Highwoods Properties : 2Q 2019 Supplemental Operating Statistics

Table of Contents

	Page
Summary and Corporate Information……………………………………………………………………………………………………………	i, ii, iii
Consolidated Statements of Income………………………………………………………………………………………………………………	1
Funds from Operations and Additional Information……………………………………………………………………………………………	2
Consolidated Balance Sheets……………………………………………………………………………………………………………………	3
Capitalization, Net debt-to-EBITDAre and Revenue Detail……………………………………………………………………………………	4
Mortgages and Notes Payable Summary…………………………………………………………………………………………………………	5
Mortgages and Notes Payable Detail……………………………………………………………………………………………………………	6
Portfolio Summary…………………………………………………………………………………………………………………………………	7, 8, 9
Occupancy Trends…………………………………………………………………………………………………………………………………	10
Office Leasing Statistics...…………………………………………………………………………………………………………………………	11
Office Leasing Statistics and Rental Rate Comparisons by Market…………………………………………………………………………	12
Office Lease Expirations……………………………………………………………………………………………………………..……………	13
Office Lease Expirations by Market by Year……………………………………………………………………………………………………	14
Customer Diversification……………………………………………………………………………………………………………………………	15
Same Property Performance………………………………………………………………………………………………………………………	16
Disposition Activity……………………………………………………………………………………………………………………………….…	17
Development Activity……………………………………………………………………………………………………………………………….	18
Land Held for Development………………………………………………………………………………………………………………………	19
Joint Venture Financial and Summary Information………………………………………………………………………………………………	20

The information within refers to all Highwoods Properties' wholly-owned entities unless noted otherwise. Wholly-owned entities exclude properties recorded on our Balance Sheet that relate to joint venture investments that are consolidated under GAAP.

All financial information contained in this document is unaudited. In addition, certain matters presented in this supplemental, including estimates of net operating income, pre-leasing commitments and the cost, timing and stabilization of announced development projects, are forward-looking statements within the meaning of the federal securities laws. Although Highwoods believes that 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 Highwoods' current expectations include, among others, general economic conditions, local real estate conditions, the timely development and lease-up of properties, and other risks listed at the end of our second quarter earnings release and detailed from time to time in the Company's SEC reports. Highwoods assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.

This supplemental also includes non-GAAP financial measures, such as funds from operations (FFO), earnings before interest, taxes, depreciation and amortization for real estate (EBITDAre) and net operating income (NOI). Definitions of FFO, EBITDAre and NOI and an explanation of management's view of the usefulness and risks of FFO, EBITDAre and NOI can be found towards the end of our second quarter earnings release.

COVER

MARS Petcare Ribbon Cutting

Nashville Division

TOC

Summary (amounts in thousands, except percentages, ratios, and per share amounts)

			Three Months Ended
			6/30/19		6/30/18
Financial:
Revenues	$	184,070	$	178,792
Net operating income (NOI)	$	123,512	$	119,129
Same property cash NOI growth			3.1%		-1.1%
Funds from operations per share	$	0.87	$	0.87
Weighted average common shares outstanding, diluted			106,445		106,267
Balance Sheet:
Leverage (includes preferred stock) based on gross book assets			35.9%		35.3%
Net debt-to-EBITDAre			4.74x		4.65x
Net debt plus Preferred Stock-to-EBITDAre			4.81x		4.72x
Unencumbered NOI %			96.4%		96.2%
Credit facility availability	$	464,000	$	458,000
Operations:
Quarter end occupancy			90.9%		91.8%
Office square feet leased			1,076		1,117
Office GAAP rent growth 1/			16.8%		18.2%
Average office cash rental rate per square foot for in-place leases	$	26.47	$	25.40
	Six Months Ended
			6/30/19
Investment Activity:
Building acquisitions	$	-
Building dispositions	$	32,500
Land acquisitions	$	-
Land dispositions	$	-
Development pipeline	$	502,620
Pipeline pre-leased %			80.3%

1/ GAAP rent growth is calculated by comparing average cash rent psf over the term (GAAP rent) of the new lease to the average cash rent psf over the term related to the previous lease in the same space. Adjustments are made if and to the extent necessary to illustrate the current and prior deal on a consistent gross lease basis.

i

Corporate Information

Board of Directors	Division Officers
Chuck Anderson	Jim Bacchetta
Gene Anderson	Vice President, Atlanta
Carlos Evans, Chair	Rick Dehnert
Ed Fritsch	Vice President, Greensboro
David Hartzell, Ph.D.	Jane duFrane
Sherry Kellett	Vice President, Richmond
Anne Lloyd	Steve Garrity
	Vice President, Orlando
Corporate Officers	Steve Guinn
	Vice President, Memphis
Dan Clemmens	Skip Hill
Vice President, Chief Accounting Officer	Vice President, Raleigh
Hugh Esleeck	Brian Reames
Vice President, Treasurer	Senior Vice President, Nashville
Ed Fritsch	Andy Wisniewski
Chief Executive Officer	Vice President, Pittsburgh
Ted Klinck	Dan Woodward
President	Vice President, Tampa
Brian Leary
Executive Vice President, Chief Operating Officer
Carman Liuzzo
Senior Vice President, Investments
Brendan Maiorana
Executive Vice President, Finance and Investor Relations
Art McCann
Vice President, Chief Information Officer
Jeff Miller
Executive Vice President, General Counsel and Secretary
Mark Mulhern
Executive Vice President, Chief Financial Officer
Randy Roberson
Senior Vice President, Development
Mike Starchville
Senior Vice President, Asset Management

ii

Corporate Information

Research Coverage	Corporate Headquarters
		Highwoods Properties, Inc.
Bank of America/Merrill Lynch	Jefferies & Company, Inc.	3100 Smoketree Court, Suite 600
Jamie Feldman	Jonathan Petersen	Raleigh, NC 27604
646-855-5808	212-284-1705	919-872-4924
BTIG	Janney Montgomery Scott	Stock Exchange
Tom Catherwood	Robert Stevenson	NYSE: HIW
212-738-6140	646-840-3217
		Investor Relations
Capital One Securities	Morgan Stanley	Brendan Maiorana
Chris Lucas	Vikram Malhotra	Executive Vice President, Finance and Investor Relations
571-633-8151	212-761-7064	Phone: [phone]
		Fax: [phone]
Citigroup Global Markets	RW Baird	[e-mail]
Michael Bilerman	David Rodgers	http://www.highwoods.com/
212-816-1383	216-737-7341
Emmanuel Korchman		Information Request
212-816-1382	Stifel Nicolaus	To request a Supplemental Package or Annual Report
	John Guinee	or to be added to our e-mail distribution list, please contact
D.A. Davidson & Co.	443-224-1307	Investor Relations.
Barry Oxford
212-240-9871	SunTrust Robinson Humphrey
	Michael Lewis	The Company
Green Street Advisors	212-319-5659	Highwoods Properties, headquartered in Raleigh, is a publicly
Daniel Ismail		traded (NYSE:HIW) real estate investment trust ("REIT") and
949-640-8780	Wells Fargo	a member of the S&P MidCap 400 Index. The Company is a
	Blaine Heck	fully-integrated office REIT that owns, develops, acquires, leases and
	443-263-6529	manages properties primarily in the best business districts (BBDs)
		of Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh,
		Raleigh, Richmond and Tampa. For more information about

Highwoods Properties, please visit our website at:

www.highwoods.com.

iii