EXHIBIT 99.2

Supplemental Operating and Financial Information

December 31, 2003

Supplemental Information

Table of Contents

December 31, 2003

Schedule	Page
Summary and Corporate Information	i, ii and iii
Consolidated Statement of Income	1
Statement of Funds from Operations	2
Notes to FFO Table, Net Cash Flow and Capital Expenditures	3
Consolidated Balance Sheet	4
Estimated Net Asset Value	5
Combined Financial Information	6
Components of Discontinued Operations	7
Capitalization	8
Long-Term Debt Summary	9
Long-Term Debt Detail	10
Portfolio Summary	11, 12 and 13
Occupancy Trends	14
Leasing Statistics	15, 16 and 17
Leasing Statistics by Market	18
Rental Rate Comparisons by Market	19
Lease Expirations	20 and 21
Office Lease Expirations by Market by Quarter	22
Industrial Lease Expirations by Market by Quarter	23
Office Lease Expirations by Market by Year	24
Industrial Lease Expirations by Market by Year	25
Customer Diversification	26
Same Property Performance	27
Acquisition Activity	28
Disposition Activity and Assets Contributed to Joint Ventures	29
Development Activity	30
Development Land	31
Unconsolidated Joint Ventures Assets, Debt and Liabilities	32
Unconsolidated Joint Ventures Income (Three Months)	33
Unconsolidated Joint Ventures Income (Nine Months)	34
Unconsolidated Joint Ventures Long-Term Debt Detail	35
Portfolio Summary Unconsolidated Joint Ventures	36
Unconsolidated Joint Ventures Lease Expirations	37
Unconsolidated Joint Ventures Development	38

The information within refers to all Highwoods Properties' consolidated entities, except pages 32 to 38 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.

Highwoods Properties, Inc. 12/31/03

Summary

Dollars in thousands, except per share amounts

	Three Months Ended
	12/31/03			12/31/02			Change F/(U)
Operations
Revenue from continuing operations	$	107,901		$	107,153		$	748
Rental property expense from continuing operations		38,321			34,553			(3,768	)
Net operating income from continuing operations	$	69,580		$	72,600		$	(3,020	)
Revenue from discontinued operations	$	3,895		$	11,737		$	(7,842	)
Rental property expense from discontinued operations		1,052			3,206			2,154
Net operating income from discontinued operations	$	2,843		$	8,531		$	(5,688	)
Interest and other income	$	3,343		$	4,781		$	(1,438	)
Equity in earnings of unconsolidated affiliates		1,848			1,765			83
General and administrative		6,671			6,026			(645	)
G&A as a % of revenue and other income		5.7	%		4.8	%		-0.9	%
EBITDA calculation
Net income	$	12,930		$	24,017		$	(11,087	)
Addback depreciation and amortization		34,153			38,016		$	(3,863	)
Addback interest expense		28,451			30,546		$	(2,095	)
EBITDA	$	75,534		$	92,579		$	(17,045	)
Interest expense from continuing operations	$	28,451		$	30,117		$	1,666
Interest expense from discontinued operations		—			429			429
EBITDA/Interest expense		2.65			3.03			(0.38	)
EBITDA/Interest expense + preferred dividends		2.09			2.42			(0.33	)
Net income	$	12,930		$	24,017		$	(11,087	)
Funds from operations		32,598			39,892			(7,294	)
Cash available for distribution		19,787			31,731			(11,944	)
Per share - diluted:
Net income	$	0.10		$	0.30		$	(0.20	)
Funds from operations		0.61			0.75			(0.14	)
Dividends paid		0.425			0.585			(0.16	)
Dividends paid as % of funds from operations		69.7	%		78.0	%		8.3	%
Dividends paid as % of cash available for distribution		128.9	%		111.4	%		-17.5	%
	12/31/03			12/31/02			Change
Capitalization
Total assets	$	3,326,809		$	3,395,369		$	(68,560	)
Market capitalization:
Total debt		1,558,758			1,528,720			30,038
Market value of common equity		1,893,241			1,711,733			181,508
Total market capitalization	$	3,451,999		$	3,240,453		$	211,546
Total Debt/Total Assets		46.9	%		45.0	%		-1.9	%
	12/31/03			12/31/02			Change F/(U)
Portfolio
Total In-Service Square Footage		34,922,000			37,112,000			(2,190,000	)
Occupancy		81.5	%		84.0	%		-2.5	%
Same Property NOI	$	60,966		$	67,219		$	(6,253	)

Highwoods Properties, Inc. i 12/31/03

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 Securities
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.
Chief Executive Officer and Director	Anatole Pevnev - 216-263-4783
Edward J. Fritsch	Morgan Stanley Dean Witter
President, Chief Operating Officer	Gregory Whyte - 212-761-6331
and Director
	Prudential Equity Group
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, Investments and
Strategic Analysis
Mack D. Pridgen III
Vice President, General Counsel and
Secretary
Terry L. Stevens
Vice President, Chief Financial Officer
and Treasurer

Highwoods Properties, Inc. ii 12/31/03

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
Research Triangle, NC	Report or to be added to our e-mail or fax list, please contact the
Robert G. Cutlip, 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/	Highwoods Properties, Inc., a member of the S&P MidCap 400
Nashville	Index, is a fully integrated, self-administered real estate
Michael E. Harris - Regional Manager	investment trust ("REIT") that provides leasing, management,
	development, construction and other customer-related services
Kansas City, MO	for its properites and for third parties. As of December 31, 2003,
Barrett Brady, Senior Vice President	the Company owned or had an interest in 530 in-service office,
	industrial and retail properties encompassing approximately
Charlotte, NC	41.7 million square feet. Highwoods also owns approximately
Thomas F. Cochran, Senior Vice President	1,305 acres of development land. Highwoods is based in
	Raleigh, North Carolina, and its properties and development
Memphis, TN	land are located in Florida, Georgia, Iowa, Kansas, Missouri,
Michael E. Harris, Senior Vice President	North Carolina, South Carolina, Tennessee and Virginia. For
	more information about Highwoods Properties, please visit our
Nashville, TN	Web site at www.highwoods.com.
W. Brian Reames, Vice President

Highwoods Properties, Inc. iii 12/31/03

Consolidated Statements of Income

Dollars in thousands, except per share amounts

	Year Ended						Three Months Ended
	12/31/03			12/31/02			12/31/03			09/30/03			06/30/03			03/31/03			12/31/02
Rental revenue	$	422,062		$	433,065		$	107,901		$	106,536		$	103,657		$	103,968		$	107,153
Operating expenses:
Rental property		147,380			137,713			38,321			37,060			36,119			35,880			34,553
Depreciation and amortization		129,225			121,749			34,054			31,350			31,892			31,929			35,366
General and administrative (includes $3,700 of nonrecurring compensation expense in the year ended 12/31/02)		24,815			24,576			6,671			6,276			6,524			5,344			6,026
Litigation expense		—			2,700			—			—			—			—			—
Total operating expenses		301,420			286,738			79,046			74,686			74,535			73,153			75,945
Interest expense:
Contractual		111,193			109,512			27,575			28,122			27,822			27,674			29,751
Amortization of deferred financing costs		3,078			1,393			876			819			757			626			366
		114,271			110,905			28,451			28,941			28,579			28,300			30,117
Other income:
Interest and other income		11,916			13,562			3,343			2,506			3,208			2,859			4,781
Equity in earnings/(loss) of unconsolidated affiliates		4,750			8,063			1,848			1,626			(485	)		1,761			1,765
		16,666			21,625			5,191			4,132			2,723			4,620			6,546
Income before gain/(loss) on disposition of land and depreciable assets, minority interest and discontinued operations		23,037			57,047			5,595			7,041			3,266			7,135			7,637
Gain on disposition of land		3,739			6,894			397			1,067			1,412			863			396
(Loss)/gain on disposition and impairment of depreciable assets, net		37			4,502			—			(203	)		220			20			(548	)
Income before minority interest and discontinued operations		26,813			68,443			5,992			7,905			4,898			8,018			7,485
Minority interest		(3,003	)		(8,296	)		(628	)		(842	)		(572	)		(961	)		(852	)
Income from continuing operations		23,810			60,147			5,364			7,063			4,326			7,057			6,633
Discontinued operations:
Income from discontinued operations, net of minority int		14,326			21,707			2,462			3,130			4,449			4,285			4,822
Gain/(loss) on sale of discontinued operations, net of minority int		17,559			11,607			5,104			11,280			1,345			(170	)		12,562
		31,885			33,314			7,566			14,410			5,794			4,115			17,384
Net income		55,695			93,461			12,930			21,473			10,120			11,172			24,017
Dividends on preferred stock		(30,852	)		(30,852	)		(7,713	)		(7,713	)		(7,713	)		(7,713	)		(7,713	)
Net income available for common stockholders	$	24,843		$	62,609		$	5,217		$	13,760		$	2,407		$	3,459		$	16,304
Net income per common share - diluted:
(Loss)/income from continuing operations	$	(0.13	)	$	0.55		$	(0.05	)	$	(0.01	)	$	(0.06	)	$	(0.01	)	$	(0.02	)
Income from discontinued operations	$	0.60		$	0.62		$	0.15		$	0.27		$	0.11		$	0.07		$	0.32
Net income	$	0.47		$	1.17		$	0.10		$	0.26		$	0.05		$	0.06		$	0.30
Weighted average common shares outstanding - diluted		53,409			53,485			53,651			53,261			53,315			53,475			53,407
Rental property expenses / rental revenue		34.9	%		31.8	%		35.5	%		34.8	%		34.8	%		34.5	%		32.2	%

Highwoods Properties, Inc. Page 1 12/31/03

Statement of Funds from Operations

Dollars in thousands, except per share amounts

	Year Ended						Three Months Ended
	12/31/03			12/31/02			12/31/03			09/30/03			06/30/03			03/31/03			12/31/02
Funds from operations:
Net income	$	55,695		$	93,461		$	12,930		$	21,473		$	10,120		$	11,172		$	24,017
Dividends to preferred shareholders		(30,852	)		(30,852	)		(7,713	)		(7,713	)		(7,713	)		(7,713	)		(7,713	)
Net income applicable to common shares		24,843			62,609			5,217			13,760			2,407			3,459			16,304
Add/(Deduct):
Depreciation and amortization of real estate assets 1/		125,779			118,367			33,244			30,368			31,058			31,109			34,517
Gain/(loss) on disposition of depreciable assets 2/		(37	)		(14,421	)		—			203			(220	)		(20	)		197
Minority interest in income from continuing operations		3,003			8,296			628			842			572			961			852
Unconsolidated affiliates:
Depreciation and amortization of real estate assets 1/		9,225			9,619			2,086			2,235			2,489			2,415			2,554
Discontinued operations:
Depreciation and amortization of real estate assets 1/		2,918			12,028			99			565			889			1,365			2,650
Gain on sale, net of minority interest 2/		(17,847	)		(15,191	)		(5,104	)		(11,280	)		(1,345	)		(118	)		(12,562	)
Minority interest in income from discontinued operations		1,792			2,909			293			387			560			552			635
Funds from operations before amounts allocable to min int 3/		149,676			184,216			36,463			37,080			36,410			39,723			45,147
Minority interest in funds from operations		(16,554	)		(21,811	)		(3,865	)		(4,083	)		(4,074	)		(4,532	)		(5,255	)
Funds from operations applicable to common shares 3/	$	133,122		$	162,405		$	32,598		$	32,997		$	32,336		$	35,191		$	39,892
Cash available for distribution:
Funds from operations before amounts allocable to min int 3/	$	149,676		$	184,216		$	36,463		$	37,080		$	36,410		$	39,723		$	45,147
Add/(Deduct):
Rental income from straight-line rents		(5,189	)		(3,672	)		(688	)		(1,136	)		(1,680	)		(1,685	)		(1,132	)
Amortization of intangible lease assets		517			—			305			212			—			—			—
Depreciation of non-real estate assets 1/		3,446			3,382			810			982			834			820			849
Impairment charges		2,701			13,503			—			—			2,413			288			351
Amortization of deferred financing costs		3,078			1,393			876			819			757			626			366
Non-recurring compensation expense		—			3,700			—			—			—			—			—
Litigation expense		—			2,700			—			—			—			—			—
Non-incremental revenue generating capital expenditures paid:
Building improvements		(12,409	)		(7,947	)		(2,384	)		(4,500	)		(2,734	)		(2,791	)		(3,086	)
2nd generation tenant improvements		(27,810	)		(20,531	)		(9,802	)		(6,588	)		(6,932	)		(4,488	)		(7,796	)
2nd generation lease commissions		(17,258	)		(12,321	)		(5,793	)		(4,551	)		(3,546	)		(3,368	)		(2,968	)
		(57,477	)		(40,799	)		(17,979	)		(15,639	)		(13,212	)		(10,647	)		(13,850	)
Cash available for distribution	$	96,752		$	164,423		$	19,787		$	22,318		$	25,522		$	29,125		$	31,731
Funds from operations per share - diluted
Net income applicable to common shares	$	0.47		$	1.17		$	0.10		$	0.26		$	0.05		$	0.06		$	0.30
Add/(Deduct):
Depreciation and amortization of real estate assets 1/		2.35			2.22			0.62			0.57			0.58			0.58			0.65
Gain/(loss) on disposition of depreciable assets 2/		—			(0.27	)		—			—			—			—			—
Minority interest in income from operations		0.06			0.16			0.01			0.02			0.01			0.02			0.02
Unconsolidated affiliates:
Depreciation and amortization of real estate assets 1/		0.17			0.18			0.04			0.04			0.04			0.05			0.05
Discontinued operations:
Depreciation and amortization of real estate assets		0.05			0.22			—			0.01			0.02			0.02			0.05
Gain on sale, net of minority interest 2/		(0.33	)		(0.28	)		(0.10	)		(0.21	)		(0.02	)		—			(0.24	)
Minority interest in income from discontinued operations		0.03			0.05			0.01			0.01			—			0.01			0.01
Funds from operations before amounts allocable to min int 3/		2.80			3.45			0.68			0.70			0.68			0.74			0.84
Minority interest in funds from operations		(0.31	)		(0.41	)		(0.07	)		(0.08	)		(0.08	)		(0.08	)		(0.09	)
Funds from operations applicable to common shares 3/	$	2.49		$	3.04		$	0.61		$	0.62		$	0.60		$	0.66		$	0.75
Weighted average shares outstanding - diluted		53,409			53,485			53,651			53,261			53,315			53,475			53,407
Weighted average shares/units outstanding - diluted		60,034			60,631			59,990			59,830			60,028			60,360			60,437
Dividend payout data:
Dividends paid per common share/common unit - diluted:	$	1.860		$	2.340		$	0.425		$	0.425		$	0.425		$	0.585		$	0.585
Funds from operations		74.7	%		77.0	%		69.7	%		68.5	%		70.8	%		88.6	%		78.0	%
Cash available for distribution		115.4	%		86.3	%		128.9	%		113.9	%		100.0	%		121.2	%		111.4	%

Highwoods Properties, Inc. Page 2 12/31/03

Notes to FFO Table, Net Cash Flow and Capital Expenditures

Dollars in thousands, except per share amounts

1/      In connection with the SEC’s adoption of Regulation G, which governs the presentation of non-GAAP financial measures in documents filed with the SEC, the Company revised its definition of FFO for 2003 and all periods presented relating to the add-back of non-real estate depreciation and amortization. The Company’s revised definition is in accordance with the definition provided by NAREIT. The change reduced FFO before amounts allocable to minority interest by $3.4 million, or $0.06 per share for the full year 2003 and $3.4 million, or $0.05 per share for the full year 2002. For the fourth quarter of 2003, the impact was $810,000, or $0.01 per share and for the fourth quarter of 2002, the impact was $849,000, or $0.01 per share. For the first through third quarters of 2003, the change was $820,000, or $0.01 per share, $834,000, or $0.02 per share and $982,000, or $0.02 per share, respectively.
2/      In October 2003, NAREIT issued a Financial Reporting Alert that changed its current implementation guidance for FFO regarding impairment charges. Accordingly, impairment charges related to depreciable assets have now been included in FFO for the periods presented. The following is a reconciliation of gain/(loss) on disposition of depreciable assets included in the FFO calculation and gain/(loss) on disposition of depreciable assets included in the Company's Consolidated Statements of Income for all periods presented:
	Year Ended						Three Months Ended
	12/31/03			12/31/02			12/31/03			09/30/03			06/30/03			03/31/03			12/31/02
Continuing Operations:
Gain/(loss) on disposition of depreciable assets per FFO calculation	$	37		$	14,421		$	—		$	(203	)	$	220		$	20		$	(197	)
Impairment charges		—			(9,919	)		—			—			—			—			(351	)
Gain/(loss) on disposition and impairment of depreciable assets, net per Consolidated Statements of Income	$	37		$	4,502		$	—		$	(203	)	$	220		$	20		$	(548	)
Discontinued Operations:
Gain/(loss) on disposition of depreciable assets per FFO calculation	$	17,847		$	15,191		$	5,104		$	11,280		$	1,345		$	118		$	12,562
Impairment charges		(288	)		(3,584	)		—			—			—			(288	)		—
Gain/(loss) on disposition and impairment of depreciable assets, net per Consolidated Statements of Income	$	17,559		$	11,607		$	5,104		$	11,280		$	1,345		$	(170	)	$	12,562
In addition to the impairment charges detailed above, FFO for the year ended December 31, 2003 also excludes a $2.4 million impairment charge included in the Company's equity in earnings of unconsolidated affiliates related to the acquisition of certain assets of the MG-HIW, LLC joint venture by the Company.
3/      As a result of the FASB’s “Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections” (“SFAS 145”), losses on the extinguishment of debt will no longer be classified as an extraordinary item in the Company’s Consolidated Statements of Income. Therefore, the calculation of FFO will no longer include an add-back of this amount. Accordingly, FFO before amounts allocable to minority interest for the year ended December 31, 2002 was decreased by $687,000, which represents a loss on the extinguishment of debt incurred during those periods. There were no losses on the extinguishment of debt incurred in 2003.
As a result of the changes to the FFO calculation as outlined in footnotes 1/, 2/ and 3/, FFO has been reduced by the following in dollars and per share amounts:
FFO in dollars before amounts allocable to minority interest	$	(6,147	)	$	(17,572	)	$	(810	)	$	(982	)	$	(3,247	)	$	(1,108	)	$	(1,200	)
FFO per share	$	(0.11	)	$	(0.29	)	$	(0.01	)	$	(0.02	)	$	(0.06	)	$	(0.02	)	$	(0.02	)
Net cash provided by/(used in):
Operating activities	$	157,120		$	201,107		$	28,360		$	54,887		$	35,067		$	38,806		$	28,128
Investing activities		65,511			195,587			64,535			14,599			6,565			(20,188	)		110,308
Financing activities		(215,084	)		(386,253	)		(87,414	)		(69,428	)		(47,811	)		(10,431	)		(141,417	)
Net increase/(decrease) in cash and cash equivalents	$	7,547		$	10,441		$	5,481		$	58		$	(6,179	)	$	8,187		$	(2,981	)
	Year Ended
	12/31/03			12/31/02
Supplemental Capital Expenditure Disclosure
Development cost:
Shell construction and predevelopment costs	$	8,419		$	40,910
1st generation tenant improvements		15,625			15,270
1st generation lease commissions		2,549			4,569
Nonrecurring property renovation cost		15,994			11,195
Acquisitions		102,442			15,511
Furniture, Fixtures and Equipment		853			2,616
	$	145,882		$	90,071
Non-incremental revenue generating capital expenditures paid:		57,477			40,799
Total per the Statement of Cash Flows	$	203,359		$	130,870

Highwoods Properties, Inc. Page 3 12/31/03

Consolidated Balance Sheets

Dollars in thousands

	12/31/03			09/30/03			06/30/03			03/31/03			12/31/02
Assets:
Real estate assets, at cost:
Land and improvements	$	397,131		$	397,278		$	383,022		$	393,758		$	395,556
Buildings and tenant improvements		2,903,147			2,885,818			2,784,406			2,853,010			2,834,670
Development in process		6,899			11,168			9,158			4,651			6,420
Land held for development		191,158			174,418			158,855			162,088			164,341
Furniture, fixtures and equipment		21,818			21,605			21,223			21,150			20,966
		3,520,153			3,490,287			3,356,664			3,434,657			3,421,953
Less-accumulated depreciation		(537,851	)		(511,614	)		(499,280	)		(485,301	)		(455,685	)
Net real estate assets		2,982,302			2,978,673			2,857,384			2,949,356			2,966,268
Property held for sale		65,724			163,590			235,402			173,085			166,703
Cash and cash equivalents		18,564			13,083			13,025			19,204			11,017
Restricted cash		6,320			6,810			3,163			2,943			8,582
Accounts receivable, net		17,827			12,570			13,902			12,723			13,578
Notes receivable		24,623			18,920			27,617			32,077			31,057
Accrued straight-line rents receivable		51,189			51,592			51,703			50,462			48,777
Investment in unconsolidated affiliates		74,665			73,372			76,499			78,229			79,504
Other assets:
Deferred leasing costs		110,362			105,199			100,360			99,548			99,895
Deferred financing costs		46,198			44,506			42,544			42,548			26,120
Prepaid expenses and other		13,799			16,341			16,882			16,388			15,295
		170,359			166,046			159,786			158,484			141,310
Less-accumulated amortization		(84,764	)		(81,134	)		(76,448	)		(73,531	)		(71,427	)
Other assets, net		85,595			84,912			83,338			84,953			69,883
Total Assets	$	3,326,809		$	3,403,522		$	3,362,033		$	3,403,032		$	3,395,369
Liabilities and Stockholders’ Equity:
Mortgages and notes payable	$	1,558,758		$	1,612,483		$	1,579,265		$	1,580,301		$	1,528,720
Accounts payable, accrued expenses and other liabilities		111,772			118,192			102,949			108,808			120,614
Total Liabilities		1,670,530			1,730,675			1,682,214			1,689,109			1,649,334
Minority interest		165,250			174,058			177,104			183,297			188,563
Stockholders’ Equity:
Preferred stock		377,445			377,445			377,445			377,445			377,445
Common stock		535			531			531			535			534
Additional paid-in capital		1,393,103			1,384,129			1,383,568			1,392,118			1,390,043
Distributions in excess of net earnings		(271,971	)		(254,546	)		(245,751	)		(225,430	)		(197,647	)
Accumulated other comprehensive loss		(3,650	)		(4,002	)		(7,831	)		(8,767	)		(9,204	)
Deferred compensation		(4,433	)		(4,768	)		(5,247	)		(5,275	)		(3,699	)
Total Stockholders’ Equity		1,491,029			1,498,789			1,502,715			1,530,626			1,557,472
Total Liabilities and Stockholders’ Equity	$	3,326,809		$	3,403,522		$	3,362,033		$	3,403,032		$	3,395,369
Ratios
Total Debt/Total Assets		46.9	%		47.4	%		47.0	%		46.4	%		45.0	%

Highwoods Properties, Inc. Page 4 12/31/03

Estimated Net Asset Value

December 31, 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		9.00	%		9.25	%		9.50	%
Retail		7.75	%		8.00	%		8.25	%
Industrial/Other		8.75	%		9.00	%		9.25	%
Weighted average		8.84	%		9.09	%		9.34	%
Wholly Owned Properties Net Operating Income YTD (1)
Office 2/ 3/	$	217,151		$	217,151		$	217,151
Retail		26,516			26,516			26,516
Industrial/Other 4/		26,076			26,076			26,076
Total Net Operating Income	$	269,743		$	269,743		$	269,743
Wholly Owned Properties Net Operating Income Annualized
Office	$	223,786		$	223,786		$	223,786
Retail		26,516			26,516			26,516
Industrial/Other		26,076			26,076			26,076
Total Net Operating Income	$	276,378		$	276,378		$	276,378
Wholly Owned Properties Capitalized Value
Office	$	2,486,511		$	2,419,308		$	2,355,642
Retail		342,142			331,450			321,406
Industrial/Other		298,011			289,733			281,903
	$	3,126,664		$	3,040,491		$	2,958,951
Highwoods’ Share of Joint Ventures
Net Operating Income YTD	$	26,684		$	26,684		$	26,684
Net Operating Income Annualized	$	25,025		$	25,025		$	25,025
Capitalization Rates		9.00	%		9.25	%		9.50	%
Capitalized Value	$	278,056		$	270,541		$	263,421
Value of Highwoods Preserve at $80 per square foot 5/	$	65,280		$	65,280		$	65,280
Total In-Service Property Value	$	3,470,000		$	3,376,312		$	3,287,652
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	$	18,954		$	18,954		$	18,954
Property Held for Sale, at Net Sales Price		90,266			90,266			90,266
Land held for development at Book Value		191,158			191,158			191,158
Cash and cash equivalents		18,564			18,564			18,564
Restricted cash		6,320			6,320			6,320
Accounts receivable, net		17,827			17,827			17,827
Notes receivable		24,623			24,623			24,623
Other assets total	$	367,712		$	367,712		$	367,712
Gross Value of Assets	$	3,870,512		$	3,776,824		$	3,688,164
Deductions:
Total Liabilities	$	1,670,530		$	1,670,530		$	1,670,530
Preferred stock		377,445			377,445			377,445
Highwoods’ Share of Joint Ventures Liabilities		199,593			199,593			199,593
Estimated Net Asset Value	$	1,622,944		$	1,529,256		$	1,440,596
Total diluted common shares and operating units		59,724			59,724			59,724
Estimated Net Asset Value Per Share	$	27.17		$	25.61		$	24.12

1/ Excludes straight-line rent of $5.2 million and the intra period impact of the net operating income related to acquisitions and dispositions

2/ Added back the $2.5 million operating loss at Highwoods Preserve

3/ Deducted $497,000 for the operating income on the completed but not stabilized development projects

4/ Deducted $117,000 for the operating income on the completed but not stabilized development project

5/ Highwoods Preserve is an 816,000 square foot office campus in Tampa that Worldcom vacated 12/31/02.

Highwoods Properties, Inc. Page 5 12/31/03

Combined Financial Information

Highwoods Properties and Unconsolidated Joint Ventures

Dollars in thousands

	Highwoods Properties Inc.			Highwoods’ Share of Joint Ventures		Total
				(see pages 32 - 34)
Statement of Operations:
For the three months ended December 31, 2003
Revenue:
Rental property revenue	$	107,901		$	11,164	$	119,065
Expenses:
Rental property expense		38,321			4,814		43,135
Depreciation and amortization		34,054			2,086		36,140
General and administrative		6,671			—		6,671
Interest expense:
Contractual		27,575			2,571		30,146
Amortization of deferred financing costs		876			—		876
		28,451			2,571		31,022
Other income		5,191			—		5,191
Income from continuing operations before gains	$	5,595		$	1,693	$	7,288
Net income	$	12,930			1,848	$	14,778
Deduct equity in earnings of unconsolidated affiliates		(1,848	)		—		(1,848	)
Addback depreciation and amortization		34,153			2,086		36,239
Addback interest expense		28,451			2,571		31,022
EBITDA	$	73,686		$	6,505	$	80,191
EBITDA /Interest Expense							2.58
For the year ended December 31, 2003
Revenue:
Rental property revenue	$	422,062		$	46,307	$	468,369
Expenses:
Rental property expense		147,380			19,623		167,003
Depreciation and amortization		129,225			9,225		138,450
General and administrative		24,815			—		24,815
Interest expense:
Contractual		111,193			10,941		122,134
Amortization of deferred financing costs		3,078			—		3,078
		114,271			10,941		125,212
Other income		16,666			—		16,666
Income from continuing operations before gains	$	23,037		$	6,518	$	29,555
Net income	$	55,695		$	4,750	$	60,445
Deduct equity in earnings of unconsolidated affiliates		(4,750	)		—		(4,750	)
Addback depreciation and amortization		132,143			9,225		141,368
Addback interest expense		115,271			10,941		126,212
EBITDA	$	298,359		$	24,916	$	323,275
EBITDA /Interest Expense							2.56
As of December 31, 2003
Balance Sheet Information:
Total Assets 1/	$	3,252,144		$	279,055	$	3,531,199
Debt		1,558,758			190,541		1,749,299
Total Liabilities		1,670,530			199,593		1,870,123
Total Debt/Total Assets							49.5	%

1/ Excludes investment in unconsolidated affiliates

Highwoods Properties, Inc. Page 6 12/31/03

Components of Discontinued Operations

Dollars in thousands, except per share amounts

	Year Ended						Three Months Ended
	12/31/03			12/31/02			12/31/03			09/30/03			06/30/03			03/31/03			12/31/02
Rental revenue	$	27,015		$	53,437		$	3,895		$	5,671		$	8,485		$	8,964		$	11,737
Operating expenses:
Rental property		7,080			15,108			1,052			1,471			2,187			2,370			3,206
Depreciation and amortization		2,918			12,028			99			565			889			1,365			2,650
Interest expense		1,000			1,919			—			143			428			429			429
Total operating expenses		10,998			29,055			1,151			2,179			3,504			4,164			6,285
Interest and other income		101			234			11			25			28			37			5
		101			234			11			25			28			37			5
Income before gain/(loss) on disposition of depreciable assets and minority interest		16,118			24,616			2,755			3,517			5,009			4,837			5,457
Minority interest		(1,792	)		(2,909	)		(293	)		(387	)		(560	)		(552	)		(635	)
Income from discontinued operations, net of minority interest		14,326			21,707			2,462			3,130			4,449			4,285			4,822
Gain/(loss) on disposition of discontinued operations		19,710			13,122			5,711			12,676			1,515			(192	)		14,202
Minority Interest		(2,151	)		(1,515	)		(607	)		(1,396	)		(170	)		22			(1,640	)
Gain on disposition of discontinued operations, net of minority interest		17,559			11,607			5,104			11,280			1,345			(170	)		12,562
Total discontinued operations	$	31,885		$	33,314		$	7,566		$	14,410		$	5,794		$	4,115		$	17,384

Highwoods Properties, Inc. Page 7 12/31/03

Capitalization

Dollars, shares and units in thousands

	12/31/03		09/30/03		06/30/03		03/31/03		12/31/02
Long-Term Debt (see page 9 & 10)	$	1,558,758	$	1,612,483	$	1,579,265	$	1,580,301	$	1,528,720
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		53,474		53,103		53,072		53,484		53,400
Minority interest partnership units		6,203		6,505		6,625		6,848		6,975
Total shares and units outstanding		59,677		59,608		59,697		60,332		60,375
Stock price at period end	$	25.40	$	23.86	$	22.30	$	20.44	$	22.10
Market value of equity	$	1,893,241	$	1,799,692	$	1,708,688	$	1,610,631	$	1,711,733
Total market capitalization with debt	$	3,451,999	$	3,412,175	$	3,287,953	$	3,190,932	$	3,240,453

See pages 32 to 38 for information regarding Highwoods’ Joint Ventures

Highwoods Properties, Inc. Page 8 12/31/03

Long-Term Debt Summary

Dollars in thousands

	12/31/03			09/30/03			06/30/03			03/31/03			12/31/02
Balances Outstanding:
Secured:
Conventional fixed rate	$	755,049		$	631,203		$	653,092		$	656,060		$	515,411
Variable rate debt		68,709			68,780			4,173			4,241			4,309
Secured total	$	823,758		$	699,983		$	657,265		$	660,301		$	519,720
Unsecured:
Fixed rate bonds and notes	$	560,000		$	806,500		$	806,500		$	806,500		$	931,500
Variable rate debt		120,000			20,000			20,000			20,000			20,000
Credit facility		55,000			86,000			95,500			93,500			57,500
Unsecured total	$	735,000		$	912,500		$	922,000		$	920,000		$	1,009,000
Total	$	1,558,758		$	1,612,483		$	1,579,265		$	1,580,301		$	1,528,720
Average Interest Rates:
Secured:
Conventional fixed rate		7.2	%		7.5	%		7.6	%		7.6	%		8.0	%
Variable rate debt		3.1	%		3.2	%		3.6	%		3.7	%		3.9	%
Secured total		6.9	%		7.1	%		7.5	%		7.5	%		7.9	%
Unsecured:
Fixed rate bonds		7.3	%		7.4	%		7.4	%		7.4	%		7.3	%
Variable rate debt		2.5	%		2.1	%		2.5	%		2.6	%		2.8	%
Credit facility		2.2	%		2.3	%		2.1	%		2.3	%		2.8	%
Unsecured total		6.2	%		6.8	%		6.7	%		6.9	%		6.5	%
Average		6.5	%		6.9	%		7.1	%		7.1	%		7.0	%
Capitalized Interest:	$	204		$	276		$	349		$	366		$	(1,325	)

Maturity Schedule:

	Future Maturities of Debt
Year	Secured Debt 1/		Unsecured Debt			Total Debt 1/		Average Interest Rate
2004	$	—	$	—		$	—	—
2005		69,647		120,000			189,647	4.7	%
2006		71,191		165,000	2/		236,191	4.8	%
2007		79,496		—			79,496	7.9	%
2008		—		100,000			100,000	7.1	%
2009		184,898		50,000			234,898	7.9	%
2010		140,498		—			140,498	7.8	%
2011		—		100,000			100,000	7.2	%
2012		—		—			—	—
2013		272,348		—			272,348	5.9	%
Thereafter		5,680		200,000			205,680	7.5	%
Total maturities	$	823,758	$	735,000		$	1,558,758	6.5	%

Weighted average maturity = 7.0 years

1/ Excludes annual principal amortization

2/ Included in the $165.0 million of unsecured debt maturities is $55.0 million related to the credit facility which matures in 2006.

Highwoods Properties, Inc. Page 9 12/31/03

Long-Term Debt Detail

Dollars in thousands

Secured Loans In Excess of $10 Million
Lender	Blended Rate		Maturity Date	Loan Balance 12/31/03		Undepreciated Book Value of Assets Secured
Monumental Life Insurance Company	7.8	%	Nov-09	$	176,726	$	248,777
Northwestern Mutual Life	6.0	%	Feb-13		143,713		185,364
Northwestern Mutual Life	7.8	%	Nov-10		140,498		269,365
Mass Mutual	5.7	%	Dec-13		127,500		183,135
Northwestern Mutual Life	8.2	%	Jan-07		66,896		135,099
GECC	3.1	%	Jan-06		64,676		84,567
Principal Life Insurance Company	8.6	%	Apr-05		42,391		102,706
Principal Life Insurance Company	8.2	%	Jul-05		27,257		68,649
	6.8	%		$	789,657	$	1,277,662
All Other Secured Loans (12)	7.4	%		$	34,101	$	82,767
Total Secured Loans	7.1	%		$	823,758	$	1,360,429
Unsecured Bonds
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	%		$	560,000

1/ Remarket date is 6/15/2004

Highwoods Properties, Inc. Page 10 12/31/03

Portfolio Summary

(Rentable Square Feet)

	12/31/03		09/30/03		06/30/03		03/31/03		12/31/02
Office Industrial & Retail
In-Service:
Office 1/	25,303,000		25,710,000		25,052,000		25,387,000		25,342,000
Industrial	8,092,000		9,934,000		10,243,000		10,243,000		10,242,000
Retail 2/	1,527,000		1,527,000		1,527,000		1,527,000		1,528,000
Total	34,922,000		37,171,000		36,822,000		37,157,000		37,112,000
Development Completed – Not Stabilized:
Office 1/	140,000		140,000		140,000		100,000		231,000
Industrial	—		60,000		60,000		60,000		60,000
Retail	—		—		—		—		—
Total	140,000		200,000		200,000		160,000		291,000
Development – In Process:
Office 1/	112,000		—		—		40,000		40,000
Industrial	350,000		350,000		—		—		—
Retail	—		—		—		—		—
Total	462,000		350,000		—		40,000		40,000
Total:
Office 1/	25,555,000		25,850,000		25,192,000		25,527,000		25,613,000
Industrial	8,442,000		10,344,000		10,303,000		10,303,000		10,302,000
Retail 2/	1,527,000		1,527,000		1,527,000		1,527,000		1,528,000
Total	35,524,000		37,721,000		37,022,000		37,357,000		37,443,000
Same Store
Office 1/	22,034,000		22,034,000		22,034,000		22,034,000		22,034,000
Industrial	7,897,000		7,897,000		7,897,000		7,897,000		7,897,000
Retail	1,505,000		1,505,000		1,505,000		1,505,000		1,505,000
Total	31,436,000		31,436,000		31,436,000		31,436,000		31,436,000
Percent Leased/Pre-Leased:
In-Service:
Office	79.2	%	79.4	%	80.5	%	80.9	%	82.3	% 3/
Industrial	85.7	%	88.0	%	88.7	%	86.8	%	86.2	%
Retail	96.3	%	96.3	%	96.8	%	96.5	%	97.0	%
Total	81.5	%	82.4	%	83.4	%	83.2	%	84.0	% 3/
Development Completed – Not Stabilized:
Office	36.0	%	30.0	%	30.0	%	42.0	%	61.3	%
Industrial	—		50.0	%	50.0	%	50.0	%	50.0	%
Retail	—		—		—		—		—
Total	36.0	%	36.0	%	36.0	%	45.0	%	59.0	%
Development - In Process:
Office	100.0	%	—		—		0.0	%	0.0	%
Industrial	100.0	%	100.0	%	—		—		—
Retail	—		—		—		—		—
Total	100.0	%	100.0	%	—		0.0	%	0.0	%
Same Store
Office	79.7	%	80.1	%	81.3	%	81.9	%	83.3	% 4/
Industrial	86.1	%	85.6	%	86.8	%	85.5	%	84.9	%
Retail	96.3	%	96.3	%	96.7	%	96.6	%	97.1	%
Total	82.1	%	82.2	%	83.4	%	83.5	%	84.3	% 4/

1/ Substantially all of our Office properties are located in suburban markets

2/ Excludes basement space in the Country Club Plaza property of 418,000 square feet.

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. The impact on Office occupancy and Total occupancy was 3.2% and 2.2%, respectively.

4/ 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.

Highwoods Properties, Inc. Page 11 12/31/03

Portfolio Summary

(Continued)

As of December 31, 2003

Summary by Location:

	Rentable Square Feet				Percentage of Annualized Revenue 1/
Market			Occupancy		Office		Industrial		Retail		Total
Research Triangle 2/	4,706,000		80.8	%	15.7	%	0.2	%	—		15.9	%
Atlanta	6,919,000		78.4	%	11.5	%	3.3	%	—		14.8	%
Tampa	4,441,000		63.4	% 3/	13.0	%	—		—		13.0	%
Kansas City	2,433,000	4/	92.7	%	4.1	%	0.0	%	8.6	%	12.7	%
Nashville	2,869,000		91.5	%	11.2	%	—		—		11.2	%
Piedmont Triad 5/	6,688,000		90.0	%	6.4	%	4.0	%	—		10.4	%
Richmond	1,852,000		91.5	%	7.1	%	—		—		7.1	%
Charlotte	1,655,000		79.6	%	4.4	%	0.3	%	—		4.7	%
Memphis	1,216,000		81.0	%	4.6	%	—		—		4.6	%
Greenville	1,318,000		80.2	%	3.7	%	0.1	%	—		3.8	%
Columbia	426,000		57.9	%	0.8	%	—		—		0.8	%
Orlando	299,000		44.9	%	0.6	%	—		—		0.6	%
Other	100,000		64.1	%	0.4	%	—		—		0.4	%
Total	34,922,000		81.5	% 6/	83.5	%	7.9	%	8.6	%	100.0	%

Summary by Location, Including Unconsolidated Joint Venture Properties:

	Rentable Square Feet			Percentage of Annualized Revenue 1/7/
Market		Occupancy		Office		Industrial		Retail		Multi-Family		Total
Research Triangle 2/	5,161,000	82.4	%	14.7	%	0.2	%	—		—		14.9	%
Atlanta	7,569,000	79.1	%	11.5	%	3.0	%	—		—		14.5	%
Tampa	4,646,000	64.7	%	12.1	%	—		—		—		12.1	%
Kansas City	2,857,000	91.9	%	4.1	%	0.0	%	7.8	%	—		11.9	%
Nashville	2,869,000	91.5	%	10.2	%	—		—		—		10.2	%
Piedmont Triad 3/	7,052,000	90.6	%	6.2	%	3.6	%	—		—		9.8	%
Richmond	2,264,000	92.9	%	7.4	%	—		—		—		7.4	%
Charlotte	1,803,000	81.3	%	4.1	%	0.2	%	—		—		4.3	%
Memphis	1,216,000	81.0	%	4.2	%	—		—		—		4.2	%
Des Moines	2,245,000	95.3	%	3.0	%	0.4	%	0.1	%	0.4	%	3.9	%
Greenville	1,318,000	80.3	%	3.4	%	0.1	%	—		—		3.5	%
Orlando	2,063,000	79.7	%	2.1	%	—		—		—		2.1	%
Columbia	426,000	57.8	%	0.8	%	—		—		—		0.8	%
Other	210,000	82.9	%	0.4	%	—		—		—		0.4	%
Total	41,699,000	83.2	%	84.2	%	7.5	%	7.9	%	0.4	%	100.0	%

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

2/ Research Triangle Market = Raleigh, Durham metropolitan area

3/ Tampa’s occupancy would be 77.8% if the 816,000 SF Highwoods Preserve campus where Intermedia(Worldcom) rejected it’s lease was excluded.

4/ Excludes basement space in the Country Club Plaza property of 418,000 square feet

5/ Piedmont Triad Market = Greensboro, Winston-Salem metropolitan area

6/ Total occupancy would be 83.4% if the 816,000 SF Highwoods Preserve campus where Intermedia(Worldcom) rejected it’s lease was excluded.

7/ Includes Highwoods’ share of Joint Venture Annualized Rental Revenue, see page 36

Highwoods Properties, Inc. Page 12 12/31/03

Portfolio Summary

(Continued)

As of December 31, 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	4,605,000	80.7	%	18.9	%	101,000	86	%	2.5	%
Tampa	4,441,000	63.4	%	15.6	%	—	—		—
Atlanta	3,568,000	78.6	%	13.8	%	3,351,000	78	%	41.7	%
Nashville	2,869,000	91.5	%	13.4	%	—	—		—
Richmond	1,852,000	91.5	%	8.5	%	—	—		—
Piedmont Triad	2,318,000	84.7	%	7.6	%	4,370,000	93	%	50.4	%
Memphis	1,216,000	81.0	%	5.5	%	—	—		—
Charlotte	1,492,000	80.5	%	5.3	%	163,000	72	%	3.4	%
Kansas City	902,000	86.6	%	4.9	%	4,000	100	%	0.1	%
Greenville	1,215,000	82.6	%	4.4	%	103,000	52	%	1.9	%
Columbia	426,000	57.9	%	1.0	%	—	—		—
Orlando	299,000	44.9	%	0.7	%	—	—		—
Other	100,000	64.1	%	0.4	%	—	—		—
	25,303,000	79.2	%	100.0	%	8,092,000	85.7	%	100.0	%
	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Revenue 1/
Kansas City 2/	1,527,000	96.3	%	100.0	%
	1,527,000	96.3	%	100.0	%

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

2/ Excludes basement space in the Country Club Plaza property of 418,000 square feet.

Highwoods Properties, Inc. Page 13 12/31/03

Occupancy Trends - Office, Industrial and Retail Properties

Market	Measurement	12/31/2003		09/30/03		06/30/03		03/31/03		12/31/02
Atlanta	Rentable Square Feet	6,919,000		6,860,000		6,729,000		6,729,000		6,728,000
	Occupancy	78.4	%	80.7	%	82.5	%	82.0	%	83.0	%
	Current Properties 4/	78.4	%	80.3	%	82.1	%	81.4	%	81.5	%
Charlotte	Rentable Square Feet	1,655,000		1,727,000		1,729,000		1,729,000		1,729,000
	Occupancy	79.6	%	79.5	%	79.8	%	79.1	%	84.0	%
	Current Properties 4/	79.6	%	78.5	%	78.9	%	78.2	%	83.3	%
Columbia	Rentable Square Feet	426,000		426,000		426,000		426,000		426,000
	Occupancy	57.9	%	57.2	%	60.2	%	60.2	%	67.4	%
	Current Properties 4/	57.9	%	57.2	%	60.2	%	60.2	%	67.4	%
Greenville	Rentable Square Feet	1,318,000		1,318,000		1,511,000		1,511,000		1,511,000
	Occupancy	80.2	%	81.5	%	84.0	%	85.8	%	86.8	%
	Current Properties 4/	80.2	%	81.5	%	81.7	%	83.8	%	84.9	%
Kansas City 1/	Rentable Square Feet	2,433,000		2,512,000		2,511,000		2,511,000		2,512,000
	Occupancy	92.7	%	92.1	%	93.1	%	93.3	%	94.5	%
	Current Properties 4/	92.7	%	92.7	%	93.6	%	93.9	%	95.0	%
Memphis	Rentable Square Feet	1,216,000		1,216,000		1,216,000		1,216,000		1,215,000
	Occupancy	81.0	%	79.8	%	80.5	%	81.5	%	80.8	%
	Current Properties 4/	81.0	%	79.8	%	80.5	%	81.5	%	80.8	%
Nashville	Rentable Square Feet	2,869,000		2,865,000		2,865,000		2,864,000		2,733,000
	Occupancy	91.5	%	88.7	%	87.0	%	86.0	%	87.7	%
	Current Properties 4/	91.5	%	88.7	%	87.0	%	86.0	%	84.3	%
Orlando	Rentable Square Feet	299,000		299,000		340,000		340,000		340,000
	Occupancy	44.9	%	46.9	%	48.8	%	48.8	%	47.6	%
	Current Properties 4/	44.9	%	46.9	%	46.9	%	46.9	%	46.9	%
Piedmont Triad	Rentable Square Feet	6,688,000		8,208,000		8,368,000		8,371,000		8,371,000
	Occupancy	90.0	%	90.6	%	90.0	%	89.4	%	88.9	%
	Current Properties 4/	90.0	%	88.9	%	88.9	%	88.3	%	87.9	%
Research Triangle	Rentable Square Feet	4,706,000		4,706,000		4,032,000		4,188,000		4,340,000
	Occupancy	80.8	%	79.7	%	81.2	%	80.3	%	81.9	%
	Current Properties 4/	80.8	%	79.7	%	80.5	%	79.7	%	82.1	%
Richmond	Rentable Square Feet	1,852,000		2,526,000		2,825,000		2,829,000		2,764,000
	Occupancy	91.5	%	92.8	%	93.9	%	94.6	%	95.0	%
	Current Properties 4/	91.5	%	90.4	%	91.3	%	92.4	%	89.1	%
Tampa	Rentable Square Feet	4,441,000		4,408,000		4,170,000		4,262,000		4,262,000
	Occupancy	63.4	%	64.2	%	66.4	%	66.5	%	67.1	% 2/
	Current Properties 4/	63.4	%	64.3	%	67.0	%	66.6	%	67.0	%
Total 3/	Rentable Square Feet	34,822,000		37,071,000		36,722,000		36,976,000		36,931,000
	Occupancy	81.5	%	82.4	%	83.4	%	83.2	%	84.0	% 2/
	Current Properties 4/	81.5	%	81.2	%	82.1	%	81.8	%	82.2	%

1/ Excludes basement space in the Country Club Plaza property of 418,000 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 foot building located in South Florida.

4/ Only properties that were owned and in-service on December 31, 2003 are included for each quarter shown.

Highwoods Properties, Inc. Page 14 12/31/03

Leasing Statistics

Office Portfolio

	Three Months Ended
	12/31/03			09/30/03			06/30/03			03/31/03			12/31/02			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		179			225			216			166			194			196
Rentable square footage leased		962,636			1,074,270			1,097,633			1,081,692			1,035,837			1,050,414
Square footage of Renewal Deals		614,969			629,353			891,772			822,005			748,258			741,271
Renewed square footage (% of total)		63.9	%		58.6	%		81.2	%		76.0	%		72.2	%		70.6	%
New Leases square footage (% of total)		36.1	%		41.4	%		18.8	%		24.0	%		27.8	%		29.4	%
Average per rentable square foot over the lease term:
Base rent	$	16.12		$	17.34		$	16.93		$	16.08		$	17.38		$	16.77
Tenant improvements		(1.09	)		(1.54	)		(1.33	)		(0.85	)		(1.58	)		(1.28	)
Leasing commissions 1/		(0.64	)		(0.55	)		(0.59	)		(0.54	)		(0.65	)		(0.59	)
Rent concessions		(0.35	)		(0.24	)		(0.16	)		(0.14	)		(0.43	)		(0.26	)
Effective rent		14.04			15.01			14.85			14.55			14.72			14.64
Expense stop		(5.35	)		(5.45	)		(4.69	)		(4.76	)		(5.08	)		(5.07	)
Equivalent effective net rent	$	8.69		$	9.56		$	10.16		$	9.79		$	9.64		$	9.57
Average term in years		4.1			5.5			3.8			3.5			4.2			4.2
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	5,355,637		$	9,120,612		$	7,125,673		$	4,474,184		$	8,004,279		$	6,816,077
Rentable square feet		962,636			1,074,270			1,097,633			1,081,692			1,035,837			1,050,414
Per rentable square foot	$	5.56		$	8.49		$	6.49		$	4.14		$	7.73		$	6.49
Leasing Commissions:
Total dollars committed under signed leases	$	2,102,659		$	2,175,162		$	1,803,423		$	1,658,231		$	2,255,691		$	1,999,033
Rentable square feet		962,636			1,074,270			1,097,633			1,081,692			1,035,837			1,050,414
Per rentable square foot	$	2.18		$	2.02		$	1.64		$	1.53		$	2.18		$	1.90
Total:
Total dollars committed under signed leases	$	7,458,296		$	11,295,774		$	8,929,097		$	6,132,415		$	10,259,970		$	8,815,110
Rentable square feet		962,636			1,074,270			1,097,633			1,081,692			1,035,837			1,050,414
Per rentable square foot	$	7.75		$	10.51		$	8.13		$	5.67		$	9.91		$	8.39

1/ Excludes a full allocation of internal marketing costs

Highwoods Properties, Inc. Page 15 12/31/03

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	12/31/03			09/30/03			06/30/03			03/31/03			12/31/02			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		36			22			41			35			45			36
Rentable square footage leased		1,131,281			638,376			540,891			857,482			530,945			739,795
Square footage of Renewal Deals		968,879			555,933			403,716			639,683			301,435			573,929
Renewed square footage (% of total)		85.6	%		87.1	%		74.6	%		74.6	%		56.8	%		77.6	%
New Leases square footage (% of total)		14.4	%		12.9	%		25.4	%		25.4	%		43.2	%		22.4	%
Average per rentable square foot over the lease term:
Base rent	$	3.79		$	3.52		$	4.46		$	3.70		$	4.45		$	3.98
Tenant improvements		(0.08	)		(0.20	)		(0.28	)		(0.32	)		(0.51	)		(0.28	)
Leasing commissions 1/		(0.08	)		(0.08	)		(0.12	)		(0.11	)		(0.12	)		(0.10	)
Rent concessions		(0.05	)		(0.06	)		(0.07	)		(0.01	)		(0.09	)		(0.06	)
Effective rent		3.58			3.18			3.99			3.26			3.73			3.54
Expense stop		(0.20	)		(0.09	)		(0.49	)		(0.25	)		(0.32	)		(0.27	)
Equivalent effective net rent	$	3.38		$	3.09		$	3.50		$	3.01		$	3.41		$	3.27
Average term in years		3.2			4.5			3.5			2.6			3.8			3.5
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	517,025		$	675,982		$	701,259		$	791,737		$	1,172,142		$	771,629
Rentable square feet		1,131,281			638,376			540,891			857,482			530,945			739,795
Per rentable square foot	$	0.46		$	1.06		$	1.30		$	0.92		$	2.21		$	1.04
Leasing Commissions:
Total dollars committed under signed leases	$	338,143		$	242,605		$	298,582		$	178,385		$	199,076		$	251,358
Rentable square feet		1,131,281			638,376			540,891			857,482			530,945			739,795
Per rentable square foot	$	0.30		$	0.38		$	0.55		$	0.21		$	0.37		$	0.34
Total:
Total dollars committed under signed leases	$	855,168		$	918,587		$	999,841		$	970,122		$	1,371,218		$	1,022,987
Rentable square feet		1,131,281			638,376			540,891			857,482			530,945			739,795
Per rentable square foot	$	0.76		$	1.44		$	1.85		$	1.13		$	2.58		$	1.38

1/ Excludes a full allocation of internal marketing costs

Highwoods Properties, Inc. Page 16 12/31/03

Leasing Statistics

Retail Portfolio

	Three Months Ended
	12/31/03			09/30/03			06/30/03			03/31/03			12/31/02			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		9			6			9			10			18			10
Rentable square footage leased		75,947			12,920			25,772			22,774			36,085			34,700
Square footage of Renewal Deals		53,541			—			8,631			7,814			19,295			17,856
Renewed square footage (% of total)		70.5	%		—			33.5	%		34.3	%		53.5	%		51.5	%
New Leases square footage (% of total)		29.5	%		100.0	%		66.5	%		65.7	%		46.5	%		48.5	%
Average per rentable square foot over the lease term:
Base rent	$	12.30		$	17.25		$	26.51		$	23.03		$	19.19		$	19.66
Tenant improvements		(0.31	)		(2.51	)		(0.86	)		(1.54	)		(1.22	)		(1.29	)
Leasing commissions 1/		(0.14	)		(1.28	)		(0.70	)		(1.09	)		(0.82	)		(0.81	)
Rent concessions		0.00			0.00			0.00			0.00			(0.01	)		0.00
Effective rent		11.85			13.46			24.95			20.40			17.14			17.56
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00
Equivalent effective net rent	$	11.85		$	13.46		$	24.95		$	20.40		$	17.14		$	17.56
Average term in years		6.8			4.8			9.9			6.9			6.0			6.9
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	239,110		$	158,000		$	195,055		$	513,000		$	351,023		$	291,238
Rentable square feet		75,947			12,920			25,772			22,774			36,085			34,700
Per rentable square foot	$	3.15		$	12.23		$	7.57		$	22.53		$	9.73		$	8.39
Leasing Commissions:
Total dollars committed under signed leases	$	17,212		$	36,392		$	100,464		$	109,066		$	127,964		$	78,220
Rentable square feet		75,947			12,920			25,772			22,774			36,085			34,700
Per rentable square foot	$	0.23		$	2.82		$	3.90		$	4.79		$	3.55		$	2.25
Total:
Total dollars committed under signed leases	$	256,322		$	194,392		$	295,519		$	622,066		$	478,987		$	369,457
Rentable square feet		75,947			12,920			25,772			22,774			36,085			34,700
Per rentable square foot	$	3.38		$	15.05		$	11.47		$	27.31		$	13.27		$	10.65

1/ Excludes a full allocation of internal marketing costs

Highwoods Properties, Inc. Page 17 12/31/03

Leasing Statistics by Market

For the Three Months ended December 31, 2003

Office Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 1/
Research Triangle	167,062	3.6	$	16.54	$	9.30	$	1.87
Piedmont Triad	161,332	3.3		8.52		1.18		0.64
Tampa	150,292	5.0		17.78		7.66		2.73
Atlanta	148,482	2.6		14.83		1.21		1.04
Nashville	112,293	5.1		16.76		7.20		2.30
Memphis	58,787	6.6		20.57		8.24		2.00
Kansas City	57,494	5.2		22.31		3.78		6.09
Charlotte	54,463	3.8		14.17		9.43		2.12
Richmond	39,179	3.6		16.95		5.66		1.31
Columbia	5,772	4.0		16.35		6.07		1.61
Orlando	4,432	4.3		25.99		0.00		0.00
Greenville	3,048	3.7		17.18		0.00		1.91
	962,636	4.1	$	15.77	$	5.56	$	1.96

Industrial Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 1/
Piedmont Triad	988,760	2.9	$	3.42	$	0.16	$	0.15
Atlanta	104,389	6.5		4.87		3.26		1.37
Research Triangle	19,877	1.4		8.03		0.33		0.00
Charlotte	12,455	2.0		7.77		1.15		0.18
Greenville	5,800	0.5		12.00		0.00		0.24
	1,131,281	3.2	$	3.74	$	0.46	$	0.26

Retail Portfolio

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 1/
Kansas City	75,947	6.8	$	12.30	$	3.15	$	0.23
	75,947	6.8	$	12.30	$	3.15	$	0.23

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

Highwoods Properties, Inc. Page 18 12/31/03

Rental Rate Comparisons by Market

For the Three Months ended December 31, 2003

Office Portfolio

Market	Rentable Square Feet Leased	GAAP Rent		Previous GAAP Rent		Percentage Change GAAP Rent
Research Triangle	167,062	$	16.54	$	19.07	-13.3	%
Piedmont Triad	161,332		8.52		8.18	4.2	%
Tampa	150,292		17.78		19.03	-6.6	%
Atlanta	148,482		14.83		16.25	-8.7	%
Nashville	112,293		16.76		18.52	-9.5	%
Memphis	58,787		20.57		18.89	8.9	%
Kansas City	57,494		22.31		21.03	6.1	%
Charlotte	54,463		14.17		16.18	-12.4	%
Richmond	39,179		16.95		17.34	-2.2	%
Columbia	5,772		16.35		17.15	-4.7	%
Orlando	4,432		25.99		15.25	70.4	%
Greenville	3,048		17.18		16.05	7.1	%
	962,636	$	15.77	$	16.60	-5.0	%

Industrial Portfolio

Market	Rentable Square Feet Leased	GAAP Rent		Previous GAAP Rent		Percentage Change GAAP Rent
Piedmont Triad	988,760	$	3.42	$	3.34	2.4	%
Atlanta	104,389		4.87		5.21	-6.5	%
Research Triangle	19,877		8.03		7.80	3.0	%
Charlotte	12,455		7.77		9.04	-14.1	%
Greenville	5,800		12.00		9.30	29.0	%
	1,131,281	$	3.74	$	3.68	1.7	%

Retail Portfolio

Market	Rentable Square Feet Leased	GAAP Rent		Previous GAAP Rent		Percentage Change GAAP Rent
Kansas City	75,947	$	12.30	$	9.95	23.7	%
	75,947	$	12.30	$	9.95	23.7	%

Highwoods Properties, Inc. Page 19 12/31/03

Lease Expirations

December 31, 2003

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Office:
2004 2/	2,803,876	14.0	%	$	51,010	$	18.19	14.6	%
2005	3,538,106	17.6	%		63,790		18.03	18.1	%
2006	3,095,699	15.4	%		56,911		18.38	16.3	%
2007	1,779,659	8.9	%		29,637		16.65	8.5	%
2008	3,117,531	15.5	%		48,556		15.58	13.9	%
2009	1,802,308	9.0	%		28,596		15.87	8.2	%
2010	1,243,677	6.2	%		24,500		19.70	7.0	%
2011	1,092,047	5.4	%		20,816		19.06	5.9	%
2012	522,042	2.6	%		10,738		20.57	3.1	%
2013	548,879	2.7	%		9,266		16.88	2.6	%
2014 and thereafter	543,880	2.7	%		6,191		11.38	1.8	%
	20,087,704	100.0	%	$	350,011	$	17.42	100.0	%
Industrial:
2004 3/	1,652,551	23.8	%	$	7,970	$	4.82	24.2	%
2005	1,289,760	18.6	%		5,926		4.59	18.0	%
2006	887,007	12.8	%		4,447		5.01	13.5	%
2007	1,677,694	24.2	%		7,283		4.34	22.2	%
2008	384,012	5.5	%		1,862		4.85	5.7	%
2009	380,349	5.5	%		2,408		6.33	7.3	%
2010	104,570	1.5	%		432		4.13	1.3	%
2011	66,342	1.0	%		356		5.37	1.1	%
2012	44,447	0.6	%		261		5.87	0.8	%
2013	102,384	1.5	%		612		5.98	1.9	%
2014 and thereafter	348,394	5.0	%		1,301		3.73	4.0	%
	6,937,510	100.0	%	$	32,858	$	4.74	100.0	%

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

2/ Includes 96,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

3/ Includes 165,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue

Note: 2004 and beyond expirations that have been renewed are reflected above based on the renewal’s expiration date.

Highwoods Properties, Inc. Page 20 12/31/03

Lease Expirations

December 31, 2003

(Continued)

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Retail:
2004 2/	201,846	13.7	%	$	2,697	$	13.36	7.5	%
2005	152,280	10.4	%		2,929		19.23	8.2	%
2006	91,821	6.3	%		2,239		24.38	6.2	%
2007	92,813	6.3	%		2,390		25.75	6.7	%
2008	144,700	9.9	%		4,585		31.69	12.8	%
2009	169,809	11.6	%		4,881		28.74	13.6	%
2010	85,386	5.8	%		2,343		27.44	6.5	%
2011	57,783	3.9	%		1,869		32.35	5.2	%
2012	97,132	6.6	%		2,233		22.99	6.2	%
2013	132,377	9.0	%		3,355		25.34	9.3	%
2014 and thereafter	242,083	16.5	%		6,372		26.32	17.8	%
	1,468,030	100.0	%	$	35,893	$	24.45	100.0	%
Total:
2004 3/	4,658,273	16.3	%		61,677		13.24	14.7	%
2005	4,980,146	17.4	%		72,645		14.59	17.3	%
2006	4,074,527	14.3	%		63,597		15.61	15.2	%
2007	3,550,166	12.5	%		39,310		11.07	9.4	%
2008	3,646,243	12.8	%		55,003		15.08	13.1	%
2009	2,352,466	8.3	%		35,885		15.25	8.6	%
2010	1,433,633	5.0	%		27,275		19.03	6.5	%
2011	1,216,172	4.3	%		23,041		18.95	5.5	%
2012	663,621	2.3	%		13,232		19.94	3.2	%
2013	783,640	2.8	%		13,233		16.89	3.2	%
2014 and thereafter	1,134,357	4.0	%		13,864		12.22	3.3	%
	28,493,244	100.0	%	$	418,762	$	14.70	100.0	%

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

2/ Includes 34,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

3/ Includes 295,000 square feet of leases that are on a month to month basis or 0.7% of total annualized revenue

Note: 2004 and beyond expirations that have been renewed are reflected above based on the renewal's expiration date.

Highwoods Properties, Inc. Page 21 12/31/03

Office Lease Expirations by Market by Quarter

Dollars in thousands

			Three Months Ended
			3/31/04 1/			06/30/04			09/30/04			12/31/04			Total
Atlanta	RSF			94,338			60,882			196,423			48,420			400,063
	% of Total Office RSF			0.5	%		0.3	%		1.0	%		0.2	%		2.0	%
	Annualized Revenue	2/	$	1,458		$	1,204		$	3,158		$	671		$	6,491
	% of Total Office Annl Rev			0.4	%		0.3	%		0.9	%		0.2	%		1.9	%
Charlotte	RSF			31,686			121,954			52,788			33,564			239,992
	% of Total Office RSF			0.2	%		0.6	%		0.3	%		0.2	%		1.2	%
	Annualized Revenue	2/	$	542		$	2,135		$	851		$	587		$	4,115
	% of Total Office Annl Rev			0.2	%		0.6	%		0.2	%		0.2	%		1.2	%
Columbia	RSF			8,615			3,611			21,973			0			34,199
	% of Total Office RSF			0.0	%		0.0	%		0.1	%		0.0	%		0.2	%
	Annualized Revenue	2/	$	152		$	69		$	400		$	—		$	621
	% of Total Office Annl Rev			0.0	%		0.0	%		0.1	%		0.0	%		0.2	%
Greenville	RSF			3,588			12,334			6,071			1,065			23,058
	% of Total Office RSF			0.0	%		0.1	%		0.0	%		0.0	%		0.1	%
	Annualized Revenue	2/	$	60		$	221		$	103		$	18		$	402
	% of Total Office Annl Rev			0.0	%		0.1	%		0.0	%		0.0	%		0.1	%
Kansas City	RSF			51,827			7,812			28,972			17,448			106,059
	% of Total Office RSF			0.3	%		0.0	%		0.1	%		0.1	%		0.5	%
	Annualized Revenue	2/	$	1,038		$	160		$	528		$	333		$	2,059
	% of Total Office Annl Rev			0.3	%		0.0	%		0.2	%		0.1	%		0.6	%
Memphis	RSF			28,463			7,651			57,449			30,365			123,928
	% of Total Office RSF			0.1	%		0.0	%		0.3	%		0.2	%		0.6	%
	Annualized Revenue	2/	$	451		$	153		$	1,096		$	594		$	2,294
	% of Total Office Annl Rev			0.1	%		0.0	%		0.3	%		0.2	%		0.7	%
Nashville	RSF			116,517			50,311			49,843			53,181			269,852
	% of Total Office RSF			0.6	%		0.3	%		0.2	%		0.3	%		1.3	%
	Annualized Revenue	2/	$	2,504		$	1,103		$	988		$	1,063		$	5,658
	% of Total Office Annl Rev			0.7	%		0.3	%		0.3	%		0.3	%		1.6	%
Orlando	RSF			15,158			12,502			0			10,447			38,107
	% of Total Office RSF			0.1	%		0.1	%		0.0	%		0.1	%		0.2	%
	Annualized Revenue	2/	$	197		$	230		$	—		$	188		$	615
	% of Total Office Annl Rev			0.1	%		0.1	%		0.0	%		0.1	%		0.2	%
Piedmont Triad	RSF			103,171			29,614			39,723			10,565			183,073
	% of Total Office RSF			0.5	%		0.1	%		0.2	%		0.1	%		0.9	%
	Annualized Revenue	2/	$	1,165		$	479		$	663		$	179		$	2,486
	% of Total Office Annl Rev			0.3	%		0.1	%		0.2	%		0.1	%		0.7	%
Research Triangle	RSF			113,421			141,588			123,041			134,602			512,652
	% of Total Office RSF			0.5	%		0.7	%		0.6	%		0.7	%		2.5	%
	Annualized Revenue	2/	$	2,131		$	2,635		$	2,354		$	2,633		$	9,753
	% of Total Office Annl Rev			0.6	%		0.8	%		0.7	%		0.8	%		2.8	%
Richmond	RSF			89,007			102,817			30,904			21,339			244,067
	% of Total Office RSF			0.4	%		0.5	%		0.2	%		0.1	%		1.2	%
	Annualized Revenue	2/	$	1,668		$	1,939		$	526		$	374		$	4,507
	% of Total Office Annl Rev			0.5	%		0.6	%		0.2	%		0.1	%		1.3	%
Tampa	RSF			95,559			196,774			134,795			193,652			620,780
	% of Total Office RSF			0.5	%		1.0	%		0.7	%		1.0	%		3.1	%
	Annualized Revenue	2/	$	1,819		$	3,404		$	3,112		$	3,483		$	11,818
	% of Total Office Annl Rev			0.5	%		1.0	%		0.9	%		1.0	%		3.4	%
Other	RSF			8,046			0			0			0			8,046
	% of Total Office RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue	2/	$	192		$	—		$	—		$	—		$	192
	% of Total Office Annl Rev			0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Total	RSF			759,396			747,850			741,982			554,648			2,803,876
	% of Total Office RSF			3.7	%		3.7	%		3.7	%		2.8	%		13.9	%
	Annualized Revenue	2/	$	13,377		$	13,732		$	13,779		$	10,123		$	51,011
	% of Total Office Annl Rev			3.8	%		3.9	%		3.9	%		2.9	%		14.6	%

1/ Includes 96,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

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

Highwoods Properties, Inc. Page 22 12/31/03

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

			Three Months Ended
			3/31/04 1/			06/30/04			09/30/04			12/31/04			Total
Atlanta	RSF			73,679			165,277			251,087			88,037			578,080
	% of Total Industrial RSF			1.1	%		2.4	%		3.6	%		1.3	%		8.3	%
	Annualized Revenue	2/	$	400		$	923		$	1,246		$	451		$	3,020
	% of Total Industrial Annl Rev			1.3	%		2.8	%		3.8	%		1.4	%		9.2	%
Charlotte	RSF			15,522			12,958			4,881			5,288			38,649
	% of Total Industrial RSF			0.2	%		0.2	%		0.1	%		0.1	%		0.6	%
	Annualized Revenue	2/	$	173		$	140		$	58		$	44		$	415
	% of Total Industrial Annl Rev			0.5	%		0.4	%		0.2	%		0.1	%		1.3	%
Greenville	RSF			0			5,800			26,859			0			32,659
	% of Total Industrial RSF			0.0	%		0.1	%		0.4	%		0.0	%		0.5	%
	Annualized Revenue	2/	$	—		$	70		$	291		$	—		$	361
	% of Total Industrial Annl Rev			0.0	%		0.2	%		0.9	%		0.0	%		1.1	%
Kansas City	RSF			3,774			0			0			0			3,774
	% of Total Industrial RSF			0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Revenue	2/	$	20		$	—		$	—		$	—		$	20
	% of Total Industrial Annl Rev			0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Piedmont Triad	RSF			421,308			37,839			176,201			340,008			975,356
	% of Total Industrial RSF			6.1	%		0.5	%		2.5	%		4.9	%		14.1	%
	Annualized Revenue	2/	$	1,525		$	301		$	785		$	1,311		$	3,922
	% of Total Industrial Annl Rev			4.6	%		0.9	%		2.4	%		4.0	%		11.9	%
Research Triangle	RSF			7,747			0			6,128			10,158			24,033
	% of Total Industrial RSF			0.1	%		0.0	%		0.1	%		0.1	%		0.3	%
	Annualized Revenue	2/	$	82		$	—		$	51		$	101		$	234
	% of Total Industrial Annl Rev			0.2	%		0.0	%		0.2	%		0.3	%		0.7	%
Total	RSF			522,030			221,874			465,156			443,491			1,652,551
	% of Total Industrial RSF			7.5	%		3.2	%		6.7	%		6.4	%		23.8	%
	Annualized Revenue	2/	$	2,200		$	1,434		$	2,431		$	1,907		$	7,972
	% of Total Industrial Annl Rev			6.7	%		4.4	%		7.4	%		5.8	%		24.3	%

1/ Includes 165,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue

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

Highwoods Properties, Inc. Page 23 12/31/03

Office Lease Expirations by Market by Year

Dollars in thousands

			2004 1/			2005			2006			2007			Thereafter
Atlanta	RSF			400,063			446,404			264,720			161,073			1,534,177
	% of Total Office RSF			2.0	%		2.2	%		1.3	%		0.8	%		7.6	%
	Annualized Revenue	2/	$	6,491		$	7,254		$	4,036		$	2,346		$	28,081
	% of Total Office Annl Rev			1.9	%		2.1	%		1.2	%		0.7	%		8.0	%
Charlotte	RSF			239,992			309,523			175,911			111,865			363,493
	% of Total Office RSF			1.2	%		1.5	%		0.9	%		0.6	%		1.8	%
	Annualized Revenue	2/	$	4,115		$	5,434		$	2,706		$	1,671		$	4,642
	% of Total Office Annl Rev			1.2	%		1.6	%		0.8	%		0.5	%		1.3	%
Columbia	RSF			34,199			45,532			42,389			48,842			75,255
	% of Total Office RSF			0.2	%		0.2	%		0.2	%		0.2	%		0.4	%
	Annualized Revenue	2/	$	620		$	852		$	659		$	204		$	1,174
	% of Total Office Annl Rev			0.2	%		0.2	%		0.2	%		0.1	%		0.3	%
Greenville	RSF			23,058			333,705			238,253			98,387			310,211
	% of Total Office RSF			0.1	%		1.7	%		1.2	%		0.5	%		1.5	%
	Annualized Revenue	2/	$	403		$	4,105		$	4,330		$	1,462		$	5,244
	% of Total Office Annl Rev			0.1	%		1.2	%		1.2	%		0.4	%		1.5	%
Kansas City	RSF			106,059			144,752			150,585			70,400			309,053
	% of Total Office RSF			0.5	%		0.7	%		0.7	%		0.4	%		1.5	%
	Annualized Revenue	2/	$	2,061		$	3,000		$	3,283		$	1,490		$	7,447
	% of Total Office Annl Rev			0.6	%		0.9	%		0.9	%		0.4	%		2.1	%
Memphis	RSF			123,928			225,300			118,453			92,198			425,193
	% of Total Office RSF			0.6	%		1.1	%		0.6	%		0.5	%		2.1	%
	Annualized Revenue	2/	$	2,294		$	4,578		$	2,646		$	1,714		$	8,142
	% of Total Office Annl Rev			0.7	%		1.3	%		0.8	%		0.5	%		2.3	%
Nashville	RSF			269,852			468,598			461,040			188,915			1,235,794
	% of Total Office RSF			1.3	%		2.3	%		2.3	%		0.9	%		6.2	%
	Annualized Revenue	2/	$	5,657		$	9,281		$	9,128		$	3,639		$	19,261
	% of Total Office Annl Rev			1.6	%		2.7	%		2.6	%		1.0	%		5.5	%
Orlando	RSF			38,107			0			1,024			4,694			90,443
	% of Total Office RSF			0.2	%		0.0	%		0.0	%		0.0	%		0.5	%
	Annualized Revenue	2/	$	614		$	—		$	15		$	82		$	1,653
	% of Total Office Annl Rev			0.2	%		0.0	%		0.0	%		0.0	%		0.5	%
Piedmont Triad	RSF			183,073			298,811			165,675			261,041			1,055,576
	% of Total Office RSF			0.9	%		1.5	%		0.8	%		1.3	%		5.3	%
	Annualized Revenue	2/	$	2,486		$	4,883		$	2,816		$	3,097		$	13,491
	% of Total Office Annl Rev			0.7	%		1.4	%		0.8	%		0.9	%		3.9	%
Research Triangle	RSF			512,652			612,017			836,425			310,341			1,495,528
	% of Total Office RSF			2.6	%		3.0	%		4.2	%		1.5	%		7.4	%
	Annualized Revenue	2/	$	9,751		$	11,613		$	14,753		$	6,185		$	23,362
	% of Total Office Annl Rev			2.8	%		3.3	%		4.2	%		1.8	%		6.7	%
Richmond	RSF			244,067			344,208			251,458			248,287			607,025
	% of Total Office RSF			1.2	%		1.7	%		1.3	%		1.2	%		3.0	%
	Annualized Revenue	2/	$	4,507		$	6,157		$	4,826		$	3,997		$	10,324
	% of Total Office Annl Rev			1.3	%		1.8	%		1.4	%		1.1	%		2.9	%
Tampa	RSF			620,780			288,775			376,385			176,571			1,353,599
	% of Total Office RSF			3.1	%		1.4	%		1.9	%		0.9	%		6.7	%
	Annualized Revenue	2/	$	11,817		$	6,209		$	7,407		$	3,581		$	25,448
	% of Total Office Annl Rev			3.4	%		1.8	%		2.1	%		1.0	%		7.3	%
Other	RSF			8,046			20,481			13,381			7,045			15,017
	% of Total Office RSF			0.0	%		0.1	%		0.1	%		0.0	%		0.1	%
	Annualized Revenue	2/	$	192		$	423		$	306		$	167		$	396
	% of Total Office Annl Rev			0.1	%		0.1	%		0.1	%		0.0	%		0.1	%
Total	RSF			2,803,876			3,538,106			3,095,699			1,779,659			8,870,364
	% of Total Office RSF			14.0	%		17.6	%		15.4	%		8.9	%		44.2	%
	Annualized Revenue	2/	$	51,008		$	63,789		$	56,911		$	29,635		$	148,665
	% of Total Office Annl Rev			14.6	%		18.2	%		16.3	%		8.5	%		42.5	%

1/ Includes 96,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

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

Highwoods Properties, Inc. Page 24 12/31/03

Industrial Lease Expirations by Market by Year

Dollars in thousands

			2004 1/			2005			2006			2007			Thereafter
Atlanta	RSF			578,080			538,691			301,269			567,097			632,730
	% of Total Industrial RSF			8.3	%		7.8	%		4.3	%		8.2	%		9.1	%
	Annualized Revenue	2/	$	3,019		$	2,805		$	1,844		$	2,866		$	3,155
	% of Total Industrial Annl Rev			9.2	%		8.5	%		5.6	%		8.7	%		9.6	%
Charlotte	RSF			38,649			20,815			35,906			19,181			2,340
	% of Total Industrial RSF			0.6	%		0.3	%		0.5	%		0.3	%		0.0	%
	Annualized Revenue	2/	$	415		$	215		$	293		$	180		$	19
	% of Total Industrial Annl Rev			1.3	%		0.7	%		0.9	%		0.5	%		0.1	%
Greenville	RSF			32,659			0			16,081			0			5,350
	% of Total Industrial RSF			0.5	%		0.0	%		0.2	%		0.0	%		0.1	%
	Annualized Revenue	2/	$	360		$	—		$	195		$	—		$	56
	% of Total Industrial Annl Rev			1.1	%		0.0	%		0.6	%		0.0	%		0.2	%
Kansas City	RSF			3,774			0			0			0			0
	% of Total Industrial RSF			0.1	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue	2/	$	20		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Rev			0.1	%		0.0	%		0.0	%		0.0	%		0.0	%
Piedmont Triad	RSF			975,356			694,793			529,072			1,091,416			767,751
	% of Total Industrial RSF			14.1	%		10.0	%		7.6	%		15.7	%		11.1	%
	Annualized Revenue	2/	$	3,922		$	2,601		$	2,068		$	4,237		$	3,779
	% of Total Industrial Annl Rev			11.9	%		7.9	%		6.3	%		12.9	%		11.5	%
Research Triangle	RSF			24,033			35,461			4,679			0			22,327
	% of Total Industrial RSF			0.3	%		0.5	%		0.1	%		0.0	%		0.3	%
	Annualized Revenue	2/	$	233		$	304		$	46		$	—		$	225
	% of Total Industrial Annl Rev			0.7	%		0.9	%		0.1	%		0.0	%		0.7	%
Total	RSF			1,652,551			1,289,760			887,007			1,677,694			1,430,498
	% of Total Industrial RSF			23.8	%		18.6	%		12.8	%		24.2	%		20.6	%
	Annualized Revenue	2/	$	7,969		$	5,925		$	4,446		$	7,283		$	7,234
	% of Total Industrial Annl Rev			24.3	%		18.0	%		13.5	%		22.2	%		22.0	%

1/ Includes 165,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue

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

Highwoods Properties, Inc. Page 25 12/31/03

Customer Diversification

December 31, 2003

Dollars in thousands

Top 20 Customers

Customer	RSF	Annualized Revenue 1/		Percent of Annualized Revenue 1/		Average Remaining Lease Term in Years
Federal Government	639,883	$	13,971	3.34	%	6.6
AT&T	612,092		11,493	2.74	%	3.6
Price Waterhouse Coopers	297,795		6,957	1.66	%	6.3
State Of Georgia	359,565		6,858	1.64	%	5.4
Sara Lee	1,198,534		4,697	1.12	%	3.6
IBM	194,934		4,097	0.98	%	1.9
Northern Telecom	246,000		3,651	0.87	%	4.2
Volvo	267,717		3,431	0.82	%	5.5
Lockton Companies	132,718		3,294	0.79	%	11.2
US Airways	295,046		3,217	0.77	%	4.0
BB&T	241,075		3,186	0.76	%	7.2
ITC Deltacom	147,379		2,947	0.70	%	1.4
Hartford Insurance	129,641		2,861	0.68	%	2.2
T-Mobile USA	120,561		2,801	0.67	%	2.5
WorldCom and Affiliates	144,623		2,787	0.67	%	2.5
Bank of America	146,842		2,705	0.65	%	5.3
Ikon	181,361		2,531	0.60	%	3.9
Carlton Fields	95,771		2,435	0.58	%	0.5
Ford Motor Company	125,989		2,426	0.58	%	6.1
CHS Professional Services	145,781		2,380	0.57	%	3.3
	5,723,307	$	88,725	21.19	%	4.7

2/ ITC Deltacom (formerly Business Telecom) is located in a property that, as of December 31, 2003, is under contract for sale. The sale is projected for either the first or second quarter of 2004.

By Industry

Category	Percent of Annualized Revenue 1/
Professional, Scientific, and Technical Services	22.4	%
Insurance	10.3	%
Manufacturing	8.3	%
Telecommunication	7.9	%
Finance/Banking	8.2	%
Retail Trade	7.6	%
Administrative and Support Services	5.4	%
Health Care and Social Assistance	5.2	%
Wholesale Trade	4.6	%
Government/Public Administration	5.2	%
Transportation and Warehousing	3.2	%
Real Estate Rental and Leasing	2.9	%
Information	2.7	%
Accommodation and Food Services	2.6	%
Other Services (except Public Administration)	2.6	%
Educational Services	0.9	%
	100.0	%

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

Highwoods Properties, Inc. Page 26 12/31/03

Same Property Performance

Dollars in thousands

	Includes Highwoods Preserve 1/								Excludes Highwoods Preserve 1/
	Three months ended December 31,						Percentage Change		Three months ended December 31,						Percentage Change
	2003			2002					2003			2002
Rental revenues	$	95,806		$	102,645		-6.7	%	$	95,811		$	98,955		-3.2	%
Operating expenses		(34,840	)		(35,426	)	1.7	%		(34,216	)		(34,932	)	2.0	%
Net operating income	$	60,966		$	67,219		-9.3	%	$	61,595		$	64,023		-3.8	%
Average Occupancy		83.9	%		87.4	%	-4.0	%		86.0	%		87.0	%	-1.1	%
Rentable Square Feet		31,436,000			31,436,000					30,620,000			30,620,000
	Twelve months ended December 31,						Percentage Change		Twelve months ended December 31,						Percentage Change
	2003			2002					2003			2002
Rental revenues	$	389,489		$	416,514		-6.5	%	$	389,503		$	401,842		-3.1	%
Operating expenses		(136,821	)		(135,199	)	-1.2	%		(134,336	)		(133,213	)	-0.8	%
Net operating income	$	252,668		$	281,315		-10.2	%	$	255,167		$	268,629		-5.0	%
Average Occupancy		84.2	%		88.3	%	-4.6	%		86.4	%		88.0	%	-1.8	%
Rentable Square Feet		31,436,000			31,436,000					30,620,000			30,620,000

	Includes Highwoods Preserve 1/				Excludes Highwoods Preserve 1/
Market	2002 to 2003 4th Quarter NOI Change		2002 to 2003 YTD NOI Change		2002 to 2003 4th Quarter NOI Change		2002 to 2003 YTD NOI Change
Atlanta	-9.3	%	-11.5	%	-9.3	%	-11.5	%
Charlotte	-13.8	%	-13.3	%	-13.8	%	-13.3	%
Columbia	-60.2	%	-26.5	%	-60.2	%	-26.5	%
Greenville	2.1	%	2.4	%	2.1	%	2.4	%
Kansas City	-3.0	%	1.8	%	-3.0	%	1.8	%
Memphis	9.6	%	-4.8	%	9.6	%	-4.8	%
Nashville	3.0	%	2.4	%	3.0	%	2.4	%
Orlando	8.3	%	1.8	%	8.3	%	1.8	%
Piedmont Triad	-4.8	%	-5.9	%	-4.8	%	-5.9	%
Research Triangle	-1.8	%	-6.1	%	-1.8	%	-6.1	%
Richmond	2.4	%	0.6	%	2.4	%	0.6	%
Tampa	-43.4	%	-41.1	%	-9.6	%	-8.5	%
	-9.3	%	-10.2	%	-3.8	%	-5.0	%

1/ Highwoods Preserve is the 816,000 square foot office campus in Tampa that Worldcom vacated 12/31/02.

Highwoods Properties, Inc. Page 27 12/31/03

Acquisition Activity

Dollars in thousands

Name	Market	Type 1/	Date Acquired	Square Footage	Cost
First quarter 2003:
Colonnade	Richmond	O	01/21/03	66,000	$	7,000
Second quarter 2003:
None
Third quarter 2003:
Highwoods Ctr at Deerfield I	Atlanta	O	07/29/03	50,000
Highwoods Ctr at Deerfield II	Atlanta	O	07/29/03	67,000
HIW Ctr II at Peachtree Corners	Atlanta	O	07/29/03	109,000
4101 Research Commons	Research Triangle	O	07/29/03	74,000
4201 Research Commons	Research Triangle	O	07/29/03	90,000
4301 Research Commons	Research Triangle	O	07/29/03	91,000
4501 Research Commons	Research Triangle	O	07/29/03	57,000
Concourse	Research Triangle	O	07/29/03	132,000
Lake Plaza East	Research Triangle	O	07/29/03	72,000
Situs I	Research Triangle	O	07/29/03	59,000
Situs II	Research Triangle	O	07/29/03	60,000
Situs III	Research Triangle	O	07/29/03	39,000
Anchor Glass Building	Tampa	O	07/29/03	100,000
Bayshore Place	Tampa	O	07/29/03	83,000
Tower Place	Tampa	O	07/29/03	182,000
Subtotal				1,265,000	$	137,350	2/
HIW Ctr III at Peachtree Corners	Atlanta	O	07/29/03	54,000	$	2,149	3/
Fourth quarter 2003:
Watermark 13	Tampa	O	12/18/03	44,000	$	2,233
				1,429,000	$	148,732

1/ The letter “O” represents Office

2/ We purchased our partner’s 80% interest in these MG-HIW properties.

3/ We purchased our partner’s 50% interest in this Peachtree III property.

Highwoods Properties, Inc. Page 28 12/31/03

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
Third quarter 2003:
5125 Fulton Industrial Blvd	Atlanta	I	07/10/03	149,000		4,788
Capital One	Richmond	O	07/16/03	298,000		38,122
Bay View Office Centre	Tampa	O	07/23/03	73,000		7,400
Verizon Wireless	Greenville	O	07/31/03	193,000		21,502
Countryside Place	Tampa	O	08/29/03	54,000		5,650
Interlachen Village	Orlando	O	09/16/03	41,000		3,900
Holden Road	Piedmont Triad	I	09/30/03	160,000		5,800
Fourth quarter 2003:
Brookwood Day Care Center	Tampa	O	10/07/03	8,000		465
Prairie Village Office Center	Kansas City	O	11/12/03	78,000		4,050
Industrial Portfolio	Piedmont Triad/Richmond	I	12/12/03	1,902,000		59,300
				3,298,000	$	180,127

Assets Contributed to Joint Ventures

	Market	Type 1/	Date Contributed	Square Footage	Sales Price
First quarter 2003:
none
Second quarter 2003:
none
Third quarter 2003:
none
Fourth quarter 2003:
Markel Plaza	Richmond	O	12/24/03	121,000	$	15,738
Markel-American	Richmond	O	12/29/03	103,000		12,417
Innsbrook Centre	Richmond	O	12/29/03	67,000		7,444
				291,000	$	35,599

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

Highwoods Properties, Inc. Page 29 12/31/03

Development Activity

Dollars in thousands

Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/03		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
In-Process
NARA	Atlanta	I	350,000	$	20,387	$	4,140	100	%	3Q04	4Q05
FBI	Tampa	O	112,000		26,634		1,204	100	%	4Q05	4Q05
			462,000	$	47,021	$	5,344	100	%
Completed Not Stabilized 2/
Catawba	Research Triangle	O	40,000	$	4,030	$	2,908	0	%	2Q03	2Q04
801 Raleigh Corporate Center	Research Triangle	O	100,000		12,016		10,702	51	%	4Q02	2Q04
Total or Weighted Average			140,000	$	16,046	$	13,610	36	%

Developed for Sale

	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/03		Pre- Sales		Estimated Completion Date
Grove Park Condominiums	Richmond	O	65,000	$	6,163	$	3,593	68	%	Q104

Placed In Service

Property	Market	Type 1/	In-Service Date	Rentable Square Feet	Investment @ 12/31/03		Quarter 4 2003 NOI 3/		Occ %		Leasing %
Tradeport V	Atlanta	I	12/1/2003	60,000	$	2,819	$	28	50	%	50	%

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

2/ These properties contributed $92,000 in Net Operating Income (Property Revenue - Property Expense) in Q4 2003.

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

Highwoods Properties, Inc. Page 30 12/31/03

Development Land

December 31, 2003

Dollars in thousands

		Developable Square Footage			Total Estimated Market Value
Market	Acres	Office	Retail	Industrial
On Balance Sheet:
Research Triangle	392	3,000,000	—	162,000	$	64,400
Atlanta	258	270,000	1,100,000	1,040,000		35,300
Piedmont Triad	166	787,000	37,000	1,252,000		18,300
Baltimore	97	1,102,000	—	—		12,300
Kansas City 1/	89	725,000	216,000	—		19,700
Charlotte	79	1,151,000	—	—		12,600
Richmond	50	688,000	—	—		9,500
Nashville	50	830,000	—	—		11,800
Orlando	43	862,000	—	—		13,700
Tampa	35	522,000	—	15,000		12,500
Memphis	22	288,000	—	—		4,200
Greenville	12	150,000	—	—		1,800
Jacksonville	10	80,000	—	—		1,100
Columbia	2	20,000	—	—		300
	1,305	10,475,000	1,353,000	2,469,000	$	217,500
Deferred or optioned:
Atlanta	25	—	500,000	—
Research Triangle	25	562,870	—	—
Richmond	11	91,000	—	—
Memphis	—	—	—	—
Piedmont Triad	—	—	—	—
Nashville	—	—	—	—
Charlotte	—	—	—	—
	61	653,870	500,000	—
Total	1,366	11,128,870	1,853,000	2,469,000

1/ Includes 27 acres of residential land

Highwoods Properties, Inc. Page 31 12/31/03

Unconsolidated Joint Ventures Assets, Debt and Liabilities

December 31, 2003

Dollars in thousands

				Venture’s Books
Joint Venture	Type 1/	Own%		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.0	%	$	7,829	$	749	$	815
Dallas County Partners I, LP	O/ I	50.0	%		42,383		38,000		40,402
Dallas County Partners II, LP	O	50.0	%		18,255		22,465		23,934
Dallas County Partners III, LP	O	50.0	%		76		—		25
Fountain Three	O/I /R	50.0	%		34,524		29,924		31,860
RRHWoods, LLC	O/ M	50.0	%		81,327		67,307		70,707
Kessinger/Hunter, LLC	—	26.5	%		8,478		—		(96	)
4600 Madison Associates, LP	O	12.5	%		21,684		16,721		17,060
Highwoods DLF 98/29, LP	O	22.8	%		140,192		67,241		69,522
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		115,854		59,027		61,841
Highwoods-Markel Assoc., LLC	O	50.0	%		51,661		40,000		41,128
MG-HIW, LLC	O	20.0	%		197,191		136,207		141,854
MG-HIW Metrowest I, LLC	O	50.0	%		1,601		—		—
MG-HIW Metrowest II, LLC	O	50.0	%		11,460		7,326		7,636
Concourse Center Assoc., LLC	O	50.0	%		14,489		9,695		9,933
Plaza Colonnade, LLC	O/R	50.0	%		26,086		16,496		17,437
SF-HIW Harborview Plaza, LP	O	20.0	%		40,895		22,800		23,886
Total				$	813,985	$	533,958	$	557,944
				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own%		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.0	%	$	3,836	$	367	$	399
Dallas County Partners I, LP	O/ I	50.0	%		21,191		19,000		20,201
Dallas County Partners II, LP	O	50.0	%		9,128		11,232		11,967
Dallas County Partners III, LP	O	50.0	%		38		—		13
Fountain Three	O/I /R	50.0	%		17,262		14,962		15,930
RRHWoods, LLC	O/ M	50.0	%		40,664		33,653		35,354
Kessinger/Hunter, LLC	—	26.5	%		2,247		—		(25	)
4600 Madison Associates, LP	O	12.5	%		2,710		2,090		2,133
Highwoods DLF 98/29, LP	O	22.8	%		31,978		15,338		15,858
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		49,736		25,340		26,548
Highwoods-Markel Assoc., LLC	O	50.0	%		25,831		20,000		20,564
MG-HIW, LLC	O	20.0	%		39,438		27,241		28,371
MG-HIW Metrowest I, LLC	O	50.0	%		800		—		—
MG-HIW Metrowest II, LLC	O	50.0	%		5,730		3,663		3,818
Concourse Center Assoc., LLC	O	50.0	%		7,244		4,847		4,966
Plaza Colonnade, LLC	O/R	50.0	%		13,043		8,248		8,719
SF-HIW Harborview Plaza, LP	O	20.0	%		8,179		4,560		4,777
Total				$	279,055	$	190,541	$	199,593

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

Highwoods Properties, Inc. Page 32 12/31/03

Unconsolidated Joint Ventures Income

For the three months ended December 31, 2003

Dollars in thousands

			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Board of Trade Investment Co.	49.0	%	$	604	$	413	$	15	$	104	$	72
Dallas County Partners I, LP	50.0	%		2,539		1,340		680		500		19
Dallas County Partners II, LP	50.0	%		1,588		793		568		206		21
Dallas County Partners III, LP	50.0	%		59		34		—		1		24
Fountain Three	50.0	%		1,765		783		533		375		74
RRHWoods, LLC	50.0	%		3,482		1,913		531		913		125
Kessinger/Hunter, LLC	26.5	%		1,889		1,191		—		176		522
4600 Madison Associates, LP	12.5	%		1,315		614		290		441		(30	)
Highwoods DLF 98/29, LP	22.8	%		4,868		1,377		1,141		872		1,478
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%		3,811		1,031		1,143		1,055		582
Highwoods-Markel Assoc., LLC	50.0	%		879		534		334		167		(156	)
MG-HIW, LLC	20.0	%		7,061		2,827		1,273		340		2,621
MG-HIW Metrowest I, LLC	50.0	%		—		2		—		—		(2	)
MG-HIW Metrowest II, LLC	50.0	%		194		87		45		97		(35	)
Concourse Center Assoc., LLC	50.0	%		526		141		209		76		100
Plaza Colonnade, LLC	50.0	%		2		2		—		1		(1	)
SF-HIW Harborview Plaza, LP	20.0	%		2,632		432		351		217		1,632
Total			$	33,214	$	13,514	$	7,113	$	5,541	$	7,046

			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Board of Trade Investment Co.	49.0	%	$	296	$	202	$	7	$	51	$	36
Dallas County Partners I, LP	50.0	%		1,270		669		340		250		11
Dallas County Partners II, LP	50.0	%		794		397		284		103		10
Dallas County Partners III, LP	50.0	%		30		17		—		1		12
Fountain Three	50.0	%		883		391		267		188		37
RRHWoods, LLC	50.0	%		1,741		956		266		457		62
Kessinger/Hunter, LLC	26.5	%		501		316		—		47		138
4600 Madison Associates, LP	12.5	%		164		77		36		55		(4	)
Highwoods DLF 98/29, LP	22.8	%		1,110		313		260		199		338
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%		1,636		442		491		453		250
Highwoods-Markel Assoc., LLC	50.0	%		440		267		167		84		(78	)
MG-HIW, LLC	20.0	%		1,412		564		255		67		526
MG-HIW Metrowest I, LLC	50.0	%		—		1		—		—		(1	)
MG-HIW Metrowest II, LLC	50.0	%		97		44		23		49		(19	)
Concourse Center Assoc., LLC	50.0	%		263		71		105		38		49
Plaza Colonnade, LLC	50.0	%		1		1		—		1		(1	)
SF-HIW Harborview Plaza, LP	20.0	%		526		86		70		43		327
Total 1/			$	11,164	$	4,814	$	2,571	$	2,086	$	1,693

1/ Highwoods’ Share of JV income shown above does not include the amortization of a $155K deferred gain.

Highwoods Properties, Inc. Page 33 12/31/03

Unconsolidated Joint Ventures Income

For the year ended December 31, 2003

Dollars in thousands

			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Board of Trade Investment Co.	49.0	%	$	2,373	$	1,604	$	65	$	408	$	296
Dallas County Partners I, LP	50.0	%		10,287		5,362		2,758		1,912		255
Dallas County Partners II, LP	50.0	%		6,167		2,707		2,343		822		295
Dallas County Partners III, LP	50.0	%		264		147		—		5		112
Fountain Three	50.0	%		6,939		3,129		2,220		1,535		55
RRHWoods, LLC	50.0	%		14,401		7,464		2,510		3,458		969
Kessinger/Hunter, LLC	26.5	%		6,402		4,728		—		716		958
4600 Madison Associates, LP	12.5	%		5,437		2,211		1,166		1,785		275
Highwoods DLF 98/29, LP	22.8	%		19,359		5,518		4,589		3,464		5,788
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%		15,893		4,376		4,591		4,034		2,892
Highwoods-Markel Assoc., LLC	50.0	%		3,342		1,834		1,135		632		(259	)
MG-HIW, LLC 1/	20.0	%		39,922		15,081		7,475		6,634		10,732
MG-HIW Peachtree Corners III, LLC	50.0	%		214		74		72		73		(5	)
MG-HIW Metrowest I, LLC	50.0	%		—		28		—		—		(28	)
MG-HIW Metrowest II, LLC	50.0	%		635		411		169		349		(294	)
Concourse Center Assoc., LLC	50.0	%		2,082		542		726		305		509
Plaza Colonnade, LLC	50.0	%		11		2		—		3		5
SF-HIW Harborview Plaza, LP	20.0	%		6,840		1,720		1,403		866		2,851
Total			$	140,568	$	56,938	$	31,222	$	27,002	$	25,406

			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Board of Trade Investment Co. 2/	49.0	%	$	1,163	$	786	$	32	$	200	$	145
Dallas County Partners I, LP	50.0	%		5,144		2,681		1,379		956		128
Dallas County Partners II, LP	50.0	%		3,084		1,354		1,172		411		147
Dallas County Partners III, LP	50.0	%		132		74		—		3		55
Fountain Three	50.0	%		3,470		1,565		1,110		768		27
RRHWoods, LLC	50.0	%		7,202		3,689		1,255		1,772		486
Kessinger/Hunter, LLC	26.5	%		1,697		1,253		—		190		254
4600 Madison Associates, LP	12.5	%		680		276		147		222		35
Highwoods DLF 98/29, LP	22.8	%		4,416		1,259		1,047		790		1,320
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%		6,824		1,879		1,971		1,731		1,243
Highwoods-Markel Assoc., LLC	50.0	%		1,671		917		568		316		(130	)
MG-HIW, LLC 1/	20.0	%		7,985		3,017		1,495		1,326		2,147
MG-HIW Peachtree Corners III, LLC	50.0	%		107		37		36		37		(3	)
MG-HIW Metrowest I, LLC	50.0	%		—		14		—		—		(14	)
MG-HIW Metrowest II, LLC	50.0	%		318		206		85		175		(148	)
Concourse Center Assoc., LLC	50.0	%		1,041		271		363		153		254
Plaza Colonnade, LLC	50.0	%		5		1		—		2		2
SF-HIW Harborview Plaza, LP	20.0	%		1,368		344		281		173		570
Total 3/			$	46,307	$	19,623	$	10,941	$	9,225	$	6,518

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

2/ Excludes 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 $639K deferred gain.

Highwoods Properties, Inc. Page 34 12/31/03

Unconsolidated Joint Ventures Long-Term Debt Detail

Dollars in thousands

Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 12/31/03
Dallas County Partners I, LP	50.0	%	various 1/	7.1	%	various 1/	$	38,900
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.2	%	Jun-13		22,465
Fountain Three	50.0	%	John Hancock Life Insurance Co.	7.8	%	Jan-08		6,205
	50.0	%	various 2/	7.5	%	various 2/		23,719
Total Fountain Three				7.5	%			29,924
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.0	%3/	Nov-15		23,000
	50.0	%	Bank of America	6.8	%	Sep-12		8,388
	50.0	%	Bank of America	6.8	%	Sep-12		6,399
	50.0	%	Industrial Revenue Bonds	1.0	%3/	Sep-15		6,000
	50.0	%	various 4/	5.2	%3/	various 4/		22,620
Total RRHWoods, LLC				3.7	%			66,407
Highwoods DLF 98/29	22.8	%	USG Annuity & Life Company	6.8	%	May-11		67,241
Highwoods DLF 97/26 DLF 99/32	42.9	%	Massachusetts Mutual Life Ins. Co.	7.7	%	May-12		59,027
MG-HIW, LLC	20.0	%	GE Capital	3.1	%3/	Jan-06		136,207
MG-HIW Metrowest II, LLC	50.0	%	Wachovia	2.7	%3/	Feb-05		7,326
4600 Madison Associates, LP	12.5	%	State Farm	6.9	%	Apr-18		16,721
Board of Trade Investment Co.	49.0	%	KC Board of Trade Clearing Corp.	7.8	%	Sep-07		749
Concourse Center Assoc., LLC	50.0	%	Lincoln National Life Insurance Co.	7.0	%	Jul-10		9,695
Highwoods-Markel Assoc., LLC	50.0	%	Innsbrook Centre	5.9	%	Jan-14		5,800
	50.0	%	Essex	5.8	%	Jan-14		12,263
	50.0	%	Markel-American	5.7	%	Jan-14		9,675
	50.0	%	Markel Plaza	5.8	%	Jan-14		12,263
Total Highwoods-Markel Assoc., LLC								40,001
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		16,496
Total Secured Loans							$	533,959
Highwoods’ Share of the above							$	190,541

1/ Includes 16 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 December 31, 2003’s rates.

4/ Includes 5 fixed rate loans under $6 million maturing between October 2007 to September 2012 and a floating rate loan under $6 million that matures in November 2015

Highwoods Properties, Inc. Page 35 12/31/03

Portfolio Summary Unconsolidated Joint Ventures

As of December 31, 2003

Summary by Location:

	Rentable Square Feet 1/	Occupancy 2/		Percentage of Annualized Revenue - Highwoods’ Share Only 3/
Market				Office		Industrial		Retail		Multi- Family		Total
Des Moines	2,245,000	95.3	%	33.5	%	4.2	%	1.2	%	4.3	%	43.2	%
Orlando	1,764,000	85.6	%	17.9	%	—		—		—		17.9	%
Atlanta	650,000	86.7	%	11.8	%	—		—		—		11.8	%
Research Triangle	455,000	98.7	%	4.2	%	—		—		—		4.2	%
Kansas City	427,000	87.6	%	4.2	%	—		—		—		4.2	%
Piedmont Triad	364,000	100.0	%	4.7	%	—		—		—		4.7	%
Tampa	205,000	92.1	%	2.5	%	—		—		—		2.5	%
Charlotte	148,000	100.0	%	1.0	%	—		—		—		1.0	%
Richmond	412,000	99.0	%	9.9	%	—		—		—		9.9	%
Other	110,000	100.0	%	0.6	%	—		—		—		0.6	%
Total	6,780,000	92.2	%	90.3	%	4.2	%	1.2	%	4.3	%	100.0	%

1/ Excludes Des Moines’ apartment units

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

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

Highwoods Properties, Inc. Page 36 12/31/03

Unconsolidated Joint Ventures Lease Expirations

December 31, 2003

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Total
2004	690,418	10.8	%	$	11,528	$	16.70	10.1	%
2005	696,500	10.9	%		11,975		17.19	10.5	%
2006	771,276	12.0	%		13,454		17.44	11.8	%
2007	350,407	5.5	%		7,281		20.78	6.4	%
2008	1,030,504	16.1	%		16,451		15.96	14.5	%
2009	620,109	9.7	%		12,093		19.50	10.6	%
2010	328,045	5.1	%		4,587		13.98	4.0	%
2011	427,781	6.7	%		9,134		21.35	8.0	%
2012	296,741	4.6	%		6,876		23.17	6.0	%
2013	652,343	10.2	%		11,629		17.83	10.2	%
2014 and thereafter	540,319	8.4	%		9,023		16.70	7.9	%
	6,404,443	100.0	%	$	114,031	$	17.80	100.0	%

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

Highwoods Properties, Inc. Page 37 12/31/03

Unconsolidated Joint Ventures Development

Dollars in thousands

Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/03		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Plaza Colonade, LLC 1/	50	%	Kansas City	285,000	$	69,700	$	25,827	59	%	Q304	Q305
Summit	50	%	Des Moines	36,000		3,559		716	72	%	Q304	Q305
Pinehurst	50	%	Des Moines	36,000		3,559		592	36	%	Q304	Q305
Highwoods’ Share of the above				357,000	$	38,409	$	13,568	58	%

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

Highwoods Properties, Inc. Page 38 12/31/03