EXHIBIT 99.2

Supplemental Operating and Financial Information

June 30, 2003

Supplemental Information

Table of Contents

June 30, 2003

Schedule	Page
Summary and Corporate Information	i, ii and iii
Consolidated Statement of Operations	1
Statement of Funds from Operations	2
Consolidated Balance Sheet	3
Estimated Net Asset Value	4
Combined Financial Information	5
Components of Discontinued Operations	6
Capitalization	7
Long-Term Debt Summary	8
Long-Term Debt Detail	9
Portfolio Summary	10, 11 and 12
Occupancy Trends	13
Leasing Statistics	14, 15 and 16
Leasing Statistics by Market	17
Rental Rate Comparisons by Market	18
Lease Expirations	19 and 20
Office Lease Expirations by Market by Quarter	21
Industrial Lease Expirations by Market by Quarter	22
Office Lease Expirations by Market by Year	23
Industrial Lease Expirations by Market by Year	24
Customer Diversification	25
Same Property Performance	26
Acquisition Activity	27
Disposition Activity and Assets Contributed to Joint Ventures	28
Development and Developments Placed in Service 2003	29
Development Land	30
Unconsolidated Joint Ventures Assets, Debt and Liabilities	31
Unconsolidated Joint Ventures Income (Three Months)	32
Unconsolidated Joint Ventures Income (Six Months)	33
Unconsolidated Joint Ventures Long-Term Debt Detail	34
Portfolio Summary Unconsolidated Joint Ventures	35
Unconsolidated Joint Ventures Expirations	36
Unconsolidated Joint Ventures Development	37

The information within refers to all Highwoods Properties' consolidated entities, except pages 31 to 37 unless noted otherwise.

Certain matters discussed in this supplemental, including estimates of net operating income, pre-leasing commitments and the cost, timing and stabilization of announced development projects, are forward- looking statements within the meaning of the federal securities laws. Although Highwoods believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from Highwoods’ current expectations include general economic conditions, local real estate conditions, the timely development and lease-up of properties, and the other risks detailed from time to time in the Company’s SEC reports.

Summary

Dollars in thousands, except per share amounts

	Three Months Ended
		06/30/03			06/30/02			Change F/(U)
Operations
Revenue from continuing operations	$	105,659		$	107,863		$	(2,204	)
Rental Property Expense from continuing operations		36,870			34,248			(2,622	)
Net Operating Income from continuing operations	$	68,789		$	73,615		$	(4,826	)
Revenue from discontinued operations	$	6,483		$	11,514		$	(5,031	)
Property Expense from discontinued operations		1,436			3,146			1,710
Net Operating Income from discontinued operations	$	5,047		$	8,368		$	(3,321	)
Interest and other income	$	3,229		$	2,695		$	534
Equity in earnings of unconsolidated affiliates		(485	)		2,475			(2,960	)
General and administrative		6,524			9,047			2,523
G&A as a % of Revenue and Other Income		5.7	%		7.3	%		1.6	%
EBITDA calculation
Net Income before extraordinary item	$	10,120		$	27,750		$	17,630
Addback Depreciation and amortization		32,781			31,568			(1,213	)
Addback Interest Expense		29,007			27,458			(1,549	)
EBITDA	$	71,908		$	86,776		$	(14,868	)
Interest Expense from continuing operations	$	28,579		$	27,028		$	(1,551	)
Interest Expense from discontinued operations		428			430			2
EBITDA/Interest Expense		2.48			3.16			(0.68	)
EBITDA/Interest Expense + Preferred Dividends		1.96			2.47			(0.51	)
Net Income	$	10,120		$	27,750		$	(17,630	)
Funds from Operation		39,657			51,147			(11,490	)
Cash available for distribution		25,522			47,252			(21,730	)
Per Share—Diluted:
Net Income	$	0.05		$	0.37		$	(0.32	)
Funds from operations		0.66			0.84			(0.18	)
Dividends paid		0.425			0.585			(0.16	)
Dividends paid as % of funds from operations		64.3	%		69.6	%		5.3	%
Dividends paid as % of cash available for distribution		100.0	%		75.3	%		-24.7	%
		06/30/03			06/30/02			Change F/(U)
Capitalization
Total Assets	$	3,362,033		$	3,565,765		$	(203,732	)
Market Capitalization:
Total Debt		1,579,265			1,675,358			(96,093	)
Market Value of Common Equity		1,708,688			1,949,561			(240,873	)
Total Market Capitalization	$	3,287,953		$	3,624,919		$	(336,966	)
Total Debt/Total Assets		47.0	%		47.0	%		0.0	%
		06/30/03			06/30/02			Change F/(U)
Portfolio
Total Square Footage		36,822,000			37,906,000			(1,084,000	)
Occupancy		83.4	%		86.2	%		-2.8	%
Same Property NOI	$	68,352		$	74,814		$	(6,462	)

i

Corporate Information

Board of Directors	Research Coverage
Thomas W. Adler	Banc of America Securities
Gene H. Anderson	Lee Schalop - 212-847-5677
Kay N. Callison
Edward J. Fritsch	Davenport & Company, LLC
Ronald P. Gibson	Rob Norfleet - 804-780-2170
William E. Graham Jr.
Lawrence S. Kaplan	Deutsche Banc Alex. Brown
L. Glenn Orr Jr.	Lou Taylor - 212-469-4912
O. Temple Sloan Jr., Chairman
Willard H. Smith Jr.	Green Street Advisors
John L. Turner	John Lutzius - 949-640-8780
F. William Vandiver, Jr.
	Legg Mason
Senior Management Team	David Fick - 410-454-5018
Ronald P. Gibson	McDonald Investments, Inc.
President, Chief Executive Officer and Director	Anatole Pevnev - 216-263-4783
Edward J. Fritsch	Morgan Stanley Dean Witter
Executive Vice President, Chief Operating	Gregory Whyte - 212-761-6331
Officer, Director and Secretary
	Prudential Securities
Gene H. Anderson	Jim Sullivan - 212-778-2515
Senior Vice President and Director
	Smith Barney Citigroup
Michael F. Beale	Jonathan Litt - 212-816-0231
Senior Vice President
	UBS Warburg
Michael E. Harris	Keith Mills - 212-713-3098
Senior Vice President
	Wachovia Securities
Carman J. Liuzzo	Chris Haley - 443-263-6773
Vice President, Chief Financial Officer
and Treasurer
Mack D. Pridgen III
Vice President, General Counsel and
Assistant Secretary

ii

Corporate Information

Divisional Offices	Corporate Headquarters
Atlanta/Piedmont Triad	Highwoods Properties, Inc.
Gene H. Anderson - Regional Manager	3100 Smoketree Court, Suite 600
	Raleigh, NC 27604
Atlanta, GA	919-872-4924
Gene H. Anderson, Senior Vice President
	Stock Exchange
Piedmont Triad, NC
Mark W. Shumaker, Vice President	NYSE         Trading Symbol: HIW
Orlando/Tampa	Investor Relations Contact
Michael F. Beale - Regional Manager
	Tabitha Zane
Orlando, FL	Sr. Director, Investor Relations
Michael F. Beale, Senior Vice President	Phone: 919-431-1529
	Fax: 919-876-6929
Tampa, FL	E-mail: tabitha.zane@highwoods.com
Stephen A. Meyers, Vice President
	Information Request
Research Triangle/Richmond
	To request a standard Investor Relations package, Annual Report
Research Triangle, NC	or to be added to our e-mail or fax list, please contact the
Edward J. Fritsch, Executive Vice President	Investor Relations Coordinator at:
	Phone: 919-875-6717 or 800-256-2963
Richmond, VA	Email: HIW-IR@highwoods.com
Paul W. Kreckman, Vice President
	The Company
Kansas City/Charlotte/Memphis/
Nashville	Highwoods Properties, Inc. is a fully integrated, self-administered
Michael E. Harris - Regional Manager	real estate investment trust (“REIT”) that provides leasing, management,
	development, construction and other customer-related services for
Kansas City, MO	its properties and for third parties. As of June 30, 2003, the Company
Barrett Brady, Senior Vice President	owns or has an interest in 564 in-service office, industrial and
	retail properties encompassing approximately 44.6 million square feet.
Charlotte, NC	Highwoods also owns approximately 1,360 acres of development land.
Thomas F. Cochran, Senior Vice President	Highwoods is based in Raleigh, North Carolina, and its properties and
	development land are located in Florida, Georgia, Iowa, Kansas,
Memphis, TN	Missouri, North Carolina, South Carolina, Tennessee and Virginia.
Michael E. Harris, Senior Vice President	For more information about Highwoods Properties, please visit our
	Web site at www.highwoods.com.
Nashville, TN
W. Brian Reames, Vice President

iii

Consolidated Statements of Income

Dollars in thousands, except per share amounts

	Six Months Ended						Three Months Ended
	06/30/03			06/30/02			06/30/03			03/31/03			12/31/02			09/30/02			06/30/02
Rental revenue	$	211,629		$	221,108		$	105,659		$	105,970		$	109,127		$	110,926		$	107,863
Operating expenses:
Rental property		73,524			69,733			36,870			36,654			35,275			35,552			34,248
Depreciation and amortization		64,856			57,666			32,412			32,444			35,850			30,146			28,955
Interest expense:
Contractual		55,496			52,291			27,822			27,674			29,751			27,092			26,687
Amortization of deferred financing costs		1,383			680			757			626			366			347			341
		56,879			52,971			28,579			28,300			30,117			27,439			27,028
General and administrative includes $3,700 and $3,514 of nonrecurring compensation expense in the six and three months ended 6/30/02, respectively		11,868			14,403			6,524			5,344			6,026			4,147			9,047
Litigation reserve		—			—			—			—			—			2,700			—
Total operating expenses		207,127			194,773			104,385			102,742			107,268			99,984			99,278
Other income:
Interest and other income		6,116			6,033			3,229			2,887			4,791			2,804			2,695
Equity in earnings/(loss) of unconsolidated affiliates		1,276			5,039			(485	)		1,761			1,765			1,259			2,475
		7,392			11,072			2,744			4,648			6,556			4,063			5,170
Income before gain/(loss) on disposition of land and depreciable assets, minority interest, discontinued operations and extraordinary item		11,894			37,407			4,018			7,876			8,415			15,005			13,755
Gain on disposition of land		2,275			5,757			1,412			863			396			741			5,989
Gain/(loss) on disposition of depreciable assets		240			5,379			220			20			(197	)		171			4,203
Income before minority interest, discontinued operations and extraordinary item		14,409			48,543			5,650			8,759			8,614			15,917			23,947
Minority interest		(1,702	)		(5,845	)		(656	)		(1,046	)		(983	)		(1,969	)		(2,851	)
Income from continuing operations		12,707			42,698			4,994			7,713			7,631			13,948			21,096
Discontinued operations:
Income from discontinued operations, net of minority int		7,410			10,038			3,781			3,629			4,134			4,535			4,768
Gain on sale of discontinued operations, net of minority int		1,175			1,886			1,345			(170	)		12,252			(3,283	)		1,886
		8,585			11,924			5,126			3,459			16,386			1,252			6,654
Net income before extraordinary item		21,292			54,622			10,120			11,172			24,017			15,200			27,750
Extraordinary item – loss on early extinguishment of debt		—			—			—			—			—			(378	)		—
Net income		21,292			54,622			10,120			11,172			24,017			14,822			27,750
Dividends on preferred shares		(15,426	)		(15,426	)		(7,713	)		(7,713	)		(7,713	)		(7,713	)		(7,713	)
Net income available for common stockholders	$	5,866		$	39,196		$	2,407		$	3,459		$	16,304		$	7,109		$	20,037
Net income per common share-diluted:
(Loss)/income from continuing operations	$	(0.05	)	$	0.51		$	(0.05	)	$	—		$	(0.00	)	$	0.12		$	0.25
Income from discontinued operations	$	0.16		$	0.22		$	0.10		$	0.06		$	0.30		$	0.03		$	0.12
Extraordinary item – loss on early extinguishment of debt	$	—		$	—		$	—		$	—		$	—		$	(0.01	)	$	—
Net income	$	0.11		$	0.73		$	0.05		$	0.06		$	0.30		$	0.14		$	0.37
Weighted average common shares outstanding – diluted		53,395			53,512			53,315			53,475			53,407			53,604			53,691
Rental property expenses / Rental revenue		34.7	%		31.5	%		34.9	%		34.6	%		32.3	%		32.1	%		31.8	%

Page 1

Statement of Funds from Operations

Dollars in thousands, except per share amounts

	Six Months Ended						Three Months Ended
	06/30/03			06/30/02			06/30/03			03/31/03			12/31/02			09/30/02			06/30/02
Funds from operations:
Net income	$	21,292		$	54,622		$	10,120		$	11,172		$	24,017		$	14,822		$	27,750
Add/(Deduct):
Depreciation and amortization		64,856			57,666			32,412			32,444			35,850			30,146			28,955
Gain/(loss) on disposition of depreciable assets		(240	)		(5,379	)		(220	)		(20	)		197			(171	)		(4,203	)
Minority interest		1,702			5,845			656			1,046			983			1,969			2,851
Extraordinary item – loss on early extinguishment of debt		—			—			—			—			—			378			—
Dividends to preferred shareholders		(15,426	)		(15,426	)		(7,713	)		(7,713	)		(7,713	)		(7,713	)		(7,713	)
Unconsolidated affiliates:
Depreciation and amortization		4,904			4,633			2,489			2,415			2,554			2,432			2,149
Loss on disposition of depreciable assets		2,413			—			2,413			—			—			—			—
Loss on early extinguishment of debt		—			—			—			—			—			309			—
Discontinued operations:
Depreciation and amortization		1,219			5,268			369			850			2,166			2,681			2,613
Gain/(loss) on sale, net of minority interest		(1,175	)		(1,886	)		(1,345	)		170			(12,252	)		3,283			(1,886	)
Minority interest in income		943			1,364			476			467			545			598			631
Funds from operations		80,488			106,707			39,657			40,831			46,347			48,734			51,147
Cash available for distribution:
Add/(Deduct):
Rental income from straight-line rents		(3,365	)		(1,318	)		(1,680	)		(1,685	)		(1,132	)		(1,222	)		1,049
Non-recurring compensation expense		—			3,700			—			—			—			—			3,514
Litigation reserve		—			—			—			—			—			2,700			—
Amortization of deferred financing costs		1,383			680			757			626			366			347			341
Non-incremental revenue generating capital expenditures paid:
Building improvements		(5,525	)		(3,121	)		(2,734	)		(2,791	)		(3,086	)		(1,740	)		(2,370	)
2nd generation tenant improvements		(11,420	)		(6,911	)		(6,932	)		(4,488	)		(7,796	)		(5,824	)		(3,380	)
2nd generation lease commissions		(6,914	)		(5,659	)		(3,546	)		(3,368	)		(2,968	)		(3,694	)		(3,049	)
		(23,859	)		(15,691	)		(13,212	)		(10,647	)		(13,850	)		(11,258	)		(8,799	)
Cash available for distribution	$	54,647		$	94,078		$	25,522		$	29,125		$	31,731		$	39,301		$	47,252
Weighted average share/units
outstanding-diluted		60,193			60,767			60,028			60,360			60,437			60,653			60,849
Per common share/common unit-diluted:
Funds from operations	$	1.34		$	1.76		$	0.66		$	0.68		$	0.77		$	0.80		$	0.84
Dividends paid	$	1.010		$	1.170		$	0.425		$	0.585		$	0.585		$	0.585		$	0.585
Dividend payout ratios:
Funds from operations		75.5	%		66.6	%		64.3	%		86.5	%		76.3	%		72.8	%		69.6	%
Cash available for distribution		111.3	%		75.6	%		100.0	%		121.2	%		111.4	%		90.3	%		75.3	%
Ratios:
FFO growth from prior year		-24	%		-8	%		-21	%		-25	%		-16	%		-6	%		-6	%
Net cash provided by/(used in):
Operating activities	$	73,873		$	97,690		$	35,067		$	38,806		$	30,312		$	73,483		$	54,868
Investing activities		(13,623	)		66,799			6,565			(20,188	)		110,308			18,480			54,361
Financing activities		(58,242	)		(150,871	)		(47,811	)		(10,431	)		(143,601	)		(92,159	)		(98,898	)
Net increase/(decrease) in cash and cash equivalents	$	2,008		$	13,618		$	(6,179	)	$	8,187		$	(2,981	)	$	(196	)	$	10,331
	Six Months Ended
	06/30/03			06/30/02
Supplemental Capital Expenditure Disclosure
Development cost:
Shell construction and predevelopment costs	$	1,457		$	27,660
1st generation tenant improvements		8,441			7,180
1st generation lease commissions		1,482			3,557
Nonrecurring property renovation cost		5,137			1,111
Acquisitions		15,787			7,625
Furniture Fixture and Equipment		280			444
	$	32,584		$	47,577
Non-incremental revenue generating capital expenditures paid:		23,859			15,691
Total per the Statement of Cash Flows	$	56,443		$	63,268

Page 2

Consolidated Balance Sheets

Dollars in thousands

	06/30/03			03/31/03			12/31/02			09/30/02			06/30/02
Assets:
Real estate assets, at cost:
Land and improvements	$	383,520		$	383,216		$	386,051		$	417,086		$	432,153
Buildings and tenant improvements		2,808,274			2,799,117			2,792,306			2,807,266			2,865,516
Development in process		9,499			7,663			6,729			39,919			54,333
Land held for development		172,153			161,952			162,762			158,248			175,139
Furniture, fixtures and equipment		21,223			21,150			20,966			20,479			19,842
		3,394,669			3,373,098			3,368,814			3,442,998			3,546,983
Less-accumulated depreciation		(503,077	)		(481,333	)		(455,337	)		(441,140	)		(423,875	)
Net real estate assets		2,891,592			2,891,765			2,913,477			3,001,858			3,123,108
Property held for sale		201,143			232,756			221,720			245,481			167,173
Cash and cash equivalents		13,025			19,204			11,017			13,998			14,194
Restricted cash		3,163			2,943			8,582			2,702			4,556
Accounts receivable, net of allowance		13,902			12,723			13,578			19,298			16,211
Notes receivable		27,617			32,077			31,057			31,914			33,181
Accrued straight-line rents receivable		51,703			50,462			48,777			50,191			49,407
Investment in unconsolidated affiliates		76,499			78,229			79,504			80,825			79,603
Other assets:
Deferred leasing costs		100,462			96,752			97,143			103,699			107,536
Deferred financing costs		42,544			42,548			26,120			25,964			25,916
Prepaid expenses and other		16,882			16,388			15,295			13,400			12,086
		159,888			155,688			138,558			143,063			145,538
Less-accumulated amortization		(76,499	)		(72,815	)		(70,901	)		(70,375	)		(67,206	)
Other assets, net		83,389			82,873			67,657			72,688			78,332
Total Assets	$	3,362,033		$	3,403,032		$	3,395,369		$	3,518,955		$	3,565,765
Liabilities and Stockholders’ Equity
Mortgages and notes payable	$	1,579,265		$	1,580,301		$	1,528,720		$	1,626,362		$	1,675,358
Accounts payable, accrued expenses and other liabilities		102,949			108,808			120,614			131,087			99,275
Total Liabilities		1,682,214			1,689,109			1,649,334			1,757,449			1,774,633
Minority interest		177,104			183,297			188,563			191,114			192,879
Stockholders’ Equity:
Preferred stock		377,445			377,445			377,445			377,445			377,445
Common stock		531			535			534			534			534
Additional paid-in capital		1,383,568			1,392,118			1,390,043			1,389,595			1,390,238
Distributions in excess of net earnings		(245,751	)		(225,430	)		(197,647	)		(182,719	)		(157,223	)
Accumulated other comprehensive loss		(7,831	)		(8,767	)		(9,204	)		(10,418	)		(8,260	)
Deferred compensation		(5,247	)		(5,275	)		(3,699	)		(4,045	)		(4,481	)
Total Stockholders’ Equity		1,502,715			1,530,626			1,557,472			1,570,392			1,598,253
Total Liabilities and Stockholders’ Equity	$	3,362,033		$	3,403,032		$	3,395,369		$	3,518,955		$	3,565,765
Ratios
Total Debt/Total Assets		47.0	%		46.4	%		45.0	%		46.2	%		47.0	%

Page 3

Estimated Net Asset Value

June 30, 2003

Dollars in thousands, except per share amounts

The information on this Page is provided to assist in the calculation of Net Asset Value using a range of Capitalization rates and In-Place Net Operating Income among other Factors. It is not intended to be an asset by asset valuation.

Office		9.25	%		9.50	%		9.75	%
Retail		8.00	%		8.25	%		8.50	%
Industrial/Other		9.00	%		9.25	%		9.50	%
Weighted average		9.08	%		9.33	%		9.58	%
Wholly Owned Properties Net Operating Income YTD
Office 1/ 2/	$	110,784		$	110,784		$	110,784
Retail		14,375			14,375			14,375
Industrial/Other 3/		13,777			13,777			13,777
Total Net Operating Income	$	138,936		$	138,936		$	138,936
Wholly Owned Properties Net Operating Income Annualized
Office	$	221,568		$	221,568		$	221,568
Retail		28,750			28,750			28,750
Industrial/Other		27,554			27,554			27,554
Total Net Operating Income	$	277,872		$	277,872		$	277,872
Wholly Owned Properties Capitalized Value
Office	$	2,395,330		$	2,332,295		$	2,272,492
Retail		359,375			348,485			338,235
Industrial/Other		306,156			297,881			290,042
	$	3,060,860		$	2,978,661		$	2,900,770
Highwoods’ Share of Joint Ventures
Net Operating Income YTD	$	13,995		$	13,995		$	13,995
Net Operating Income Annualized	$	27,990		$	27,990		$	27,990
Capitalization Rates		9.25	%		9.50	%		9.75	%
Capitalized Value	$	302,595		$	294,632		$	287,077
Value of Highwoods Preserve at $80 per square foot 4/	$	65,280		$	65,280		$	65,280
Total In-Service Property Value	$	3,428,735		$	3,338,572		$	3,253,127
Value of Other income
Annualized Development, Leasing and Management Fees	$	6,560		$	6,560		$	6,560
Capitalization Rate		20	%		20	%		20	%
Value of Other income	$	32,800		$	32,800		$	32,800
Add Other assets:
Development Pipeline Investment	$	16,222		$	16,222		$	16,222
Property Held for Sale, at Net Sales Price		234,737			234,737			234,737
Land held for development at Book Value		172,153			172,153			172,153
Cash and cash equivalents		13,025			13,025			13,025
Restricted cash		3,163			3,163			3,163
Accounts receivable, net		13,902			13,902			13,902
Notes receivable		27,617			27,617			27,617
Other assets total	$	480,819		$	480,819		$	480,819
Gross Value of Assets	$	3,942,354		$	3,852,191		$	3,766,746
Deductions:
Total Liabilities	$	1,682,214		$	1,682,214		$	1,682,214
Preferred stock		377,445			377,445			377,445
Highwoods’ Share of Joint Ventures Liabilities		202,661			202,661			202,661
Estimated Net Asset Value	$	1,680,034		$	1,589,871		$	1,504,426
Total diluted common shares and operating units		59,744			59,744			59,744
Estimated Net Asset Value Per Share	$	28.12		$	26.61		$	25.18

1/ Added back the $1.2 million operating loss at Highwoods Preserve

2/ Deducted $294,000 for the operating income on the completed but not stabilized development projects

3/ Deducted $82,000 for the operating income on the completed but not stabilized development project

4/ Highwoods Preserve is a 816,000 sf office campus in Tampa that Worldcom vacated 12/31/02

Page 4

Combined Financial Information

Highwoods Properties and Unconsolidated Joint Ventures

Dollars in thousands

	Highwoods Properties Inc.			Highwoods’ Share of Joint Ventures			Total
	(see pages 31 - 33)
Statement of Operations:
For the three months ended June 30, 2003
Revenue:
Rental property revenue	$	105,659		$	12,159		$	117,818
Expenses:
Rental property expense		36,870			5,024			41,894
Depreciation and amortization		32,412			2,489			34,901
Interest expense:
Contractual		27,822			2,884			30,706
Amortization of deferred financing costs		757			—			757
		28,579			2,884			31,463
General and administrative		6,524			—			6,524
Other Income/(Expenses)		2,744			—			2,744
Income from continuing operations	$	4,018		$	1,762		$	5,780
Net Income before extraordinary item	$	10,120			(485	)	$	9,635
Addback Equity in loss of unconsolidated affiliates		485						485
Addback Depreciation and amortization		32,781			2,489			35,270
Addback Interest Expense		29,007			2,884			31,891
EBITDA	$	72,393		$	4,888		$	77,281
EBITDA /Interest Expense								2.42
For the six months ended June 30, 2003
Revenue:
Rental property revenue	$	211,629		$	23,956		$	235,585
Expenses:
Rental property expense		73,524			9,961			83,485
Depreciation and amortization		64,856			4,904			69,760
Interest expense:
Contractual		55,496			5,732			61,228
Amortization of deferred financing costs		1,383			—			1,383
		56,879			5,732			62,611
General and administrative		11,868			—			11,868
Other Income/(Expenses)		7,392			—			7,392
Income from continuing operations	$	11,894		$	3,359		$	15,253
Net Income	$	21,292		$	1,276		$	22,568
Deduct Equity in earnings/(loss) of unconsolidated affiliates		(1,276	)					(1,276	)
Addback Depreciation and amortization		66,075			4,904			70,979
Addback Interest Expense		57,736			5,732			63,468
EBITDA							$	143,827
EBITDA /Interest Expense								2.49
As of June 30, 2003
Balance Sheet Information:
Total Assets 1/	$	3,285,534		$	285,163		$	3,570,697
Debt		1,579,265			192,864			1,772,129
Total Liabilities		1,682,214			202,661			1,884,875
Total Debt/Total Assets								49.6	%

1/ Excludes investment in unconsolidated affiliates

Page 5

Components of Discontinued Operations

Dollars in thousands, except per share amounts

	Six Months Ended						Three Months Ended
	06/30/03			06/30/02			06/30/03			03/31/03			12/31/02			09/30/02			06/30/02
Rental revenue	$	13,445		$	23,672		$	6,483		$	6,962		$	9,762		$	11,906		$	11,514
Operating expenses:
Rental property		3,032			6,293			1,436			1,596			2,484			3,484			3,146
Depreciation and amortization		1,219			5,268			369			850			2,166			2,681			2,613
Interest expense		857			860			428			429			429			630			430
Total operating expense		5,108			12,421			2,233			2,875			5,079			6,795			6,189
Interest and other income		16			151			7			9			(4	)		22			74
		16			151			7			9			(4	)		22			74
Income before gain/(loss) on disposition of depreciable assets and minority interest		8,353			11,402			4,257			4,096			4,679			5,133			5,399
Minority interest		(943	)		(1,364	)		(476	)		(467	)		(545	)		(598	)		(631	)
Income from discontinued operations, net of minority interest		7,410			10,038			3,781			3,629			4,134			4,535			4,768
Gain/(loss) on sale of discontinued operations		1,323			2,136			1,515			(192	)		13,851			(3,716	)		2,136
Minority Interest		(148	)		(250	)		(170	)		22			(1,599	)		433			(250	)
Gain on sale of discontinued operations, net of minority interest		1,175			1,886			1,345			(170	)		12,252			(3,283	)		1,886
Total discontinued operations	$	8,585		$	11,924		$	5,126		$	3,459		$	16,386		$	1,252		$	6,654

Page 6

Capitalization

Dollars in thousands

	06/30/03		03/31/03		12/31/02		09/30/02		06/30/02
Long-Term Debt (see page 8 & 9)	$	1,579,265	$	1,580,301	$	1,528,720	$	1,626,362	$	1,675,358
Preferred Stock:
Series A 8 5/8% Perpetual Preferred Stock	$	104,945	$	104,945	$	104,945	$	104,945	$	104,945
Series B 8% Perpetual Preferred Stock		172,500		172,500		172,500		172,500		172,500
Series D 8% Perpetual Preferred Stock		100,000		100,000		100,000		100,000		100,000
Total preferred stock	$	377,445	$	377,445	$	377,445	$	377,445	$	377,445
Shares and Units Outstanding:
Common stock outstanding		53,072		53,484		53,400		53,387		53,417
Minority interest partnership units		6,625		6,848		6,975		7,042		7,049
Total shares and units outstanding		59,697		60,332		60,375		60,429		60,466
Stock price at period end	$	22.30	$	20.44	$	22.10	$	23.40	$	26.00
Market value of equity	$	1,708,688	$	1,610,631	$	1,711,733	$	1,791,484	$	1,949,561
Total market capitalization with debt	$	3,287,953	$	3,190,932	$	3,240,453	$	3,417,846	$	3,624,919

See pages 31 to 37 for information regarding Highwoods’ Joint Ventures

Page 7

Long-Term Debt Summary

Dollars in thousands

	06/30/03			03/31/03			12/31/02			09/30/02			06/30/02
Balances Outstanding:
Secured:
Conventional fixed rate	$	653,092		$	656,060		$	515,411		$	517,859		$	512,145
Variable rate debt		4,173			4,241			4,309			5,503			32,213
Secured total	$	657,265		$	660,301		$	519,720		$	523,362		$	544,358
Unsecured:
Fixed rate bonds and notes	$	806,500		$	806,500		$	931,500		$	931,500		$	931,500
Variable rate debt		20,000			20,000			20,000			20,000			—
Credit facility		95,500			93,500			57,500			151,500			199,500
Unsecured total	$	922,000		$	920,000		$	1,009,000		$	1,103,000		$	1,131,000
Total	$	1,579,265		$	1,580,301		$	1,528,720		$	1,626,362		$	1,675,358
Average Interest Rates:
Secured:
Conventional fixed rate		7.6	%		7.6	%		8.0	%		8.0	%		8.0	%
Variable rate debt		3.6	%		3.7	%		3.9	%		3.4	%		3.1	%
Secured total		7.5	%		7.5	%		7.9	%		7.7	%		7.8	%
Unsecured:
Fixed rate bonds		7.4	%		7.4	%		7.3	%		7.3	%		7.3	%
Variable rate debt		2.5	%		2.6	%		2.8	%		—			7.3	%
Credit facility		2.1	%		2.3	%		2.8	%		2.7	%		2.8	%
Unsecured total		6.7	%		6.9	%		6.5	%		6.5	%		6.4	%
Average		7.1	%		7.1	%		7.0	%		6.9	%		6.9	%
Capitalized Interest:	$	349		$	366		$	(1,325	)	$	1,724		$	2,622

Maturity Schedule:

	Future Maturities of Debt					Total Debt 1/		Average Interest Rate
Year	Secured Debt 1/		Unsecured Debt
2003	$	—	$	246,500		$	246,500	7.5	%
2004		—		—			—	—
2005		70,585		20,000			90,585	7.1	%
2006		6,694		205,500	2/		212,194	4.8	%
2007		80,629		—			80,629	7.9	%
2008		—		100,000			100,000	7.1	%
2009		205,547		50,000			255,547	8.0	%
2010		142,263		—			142,263	7.8	%
2011		—		100,000			100,000	7.2	%
2012		—		—			—	—
Thereafter		151,547		200,000			351,547	6.9	%
Total maturities	$	657,265	$	922,000		$	1,579,265	7.1	%

Weighted average maturity = 6.0 years

1/ Excludes annual principal amortization

2/ Included in the $205.5 million of unsecured debt maturities is $95.5 million related to the credit facility which now matures in 2006.

Page 8

Long-Term Debt Detail

Dollars in thousands

Secured Loans In Excess of $10 Million

Lender	Blended Rate		Maturity Date	Loan Balance 06/30/03		Undepreciated Book Value of Assets Secured
Monumental Life Insurance Company	7.8	%	Nov-09	$	178,371	$	249,050
Northwestern Mutual Life	6.0	%	Feb-13		144,585		184,953
Northwestern Mutual Life	7.8	%	Nov-10		141,677		263,729
Northwestern Mutual Life	8.2	%	Jan-07		67,678		132,584
Principal Life Insurance Company	8.6	%	Apr-05		42,947		101,773
Principal Life Insurance Company	8.2	%	Jul-05		27,638		68,288
Cigna Corporation	9.1	%	Mar-09		18,915		19,095
	7.5	%		$	621,811	$	1,019,472
All Other Secured Loans (16)	7.4	%		$	35,454	$	81,948
Total Secured Loans	7.5	%		$	657,265	$	1,101,420
Unsecured Bonds
Bonds	6.8	%	Dec-03	$	100,000
Bonds	8.0	%	Dec-03		146,500
Bonds	7.0	%	Dec-06		110,000
Bonds	7.1	%	Feb-08		100,000
Bonds	8.1	%	Jan-09		50,000
Xpos 1/	7.2	%	Jun-11		100,000
Bonds	7.5	%	Apr-18		200,000
	7.4	%		$	806,500

1/ Remarket date is 6/15/2004

Page 9

Portfolio Summary

(Rentable Square Feet)

	06/30/03		03/31/03		12/31/02			09/30/02		06/30/02
Office Industrial & Retail
In-Service:
Office	25,052,000		25,387,000		25,342,000			25,861,000		25,787,000
Industrial	10,243,000		10,243,000		10,242,000			10,468,000		10,468,000
Retail 1/	1,527,000		1,527,000		1,528,000			1,650,000		1,651,000
Total	36,822,000		37,157,000		37,112,000			37,979,000		37,906,000
Development Completed – Not Stabilized:
Office	140,000		100,000		231,000			568,000		735,000
Industrial	60,000		60,000		60,000			136,000		136,000
Retail	—		—		—			20,000		20,000
Total	200,000		160,000		291,000			724,000		891,000
Development – In Process:
Office	—		40,000		40,000			100,000		201,000
Industrial	—		—		—			60,000		60,000
Retail	—		—		—			—		—
Total	—		40,000		40,000			160,000		261,000
Total:
Office	25,192,000		25,527,000		25,613,000			26,529,000		26,723,000
Industrial	10,303,000		10,303,000		10,302,000			10,664,000		10,664,000
Retail 1/	1,527,000		1,527,000		1,528,000			1,670,000		1,671,000
Total	37,022,000		37,357,000		37,443,000			38,863,000		39,058,000
Same Store
Office	23,149,000		23,484,000		22,450,000			23,408,000		23,400,000
Industrial	10,044,000		10,044,000		9,679,000			10,041,000		10,041,000
Retail	1,507,000		1,507,000		1,509,000			1,650,000		1,651,000
Total	34,700,000		35,035,000		33,638,000			35,099,000		35,092,000
Percent Leased/Pre-Leased:
In-Service:
Office	80.5	%	80.9	%	82.3	%	2/	86.3	%	86.7	%
Industrial	88.7	%	86.8	%	86.2	%		86.2	%	83.5	%
Retail	96.8	%	96.5	%	97.0	%		95.4	%	95.6	%
Total	83.4	%	83.2	%	84.0	%	2/	86.7	%	86.2	%
Development Completed – Not Stabilized:
Office	30.0	%	42.0	%	61.3	%		17.3	%	28.7	%
Industrial	50.0	%	50.0	%	50.0	%		29.0	%	29.0	%
Retail	—		—		—			90.0	%	90.0	%
Total	36.0	%	45.0	%	59.0	%		21.5	%	30.1	%
Development – In Process:
Office	—		0.0	%	0.0	%		42.0	%	70.1	%
Industrial	—		—		—			20.0	%	—
Retail	—		—		—			—		—
Total	—		0.0	%	0.0	%		33.8	%	54.0	%
Same Store
Office	81.9	%	82.1	%	84.3	%	3/	87.0	%	87.7	%
Industrial	88.9	%	87.0	%	87.1	%		86.3	%	83.4	%
Retail	96.7	%	96.6	%	97.1	%		95.4	%	95.6	%
Total	84.6	%	84.1	%	85.7	%	3/	87.2	%	86.9	%

1/ Excludes basement space in the Country Club Plaza property of 474,000 square feet.

2/ The occupancy percentages have been reduced as a result of the rejection of the 816,000 square foot Intermedia(Worldcom) lease on 12/31/02. The impact on Office occupancy and Total occupancy was 3.2% and 2.2%, respectively.

3/ The occupancy percentages have been reduced as a result of the rejection of the 816,000 square foot Intermedia(Worldcom) lease on 12/31/02. Only 631,000 square feet of this lease was related to Same Store Properties. The impact on Office occupancy and Total occupancy was 2.8% and 1.8%, respectively.

Page 10

Portfolio Summary

(Continued)

As of June 30, 2003

Summary by Location:

	Rentable Square Feet		Occupancy		Percentage of Annualized Revenue 1/
Market					Office		Industrial		Retail		Total
Atlanta	6,729,000		82.5	%	11.0	%	3.4	%	—		14.4	%
Research Triangle	4,032,000		81.2	%	13.0	%	0.2	%	—		13.2	%
Kansas City	2,511,000	2/	93.1	%	4.3	%	—		8.7	%	13.0	%
Tampa	4,170,000		66.4	%	12.1	%	—		—		12.1	%
Piedmont Triad	8,368,000		90.0	%	6.1	%	5.2	%	—		11.3	%
Nashville	2,865,000		87.0	%	10.9	%	—		—		10.9	%
Richmond	2,825,000		93.9	%	9.0	%	0.5	%	—		9.5	%
Charlotte	1,729,000		79.8	%	4.4	%	0.3	%	—		4.7	%
Memphis	1,216,000		80.5	%	4.4	%	—		—		4.4	%
Greenville	1,511,000		84.0	%	4.1	%	0.2	%	—		4.3	%
Columbia	426,000		60.2	%	1.1	%	—		—		1.1	%
Orlando	340,000		48.8	%	0.7	%	—		—		0.7	%
Other	100,000		64.1	%	0.4	%	—		—		0.4	%
Total	36,822,000		83.4	%	81.5	%	9.8	%	8.7	%	100.0	%

Summary by Location, Including Unconsolidated Joint Venture Properties:

Market	Rentable Square Feet	Occupancy		Percentage of Annualized Revenue 1/3/
				Office		Industrial		Retail		Multi-Family		Total
Atlanta	7,660,000	83.4	%	11.3	%	3.1	%	—		—		14.4	%
Research Triangle	5,157,000	81.8	%	12.6	%	0.2	%	—		—		12.8	%
Kansas City	2,938,000	92.4	%	4.3	%	—		7.9	%	—		12.2	%
Tampa	4,741,000	68.7	%	11.5	%	—		—		—		11.5	%
Piedmont Triad	8,732,000	90.4	%	6.0	%	4.7	%	—		—		10.7	%
Nashville	2,865,000	87.0	%	9.9	%	—		—		—		9.9	%
Richmond	2,946,000	94.1	%	8.4	%	0.4	%	—		—		8.8	%
Charlotte	1,877,000	81.4	%	4.1	%	0.3	%	—		—		4.4	%
Greenville	1,511,000	84.0	%	3.8	%	0.2	%	—		—		4.0	%
Memphis	1,216,000	80.5	%	4.0	%	—		—		—		4.0	%
Des Moines	2,245,000	93.4	%	2.9	%	0.4	%	0.1	%	0.4	%	3.8	%
Orlando	2,103,000	78.7	%	2.1	%	—		—		—		2.1	%
Columbia	426,000	60.2	%	1.0	%	—		—		—		1.0	%
Other	210,000	82.9	%	0.4	%	—		—		—		0.4	%
Total	44,627,000	84.5	%	82.3	%	9.3	%	8.0	%	0.4	%	100.0	%

1/ Annualized Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12, excludes the revenue associated with the rejected 816,000 square foot Intermedia(Worldcom) lease on 12/31/02.

2/ Excludes basement space in the Country Club Plaza property of 474,000 square feet

3/ Includes Highwoods' share of Joint Venture Annualized Rental Revenue, see page 35

Page 11

Portfolio Summary

(Continued)

As of June 30, 2003

	Office Properties					Industrial
Market	Rentable Square Feet	Occupancy		Percentage of Office Annualized Revenue 1/		Rentable Square Feet	Occupancy		Percentage of Industrial Annualized Revenue 1/
Research Triangle	3,931,000	80.8	%	16.0	%	101,000	96.2	%	2.2	%
Tampa	4,170,000	66.4	%	14.8	%	—	—		—
Atlanta	3,289,000	82.8	%	13.5	%	3,440,000	82.1	%	34.7	%
Nashville	2,865,000	87.0	%	13.4	%	—	—		—
Richmond	2,443,000	92.9	%	11.1	%	382,000	100.0	%	4.7	%
Piedmont Triad	2,318,000	84.1	%	7.5	%	6,050,000	92.2	%	53.6	%
Memphis	1,216,000	80.5	%	5.4	%	—	—		—
Charlotte	1,566,000	80.2	%	5.4	%	163,000	75.3	%	2.9	%
Kansas City	980,000	87.2	%	5.3	%	4,000	100.0	%	0.0	%
Greenville	1,408,000	85.0	%	5.1	%	103,000	70.0	%	1.9	%
Columbia	426,000	60.2	%	1.3	%	—	—		—
Orlando	340,000	48.8	%	0.8	%	—	—		—
Other	100,000	64.1	%	0.4	%	—	—		—
	25,052,000	80.5	%	100.0	%	10,243,000	88.7	%	100.0	%
	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Revenue 1/
Kansas City 2/	1,527,000	96.8	%	100.0	%
	1,527,000	96.8	%	100.0	%

1/ Annualized Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

2/ Excludes basement space in the Country Club Plaza property of 474,000 square feet.

Page 12

Occupancy Trends – Office, Industrial and Retail Properties

Market	Measurement	06/30/03		03/31/03		12/31/02			09/30/02		06/30/02
Atlanta	Rentable Square Feet	6,729,000		6,729,000		6,728,000			6,592,000		6,484,000
	Occupancy	82.5	%	82.0	%	83.0	%		83.7	%	84.9	%
Charlotte	Rentable Square Feet	1,729,000		1,729,000		1,729,000			2,075,000		2,075,000
	Occupancy	79.8	%	79.1	%	84.0	%		87.2	%	69.5	%
Columbia	Rentable Square Feet	426,000		426,000		426,000			426,000		426,000
	Occupancy	60.2	%	60.2	%	67.4	%		62.9	%	63.0	%
Greenville	Rentable Square Feet	1,511,000		1,511,000		1,511,000			1,527,000		1,409,000
	Occupancy	84.0	%	85.8	%	86.8	%		85.7	%	86.2	%
Kansas City 1/	Rentable Square Feet	2,511,000		2,511,000		2,512,000			2,690,000		2,692,000
	Occupancy	93.1	%	93.3	%	94.5	%		91.7	%	92.4	%
Memphis	Rentable Square Feet	1,216,000		1,216,000		1,215,000			1,135,000		1,135,000
	Occupancy	80.5	%	81.5	%	80.8	%		85.7	%	85.9	%
Nashville	Rentable Square Feet	2,865,000		2,864,000		2,733,000			3,045,000		2,991,000
	Occupancy	87.0	%	86.0	%	87.7	%		88.5	%	86.9	%
Orlando	Rentable Square Feet	340,000		340,000		340,000			664,000		664,000
	Occupancy	48.8	%	48.8	%	47.6	%		69.7	%	68.4	%
Piedmont Triad	Rentable Square Feet	8,368,000		8,371,000		8,371,000			8,273,000		8,273,000
	Occupancy	90.0	%	89.4	%	88.9	%		88.8	%	88.9	%
Research Triangle	Rentable Square Feet	4,032,000		4,188,000		4,340,000			4,120,000		4,118,000
	Occupancy	81.2	%	80.3	%	81.9	%		82.8	%	86.4	%
Richmond	Rentable Square Feet	2,825,000		2,829,000		2,764,000			2,989,000		2,990,000
	Occupancy	93.9	%	94.6	%	95.0	%		95.1	%	94.1	%
Tampa	Rentable Square Feet	4,170,000		4,262,000		4,262,000			4,262,000		4,467,000
	Occupancy	66.4	%	66.5	%	67.1	%	2/	86.4	%	86.3	%
Total 3/	Rentable Square Feet	36,722,000		36,976,000		36,931,000			37,798,000		37,724,000
	Occupancy	83.4	%	83.2	%	84.0	%	2/	86.7	%	86.2	%

1/ Excludes basement space in the Country Club Plaza property of 474,000 square feet.

2/ The occupancy percentages have been reduced as a result of the rejection of the 816,000 square foot Intermedia(Worldcom) lease on 12/31/02. The impact on Tampa's occupancy and Total occupancy was 19.1% and 2.2%, respectively.

3/ Excludes 100,000 square feet of buildings held for sale

Page 13

Leasing Statistics

Office Portfolio

	Three Months Ended
	06/30/03			03/31/03			12/31/02			09/30/02			06/30/02			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		216			166			194			184			162			184
Rentable square footage leased		1,097,633			1,081,692			1,035,837			882,115			874,467			994,349
Average per rentable square foot over the lease term:
Base rent	$	16.93		$	16.08		$	17.38		$	17.26		$	16.86		$	16.90
Tenant improvements		(1.33	)		(0.85	)		(1.58	)		(1.06	)		(0.86	)		(1.14	)
Leasing commissions		(0.59	)		(0.54	)		(0.65	)		(0.60	)		(0.56	)		(0.59	)
Rent concessions		(0.16	)		(0.14	)		(0.43	)		(0.22	)		(0.14	)		(0.22	)
Effective rent		14.85			14.55			14.72			15.38			15.30			14.95
Expense stop		(4.69	)		(4.76	)		(5.08	)		(5.54	)		(5.17	)		(5.05	)
Equivalent effective net rent	$	10.16		$	9.79		$	9.64		$	9.84		$	10.13		$	9.90
Average term in years		3.8			3.5			4.2			3.6			4.1			3.8
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	7,125,673		$	4,474,184		$	8,004,279		$	4,396,259		$	3,481,988		$	5,496,477
Rentable square feet		1,097,633			1,081,692			1,035,837			882,115			874,467			994,349
Per rentable square foot	$	6.49		$	4.14		$	7.73		$	4.98		$	3.98		$	5.53
Leasing Commissions:
Total dollars committed under signed leases	$	1,803,423		$	1,658,231		$	2,255,691		$	1,352,691		$	1,272,854		$	1,668,578
Rentable square feet		1,097,633			1,081,692			1,035,837			882,115			874,467			994,349
Per rentable square foot	$	1.64		$	1.53		$	2.18		$	1.53		$	1.46		$	1.68
Total:
Total dollars committed under signed leases	$	8,929,097		$	6,132,415		$	10,259,970		$	5,748,950		$	4,754,842		$	7,165,055
Rentable square feet		1,097,633			1,081,692			1,035,837			882,115			874,467			994,349
Per rentable square foot	$	8.13		$	5.67		$	9.91		$	6.52		$	5.44		$	7.21

Page 14

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	06/30/03			03/31/03			12/31/02			09/30/02			06/30/02			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		41			35			45			45			32			40
Rentable square footage leased		540,891			857,482			530,945			593,188			1,005,765			705,654
Average per rentable square foot over the lease term:
Base rent	$	4.46		$	3.70		$	4.45		$	4.37		$	3.58		$	4.11
Tenant improvements		(0.28	)		(0.32	)		(0.51	)		(0.23	)		(0.29	)		(0.33	)
Leasing commissions		(0.12	)		(0.11	)		(0.12	)		(0.14	)		(0.14	)		(0.13	)
Rent concessions		(0.07	)		(0.01	)		(0.09	)		(0.02	)		(0.03	)		(0.04	)
Effective rent		3.99			3.26			3.73			3.98			3.12			3.61
Expense stop		(0.49	)		(0.25	)		(0.32	)		(0.39	)		(0.09	)		(0.31	)
Equivalent effective net rent	$	3.50		$	3.01		$	3.41		$	3.59		$	3.03		$	3.30
Average term in years		3.5			2.6			3.8			1.6			6.3			3.5
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	701,259		$	791,737		$	1,172,142		$	522,115		$	2,088,547		$	1,055,160
Rentable square feet		540,891			857,482			530,945			593,188			1,005,765			705,654
Per rentable square foot	$	1.30		$	0.92		$	2.21		$	0.88		$	2.08		$	1.50
Leasing Commissions:
Total dollars committed under signed leases	$	298,582		$	178,385		$	199,076		$	141,694		$	797,939		$	323,135
Rentable square feet		540,891			857,482			530,945			593,188			1,005,765			705,654
Per rentable square foot	$	0.55		$	0.21		$	0.37		$	0.24		$	0.79		$	0.46
Total:
Total dollars committed under signed leases	$	999,841		$	970,122		$	1,371,218		$	663,809		$	2,886,486		$	1,378,295
Rentable square feet		540,891			857,482			530,945			593,188			1,005,765			705,654
Per rentable square foot	$	1.85		$	1.13		$	2.58		$	1.12		$	2.87		$	1.95

Page 15

Leasing Statistics

Retail Portfolio

	Three Months Ended
	06/30/03			03/31/03			12/31/02			09/30/02			06/30/02			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		9			10			18			13			13			13
Rentable square footage leased		25,772			22,774			36,085			28,267			52,527			33,085
Average per rentable square foot over the lease term:
Base rent	$	26.51		$	23.03		$	19.19		$	20.14		$	18.15		$	21.40
Tenant improvements		(0.86	)		(1.54	)		(1.22	)		(0.60	)		(1.83	)		(1.21	)
Leasing commissions		(0.70	)		(1.09	)		(0.82	)		(0.88	)		(0.65	)		(0.83	)
Rent concessions		0.00			0.00			(0.01	)		0.00			(0.03	)		(0.01	)
Effective rent		24.95			20.40			17.14			18.66			15.64			19.35
Expense stop		0.00			0.00			0.00			0.00			(1.02	)		(0.20	)
Equivalent effective net rent	$	24.95		$	20.40		$	17.14		$	18.66		$	14.62		$	19.15
Average term in years		9.9			6.9			6.0			5.6			7.0			7.1
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	195,055		$	513,000		$	351,023		$	121,500		$	1,077,825		$	451,681
Rentable square feet		25,772			22,774			36,085			28,267			52,527			33,085
Per rentable square foot	$	7.57		$	22.53		$	9.73		$	4.30		$	20.52		$	13.65
Leasing Commissions:
Total dollars committed under signed leases	$	100,464		$	109,066		$	127,964		$	91,405		$	151,268		$	116,033
Rentable square feet		25,772			22,774			36,085			28,267			52,527			33,085
Per rentable square foot	$	3.90		$	4.79		$	3.55		$	3.23		$	2.88		$	3.51
Total:
Total dollars committed under signed leases	$	295,519		$	622,066		$	478,987		$	212,905		$	1,229,093		$	567,714
Rentable square feet		25,772			22,774			36,085			28,267			52,527			33,085
Per rentable square foot	$	11.47		$	27.31		$	13.27		$	7.53		$	23.40		$	17.16

Page 16

Leasing Statistics by Market

For the Three Months Ended June 30, 2003

Office Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI's Per SF		Lease Commissions Per SF 1/
Research Triangle	283,108	2.2	$	16.26	$	3.15	$	0.68
Tampa	188,351	4.4		17.25		9.28		1.64
Atlanta	179,462	5.6		17.36		9.01		1.13
Piedmont Triad	103,617	3.3		14.26		4.41		0.38
Nashville	86,902	4.6		17.69		6.99		1.72
Charlotte	63,748	4.0		18.35		8.18		2.04
Richmond	58,043	2.9		18.29		3.88		1.41
Columbia	41,651	3.2		16.03		5.88		3.76
Kansas City	33,753	4.4		20.78		10.78		4.61
Memphis	28,575	4.4		19.16		12.34		1.89
Greenville	20,438	4.8		17.80		4.64		3.19
Orlando	9,985	0.8		9.14		0.08		0.00
	1,097,633	3.8	$	16.93	$	6.49	$	1.40

Industrial Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI's Per SF		Lease Commissions Per SF 1/
Atlanta	246,801	4.4	$	4.67	$	1.83	$	0.65
Piedmont Triad	235,588	2.2		4.06		0.78		0.18
Richmond	46,068	5.0		4.53		0.65		1.13
Charlotte	8,076	2.8		7.25		4.65		0.34
Research Triangle	2,340	1.0		8.00		0.00		0.00
Kansas City	2,018	1.0		8.00		0.00		0.00
	540,891	3.5	$	4.46	$	1.30	$	0.48

Retail Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI's Per SF		Lease Commissions Per SF 1/
Kansas City	25,772	9.9	$	26.51	$	7.57	$	3.51
	25,772	9.9	$	26.51	$	7.57	$	3.51

1/ Total lease commisions per SF excludes internal charges from Leasing Departments, which are not allocated to individual leases.

Page 17

Rental Rate Comparisons by Market

For the Three Months Ended June 30, 2003

Office Portfolio

	Rentable					Percentage Change
Market	Square Feet Leased	First Year Cash Rent 1/		Previous Year Cash Rent		Cash Rent		Straight Line Rent
Research Triangle	283,108	$	15.96	$	16.64	-4.1	%	1.3	%
Tampa	188,351		16.48		18.94	-13.0	%	0.1	%
Atlanta	179,462		17.49		16.60	5.3	%	7.3	%
Piedmont Triad	103,617		13.99		14.79	-5.4	%	-1.6	%
Nashville	86,902		16.32		19.26	-15.2	%	-4.2	%
Charlotte	63,748		17.54		18.81	-6.7	%	-0.3	%
Richmond	58,043		17.75		18.05	-1.7	%	6.2	%
Columbia	41,651		16.03		19.45	-17.6	%	-14.8	%
Kansas City	33,753		19.75		19.49	1.3	%	6.7	%
Memphis	28,575		16.28		19.38	-16.0	%	1.8	%
Greenville	20,438		17.01		17.96	-5.3	%	4.7	%
Orlando	9,985		9.10		8.86	2.7	%	4.2	%
	1,097,633	$	16.40	$	17.47	-6.2	%	0.9	%

Industrial Portfolio

	Rentable					Percentage Change
Market	Square Feet Leased	First Year Cash Rent 1/		Previous Year Cash Rent		Cash Rent		Straight Line Rent
Atlanta	246,801	$	4.39	$	5.63	-22.0	%	-8.0	%
Piedmont Triad	235,588		3.90		4.37	-10.8	%	-7.4	%
Richmond	46,068		5.33		5.67	-6.0	%	-1.5	%
Charlotte	8,076		8.52		8.77	-2.9	%	-0.2	%
Research Triangle	2,340		8.00		7.75	3.2	%	3.2	%
Kansas City	2,018		9.86		9.45	4.3	%	6.6	%
	540,891	$	4.36	$	5.16	-15.5	%	-7.1	%

Retail Portfolio

	Rentable					Percentage Change
Market	Square Feet Leased	First Year Cash Rent 1/		Previous Year Cash Rent		Cash Rent		Straight Line Rent
Kansas City	25,772	$	23.65	$	19.90	18.9	%	35.3	%
	25,772	$	23.65	$	19.90	18.9	%	35.3	%

1/ First Year Cash Rent = Base Rent less concessions

Page 18

Lease Expirations

June 30, 2003

Dollars in thousands

Year	Number of Leases	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Office:
Remainder of 2003 2/	395	2,162,605	10.7	%	$	37,222	$	17.21	10.6	%
2004	500	2,658,294	13.2	%		47,751		17.96	13.6	%
2005	569	3,456,136	17.0	%		61,025		17.66	17.4	%
2006	410	2,960,536	14.7	%		53,888		18.20	15.4	%
2007	233	1,605,839	8.0	%		27,294		17.00	7.8	%
2008	205	2,448,868	12.1	%		36,807		15.03	10.5	%
2009	62	1,588,366	7.9	%		27,411		17.26	7.8	%
2010	52	990,449	4.9	%		20,293		20.49	5.8	%
2011	43	952,981	4.7	%		19,178		20.12	5.5	%
2012	33	710,786	3.5	%		12,350		17.38	3.5	%
2013 and thereafter	113	663,267	3.3	%		7,336		11.06	2.1	%
	2,615	20,198,127	100.0	%	$	350,555	$	17.36	100.0	%
Industrial:
Remainder of 2003 3/	70	949,838	10.4	%	$	4,541	$	4.78	11.0	%
2004	111	2,632,595	28.9	%		10,709		4.07	25.9	%
2005	77	1,278,426	14.0	%		5,712		4.47	13.8	%
2006	63	982,829	10.8	%		4,780		4.86	11.5	%
2007	47	1,859,017	20.4	%		8,329		4.48	20.1	%
2008	25	537,796	5.9	%		2,447		4.55	5.9	%
2009	8	318,813	3.5	%		2,395		7.51	5.8	%
2010	4	71,708	0.8	%		504		7.03	1.2	%
2011	2	35,475	0.4	%		178		5.02	0.4	%
2012	2	44,447	0.5	%		258		5.80	0.6	%
2013 and thereafter	17	402,003	4.4	%		1,592		3.96	3.8	%
	426	9,112,947	100.0	%	$	41,445	$	4.55	100.0	%

1/ Annualized Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

2/ Includes 203,000 square feet of leases that are on a month to month basis or 0.8% of total annualized revenue

3/ Includes 402,000 square feet of eases that are on a month to month basis or 0.4% of total annualized revenue

Page 19

Lease Expirations

June 30, 2003

(Continued)

Dollars in thousands

		Rentable	Percent of				Average		Percent of
	Number of	Square Feet	Rentable		Annualized		Rental		Annualized
Year	Leases	Expiring	Square Feet		Revenue 1/		Rate		Revenue 1/
Retail:
Remainder of 2003 2/	21	71,678	4.9	%	$	1,139	$	15.89	3.1	%
2004	34	143,766	9.7	%		2,197		15.28	5.9	%
2005	47	154,079	10.4	%		3,258		21.14	8.7	%
2006	31	91,139	6.2	%		2,294		25.17	6.1	%
2007	37	118,131	8.0	%		2,766		23.41	7.4	%
2008	36	137,025	9.3	%		4,511		32.92	12.1	%
2009	23	158,274	10.7	%		4,045		25.56	10.8	%
2010	17	85,386	5.8	%		1,897		22.22	5.1	%
2011	16	57,783	3.9	%		2,028		35.10	5.4	%
2012	13	77,862	5.3	%		1,931		24.80	5.2	%
2013 and thereafter	31	382,749	25.8	%		11,238		29.36	30.2	%
	306	1,477,872	100.0	%	$	37,304	$	25.24	100.0	%
Total:
Remainder of 2003 3/	486	3,184,121	10.3	%	$	42,902	$	13.47	10.0	%
2004	645	5,434,655	17.8	%		60,657		11.16	14.1	%
2005	693	4,888,641	15.9	%		69,995		14.32	16.3	%
2006	504	4,034,504	13.1	%		60,962		15.11	14.2	%
2007	317	3,582,987	11.6	%		38,389		10.71	8.9	%
2008	266	3,123,689	10.1	%		43,765		14.01	10.2	%
2009	93	2,065,453	6.7	%		33,851		16.39	7.9	%
2010	73	1,147,543	3.7	%		22,694		19.78	5.3	%
2011	61	1,046,239	3.4	%		21,384		20.44	5.0	%
2012	48	833,095	2.7	%		14,539		17.45	3.4	%
2013 and thereafter	161	1,448,019	4.7	%		20,166		13.93	4.7	%
	3,347	30,788,946	100.0	%	$	429,304	$	13.94	100.0	%

1/ Annualized Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

2/ Includes 41,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

3/ Includes 646,000 square feet of leases that are on a month to month basis or 1.3% of total annualized revenue

Page 20

Office Lease Expirations by Market by Quarter

Dollars in thousands

			Three Months Ended												Total
			9/30/2003 1/			12/31/03			03/31/04			06/30/04
Atlanta	RSF			265,413			285,394			60,843			34,135			645,785
	% of Total Office RSF			1.3	%		1.4	%		0.3	%		0.2	%		3.2	%
	Annualized Revenue	2/	$	4,493		$	5,444		$	953		$	681		$	11,571
	% of Total Office Annl Rev			1.3	%		1.6	%		0.3	%		0.2	%		3.3	%
Charlotte	RSF			28,176			249,742			42,442			61,232			381,592
	% of Total Office RSF			0.1	%		1.2	%		0.2	%		0.3	%		1.9	%
	Annualized Revenue	2/	$	507		$	3,635		$	720		$	908		$	5,770
	% of Total Office Annl Rev			0.1	%		1.0	%		0.2	%		0.3	%		1.6	%
Columbia	RSF			0			68,957			8,615			3,611			81,183
	% of Total Office RSF			0.0	%		0.3	%		0.0	%		0.0	%		0.4	%
	Annualized Revenue	2/	$	—		$	1,453		$	152		$	69		$	1,674
	% of Total Office Annl Rev			0.0	%		0.4	%		0.0	%		0.0	%		0.5	%
Greenville	RSF			23,287			374			1,827			12,334			37,822
	% of Total Office RSF			0.1	%		0.0	%		0.0	%		0.1	%		0.2	%
	Annualized Revenue	2/	$	426		$	6		$	32		$	226		$	690
	% of Total Office Annl Rev			0.1	%		0.0	%		0.0	%		0.1	%		0.2	%
Kansas City	RSF			62,218			39,648			47,850			21,048			170,764
	% of Total Office RSF			0.3	%		0.2	%		0.2	%		0.1	%		0.8	%
	Annualized Revenue	2/	$	1,217		$	749		$	976		$	367		$	3,309
	% of Total Office Annl Rev			0.3	%		0.2	%		0.3	%		0.1	%		0.9	%
Memphis	RSF			35,261			30,640			72,568			22,452			160,921
	% of Total Office RSF			0.2	%		0.2	%		0.4	%		0.1	%		0.8	%
	Annualized Revenue	2/	$	631		$	649		$	1,245		$	438		$	2,963
	% of Total Office Annl Rev			0.2	%		0.2	%		0.4	%		0.1	%		0.8	%
Nashville	RSF			55,008			31,896			106,306			62,092			255,302
	% of Total Office RSF			0.3	%		0.2	%		0.5	%		0.3	%		1.3	%
	Annualized Revenue	2/	$	1,214		$	673		$	2,350		$	1,341		$	5,578
	% of Total Office Annl Rev			0.3	%		0.2	%		0.7	%		0.4	%		1.6	%
Orlando	RSF			8,697			6,823			9,735			16,452			41,707
	% of Total Office RSF			0.0	%		0.0	%		0.0	%		0.1	%		0.2	%
	Annualized Revenue	2/	$	140		$	118		$	96		$	285		$	639
	% of Total Office Annl Rev			0.0	%		0.0	%		0.0	%		0.1	%		0.2	%
Piedmont Triad	RSF			54,827			21,727			38,193			126,922			241,669
	% of Total Office RSF			0.3	%		0.1	%		0.2	%		0.6	%		1.2	%
	Annualized Revenue	2/	$	937		$	314		$	696		$	1,189		$	3,136
	% of Total Office Annl Rev			0.3	%		0.1	%		0.2	%		0.3	%		0.9	%
Research Triangle	RSF			131,830			112,219			132,077			116,013			492,139
	% of Total Office RSF			0.6	%		0.6	%		0.7	%		0.6	%		2.4	%
	Annualized Revenue	2/	$	2,443		$	1,945		$	2,436		$	2,258		$	9,082
	% of Total Office Annl Rev			0.7	%		0.6	%		0.7	%		0.6	%		2.6	%
Richmond	RSF			96,877			68,547			36,162			144,494			346,080
	% of Total Office RSF			0.5	%		0.3	%		0.2	%		0.7	%		1.7	%
	Annualized Revenue	2/	$	1,653		$	1,221		$	732		$	2,641		$	6,247
	% of Total Office Annl Rev			0.5	%		0.3	%		0.2	%		0.8	%		1.8	%
Tampa	RSF			404,754			79,001			54,984			166,258			704,997
	% of Total Office RSF			2.0	%		0.4	%		0.3	%		0.8	%		3.5	%
	Annualized Revenue	2/	$	6,066		$	1,256		$	1,093		$	2,842		$	11,257
	% of Total Office Annl Rev			1.7	%		0.4	%		0.3	%		0.8	%		3.2	%
Other	RSF			0			1,289			0			0			1,289
	% of Total Office RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue	2/	$	—		$	32		$	—		$	—		$	32
	% of Total Office Annl Rev			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Total	RSF			1,166,348			996,257			611,602			787,043			3,561,250
	% of Total Office RSF			5.7	%		4.9	%		3.0	%		3.9	%		17.6	%
	Annualized Revenue	2/	$	19,727		$	17,495		$	11,481		$	13,245		$	61,948
	% of Total Office Annl Rev			5.6	%		5.0	%		3.3	%		3.8	%		17.7	%

1/ Includes 203,000 square feet of leases that are on a month to month basis or 0.8% of total annualized revenue

2/ Annualized Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 21

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

			Three Months Ended
			9/30/2003 1/			12/31/03			03/31/04			06/30/04			Total
Atlanta	RSF			203,968			82,152			66,227			161,813			514,160
	% of Total Industrial RSF			2.2	%		0.9	%		0.7	%		1.8	%		5.6	%
	Annualized Revenue	2/	$	1,156		$	491		$	384		$	926		$	2,957
	% of Total Industrial Annl Rev			2.8	%		1.2	%		0.9	%		2.2	%		7.2	%
Charlotte	RSF			20,878			5,650			7,605			12,958			47,091
	% of Total Industrial RSF			0.2	%		0.1	%		0.1	%		0.1	%		0.5	%
	Annualized Revenue	2/	$	199		$	68		$	82		$	140		$	489
	% of Total Industrial Annl Rev			0.5	%		0.2	%		0.2	%		0.3	%		1.2	%
Greenville	RSF			0			24,096			0			0			24,096
	% of Total Industrial RSF			0.0	%		0.3	%		0.0	%		0.0	%		0.3	%
	Annualized Revenue	2/	$	—		$	270		$	—		$	—		$	270
	% of Total Industrial Annl Rev			0.0	%		0.7	%		0.0	%		0.0	%		0.7	%
Kansas City	RSF			0			0			3,774			0			3,774
	% of Total Industrial RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue	2/	$	—		$	—		$	20		$	—		$	20
	% of Total Industrial Annl Rev			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Piedmont Triad	RSF			383,438			161,729			97,058			918,973			1,561,198
	% of Total Industrial RSF			4.2	%		1.8	%		1.1	%		10.1	%		17.1	%
	Annualized Revenue	2/	$	1,292		$	659		$	468		$	3,037		$	5,456
	% of Total Industrial Annl Rev			3.1	%		1.6	%		1.1	%		7.3	%		13.2	%
Research Triangle	RSF			0			12,859			0			4,922			17,781
	% of Total Industrial RSF			0.0	%		0.1	%		0.0	%		0.1	%		0.2	%
	Annualized Revenue	2/	$	—		$	134		$	—		$	44		$	178
	% of Total Industrial Annl Rev			0.0	%		0.3	%		0.0	%		0.1	%		0.4	%
Richmond	RSF			9,000			46,068			0			15,000			70,068
	% of Total Industrial RSF			0.1	%		0.5	%		0.0	%		0.2	%		0.8	%
	Annualized Revenue	2/	$	12		$	261		$	—		$	89		$	362
	% of Total Industrial Annl Rev			0.0	%		0.6	%		0.0	%		0.2	%		0.9	%
Total	RSF			617,284			332,554			174,664			1,113,666			2,238,168
	% of Total Industrial RSF			6.8	%		3.6	%		1.9	%		12.2	%		24.6	%
	Annualized Revenue	2/	$	2,659		$	1,883		$	954		$	4,236		$	9,732
	% of Total Industrial Annl Rev			6.5	%		4.5	%		2.3	%		10.2	%		23.5	%

1/ Includes 402,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

2/ Annualized Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 22

Office Lease Expirations by Market by Year

Dollars in thousands

		Remainder of 2003 1/				2004			2005			2006			Thereafter
Atlanta	RSF			550,807			181,510			369,439			220,078			1,402,996
	% of Total Office RSF			2.7	%		0.9	%		1.8	%		1.1	%		6.9	%
	Annualized Revenue	2/	$	9,937		$	3,038		$	6,361		$	3,359		$	24,593
	% of Total Office Annl Rev			2.8	%		0.9	%		1.8	%		1.0	%		7.0	%
Charlotte	RSF			277,918			194,440			303,916			168,082			311,813
	% of Total Office RSF			1.4	%		1.0	%		1.5	%		0.8	%		1.5	%
	Annualized Revenue	2/	$	4,142		$	3,210		$	4,802		$	2,495		$	4,343
	% of Total Office Annl Rev			1.2	%		0.9	%		1.4	%		0.7	%		1.2	%
Columbia	RSF			68,957			31,949			48,288			37,273			69,524
	% of Total Office RSF			0.3	%		0.2	%		0.2	%		0.2	%		0.3	%
	Annualized Revenue	2/	$	1,453		$	574		$	887		$	661		$	1,054
	% of Total Office Annl Rev			0.4	%		0.2	%		0.3	%		0.2	%		0.3	%
Greenville	RSF			23,661			18,381			333,705			238,253			583,683
	% of Total Office RSF			0.1	%		0.1	%		1.7	%		1.2	%		2.9	%
	Annualized Revenue	2/	$	432		$	392		$	4,140		$	4,526		$	8,247
	% of Total Office Annl Rev			0.1	%		0.1	%		1.2	%		1.3	%		2.4	%
Kansas City	RSF			101,866			124,025			167,176			144,611			317,623
	% of Total Office RSF			0.5	%		0.6	%		0.8	%		0.7	%		1.6	%
	Annualized Revenue	2/	$	1,966		$	2,320		$	3,729		$	3,082		$	7,511
	% of Total Office Annl Rev			0.6	%		0.7	%		1.1	%		0.9	%		2.1	%
Memphis	RSF			65,901			184,472			204,675			128,592			394,892
	% of Total Office RSF			0.3	%		0.9	%		1.0	%		0.6	%		2.0	%
	Annualized Revenue	2/	$	1,280		$	3,415		$	4,106		$	2,595		$	7,707
	% of Total Office Annl Rev			0.4	%		1.0	%		1.2	%		0.7	%		2.2	%
Nashville	RSF			86,904			276,285			591,115			464,975			1,072,169
	% of Total Office RSF			0.4	%		1.4	%		2.9	%		2.3	%		5.3	%
	Annualized Revenue	2/	$	1,887		$	5,799		$	11,530		$	9,075		$	18,565
	% of Total Office Annl Rev			0.5	%		1.7	%		3.3	%		2.6	%		5.3	%
Orlando	RSF			15,520			41,506			3,000			7,498			98,187
	% of Total Office RSF			0.1	%		0.2	%		0.0	%		0.0	%		0.5	%
	Annualized Revenue	2/	$	259		$	633		$	42		$	98		$	1,764
	% of Total Office Annl Rev			0.1	%		0.2	%		0.0	%		0.0	%		0.5	%
Piedmont Triad	RSF			76,554			305,443			302,279			135,126			1,131,063
	% of Total Office RSF			0.4	%		1.5	%		1.5	%		0.7	%		5.6	%
	Annualized Revenue	2/	$	1,251		$	3,582		$	4,777		$	2,296		$	14,399
	% of Total Office Annl Rev			0.4	%		1.0	%		1.4	%		0.7	%		4.1	%
Research Triangle	RSF			244,049			504,855			478,833			799,185			1,191,370
	% of Total Office RSF			1.2	%		2.5	%		2.4	%		4.0	%		5.9	%
	Annualized Revenue	2/	$	4,387		$	9,722		$	8,800		$	13,630		$	19,602
	% of Total Office Annl Rev			1.3	%		2.8	%		2.5	%		3.9	%		5.6	%
Richmond	RSF			165,424			238,663			422,549			229,613			1,214,050
	% of Total Office RSF			0.8	%		1.2	%		2.1	%		1.1	%		6.0	%
	Annualized Revenue	2/	$	2,875		$	4,406		$	7,078		$	4,557		$	19,837
	% of Total Office Annl Rev			0.8	%		1.3	%		2.0	%		1.3	%		5.7	%
Tampa	RSF			483,755			556,765			210,680			373,869			1,144,367
	% of Total Office RSF			2.4	%		2.8	%		1.0	%		1.9	%		5.7	%
	Annualized Revenue	2/	$	7,322		$	10,659		$	4,360		$	7,193		$	22,291
	% of Total Office Annl Rev			2.1	%		3.0	%		1.2	%		2.1	%		6.4	%
Other	RSF			1,289			0			20,481			13,381			28,819
	% of Total Office RSF			0.0	%		0.0	%		0.1	%		0.1	%		0.1	%
	Annualized Revenue	2/	$	32		$	—		$	413		$	320		$	758
	% of Total Office Annl Rev			0.0	%		0.0	%		0.1	%		0.1	%		0.2	%
Total	RSF			2,162,605			2,658,294			3,456,136			2,960,536			8,960,556
	% of Total Office RSF			10.7	%		13.2	%		17.1	%		14.7	%		44.4	%
	Annualized Revenue	2/	$	37,223		$	47,750		$	61,025		$	53,887		$	150,671
	% of Total Office Annl Rev			10.6	%		13.6	%		17.4	%		15.4	%		43.0	%

1/ Includes 203,000 square feet of leases that are on a month to month basis or 0.8% of total annualized revenue

2/ Annualized Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 23

Industrial Lease Expirations by Market by Year

Dollars in thousands

			Remainder of 2003 1/			2004			2005			2006			Thereafter
Atlanta	RSF			286,120			505,924			545,817			321,547			1,195,517
	% of Total Industrial RSF			3.1	%		5.6	%		6.0	%		3.5	%		13.1	%
	Annualized Revenue	2/	$	1,646		$	2,724		$	2,531		$	1,862		$	5,639
	% of Total Industrial Annl Rev			4.0	%		6.6	%		6.1	%		4.5	%		13.6	%
Charlotte	RSF			26,528			27,760			18,201			29,993			20,081
	% of Total Industrial RSF			0.3	%		0.3	%		0.2	%		0.3	%		0.2	%
	Annualized Revenue	2/	$	267		$	295		$	197		$	239		$	199
	% of Total Industrial Annl Rev			0.6	%		0.7	%		0.5	%		0.6	%		0.5	%
Greenville	RSF			24,096			26,859			0			16,081			5,350
	% of Total Industrial RSF			0.3	%		0.3	%		0.0	%		0.2	%		0.1	%
	Annualized Revenue	2/	$	270		$	283		$	—		$	195		$	56
	% of Total Industrial Annl Rev			0.7	%		0.7	%		0.0	%		0.5	%		0.1	%
Kansas City	RSF			0			3,774			0			0			0
	% of Total Industrial RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue	2/	$	—		$	20		$	—		$	—		$	—
	% of Total Industrial Annl Rev			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Piedmont Triad	RSF			545,167			2,012,100			631,827			551,002			1,840,236
	% of Total Industrial RSF			6.0	%		22.1	%		6.9	%		6.0	%		20.2	%
	Annualized Revenue	2/	$	1,951		$	7,026		$	2,409		$	2,162		$	8,635
	% of Total Industrial Annl Rev			4.7	%		17.0	%		5.8	%		5.2	%		20.8	%
Research Triangle	RSF			12,859			16,096			41,396			2,339			24,675
	% of Total Industrial RSF			0.1	%		0.2	%		0.5	%		0.0	%		0.3	%
	Annualized Revenue	2/	$	134		$	141		$	352		$	23		$	249
	% of Total Industrial Annl Rev			0.3	%		0.3	%		0.8	%		0.1	%		0.6	%
Richmond	RSF			55,068			40,082			41,185			61,867			183,400
	% of Total Industrial RSF			0.6	%		0.4	%		0.5	%		0.7	%		2.0	%
	Annualized Revenue	2/	$	273		$	220		$	224		$	297		$	925
	% of Total Industrial Annl Rev			0.7	%		0.5	%		0.5	%		0.7	%		2.2	%
Total	RSF			949,838			2,632,595			1,278,426			982,829			3,269,259
	% of Total Industrial RSF			10.4	%		28.9	%		14.0	%		10.8	%		35.9	%
	Annualized Revenue	2/	$	4,541		$	10,709		$	5,713		$	4,778		$	15,703
	% of Total Industrial Annl Rev			11.0	%		25.8	%		13.8	%		11.5	%		37.9	%

1/ Includes 402,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

2/ Annualized Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 24

Customer Diversification

June 30, 2003

Dollars in thousands

Top 20 Customers

Customer	Number Of Leases	RSF	Annualized Revenue 1/		Percent of Annualized Revenue 1/		Average Remaining Lease Term in Years
Federal Government	58	607,026	$	12,478	2.96	%	5.2
AT&T	8	617,477		11,646	2.77	%	4.4
Price Waterhouse Coopers	6	297,795		6,879	1.63	%	6.8
State of Georgia	9	349,690		6,640	1.58	%	5.7
Capital One Services	6	361,968		6,390	1.52	%	5.4
Sara Lee	10	1,230,534		4,591	1.09	%	2.0
IBM	7	215,737		4,566	1.08	%	2.2
Bell South	9	176,960		3,706	0.88	%	1.0
Northern Telecom	1	246,000		3,651	0.87	%	4.7
Volvo	7	264,717		3,305	0.78	%	5.9
US Airways	5	295,046		3,216	0.76	%	4.5
Lockton Companies	1	127,485		3,159	0.75	%	11.7
Business Telecom	5	147,379		2,945	0.70	%	1.9
Bank of America	22	145,668		2,943	0.70	%	3.8
Hartford Insurance	6	134,021		2,918	0.69	%	2.8
WorldCom and Affiliates	14	145,063		2,866	0.68	%	2.8
T-Mobile USA	3	120,561		2,791	0.66	%	3.0
BB&T	8	241,075		2,618	0.62	%	7.5
Ikon	7	181,361		2,458	0.58	%	4.4
Carlton Fields	2	95,771		2,429	0.58	%	1.0
	194	6,001,334	$	92,195	21.88	%	4.6

By Industry

Category	Percent of Annualized Revenue 1/
Professional, Scientific, and Technical Services	21.6%
Insurance	9.4%
Finance/Banking	9.1%
Manufacturing	9.1%
Telecommunication	8.9%
Retail Trade	7.8%
Administrative and Support Services	5.2%
Wholesale Trade	5.0%
Government/Public Administration	4.8%
Health Care and Social Assistance	4.2%
Real Estate Rental and Leasing	3.4%
Transportation and Warehousing	3.1%
Accommodation and Food Services	2.7%
Information	2.6%
Other Services (except Public Administration)	1.9%
Educational Services	1.0%
	100.0%

1/ Annualized Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 25

Same Property Performance

Dollars in thousands

	Three months ended June 30,						Percentage Change
	2003			2002
Rental revenues	$	103,745		$	109,596		-5.3	%
Operating expenses		(35,393	)		(34,782	)	-1.8	%
Net operating income	$	68,352		$	74,814		-8.6	%	1/
Average Occupancy		84.6	%		88.2	%	-4.1	%
Rentable Square Feet		34,700,000			34,700,000
	Six months ended June 30,						Percentage Change
	2003			2002
Rental revenues	$	207,901		$	220,911		-5.9	%
Operating expenses		(70,307	)		(68,129	)	-3.2	%
Net operating income	$	137,594		$	152,782		-9.9	%	2/
Average Occupancy		84.7	%		88.9	%	-4.7	%
Rentable Square Feet		34,700,000			34,700,000

Market	2002 to 2003 2nd Quarter NOI Change			2002 to 2003 YTD NOI Change
Atlanta	-14.8	%		-12.4	%
Charlotte	-9.1	%		-8.2	%
Columbia	-1.4	%		-17.6	%
Greenville	-1.0	%		2.0	%
Kansas City	9.5	%		7.0	%
Memphis	-6.6	%		-8.2	%
Nashville	4.1	%		1.2	%
Orlando	-1.7	%		-5.6	%
Piedmont Triad	-7.4	%		-7.5	%
Research Triangle	-3.6	%		-7.4	%
Richmond	-2.5	%		-1.3	%
Tampa	-38.0	%	3/	-40.4	%	4/
	-8.6	%	1/	-9.9	%	2/

1/ Excluding Highwoods Preserve (the 816,000sf office campus in Tampa that Worldcom vacated 12/31/02) the NOI change would have been -4.2%

2/ Excluding Highwoods Preserve the NOI change would have been -5.1%

3/ Excluding Highwoods Preserve the NOI change would have been -6.9%

4/ Excluding Highwoods Preserve the NOI change would have been -8.4%

Page 26

Acquisition Activity

Dollars in thousands

Name	Market	Type 1/	Date Acquired	Square Footage	Cost
First quarter 2003:
Colonade	Richmond	O	01/21/03	66,000	$	7,000
Second quarter 2003:
None

1/ The letter “O” represents Office

Page 27

Disposition Activity

Dollars in thousands
Name	Market	Type 1/	Date Sold	Square Footage	Sales Price
First quarter 2003:
none
Second quarter 2003:
Greenbriar Business Center	Hampton Roads	O	04/07/03	81,000	$	7,000
Madison Park – Building 5610	Piedmont Triad	O	04/14/03	3,000		775
Highwoods Plaza	Tampa	O	04/30/03	66,000		7,050
Summit Executive Centre	Tampa	O	05/01/03	36,000		2,900
Aspen, Cypress, Cedar East and Cedar West	Research Triangle	O	06/26/03	156,000		11,425
				342,000	$	29,150

Assets Contributed to Joint Ventures

	Market	Type 1/	Date Contributed	Square Footage	Sales Price
First quarter 2003:
none
Second quarter 2003:
none

1/ The letter “O” represents Office

Page 28

Development

Dollars in thousands

Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 06/30/03		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Completed Not Stabilized 2/
Catawba	Research Triangle	O	40,000	$	4,030	$	3,209	0	%	2Q03	2Q04
801 Raleigh Corporate Center 2/	Research Triangle	O	100,000		12,016		10,291	42	%	4Q02	2Q04
Tradeport V	Atlanta	I	60,000		2,913		2,722	50	%	4Q02	4Q03
Total or Weighted Average			200,000	$	18,959	$	16,222	36	%

Placed In Service

Property	Market	Type 1/	In-Service Date	Rentable Square Feet	Investment @ 06/30/03		Quarter 2 2003 NOI 3/			Occ %		Leasing %
Seven Springs I	Nashville	O	03/31/2003	131,000	$	15,649	$	(25	)	14	%	76	%

1/ The letters “O” and “I” represent Office and Industrial, respectively.

2/ These properties contributed $190,000 in Net Operating Income (Property Revenue – Property Expense) in Q2 2003.

3/ NOI = Net Operating Income (Property Revenue – Property Expense)

Page 29

Development Land

June 30, 2003

Dollars in thousands
					Total Estimated Market Value
		Developable Square Footage
Market	Acres	Office	Retail	Industrial
On Balance Sheet:
Research Triangle	408	2,965,000	—	162,000	$	63,600
Atlanta	225	270,000	1,100,000	1,040,000		35,200
Piedmont Triad	166	787,000	37,000	1,252,000		18,300
Kansas City 1/	109	725,000	216,000	—		20,200
Baltimore	101	1,102,000	—	—		13,200
Richmond	93	688,000	—	700,000		15,900
Charlotte	87	1,384,000	—	—		14,900
Nashville	50	830,000	—	—		11,800
Orlando	43	862,000	—	—		13,700
Tampa	32	522,000	—	15,000		5,400
Memphis	22	288,000	—	—		4,200
Greenville	12	150,000	—	—		1,800
Jacksonville	10	80,000	—	—		1,100
Columbia	2	20,000	—	—		300
	1,360	10,673,000	1,353,000	3,169,000	$	219,600
Deferred or optioned:
Atlanta	25	—	500,000	—
Research Triangle	32	731,000	—	—
Richmond	11	91,000	—	—
	68	822,000	500,000	—
Total	1,428	11,495,000	1,853,000	3,169,000

1/ Includes 27 acres of residential land

Page 30

Unconsolidated Joint Ventures Assets, Debt and Liabilities

June 30, 2003

Dollars in thousands

				Venture’s Books
Joint Venture	Type 1/	Own%		Total Assets		Debt		Total Liabilities
Dallas County Partners I, LP	O/ I	50.0	%	$	42,549	$	38,461	$	41,314
Dallas County Partners II, LP	O	50.0	%		18,623		23,040		24,369
Dallas County Partners III, LP	O	50.0	%		48		—		40
Fountain Three	O/ I / R	50.0	%		34,895		30,452		32,605
RRHWoods, LLC	O/ M	50.0	%		81,285		66,584		70,241
Dreilander-Fonds 98/29	O	22.8	%		140,834		67,733		70,003
Dreilander-Fonds 97/26 Dreilander-Fonds 99/32	O	42.9	%		117,218		59,364		62,101
MG-HIW, LLC	O	20.0	%		340,246		242,240		250,038
MG-HIW Metrowest I, LLC	O	50.0	%		1,601		—		14
MG-HIW Peachtree Corners, LLC	O	50.0	%		5,334		4,286		4,337
MG-HIW Metrowest II, LLC	O	50.0	%		9,879		5,819		6,021
4600 Madison Associates, LP	O	12.5	%		22,412		17,059		17,585
Board of Trade Investment Co.	O	49.0	%		8,117		835		1,208
Concourse Center Associates, LLC	O	50.0	%		14,646		9,778		10,072
Plaza Colonnade, LLC	O/R	50.0	%		11,236		2,727		3,587
Highwoods-Markel Assoc., LLC	O	50.0	%		14,822		11,610		11,758
SF-HIW Harborview Plaza, LP	O	20.0	%		40,547		22,800		24,702
Kessinger/Hunter, LLC	—	26.5	%		8,749		—		428
Total				$	913,041	$	602,788	$	630,423
				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own%		Total Assets		Debt		Total Liabilities
Dallas County Partners I, LP	O/ I	50.0	%	$	21,275	$	19,231	$	20,657
Dallas County Partners II, LP	O	50.0	%		9,312		11,520		12,185
Dallas County Partners III, LP	O	50.0	%		24		—		20
Fountain Three	O/ I / R	50.0	%		17,448		15,226		16,303
RRHWoods, LLC	O/ M	50.0	%		40,643		33,292		35,121
Dreilander-Fonds 98/29	O	22.8	%		32,124		15,450		15,968
Dreilander-Fonds 97/26 Dreilander-Fonds 99/32	O	42.9	%		50,322		25,485		26,660
MG-HIW, LLC	O	20.0	%		68,049		48,448		50,008
MG-HIW Metrowest I, LLC	O	50.0	%		801		—		7
MG-HIW Peachtree Corners, LLC	O	50.0	%		2,667		2,143		2,169
MG-HIW Metrowest II, LLC	O	50.0	%		4,940		2,910		3,011
4600 Madison Associates, LP	O	12.5	%		2,802		2,132		2,198
Board of Trade Investment Co.	O	49.0	%		3,977		409		592
Concourse Center Associates, LLC	O	50.0	%		7,323		4,889		5,036
Plaza Colonnade, LLC	O/R	50.0	%		5,618		1,364		1,794
Highwoods-Markel Assoc., LLC	O	50.0	%		7,411		5,805		5,879
SF-HIW Harborview Plaza, LP	O	20.0	%		8,109		4,560		4,940
Kessinger/Hunter, LLC	—	26.5	%		2,318		—		113
Total				$	285,163	$	192,864	$	202,661

1/ The letters “O”, “I”, “R”, and “M” represent Office, Industrial, Retail, and Multi-Family, respectively.

Page 31

Unconsolidated Joint Ventures Income

For the Three Months Ended June 30, 2003

Dollars in thousands

			Venture’s Books
Joint Venture	Own %		Revenue		Oper Exp		Interest		Depr/Amort		Net Income
Dallas County Partners I, LP	50.0	%	$	2,885	$	1,310	$	694	$	509	$	372
Dallas County Partners II, LP	50.0	%		1,557		605		592		206		154
Dallas County Partners III, LP	50.0	%		84		37		—		1		46
Fountain Three	50.0	%		1,799		755		569		440		35
RRHWoods, LLC	50.0	%		3,442		1,815		674		871		82
Dreilander-Fonds 98/29	22.8	%		5,031		1,399		1,149		866		1,617
Dreilander-Fonds 99/32 & 97/26	42.9	%		3,925		1,092		1,149		1,006		678
MG-HIW, LLC	20.0	%		12,282		4,589		2,315		2,386		2,992		1/
MG-HIW Metrowest I, LLC	50.0	%		—		8		—		—		(8	)
MG-HIW Rocky Point, LLC	50.0	%		—		—		—		—		—
MG-HIW Peachtree Corners, LLC	50.0	%		141		37		37		25		42
MG-HIW Metrowest II, LLC	50.0	%		143		114		39		83		(93	)
4600 Madison Associates, LP	12.5	%		1,347		531		296		448		72
Board of Trade Investment Co.	49.0	%		607		396		17		100		94
Concourse Center Assoc., LLC	50.0	%		502		131		173		76		122
Highwoods-Markel Assoc., LLC	50.0	%		824		422		319		156		(73	)
Kessinger/Hunter, LLC	28.3	%		1,530		1,237		—		171		122
SF-HIW Harborview Plaza, LP	20.0	%		1,387		442		351		217		377
Plaza Colonnade, LLC	50.0	%		4		—		—		1		3
Total			$	37,490	$	14,920	$	8,374	$	7,562	$	6,634

			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Dallas County Partners I, LP	50.0	%	$	1,443	$	655	$	347	$	254	$	187
Dallas County Partners II, LP	50.0	%		779		303		296		103		77
Dallas County Partners III, LP	50.0	%		42		19		—		1		22
Fountain Three	50.0	%		900		378		285		220		17
RRHWoods, LLC	50.0	%		1,722		908		337		436		41
Highwoods DLF 98/29	22.8	%		1,148		319		262		198		369
Highwoods DLF 97/26 DLF 99/32	42.9	%		1,685		469		493		432		291
MG-HIW, LLC	20.0	%		2,457		918		463		477		599		1/
MG-HIW Metrowest I, LLC	50.0	%		—		4		—		—		(4	)
MH-HIW Rocky Point, LLC	50.0	%		—		—		—		—		—
MG-HIW Peachtree Corners III, LLC	50.0	%		71		19		19		13		20
MG-HIW Metrowest II, LLC	50.0	%		72		57		20		42		(47	)
4600 Madison Associates	12.5	%		168		66		37		56		9
Board of Trade Investment Co.	49.0	%		297		194		8		49		46
Concourse Center Assoc., LLC	50.0	%		251		66		87		38		60
Highwoods-Markel Assoc., LLC	50.0	%		412		211		160		78		(37	)
Kessinger/Hunter & Company	28.3	%		433		350		—		48		35
SF-HIW Harborview Plaza, LP	20.0	%		277		88		70		43		76
Plaza Colonnade, LLC	50.0	%		2		—		—		1		1
Total 2/			$	12,159	$	5,024	$	2,884	$	2,489	$	1,762

1/ Net income EXCLUDES $12.1MM impairment charge at the partnership level of which Highwoods’ share is $2.4MM

2/ Highwoods’ Share of JV income shown above does not include the amortization of a $166K deferred gain

Page 32

Unconsolidated Joint Ventures Income

For the Six Months Ended June 30, 2003

Dollars in thousands

	Own %		Venture’s Books
Joint Venture			Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Dallas County Partners I, LP	50.0	%	$	5,236	$	2,682	$	1,389	$	980	$	185
Dallas County Partners II, LP	50.0	%		3,123		1,294		1,190		411		228
Dallas County Partners III, LP	50.0	%		144		75		—		2		67
Fountain Three	50.0	%		3,562		1,514		1,141		796		111
RRHWoods, LLC	50.0	%		6,949		3,606		1,346		1,706		291
Dreilander-Fonds 98/29	22.8	%		9,673		2,747		2,303		1,728		2,895
Dreilander-Fonds 99/32 & 97/26	42.9	%		8,106		2,215		2,302		2,007		1,582
MG-HIW, LLC	20.0	%		24,573		8,975		4,643		4,729		6,226		1/
MG-HIW Metrowest I, LLC	50.0	%		—		16		—		—		(16	)
MG-HIW Rocky Point, LLC	50.0	%		—		—		—		—		—
MG-HIW Peachtree Corners, LLC	50.0	%		175		62		62		43		8
MG-HIW Metrowest II, LLC	50.0	%		266		223		83		162		(202	)
4600 Madison Associates, LP	12.5	%		2,840		1,078		595		887		280
Board of Trade Investment Co.	49.0	%		1,215		791		34		200		190
Concourse Center Assoc., LLC	50.0	%		1,028		269		346		151		262
Highwoods-Markel Assoc., LLC	50.0	%		1,636		861		558		299		(82	)
Kessinger/Hunter, LLC	28.3	%		2,927		2,396		—		331		200
SF-HIW Harborview Plaza, LP	20.0	%		2,806		850		701		433		822
Plaza Colonnade, LLC	50.0	%		8		—		—		2		6
Total			$	74,267	$	29,654	$	16,693	$	14,867	$	13,053
	Own %		Highwoods’ Share of Joint Venture
Joint Venture			Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Dallas County Partners I, LP	50.0	%	$	2,618	$	1,341	$	695	$	490	$	92
Dallas County Partners II, LP	50.0	%		1,562		647		595		206		114
Dallas County Partners III, LP	50.0	%		72		38		—		1		33
Fountain Three	50.0	%		1,781		757		571		398		55
RRHWoods, LLC	50.0	%		3,476		1,760		673		895		148
Highwoods DLF 98/29	22.8	%		2,206		627		525		394		660
Highwoods DLF 97/26 DLF 99/32	42.9	%		3,481		951		988		861		681
MG-HIW, LLC	20.0	%		4,916		1,795		929		945		1,247		1/
MG-HIW Metrowest I, LLC	50.0	%		—		8		—		—		(8	)
MH-HIW Rocky Point, LLC	50.0	%		—		—		—		—		—
MG-HIW Peachtree Corners III, LLC	50.0	%		88		31		31		22		4
MG-HIW Metrowest II, LLC	50.0	%		133		112		42		81		(102	)
4600 Madison Associates	12.5	%		355		135		74		111		35
Board of Trade Investment Co. 2/	49.0	%		595		388		17		98		92
Concourse Center Assoc., LLC	50.0	%		514		135		173		76		130
Highwoods-Markel Assoc., LLC	50.0	%		818		431		279		150		(42	)
Kessinger/Hunter & Company	26.5	%		776		635		—		88		53
SF-HIW Harborview Plaza, LP	20.0	%		561		170		140		87		164
Plaza Colonnade, LLC	50.0	%		4		—		—		1		3
Total 3/			$	23,956	$	9,961	$	5,732	$	4,904	$	3,359

1/ Net income EXCLUDES $12.1MM impairment charge at the partnership level of which Highwoods’ share is $2.4MM

2/ Does not include a $6K audit adjustment to reduce the provision for income taxes related to a prior year

3/ Highwoods’ Share of JV income shown above does not include the amortization of a $324K deferred gain

Page 33

Unconsolidated Joint Ventures Long-Term Debt Detail

Dollars in thousands

Joint Venture	Own %		Lender	Interest Rate			Maturity Date	Loan Balance 06/30/03
Dallas County Partners I, LP	50.0	%	various 1/	7.2	%		various 1/	$	38,461
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.2	%		Jun-13		23,040
Fountain Three	50.0	%	John Hancock Life Insurance Co.	7.8	%		Jan-08		6,274
	50.0	%	various 2/	7.5	%		various 2/		24,178
Total Fountain Three				7.5	%				30,452
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	2.9	%	3/	Nov-15		23,000
	50.0	%	CIGNA	6.8	%		Sep-12		8,429
	50.0	%	Industrial Revenue Bonds	4.5	%	3/	Sep-15		6,000
	50.0	%	various 4/	5.9	%	3/	various 4/		29,155
Total RRHWoods, LLC				4.8	%				66,584
Dreilander-Fonds 98/29	22.8	%	USG Annuity & Life Company	6.8	%		May-11		67,733
Dreilander-Fonds 97/26 Dreilander-Fonds 99/32	42.9	%	Massachusetts Mutual Life Ins. Co.	7.7	%		May-12		59,364
MG-HIW, LLC	20.0	%	GE Capital	3.3	%	3/	Jan-06		242,240
MG-HIW Peachtree Corners, LLC	50.0	%	Highwoods Finance, LLC	3.1	%	3/	Jul-03		4,286
MG-HIW Metrowest II, LLC	50.0	%	Wachovia	2.9	%	3/	Feb-05		5,819
4600 Madison Associates, LP	12.5	%	State Farm	6.9	%		Apr-18		17,059
Board of Trade Investment Co.	49.0	%	KC Board of Trade Clearing Corp.	7.8	%		Sep-07		835
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	7.0	%		Jul-10		9,778
Highwoods-Markel Assoc., LLC	50.0	%	First Community Bank	7.9	%		Apr-11		9,987
	50.0	%	First Community Bank	8.6	%		Apr-10		1,623
Total Highwoods-Markel Assoc., LLC				8.0	%				11,610
SF-HIW Harborview Plaza, LP	20.0	%	Met Life	6.1	%		Oct-12		22,800
Plaza Colonnade, LLC	50.0	%	Wells Fargo	3.2	%		Feb-06		2,727
Total Secured Loans								$	602,788
Highwoods’ Share of the above								$	192,864

1/ includes 15 fixed rate loans under $4 million with maturities ranging from January 2006 to July 2011

2/ includes 6 fixed rate loans under $6 million with maturities ranging from May 2008 to September 2012

3/ The floating rate loans’ interest rates are based on June 30, 2003’s rates.

4/ includes 6 fixed rate loans under $6 million maturing between October 2002 to September 2012 and 2 floating rate loans under $6 million with maturities ranging from January 2004 to November 2015

Page 34

Portfolio Summary Unconsolidated Joint Ventures

As of June 30, 2003

Summary by Location:
Market	Rentable Square Feet 1/	Occupancy 2/		Percentage of Annualized Revenue – Highwoods’ Share Only 3/
				Office		Industrial		Retail		Multi-Family		Total
Des Moines	2,245,000	93.4	%	32.5	%	4.0	%	1.1	%	4.3	%	41.9	%
Orlando	1,764,000	84.4	%	17.0	%	—		—		—		17.0	%
Atlanta	930,000	89.9	%	14.7	%	—		—		—		14.7	%
Research Triangle	1,125,000	84.0	%	7.6	%	—		—		—		7.6	%
Tampa	571,000	85.3	%	5.7	%	—		—		—		5.7	%
Piedmont Triad	364,000	100.0	%	4.6	%	—		—		—		4.6	%
Kansas City	427,000	88.2	%	4.4	%	—		—		—		4.4	%
Richmond	121,000	100.0	%	2.5	%	—		—		—		2.5	%
Charlotte	148,000	100.0	%	1.0	%	—		—		—		1.0	%
Other	110,000	100.0	%	0.6	%	—		—		—		0.6	%
Total	7,805,000	89.4	%	90.6	%	4.0	%	1.1	%	4.3	%	100.0	%

1/ Excludes Des Moines’ apartment units.

2/ Excludes Des Moines’ apartment occupancy percentage of 90%.

3/ Annualized Rental Revenue is June 2003 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 35

Unconsolidated Joint Venture Lease Expirations

June 30, 2003

Dollars in thousands

Year	Number of Leases	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Total
Remainder of 2003	100	330,307	4.7	%	$	6,645	$	20.12	5.3	%
2004	111	641,562	9.1	%		13,092		20.41	10.4	%
2005	126	901,378	12.8	%		16,192		17.96	13.0	%
2006	108	989,075	14.1	%		15,888		16.06	12.6	%
2007	59	381,086	5.4	%		7,988		20.96	6.3	%
2008	53	1,165,598	16.6	%		17,140		14.71	13.6	%
2009	17	576,400	8.2	%		10,019		17.38	8.0	%
2010	27	407,731	5.8	%		6,471		15.87	5.1	%
2011	12	427,781	6.1	%		9,203		21.51	7.3	%
2012	20	323,546	4.6	%		7,360		22.75	5.8	%
2013 and thereafter	29	887,726	12.6	%		15,866		17.87	12.6	%
	662	7,032,190	100.0	%	$	125,865	$	17.90	100.0	%

1/ Annualized Revenue is June 2003 rental revenue for the venture (base rent plus operating expense pass throughs) multiplied by 12.

Page 36

Unconsolidated Joint Ventures Development

Dollars in thousands

Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 06/30/03		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Plaza Colonnade, LLC 1/	50	%	Kansas City	285,000	$	69,700	$	11,236	59	%	Q304	Q305
Highwoods’ Share of the above				142,500	$	34,850	$	5,618	59	%

1/ Includes $14.1 million in investment cost that will be funded by tax increment financing

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