WEBSITE Highwoods Properties Investor Day May 12 Nashville - Flipbook - Page 2
INVESTOR DAY | 2022
WELCOME TO HIGHWOODS
Forward-Looking Statements. Certain matters discussed in this presentation are forward-looking statements within the meaning of the federal securities laws, such as: the planned
acquisitions of 650 South Tryon at Legacy Union and the 1426 South Tryon development site on the terms described in this pres entation; the planned sales of non-core assets and
expected pricing and impact with respect to such sales, including the tax impact of such sales; the anticipated total investm ent, projected leasing activity, estimated replacement cost
and expected net operating income of acquired properties and properties to be developed; and expected future leverage of the Company. These statements are distinguished by use of
the words ”will,” “expect,” “intend,” “plan,” “anticipate” and words of similar meaning. Although we believe the expectations reflected in such forward-looking statements are based
upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from our current expectations
include, among others, the following: closing of the planned acquisitions may not occur on the terms described in this presen tation or at all; buyers may not be available and pricing may
not be adequate with respect to the planned dispositions of non-core assets; comparable sales data on which we based our expectations with respect to the sales price of the non-core
assets may not reflect current market trends; the extent to which the ongoing COVID-19 pandemic impacts our financial condition, results of operations and cash flows depends on
future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and du ration of the pandemic and its impact on the U.S.
economy and potential changes in customer behavior that could adversely affect the use of and demand for office space; the fi nancial condition of our customers could deteriorate or
further worsen, which could be further exacerbated by the COVID-19 pandemic; our assumptions regarding potential losses related to customer financial difficulties due to the COVID-19
pandemic could prove incorrect; counterparties under our debt instruments, particularly our revolving credit facility, may at tempt 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 f avorable 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 em ployment growth; unanticipated increases in interest
rates could increase our debt service costs; unanticipated increases in operating expenses could negatively impact our operat ing 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 cap ital 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 2021 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.
2022 Outlook. Our 2022 per share FFO outlook, as well as outlook for other metrics such as growth in same property cash NOI and year -end occupancy, reflects management’s view as
of April 26, 2022 of current and future market conditions, including assumptions such as asset usage due to the pandemic, ren tal rates, occupancy levels, operating and general and
administrative expenses and weighted average diluted shares outstanding. The Company does not intend to provide an updated 2022 FFO outlook until its second quarter earnings
release on July 26, 2022.
Non-GAAP Information. All financial information contained in this presentation is unaudited. This presentation includes non-GAAP financial measures, such as funds from operations
(FFO), earnings before interest, taxes, depreciation and amortization for real estate ( EBITDAre), Adjusted EBITDAre and net operating income (NOI). Definitions of FFO, EBITDAre,
Adjusted EBITDAre and NOI and an explanation of management's view of the usefulness and risks of FFO, EBITDAre, Adjusted EBITDAre and NOI can be found towards the end of our
historical quarterly earnings releases.
