HIW - Embedded Expectations Analysis - 2021 04 26
Highwoods Properties, Inc. (HIW:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 35.9x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about tenant renewal, funds from operations (FFO) targets, and the progress of their property developmentsSpecifically, management may be exaggerating the long-term potential of their Raleigh assets and Asurion property in Nashville. They may also be concerned about the progress of their Westshore property development and the demand for their Orlando properties. Moreover, management may lack confidence in their ability to renew long-term tenant contracts, sustain improvements in utilization rates, and achieve their FFO guidance. Furthermore, they may be overstating the resiliency of their portfolio, as well as their ability to pursue additional property investments
Highwoods Properties is a real estate investment trust. The company owns, develops, acquires, leases and manages properties primarily in the business districts of Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. The company's primary business is the operation, acquisition and development of office properties. The company conducts its activities through its subsidiary, Highwoods Realty Limited Partnership. The company provides a line of real estate services to its customers. The company provides its customers with services such as build-to-suit construction and space modification, including tenant improvements and expansions.
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