Abstract

Highwoods Properties will report quarterly results on April 28, 2026 Post Market; this preview reviews consensus expectations for revenue, profitability and per-share metrics, examines the core operational and capital-market drivers likely to shape the print, and summarizes the prevailing analyst stance ahead of the announcement.

Market Forecast

Consensus compiled in our dataset indicates Highwoods Properties is projected to deliver revenue of 210.48 million US dollars for the current quarter, up 3.70% year over year, with EBIT of 51.07 million US dollars, up 4.12% year over year, and GAAP EPS of 0.11, down 49.43% year over year. No specific consensus for gross profit margin or net profit margin for the quarter was provided.

The company’s main business is rental and other income, which remains the primary determinant of results; the current-quarter outlook implies a modest year-over-year revenue increase consistent with stable collections and a relatively steady leasing environment. The most promising near-term contributor is the rental and other income line, forecast at 210.48 million US dollars for the quarter, implying 3.70% year-over-year growth.

Last Quarter Review

In the prior quarter, Highwoods Properties recorded revenue of 203.36 million US dollars, a gross profit margin of 67.19%, GAAP net profit attributable to the parent company of 29.23 million US dollars, a net profit margin of 14.36%, and adjusted EPS (reported as FFO per share) of 0.90, up 5.88% year over year.

Financial performance featured a pronounced sequential rebound in profitability, with net profit jumping by 117.30% quarter over quarter, while operating performance remained resilient on a year-over-year basis. Within the revenue mix, rental and other income effectively represented all revenue at 203.36 million US dollars, down 1.06% year over year.

Current Quarter Outlook

Core Rental Operations

Revenue expectations point to a quarter of steady fundamental execution. The 210.48 million US dollars revenue projection, up 3.70% year over year, implies relatively sound cash collections and a consistent pace of rent recognition despite the mixed backdrop for per-share earnings. The implied EBIT of 51.07 million US dollars, up 4.12% year over year, suggests operating expenses are expected to be contained well enough to allow modest year-over-year operating income growth. While the last quarter’s gross profit margin was 67.19%, the current dataset offers no explicit margin forecast; still, modest revenue growth alongside EBIT expansion generally points to continued cost discipline in property-level operating and maintenance expense lines.

Adjusted EPS for REITs is commonly assessed via FFO per share; the most recent quarter showed 0.90, a 5.88% increase year over year, underscoring stable property-level cash flows. For this quarter, the available consensus provides GAAP EPS of 0.11, which is down 49.43% year over year; that divergence between per-share GAAP earnings and operating measures often reflects non-operating drivers such as gains or losses on asset transactions, timing of depreciation, or capital-market activity. The stability in revenue and EBIT contrasted against the expected GAAP EPS decline underscores that investors should pay close attention to non-operating items and per-share dynamics when interpreting the print.

The central watch items inside core rental operations are renewals, rent step-ups, and any change in free-rent amortization timing. A modest top-line rise year over year can be achieved through a combination of contractual rent escalations and stable occupancy. Any outperformance versus the 3.70% revenue growth expectation would likely come from better-than-anticipated lease commencements or incremental recovery income, whereas any shortfall could stem from elevated downtime on expiring leases or unexpected concessions. Even small shifts in the cadence of lease commencements can move quarterly rent recognition, so the shape of lease start dates is an underappreciated swing factor for the quarter.

Most Promising Contributor: Rental and Other Income

Rental and other income remains the most promising contributor for the current quarter, with consensus revenue at 210.48 million US dollars, up 3.70% year over year. This is the same bucket that effectively represented the entire revenue base last quarter (203.36 million US dollars, down 1.06% year over year), so the quarter-to-quarter narrative is about stabilizing and modestly improving rent recognition from the existing portfolio. Where last quarter’s outcome reflected a small year-over-year dip, this quarter’s forecast implies that headwinds have moderated enough to turn the year-over-year comparison positive.

Because rental income is the most material input to EBIT, even incremental improvement in base rents or lower concessions can translate into disproportionate support for operating profit. If property-level expenses remain well managed, the flow-through from an improving top line to EBIT could exceed expectations. Conversely, if expenses such as repairs, utilities, or controllable operating costs land higher than anticipated, the benefit from top-line stability could be muted. Investors should also watch the mix of straight-line versus cash rents in this quarter, as shifts in the balance can create differences between GAAP and cash revenue trends.

With non-operating items exerting pressure on GAAP EPS, steady rental income is the balancing factor for the overall P&L. The improved year-over-year revenue profile for this quarter provides a foundation for maintaining operating momentum into the subsequent quarter, assuming no unexpected turnover spikes. Although the dataset does not provide sub-segment granularity, the directional read is that the portfolio’s revenue engine is positioned to deliver modest, positive year-over-year growth in the period being reported.

Key Stock-Price Swing Factors This Quarter

Per-share earnings dynamics are likely to be a primary driver of the stock’s reaction to results. Consensus indicates GAAP EPS of 0.11, a 49.43% decline year over year, which contrasts with stable top-line trends. This setup invites the market to scrutinize below-the-line items, including any non-cash remeasurements, gains or losses, or transaction timing effects that can weigh on reported EPS without meaningfully changing ongoing property cash flows. If investors perceive the EPS shortfall as largely non-recurring or technical, the reaction could hinge more on revenue, leasing color, and operating income trajectory than on the GAAP EPS print alone.

Capital-market activity and its per-share implications also bear watching. The company announced it entered into equity distribution agreements authorizing up to 300.00 million US dollars of common share issuance capacity. Such at-the-market programs provide balance-sheet flexibility and can be supportive of long-term capital needs, but they also introduce potential dilution if shares are issued around the quarter in question. Should utilization of the program increase the average share count, it could help explain softness in GAAP EPS even as revenue and EBIT rise year over year. Investors will look for any commentary about usage pace, proceeds, and deployment to contextualize per-share outcomes.

Operating cost control is the final swing factor. A quarter ago, EBIT increased 3.30% year over year to 53.09 million US dollars, demonstrating solid operating leverage despite a small revenue decline. For the current quarter, EBIT is estimated at 51.07 million US dollars, up 4.12% year over year, again suggesting cost discipline. If the company delivers better-than-expected expense containment, EBIT outperformance could partially offset any headline concern about GAAP EPS. Conversely, higher-than-expected controllable expenses or maintenance items could compress the margin and disappoint relative to the implied EBIT trajectory.

Analyst Opinions

The balance of recent institutional commentary leans bullish. A notable example is Deutsche Bank, which maintained a Buy rating and adjusted its price target to 27.00 US dollars, signaling confidence in the company’s ability to navigate the current quarter while sustaining operating momentum. This rating sits alongside broader sentiment that has seen at least one major firm shift from a negative stance to a neutral one during the period, reinforcing the view that risk-reward has improved compared with prior quarters.

The bullish case articulated by supportive institutions rests on three pillars. The first is the stabilizing revenue backdrop: the 3.70% year-over-year increase expected this quarter suggests the top line is firming after last quarter’s minor decline. The second is the operational read-through from EBIT trends: the 4.12% expected year-over-year increase in EBIT indicates expense discipline and offers a clearer signal of operating performance than GAAP EPS, which can be steered by accounting and transactional effects. The third is balance-sheet flexibility: the availability of an equity distribution program up to 300.00 million US dollars, while potentially dilutive, provides optionality to fund initiatives or manage leverage without relying exclusively on debt in an environment where financing terms can be variable.

On the upcoming print, bullish analysts are likely to focus on the relationship between revenue, operating income, and per-share dynamics. If the company meets or exceeds the 210.48 million US dollars revenue estimate and delivers EBIT close to or above 51.07 million US dollars, positive operating momentum would be intact even if GAAP EPS lands near 0.11. In that scenario, investors inclined to the bullish view would argue that per-share pressure reflects temporary or non-operating headwinds rather than deterioration in property-level economics. Conversely, if revenue or EBIT misses are coupled with weaker leasing commentary, the bullish argument would become more conditional; however, the present consensus structure implies modest growth on both lines, which supports the prevailing favorable view.

In summary, the majority stance among the institutions expressing a clear directional opinion within the review window is bullish, underpinned by expectations of modest year-over-year growth in revenue and EBIT, an understanding that GAAP EPS can be temporarily pressured by non-operating items and capital-market activity, and a view that balance-sheet options remain available to support long-term execution. Investors weighing this quarter’s outcome are thus encouraged to concentrate on revenue cadence, operating income trajectory, and any commentary around share issuance and its deployment, since those factors are most likely to reconcile the expected divergence between operating steadiness and near-term GAAP EPS variability.