8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 22, 2005

HIGHWOODS REALTY LIMITED PARTNERSHIP

(Exact name of registrant specified in its charter)

North Carolina	0-21731	56-1869557
(State of Formation)	(Commission File Number)	(IRS Employer Identification No.)

3100 Smoketree Court, Suite 600

Raleigh, North Carolina 27604

(Address of principal executive offices, zip code)

Registrant’s telephone number, including area code: (919) 872-4924

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On May 26, 2005, Highwoods Properties, Inc. (the “Company”), general partner of Highwoods Realty Limited Partnership (the “Operating Partnership”), issued a press release announcing operational information for the quarter ended March 31, 2005. This press release is attached hereto as Exhibit 99.1. In addition, we posted on our web site supplemental information regarding our operations for the quarter ended March 31, 2005, a copy of which is attached hereto as Exhibit 99.2.

Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

(a)    The Company has also announced that, as a result of the preparation of its 2004 financial statements and related audit by its independent auditors, Ernst & Young LLP (“E&Y”), the Company’s SOX 404 internal control work and its previously disclosed review of lease accounting practices, the Company has identified several adjustments which impact 2004 and prior periods that need to be recorded. These adjustments relate primarily to accounting for lease incentives, depreciation and amortization expense, straight-line ground lease expense on one ground lease, and internal cost capitalization.

Based on its current assessment, the Company does not believe that any of the adjustments, individually or in the aggregate, would have a material impact on any individual prior year. However, we believe that the cumulative impact of such adjustments relating to 2003 and prior years would, if all recorded in 2004, have a material impact on 2004 GAAP net income.

At meetings held on May 22, 2005 and May 24, 2005, members of the Company’s audit committee discussed these matters with management and E&Y and determined that the Operating Partnership should restate its previously reported financial information. As a result of the foregoing, the determination was made by the Company’s audit committee and its management that the financial statements included in the (the “Operating Partnership”)’s amended 2003 Annual Report on Form 10-K and the interim financial statements included in the (the “Operating Partnership”)’s Quarterly Reports during 2004, should no longer be relied upon. Subsequently, E&Y, who previously issued unqualified opinions on our financial statements for 2003, 2002 and 2001, has advised us that such opinions should no longer be relied upon. E&Y is now in the process of auditing the restated financial statements.

Item 9.01. Financial Statements and Exhibits

99.1	Press release dated May 26, 2005
99.2	Supplemental operating information of Highwoods Properties, Inc. for the quarter ended March 31, 2005

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HIGHWOODS REALTY LIMITED PARTNERSHIP
By:	Highwoods Properties Inc., its general partner
By:	/s/ Terry L. Stevens
	Terry L. Stevens
	Vice President, Chief Executive Officer and Treasurer

Dated: May 26, 2005

2

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE		REF: 05-13
Contact:	Tabitha Zane
	Sr. Director, Investor Relations
	919-431-1529

Highwoods Properties Announces First Quarter Operational Results

and Provides Update on Other Matters

Will Host Conference Call at 5:00 p.m. Eastern Time Today, May 26

RALEIGH, NC – May 26, 2005 – Highwoods Properties, Inc. (NYSE: HIW), one of the largest owners and operators of suburban office properties in the Southeast, today announced first quarter operational results and provided an update on other matters.

Operating Results for the First Quarter Ended March 31, 2005

First Quarter 2005 Highlights

• Second generation leasing activity in Highwoods’ portfolio totaled approximately 1.8 million square feet, including 1.2 million square feet of office space. Customer retention for this three-month period was 68%.

• Occupancy in the Company’s 32.6 million square foot in-service portfolio at March 31, 2005 was 83.8%, a 2.4% increase from March 31, 2004.

• Straight-line (GAAP) rental rates for signed office leases decreased 4.6% in the first quarter from straight line rental rates under the previous leases. Cash rents for office leases signed declined 8.8%.

• Tenant improvements and leasing commissions as a percentage of term base rent were 9.9% compared to 12.3% for the same period in 2004.

• The Company signed an 11-year, 199,000 square foot lease for 100% of Building I at Highwoods Preserve to Syniverse Technologies (NYSE:SVR). The lease will commence November 2005.

• 1.2 million square feet of assets were sold, generating $61.2 million of gross proceeds. A portion of these proceeds was used to pay off a $40.9 million secured loan, unencumbering approximately $103 million of assets.

(more)

Highwoods Properties Ref: 05-13

May 26, 2005

Total occupancy in the Company’s wholly-owned portfolio at March 31, 2005 increased to 83.8%, a 240 basis points increase from March 31, 2004. A substantial part of this occupancy increase is due to an improving leasing environment in most of the Company’s markets as evidenced by a total of 8.2 million square feet leased over the trailing 12 months. For the trailing 12-month period ended March 31, 2004 the Company leased a total of 7.4 million square feet on a larger platform. As expected, the Company’s occupancy dropped 120 basis points from December 31, 2004 due, in part, to first quarter dispositions which had an average occupancy of 99.3%.

Ed Fritsch, President and Chief Executive Officer of Highwoods Properties, stated, “We are pleased with our leasing activity and early-phase execution of our strategic management plan. Our entire team remains focused on achieving our three-year goals which include $450 million to $550 million of non-core asset dispositions, $200 million to $300 million of new development starts and a substantially stronger balance sheet. In support of these goals, a portion of the proceeds from first quarter dispositions was used to pay off a $40.9 million secured loan that was callable on April 1, 2005. This transaction resulted in approximately $103 million of additional assets becoming unencumbered. We are also on schedule to deliver 498,000 square feet of 100% pre-leased, wholly-owned, build-to-suit developments in the next three quarters.”

SEC Update

The Company also disclosed that it just learned that the Securities and Exchange Commission (the “SEC”) has issued a confidential formal order of investigation in connection with the Company’s previous restatement of its financial results. The matter had been the subject of a previously disclosed informal SEC inquiry.

Mr. Fritsch stated, “We remain comfortable and confident with the information that we have provided to the SEC and are hopeful that this investigation will be brought to a satisfactory conclusion as soon as possible. We have been cooperating fully with the SEC and we will continue to do so.”

Restatement

The Company also announced that as a result of the preparation of its 2004 financial statements, the related audit by its independent auditors, Ernst & Young LLP (“E&Y”), and the previously disclosed review of our lease accounting practices, the Company has identified several adjustments, impacting 2004 and prior periods, that need to be recorded.

Based on its current assessment, the Company does not believe that any of the adjustments, individually or in the aggregate, would have a material impact on any individual prior year. However, the Company believes that the cumulative impact of such adjustments relating to 2003 and prior years would, if all recorded in 2004, be material to 2004 GAAP net income.

The Company has now concluded that it will record the adjustments by restating prior period results when the Company files its Form 10-K for the year ended December 31, 2004. E&Y has withdrawn its opinions for 2003, 2002 and 2001 and is now in the process of auditing the restated financial statements.

(more)

2

Highwoods Properties Ref: 05-13

May 26, 2005

These adjustments relate primarily to the reclassification of lease incentives, depreciation and amortization expense, straight-line ground lease expense on one ground lease, and internal cost capitalization. All of the adjustments relate to transactions or accounting procedures that date back a number of years.

The Company is working diligently to complete its evaluation of these matters and will report its fourth quarter and year end 2004 financial results and its financial results for the first quarter of 2005 as soon as possible. The Company will also file its audited financial statements as part of its 2004 Annual Report on Form 10-K and mail its annual report and proxy statement to stockholders as soon as possible.

While the Company is completing its analysis and E&Y is completing its audit, the Company currently expects the total net effect of the adjustments on GAAP net income for the three years ended December 31, 2004 will be a reduction of approximately $3.5 million to $4.5 million, or $0.06 to $0.08 per share, of which approximately $1.8 million to $2.4 million, or $0.03 to $0.04 per share, relates to 2004. The total net impact on net income for periods prior to 2002 is expected to be approximately $5.0 million to $6.0 million.

The cumulative impact on FFO applicable to common shareholders for the three years ended December 31, 2004 is currently estimated to be a reduction of approximately $3.8 million to $4.5 million, or $0.07 to $0.08 per share, of which approximately $1.3 million, or $0.02 per share, relates to 2004.

The impact on FFO for 2005 and in future periods is expected to be immaterial, resulting in a reduction of approximately $0.02 to $0.03 per share annually, primarily from the lease incentives reclassification.

The Company does not expect that these adjustments will impact the Company’s cash position or bank loan covenants.

Mr. Fritsch said, “While the current matters are fewer in number and less significant in scope and magnitude than the previous restatement, this does not mitigate the fact that we are restating our financial statements for the second time in less than 12 months. I am not happy about this situation. It is important to note, however, that none of the adjustments are expected to have a material impact on FFO going forward and they are non-cash adjustments relating to transactions or processes that go back many years. Further, our improving operating fundamentals are not impacted by these accounting adjustments.”

Outlook

Based on a preliminary review of year-to-date operational results, the Company confirmed its guidance for 2005, which was originally published on January 5, 2005. At that time the Company announced that it expected FFO per share to be in the range of $2.25 to $2.35. This estimate continues to reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, operating expenses and asset dispositions and acquisitions and excludes any revenue from US Airways from June 2005 through the remainder of the year. This estimate also excludes any asset gains or impairments associated with actual or potential property dispositions, as well as any one-time, non-recurring charges or credits that may occur during the year. This outlook also assumes that the pending restatement will not have a material impact on the Company’s expected 2005 operating performance.

(more)

3

Highwoods Properties Ref: 05-13

May 26, 2005

Non-GAAP Information

We believe that FFO and FFO per share are beneficial to management and investors as important indicators of the performance of an equity REIT. FFO and FFO per share can facilitate comparisons of operating performance between periods and between other REITs because they exclude factors, such as depreciation, amortization and gains and losses from sales of real estate assets, which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates. FFO and FFO per share as disclosed by other REITs may not be comparable to our calculations of FFO and FFO per share. CAD is another useful financial performance measure of an equity REIT. CAD provides an additional basis to evaluate the ability of a REIT to incur and service debt, fund acquisitions and other capital expenditures and pay distributions. CAD does not measure whether cash flow is sufficient to fund all cash needs. FFO, FFO per share and CAD are non-GAAP financial measures and do not represent net income or cash flows from operating, investing or financing activities as defined by GAAP. They should not be considered as alternatives to net income as indicators of our operating performance or to cash flows as measures of liquidity. Furthermore, FFO per share does not depict the amount that accrues directly to the stockholders’ benefit.

FFO is defined by NAREIT as net income or loss, excluding gains or losses from sales of depreciated property, plus operating property depreciation and amortization and adjustments for minority interest and unconsolidated companies on the same basis. As clarified by NAREIT in October 2003, impairment losses on depreciable real estate assets are included in FFO. Our calculation of FFO is consistent with FFO as defined by NAREIT.

Supplemental Information

A copy of the Company’s first quarter 2005 Supplemental Information that includes detailed operating information is available in the “Investor Relations/Quarterly Earnings” section of the Company’s Web site at www.highwoods.com. The Supplemental Information, together with this release, has been furnished to the Securities and Exchange Commission on Form 8-K. Upon completion and audit of the Company’s 2004 financial statements, the Company will make available on its Website an abbreviated Supplemental for the fourth quarter of 2004 that includes detailed financial information. You may also obtain a copy of all Supplemental Information published by the Company by contacting Highwoods Investor Relations at 919-431-1529/ 800-256-2963 or by e-mail to HIW-IR@highwoods.com. If you would like to receive future Supplemental Information packages by e-mail, please contact the Investor Relations department as noted above or by written request to: Investor Relations Department, Highwoods Properties, Inc., 3100 Smoketree Court, Suite 600, Raleigh, NC 27604.

Conference Call

Today, May 26, 2005 at 5:00 p.m. Eastern time, Highwoods will host a teleconference call to discuss the matters outlined in this press release. For US/Canada callers, dial (888) 202-5268 and international callers dial (706) 643-7509. A live listen-only Web cast can be accessed through the Company’s Web site at www.highwoods.com under the “Investor Relations” section.

Telephone and Web cast replays will be available two hours after the completion of the call. The telephone replay will be available for one week beginning at 8:00 p.m. Eastern time. Dial-in numbers for the replay are (800) 642-1687 US/Canada, (706) 645-9291 international. The conference ID is 6678704.

(more)

4

Highwoods Properties Ref: 05-13

May 26, 2005

About the Company

Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. As of March 31, 2005, the Company owned or had an interest in 504 in-service office, industrial and retail properties encompassing approximately 39.5 million square feet. Highwoods also owns approximately 1,123 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Maryland, Missouri, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our Web site at www.highwoods.com.

Certain matters discussed in this press release, such as the effect of tenant bankruptcies on our operations, anticipated continuing compliance with debt agreements, expected leasing and financing activities and financial and operating performance and the cost and timing of expected development projects and asset dispositions, are forward-looking statements within the meaning of the federal securities laws. These statements are distinguished by use of the words “will”, “expect”, “intends” and words of similar meaning. 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, among others, the following: the financial condition of our customers could deteriorate; the final completion of audited financial statements and SOX 404 testing could necessitate additional unexpected adjustments and/or result in additional unexpected costs; unwaived defaults, if any, under our debt instruments could result in an acceleration of some of our outstanding debt; speculative development by others could result in excessive supply of office properties relative to customer demand; we may not be able to lease or re-lease space quickly or on as favorable terms as old leases; unexpected difficulties in obtaining additional capital to satisfy our future cash needs or unexpected increases in interest rates would increase our debt service costs; and others detailed in the Company’s amended 2003 Annual Report on Form 10-K and subsequent SEC reports.

###

5

EX-99.2

Exhibit 99.2

Supplemental Information

March 31, 2005

Supplemental Information

Table of Contents

March 31, 2005

Schedule	Page
Corporate Information	i and ii
Capitalization	1
Long-Term Debt Summary	2
Long-Term Debt Detail	3
Portfolio Summary	4, 5 and 6
Occupancy Trends	7
Leasing Statistics	8, 9 and 10
Leasing Statistics by Market	11
Rental Rate Comparisons by Market	12
Lease Expirations	13 and 14
Office Lease Expirations by Market by Quarter	15
Industrial Lease Expirations by Market by Quarter	16
Office Lease Expirations by Market by Year	17
Industrial Lease Expirations by Market by Year	18
Customer Diversification	19
Acquisition Activity	20
Disposition Activity and Depreciable Assets Contributed to Joint Ventures	21
Development Activity	22
Development Land	23
Joint Ventures Long-Term Debt Detail	24
Joint Ventures Portfolio Summary	25
Joint Ventures Lease Expirations	26
Joint Ventures Development	27

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 24 to 27 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.

Corporate Information

Board of Directors

Thomas W. Adler

Gene H. Anderson

Kay N. Callison

Edward J. Fritsch

Ronald P. Gibson

William E. Graham Jr.

Lawrence S. Kaplan

L. Glenn Orr Jr.

O. Temple Sloan Jr., Chairman

Willard H. Smith Jr.

John L. Turner

F. William Vandiver, Jr.

Senior Management Team

Edward J. Fritsch

President, Chief Executive Officer and Director

Michael E. Harris

Executive Vice President and Chief Operating Officer

Gene H. Anderson

Senior Vice President and Director

Michael F. Beale

Senior Vice President

Robert G. Cutlip

Senior Vice President

W. Brian Reames

Senior Vice President

Thomas S. Hill

Corporate Vice President, Leasing

Carman J. Liuzzo

Vice President, Investments and

Strategic Analysis

Mack D. Pridgen III

Vice President, General Counsel and

Secretary

Terry L. Stevenes

Vice President, Chief Financial Officer

and Treasurer

Research Coverage

Deutsche Banc Securities

Lou Taylor - 212-469-4912

Green Street Advisors

Jim Sullivan - 949-640-8780

KeyBanc Capital Markets

Frank Greywitt - 216-443-4795

Legg Mason

David Fick - 410-454-5018

Morgan Stanley Dean Witter

Gregory Whyte - 212-761-6331

Prudential Equity Group

Jim Sullivan - 212-778-2515

Smith Barney Citigroup

Jonathan Litt - 212-816-0231

UBS Warburg

Keith Mills - 212-713-3098

Wachovia Securities

Chris Haley - 443-263-6773

Highwoods Properties, Inc. i

Corporate Information

Divisional Offices

Atlanta/Piedmont Triad

Gene H. Anderson - Regional Manager

Atlanta, GA

Gene H. Anderson, Senior Vice President

Piedmont Triad, NC

Mark W. Shumaker, Vice President

Orlando/Tampa

Michael F. Beale - Regional Manager

Orlando, FL

Michael F. Beale, Senior Vice President

Tampa, FL

Stephen A. Meyers, Vice President

Raleigh/Richmond

Robert G. Cutlip - Regional Manager

Raleigh, NC

Robert G. Cutlip, Senior Vice President

Richmond, VA

Paul W. Kreckman, Vice President

Charlotte/Memphis/Nashville

W. Brian Reames - Regional Manager

Nashville, TN

W. Brian Reames, Senior Vice President

Charlotte, NC

Thomas F. Cochran, Senior Vice President

Memphis, TN

Steven Guinn, Vice President

Kansas City

Kansas City, MO

Barrett Brady, Senior Vice President

Corporate Headquarters

Highwoods Properties, Inc.

3100 Smoketree Court, Suite 600

Raleigh, NC 27604

919-872-4924

Stock Exchange

NYSE        Trading Symbol: HIW

Investor Relations Contact

Tabitha Zane

Sr. Director, Investor Relations

Phone:	919-431-1529
Fax:	919-876-6929

E-mail: tabitha.zane@highwoods.com

Information Request

To request a standard Investor Relations package, Annual Report or to be added to our e-mail or fax list, please contact the Investor Relations at:

Phone:	800-256-2963
Email:	HIW-IR@highwoods.com

The Company

Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. As of March 31, 2005, the Company owned or had an interest in 504 in-service office, industrial and retail properties encompassing approximately 39.5 million square feet. Highwoods also owns approximately 1,123 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Maryland, Missouri, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our Web site at www.highwoods.com.

Highwoods Properties, Inc. ii

Capitalization

Dollars, shares, and units in thousands

	03/31/05		12/31/04		09/30/04		06/30/04		03/31/04
Long-Term Debt (see page 9 & 10):	$	1,582,009	$	1,571,777	$	1,600,627	$	1,603,485	$	1,790,039
Finance Obligations:	$	62,604	$	63,531	$	62,992	$	63,345	$	62,994
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		54,053		53,813		53,713		53,716		53,631
Minority interest partnership units		5,828		6,102		6,128		6,146		6,146
Total shares and units outstanding		59,881		59,841		59,862		59,777		59,677
Stock price at period end	$	26.82	$	27.70	$	24.61	$	23.50	$	26.21
Market value of common equity	$	1,606,008	$	1,657,596	$	1,473,204	$	1,404,760	$	1,564,133
Total market capitalization with debt and obligations	$	3,628,066	$	3,670,349	$	3,514,268	$	3,449,035	$	3,794,611

See pages 24 to 27 for information regarding Highwoods’ Joint Ventures

Highwoods Properties, Inc. Page 1

Long-Term Debt Summary

Dollars in thousands

	03/31/05			12/31/04			09/30/04			06/30/04			03/31/04
Balances Outstanding:
Secured:
Conventional fixed rate	$	731,426		$	732,796		$	745,524		$	748,740		$	751,894
Variable rate debt		67,348			66,181			50,803			54,945			204,845
Conventional fixed rate 1/		22,800			22,800			22,800			22,800			22,800
Variable rate debt 2/		435			—			—			—			—
Secured total	$	822,009		$	821,777		$	819,127		$	826,485		$	979,539
Unsecured:
Fixed rate bonds and notes	$	460,000		$	460,000		$	460,000		$	460,000		$	560,000
Variable rate debt		120,000			120,000			120,000			120,000			120,000
Credit facility		180,000			170,000			201,500			197,000			130,500
Unsecured total	$	760,000		$	750,000		$	781,500		$	777,000		$	810,500
Total	$	1,582,009		$	1,571,777		$	1,600,627		$	1,603,485		$	1,790,039
Average Interest Rates:
Secured:
Conventional fixed rate		7.2	%		7.2	%		7.2	%		7.2	%		7.2	%
Variable rate debt		4.2	%		4.2	%		3.7	%		3.1	%		3.1	%
Conventional fixed rate 1/		6.1	%		6.1	%		6.1	%		6.1	%		6.1	%
Variable rate debt 2/		2.8	%		—			—			—			0.0	%
Secured total		6.9	%		6.9	%		6.9	%		6.9	%		6.3	%
Unsecured:
Fixed rate bonds		7.4	%		7.4	%		7.4	%		7.4	%		7.3	%
Variable rate debt		3.5	%		3.5	%		3.0	%		2.9	%		2.4	%
Credit facility		3.4	%		3.4	%		2.2	%		2.3	%		2.1	%
Unsecured total		5.9	%		5.9	%		5.4	%		5.4	%		5.8	%
Average		6.4	%		6.4	%		6.2	%		6.2	%		6.1	%

Maturity Schedule:

	Future Maturities of Debt				Total Debt 3/		Average Interest Rate
Year	Secured Debt 3/		Unsecured Debt
2005	$	67,124	$	120,000	$	187,124	5.7	%
2006		50,344		290,000		340,344	5.0	%
2007		93,122		—		93,122	7.3	%
2008		435		100,000		100,435	7.1	%
2009		170,645		50,000		220,645	7.9	%
2010		137,266		—		137,266	7.8	%
2011		—		—		—	—
2012		22,800		—		22,800	6.1	%
2013		274,885		—		274,885	5.9	%
2014		—		—		—	—
Thereafter		5,388		200,000		205,388	7.5	%
Total maturities	$	822,009	$	760,000	$	1,582,009	6.4	%
Weighted average maturity = 4.7 years

1/ Loan relates to the consolidated 20% owned joint venture property (Harborview).

2/ Loan relates to the consolidated 50% owned joint venture property (Vinings).

3/ Excludes annual principal amortization

4/ Included in the $280.0 million of unsecured debt maturities is $180.0 million related to the credit facility which matures in 2006.

Highwoods Properties, Inc. Page 2

Long-Term Debt Detail

Dollars in thousands

Secured Loans

Lender	Rate		Maturity Date	Loan Balance 03/31/05		Undepreciated Book Value of Assets Secured
Monumental Life Ins. Co.	7.8	%	Nov-09	$	162,712	$	236,939
Northwestern Mutual	6.0	%	Mar-13		141,353		186,524
Northwestern Mutual	7.8	%	Nov-10		137,266		277,521
Massachusetts Mutual Life Ins. Co. 1/	5.7	%	Dec-13		126,997		185,922
Northwestern Mutual	8.2	%	Feb-07		64,761		139,833
GECC 2/	3.7	%	Jan-06		46,985		82,355
Principal Life Ins. Co. 3/	8.6	%	Apr-05		40,891		103,399
Principal Life Ins. Co.	8.2	%	Aug-05		26,233		70,655
Metropolitan Life Ins. Co. 4/	6.1	%	Oct-12		22,800		38,834
PNC/Am South/Southtrust 5/	3.7	%	Oct-07		16,686		17,712
PFL Life Ins. Co. 6/	8.1	%	Jun-07		5,623		22,543
Massachusetts Mutual Life Ins. Co. 1/	6.5	%	Dec-13		5,500		—
Ohio National	8.0	%	Nov-17		5,388		10,956
Lutheran Brotherhood	6.8	%	Apr-09		3,997		7,640
PFL Life Ins. Co. 5/6/	5.4	%	Jun-07		3,678		—
Assoc Retirement Trust Fund	8.0	%	Jan-07		2,375		6,790
USG Annuity	7.7	%	Feb-06		2,166		3,797
Security Life of Denver	8.9	%	Aug-09		2,048		9,496
Southland Life Ins. Co.	8.8	%	Aug-09		1,887		6,993
American United Life	9.0	%	Jun-13		1,035		3,640
CUNA Mutual	8.0	%	Sep-06		614		3,184
Members Life Ins. Co	8.0	%	Sep-06		579		3,266
Central Carolina Bank 7/	2.8	%	Jan-08		435		2,021
	6.9	%		$	822,009	$	1,420,020
Unsecured Bonds
Bonds	7.0	%	Dec-06	$	110,000
Bonds	7.1	%	Feb-08		100,000
Bonds	8.1	%	Jan-09		50,000
Bonds	7.5	%	Apr-18		200,000
	7.3	%		$	460,000
Unsecured Loans
Term Loan 2/	3.9	%	Sep-05	$	20,000
Term Loan 8/	4.3	%	Nov-05		100,000
Line of Credit 2/	3.9	%	Jul-06		180,000
	4.0	%		$	300,000
Total Debt	6.5	%		$	1,582,009

1/ These two loans are secured by the same assets.

2/ Floating rate loans based on one month libor.

3/ Paid off on 4/1/05

4/ Loan relates to the consolidated 20% owned joint venture property (Harborview).

5/ Floating rate loan based on ninety day libor.

6/ These two loans are secured by the same assets.

7/ Floating rate loan based on one month libor.

8/ Floating rate loan based on two month libor.

Highwoods Properties, Inc. Page 3

Portfolio Summary - Wholly-Owned Properties Only 1/

(Rentable Square Feet)

	03/31/05		12/31/04		09/30/04		06/30/04		03/31/04
Office Industrial & Retail
In-Service:
Office 2/	24,254,000		24,628,000		25,151,000		25,272,000		26,608,000
Industrial	6,991,000		7,829,000		7,992,000		7,992,000		8,092,000
Retail 3/	1,409,000		1,409,000		1,410,000		1,411,000		1,411,000
Total	32,654,000		33,866,000		34,553,000		34,675,000		36,111,000
Development Completed - Not Stabilized:
Office 2/	—		—		—		—		140,000
Industrial	353,000		350,000		350,000		—		—
Retail	—		—		—		—		—
Total	353,000		350,000		350,000		—		140,000
Development - In Process:
Office 2/	358,000		358,000		333,000		222,000		112,000
Industrial	—		—		—		350,000		350,000
Retail	9,600		9,600		—		—		—
Total	367,600		367,600		333,000		572,000		462,000
Total:
Office 2/	24,612,000		24,986,000		25,484,000		25,494,000		26,860,000
Industrial	7,344,000		8,179,000		8,342,000		8,342,000		8,442,000
Retail 3/	1,418,600		1,418,600		1,410,000		1,411,000		1,411,000
Total	33,374,600		34,583,600		35,236,000		35,247,000		36,713,000
Same Property
Office 2/	22,534,000		22,534,000		22,534,000		22,534,000		22,534,000
Industrial	6,931,000		6,931,000		6,931,000		6,931,000		6,931,000
Retail	1,409,000		1,409,000		1,409,000		1,409,000		1,409,000
Total	30,874,000		30,874,000		30,874,000		30,874,000		30,874,000
Percent Leased/Pre-Leased:
In-Service:
Office	82.3	%	82.7	%	80.9	%	79.2	%	79.2	%
Industrial	86.8	%	90.2	%	88.4	%	88.0	%	86.5	%
Retail	95.5	%	97.3	%	94.5	%	93.4	%	94.0	%
Total	83.8	%	85.0	%	83.2	%	81.8	%	81.4	%
Development Completed - Not Stabilized:
Office	—		—		—		—		36.0	%
Industrial	100.0	%	100.0	%	100.0	%	—		—
Retail	—		—		—		—		—
Total	100.0	%	100.0	%	100.0	%	—		36.0	%
Development - In Process:
Office	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Industrial	—		—		—		100.0	%	100.0	%
Retail	66.0	%	44.0	%	—		—		—
Total	99.1	%	98.5	%	100.0	%	100.0	%	100.0	%
Same Property
Office	82.7	%	83.0	%	80.9	%	80.0	%	80.1	%
Industrial	87.0	%	89.2	%	87.6	%	87.2	%	85.7	%
Retail	95.5	%	97.3	%	94.6	%	93.5	%	94.2	%
Total	84.2	%	85.0	%	83.0	%	82.2	%	82.0	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

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

3/ Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties.

Highwoods Properties, Inc. Page 4

Portfolio Summary

(Continued)

As of March 31, 2005

Summary by Location, Wholly-Owned Properties Only 1/:

	Rentable Square Feet		Occupancy		Percentage of Annualized Revenue 2/
Market					Office		Industrial		Retail		Total
Raleigh 3/	4,432,000		83.3	%	15.3	%	0.2	%	—		15.5	%
Atlanta	6,826,000		83.0	%	11.6	%	3.4	%	—		15.0	%
Tampa	4,077,000		70.5	%	13.7	%	—		—		13.7	%
Kansas City	2,308,000	4/	91.6	%	4.1	%	—		8.7	%	12.8	%
Nashville	2,870,000		92.8	%	12.1	%	—		—		12.1	%
Piedmont Triad 5/	5,722,000		90.4	%	6.3	%	3.5	%	—		9.8	%
Richmond	1,836,000		95.1	%	7.3	%	—		—		7.3	%
Memphis	1,216,000		80.6	%	4.3	%	—		—		4.3	%
Charlotte	1,492,000		67.7	%	3.7	%	—		—		3.7	%
Greenville	1,127,000		81.1	%	3.3	%	0.1	%	—		3.4	%
Columbia	426,000		59.9	%	1.0	%	—		—		1.0	%
Orlando	222,000		97.8	%	1.0	%	—		—		1.0	%
Other	100,000		61.3	%	0.4	%	—		—		0.4	%
Total	32,654,000		83.8	%	84.1	%	7.2	%	8.7	%	100.0	%

Summary by Location, Including Joint Venture Properties:

	Rentable Square Feet	Occupancy		Percentage of Annualized Revenue 2/6/
Market				Office		Industrial		Retail		Multi-Family		Total
Atlanta	7,661,000	84.1	%	12.0	%	3.0	%	—		—		15.0	%
Raleigh	4,887,000	84.8	%	14.2	%	0.1	%	—		—		14.3	%
Kansas City	2,736,000	90.8	%	4.6	%	—		7.8	%	—		12.4	%
Tampa	4,282,000	71.9	%	12.3	%	—		—		—		12.3	%
Nashville	2,870,000	92.8	%	10.8	%	—		—		—		10.8	%
Piedmont Triad	6,086,000	91.0	%	6.0	%	3.1	%	—		—		9.1	%
Richmond	2,249,000	96.0	%	7.0	%	—		—		—		7.0	%
Des Moines	2,245,000	95.3	%	3.1	%	0.4	%	0.1	%	0.4	%	4.0	%
Memphis	1,216,000	80.6	%	3.8	%	—		—		—		3.8	%
Orlando	1,906,000	90.8	%	3.7	%	—		—		—		3.7	%
Charlotte	1,640,000	70.7	%	3.3	%	—		—		—		3.3	%
Greenville	1,127,000	81.1	%	2.9	%	0.1	%	—		—		3.0	%
Columbia	426,000	59.9	%	0.9	%	—		—		—		0.9	%
Other	210,000	81.6	%	0.4	%	—		—		—		0.4	%
Total	39,541,000	85.6	%	85.0	%	6.7	%	7.9	%	0.4	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

3/ Raleigh Market encompasses Raleigh, Durham, Research Triangle metropolitan area.

4/ Excludes basement space in the Country Club Plaza property of 430,000 square feet

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

Highwoods Properties, Inc. Page 5

Portfolio Summary - Wholly-Owned Properties Only 1/

(Continued)

As of March 31, 2005

	Office Properties					Industrial
Market	Rentable Square Feet	Occupancy		Percentage of Office Annualized Revenue 2/		Rentable Square Feet	Occupancy		Percentage of Industrial Annualized Revenue 2/
Raleigh	4,331,000	83.6	%	18.4	%	101,000	71.2	%	2.3	%
Tampa	4,077,000	70.5	%	16.3	%	—	—		—
Nashville	2,870,000	92.8	%	14.4	%	—	—		—
Atlanta	3,575,000	81.8	%	13.8	%	3,251,000	84.3	%	47.2	%
Richmond	1,836,000	95.1	%	8.6	%	—	—		—
Piedmont Triad	2,190,000	89.1	%	7.5	%	3,532,000	91.2	%	49.2	%
Memphis	1,216,000	80.6	%	5.1	%	—	—		—
Kansas City	895,000	85.4	%	4.8	%	4,000	100.0	%	0.1	%
Charlotte	1,492,000	67.7	%	4.4	%	—	—		—
Greenville	1,024,000	86.3	%	3.9	%	103,000	28.9	%	1.2	%
Columbia	426,000	59.9	%	1.2	%	—	—		—
Orlando	222,000	97.8	%	1.2	%	—	—		—
Other	100,000	61.3	%	0.4	%	—	—		—
	24,254,000	82.3	%	100.0	%	6,991,000	86.8	%	100.0	%

	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Revenue 2/
Kansas City 3/	1,409,000	95.5	%	100.0	%
	1,409,000	95.5	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

3/ Excludes basement space in the Country Club Plaza property of 430,000 square feet

Highwoods Properties, Inc. Page 6

Occupancy Trends - Office, Industrial and Retail Properties 1/

Market	Measurement	03/31/05		12/31/04		09/30/04		06/30/04		03/31/04
Atlanta	Rentable Square Feet	6,826,000		6,825,000		6,825,000		6,821,000		6,919,000
	Occupancy	83.0	%	83.7	%	81.3	%	80.7	%	78.8	%
	Current Properties 2/	83.0	%	83.7	%	81.3	%	80.7	%	78.9	%
Charlotte	Rentable Square Feet	1,492,000		1,492,000		1,655,000		1,655,000		1,655,000
	Occupancy	67.7	%	72.9	%	74.6	%	73.9	%	80.5	%
	Current Properties 2/	67.7	%	72.9	%	75.1	%	74.1	%	81.6	%
Columbia	Rentable Square Feet	426,000		426,000		426,000		426,000		426,000
	Occupancy	59.9	%	60.4	%	57.5	%	57.9	%	58.6	%
	Current Properties 2/	59.9	%	60.4	%	57.5	%	57.9	%	58.6	%
Greenville	Rentable Square Feet	1,127,000		1,127,000		1,319,000		1,319,000		1,319,000
	Occupancy	81.1	%	80.5	%	79.4	%	78.8	%	78.8	%
	Current Properties 2/	81.1	%	80.5	%	78.4	%	77.4	%	77.4	%
Kansas City 3/	Rentable Square Feet	2,308,000		2,308,000		2,308,000		2,310,000		2,309,000
	Occupancy	91.6	%	94.1	%	92.4	%	91.4	%	91.2	%
	Current Properties 2/	91.6	%	94.1	%	92.4	%	91.4	%	91.2	%
Memphis	Rentable Square Feet	1,216,000		1,216,000		1,216,000		1,216,000		1,216,000
	Occupancy	80.6	%	83.2	%	82.1	%	82.0	%	81.3	%
	Current Properties 2/	80.6	%	83.2	%	82.1	%	82.0	%	81.3	%
Nashville	Rentable Square Feet	2,870,000		2,870,000		2,870,000		2,870,000		2,870,000
	Occupancy	92.8	%	93.3	%	93.4	%	91.7	%	89.8	%
	Current Properties 2/	92.8	%	93.3	%	93.4	%	91.7	%	89.8	%
Orlando	Rentable Square Feet	222,000		222,000		387,000		387,000		1,656,000
	Occupancy	97.7	%	93.2	%	94.4	%	52.9	%	75.8	%
	Current Properties 2/	97.7	%	93.2	%	93.2	%	88.5	%	91.5	%
Piedmont Triad	Rentable Square Feet	5,722,000		6,652,000		6,652,000		6,652,000		6,685,000
	Occupancy	90.4	%	92.5	%	91.9	%	91.1	%	90.5	%
	Current Properties 2/	90.4	%	91.3	%	90.6	%	89.7	%	89.5	%
Raleigh	Rentable Square Feet	4,432,000		4,597,000		4,739,000		4,808,000		4,664,000
	Occupancy	83.3	%	83.8	%	81.1	%	79.4	%	80.9	%
	Current Properties 2/	83.3	%	83.3	%	80.2	%	78.7	%	78.9	%
Richmond	Rentable Square Feet	1,836,000		1,835,000		1,835,000		1,835,000		1,851,000
	Occupancy	95.1	%	94.1	%	92.0	%	89.7	%	90.9	%
	Current Properties 2/	95.1	%	94.0	%	92.0	%	89.6	%	90.9	%
Tampa	Rentable Square Feet	4,077,000		4,196,000		4,221,000		4,277,000		4,443,000
	Occupancy	70.5	%	71.0	%	66.1	%	65.9	%	63.7	%
	Current Properties 2/	70.5	%	71.1	%	66.1	%	66.8	%	66.1	%
Total 4/	Rentable Square Feet	32,554,000		33,766,000		34,453,000		34,576,000		36,013,000
	Occupancy	83.8	%	85.0	%	83.2	%	81.8	%	81.4	%
	Current Properties 2/	83.8	%	84.6	%	82.7	%	81.8	%	81.6	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Only properties that were owned and in-service on March 31, 2005 are included for each quarter shown.

3/ Excludes basement space in the Country Club Plaza property of 430,000 square feet.

4/ Excludes 100,000 square foot building located in South Florida

Highwoods Properties, Inc. Page 7

Leasing Statistics

Office Portfolio 1/

	Three Months Ended
	3/31/2005 2/			12/31/04 3/			9/30/04 4/			6/30/04 5/			3/31/04 6/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		188			206			219			230			209			210
Rentable square footage leased		1,235,718			1,101,291			1,368,577			1,375,372			1,191,746			1,254,541
Square footage of Renewal Deals		677,799			726,959			703,003			1,011,662			673,551			758,595
Renewed square footage (% of total)		54.9	%		66.0	%		51.4	%		73.6	%		56.5	%		60.5	%
New Leases square footage (% of total)		45.1	%		34.0	%		48.6	%		26.4	%		43.5	%		39.5	%
Average per rentable square foot over the lease term:
Base rent	$	16.20		$	17.40		$	16.68		$	17.64		$	17.43		$	17.07
Tenant improvements		(0.94	)		(1.51	)		(1.27	)		(1.09	)		(1.57	)		(1.28	)
Leasing commissions 7/		(0.66	)		(0.62	)		(0.64	)		(0.52	)		(0.58	)		(0.60	)
Rent concessions		(0.41	)		(0.31	)		(0.37	)		(0.27	)		(0.63	)		(0.40	)
Effective rent		14.19			14.96			14.40			15.76			14.65			14.79
Expense stop		(4.46	)		(5.61	)		(5.32	)		(5.25	)		(5.70	)		(5.27	)
Equivalent effective net rent	$	9.73		$	9.35		$	9.08		$	10.51		$	8.95		$	9.52
Average term in years		5.7			5.0			3.7			4.3			4.8			4.7
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	5,644,830		$	9,208,835		$	9,455,102		$	8,908,277		$	10,063,665		$	8,656,142
Rentable square feet		1,235,718			1,101,291			1,368,577			1,375,372			1,191,746			1,254,541
Per rentable square foot	$	4.57		$	8.36		$	6.91		$	6.48		$	8.44		$	6.90
Leasing Commissions:
Total dollars committed under signed leases 7/	$	4,109,601		$	2,806,566		$	2,969,620		$	2,878,161		$	2,747,400		$	3,102,269
Rentable square feet		1,235,718			1,101,291			1,368,577			1,375,372			1,191,746			1,254,541
Per rentable square foot	$	3.33		$	2.55		$	2.17		$	2.09		$	2.31		$	2.47
Total:
Total dollars committed under signed leases	$	9,754,430		$	12,015,400		$	12,424,721		$	11,786,438		$	12,811,064		$	11,758,411
Rentable square feet		1,235,718			1,101,291			1,368,577			1,375,372			1,191,746			1,254,541
Per rentable square foot	$	7.89		$	10.91		$	9.08		$	8.57		$	10.75		$	9.37

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Includes 89K square feet of leases that start in 2007 or later

3/ Includes 111K square feet of leases that start in 2007 or later

4/ Includes 128K square feet of leases that start in 2006 or later

5/ Includes 100K square feet of leases that start in 2006 or later

6/ Includes 72K square feet of leases that start in 2006 or later

7/ Excludes a full allocation of internal marketing cost

Highwoods Properties, Inc. Page 8

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	3/31/2005 1/			12/31/04			9/30/04 2/			06/30/04			03/31/04			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		15			36			34			7			32			25
Rentable square footage leased		599,048			1,216,644			285,706			820,933			630,829			710,632
Square footage of Renewal Deals		579,069			875,445			246,797			642,011			448,003			558,265
Renewed square footage (% of total)		96.7	%		72.0	%		86.4	%		78.2	%		71.0	%		78.6	%
New Leases square footage (% of total)		3.3	%		28.0	%		13.6	%		21.8	%		29.0	%		21.4	%
Average per rentable square foot over the lease term:
Base rent	$	3.39		$	3.49		$	4.73		$	4.11		$	3.67		$	3.88
Tenant improvements		(0.16	)		(0.13	)		(0.33	)		(0.31	)		(0.17	)		(0.22	)
Leasing commissions 3/		(0.06	)		(0.06	)		(0.07	)		(0.08	)		(0.14	)		(0.08	)
Rent concessions		(0.01	)		(0.03	)		(0.05	)		(0.17	)		(0.05	)		(0.06	)
Effective rent		3.16			3.27			4.28			3.55			3.31			3.52
Expense stop		(0.08	)		(0.09	)		(0.54	)		(0.36	)		(0.18	)		(0.25	)
Equivalent effective net rent	$	3.08		$	3.18		$	3.74		$	3.19		$	3.13		$	3.27
Average term in years		1.3			2.0			2.6			3.2			2.6			2.3
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	361,044		$	756,077		$	307,534		$	1,805,334		$	640,867		$	774,171
Rentable square feet		599,048			1,216,644			285,706			820,933			630,829			710,632
Per rentable square foot	$	0.60		$	0.62		$	1.08		$	2.20		$	1.02		$	1.09
Leasing Commissions:
Total dollars committed under signed leases 3/	$	63,473		$	226,000		$	64,714		$	207,676		$	280,486		$	168,470
Rentable square feet		599,048			1,216,644			285,706			820,933			630,829			710,632
Per rentable square foot	$	0.11		$	0.19		$	0.23		$	0.25		$	0.44		$	0.24
Total:
Total dollars committed under signed leases	$	424,517		$	982,077		$	372,247		$	2,013,010		$	921,354		$	942,641
Rentable square feet		599,048			1,216,644			285,706			820,933			630,829			710,632
Per rentable square foot	$	0.71		$	0.81		$	1.30		$	2.45		$	1.46		$	1.33

1/ Includes 2K square feet of leases that start in 2006 or later

2/ Includes 74K square feet of leases that start in 2006 or later

3/ Excludes a full allocation of internal marketing cost

Highwoods Properties, Inc. Page 9

Leasing Statistics

Retail Portfolio

	Three Months Ended
	03/31/05			12/31/04			9/30/04			6/30/04 1/			3/31/04 2/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		4			23			18			13			10			14
Rentable square footage leased		10,993			106,629			34,300			38,548			37,303			45,555
Square footage of Renewal Deals		1,750			78,579			15,530			17,482			27,219			28,112
Renewed square footage (% of total)		15.9	%		73.7	%		45.3	%		45.4	%		73.0	%		61.7	%
New Leases square footage (% of total)		84.1	%		26.3	%		54.7	%		54.6	%		27.0	%		38.3	%
Average per rentable square foot over the lease term:
Base rent	$	26.09		$	17.03		$	26.45		$	22.98		$	30.87		$	24.68
Tenant improvements		(2.65	)		(1.73	)		(1.84	)		(2.04	)		(1.58	)		(1.97	)
Leasing commissions 3/		(0.88	)		(0.26	)		(0.56	)		(0.32	)		(0.31	)		(0.47	)
Rent concessions		0.00			0.00			(0.04	)		0.00			(0.06	)		(0.02	)
Effective rent		22.56			15.04			24.01			20.62			28.92			22.22
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00
Equivalent effective net rent	$	22.56		$	15.04		$	24.01		$	20.62		$	28.92		$	22.22
Average term in years		9.3			8.3			5.7			8.0			6.1			7.5
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	308,098		$	2,137,327		$	403,309		$	800,125		$	866,975		$	903,167
Rentable square feet		10,993			106,629			34,300			38,548			37,303			45,555
Per rentable square foot	$	28.03		$	20.04		$	11.76		$	20.76		$	23.24		$	19.83
Leasing Commissions:
Total dollars committed under signed leases 3/	$	3,778		$	220,528		$	86,458		$	34,423		$	28,206		$	74,679
Rentable square feet		10,993			106,629			34,300			38,548			37,303			45,555
Per rentable square foot	$	0.34		$	2.07		$	2.52		$	0.89		$	0.76		$	1.64
Total:
Total dollars committed under signed leases	$	311,876		$	2,357,855		$	489,767		$	834,548		$	895,181		$	977,845
Rentable square feet		10,993			106,629			34,300			38,548			37,303			45,555
Per rentable square foot	$	28.37		$	22.11		$	14.28		$	21.65		$	24.00		$	21.47

1/ Includes 6K square feet of leases that start in 2006 or later

2/ Includes 16K square feet of leases that start in 2006 or later

3/ Excludes a full allocation of internal marketing cost

Highwoods Properties, Inc. Page 10

Leasing Statistics by Market

For the Three Months ended March 31, 2005

Office Portfolio 1/

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Tampa	297,894	8.7	$	14.43	$	5.23	$	6.61
Richmond	161,114	3.2		18.71		5.68		1.72
Raleigh	158,676	3.0		17.41		2.29		0.83
Nashville	148,947	3.0		19.31		4.73		1.34
Piedmont Triad	132,410	11.1		8.55		1.82		2.54
Atlanta	110,227	4.7		14.88		3.31		2.19
Greenville	98,722	5.3		16.23		5.18		4.56
Memphis	56,632	5.2		20.98		12.53		3.04
Charlotte	44,455	2.2		10.80		2.38		0.40
Kansas City	20,046	2.6		20.71		2.88		2.79
Columbia	6,595	5.8		15.99		17.20		5.93
	1,235,718	5.7	$	15.79	$	4.57	$	3.33
Industrial Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Piedmont Triad	515,278	0.9	$	3.16	$	0.15	$	0.03
Atlanta	83,770	3.8		4.70		3.40		0.45
	599,048	1.3	$	3.38	$	0.60	$	0.11
Retail Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF
Kansas City	10,993	9.3	$	26.09	$	28.03	$	0.34
	10,993	9.3	$	26.09	$	28.03	$	0.34

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Total lease commissions per square foot excludes all internal charges from Leasing Departments, which are not allocated to individual leases.

Highwoods Properties, Inc. Page 11

Rental Rate Comparisons by Market

For the Three Months ended March 31, 2005

Office Portfolio 1/

Market	Rentable Square Feet Leased	Current GAAP Rent		Previous GAAP Rent		Percentage Change GAAP Rent
Tampa	297,894	$	14.43	$	16.93	-14.8	%
Richmond	161,114		18.71		18.08	3.5	%
Raleigh	158,676		17.41		19.05	-8.6	%
Nashville	148,947		19.31		19.63	-1.6	%
Piedmont Triad	132,410		8.55		8.49	0.7	%
Atlanta	110,227		14.88		16.46	-9.6	%
Greenville	98,722		16.23		14.02	15.8	%
Memphis	56,632		20.98		20.08	4.5	%
Charlotte	44,455		10.80		13.00	-16.9	%
Kansas City	20,046		20.71		20.51	1.0	%
Columbia	6,595		15.99		18.05	-11.4	%
	1,235,718	$	15.79	$	16.55	-4.6	%
Cash Rent Growth	1,235,718	$	16.54	$	18.13	-8.8	%
Industrial Portfolio
Market	Rentable Square Feet Leased	Current GAAP Rent		Previous GAAP Rent		Percentage Change GAAP Rent
Piedmont Triad	515,278	$	3.16	$	3.23	-2.1	%
Atlanta	83,770		4.70		5.42	-13.4	%
	599,048	$	3.38	$	3.53	-4.2	%
Cash Rent Growth	599,048	$	3.27	$	3.45	-5.2	%
Retail Portfolio
Market	Rentable Square Feet Leased	Current GAAP Rent		Previous GAAP Rent		Percentage Change GAAP Rent
Kansas City	10,993	$	26.09	$	16.83	55.0	%
	10,993	$	26.09	$	16.83	55.0	%
Cash Rent Growth	10,993	$	24.05	$	16.98	41.6	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

Highwoods Properties, Inc. Page 12

Lease Expirations

March 31, 2005

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: 2/
2005 3/	2,596,243	13.0	%	$	45,916	$	17.69	13.1	%
2006	3,111,763	15.6	%		57,788		18.57	16.4	%
2007	1,998,876	10.0	%		34,981		17.50	10.0	%
2008	3,144,803	15.7	%		51,052		16.23	14.6	%
2009	2,770,415	13.9	%		49,857		18.00	14.3	%
2010	2,118,090	10.6	%		37,441		17.68	10.7	%
2011	1,443,419	7.2	%		27,567		19.10	7.9	%
2012	829,918	4.2	%		15,304		18.44	4.4	%
2013	469,632	2.4	%		7,967		16.96	2.3	%
2014	419,428	2.1	%		8,291		19.77	2.4	%
2015 and thereafter	1,049,119	5.3	%		13,661		13.02	3.9	%
	19,951,706	100.0	%	$	349,825	$	17.53	100.0	%
Industrial:
2005 4/	1,536,242	24.5	%	$	6,610	$	4.30	22.2	%
2006	1,047,623	16.6	%		5,248		5.01	17.6	%
2007	1,090,412	17.3	%		6,185		5.67	20.8	%
2008	688,790	10.9	%		3,132		4.55	10.5	%
2009	644,325	10.2	%		3,756		5.83	12.6	%
2010	198,232	3.2	%		826		4.17	2.8	%
2011	150,822	2.4	%		713		4.73	2.4	%
2012	194,828	3.1	%		455		2.34	1.5	%
2013	102,384	1.6	%		621		6.07	2.1	%
2014	206,731	3.3	%		799		3.86	2.7	%
2015 and thereafter	432,567	6.9	%		1,420		3.28	4.8	%
	6,292,956	100.0	%	$	29,765	$	4.73	100.0	%

1/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

2/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

3/ Includes 104,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

4/ Includes 212,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue

Note: 2005 and beyond expirations that have been renewed are reflected above based on the renewal’s expiration date.

Highwoods Properties, Inc. Page 13

Lease Expirations

March 31, 2005

(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:
2005 2/	32,264	2.4	%	$	992	$	30.75	2.7	%
2006	99,549	7.4	%		2,438		24.49	6.7	%
2007	79,810	5.9	%		2,180		27.31	6.0	%
2008	129,441	9.6	%		3,612		27.90	9.9	%
2009	191,405	14.2	%		4,797		25.06	13.2	%
2010	91,550	6.8	%		3,116		34.04	8.6	%
2011	58,071	4.3	%		1,902		32.75	5.2	%
2012	140,426	10.4	%		4,033		28.72	11.1	%
2013	108,866	8.1	%		2,775		25.49	7.6	%
2014	83,349	6.2	%		1,626		19.51	4.5	%
2015 and thereafter	331,450	24.7	%		8,890		26.82	24.5	%
	1,346,181	100.0	%	$	36,361	$	27.01	100.0	%
Total:
2005 3/4/	4,164,749	15.0	%		53,518		12.85	12.9	%
2006	4,258,935	15.4	%		65,474		15.37	15.7	%
2007	3,169,098	11.5	%		43,346		13.68	10.4	%
2008	3,963,034	14.4	%		57,796		14.58	13.9	%
2009	3,606,145	13.1	%		58,410		16.20	14.0	%
2010	2,407,872	8.7	%		41,383		17.19	9.9	%
2011	1,652,312	6.0	%		30,182		18.27	7.3	%
2012	1,165,172	4.2	%		19,792		16.99	4.8	%
2013	680,882	2.5	%		11,363		16.69	2.7	%
2014	709,508	2.6	%		10,716		15.10	2.6	%
2015 and thereafter	1,813,136	6.6	%		23,971		13.22	5.8	%
	27,590,843	100.0	%	$	415,951	$	15.08	100.0	%

1/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

2/ Includes 10,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

3/ Includes 326,000 square feet of leases that are on a month to month basis or 0.7% of total annualized revenue

4/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

Note: 2005 and beyond expirations that have been renewed are reflected above based on the renewal’s expiration date.

Highwoods Properties, Inc. Page 14

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands

		Three Months Ended												Total
		6/30/05 2/			09/30/05			12/31/05			03/31/06
Atlanta	RSF		118,460			349,949			30,914			134,599			633,922
	% of Total Office RSF		0.6	%		1.8	%		0.2	%		0.7	%		3.2	%
	Annualized Revenue 3/	$	1,309		$	5,947		$	469		$	1,738		$	9,463
	% of Total Office Annl Rev		0.4	%		1.7	%		0.1	%		0.5	%		2.7	%
Charlotte	RSF		55,910			73,469			22,267			36,827			188,473
	% of Total Office RSF		0.3	%		0.4	%		0.1	%		0.2	%		0.9	%
	Annualized Revenue 3/	$	993		$	946		$	377		$	555		$	2,871
	% of Total Office Annl Rev		0.3	%		0.3	%		0.1	%		0.2	%		0.8	%
Columbia	RSF		0			27,437			3,352			0			30,789
	% of Total Office RSF		0.0	%		0.1	%		0.0	%		0.0	%		0.2	%
	Annualized Revenue 3/	$	—		$	506		$	60		$	—		$	566
	% of Total Office Annl Rev		0.0	%		0.1	%		0.0	%		0.0	%		0.2	%
Greenville	RSF		227,080			30,364			0			30,791			288,235
	% of Total Office RSF		1.1	%		0.2	%		0.0	%		0.2	%		1.4	%
	Annualized Revenue 3/	$	3,057		$	480		$	—		$	609		$	4,146
	% of Total Office Annl Rev		0.9	%		0.1	%		0.0	%		0.2	%		1.2	%
Kansas City	RSF		39,854			20,727			29,133			60,422			150,136
	% of Total Office RSF		0.2	%		0.1	%		0.1	%		0.3	%		0.8	%
	Annualized Revenue 3/	$	783		$	395		$	532		$	1,307		$	3,017
	% of Total Office Annl Rev		0.2	%		0.1	%		0.2	%		0.4	%		0.9	%
Memphis	RSF		53,891			46,875			9,867			49,630			160,263
	% of Total Office RSF		0.3	%		0.2	%		0.0	%		0.2	%		0.8	%
	Annualized Revenue 3/	$	980		$	853		$	177		$	943		$	2,953
	% of Total Office Annl Rev		0.3	%		0.2	%		0.1	%		0.3	%		0.8	%
Nashville	RSF		116,667			55,687			115,545			143,359			431,258
	% of Total Office RSF		0.6	%		0.3	%		0.6	%		0.7	%		2.2	%
	Annualized Revenue 3/	$	2,410		$	1,143		$	2,367		$	2,870		$	8,790
	% of Total Office Annl Rev		0.7	%		0.3	%		0.7	%		0.8	%		2.5	%
Orlando	RSF		9,154			0			0			0			9,154
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 3/	$	161		$	—		$	—		$	—		$	161
	% of Total Office Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Piedmont Triad	RSF		87,464			109,135			41,764			93,611			331,974
	% of Total Office RSF		0.4	%		0.5	%		0.2	%		0.5	%		1.7	%
	Annualized Revenue 3/	$	1,562		$	1,649		$	709		$	1,632		$	5,552
	% of Total Office Annl Rev		0.4	%		0.5	%		0.2	%		0.5	%		1.6	%
Raleigh	RSF		96,912			119,557			101,829			299,390			617,688
	% of Total Office RSF		0.4	%		0.6	%		0.5	%		1.5	%		3.0	%
	Annualized Revenue 3/	$	1,687		$	2,461		$	2,229		$	6,020		$	12,397
	% of Total Office Annl Rev		0.5	%		0.7	%		0.6	%		1.7	%		3.5	%
Richmond	RSF		65,836			179,310			85,631			44,771			375,548
	% of Total Office RSF		0.3	%		0.9	%		0.4	%		0.2	%		1.9	%
	Annualized Revenue 3/	$	1,235		$	3,510		$	1,281		$	853		$	6,879
	% of Total Office Annl Rev		0.4	%		1.0	%		0.4	%		0.2	%		2.0	%
Tampa	RSF		126,549			87,809			56,750			63,342			334,450
	% of Total Office RSF		0.6	%		0.4	%		0.3	%		0.3	%		1.7	%
	Annualized Revenue 3/	$	2,510		$	1,826		$	1,309		$	1,094		$	6,739
	% of Total Office Annl Rev		0.7	%		0.5	%		0.4	%		0.3	%		1.9	%
Other	RSF		1,095			0			0			0			1,095
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 3/	$	5		$	—		$	—		$	—		$	5
	% of Total Office Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Total	RSF		998,872			1,100,319			497,052			956,742			3,552,985
	% of Total Office RSF		5.0	%		5.5	%		2.5	%		4.8	%		17.8	%
	Annualized Revenue 3/	$	16,692		$	19,716		$	9,510		$	17,621		$	63,539
	% of Total Office Annl Rev		4.8	%		5.6	%		2.7	%		5.0	%		18.2	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Includes 104,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

3/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Highwoods Properties, Inc. Page 15

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

		Three Months Ended
		6/30/05 1/			09/30/05			12/31/05			03/31/06			Total
Atlanta	RSF		136,694			170,528			271,953			111,622			690,797
	% of Total Industrial RSF		2.2	%		2.7	%		4.3	%		1.8	%		11.0	%
	Annualized Revenue 2/	$	472		$	837		$	1,595		$	646		$	3,550
	% of Total Industrial Annl Rev		1.6	%		2.8	%		5.4	%		2.2	%		12.0	%
Charlotte	RSF		0			0			0			0			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	—		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Greenville	RSF		0			0			0			16,081			16,081
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.3	%		0.3	%
	Annualized Revenue 2/	$	—		$	—		$	—		$	206		$	206
	% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.7	%		0.7	%
Kansas City	RSF		2,018			0			0			0			2,018
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	17		$	—		$	—		$	—		$	17
	% of Total Industrial Annl Rev		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Piedmont Triad	RSF		413,227			476,995			26,966			134,017			1,051,205
	% of Total Industrial RSF		6.6	%		7.6	%		0.4	%		2.1	%		16.7	%
	Annualized Revenue 2/	$	1,546		$	1,636		$	184		$	660		$	4,026
	% of Total Industrial Annl Rev		5.2	%		5.5	%		0.6	%		2.2	%		13.5	%
Raleigh	RSF		5,950			31,911			0			11,887			49,748
	% of Total Industrial RSF		0.1	%		0.5	%		0.0	%		0.2	%		0.8	%
	Annualized Revenue 2/	$	49		$	277		$	—		$	118		$	444
	% of Total Industrial Annl Rev		0.2	%		0.9	%		0.0	%		0.4	%		1.5	%
Total	RSF		557,889			679,434			298,919			273,607			1,809,849
	% of Total Industrial RSF		8.9	%		10.8	%		4.8	%		4.3	%		28.8	%
	Annualized Revenue 2/	$	2,084		$	2,750		$	1,779		$	1,630		$	8,243
	% of Total Industrial Annl Rev		7.1	%		9.2	%		6.0	%		5.5	%		27.7	%

1/ Includes 212,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue

2/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Highwoods Properties, Inc. Page 16

Office Lease Expirations by Market by Year 1/

Dollars in thousands

		2005 2/			2006			2007			2008			Thereafter
Atlanta	RSF		499,323			321,046			229,735			549,608			1,325,968
	% of Total Office RSF		2.5	%		1.6	%		1.2	%		2.8	%		6.6	%
	Annualized Revenue 3/	$	7,725		$	4,730		$	3,260		$	8,527		$	23,964
	% of Total Office Annl Rev		2.2	%		1.4	%		0.9	%		2.4	%		6.9	%
Charlotte	RSF		151,646			169,027			121,495			118,735			449,619
	% of Total Office RSF		0.8	%		0.8	%		0.6	%		0.6	%		2.3	%
	Annualized Revenue 3/	$	2,316		$	2,646		$	1,855		$	1,835		$	6,568
	% of Total Office Annl Rev		0.7	%		0.8	%		0.5	%		0.5	%		1.9	%
Columbia	RSF		30,789			59,586			58,951			63,170			42,482
	% of Total Office RSF		0.2	%		0.3	%		0.3	%		0.3	%		0.2	%
	Annualized Revenue 3/	$	565		$	1,110		$	1,046		$	1,089		$	522
	% of Total Office Annl Rev		0.2	%		0.3	%		0.3	%		0.3	%		0.1	%
Greenville	RSF		257,444			148,824			16,115			96,497			364,907
	% of Total Office RSF		1.3	%		0.7	%		0.1	%		0.5	%		1.8	%
	Annualized Revenue 3/	$	3,538		$	2,839		$	298		$	1,760		$	5,180
	% of Total Office Annl Rev		1.0	%		0.8	%		0.1	%		0.5	%		1.5	%
Kansas City	RSF		89,714			154,371			91,920			65,281			362,798
	% of Total Office RSF		0.4	%		0.8	%		0.5	%		0.3	%		1.8	%
	Annualized Revenue 3/	$	1,711		$	3,355		$	1,776		$	1,334		$	8,749
	% of Total Office Annl Rev		0.5	%		1.0	%		0.5	%		0.4	%		2.5	%
Memphis	RSF		110,633			97,750			105,564			179,866			486,004
	% of Total Office RSF		0.6	%		0.5	%		0.5	%		0.9	%		2.4	%
	Annualized Revenue 3/	$	2,010		$	1,839		$	2,026		$	3,663		$	8,458
	% of Total Office Annl Rev		0.6	%		0.5	%		0.6	%		1.0	%		2.4	%
Nashville	RSF		287,899			471,315			235,334			188,552			1,480,494
	% of Total Office RSF		1.4	%		2.4	%		1.2	%		0.9	%		7.4	%
	Annualized Revenue 3/	$	5,920		$	9,557		$	4,595		$	3,748		$	26,662
	% of Total Office Annl Rev		1.7	%		2.7	%		1.3	%		1.1	%		7.6	%
Orlando	RSF		9,154			6,465			20,571			9,240			171,379
	% of Total Office RSF		0.0	%		0.0	%		0.1	%		0.0	%		0.9	%
	Annualized Revenue 3/	$	161		$	170		$	370		$	186		$	3,312
	% of Total Office Annl Rev		0.0	%		0.0	%		0.1	%		0.1	%		0.9	%
Piedmont Triad	RSF		238,363			195,662			199,480			622,522			694,432
	% of Total Office RSF		1.2	%		1.0	%		1.0	%		3.1	%		3.5	%
	Annualized Revenue 3/	$	3,920		$	3,392		$	3,048		$	7,182		$	8,530
	% of Total Office Annl Rev		1.1	%		1.0	%		0.9	%		2.1	%		2.4	%
Raleigh	RSF		318,298			880,578			378,100			558,417			1,485,776
	% of Total Office RSF		1.6	%		4.4	%		1.9	%		2.8	%		7.4	%
	Annualized Revenue 3/	$	6,375		$	15,507		$	6,927		$	9,370		$	25,888
	% of Total Office Annl Rev		1.8	%		4.4	%		2.0	%		2.7	%		7.4	%
Richmond	RSF		330,777			250,744			302,754			212,855			648,423
	% of Total Office RSF		1.7	%		1.3	%		1.5	%		1.1	%		3.2	%
	Annualized Revenue 3/	$	6,026		$	5,037		$	4,944		$	4,007		$	10,220
	% of Total Office Annl Rev		1.7	%		1.4	%		1.4	%		1.1	%		2.9	%
Tampa	RSF		271,108			350,229			226,150			460,611			1,565,969
	% of Total Office RSF		1.4	%		1.8	%		1.1	%		2.3	%		7.8	%
	Annualized Revenue 3/	$	5,643		$	7,448		$	4,515		$	7,832		$	31,554
	% of Total Office Annl Rev		1.6	%		2.1	%		1.3	%		2.2	%		9.0	%
Other	RSF		1,095			6,166			12,707			19,449			21,770
	% of Total Office RSF		0.0	%		0.0	%		0.1	%		0.1	%		0.1	%
	Annualized Revenue 3/	$	5		$	157		$	322		$	519		$	479
	% of Total Office Annl Rev		0.0	%		0.0	%		0.1	%		0.1	%		0.1	%
Total	RSF		2,596,243			3,111,763			1,998,876			3,144,803			9,100,021
	% of Total Office RSF		13.0	%		15.6	%		10.0	%		15.8	%		45.6	%
	Annualized Revenue 3/	$	45,915		$	57,787		$	34,982		$	51,052		$	160,086
	% of Total Office Annl Rev		13.1	%		16.5	%		10.0	%		14.6	%		45.8	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Includes 104,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

3/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Highwoods Properties, Inc. Page 17

Industrial Lease Expirations by Market by Year

Dollars in thousands

		2005 1/			2006			2007			2008			Thereafter
Atlanta	RSF		579,175			345,292			665,857			272,037			1,102,191
	% of Total Industrial RSF		9.2	%		5.5	%		10.6	%		4.3	%		17.5	%
	Annualized Revenue 2/	$	2,903		$	2,077		$	3,488		$	1,259		$	4,331
	% of Total Industrial Annl Rev		9.8	%		7.0	%		11.7	%		4.2	%		14.6	%
Charlotte	RSF		0			0			0			0			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	—		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Greenville	RSF		0			16,081			0			5,350			8,470
	% of Total Industrial RSF		0.0	%		0.3	%		0.0	%		0.1	%		0.1	%
	Annualized Revenue 2/	$	—		$	206		$	—		$	58		$	91
	% of Total Industrial Annl Rev		0.0	%		0.7	%		0.0	%		0.2	%		0.3	%
Kansas City	RSF		2,018			0			0			0			1,756
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	17		$	—		$	—		$	—		$	19
	% of Total Industrial Annl Rev		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Piedmont Triad	RSF		917,188			674,363			424,555			396,215			810,333
	% of Total Industrial RSF		14.6	%		10.7	%		6.7	%		6.3	%		12.9	%
	Annualized Revenue 2/	$	3,365		$	2,846		$	2,697		$	1,654		$	4,085
	% of Total Industrial Annl Rev		11.3	%		9.6	%		9.1	%		5.6	%		13.7	%
Raleigh	RSF		37,861			11,887			0			15,188			7,139
	% of Total Industrial RSF		0.6	%		0.2	%		0.0	%		0.2	%		0.1	%
	Annualized Revenue 2/	$	325		$	118		$	—		$	162		$	66
	% of Total Industrial Annl Rev		1.1	%		0.4	%		0.0	%		0.5	%		0.2	%
Total	RSF		1,536,242			1,047,623			1,090,412			688,790			1,929,889
	% of Total Industrial RSF		24.4	%		16.6	%		17.3	%		10.9	%		30.7	%
	Annualized Revenue 2/	$	6,610		$	5,247		$	6,185		$	3,133		$	8,592
	% of Total Industrial Annl Rev		22.2	%		17.6	%		20.8	%		10.5	%		28.9	%

1/ Includes 212,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue

2/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Highwoods Properties, Inc. Page 18

Customer Diversification 1/

March 31, 2005

Dollars in thousands

Top 20 Customers

Customer	RSF	Annualized Revenue 2/		Percent of Annualized Revenue 2/		Average Remaining Lease Term in Years
Federal Government	863,609	$	17,042	4.10	%	6.5
AT&T 3/	537,529		10,065	2.42	%	3.9
Price Waterhouse Coopers	297,795		7,528	1.81	%	5.1
State Of Georgia	361,687		7,070	1.70	%	4.0
T-Mobile USA	205,394		4,853	1.17	%	4.2
IBM	188,763		3,978	0.96	%	1.1
Northern Telecom	246,000		3,651	0.88	%	2.9
Volvo	270,525		3,572	0.86	%	4.4
US Airways	295,046		3,403	0.82	%	2.7
Lockton Companies	132,718		3,339	0.80	%	9.9
BB&T	229,459		3,260	0.78	%	6.9
CHS Professional Services	170,524		3,042	0.73	%	1.9
Ford Motor Company	125,989		2,734	0.66	%	4.9
IKON	181,361		2,613	0.63	%	1.3
MCI	127,268		2,531	0.61	%	1.2
Hartford Insurance	116,010		2,508	0.60	%	1.6
Aspect Communications	116,692		2,354	0.57	%	1.7
Metropolitan Life	118,017		2,250	0.54	%	6.2
Jacob’s Engineering	228,345		2,236	0.54	%	11.2
Icon Clinical Research	99,163		2,114	0.51	%	7.2
	4,911,894	$	90,143	21.69	%	4.7

By Industry

Category	Percent of Annualized Revenue 2/
Professional, Scientific, and Technical Services	21.3	%
Insurance	10.3	%
Manufacturing	8.8	%
Finance/Banking	8.0	%
Telecommunication	7.8	%
Retail Trade	7.5	%
Government/Public Administration	6.5	%
Health Care and Social Assistance	6.2	%
Wholesale Trade	5.5	%
Transportation and Warehousing	3.4	%
Administrative and Support Services	3.2	%
Real Estate Rental and Leasing	3.1	%
Accommodation and Food Services	2.6	%
Other Services (except Public Administration)	2.4	%
Information	2.1	%
Educational Services	1.3	%
	100.0	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

3/ AT&T and SBC have received final approval on their plans to merge. SBC currently leases 5K square feet with $110K in associated annualized revenue.

Highwoods Properties, Inc. Page 19

Acquisition Activity

Dollars in thousands

Name	Market	Type 1/	Date Acquired	Square Footage	Total Cost
First quarter 2005:
None

Highwoods Properties, Inc. Page 20

Disposition Activity

Dollars in thousands

Name	Market	Type 1/	Date Sold	Square Footage	Gross Sales Price
First quarter 2005:
Northside	Tampa	O	02/24/05	85,700	$	9,000
531 Northridge Warehouse	Piedmont Triad	I	02/28/05	598,100
531 Northridge Office	Piedmont Triad	O	02/28/05	91,800
				689,900		18,656
3928 Westpoint Boulevard	Piedmont Triad	I	02/28/05	240,000		6,225
4300 Six Forks Road	Raleigh	O	03/31/05	163,300		27,318
				1,178,900	$	61,199

Depreciable Assets Contributed to Joint Ventures

	Market	Type 1/	Date Contributed	Square Footage	Gross Sales Price
First quarter 2005:
None

Highwoods Properties, Inc. Page 21

Development Activity

Dollars in thousands

Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 03/31/05		Pre-Leasing		Estimated Completion Date	Estimated Stabilization Date
In - Process
Office:
Center for Disease Control	Atlanta	O	109,000	$	21,375	$	2,420	100	%	4Q05	4Q05
Saxon	Richmond	O	112,000		14,829		6,645	100	%	3Q05	3Q05
FBI 2/	Tampa	O	137,000		31,090		14,950	100	%	4Q05	4Q05
Total or Weighted Average			358,000	$	67,294	$	24,015	100	%
Retail:3/
Griffith Road/Boutique Shops	Piedmont Triad	R	9,600	$	2,634	$	1,874	66	%	2Q05	2Q06
Total or Weighted Average			9,600	$	2,634	$	1,874	66	%
Total or Weighted Average			367,600	$	69,928	$	25,889	99	%
Completed Not Stabilized 4/
National Archives Record Administration	Atlanta	I	353,000	$	20,387	$	17,822	100	%	3Q04	4Q05
Total or Weighted Average			353,000	$	20,387	$	17,822	100	%
Grand Total or Weighed Average			720,600	$	90,315	$	43,711	100	%
Developed for Sale
	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 03/31/05		Pre-Sales		Estimated Completion Date
Grove Park Condominiums	Richmond	O	65,000	$	6,163	$	6,060	84	%	4Q04

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

2/ An approved 25,000 square feet expansion at an additional anticipated cost of $4.5 million is included. The related lease amendment is out for signature.

3/ Excludes a vacant building in Kansas City acquired in the first quarter for $4.1 million for potential future retail developmant or sale to a retail user.

4/ This property was 63% occupied as of March 31, 2005 and contributed $10,000 in Net Operating Income (Property Revenue - Property Expense) in Q1 2005.

Highwoods Properties, Inc. Page 22

Development Land

March, 2005

Dollars in thousands

		Developable Square Footage			Total Estimated Market Value
Market	Acres	Office	Retail	Industrial
On Balance Sheet:
Research Triangle	361	3,119,000	60,000	162,000	$	68,900
Atlanta	249	270,000	1,100,000	1,390,000		37,400
Piedmont Triad	117	787,000	37,000	1,190,000		16,400
Charlotte	73	1,151,000	—	—		12,600
Richmond	61	688,000	—	—		10,500
Orlando	49	862,000	—	—		15,600
Nashville	48	830,000	—	—		12,900
Kansas City 1/	46	550,000	91,000	—		12,300
Baltimore	45	771,000	—	—		14,300
Tampa	29	462,000	—	15,000		12,200
Memphis	22	288,000	—	—		4,200
Greenville	12	150,000	—	—		1,800
Jacksonville	9	80,000	—	—		1,900
Columbia	2	20,000	—	—		300
	1,123	10,028,000	1,288,000	2,757,000	$	221,300
Deferred or optioned:
Atlanta	25	—	500,000	—
	25	—	500,000	—
Total	1,148	10,028,000	1,788,000	2,757,000

1/ Includes 27 acres of residential land

Highwoods Properties, Inc. Page 23

Joint Ventures Long-Term Debt Detail

Dollars in thousands

Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 03/31/05
Dallas County Partners I, LP	50.0	%	American Express	7.0	%	Sep-09		3,514
Dallas County Partners I, LP	50.0	%	American Express	6.9	%	Jun-09		7,438
Dallas County Partners I, LP	50.0	%	John Hancock Life Insurance Co.	7.6	%	Mar-08		2,962
Dallas County Partners I, LP	50.0	%	State Farm	7.1	%	Oct-08		3,040
Dallas County Partners I, LP	50.0	%	State Farm	7.9	%	Sep-06		3,009
Dallas County Partners I, LP	50.0	%	State Farm	7.5	%	May-07		4,359
Dallas County Partners I, LP	50.0	%	Bank of America	5.7	%	Oct-07		3,987
Dallas County Partners I, LP	50.0	%	State Farm	7.5	%	Dec-07		5,065
Dallas County Partners I, LP	50.0	%	Thrivent	8.5	%	Aug-10		1,682
Dallas County Partners I, LP	50.0	%	Union Planters	6.3	%	Jun-14		3,664
Dallas County Partners I, LP	50.0	%	Union Planters	7.2	%	Jan-06		489
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.0	%	Jul-11		1,232
				7.1	%			40,441
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.2	%	Jun-13		20,892
Fountain Three	50.0	%	John Hancock Life Insurance Co.	7.8	%	Jan-08		6,019
Fountain Three	50.0	%	American Express	6.9	%	Jun-09		3,976
Fountain Three	50.0	%	Thrivent	8.0	%	Oct-10		3,748
Fountain Three	50.0	%	Thrivent	7.3	%	Apr-09		3,581
Fountain Three	50.0	%	Wells Fargo	8.2	%	May-08		2,023
Fountain Three	50.0	%	Lehman Brothers	8.0	%	Jul-09		3,617
Fountain Three	50.0	%	Thrivent	7.0	%	Sep-12		5,566
				7.5	%			28,530
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.0	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Bank of America	6.8	%	Sep-12		27,388
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.0	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.1	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Bank of America	5.7	%	Oct-07		4,041
RRHWoods, LLC	50.0	%	Union Planters	6.3	%	Jun-14		3,664
				3.8	%			69,593
Plaza Colonnade, LLC	50.0	%	Met Life	5.7	%	Jan-17		50,000
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.4	%	Mar-10		1,818
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	6.0	%	Mar-16		4,394
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.9	%	Mar-24		12,473
				5.8	%			68,685
4600 Madison Associates, LLC	12.5	%	State Farm	6.9	%	Apr-18		15,824
Board of Trade Investment Company	49.0	%	KC Board of Trade Clearing Corp.	7.8	%	Sep-07		517
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.8	%	Apr-11		65,936
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.7	%	May-12		58,126
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	7.0	%	Jul-10		9,473
Highwoods KC Orlando, LLC	40.0	%	Met Life	5.2	%	Jul-14		143,000
Highwoods - Markel Associates, LLC	50.0	%	Principal Life Insurance Company	5.8	%	Jan-14		39,285
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.8	%	Jun-14		16,500
Highwoods KC Glenridge Land	40.0	%	Transwestern	4.8	%	Feb-05		238
				6.1	%			348,899
				6.1	%		$	577,040
Highwoods’ Share of the above							$	244,570

Highwoods Properties, Inc. Page 24

Joint Ventures Portfolio Summary

As of March 31, 2005

Summary by Location:

				Percentage of Annualized Revenue - Highwoods’ Share Only 3/
Market	Rentable Square Feet 1/	Occupancy 2/		Office		Industrial		Retail		Multi-Family		Total
Des Moines	2,245,000	95.3	%	27.7	%	3.7	%	1.0	%	3.4	%	35.8	%
Orlando	1,684,000	89.9	%	24.8	%	—		—		—		24.8	%
Atlanta	835,000	93.3	%	15.7	%	—		—		—		15.7	%
Kansas City	428,000	86.3	%	8.4	%	—		—		—		8.4	%
Richmond	413,000	100.0	%	5.0	%	—		—		—		5.0	%
Piedmont Triad	364,000	100.0	%	3.8	%	—		—		—		3.8	%
Raleigh	455,000	99.3	%	3.5	%	—		—		—		3.5	%
Tampa	205,000	99.1	%	1.7	%	—		—		—		1.7	%
Charlotte	148,000	100.0	%	0.8	%	—		—		—		0.8	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%
Total	6,887,000	94.3	%	91.9	%	3.7	%	1.0	%	3.4	%	100.0	%

1/ Excludes Des Moines’ apartment units

2/ Excludes Des Moines’ apartment occupancy percentage of 93.5%

3/ Annualized Rental Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Highwoods Properties, Inc. Page 25

Joint Ventures Lease Expirations

March 31, 2005

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
2005	648,896	9.6	%	$	9,324	$	14.37	7.2	%
2006	655,354	9.7	%		12,363		18.86	9.6	%
2007	378,549	5.6	%		7,828		20.68	6.1	%
2008	1,299,233	19.1	%		21,989		16.92	17.2	%
2009	839,009	12.4	%		20,086		23.94	15.6	%
2010	368,712	5.4	%		7,254		19.67	5.6	%
2011	553,652	8.2	%		10,278		18.56	8.0	%
2012	354,359	5.2	%		7,353		20.75	5.7	%
2013	714,819	10.6	%		13,762		19.25	10.7	%
2014	368,000	5.4	%		7,961		21.63	6.2	%
2015 and thereafter	594,502	8.8	%		10,484		17.63	8.1	%
	6,775,085	100.0	%	$	128,682	$	18.99	100.0	%

1/ Annualized Revenue is March, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Highwoods Properties, Inc. Page 26

Joint Ventures Development

Dollars in thousands

Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 03/31/05		Pre-Leasing		Estimated Completion Date	Estimated Stabilization Date
Plaza Colonade, LLC 1/	50	%	Kansas City	285,000	$	71,500	$	68,536	77	%	4Q04	3Q05
Summit	50	%	Des Moines	35,000		3,559		3,437	75	%	3Q04	3Q05
Pinehurst	50	%	Des Moines	35,000		3,559		3,526	81	%	3Q04	3Q05
Sonoma	50	%	Des Moines	75,000		9,364		1,518	0	%	2Q05	2Q06
Total or Weighted Average				430,000	$	87,982	$	77,017	64	%
Highwoods’ Share of the above					$	43,991	$	38,509

1/ Includes $16.2 million in investment cost that has been funded by tax increment financing

Highwoods Properties, Inc. Page 27