HIW · 10-Q · 2026Q1 · Full report

Tenant Credit and Concentration

HIGHWOODS PROPERTIES, INC. · 2026-04-28 · Importance 32 · Surprise 24

Highwoods maintains an internal guideline to review customers that account for more than 3% of revenues with the Board; as of March 31, 2026 only Bank of America (4.2%) and Asurion (3.4%) exceeded that threshold of annualized GAAP revenues. The company emphasizes a diverse, stable and creditworthy customer base and monitors potential customer financial deterioration as a material risk to future operating results. Highwoods notes that second generation lease expirations and renewals (which comprised the bulk of Q1 signed volume) are important indicators of revenue predictability and customer retention. Tenant concentration at this limited level suggests a relatively dispersed revenue base but highlights a small number of larger customers to monitor for credit risk.

Key facts

• Only Bank of America (4.2%) and Asurion (3.4%) accounted for more than 3% of the Company’s annualized GAAP revenues as of March 31, 2026.