HIW · 10-Q · 2026Q1 · Full report

Interest Rate and Refinancing Exposure

HIGHWOODS PROPERTIES, INC. · 2026-04-28 · Importance 49 · Surprise 24

The Company has a $750.0 million unsecured revolving credit facility scheduled to mature in January 2028, which can be extended for two additional six-month periods at the Company's option assuming no defaults. The facility's interest rate is based on SOFR plus a 10 basis point spread adjustment and an 85 basis point borrowing spread, with an annual facility fee of 20 basis points; the rate and fee are tied to the higher of the Company's public ratings and the margin may be adjusted by 2.5 basis points depending on achievement of certain sustainability goals. As of March 31, 2026 and April 21, 2026 there was $175.0 million outstanding on the facility and $0.1 million of letters of credit, leaving unused capacity of $574.9 million. The Company discloses refinancing risk, including potential acceleration on default and cross-default provisions, which could materially affect access to this short-term liquidity.

Key facts

• As of March 31, 2026, $525.0 million of the Company’s debt bears interest at floating rates.
• Interest expense was $5.1 million, or 13.8%, higher in the first quarter of 2026 compared to 2025 primarily due to higher average debt balances.

Impact estimates