EX-99.2 3 dex992.htm SUPPLEMENTAL INFORMATION Supplemental Information

Exhibit 99.2

 

LOGO

 

Supplemental Information

September 30, 2005

Supplemental Information

Table of Contents

September 30, 2005

 

Schedule    

    Page

Summary and Corporate Information

    i, ii and iii

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 Portfolio Summary

    24

Joint Ventures Lease Expirations

    25

Joint Ventures Development

    26

 

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 24 to 26 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.

       9/30/05

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

 

Terry L. Stevens

Vice President, Chief Financial Officer

 

Gene H. Anderson

Senior Vice President and Director

 

Michael F. Beale

Senior Vice President

 

Robert G. Cutlip

Senior Vice President

 

S. Hugh Esleeck

Treasurer

 

W. Brian Reames

Senior Vice President

 

Thomas S. Hill

Corporate Vice President, Leasing

 

Carman J. Liuzzo

Vice President, Investments

 

Kevin E. Penn

Chief Information Officer and Vice President, Strategy

 

Mack D. Pridgen III

Vice President, General Counsel and Secretary

 

Research Coverage

 

Deutsche Banc Securities

Lou Taylor - 212-469-4912

 

Green Street Advisors

Jim Sullivan - 949-640-8780

 

KeyBanc Capital Markets

Richard Moore - 216-443-2815

 

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

 

Wachovia Securities

Chris Haley - 443-263-6773

 

Highwoods Properties, Inc.

   ii   9/30/05

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

 

Memphis/Nashville/Columbia/Greenville

W. Brian Reames - Regional Manager

 

Nashville, TN

W. Brian Reames, Senior Vice President

 

Columbia, SC and Greenville, SC

W. Brian Reames, 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

Vice President, 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 Coordinator at:

Phone: 919-431-1521

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 September 30, 2005, the Company owned or had an interest in 454 in-service office, industrial and retail properties encompassing approximately 37.1 million square feet. Highwoods also owns 988 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.

LOGO

 

 

Highwoods Properties, Inc.

   iii   9/30/05

Capitalization

 

Dollars, shares, and units in thousands

 

     09/30/05
    06/30/05
    03/31/05
    12/31/04
    09/30/04

Long-Term Debt (see page 9 & 10):

    $ 1,440,784    $ 1,558,999    $ 1,582,010    $ 1,572,169    $ 1,600,627

Eastshore Debt 1/

      —        19,800      —        —        —  
    
  
  
  
  

Total debt per the balance sheet

      1,440,784      1,578,799      1,582,010      1,572,169      1,600,627

Finance Obligations:

    $ 34,746    $ 43,168    $ 63,096    $ 65,309    $ 64,754

Preferred Stock (at redemtion value):

                                   

Series A 8 5/8% Perpetual Preferred Stock

    $ 104,945    $ 104,945    $ 104,945    $ 104,945    $ 104,945

Series B 8% Perpetual Preferred Stock

      142,500      172,500      172,500      172,500      172,500

Series D 8% Perpetual Preferred Stock

      —        100,000      100,000      100,000      100,000
    
  
  
  
  

Total preferred stock

    $ 247,445    $ 377,445    $ 377,445    $ 377,445    $ 377,445
    
  
  
  
  

Shares and Units Outstanding:

                                   

Common stock outstanding

      54,030      54,037      54,053      53,813      53,713

Minority interest partnership units

      5,493      5,668      5,828      6,102      6,128
    
  
  
  
  

Total shares and units outstanding

      59,523      59,705      59,881      59,915      59,841
    
  
  
  
  

Stock price at period end

    $ 29.51    $ 29.76    $ 26.82    $ 27.70    $ 24.61

Market value of common equity

    $ 1,756,524    $ 1,776,821    $ 1,606,008    $ 1,659,646    $ 1,472,687
    
  
  
  
  

Total market capitalization with debt and obligations 3/

    $ 3,479,499    $ 3,756,433    $ 3,628,559    $ 3,674,569    $ 3,515,513
    
  
  
  
  
1/ This debt is the 100% obligation of an entity that Highwoods has no ownership interest in but has been consolidated according to GAAP.

These properties are no longer consolidated as of 9/30/05.

 

See pages 24 to 26 for information regarding Highwoods’ Joint Ventures

 

Highwoods Properties, Inc.

   Page 1   9/30/05

Long-Term Debt Summary

 

Dollars in thousands

 

     09/30/05
     06/30/05
     03/31/05
     12/31/04
     09/30/04
  

Balances Outstanding:

                                         

Secured:

                                         

Conventional fixed rate 1/

    $ 676,558     $ 709,595     $ 754,226     $ 755,596     $ 768,324  

Variable rate debt 2/

      46,226       84,404       67,784       66,573       50,803  
    
 
 
 
 

Secured total

    $ 722,784     $ 793,999     $ 822,010     $ 822,169     $ 819,127  
    
 
 
 
 

Unsecured:

                                         

Fixed rate bonds and notes

    $ 460,000     $ 460,000     $ 460,000     $ 460,000     $ 460,000  

Variable rate debt

      100,000       120,000       120,000       120,000       120,000  

Credit facility

      158,000       185,000       180,000       170,000       201,500  
    
 
 
 
 

Unsecured total

    $ 718,000     $ 765,000     $ 760,000     $ 750,000     $ 781,500  
    
 
 
 
 

Total

    $ 1,440,784     $ 1,558,999     $ 1,582,010     $ 1,572,169     $ 1,600,627  
    
 
 
 
 

Average Interest Rates:

                                         

Secured:

                                         

Conventional fixed rate

      7.0 %     7.1 %     7.1 %     7.2 %     7.2 %

Variable rate debt

      5.0 %     4.9 %     4.7 %     4.2 %     3.7 %
    
 
 
 
 

Secured total

      6.9 %     6.8 %     6.9 %     6.9 %     6.9 %
    
 
 
 
 

Unsecured:

                                         

Fixed rate bonds

      7.4 %     7.4 %     7.4 %     7.4 %     7.4 %

Variable rate debt

      5.4 %     4.7 %     3.5 %     3.5 %     3.0 %

Credit facility

      4.9 %     4.3 %     3.4 %     3.4 %     2.2 %
    
 
 
 
 

Unsecured total

      6.5 %     6.2 %     6.0 %     5.9 %     5.4 %
    
 
 
 
 

Average

      6.7 %     6.5 %     6.5 %     6.4 %     6.2 %
    
 
 
 
 

 

Maturity Schedule:

 

     Future Maturities of Debt
   

Total Debt 3/

   

Average

Interest Rate

  

Year

    Secured Debt 3/
    Unsecured Debt
      

2005

    $ —      $ 100,000    $ 100,000    5.4 %

2006 4/

      2,102      268,000      270,102    5.8 %

2007

      115,539      —        115,539    6.9 %

2008

      —        100,000      100,000    7.1 %

2009

      168,273      50,000      218,273    7.9 %

2010

      135,941      —        135,941    7.8 %

2011

      —        —        —      —    

2012

      22,800      —        22,800    6.1 %

2013

      272,867      —        272,867    5.9 %

2014

      —        —        —      —    

Thereafter

      5,262      200,000      205,262    7.5 %
    
  
  
  

Total maturities

    $ 722,784    $ 718,000    $ 1,440,784    6.7 %
    
  
  
  

 

Weighted average maturity = 5.1 years

1/ Includes a $22.8 million loan related to a consolidated 20% owned joint venture property (Harborview).
2/ Includes the construction loan related to a consolidated 50% owned joint venture property (Vinings).
3/ Excludes annual principal amortization
4/ The $268.0 million of unsecured debt maturities includes $158.0 million related to the credit facility which matures in 2006.

 

Highwoods Properties, Inc.

   Page 2   9/30/05

Long-Term Debt Detail

 

Dollars in thousands

 

Secured Loans

 

Lender    

    Rate
     Maturity
Date
    Loan
Balance
09/30/05

Monumental Life Ins. Co.

    7.8 %   Nov-09    $ 160,442

Northwestern Mutual

    6.0 %   Mar-13      140,405

Northwestern Mutual

    7.8 %   Nov-10      135,941

Massachusetts Mutual Life Ins. Co. 1/

    5.7 %   Dec-13      125,970

Northwestern Mutual

    8.2 %   Feb-07      63,872

PNC/Am South/Southtrust 2/

    5.1 %   Oct-07      38,271

Metropolitan Life Ins. Co. 3/

    6.1 %   Oct-12      22,800

PFL Life Ins. Co. 4/

    8.1 %   Jun-07      5,441

Massachusetts Mutual Life Ins. Co. 1/

    6.5 %   Dec-13      5,500

Ohio National

    8.0 %   Nov-17      5,262

Lutheran Brotherhood

    6.8 %   Apr-09      3,945

PFL Life Ins. Co. 4/ 5/

    6.2 %   Jun-07      3,544

USG Annuity

    7.7 %   Feb-06      2,102

Security Life of Denver

    8.9 %   Aug-09      2,023

Southland Life Ins. Co.

    8.8 %   Aug-09      1,864

American United Life

    9.0 %   Jun-13      991

Central Carolina Bank 3/ 6/

    3.8 %   Jan-08      4,411
    
      
     6.9 %        $ 722,784
    
      

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
    
      
     7.4 %        $ 460,000
    
      

Unsecured Loans

                  

Term Loan 2/

    5.4 %   Nov-05    $ 100,000

Line of Credit 2/

    4.9 %   Jul-06      158,000
    
      
     5.1 %        $ 258,000
    
      

Total Debt

    6.7 %        $ 1,440,784
    
      
1/ These two loans are secured by the same assets.
2/ Floating rate loan based on one month libor.
3/ Loan relates to a consolidated 20% owned joint venture property (Harborview).
4/ These two loans are secured by the same assets.
5/ Floating rate loan based on ninety day libor.
6/ Loan relates to a consolidated 50% owned joint venture property (Vinings).

 

Highwoods Properties, Inc.

   Page 3   9/30/05

Portfolio Summary - Wholly-Owned Properties Only 1/

 

(Rentable Square Feet)

 

     09/30/05
     06/30/05
     03/31/05
     12/31/04
     09/30/04
  
Office Industrial & Retail In-Service:                               

Office 2/

    21,432,000     23,849,000     24,254,000     24,628,000     25,151,000  

Industrial

    6,977,000     6,623,000     6,991,000     7,829,000     7,992,000  

Retail 3/

    1,417,000     1,417,000     1,409,000     1,409,000     1,410,000  
    
 
 
 
 

Total

    29,826,000     31,889,000     32,654,000     33,866,000     34,553,000  
    
 
 
 
 
Development Completed - Not Stabilized:                               

Office 2/

    —       —       —       —       —    

Industrial

    —       353,000     353,000     353,000     353,000  

Retail

    9,600     9,600     —       —       —    
    
 
 
 
 

Total

    9,600     362,600     353,000     353,000     353,000  
    
 
 
 
 
Development - In Process:                               

Office 2/

    780,000     710,000     358,000     358,000     333,000  

Industrial

    —       —       —       —       —    

Retail

    —       —       9,600     9,600     —    
    
 
 
 
 

Total

    780,000     710,000     367,600     367,600     333,000  
    
 
 
 
 
Total:                               

Office 2/

    22,212,000     24,559,000     24,612,000     24,986,000     25,484,000  

Industrial

    6,977,000     6,976,000     7,344,000     8,182,000     8,345,000  

Retail 3/

    1,426,600     1,426,600     1,418,600     1,418,600     1,410,000  
    
 
 
 
 

Total

    30,615,600     32,961,600     33,374,600     34,586,600     35,239,000  
    
 
 
 
 
Same Property                               

Office 2/

    21,092,000     21,092,000     21,092,000     21,092,000     21,092,000  

Industrial

    6,623,000     6,623,000     6,623,000     6,623,000     6,623,000  

Retail

    1,417,000     1,417,000     1,417,000     1,417,000     1,417,000  
    
 
 
 
 

Total

    29,132,000     29,132,000     29,132,000     29,132,000     29,132,000  
    
 
 
 
 
Percent Leased/Pre-Leased:                               
In-Service:                               

Office

    85.0 %   83.5 %   82.3 %   82.7 %   80.9 %

Industrial

    86.2 %   83.8 %   86.8 %   90.2 %   88.4 %

Retail

    96.4 %   96.0 %   95.5 %   97.3 %   94.5 %
    
 
 
 
 

Total

    85.8 %   84.1 %   83.8 %   85.0 %   83.2 %
    
 
 
 
 
Development Completed - Not Stabilized:                               

Office

    —       —       —       —       —    

Industrial

    —       100.0 %   100.0 %   100.0 %   100.0 %

Retail

    87.0 %   87.0 %   —       —       —    
    
 
 
 
 

Total

    87.0 %   100.0 %   100.0 %   100.0 %   100.0 %
    
 
 
 
 
Development - In Process:                               

Office

    57.1 %   60.8 %   100.0 %   100.0 %   100.0 %

Industrial

    —       —       —       —       0.0 %

Retail

    —       —       66.0 %   44.0 %   —    
    
 
 
 
 

Total

    57.1 %   61.1 %   99.1 %   98.5 %   100.0 %
    
 
 
 
 
Same Property                               

Office

    85.1 %   84.6 %   84.5 %   84.6 %   82.3 %

Industrial

    86.1 %   83.8 %   86.2 %   88.7 %   87.1 %

Retail

    96.4 %   96.0 %   95.1 %   96.8 %   94.1 %
    
 
 
 
 

Total

    85.8 %   85.0 %   85.4 %   86.1 %   83.9 %
    
 
 
 
 
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   9/30/05

Portfolio Summary

(Continued)

 

As of 9/30/2005

 

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

 

Market

   

Rentable

Square Feet

    

Occupancy

     Percentage of Annualized Revenue 2/
  
       Office
     Industrial
     Retail
     Total
  

Raleigh 3/

    4,358,000     85.5 %   16.1 %   0.2 %   —       16.3 %

Atlanta

    6,818,000     83.3 %   12.3 %   3.8 %   —       16.1 %

Kansas City

    2,316,000 4/   91.7 %   4.3 %   —       9.5 %   13.8 %

Nashville

    2,874,000     95.6 %   13.0 %   —       —       13.0 %

Tampa

    2,851,000     76.7 %   11.5 %   —       —       11.5 %

Piedmont Triad 5/

    5,589,000     89.1 %   7.0 %   3.6 %   —       10.6 %

Richmond

    1,955,000     93.1 %   8.3 %   —       —       8.3 %

Memphis

    1,216,000     83.8 %   4.8 %   —       —       4.8 %

Greenville

    1,105,000     71.2 %   2.7 %   0.1 %   —       2.8 %

Columbia

    426,000     62.1 %   1.2 %   —       —       1.2 %

Orlando

    218,000     100.0 %   1.2 %   —       —       1.2 %

Other

    100,000     56.3 %   0.4 %   —       —       0.4 %
    
 
 
 
 
 

Total

    29,826,000     85.8 %   82.8 %   7.7 %   9.5 %   100.0 %
    
 
 
 
 
 

 

Summary by Location, Including Joint Venture Properties:

 

Market

   

Rentable

Square Feet

    

Occupancy

     Percentage of Annualized Revenue 2/ 6/
  
       Office
     Industrial
     Retail
     Multi-
Family
     Total
  

Piedmont Triad

    5,953,000     89.7 %   6.6 %   3.2 %   —       —       9.8 %

Atlanta

    7,653,000     84.3 %   12.3 %   3.3 %   —       —       15.6 %

Raleigh

    4,813,000     86.8 %   14.8 %   0.1 %   —       —       14.9 %

Tampa

    3,056,000     78.3 %   10.4 %   —       —       —       10.4 %

Kansas City

    3,029,000 4/   89.7 %   4.8 %   0.0 %   8.4 %   —       13.2 %

Richmond

    2,368,000     94.3 %   8.0 %   —       —       —       8.0 %

Nashville

    2,874,000     95.6 %   11.6 %   —       —       —       11.6 %

Orlando

    1,903,000     92.6 %   4.1 %   —       —       —       4.1 %

Des Moines

    2,324,000     90.8 %   3.3 %   0.4 %   0.1 %   0.4 %   4.2 %

Greenville

    1,105,000     71.2 %   2.4 %   0.1 %   —       —       2.5 %

Memphis

    1,216,000     83.8 %   4.2 %   —       —       —       4.2 %

Columbia

    426,000     62.0 %   1.0 %   —       —       —       1.0 %

Other

    210,000     79.2 %   0.4 %   —       —       —       0.4 %

Charlotte

    148,000     100.0 %   0.1 %   0.0 %   —       —       0.1 %
    
 
 
 
 
 
 

Total

    37,078,000     87.2 %   84.0 %   7.1 %   8.5 %   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 September, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.
3/ Raleigh Market encompasses Raleigh, Durham, Cary, and Research Triangle metropolitan area.
4/ Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties
5/ Piedmont Triad Market encompasses Greensboro, Winston-Salem metropolitan area.
6/ Includes Highwoods’ share of Joint Venture Annualized Rental Revenue, see page 24

 

Highwoods Properties, Inc.

   Page 5   9/30/05

Portfolio Summary - Wholly-Owned Properties Only 1/

(Continued)

 

As of 9/30/2005

 

     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

    4,257,000    85.9 %   19.6 %   101,000    68.9 %   2.0 %

Nashville

    2,874,000    95.6 %   15.7 %   —      —       —    

Atlanta

    3,492,000    80.5 %   14.9 %   3,326,000    86.1 %   49.3 %

Tampa

    2,851,000    76.7 %   13.9 %   —      —       —    

Richmond

    1,955,000    93.1 %   10.1 %   —      —       —    

Piedmont Triad

    2,146,000    90.1 %   8.4 %   3,443,000    88.4 %   47.5 %

Memphis

    1,216,000    83.8 %   5.8 %   —      —       —    

Kansas City

    895,000    84.2 %   5.2 %   4,000    100.0 %   0.1 %

Greenville

    1,002,000    75.5 %   3.2 %   103,000    28.9 %   1.1 %

Columbia

    426,000    62.1 %   1.4 %   —      —       —    

Orlando

    218,000    100.0 %   1.4 %   —      —       —    

Other

    100,000    56.3 %   0.4 %   —      —       —    
    
  
 
 
  
 
     21,432,000    85.0 %   100.0 %   6,977,000    86.2 %   100.0 %
    
  
 
 
  
 

 

     Retail
  

Market

    Rentable
Square
Feet
    Occupancy
     Percentage
of Retail
Annualized
Revenue 2/
  

Kansas City 3/

    1,417,000    96.4 %   100.0 %
    
  
 
     1,417,000    96.4 %   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 September, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.
3/ Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties

 

Highwoods Properties, Inc.

   Page 6   9/30/05

Occupancy Trends - Office, Industrial and Retail Properties 1/

 

Market

   

Measurement

    09/30/05
     06/30/05
     03/31/05
     12/31/04
     09/30/04
  

Atlanta

   

Rentable Square Feet

Occupancy

Current Properties 2/3/

    6,818,000
83.3
83.0		  
%
%		   6,465,000
81.9
81.9		  
%
%		   6,826,000
83.0
82.3		  
%
%		   6,825,000
83.7
83.3		  
%
%		   6,825,000
81.3
80.9		  
%
%

Charlotte

   

Rentable Square Feet

Occupancy

Current Properties 2/

    —  
—  
—  		  
 
 		   1,492,000
66.9
—  		  
%
 		   1,492,000
67.7
—  		  
%
 		   1,492,000
72.9
—  		  
%
 		   1,655,000
74.6
—  		  
%
 

Columbia

   

Rentable Square Feet

Occupancy

Current Properties 2/

    426,000
62.0
62.0		  
%
%		   426,000
61.6
61.6		  
%
%		   426,000
59.9
59.9		  
%
%		   426,000
60.4
60.4		  
%
%		   426,000
57.5
57.5		  
%
%

Greenville

   

Rentable Square Feet

Occupancy

Current Properties 2/

    1,105,000
71.2
71.2		  
%
%		   1,105,000
75.5
75.5		  
%
%		   1,127,000
81.1
82.7		  
%
%		   1,127,000
80.5
82.1		  
%
%		   1,319,000
79.4
80.0		  
%
%

Kansas City 4/

   

Rentable Square Feet

Occupancy

Current Properties 2/

    2,315,000
91.7
91.7		  
%
%		   2,315,000
91.4
91.4		  
%
%		   2,308,000
91.6
91.3		  
%
%		   2,308,000
94.1
93.8		  
%
%		   2,308,000
92.4
92.1		  
%
%

Memphis

   

Rentable Square Feet

Occupancy

Current Properties 2/

    1,216,000
83.8
83.8		  
%
%		   1,216,000
82.3
82.3		  
%
%		   1,216,000
80.6
80.6		  
%
%		   1,216,000
83.2
83.2		  
%
%		   1,216,000
82.1
82.1		  
%
%

Nashville

   

Rentable Square Feet

Occupancy

Current Properties 2/

    2,874,000
95.6
95.6		  
%
%		   2,873,000
95.1
95.0		  
%
%		   2,870,000
92.8
92.7		  
%
%		   2,870,000
93.3
93.2		  
%
%		   2,870,000
93.4
93.3		  
%
%

Orlando

   

Rentable Square Feet

Occupancy

Current Properties 2/

    218,000
100.0
100.0		  
%
%		   218,000
96.8
96.8		  
%
%		   222,000
97.7
99.5		  
%
%		   222,000
93.2
94.9		  
%
%		   387,000
94.4
94.9		  
%
%

Piedmont Triad

   

Rentable Square Feet

Occupancy

Current Properties 2/

    5,589,000
89.1
89.1		  
%
%		   5,593,000
88.3
88.4		  
%
%		   5,722,000
90.4
91.0		  
%
%		   6,652,000
92.5
91.9		  
%
%		   6,652,000
91.9
91.2		  
%
%

Raleigh

   

Rentable Square Feet

Occupancy

Current Properties 2/

    4,358,000
85.5
85.5		  
%
%		   4,432,000
83.8
83.8		  
%
%		   4,432,000
83.3
83.2		  
%
%		   4,597,000
83.8
83.2		  
%
%		   4,739,000
81.1
80.1		  
%
%

Richmond

   

Rentable Square Feet

Occupancy

Current Properties 2/3/

    1,955,000
93.1
92.7		  
%
%		   1,841,000
93.2
93.2		  
%
%		   1,836,000
95.1
94.8		  
%
%		   1,835,000
94.1
93.7		  
%
%		   1,835,000
92.0
91.7		  
%
%

Tampa

   

Rentable Square Feet

Occupancy

Current Properties 2/

    2,851,000
76.7
76.7		  
%
%		   3,813,000
77.2
73.3		  
%
%		   4,077,000
70.5
71.1		  
%
%		   4,196,000
71.0
72.4		  
%
%		   4,221,000
66.1
65.5		  
%
%
         
 
 
 
 

Total 5/

   

Rentable Square Feet

Occupancy

    29,725,000
85.8		  
%		   31,789,000
84.1		  
%		   32,554,000
83.8		  
%		   33,766,000
85.0		  
%		   34,453,000
83.2		  
%
         
 
 
 
 
     Current Properties 2/3/    85.8 %   84.8 %   85.2 %   85.9 %   83.7 %
         
 
 
 
 
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 September 30, 2005 are included for each quarter shown.
3/ Excludes properties placed in service in Q3 05
4/ Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties
5/ Excludes a 100,000 square foot building located in South Florida

 

Highwoods Properties, Inc.

   Page 7   9/30/05

Leasing Statistics

 

Office Portfolio 1/

 

     Three Months Ended
  
     9/30/05 2/
     6/30/05 3/
     3/31/05 4/
     12/31/04 5/
     9/30/04 6/
     Average
  

Net Effective Rents Related to Re-Leased Space:

                                                 

Number of lease transactions (signed leases)

      180       223       188       206       219       203  

Rentable square footage leased

      1,069,468       1,155,513       1,235,718       1,101,291       1,368,577       1,186,113  

Square footage of Renewal Deals

      826,512       785,827       677,799       726,959       703,003       744,020  

Renewed square footage (% of total)

      77.3 %     68.0 %     54.9 %     66.0 %     51.4 %     62.7 %

New Leases square footage (% of total)

      22.7 %     32.0 %     45.1 %     34.0 %     48.6 %     37.3 %

Average per rentable square foot over the lease term:

                                                 

Base rent

    $ 17.71     $ 17.31     $ 16.20     $ 17.40     $ 16.68     $ 17.06  

Tenant improvements

      (1.10 )     (1.45 )     (0.94 )     (1.51 )     (1.27 )     (1.25 )

Leasing commissions 7/

      (0.57 )     (0.60 )     (0.66 )     (0.62 )     (0.64 )     (0.62 )

Rent concessions

      (0.27 )     (0.31 )     (0.41 )     (0.31 )     (0.37 )     (0.33 )
    
 
 
 
 
 

Effective rent

      15.77       14.95       14.19       14.96       14.40       14.86  

Expense stop

      (4.85 )     (5.33 )     (4.46 )     (5.61 )     (5.32 )     (5.11 )
    
 
 
 
 
 

Equivalent effective net rent

    $ 10.92     $ 9.62     $ 9.73     $ 9.35     $ 9.08     $ 9.75  
    
 
 
 
 
 

Average term in years

      3.8       4.1       5.7       5.0       3.7       4.4  
    
 
 
 
 
 

Capital Expenditures Related to Re-leased Space:

                                                 

Tenant Improvements:

                                                 

Total dollars committed under signed leases

    $ 5,996,413     $ 8,869,553     $ 5,644,830     $ 9,208,835     $ 9,455,102     $ 7,834,947  

Rentable square feet

      1,069,468       1,155,513       1,235,718       1,101,291       1,368,577       1,186,113  
    
 
 
 
 
 

Per rentable square foot

    $ 5.61     $ 7.68     $ 4.57     $ 8.36     $ 6.91     $ 6.61  
    
 
 
 
 
 

Leasing Commissions:

                                                 

Total dollars committed under signed leases 7/

    $ 2,398,139     $ 2,629,936     $ 4,109,601     $ 2,806,566     $ 2,969,620     $ 2,982,772  

Rentable square feet

      1,069,468       1,155,513       1,235,718       1,101,291       1,368,577       1,186,113  
    
 
 
 
 
 

Per rentable square foot

    $ 2.24     $ 2.28     $ 3.33     $ 2.55     $ 2.17     $ 2.51  
    
 
 
 
 
 

Total:

                                                 

Total dollars committed under signed leases

    $ 8,394,553     $ 11,499,489     $ 9,754,430     $ 12,015,400     $ 12,424,721     $ 10,817,719  

Rentable square feet

      1,069,468       1,155,513       1,235,718       1,101,291       1,368,577       1,186,113  
    
 
 
 
 
 

Per rentable square foot

    $ 7.85     $ 9.95     $ 7.89     $ 10.91     $ 9.08     $ 9.12  
    
 
 
 
 
 
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 115K square feet of leases that start in 2007 or later
3/ Includes 68K square feet of leases that start in 2007 or later
4/ Includes 89K square feet of leases that start in 2007 or later
5/ Includes 111K square feet of leases that start in 2007 or later
6/ Includes 128K square feet of leases that start in 2006 or later
7/ Excludes a full allocation of internal marketing cost

 

Highwoods Properties, Inc.

   Page 8   9/30/05

Leasing Statistics

 

Industrial Portfolio

 

     Three Months Ended
  
     9/30/05 1/
     6/30/05 2/
     3/31/05
     12/31/04
     9/30/04 3/
     Average
  

Net Effective Rents Related to Re-Leased Space:

                                                 

Number of lease transactions (signed leases)

      32       30       15       36       34       29  

Rentable square footage leased

      498,819       359,342       599,048       1,216,644       285,706       591,912  

Square footage of Renewal Deals

      349,405       224,203       579,069       875,445       246,797       454,984  

Renewed square footage (% of total)

      70.0 %     62.4 %     96.7 %     72.0 %     86.4 %     76.9 %

New Leases square footage (% of total)

      30.0 %     37.6 %     3.3 %     28.0 %     13.6 %     23.1 %

Average per rentable square foot over the lease term:

                                                 

Base rent

    $ 4.19     $ 5.16     $ 3.39     $ 3.49     $ 4.73     $ 4.19  

Tenant improvements

      (0.45 )     (0.51 )     (0.16 )     (0.13 )     (0.33 )     (0.32 )

Leasing commissions 4/

      (0.06 )     (0.12 )     (0.06 )     (0.06 )     (0.07 )     (0.07 )

Rent concessions

      (0.02 )     (0.16 )     (0.01 )     (0.03 )     (0.05 )     (0.05 )
    
 
 
 
 
 

Effective rent

      3.66       4.37       3.16       3.27       4.28       3.75  

Expense stop

      (0.38 )     (0.31 )     (0.08 )     (0.09 )     (0.54 )     (0.28 )
    
 
 
 
 
 

Equivalent effective net rent

    $ 3.28     $ 4.06     $ 3.08     $ 3.18     $ 3.74     $ 3.47  
    
 
 
 
 
 

Average term in years

      4.1       3.7       1.3       2.0       2.6       2.7  
    
 
 
 
 
 

Capital Expenditures Related to Re-leased Space:

                                                 

Tenant Improvements:

                                                 

Total dollars committed under signed leases

    $ 1,256,241     $ 917,527     $ 361,044     $ 756,077     $ 307,534     $ 719,684  

Rentable square feet

      498,819       359,342       599,048       1,216,644       285,706       591,912  
    
 
 
 
 
 

Per rentable square foot

    $ 2.52     $ 2.55     $ 0.60     $ 0.62     $ 1.08     $ 1.22  
    
 
 
 
 
 

Leasing Commissions:

                                                 

Total dollars committed under signed leases 4/

    $ 185,669     $ 172,719     $ 63,473     $ 226,000     $ 64,714     $ 142,515  

Rentable square feet

      498,819       359,342       599,048       1,216,644       285,706       591,912  
    
 
 
 
 
 

Per rentable square foot

    $ 0.37     $ 0.48     $ 0.11     $ 0.19     $ 0.23     $ 0.24  
    
 
 
 
 
 

Total:

                                                 

Total dollars committed under signed leases

    $ 1,441,910     $ 1,090,245     $ 424,517     $ 982,077     $ 372,247     $ 862,199  

Rentable square feet

      498,819       359,342       599,048       1,216,644       285,706       591,912  
    
 
 
 
 
 

Per rentable square foot

    $ 2.89     $ 3.03     $ 0.71     $ 0.81     $ 1.30     $ 1.46  
    
 
 
 
 
 
1/ Includes 113K square feet of leases that start in 2007 or later
2/ Includes 4K square feet of leases that start in 2007 or later
3/ Includes 74K square feet of leases that start in 2006 or later
4/ Excludes a full allocation of internal marketing cost

 

Highwoods Properties, Inc.

   Page 9   9/30/05

Leasing Statistics

 

Retail Portfolio

 

     Three Months Ended
  
     9/30/05
     6/30/05 1/
     3/31/05
     12/31/04
     9/30/04 2/
     Average
  

Net Effective Rents Related to Re-Leased Space:

 

                                        

Number of lease transactions (signed leases)

      7       10       4       23       18       12  

Rentable square footage leased

      10,721       39,723       10,993       106,629       34,300       40,473  

Square footage of Renewal Deals

      6,502       36,118       1,750       78,579       15,530       27,696  

Renewed square footage (% of total)

      60.6 %     90.9 %     15.9 %     73.7 %     45.3 %     68.4 %

New Leases square footage (% of total)

      39.4 %     9.1 %     84.1 %     26.3 %     54.7 %     31.6 %

Average per rentable square foot over the lease term:

                                                 

Base rent

    $ 17.61     $ 21.49     $ 26.09     $ 17.03     $ 26.45     $ 21.73  

Tenant improvements

      (1.21 )     (1.64 )     (2.65 )     (1.73 )     (1.84 )     (1.81 )

Leasing commissions 3/

      (1.11 )     (0.40 )     (0.88 )     (0.26 )     (0.56 )     (0.64 )

Rent concessions

      (0.08 )     0.00       0.00       0.00       (0.04 )     (0.02 )
    
 
 
 
 
 

Effective rent

      15.21       19.45       22.56       15.04       24.01       19.26  

Expense stop

      0.00       0.00       0.00       0.00       0.00       0.00  
    
 
 
 
 
 

Equivalent effective net rent

    $ 15.21     $ 19.45     $ 22.56     $ 15.04     $ 24.01     $ 19.26  
    
 
 
 
 
 

Average term in years

      4.3       8.7       9.3       8.3       5.7       7.3  
    
 
 
 
 
 

Capital Expenditures Related to Re-leased Space:

                                                 

Tenant Improvements:

                                                 

Total dollars committed under signed leases

    $ 62,187     $ 695,152     $ 308,098     $ 2,137,327     $ 403,309     $ 721,215  

Rentable square feet

      10,721       39,723       10,993       106,629       34,300       40,473  
    
 
 
 
 
 

Per rentable square foot

    $ 5.80     $ 17.50     $ 28.03     $ 20.04     $ 11.76     $ 17.82  
    
 
 
 
 
 

Leasing Commissions:

                                                 

Total dollars committed under signed leases 3/

    $ 12,026     $ 43,041     $ 3,778     $ 220,528     $ 86,458     $ 73,166  

Rentable square feet

      10,721       39,723       10,993       106,629       34,300       40,473  
    
 
 
 
 
 

Per rentable square foot

    $ 1.12     $ 1.08     $ 0.34     $ 2.07     $ 2.52     $ 1.81  
    
 
 
 
 
 

Total:

                                                 

Total dollars committed under signed leases

    $ 74,213     $ 738,193     $ 311,876     $ 2,357,855     $ 489,767     $ 794,381  

Rentable square feet

      10,721       39,723       10,993       106,629       34,300       40,473  
    
 
 
 
 
 

Per rentable square foot

    $ 6.92     $ 18.58     $ 28.37     $ 22.11     $ 14.28     $ 19.63  
    
 
 
 
 
 
1/ Includes 16K square feet of leases that start in 2007 or later
2/ Includes 6K square feet of leases that start in 2006 or later
3/ Excludes a full allocation of internal marketing cost

 

Highwoods Properties, Inc.

   Page 10   9/30/05

Leasing Statistics by Market

 

For the Three Months ended September 30, 2005

 

Office Portfolio 1/

 

Market

    Rentable
Square Feet
Leased
    Average
Term
    GAAP
Rental
Rate
    TI’s
Per SF
   

Lease
Commissions

Per SF 2/

Atlanta

    302,736    2.3    $ 16.50    $ 2.55    $ 0.48

Raleigh

    202,649    4.4      17.72      5.68      2.31

Piedmont Triad

    168,941    3.7      15.58      2.43      2.50

Tampa

    118,982    5.1      16.83      13.33      4.41

Memphis

    93,278    3.0      19.15      6.45      0.73

Richmond

    62,313    4.8      20.12      8.91      2.46

Nashville

    45,811    3.9      19.77      3.56      1.83

Kansas City

    38,763    5.9      24.86      7.44      4.97

Greenville

    28,606    6.0      14.35      15.40      6.57

Columbia

    7,389    4.6      15.00      3.88      2.36
    
  
  
  
  
     1,069,468    3.8    $ 17.44    $ 5.61    $ 2.24
    
  
  
  
  

Industrial Portfolio

                               

Market

    Rentable
Square Feet
Leased
    Average
Term
    GAAP
Rental
Rate
    TI’s
Per SF
   

Lease
Commissions

Per SF 2/

Atlanta

    293,881    5.6    $ 3.85    $ 3.29      0.49

Piedmont Triad

    193,233    1.9      4.54      1.40    $ 0.14

Raleigh

    11,705    2.5      5.96      1.74      0.38
    
  
  
  
  
     498,819    4.1    $ 4.17    $ 2.52    $ 0.37
    
  
  
  
  

Retail Portfolio

                               

Market

    Rentable
Square Feet
Leased
    Average
Term
    GAAP
Rental
Rate
    TI’s
Per SF
    Lease
Commissions
Per SF

Kansas City

    10,721    4.3    $ 17.53    $ 5.80    $ 1.12
    
  
  
  
  
     10,721    4.3    $ 17.53    $ 5.80    $ 1.12
    
  
  
  
  
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   9/30/05

Rental Rate Comparisons by Market

 

For the Three Months ended September 30, 2005

 

Office Portfolio 1/

 

Market

    Rentable
Square Feet
Leased
    Current
Rent
    Previous
Rent
    Percentage
Change
Rent
  

Atlanta

    302,736    $ 16.50    $ 17.67    -6.6 %

Raleigh

    202,649      17.72      19.73    -10.2 %

Piedmont Triad

    168,941      15.58      14.99    3.9 %

Tampa

    118,982      16.83      16.80    0.2 %

Memphis

    93,278      19.15      19.44    -1.5 %

Richmond

    62,313      20.12      20.07    0.2 %

Nashville

    45,811      19.77      18.94    4.4 %

Kansas City

    38,763      24.86      21.91    13.5 %

Greenville

    28,606      14.35      12.43    15.5 %

Columbia

    7,389      15.00      16.79    -10.7 %
    
  
  
  

GAAP Rent Growth

    1,069,468    $ 17.44    $ 17.90    -2.6 %
    
  
  
  

Cash Rent Growth

    1,069,468    $ 17.25    $ 18.50    -6.8 %
    
  
  
  
Industrial Portfolio                          

Market

   

Rentable

Square Feet
Leased

    Current
Rent
    Previous
Rent
   

Percentage

Change
Rent

  

Atlanta

    293,881    $ 3.85    $ 3.57    7.8 %

Piedmont Triad

    193,233      4.54      5.15    -11.8 %

Raleigh

    11,705      5.96      8.74    -31.8 %
    
  
  
  

GAAP Rent Growth

    498,819    $ 4.17    $ 4.29    -2.7 %
    
  
  
  

Cash Rent Growth

    498,819    $ 4.12    $ 4.58    -10.0 %
    
  
  
  
Retail Portfolio                          

Market

    Rentable
Square Feet
Leased
    Current
Rent
    Previous
Rent
    Percentage
Change
Rent
  

Kansas City

    10,721    $ 17.53    $ 16.06    9.2 %
    
  
  
  

GAAP Rent Growth

    10,721    $ 17.53    $ 16.06    9.2 %
    
  
  
  

Cash Rent Growth

    10,721    $ 21.18    $ 21.05    0.6 %
    
  
  
  
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   9/30/05

Lease Expirations

 

September 30, 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/

    794,863    4.4 %   $ 15,763    $ 19.83    4.9 %

2006

    2,752,158    15.1 %     50,805      18.46    15.7 %

2007

    1,852,512    10.2 %     32,470      17.53    10.0 %

2008

    2,970,923    16.3 %     49,464      16.65    15.3 %

2009

    2,539,491    13.9 %     46,212      18.20    14.3 %

2010

    2,257,033    12.4 %     40,847      18.10    12.6 %

2011

    1,693,399    9.3 %     31,968      18.88    9.9 %

2012

    963,090    5.3 %     18,779      19.50    5.8 %

2013

    513,992    2.8 %     9,288      18.07    2.9 %

2014

    419,428    2.3 %     8,249      19.67    2.5 %

2015 and thereafter

    1,466,224    8.0 %     19,776      13.49    6.1 %
    
  
 
  
  
     18,223,113    100.0 %   $ 323,621    $ 17.76    100.0 %
    
  
 
  
  
Industrial:                                

2005 4/

    728,643    12.1 %   $ 3,609    $ 4.95    12.1 %

2006

    1,430,255    23.8 %     6,248      4.37    20.8 %

2007

    1,059,493    17.6 %     6,245      5.89    20.9 %

2008

    774,959    12.9 %     3,578      4.62    12.0 %

2009

    682,606    11.4 %     4,072      5.97    13.6 %

2010

    418,362    7.0 %     2,037      4.87    6.8 %

2011

    174,401    2.9 %     788      4.52    2.6 %

2012

    198,536    3.3 %     975      4.91    3.3 %

2013

    102,384    1.7 %     637      6.22    2.1 %

2014

    206,731    3.4 %     835      4.04    2.8 %

2015 and thereafter

    235,432    3.9 %     894      3.80    3.0 %
    
  
 
  
  
     6,011,802    100.0 %   $ 29,918    $ 4.98    100.0 %
    
  
 
  
  
1/ Annualized Revenue is September, 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 208,000 square feet of leases that are on a month to month basis or 0.9% of total annualized revenue
4/ Includes 143,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

 

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

 

Highwoods Properties, Inc.

   Page 13   9/30/05

Lease Expirations

 

September 30, 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/

    4,243    0.3 %   $ 20    $ 4.71    0.1 %

2006

    103,699    7.5 %     2,539      24.48    6.8 %

2007

    85,689    6.2 %     2,530      29.53    6.7 %

2008

    129,441    9.4 %     3,650      28.20    9.7 %

2009

    178,477    13.0 %     4,495      25.19    11.9 %

2010

    100,472    7.3 %     3,433      34.17    9.1 %

2011

    57,974    4.2 %     1,807      31.17    4.8 %

2012

    132,034    9.6 %     3,893      29.48    10.4 %

2013

    109,674    8.0 %     2,843      25.92    7.6 %

2014

    80,159    5.8 %     1,453      18.13    3.9 %

2015 and thereafter

    392,705    28.7 %     10,941      27.86    29.0 %
    
  
 
  
  
     1,374,567    100.0 %   $ 37,604    $ 27.36    100.0 %
    
  
 
  
  
Total:                                

2005 3/4/

    1,527,749    6.0 %   $ 19,392    $ 12.69    5.0 %

2006

    4,286,112    16.7 %     59,592      13.90    15.3 %

2007

    2,997,694    11.7 %     41,245      13.76    10.5 %

2008

    3,875,323    15.1 %     56,692      14.63    14.5 %

2009

    3,400,574    13.3 %     54,779      16.11    14.0 %

2010

    2,775,867    10.8 %     46,317      16.69    11.8 %

2011

    1,925,774    7.5 %     34,563      17.95    8.8 %

2012

    1,293,660    5.1 %     23,647      18.28    6.0 %

2013

    726,050    2.8 %     12,768      17.59    3.3 %

2014

    706,318    2.8 %     10,537      14.92    2.7 %

2015 and thereafter

    2,094,361    8.2 %     31,611      15.09    8.1 %
    
  
 
  
  
     25,609,482    100.0 %   $ 391,143    $ 15.27    100.0 %
    
  
 
  
  
1/ Annualized Revenue is September, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.
2/ Includes 4,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue
3/ Includes 355,000 square feet of leases that are on a month to month basis or 1.0% 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 expiration date.

 

Highwoods Properties, Inc.

   Page 14   9/30/05

Office Lease Expirations by Market by Quarter 1/

 

Dollars in thousands

 

         Three Months Ended
        
         9/30/05 /2
     12/31/05
     03/31/06
     06/30/06
     Total
  

Atlanta

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 163,640
0.9
3,554
1.1		  
%
 
%		    
 
$
 		 145,050
0.8
1,911
0.6		  
%
 
%		    
 
$
 		 57,301
0.3
887
0.3		  
%
 
%		    
 
$
 		 171,081
0.9
2,752
0.9		  
%
 
%		    
 
$
 		 537,072
2.9
9,104
2.8		  
%
 
%

Columbia

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 21,397
0.1
503
0.2		  
%
 
%		    
 
$
 		 1,077
0.0
18
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 17,391
0.1
369
0.1		  
%
 
%		    
 
$
 		 39,865
0.2
890
0.3		  
%
 
%

Greenville

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 1,160
0.0
21
0.0		  
%
 
%		    
 
$
 		 29,998
0.2
589
0.2		  
%
 
%		    
 
$
 		 119,623
0.7
2,248
0.7		  
%
 
%		    
 
$
 		 10,699
0.1
221
0.1		  
%
 
%		    
 
$
 		 161,480
0.9
3,079
1.0		  
%
 
%

Kansas City

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 59,074
0.3
1,182
0.4		  
%
 
%		    
 
$
 		 52,871
0.3
1,134
0.4		  
%
 
%		    
 
$
 		 18,549
0.1
373
0.1		  
%
 
%		    
 
$
 		 22,735
0.1
497
0.2		  
%
 
%		    
 
$
 		 153,229
0.8
3,186
1.0		  
%
 
%

Memphis

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 10,404
0.1
185
0.1		  
%
 
%		    
 
$
 		 41,602
0.2
826
0.3		  
%
 
%		    
 
$
 		 25,086
0.1
430
0.1		  
%
 
%		    
 
$
 		 16,128
0.1
312
0.1		  
%
 
%		    
 
$
 		 93,220
0.5
1,753
0.5		  
%
 
%

Nashville

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 128,259
0.7
2,558
0.8		  
%
 
%		    
 
$
 		 155,870
0.9
3,063
0.9		  
%
 
%		    
 
$
 		 50,911
0.3
1,061
0.3		  
%
 
%		    
 
$
 		 65,882
0.4
1,400
0.4		  
%
 
%		    
 
$
 		 400,922
2.2
8,082
2.5		  
%
 
%

Orlando

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%

Piedmont Triad

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 95,109
0.5
1,380
0.4		  
%
 
%		    
 
$
 		 80,856
0.4
1,412
0.4		  
%
 
%		    
 
$
 		 58,389
0.3
1,043
0.3		  
%
 
%		    
 
$
 		 57,095
0.3
1,002
0.3		  
%
 
%		    
 
$
 		 291,449
1.6
4,837
1.5		  
%
 
%

Raleigh

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 167,299
0.9
3,448
1.1		  
%
 
%		    
 
$
 		 220,681
1.2
4,360
1.3		  
%
 
%		    
 
$
 		 81,902
0.4
1,726
0.5		  
%
 
%		    
 
$
 		 259,236
1.4
3,261
1.0		  
%
 
%		    
 
$
 		 729,118
4.0
12,795
4.0		  
%
 
%

Richmond

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 80,848
0.4
1,205
0.4		  
%
 
%		    
 
$
 		 85,774
0.5
1,450
0.4		  
%
 
%		    
 
$
 		 22,510
0.1
410
0.1		  
%
 
%		    
 
$
 		 39,673
0.2
1,002
0.3		  
%
 
%		    
 
$
 		 228,805
1.3
4,067
1.3		  
%
 
%

Tampa

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 68,567
0.4
1,740
0.5		  
%
 
%		    
 
$
 		 53,068
0.3
1,093
0.3		  
%
 
%		    
 
$
 		 76,033
0.4
1,516
0.5		  
%
 
%		    
 
$
 		 8,978
0.0
179
0.1		  
%
 
%		    
 
$
 		 206,646
1.1
4,528
1.4		  
%
 
%

Other

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 1,095
0.0
5
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 1,095
0.0
5
0.0		  
%
 
%

Total

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 796,852
4.3
15,781
4.9		  
%
 
%		    
 
$
 		 866,847
4.8
15,856
4.9		  
%
 
%		    
 
$
 		 510,304
2.8
9,694
3.0		  
%
 
%		    
 
$
 		 668,898
3.7
10,995
3.4		  
%
 
%		    
 
$
 		 2,842,901
15.6
52,326
16.2		  
%
 
%
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 208,000 square feet of leases that are on a month to month basis or 0.9% of total annualized revenue
3/ Annualized Revenue is September, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

 

Highwoods Properties, Inc.

   Page 15   9/30/05

Industrial Lease Expirations by Market by Quarter

 

Dollars in thousands

 

         Three Months Ended
    

Total

  
         9/30/05 /1
     12/31/05
     03/31/06
     06/30/06
    

Atlanta

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 594,875
9.9
3,027
10.2		  
%
 
%		    
 
$
 		 122,812
2.0
656
2.2		  
%
 
%		    
 
$
 		 34,091
0.6
236
0.8		  
%
 
%		    
 
$
 		 93,720
1.6
444
1.5		  
%
 
%		    
 
$
 		 845,498
14.1
4,363
14.6		  
%
 
%

Greenville

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 16,081
0.3
206
0.7		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 16,081
0.3
206
0.7		  
%
 
%

Kansas City

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 2,018
0.0
17
0.1		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 2,018
0.0
17
0.1		  
%
 
%

Piedmont Triad

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 120,608
2.0
468
1.6		  
%
 
%		    
 
$
 		 529,737
8.8
1,840
6.2		  
%
 
%		    
 
$
 		 225,924
3.8
686
2.3		  
%
 
%		    
 
$
 		 262,102
4.4
1,171
3.9		  
%
 
%		    
 
$
 		 1,138,371
18.9
4,165
13.9		  
%
 
%

Raleigh

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 13,160
0.2
114
0.4		  
%
 
%		    
 
$
 		 9,548
0.2
93
0.3		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 22,708
0.4
207
0.7		  
%
 
%

Total

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 728,643
12.1
3,609
12.1		  
%
 
%		    
 
$
 		 680,196
11.3
2,812
9.4		  
%
 
%		    
 
$
 		 260,015
4.3
922
3.1		  
%
 
%		    
 
$
 		 355,822
5.9
1,615
5.4		  
%
 
%		    
 
$
 		 2,024,676
33.7
8,958
30.0		  
%
 
%
1/ Includes 143,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue
2/ Annualized Revenue is September, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

 

Highwoods Properties, Inc.

   Page 16   9/30/05

Office Lease Expirations by Market by Year 1/

 

Dollars in thousands

 

         2005 2/
     2006
     2007
     2008
     Thereafter
  

Atlanta

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 161,651
0.9
3,536
1.1		  
%
 
%		    
 
$
 		 414,024
2.3
6,252
1.9		  
%
 
%		    
 
$
 		 264,823
1.5
3,681
1.1		  
%
 
%		    
 
$
 		 573,366
3.1
8,850
2.7		  
%
 
%		    
 
$
 		 1,397,436
7.7
25,892
8.0		  
%
 
%

Columbia

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 21,397
0.1
503
0.2		  
%
 
%		    
 
$
 		 61,836
0.3
1,173
0.4		  
%
 
%		    
 
$
 		 61,766
0.3
1,048
0.3		  
%
 
%		    
 
$
 		 63,170
0.3
1,102
0.3		  
%
 
%		    
 
$
 		 56,114
0.3
700
0.2		  
%
 
%

Greenville

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 1,160
0.0
21
0.0		  
%
 
%		    
 
$
 		 188,865
1.0
3,593
1.1		  
%
 
%		    
 
$
 		 16,115
0.1
302
0.1		  
%
 
%		    
 
$
 		 99,410
0.5
1,824
0.6		  
%
 
%		    
 
$
 		 451,237
2.5
4,696
1.5		  
%
 
%

Kansas City

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 59,074
0.3
1,182
0.4		  
%
 
%		    
 
$
 		 132,238
0.7
2,806
0.9		  
%
 
%		    
 
$
 		 94,911
0.5
1,976
0.6		  
%
 
%		    
 
$
 		 78,678
0.4
1,598
0.5		  
%
 
%		    
 
$
 		 388,577
2.1
9,386
2.9		  
%
 
%

Memphis

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 10,404
0.1
185
0.1		  
%
 
%		    
 
$
 		 89,993
0.5
1,706
0.5		  
%
 
%		    
 
$
 		 109,136
0.6
2,103
0.6		  
%
 
%		    
 
$
 		 179,883
1.0
3,571
1.1		  
%
 
%		    
 
$
 		 629,076
3.5
11,216
3.5		  
%
 
%

Nashville

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 128,259
0.7
2,558
0.8		  
%
 
%		    
 
$
 		 446,187
2.4
9,009
2.8		  
%
 
%		    
 
$
 		 203,191
1.1
3,909
1.2		  
%
 
%		    
 
$
 		 238,629
1.3
4,710
1.5		  
%
 
%		    
 
$
 		 1,732,146
9.5
30,718
9.5		  
%
 
%

Orlando

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 6,465
0.0
175
0.1		  
%
 
%		    
 
$
 		 21,694
0.1
447
0.1		  
%
 
%		    
 
$
 		 9,240
0.1
199
0.1		  
%
 
%		    
 
$
 		 180,533
1.0
3,794
1.2		  
%
 
%

Piedmont Triad

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 95,109
0.5
1,380
0.4		  
%
 
%		    
 
$
 		 230,240
1.3
3,994
1.2		  
%
 
%		    
 
$
 		 196,089
1.1
2,969
0.9		  
%
 
%		    
 
$
 		 634,579
3.5
7,974
2.5		  
%
 
%		    
 
$
 		 778,257
4.3
10,907
3.4		  
%
 
%

Raleigh

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 167,299
0.9
3,447
1.1		  
%
 
%		    
 
$
 		 620,317
3.4
10,317
3.2		  
%
 
%		    
 
$
 		 414,833
2.3
7,333
2.3		  
%
 
%		    
 
$
 		 581,236
3.2
9,740
3.0		  
%
 
%		    
 
$
 		 1,871,880
10.3
32,127
9.9		  
%
 
%

Richmond

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 80,848
0.4
1,205
0.4		  
%
 
%		    
 
$
 		 267,491
1.5
5,094
1.6		  
%
 
%		    
 
$
 		 282,864
1.6
4,663
1.4		  
%
 
%		    
 
$
 		 282,651
1.6
5,320
1.6		  
%
 
%		    
 
$
 		 905,885
5.0
16,319
5.0		  
%
 
%

Tampa

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 68,567
0.4
1,740
0.5		  
%
 
%		    
 
$
 		 294,502
1.6
6,686
2.1		  
%
 
%		    
 
$
 		 173,253
1.0
3,686
1.1		  
%
 
%		    
 
$
 		 210,632
1.2
4,021
1.2		  
%
 
%		    
 
$
 		 1,439,746
7.9
28,877
8.9		  
%
 
%

Other

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 1,095
0.0
5
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 13,837
0.1
355
0.1		  
%
 
%		    
 
$
 		 19,449
0.1
555
0.2		  
%
 
%		    
 
$
 		 21,770
0.1
483
0.1		  
%
 
%

Total

  

RSF

% of Total Office RSF

Annualized Revenue 3/

% of Total Office Annl Rev

     
 
$
 		 794,863
4.4
15,762
4.9		  
%
 
%		    
 
$
 		 2,752,158
15.1
50,805
15.7		  
%
 
%		    
 
$
 		 1,852,512
10.2
32,472
10.0		  
%
 
%		    
 
$
 		 2,970,923
16.3
49,464
15.3		  
%
 
%		    
 
$
 		 9,852,657
54.1
175,115
54.1		  
%
 
%
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 208,000 square feet of leases that are on a month to month basis or 0.9% of total annualized revenue
3/ Annualized Revenue is September, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

 

Highwoods Properties, Inc.

   Page 17   9/30/05

Industrial Lease Expirations by Market by Year

 

Dollars in thousands

 

         2005 1/
     2006
     2007
     2008
     Thereafter
  

Atlanta

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 594,875
9.9
3,026
10.1		  
%
 
%		    
 
$
 		 330,863
5.5
1,911
6.4		  
%
 
%		    
 
$
 		 593,583
9.9
3,214
10.7		  
%
 
%		    
 
$
 		 347,988
5.8
1,609
5.4		  
%
 
%		    
 
$
 		 997,676
16.6
4,994
16.7		  
%
 
%

Greenville

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 16,081
0.3
206
0.7		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 5,350
0.1
59
0.2		  
%
 
%		    
 
$
 		 8,470
0.1
61
0.2		  
%
 
%

Kansas City

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 2,018
0.0
17
0.1		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 0
0.0
—  
0.0		  
%
 
%		    
 
$
 		 1,756
0.0
19
0.1		  
%
 
%

Piedmont Triad

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 120,608
2.0
468
1.6		  
%
 
%		    
 
$
 		 1,071,745
17.8
4,021
13.4		  
%
 
%		    
 
$
 		 462,360
7.7
2,994
10.0		  
%
 
%		    
 
$
 		 406,433
6.8
1,746
5.8		  
%
 
%		    
 
$
 		 982,321
16.3
4,969
16.6		  
%
 
%

Raleigh

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 13,160
0.2
114
0.4		  
%
 
%		    
 
$
 		 9,548
0.2
93
0.3		  
%
 
%		    
 
$
 		 3,550
0.1
37
0.1		  
%
 
%		    
 
$
 		 15,188
0.3
163
0.5		  
%
 
%		    
 
$
 		 28,229
0.5
194
0.6		  
%
 
%

Total

  

RSF

% of Total Industrial RSF

Annualized Revenue 2/

% of Total Industrial Annl Rev

     
 
$
 		 728,643
12.1
3,608
12.1		  
%
 
%		    
 
$
 		 1,430,255
23.8
6,248
20.9		  
%
 
%		    
 
$
 		 1,059,493
17.6
6,245
20.9		  
%
 
%		    
 
$
 		 774,959
12.9
3,577
12.0		  
%
 
%		    
 
$
 		 2,018,452
33.6
10,237
34.2		  
%
 
%
1/ Includes 143,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue
2/ Annualized Revenue is September, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

 

Highwoods Properties, Inc.

   Page 18   9/30/05

Customer Diversification 1/

 

September 30, 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

    1,175,072    $ 17,824    4.56 %   5.9

AT&T 3/

    537,529      10,260    2.62 %   3.4

Price Waterhouse Coopers

    297,795      7,528    1.92 %   4.6

State Of Georgia

    356,175      6,846    1.75 %   4.1

T-Mobile USA

    205,394      5,031    1.29 %   3.6

US Airways

    295,046      4,010    1.03 %   2.2

IBM

    188,763      3,768    0.96 %   0.6

Volvo

    278,940      3,742    0.96 %   3.8

Hartford Insurance

    118,807      3,681    0.94 %   1.0

Northern Telecom

    246,000      3,651    0.93 %   2.4

SCI Services, Inc.

    160,996      3,417    0.87 %   11.8

BB&T

    243,951      3,343    0.85 %   6.3

Lockton Companies

    132,718      3,339    0.85 %   9.4

CHS Professional Services

    170,524      3,046    0.78 %   1.4

MCI

    127,268      2,579    0.66 %   0.6

Metropolitan Life Insurance

    118,017      2,250    0.58 %   5.8

Lifepoint Corporate Services

    120,112      2,223    0.57 %   5.8

Icon Clinical Research

    99,163      2,148    0.55 %   6.7

The Martin Agency

    118,518      2,018    0.52 %   11.5

CIGNA Healthcare of NC

    180,000      1,999    0.51 %   0.8
    
  
  
 
     5,170,788    $ 92,703    23.70 %   4.5
    
  
  
 

 

By Industry

 

Category

    Percent of
Annualized
Revenue 2/
  

Professional, Scientific, and Technical Services

    21.0 %

Insurance

    10.1 %

Manufacturing

    8.7 %

Finance/Banking

    8.3 %

Retail Trade

    8.1 %

Telecommunication

    7.7 %

Government/Public Administration

    7.1 %

Health Care and Social Assistance

    6.6 %

Wholesale Trade

    5.5 %

Transportation and Warehousing

    3.5 %

Real Estate Rental and Leasing

    3.3 %

Accommodation and Food Services

    2.8 %

Administrative and Support Services

    2.4 %

Other Services (except Public Administration)

    2.3 %

Information

    1.8 %

Educational Services

    0.8 %
    
     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 September, 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 $114K in associated annualized revenue.

 

Highwoods Properties, Inc.

   Page 19   9/30/05

Acquisition Activity

 

Dollars in thousands

 

Name

    Market
    Type
   

Date

Acquired

   

Square

Footage

   

Total

Cost

First quarter 2005:                         

None

                         
Second quarter 2005:                         

None

                         
Third quarter 2005:                         

None

                         

 

Highwoods Properties, Inc.

   Page 20   9/30/05

Disposition Activity

 

Dollars in thousands

 

Name

   

Market

   

Type 1/

   

Date

Sold

    Square
Footage
    Occupancy
     Gross Sales
Price
First quarter 2005:                                 

Northside

    Tampa    O    02/24/05    85,700    93.5 %   $ 9,000

531 Northridge Warehouse

    Piedmont Triad    I    02/28/05    598,100    100.0 %      

531 Northridge Office

    Piedmont Triad    O    02/28/05    91,800    100.0 %      
                   
  
 
                    689,900    100.0 %     18,656

3928 Westpoint Boulevard

    Piedmont Triad    I    02/28/05    240,000    100.0 %     6,225

4300 Six Forks Road

    Raleigh    O    03/31/05    163,300    98.0 %     27,318
                   
  
 

First quarter totals

                   1,178,900    99.3 %     61,199
                   
  
 
Second quarter 2005:                                 

2599 Empire Drive

    Piedmont Triad    I    04/15/05    89,600    100.0 %     2,150

Highwoods Preserve II

    Tampa    O    06/30/05    32,600    0.0 %      

Highwoods Preserve IV

    Tampa    O    06/30/05    207,100    0.0 %      
                   
  
 
                    239,700    0.0 %     24,500

Kennestone Corporate Center

    Atlanta    O    06/30/05    82,600    73.3 %      

Chattahoochee Avenue

    Atlanta    I    06/30/05    62,100    90.1 %      

LaVista Business Park

    Atlanta    I    06/30/05    216,300    94.5 %      
                   
  
 
                    361,000    88.8 %     13,250
                   
  
 

Second quarter totals

                   690,300    59.4 %     39,900
                   
  
 
Third quarter 2005:                                 

Charlotte/Sabal

    Charlotte/Tampa    O    07/22/05    2,432,900    75.3 %     228,000

Ironwood/Leatherwood

    Raleigh    O    08/29/05    75,200    86.4 %     6,500
                   
  
 

Third quarter totals

                   2,508,100    75.6 %     234,500
                   
  
 

Nine month totals

                   4,377,300    79.4 %   $ 335,599
                   
  
 

 

Depreciable Assets Contributed to Joint Ventures

 

     Market
    Type 1/
    Date
Contributed
    Square
Footage
    Occupancy
    Gross Sales
Price
First quarter 2005:                              

None

                              
Second quarter 2005:                              

None

                              

Third quarter 2005:

                              

None

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

 

Highwoods Properties, Inc.

   Page 21   9/30/05

Development Activity

 

Dollars in thousands

 

Property

   

Market

    Type 1/
    Rentable
Square
Feet
    Anticipated
Total
Investment
   

Investment
@

09/30/05

    Pre-
Leasing
     Estimated
Completion
Date
    Estimated
Stabilization
Date
In - Process                                             
Office:                                             

Center for Disease Control

    Atlanta    O    109,000    $ 21,375    $ 16,568    100 %   4Q 05    4Q 05

ThyssenKrupp

    Memphis    O    78,000      8,800      1,053    100 %   1Q 07    1Q 07

Cool Springs III

    Nashville    O    153,000      20,050      3,589    0 %   2Q 06    4Q 07

Glenlake Four

    Raleigh    O    158,000      26,889      3,302    46 %   3Q 06    1Q 08

Stony Point IV

    Richmond    O    104,000      13,125      1,050    46 %   4Q 06    4Q 07

3330 Healy Rd 2/

    Piedmont Triad    O    40,000      3,600      2,998    0 %   4Q 06    2Q 07

FBI 3/

    Tampa    O    138,000      31,090      23,775    100 %   4Q 05    4Q 05
              
  
  
  
        

Total or Weighted Average

              780,000    $ 124,929    $ 52,335    57 %         
              
  
  
  
        
Completed Not Stabilized 4/                                             
Retail 5/:                                             

Griffith Road/Boutique Shops

    Piedmont Triad    R    9,600    $ 2,634    $ 2,410    87 %   2Q 05    2Q 06
              
  
  
  
        

Total or Weighted Average

              9,600    $ 2,634    $ 2,410    87 %         
              
  
  
  
        

Grand Total or Weighted Average

         789,600    $ 127,563    $ 54,745    57 %         
              
  
  
  
        

 

Placed In Service

 

Property

    Market
    Type 1/
    In-Service
Date
    Rentable
Square Feet
   

Investment
@

09/30/05

    Quarter 3
2005 NOI 6/
    Occ %
     Leasing %
  

National Archives Record Administration

    Atlanta    I    9/1/2005    354,000    $ 18,295    $ 132    88 %   100 %

Saxon

    Richmond    O    7/1/2005    112,000      15,798      309    100 %   100 %
                   
  
  
  
 

Total or Weighted Average

                   466,000    $ 34,093    $ 441    91 %   100 %
                   
  
  
  
 
1/ The letters “O”, “I”, and “R” represent Office, Industrial, and Retail, respectively.
2/ Redevelopment property
3/ An approved 25,000 square feet expansion at an additional anticipated cost of $4.5 million is included.
4/ Completed Not Stabilized properties are recorded in the Consolidated Balance Sheet in the Land and Building accounts, not Development-in-process.
5/ Excludes a vacant building in Kansas City acquired in the first quarter for $4.1 million for potential future retail development or sale to a retail user.
6/ NOI = Net Operating Income (Property Revenue excluding Straight Line Rent - Property Expense)

 

Highwoods Properties, Inc.

   Page 22   9/30/05

Development Land

September 30, 2005

 

Dollars in thousands

 

Market

   

Usable

Acres

   

Total

Estimated
Market Value

On Balance Sheet:

            

Research Triangle

    318    $ 60,792

Atlanta

    226      42,062

Piedmont Triad

    117      23,150

Richmond

    57      14,296

Kansas City 1/

    44      16,594

Baltimore

    44      13,166

Charlotte

    41      7,623

Nashville

    39      12,486

Tampa

    33      14,026

Orlando

    25      12,470

Memphis

    21      5,100

Greenville

    12      1,800

Jacksonville

    9      1,885

Columbia

    2      276
    
  

Total 2/

    988    $ 225,726
    
  
1/ Includes 27 acres of residential land
2/ Developable square footage on core land holdings is approximately 6.3 million of office space and 1.8 million of industrial space

 

Highwoods Properties, Inc.

   Page 23   9/30/05

Joint Ventures Portfolio Summary

 

As of September 30, 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

    2,324,000    90.8 %   28.3 %   3.8 %   1.0 %   3.3 %   36.4 %

Orlando

    1,685,000    91.6 %   26.2 %   —       —       —       26.2 %

Atlanta

    835,000    93.0 %   12.4 %   —       —       —       12.4 %

Kansas City

    713,000    83.3 %   8.8 %   —       —       —       8.8 %

Richmond

    413,000    100.0 %   5.2 %   —       —       —       5.2 %

Piedmont Triad

    364,000    100.0 %   3.9 %   —       —       —       3.9 %

Raleigh

    455,000    99.6 %   3.7 %   —       —       —       3.7 %

Tampa

    205,000    100.0 %   2.1 %   —       —       —       2.1 %

Charlotte

    148,000    100.0 %   0.8 %   —       —       —       0.8 %

Other

    110,000    100.0 %   0.5 %   —       —       —       0.5 %
    
  
 
 
 
 
 

Total

    7,252,000    92.6 %   91.9 %   3.8 %   1.0 %   3.3 %   100.0 %
    
  
 
 
 
 
 
1/ Excludes Des Moines’ apartment units
2/ Excludes Des Moines’ apartment occupancy percentage of 92.8%
3/ Annualized Rental Revenue is September, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

 

Highwoods Properties, Inc.

   Page 24   9/30/05

Joint Ventures Lease Expirations

 

September 30, 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

    152,538    2.2 %   $ 2,705    $ 17.73    2.1 %

2006

    657,677    9.7 %     12,563      19.10    10.0 %

2007

    439,731    6.5 %     8,101      18.42    6.4 %

2008

    1,371,574    20.1 %     23,346      17.02    18.4 %

2009

    853,693    12.6 %     15,975      18.71    12.7 %

2010

    591,159    8.7 %     10,437      17.66    8.3 %

2011

    573,773    8.4 %     10,606      18.48    8.4 %

2012

    422,183    6.2 %     8,956      21.21    7.1 %

2013

    710,834    10.5 %     13,749      19.34    10.9 %

2014

    386,249    5.7 %     8,418      21.79    6.7 %

2015 and thereafter

    640,195    9.4 %     11,360      17.74    9.0 %
    
  
 
  
  
     6,799,606    100.0 %   $ 126,216    $ 18.56    100.0 %
    
  
 
  
  
1/ Annualized Revenue is September, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

 

Highwoods Properties, Inc.

   Page 25   9/30/05

Joint Ventures Development

 

Dollars in thousands

 

Property

   

%

Ownership

  

Market

   

Rentable

Square

Feet

   

Anticipated

Total

Investment

   

Investment

@

09/30/05

   

Pre-

Leasing

    

Estimated

Completion

Date

    

Estimated

Stabilization

Date

  

Sonoma

    50%   Des Moines    75,000    $ 9,364      4,746      60 %   2Q05     2Q 06  

The Vinings at University Center 2/ 3/

    50%   Charlotte    156 units      11,300      7,230      0 %   1Q06     3Q 06  

Weston Lakeside 3/

    50%   Raleigh    332 units      33,200      3,106      0 %   1Q07     1Q08  
             
  
  
  
           

Total or Weighted Average 4/

             75,000    $ 20,664    $ 15,082      60 %            
             
  
  
  
           

Highwoods’ Share of the above

                  $ 10,082    $ 7,541                     
                  
  
                    

Placed In Service

 

Property

    Market
  

Type 1/

    In-Service
Date
    Rentable
Square
Feet
   

Investment
@

09/30/05

    Quarter 3
2005 NOI 5/
     Occ %
     Leasing %
  

Plaza Colonade, LLC 1/

    Kansas City   O    9/1/2005      285,000    $ 69,140    $ 1,344     77 %   77 %

Summit

    Des Moines   O    9/1/2005      35,000      3,442      72     75 %   75 %

Pinehurst

    Des Moines   O    9/1/2005      35,000      3,740      105     89 %   90 %
                  
  
  
 
 
                     355,000    $ 76,322    $ 1,521     78 %   78 %
                  
  
  
 
 
1/ Includes $16.2 million in investment cost that has been funded by tax increment financing
2/ The Vinings at University Center is currently a fifty percent owned joint venture consolidated under the provisions of FIN 46.
3/ Estimated Completion Date is the date the last unit is expected to be delivered
4/ Pre-leasing percentage does not include multi-family
5/ NOI = Net Operating Income (Property Revenue excluding Straight Line Rent - Property Expense)

 

Highwoods Properties, Inc.

   Page 26   9/30/05