Earnings release
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FOR IMMEDIATE RELEASE Ref: 26-18 Contact: Brendan Maiorana Executive Vice President and Chief Financial Officer brendan.maiorana@highwoods.com 919-872-4924 Highwoods Reports Third Quarter 2026 Results _________________________________________ $0.29 Net Income per Share $0.89 FFO per Share Signed 1.2M SF of 2nd Gen Leases, Including 300,000 SF of New Leases Delivered GAAP Rent Growth of 28.8% and Cash Rent Growth of 4.2% Strengthened Occupancy by 130 Basis Points in Quarter Increased Leased Rate to 90.1% ________________________________________ Closed $386M of Dispositions Year-to-Date Includes $85M of Non-Core Sales in Quarter _______________________________________ Increases 2026 FFO Outlook to $3.51 to $3.70 per Share Previously $3.46 to $3.70 per Share _______________________________________ RALEIGH, NC – October 27, 2026 – Highwoods Properties, Inc. (NYSE:HIW) today reported its third quarter 2026 financial and operating results. Ted Klinck, President and Chief Executive Officer, stated, “Office fundamentals are accelerating across our footprint, which drove strong operating and financial performance during the quarter and underpins our positive outlook for the foreseeable future. Leasing activity was robust with 1.2 million square feet of second gen leases signed, including 300,000 square feet of new leases. Rent spreads were healthy on both a cash and GAAP basis and net effective rents were once again strong. Occupancy increased 130 basis points during the quarter and our leased rate is now over 90%. Given the meaningful backlog of signed but not yet commenced leases, we expect occupancy will continue to increase through the end of the year. Our balance sheet is in excellent shape as we have ample cash and liquidity to repay all debt maturing through the end of next year. We have closed $386 million of dispositions year-to-date, nearly $150 million above our initial outlook , and have additional non -core properties in the market for sale . These excess proceeds put us in a strong position to opportunistically deploy capital into future investment opportunities that we believe will deliver attractive risk-adjusted returns.
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P a g e | 2 Highwoods Given our strong performance year-to-date and positive outlook for the remainder of 2026, we are once again increasing our FFO outlook to $3.51 to $3.70 per share, which is 2½ cents higher than our prior outlook at the midpoint. Since our initial outlook in February , we have increased the midpoint of our outlook 6½ cents per share, which includes four cents of higher -than-anticipated dilution due to increased disposition activity. With growing rents across our SunBelt BBDs, our positive occupancy trajectory and meaningful dry powder, we are well-positioned to deliver healthy growth in earnings and cash flow in the near-term while deploying capital to bolster our long-term growth.” Third Quarter 2026 Highlights Operations: • Reported net income of $0.29 per share • Earned FFO of $0.89 per share; no land sale gains were recorded during the quarter • Reported same property cash NOI growth of +0.2% and GAAP NOI growth of +4.1% • Increased average in-place cash rents 3.6% per square foot year-over-year • Ended the quarter with in-service occupancy of 87.0% and in-service leased rate of 90.1% o Increased the occupancy rate by 130 basis points during the quarter Second Generation Leasing Activity: • Leased 1,212,000 square feet, including 300,000 square feet of new leases • Achieved dollar-weighted average lease term of 7.3 years • Delivered GAAP rent growth of 28.8% and cash rent growth of 4.2% • Achieved net effective rents 6.2% higher than previous five-quarter average Development Activity: • 23 Springs in Dallas is the sole remaining project in the Company’s development pipeline o 642,000 square foot development; 95.0% leased and 71.2% occupied o $230 million total investment (at HIW share); $19 million remaining to fund (at HIW share) o Signed 13,000 square feet of leases during the quarter Investment Activity: • Sold six non-core office buildings encompassing 472,000 square feet in Richmond for $ 53.0 million • Sold 118,000 square foot non-core office building in Century Center in Atlanta for $20.5 million • Sold two non-core office buildings encompassing 161,000 square feet in Raleigh for $11.7 million Financing Activity: • Ended the quarter with a debt-to-Adjusted EBITDAre ratio of 6.1x • Obtained a secured loan for up to $ 370 million at the Company’s 50% owned 23 Springs joint venture, with a floating interest rate of SOFR plus 230 basis points and a maturity date of September 2030, inclusive of a one-year extension option; $326 million is currently drawn on this loan • Obtained a secured loan for up to $56 million at the Company’s 50% owned Midtown East joint venture, with an interest rate swapped to a fixed rate of 6.3% and a maturity date of July 2036; $47 million is currently drawn on this loan • Entered into forward sales agreements to issue 1,056,085 shares of common stock through the Company’s ATM program at an average gross sales price of $32.24 for expected net proceeds of $34 million; forward sales agreements typically mature one year from the respective trade dates • Ended the quarter with $279 million cash on hand and no borrowings under the Company’s $750 million revolving credit facility
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P a g e | 3 Highwoods Third Quarter 2026 Financial Results Net income available for common stockholders (“net income”) was $ 31.8 million, or $0. 29 per diluted share, for the third quarter of 2026 and $12.9 million, or $0.12 per diluted share, for the third quarter of 2025. Funds from operations available for common stockholders (“FFO”) was $ 100.1 million, or $0.89 per diluted share, for the third quarter of 2026 and $94.8 million, or $0.86 per diluted share, for the third quarter of 2025. Net income was $1 56.6 million, or $1.42 per diluted share, for the nine months ended September 30, 2026. Net income was $128.6 million, or $1.19 per diluted share, for the nine months ended September 30, 2025. FFO was $294.8 million, or $2.63 per diluted share, for the nine months ended September 30, 2026. FFO was $ 284.2 million, or $ 2.58 per diluted share, for the nine months ended September 30, 2025. Except as noted below, the following items (including our share of consolidated and unconsolidated properties) were included in the determination of net income and FFO for the three and nine months ended September 30, 2026 and 2025: (1) Credit losses on straight-line rent receivables related to lease terminations are reflected as a reduction of lease termination income. (2) Not included in the determination of FFO. Three Months Ended 9/30/2026 Three Months Ended 9/30/2025 (000) Per Share (000) Per Share Lease Termination Income, Net (1) 1,335$ 0.012$ 635$ 0.006$ Straight-Line Rental Income (1) 14,044 0.125 5,540 0.050 Capitalized Interest 817 0.007 2,962 0.027 Gain/(Loss) on Debt Extinguishment 2 - (144) (0.001) Gains on Disposition of Depreciable Properties (2) 13,582 0.121 5,674 0.051 Impairments of Depreciable Properties (2) - - (8,800) (0.080) Nine Months Ended 9/30/2026 Nine Months Ended 9/30/2025 (000) Per Share (000) Per Share Lease Termination Income, Net (1) 4,312$ 0.038$ 3,479$ 0.032$ Straight-Line Rental Income (1) 33,931 0.302 14,541 0.132 Capitalized Interest 3,918 0.035 8,969 0.081 Loss on Debt Extinguishment (58) (0.001) (144) (0.001) Land Sale Gains/(Losses) 3,960 0.035 (122) (0.001) Gains on Disposition of Depreciable Properties (2) 105,609 0.941 88,011 0.799 Impairments of Depreciable Properties (2) - - (8,800) (0.080)
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P a g e | 4 Highwoods 2026 Outlook The Company has updated its full year 2026 FFO outlook to $3.51 to $3.70 per share, which compares to the prior range of $3.4 6 to $3. 70 per share provided on July 28, 2026 . This outlook reflects management’s view of current and future market conditions, including but not limited to assumptions such as rental rates, occupancy levels, operating and general and administrative expenses and interest rates. Factors that could cause actual results to differ materially from management’s current expectations are discussed below and are also detailed in the Company’s 2025 Annual Report on Form 10-K and subsequent SEC reports. Management’s outlook for 2026 includes the following assumptions: Low High Effects Assumed in FFO Outlook: Growth in Same Property Cash NOI -1.0% +1.0% Growth in Same Property GAAP NOI 1.5% 3.5% Non-Cash Revenue (Including Straight-Line Rental Income) $40M $50M G&A Expenses $42M $44M Year-End Occupancy 87.0% 88.0% Estimated Land Sale Gains per Share $0.04 $0.18 Completed Acquisitions (at HIW Share) $108M $108M Completed Dispositions $386M $386M Effects Not Assumed in FFO Outlook: Potential Additional Dispositions $100M $250M Potential Acquisitions $0M $85M Potential Development Announcements $100M $400M Supplemental Information The Company's third quarter 202 6 Supplemental Information, which includes financial, leasing and operational statistics, is available in the "Investors/Financials" section of the Company's website at www.highwoods.com. Conference Call Tomorrow, Wednesday, October 28th, at 11:00 a.m. Eastern time, Highwoods will host a teleconference call to discuss the matters highlighted in this release. Webcast link: Highwoods Properties Q3 2026 Earnings Call US/Canada Dial-in: (833) 461-5787 Meeting ID: 767 718 045 International Dial-in: (585) 542-9983 Meeting ID: 767 718 045 A live, listen-only webcast and a subsequent replay can be accessed through the Company’s website at www.highwoods.com under the “Investors” section.
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P a g e | 5 Highwoods Planned Dates for 2027 Financial Releases and Conference Calls The Company has set the following dates in 202 7 for the releases of quarterly financial results. The financial releases will be distributed after the market closes and conference calls will be held at 11:00 a.m. Eastern time. Quarter Tuesday Release Wednesday Call Fourth February 9 February 10 First April 27 April 28 Second July 27 July 28 Third October 26 October 27 Non-GAAP Information FFO: We believe that FFO and FFO per share are beneficial to management and investors and are important indicators of the performance of any equity REIT. Because FFO and FFO per share calculations exclude such factors as depreciation, amortization and impairment s of real estate assets and gains or losses from sales of operating real estate assets, which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful life estimates, they facilitate comparisons of opera ting performance between periods and between other REITs. Management believes that historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, management believes that the use of FFO and FFO per share, together with the required GAAP presentations, provide a more complete understanding of our performance relative to our com petitors and a more informed and appropriate basis on which to make decisions involving operating, financing and investing activities. FFO and FFO per share are non-GAAP financial measures and therefore do not represent net income or net income per share as defined by GAAP. Net income and net income per share as defined by GAAP are the most relevant measures in determining our operating performance because FFO and FFO per share include adjustments that investors may deem subjective, such as adding back expenses such as depreciation, amortization and impairment. Furthermore, FFO per share does not depict the amount that accrues directly to the stockholders’ benefit. Accordingly, FFO and FFO per share should never be considered as alternatives to net income or net income per share as indic ators of our operating performance. Our presentation of FFO is consistent with FFO as defined by NAREIT, which is calculated as follows: • Net income/(loss) computed in accordance with GAAP; • Less net income, or plus net loss, attributable to noncontrolling interests in consolidated affiliates; • Plus depreciation and amortization of depreciable operating properties; • Less gains, or plus losses, from sales of depreciable operating properties, plus impairments on depreciable operating properties and excluding items that are classified as extraordinary items under GAAP; • Plus or minus our share of adjustments, including depreciation and amortization of depreciable operating properties, for unconsolidated joint venture investments (to reflect funds from operations on the same basis); and • Plus or minus adjustments for depreciation and amortization and gains/(losses) on sales of depreciable operating properties, plus impairments on depreciable operating properties, and noncontrolling interests in consolidated affiliates related to discontinued operations. In calculating FFO, the Company includes net income attributable to noncontrolling interests in its operating partnership, which we believe is consistent with standard industry practice for REITs that
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P a g e | 6 Highwoods operate through an UPREIT structure. We believe that it is important to present FFO on an as-converted basis since all of the operating partnership units not owned by the Company are redeemable on a one- for-one basis for shares of the Company’s common stock. In calculating FFO available for common stockholders and FFO per diluted share, the Company further deducts dividends on preferred stock. The Company’s FFO calculations are reconciled to net income in a table included with this release. Net operating income (“NOI”): We define NOI as “Rental and other revenues” less “Rental property and other expenses”. We define cash NOI as NOI less lease termination fees, straight-line rental income, amortization of lease incentives and amortization of acquired above and below market leases. Management believes that NOI and cash NOI are useful supplemental measures of the Company’s property operating performance because they provide performance measure s of the revenues and expenses directly involved in owning real estate assets and a perspective not immediately apparent from net income or FFO. Other REITs may use different methodologies to calculate NOI and accordingly the Company’s NOI may not be comparable to other REITs. The Company’s NOI calculations are reconciled to net income in a table included with this release. Same property NOI: We define same property NOI as NOI for in-service wholly-owned and joint venture properties that were owned during the entirety of the periods presented (from January 1, 202 5 to September 30, 2026). The Company’s same property NOI calculations are reconciled to NOI in a table included with this release. Earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre"): Our presentation of EBITDAre is consistent with EBITDAre as defined by NAREIT, which is calculated as follows: • Net income/(loss) computed in accordance with GAAP; • Plus interest expense; • Plus income tax expense; • Plus depreciation and amortization; • Less gains, or plus losses, from sales of depreciable operating properties, plus impairments on depreciable operating properties; and • Plus or minus our share of the same adjustments for unconsolidated joint venture investments. Management believes EBITDAre is an appropriate supplemental measure to use in ratios that evaluate the Company's liquidity and financial condition and ability to service its long-term debt obligations. Other REITs may use different methodologies to calcula te EBITDAre and accordingly the Company's EBITDAre may not be comparable to other REITs. The Company's EBITDAre calculations are reconciled to net income in a table included with this release. Adjusted e arnings before interest, taxes, depreciation and amortization for real estate (" Adjusted EBITDAre") is calculated as follows: • EBITDAre as defined by NAREIT; • Less gains, or plus losses, on debt extinguishment; • Less gains, or plus losses, from sales of non -depreciable properties, plus impairments on non- depreciable properties; • Plus or minus proforma NOI adjustments assuming any acquisitions, dispositions and developments placed in service within the current period had occurred as of the first day of such period; and • Plus or minus our share of the same adjustments for unconsolidated joint venture investments.
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P a g e | 7 Highwoods Management believes Adjusted EBITDAre is an appropriate supplemental measure to use in ratios that evaluate the Company's liquidity and financial condition and ability to service its long -term debt obligations. Other REITs may use different methodologies to calculate Adjusted EBITDAre and accordingly the Company's Adjusted EBITDAre may not be comparable to other REITs. The Company's Adjusted EBITDAre calculations are reconciled to net income in a table included with this release. Property-level operational information: Except as otherwise noted, all property -level operational information presented herein includes in-service wholly owned properties and in-service properties owned by consolidated and unconsolidated joint ventures (at our share). About Highwoods Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (“REIT”) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh and Tampa. Our vision is to be a leader in the evolution of commercial real estate for the benefit of our customers, our communities and those who invest with us. Our mission is to create environments and experiences that inspire our teammates and our customers to achieve more together. We are in the work-placemaking business and believe that by creating exceptional environments and experiences, we can deliver greater value to our customers, their teammates and, in turn, our shareholders. For more information about Highwoods, please visit our website at www.highwoods.com. Forward-Looking Statements Some of the information in this press release may contain forward-looking statements. Such statements include, in particular, statements about our plans, strategies and prospects such as the following: the expected financial and operational results and the related assumptions underlying our expected results; the planned sales of non -core assets and expected pricing and impact with respect to such sales, including the tax impact of such sales; the anticipated total investment, projected leasing activity, estimated replacement cost and expected net operating income of acquired properties and properties to be developed; and expected future leverage of the Company. You can identify forward -looking statements by our use of forward -looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “contin ue” or other similar words. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward -looking statements are reasonable, we cannot assure you that our plans, intentions or expectations will be achieved. Factors that could cause our actual results to differ materially from Highwoods’ current expectations include, among others, the following : the financial condition of our customers could deteriorate; our assumptions regarding potential losses related to customer financial difficulties could prove incorrect; counterparties under our debt instruments, particularly our revolving credit facility, may attempt to avoid their obligations thereunder, which, if successful, would reduce our available liquidity; we may not be able to lease or re-lease second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorable terms as old leases; we may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; we may not be able to complete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated; development activity in our existing markets could result in an excessive supply relative to customer demand; our markets may suffer declines in economic and/or office employment growth; increases in interest rates could increase our debt service costs; increases in operating expenses could negatively impact our operating results; natural disasters and climate change could have an adverse impact on our cash flow and operating results; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or repay or refinance outstanding debt upon maturity; and the Company could lose key executive officers.
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P a g e | 8 Highwoods This list of risks and uncertainties, however, is not intended to be exhaustive. You should also review the other cautionary statements we make in “Risk Factors” set forth in our 2025 Annual Report on Form 10-K. Given these uncertainties, you should not place undue reliance on forward -looking statements. We undertake no obligation to publicly release the results of any revisions to these forward -looking statements to reflect any future events or circumstances or to reflect the occurrence of unanticipated events. Tables Follow
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Highwoods Properties, Inc. Consolidated Statements of Income (Unaudited and in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Rental and other revenues 218,183$ 201,773$ 648,596$ 602,756$ Operating expenses: Rental property and other expenses 71,612 65,923 212,885 194,612 Depreciation and amortization 79,477 73,898 236,068 219,982 Impairments of real estate assets - 8,800 - 8,800 General and administrative 9,850 8,995 33,181 31,771 Total operating expenses 160,939 157,616 482,134 455,165 Interest expense 40,608 38,475 123,998 112,782 Other income 3,092 1,753 8,828 8,007 Gains on disposition of property 13,582 5,674 109,569 87,889 Equity in earnings of unconsolidated affiliates 768 598 3,339 2,223 Net income 34,078 13,707 164,200 132,928 Net (income) attributable to noncontrolling interests in the Operating Partnership (583) (256) (2,878) (2,577) Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (1,171) 2 (3,013) 28 Dividends on Preferred Stock (574) (576) (1,722) (1,783) Net income available for common stockholders 31,750$ 12,877$ 156,587$ 128,596$ Earnings per Common Share - basic: Net income available for common stockholders 0.29$ 0.12$ 1.42$ 1.19$ Weighted average Common Shares outstanding - basic 110,306 108,403 110,211 107,973 Earnings per Common Share - diluted: Net income available for common stockholders 0.29$ 0.12$ 1.42$ 1.19$ Weighted average Common Shares outstanding - diluted 112,323 110,522 112,230 110,113
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Highwoods Properties, Inc. Consolidated Balance Sheets (Unaudited and in thousands, except share and per share data) September 30, December 31, 2026 2025 Assets: Real estate assets, at cost: Land 598,043$ 609,177$ Buildings and tenant improvements 6,205,052 6,144,697 Development in-process - 6,248 Land held for development 201,723 214,149 7,004,818 6,974,271 Less-accumulated depreciation (1,924,818) (1,902,276) Net real estate assets 5,080,000 5,071,995 Real estate and other assets, net, held for sale 21,697 23,201 Cash and cash equivalents 279,205 27,358 Restricted cash 19,480 15,691 Accounts receivable 22,497 28,263 Mortgages and notes receivable 12,227 12,228 Accrued straight-line rents receivable 312,772 318,024 Investments in and advances to unconsolidated affiliates 354,368 471,580 Deferred leasing costs, net of accumulated amortization of $179,599 and $169,972, respectively 280,906 244,258 Prepaid expenses and other assets, net of accumulated depreciation of $28,648 and $25,144, respectively 64,063 61,240 Total Assets 6,447,215$ 6,273,838$ Liabilities, Noncontrolling Interests in the Operating Partnership and Equity: Mortgages and notes payable, net 3,511,810$ 3,554,178$ Accounts payable, accrued expenses and other liabilities 310,426 284,006 Total Liabilities 3,822,236 3,838,184 Commitments and contingencies Noncontrolling interests in the Operating Partnership 58,541 52,777 Equity: Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 26,631 and 26,691 shares issued and outstanding, respectively 26,631 26,691 Common Stock, $.01 par value, 200,000,000 authorized shares; 110,315,322 and 109,905,241 shares issued and outstanding, respectively 1,103 1,099 Additional paid-in capital 3,224,586 3,223,767 Distributions in excess of net income available for common stockholders (878,764) (870,083) Accumulated other comprehensive loss (1,641) (2,494) Total Stockholders' Equity 2,371,915 2,378,980 Noncontrolling interests in consolidated affiliates 194,523 3,897 Total Equity 2,566,438 2,382,877 Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity 6,447,215$ 6,273,838$
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Highwoods Properties, Inc. Funds from Operations (Unaudited and in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Funds from operations: Net income 34,078$ 13,707$ 164,200$ 132,928$ Net (income)/loss attributable to noncontrolling interests in consolidated affiliates (1,171) 2 (3,013) 28 Depreciation and amortization of real estate assets 75,636 73,222 224,985 217,946 Impairments of depreciable properties - 8,800 - 8,800 Gains on disposition of depreciable properties (13,582) (5,674) (105,609) (88,011) Unconsolidated affiliates: Depreciation and amortization of real estate assets 5,695 5,318 15,939 14,262 Funds from operations 100,656 95,375 296,502 285,953 Dividends on Preferred Stock (574) (576) (1,722) (1,783) Funds from operations available for common stockholders 100,082$ 94,799$ 294,780$ 284,170$ Funds from operations available for common stockholders per share 0.89$ 0.86$ 2.63$ 2.58$ Weighted average shares outstanding (1) 112,323 110,522 112,230 110,113 (1) Includes assumed conversion of all potentially dilutive Common Stock equivalents.
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Highwoods Properties, Inc. Net Operating Income Reconciliation (Unaudited and in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net income 34,078$ 13,707$ 164,200$ 132,928$ Equity in earnings of unconsolidated affiliates (768) (598) (3,339) (2,223) Gains on disposition of property (13,582) (5,674) (109,569) (87,889) Other income (3,092) (1,753) (8,828) (8,007) Interest expense 40,608 38,475 123,998 112,782 General and administrative expenses 9,850 8,995 33,181 31,771 Impairments of real estate assets - 8,800 - 8,800 Depreciation and amortization 79,477 73,898 236,068 219,982 Net operating income 146,571 135,850 435,711 408,144 Our share of unconsolidated joint venture same property net operating income 3,980 4,116 13,657 12,368 Partner's share of consolidated joint venture same property net operating income (268) (287) (831) (833) Non same property and other net operating income (17,801) (13,065) (57,431) (35,751) Same property net operating income 132,482$ 126,614$ 391,106$ 383,928$ Same property net operating income 132,482$ 126,614$ 391,106$ 383,928$ Lease termination fees, straight-line rent and other non-cash adjustments (9,067) (3,436) (20,658) (12,285) Same property cash net operating income 123,415$ 123,178$ 370,448$ 371,643$
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Highwoods Properties, Inc. Net Debt-to-Adjusted EBITDAre (Unaudited and in thousands, except ratios) Three Months Ended September 30, 2026 2025 Net debt-to-Adjusted EBITDAre: Net income 34,078$ 13,707$ Interest expense, net (1) 37,922 37,092 Depreciation and amortization 79,477 73,898 Gains on disposition of depreciable properties (13,582) (5,674) Impairments of depreciable properties - 8,800 Adjustments to reflect our share of EBITDAre from consolidated and unconsolidated affiliates 3,801 5,877 EBITDAre 141,696$ 133,700$ (Gains)/Losses on debt extinguishment (2) 144 Proforma NOI adjustments for property changes within period (908) 935 Adjusted EBITDAre (2) 140,786$ 134,779$ Adjusted EBITDAre (annualized) (2) (3) 563,144$ 536,746$ Mortgages and notes payable, net (4) 3,715,115$ 3,450,911$ Less - cash and cash equivalents, preferred investments and other (5) (296,325) (39,291) Net debt (6) 3,418,790$ 3,411,620$ Preferred Stock 26,631 26,691 Net debt plus Preferred Stock 3,445,421$ 3,438,311$ Net debt-to-Adjusted EBITDAre (7) 6.07x 6.36x Net debt plus Preferred Stock-to-Adjusted EBITDAre (8) 6.12x 6.41x (1) Net of interest income (2) Adjusted EBITDAre is calculated as EBITDAre adjusted for gains or losses on debt extinguishment and land sales, land impairments, proforma NOI adjustments for property changes within period and our share of the same adjustments for unconsolidated affiliates. "Proforma NOI adjustments for property changes within period" means proforma NOI adjustments assuming any acquisitions, dispositions and developments placed in service within the current period had occurred as of the first day of such period. (3) Adjusted EBITDAre (annualized) is Adjusted EBITDAre multiplied by four. Certain period specific items are not annualized. (4) This number as of 9/30/26 represents our consolidated mortgages and notes payable balance from the balance sheet, plus or minus the following adjustments: an increase of $249.5 million for our share of debt owed by our unconsolidated joint ventures to third parties, a decrease of $8.8 million for our joint venture partner's 20% share of the debt at our consolidated Midtown West joint venture, and a decrease of $37.4 million for mortgages and notes receivable from loans to unconsolidated affiliates (after eliminations) and loans to third parties as seller financing. (5) Includes our share of consolidated and unconsolidated affiliates. (6) Net debt is calculated as mortgages and notes payable at quarter-end less cash and cash equivalents, preferred investments and 1031 restricted cash at quarter-end. (7) Net debt at quarter-end divided by Adjusted EBITDAre (annualized). (8) Net debt plus Preferred Stock at quarter-end divided by Adjusted EBITDAre (annualized).