HIW · 10-Q · 2026Q1 · Full report

Same-Property NOI Growth

HIGHWOODS PROPERTIES, INC. · 2026-04-28 · Importance 25 · Surprise 32

Consolidated same property net operating income (NOI) declined by $1.8 million, or 1.3%, in Q1 2026 versus Q1 2025, driven by a $3.4 million increase in same property expenses that was partially offset by $1.7 million of higher same property revenues. The company reports that same property rental and other revenues rose modestly (higher GAAP rents, parking income and cost recoveries) while same property expenses increased (property taxes, utilities, contract services). Highwoods' same property cash NOI was slightly lower year-over-year, indicating ongoing near-term pressure from operating cost inflation even as leasing rates improved. Management expects consolidated same property NOI to increase for the remainder of 2026, partially offset by dispositions.

Key facts

• NOI was $7.6 million, or 5.6%, higher in the first quarter of 2026 as compared to 2025 primarily due to property acquisitions in Raleigh, Charlotte and Dallas.
• Same property net operating income for the three months ended March 31, 2026 was $135,194 thousand and same property cash net operating income was $128,480 thousand.
• Consolidated same property NOI was $1.8 million, or 1.3%, lower in the first quarter of 2026 compared to 2025.
• As of March 31, 2026 the Company’s same property portfolio consisted of 137 wholly owned and joint venture in-service properties encompassing 25.4 million rentable square feet.

Impact estimates