HIW · 10-Q · 2026Q1 · Full report

Operating Expense Trends

HIGHWOODS PROPERTIES, INC. · 2026-04-28 · Importance 31 · Surprise 32

Rental property and other expenses rose $6.1 million, or 9.4%, in Q1 2026 versus Q1 2025, driven by incremental expense from recent property acquisitions and higher consolidated same property operating expenses. Consolidated same property operating expenses increased primarily due to higher property taxes, utilities and contract services, contributing $3.4 million of the same-property expense increase. Depreciation and amortization also rose $6.1 million (8.6%) year-over-year, reflecting recent acquisitions. Management expects rental property and other expenses and depreciation to remain higher for the remainder of 2026 versus 2025 for similar reasons.

Key facts

• Rental property and other expenses were $6.1 million, or 9.4%, higher in the first quarter of 2026 compared to 2025.
• Depreciation and amortization was $6.1 million, or 8.6%, higher in the first quarter of 2026 compared to 2025 primarily due to property acquisitions in Raleigh, Charlotte and Dallas.
• Consolidated same property operating expenses increased operating expenses by $3.4 million in the first quarter of 2026 compared to 2025.
• General and administrative expenses were $1.0 million, or 7.8%, higher in the first quarter of 2026 compared to 2025 primarily due to higher long-term equity incentive compensation.
• Consolidated same property operating expenses increased primarily due to higher property taxes, utilities and contract services.