Highwoods Properties : At-A-Glance

HIW

AT-A-GLANCE

ON TARGET

FOR 2020

4Q19

PITTSBURGH

ATLANTA

RALEIGH

NASHVILLE

TAMPA

CHARLOTTE

ORLANDO

NASHVILLE

CONTENTS

2 OPERATIONS

1. FINANCIALS & INVESTING

1. DEVELOPMENT

1. BALANCE SHEET
2. SUSTAINABILITY

1. MARKET ROTATION PLAN

1. CHARLOTTE

Certain matters discussed in this presentation are forward-looking statements within the meaning of the federal securities laws, such as: the expected financial and operational results and the related assumptions underlying our expected results; 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 investment, 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 Highwoods believes 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, the following: 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; anticipated G&A expense savings may not be realized; the financial condition of our customers could deteriorate; development activity by our competitors in our existing markets could result in excessive supply of properties relative to customer demand; development, acquisition, reinvestment, disposition or joint venture projects may not be completed as quickly or on as favorable terms as anticipated; we may not be able to lease or re-lease second generation space quickly or on as favorable terms as old leases; our markets may suffer declines in economic growth; we may not be able to lease our newly constructed buildings as quickly or on as favorable terms as originally anticipated; unanticipated increases in interest rates could increase our debt service costs; unanticipated increases in operating expenses could negatively impact our NOI; 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 to repay or refinance outstanding debt upon maturity; the Company could lose key executive officers; and others detailed in the Company's 2019 Annual Report on Form 10-K and subsequent SEC reports.

HIGHWOODS | AT-A-GLANCE | 4Q19 1

OPERATIONS

AVERAGE IN-PLACE RENT

$/SF
28
26
24
22
20
18
16
2013	2014	2015	2016	2017	2018	2019

SECOND GEN GAAP RENT GROWTH

%
20
15
10
5
0
2013	2014	2015	2016	2017	2018	2019

EXPIRATIONS >100K SF

		Customer	Market	Expiration	SF	Comments
2020		FAA	Atlanta	Holdover	100K	Discussing terms
	T-Mobile	Tampa	3Q	116K	3 month extension, will vacate
		FBI	Tampa	4Q	138K	BTS; highly probable renewal
2021		None remaining(1)
2022		None remaining(2)

1. In 4Q'19, renewed and expanded Medsolutions (133K SF) and renewed Marsh USA (123K SF) with modest downsize.
2. Subsequent to 4Q'19, renewed State of Georgia (238K SF).

SAME PROPERTY & AVERAGE OCCUPANCY

LEASE ECONOMICS

%		Same Property Cash NOI Growth					Net Effective Rent
7		Change in Average Occupancy					Lease Payback Ratio
6							$/SF						%
5							17						17
4							16						16
3							15						15
2							14						14
1							13						13
0							12						12
(1)							11						11
(2)							10						10
2013	2014	2015	2016	2017	2018	2019* 2020	2013	2014	2015	2016	2017	2018	2019

* Excluding impact of Laser Spine's sudden closure in 1Q'19.

2 HIGHWOODS | AT-A-GLANCE | 4Q19

COWORKING				Total Office	Existing	Flex Share
		Market	Inventory	Flexible Stock	of Inventory
				SF	SF	%
HIGHWOODS EXPOSURE	Markets	San Francisco	81,625,000	3,265,000	4.0
NY	415,472,222	14,957,000	3.6
		Gateway
6	29K	DC	126,904,762	2,665,000	2.1
	Boston	220,352,941	3,746,000	1.7
					HIW
Leases	Square Feet						Exposure
(Industrious, Spaces)	Average
					SF
	%		Raleigh	57,736,842	1,097,000	1.9	68,803
		Tampa	47,000,000	564,000	1.2	39,728
0.8	Markets
Orlando	40,416,667	485,000	1.2	24,113
Annualized Revenues
		Highwoods	Pittsburgh	77,000,000	616,000	0.8	23,664
Markets	Atlanta	132,950,000	2,659,000	2.0	18,775
	5
		Charlotte	42,100,000	842,000	2.0	-
			Nashville	41,000,000	697,000	1.7	-
			Richmond	28,000,000	133,000	0.5	-

Source: CBRE Q2'19	3
HIGHWOODS | AT-A-GLANCE | 4Q19

FINANCIALS &

INVESTING

2020 OUTLOOK

		Low		High
	FFO Per Share	$3.60		$3.72
	Same Property Cash NOI Growth	3.25%		4.25%
	Year-End Occupancy	91.0%		92.3%
	Items Not Included in FFO Outlook
	Acquisitions	$0M		$200M
	Dispositions*	$100M		$150M
	Development Announcements	$100M		$250M
*Excluding remaining Phase One dispositions
YEAR-END OCCUPANCY (OFFICE ONLY)		EXPIRATIONS (3 YEARS FORWARD)

ACQUISITIONS & DISPOSITIONS

DEVELOPMENT ANNOUNCEMENTS

$M	Acquisitions		Dispositions					$M	$2.0B Total
700						400
600	$2.0B Total		$2.7B Total
500										300
400										200
300
200										100
100
0										0	2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019*

*Includes Phase One dispositions planned for 2020

%											%
100											40
95											35
90											30
85											25
80											20
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2016	2017	2018	2019

4	As of Year-End
HIGHWOODS | AT-A-GLANCE | 4Q19

FFO PER SHARE

$
4.00
3.60
						CAGR
					%
				0
				.
3.20				4
2.80
2.40
2.00
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019*	2020

*Normalized FFO excludes the balance sheet write-offs associated with Laser Spine's sudden closure and the one-time costs from our market rotation plan. These costs total approximately $0.17 per share.

DIVIDENDS PER SHARE

$
2.00
1.90			CAGR
	%
0
	.
	3
1.80
1.70
1.60
1.50
2016	2017	2018	2019	2020
		HIGHWOODS | AT-A-GLANCE | 4Q19	5

DEVELOPMENT

DEVELOPMENT PIPELINE

$500M

1.2M

77%

Investment

Square Feet

Pre-Leased

PROFORMA DEVELOPMENT CASH RENT COMMENCEMENT

2019

2020

2021

2022

Current Pipeline

Market

Invst

SF

Pre-leased

Proforma

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

($M)

(K)

(%)

Stabilization

MetLife III

Raleigh

65

219

100

2Q21

GlenLake Seven

Raleigh

41

126

100

1Q21

Midtown One

Tampa

71

150

0

4Q22

4Q22

Virginia Springs II

Nashville

38

111

0

3Q22

3Q22

Asurion HQ

Nashville

285

553

98

1Q22

FUTURE HEADQUARTERS DELIVERIES

POTENTIAL FUTURE PROJECTS

RaleighPittsburgh

NashvilleRaleigh

TampaNashville

FUTURE DEVELOPMENT POTENTIAL | LAND BANK

Market	Acres	Office SF	Potential
Investment
Nashville	58	1,854,000
Tampa*	37	1,413,000
Raleigh	32	1,093,000
Richmond	23	350,000	$2.2B
Orlando	2	451,000
Atlanta	1	175,000
Pittsburgh	<1	60,000
Charlotte	-	40,000
Total	153	5,436,000

*Includes 600K SF potential at Midtown Tampa not on HIW-owned land.

Martin Marietta	Asurion
2021 Stabilization	2022 Stabilization

GlenLake Seven | RaleighAsurion Headquarters | Nashville

$41M	126K	100%	$285M 553K 98%
Investment	Square Feet	Leased	Investment Square Feet Leased

COMPETITIVE SET CONSTRUCTION

Cumulative Submarkets	Under	Projects	% of Stock	Pre-leased
Construction (SF)	Competitive Set	(%)
Charlotte	1.4M	5	5.0	42
Nashville	2.3M	9	7.8	31
Atlanta	6.0M	19	5.9	57
Raleigh	2.1M	11	5.1	38
Pittsburgh	0.6M	5	1.6	0
Tampa	1.1M	4	4.2	33

Based on new office construction in BBD locations.

Excludes BTS and owner occupied projects where existing user buildings are not competitive to HIW product.

Source: CBRE and HIW

6 HIGHWOODS | AT-A-GLANCE | 4Q19

HIGHWOODS | AT-A-GLANCE | 4Q19 7

BALANCE SHEET

SUSTAINABILITY

SIGNIFICANT BALANCE SHEET CAPACITY

STRONG BALANCE SHEET

2025 SUSTAINABILITY GOALS

D/E	D/EBITDAre	Book Leverage		Book
	Leverage
6						50
5	5.2x			4.9x
39.3%		4.7x	38.7%	40
4			36.0%
					30
3
					20
2
1						10
0	12/31/19	Mkt Rotation*	Development**	0

*Assumes completion of Phase One of market rotation plan. **Assumes completion of Phase One of market rotation plan and stabilization of current development pipeline with no

additional disposition proceeds or equity issuance.

							from a 2015 baseline
39.3%	5.2x	3.58%	20	%	REDUCTION	20	%	REDUCTION	10	%	REDUCTION
Debt + Preferred	Net Debt to	Weighted Average
as % of Gross Assets	Annualized EBITDAre	Interest Rate		energy intensity		carbon emissions			water use
1.6%	96.5%	Baa2 BBB
			WHERE WE ARE WITH GOALS
Secured Debt	Unencumbered NOI
as % of Gross Assets			13.6%		13.9%		13.2%
	as of 12/31/19
					reduction			reduction			reduction

ADDITIONAL PROGRESS

PRO FORMA* MATURITY LADDER				Average Interest Rate	PRO FORMA* CAPITAL STACK	3.2%		100%	100%
$M																												Unsecured
	%			%				%							%		%			%	%					Floating Rate
3.36		2.87		3.75							3.78			44..06%		4.30		3.24					1.2%
500																									29.7%		6.4 Years		Secured Debt
								Fixed			Floating
																25.3	%
																									Debt*	Weighted Average Maturity		OF MANAGED BUILDINGS	OF NEW DEVELOPMENT
400																					$95						Unsecured	BENCHMARKED IN ENERGY STAR	OFFICE PORTFOLIO (2M SF)
																										Fixed Rate
300																					Secured			70.3%						PORTFOLIO MANAGER	LEED CERTIFIED
200					$50																		$399						11.7M SF	82
																						Bonds	Equity**
					$250													$347		$349
		$299		Bank Loan										$297				$349
															Bonds		Bonds		Bonds
100		Bonds					$249						Bonds
								Bonds
0																														ACHIEVED ENERGY STAR	AVERAGE ENERGY STAR
				BankLoan
	'20	'21			'22				'23							'27	'28	'29			'30							CERTIFICATION	CERTIFICATION SCORE

*Includes disposition proceeds from announced Phase One sales after 12/31/19 used to repay line of credit. **Based on public market capitalization using 2/24/20 share price.

8 HIGHWOODS | AT-A-GLANCE | 4Q19

HIGHWOODS | AT-A-GLANCE | 4Q19 9

MARKET ROTATION PLAN

AUGUST 2019		NOVEMBER 2019			PHASE ONE		MID
GO		BUY			SELL	2020
PHASE ONE
COMPLETED TO DATE	PRICE	NOI	LEFT TO GO	PRICE	NOI
Bank of America Tower Acquisition	$436M	$27.4M		Additional Phase One Dispositions	TBD	TBD
Memphis Office Dispositions	$90M	$5.6M	• On Track to Meet Expectations
Greensboro Industrial/Office	$233M	$14.3M		Memphis Office Closure
Greensboro Office Closure					• On Track to Meet Expectations
BUY			SELL			SELL

PHASE ONE ROCKET PITCH STATUS CHECK

IMPROVED PORTFOLIO QUALITY			LEVERAGE NEUTRAL
		On Track to Meet Expectations
FFO NEUTRAL			G&A SAVINGS
2020 FFO Outlook $3.60-3.72			2020 Outlook $40-42M
CASH FLOW ACCRETIVE			INCREASED FUTURE GROWTH

PHASE TWO SELL NO PRESET

TIMETABLE

PHASE TWO

ATTRACTIVE PROPERTIES

• Greensboro and Memphis MOB Portfolio
• Memphis Office Properties along Poplar Corridor
• Greensboro Office Properties

PRO FORMA* GEOGRAPHIC MIX

% OF REVENUE

Charlotte	Other
Richmond 4%	5%
6%	Nashville
Orlando	21%
6%
Pittsburgh
8%
Tampa	Atlanta
19%
13%

Raleigh

18%

*Revenue mix assuming completion of Phase One and stabilization of current development pipeline.

		2020 TOP REAL
		ESTATE MARKETS
MARKETS >1 STANDARD DEVIATION ABOVE MEAN
1. Austin	6
2.	RALEIGH/DURHAM
3.	NASHVILLE
4. CHARLOTTE	HIW Markets
5. Boston	in ULI Top 11
6. Dallas/Fort Worth
7.	ORLANDO	%
8.	ATLANTA
9. Los Angeles	80
10. Seattle	of HIW Revenue

11. TAMPA/ST. PETERSBURG

10 HIGHWOODS | AT-A-GLANCE | 4Q19

HIGHWOODS | AT-A-GLANCE | 4Q19 11

CHARLOTTE

MAJOR CORPORATE ANNOUNCEMENTS

29

Corporate

Expansions/Relocations

between 2016-2022

87%

Headquarters' Space

27%

Technology Teams

8M+ SF

Total Gross Absorption

3.6M+ SF

In Net New Absorption

15

Consecutive Quarters of

Positive Net Absorption

Source: CBRE

12 HIGHWOODS | AT-A-GLANCE | 4Q19

MIDTOWN

277

342,000 SF

1,000,000 SF

64,000 SF

725,000 SF

561,000 SF

NEW/EXPANSION

601,000 SF

NEW

200,000 SF

280,000 SF

NEW

225,000 SF

NEW

SOUTHEND

375,000 SF

NEW

265,000 SF

NEW

175,000 SF

140,000 SF

NEW

277

HIGHWOODS | AT-A-GLANCE | 4Q19 13