Highwoods Beats by a Penny - Analyst Blog
February 15 2012 - 5:15AM
Zacks
Highwoods Properties Inc
(HIW) reported FFO (fund from operations)
of $53.2 million or 70 cents per share in the fourth quarter of
2011 compared with $46.8 million or 62 cents per share in the
year-earlier quarter. Fund from operations, a widely used metric to
gauge the performance of REITs, is obtained after adding
depreciation and amortization and other non-cash expenses to net
income.
Excluding one-time charges, FFO in
the quarter stood at 70 cents per share as opposed to 63 cents per
share in the year-earlier quarter. Recurring FFO also surpassed the
Zacks Consensus Estimate by a penny.
The company reported FFO (fund from
operations) of $190.2 million or $2.50 per share in fiscal year
2011 compared with $184.7 million or $2.44 per share in fiscal
2010.
Excluding one-time charges, FFO in
fiscal 2011 stood at $2.58 per share compared with $2.46 per share
in the prior year.
Total revenue during the quarter
was $128.7 million compared with $117.3 million in the prior-year
quarter.
Total revenue during fiscal 2011
was $482.8 million compared with $461.1 million in 2010.
Average in-place cash rental rates
during the quarter expanded 2.5% year over year across the entire
portfolio. Within the office portfolio, rent crept up 2.8%
(GAAP) but decreased 8.1% (cash) on a yearly basis, while for the
industrial and retail portfolio rent decreased 1.4% (GAAP) and 4.9%
(cash), but increased 32.3% (GAAP) and 18.1% (cash),
respectively.
Overall occupancy was 90% at the
end of fiscal 2011and same property occupancy stood at 90.8%.
The company leased 4.3 million
square feet of space,of first and second generation office
space, up 19% from a year ago and achieved aweighted
average lease term of 5.6 years on second generation office
leasing,.
Highwoods deployed $308.9 million
in acquisitions and announced $48.4 million development project.
The company also closed $24.7 million of dispositions in fiscal
year 2011.
Cash NOI (net operating income)
decreased 0.9% and 0.8%, respectively, for the quarter and fiscal
year 2011.
At quarter end, Highwoods had $11.2
million in cash and cash equivalents. The company executed a $475
million credit facility with a four-year term and one year
extension option.
For full-year 2012, Highwoods
expects FFO in the range of $2.56 to $2.76 per share. The company
expects occupancy in the range of 89.5% - 91.5% and same property
cash NOI growth in the range of 1.0%- for full year 2012.
Highwoods currently retains a Zacks
#3 Rank, which translates into a short-term Hold rating. We are
also maintaining our long-term Neutral recommendation on the stock.
One of its competitors, Cousins Properties Inc.
(CUZ) holds a Zacks #2 Rank, which
translates into a short-term Buy rating.
COUSIN PROP INC (CUZ): Free Stock Analysis Report
HIGHWOODS PPTYS (HIW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Cousins Properties (NYSE:CUZ)
Historical Stock Chart
From May 2024 to Jun 2024
Cousins Properties (NYSE:CUZ)
Historical Stock Chart
From Jun 2023 to Jun 2024