We
undertake no obligation to publicly release the results of any
revisions to these forward-looking statements to reflect any future
events or circumstances or to reflect the occurrence of
unanticipated events.
Contact: Brendan
Maiorana
Executive Vice
President and Chief Financial
Officerbrendan.maiorana@highwoods.com919-872-4924
Highwoods Properties (NYSE:HIW)
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