Highwoods Properties Q4 EPS Beats by 7.3% on $203.4M Revenue; Rental Income Jumps 91%
Highwoods Properties reported Q4 revenue of $203.4 million, down 1.1% year-over-year and 2.4% below estimates, while EPS reached $0.90, beating forecasts by 7.3%. Straight-line rental income surged 91.4% to $4.38 million, offsetting a 67.1% drop in lease termination fees to $0.33 million.
1. Quarterly Financial Results
Highwoods Properties reported Q4 revenue of $203.36 million, representing a 1.1% year-over-year decline and missing the $208.34 million consensus by 2.4%. Diluted EPS of $0.90 surpassed the $0.84 estimate by 7.3%, reversing from a $0.03 loss per share in Q4 2024.
2. Key Rental Metrics
Lease termination fees fell 67.1% to $0.33 million versus a $0.50 million estimate, while contractual rents declined 2.4% to $169.85 million. Other operating revenues rose 32.5% to $14.2 million, cost recoveries dropped 16.6% to $14.6 million, and straight-line rental income jumped 91.4% to $4.38 million.
3. Stock Performance and Outlook
Shares have underperformed, returning -5.3% over the past month versus a flat S&P 500. With a Zacks Rank #3 (Hold), the mixed earnings results and varied metric performance suggest a cautious near-term outlook for Highwoods Properties.