8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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): February 28, 2006

HIGHWOODS PROPERTIES, INC.

(Exact name of registrant specified in its charter)

Maryland	1-13100	56-1871668
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

HIGHWOODS REALTY LIMITED PARTNERSHIP

(Exact name of registrant specified in its charter)

North Carolina	000-21731	56-1869557
(State of Incorporation)	(Commission File Number)	(I.R.S. 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 February 27, 2006, Highwoods Properties, Inc. issued a press release announcing operational information for the year ended December 31, 2005. This press release is attached hereto as Exhibit 99.1. In addition, we posted on our website supplemental information regarding our operational results for the year ended December 31, 2005.

Item 9.01. Financial Statements and Exhibits

Exhibit No.	Description
99.1	Supplemental operating information of Highwoods Properties, Inc. for the year ended December 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 PROPERTIES, INC.
By:	/S/ TERRY L. STEVENS
	Terry L. Stevens
	Vice President and Chief Financial Officer
HIGHWOODS REALTY LIMITED PARTNERSHIP
By: Highwoods Properties Inc., in its capacity as general partner (the “General Partner”)
By:	/S/ TERRY L. STEVENS
	Terry L. Stevens
	Vice President and Chief Financial Officer

Dated: February 28, 2006

EX-99.1

Exhibit 99.1

Supplemental Information

December 31, 2005

Supplemental Information

Table of Contents

December 31, 2005

Schedule	Page
Summary and 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	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.

Corporate Information

Board of Directors	Research Coverage
Thomas W. Adler	Deutsche Banc Securities
Gene H. Anderson	Lou Taylor - 212-469-4912
Kay N. Callison
Edward J. Fritsch	Green Street Advisors
Ronald P. Gibson	Jim Sullivan - 949-640-8780
Lawrence S. Kaplan
Sherry Kellett	KeyBanc Capital Markets
L. Glenn Orr Jr.	Richard Moore - 216-443-2815
O. Temple Sloan Jr., Chairman
F. William Vandiver, Jr.	Stifel Nicolaus
	John Guinee - 410-454-5520
Corporate Officers	Morgan Stanley Dean Witter
	Gregory Whyte - 212-761-6331
Edward J. Fritsch
President, Chief Executive Officer and Director	Prudential Equity Group
	Jim Sullivan - 212-778-2515
Michael E. Harris
Executive Vice President and Chief Operating Officer	Smith Barney Citigroup
	Jonathan Litt - 212-816-0231
Terry L. Stevens
Vice President, Chief Financial Officer	Wachovia Securities
	Chris Haley - 443-263-6773
S. Hugh Esleeck
Treasurer
Thomas S. Hill
Corporate Vice President, Leasing
Julie M. Kelly
Vice President, Compliance and Internal Audit
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
Tabitha Zane
Vice President, Investor Relations

i

Corporate Information

Divisional Officers	Corporate Headquarters
	Highwoods Properties, Inc.
Atlanta/Piedmont Triad	3100 Smoketree Court, Suite 600
Gene H. Anderson - Regional Manager	Raleigh, NC 27604
	919-872-4924
Atlanta, GA
Gene H. Anderson, Senior Vice President	Stock Exchange
	NYSE    Trading Symbol: HIW
Piedmont Triad, NC
Mark W. Shumaker, Vice President	Investor Relations Contact
	Tabitha Zane
Orlando/Tampa	Vice President, Investor Relations
Michael F. Beale - Regional Manager	Phone: 919-431-1529
	Fax: 919-876-6929
Orlando, FL	E-mail: tabitha.zane@highwoods.com
Michael F. Beale, Senior Vice President
	Information Request
Tampa, FL	To request a standard Investor Relations package, Annual Report or to be added to our e-mail or fax list, please contact the Corporate Communications/IR Specialist at: Phone: 919-431-1521 Email: HIW-IR@highwoods.com
Stephen A. Meyers, Vice President
Raleigh/Richmond
Robert G. Cutlip - Regional Manager
Raleigh, NC Robert G. Cutlip, Senior Vice President	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 December 31, 2005, the Company owned or had an interest in 447 in-service office, industrial and retail properties encompassing approximately 37.0 million square feet. Highwoods also owns 898 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.
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

ii

Capitalization

Dollars, shares, and units in thousands

	12/31/05		09/30/05		06/30/05		03/31/05		12/31/04
Long-Term Debt (see page 9 & 10):	$	1,471,615	$	1,441,081	$	1,559,352	$	1,582,388	$	1,572,574
Eastshore Debt 1/		—		—		19,800		—		—
Total debt per the balance sheet		1,471,615		1,441,081		1,579,152		1,582,388		1,572,574
Finance Obligations:	$	34,000	$	34,746	$	43,168	$	63,096	$	65,309
Preferred Stock (at redemption 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 2/		142,500		142,500		172,500		172,500		172,500
Series D 8% Perpetual Preferred Stock		—		—		100,000		100,000		100,000
Total preferred stock	$	247,445	$	247,445	$	377,445	$	377,445	$	377,445
Shares and Units Outstanding:
Common stock outstanding		54,029		54,030		54,037		54,053		53,813
Minority interest partnership units		5,450		5,493		5,668		5,828		6,102
Total shares and units outstanding		59,479		59,523		59,705		59,881		59,915
Stock price at period end	$	28.45	$	29.51	$	29.76	$	26.82	$	27.70
Market value of common equity	$	1,692,178	$	1,756,524	$	1,776,821	$	1,606,008	$	1,659,646
Total market capitalization with debt and obligations	$	3,445,238	$	3,479,796	$	3,756,786	$	3,628,937	$	3,674,974

1/ This debt is the 100% obligation of an entity that Highwoods has no ownership interest in but which had been consolidated according to GAAP. The value of this debt is not included in total market capitalization with debt and obligations. These properties are no longer consolidated as of 9/30/05.

2/ The company redeemed $50.0 million of Series B preferred stock on February 23, 2006.

Page 1

Long-Term Debt Summary

Dollars in thousands

	12/31/05			09/30/05			06/30/05			03/31/05			12/31/04
Balances Outstanding:
Secured:
Conventional fixed rate 1/	$	667,137		$	676,855		$	709,948		$	754,604		$	756,001
Variable rate debt 2/		53,978			46,226			84,404			67,784			66,573
Secured total	$	721,115		$	723,081		$	794,352		$	822,388		$	822,574
Unsecured:
Fixed rate bonds and notes	$	460,000		$	460,000		$	460,000		$	460,000		$	460,000
Variable rate debt		100,000			100,000			120,000			120,000			120,000
Credit facility		190,500			158,000			185,000			180,000			170,000
Unsecured total	$	750,500		$	718,000		$	765,000		$	760,000		$	750,000
Total	$	1,471,615		$	1,441,081		$	1,559,352		$	1,582,388		$	1,572,574
Average Interest Rates:
Secured:
Conventional fixed rate		7.0	%		7.0	%		7.1	%		7.2	%		7.2	%
Variable rate debt		5.5	%		5.0	%		4.9	%		4.7	%		4.2	%
Secured total		6.9	%		6.9	%		6.8	%		6.9	%		6.9	%
Unsecured:
Fixed rate bonds		7.4	%		7.4	%		7.4	%		7.4	%		7.4	%
Variable rate debt		5.4	%		5.4	%		4.7	%		3.5	%		3.5	%
Credit facility		5.4	%		4.9	%		4.3	%		3.4	%		3.4	%
Unsecured total		6.6	%		6.5	%		6.2	%		6.0	%		5.9	%
Average		6.7	%		6.7	%		6.5	%		6.5	%		6.4	%

Maturity Schedule:

	Future Maturities of Debt				Total Debt 3/		Average Interest Rate
Year	Secured Debt 3/		Unsecured Debt
2006 4/	$	—	$	400,500	$	400,500	5.8	%
2007		122,790		—		122,790	7.0	%
2008		—		100,000		100,000	7.1	%
2009		157,787		50,000		207,787	7.9	%
2010		135,229		—		135,229	7.8	%
2011		—		—		—	—
2012		22,800		—		22,800	6.1	%
2013		277,311		—		277,311	5.9	%
2014		—		—		—	—
2015		—		—		—	—
Thereafter		5,198		200,000		205,198	7.5	%
Total maturities	$	721,115	$	750,500	$	1,471,615	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 $400.5 million of unsecured debt maturities includes $190.5 million related to the credit facility which matures in 2006.

Page 2

Long-Term Debt Detail

Dollars in thousands

	Rate		Maturity Date	Loan Balance 12/31/05
Secured Loans
Lender
Monumental Life Ins. Co.	7.8	%	Nov-09	$	149,850
Northwestern Mutual	6.0	%	Mar-13		139,897
Northwestern Mutual	7.8	%	Nov-10		135,229
Massachusetts Mutual Life Ins. Co. 1/	5.7	%	Dec-13		125,445
Northwestern Mutual	8.2	%	Feb-07		63,400
PNC/Am South/Southtrust 2/	5.1	%	Oct-07		42,777
Metropolitan Life Ins. Co. 3/	6.1	%	Oct-12		22,800
Massachusetts Mutual Life Ins. Co. 1/	6.5	%	Dec-13		11,000
Central Carolina Bank 4/ 5/	3.8	%	Jan-08		7,723
PFL Life Ins. Co. 6/	8.1	%	Jun-07		5,412
Ohio National	8.0	%	Nov-17		5,198
Lutheran Brotherhood	6.8	%	Apr-09		3,918
PFL Life Ins. Co. 6/ 7/	6.7	%	Jun-07		3,478
Security Life of Denver 8/	8.9	%	Aug-09		2,146
Southland Life Ins. Co.	8.8	%	Aug-09		1,873
American United Life	9.0	%	Jun-13		969
	6.9	%		$	721,115
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	%	Jul-06	$	100,000
Line of Credit 2/	5.4	%	Jul-06		190,500
	5.4	%		$	290,500
Total Debt	6.7	%		$	1,471,615

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

2/ Floating rate loan based on one month libor and was paid off on 1/15/06.

3/ Loan relates to a consolidated 20% owned joint venture property (Harborview).

4/ Loan relates to a consolidated 50% owned joint venture property (Vinings).

5/ Floating rate loan based on one month libor.

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

7/ Floating rate loan based on ninety day libor.

8/ Loan was paid off on 1/2/2006.

Page 3

Portfolio Summary - Wholly-Owned Properties Only 1/

(Rentable Square Feet)

	12/31/05		09/30/05		06/30/05		03/31/05		12/31/04
Office Industrial & Retail
In-Service:
Office 2/	21,412,000		21,432,000		23,849,000		24,254,000		24,628,000
Industrial	6,977,000		6,977,000		6,623,000		6,991,000		7,829,000
Retail 3/	1,416,000		1,417,000		1,417,000		1,409,000		1,409,000
Total	29,805,000		29,826,000		31,889,000		32,654,000		33,866,000
Development Completed - Not Stabilized:
Office 2/	—		—		—		—		—
Industrial	—		—		353,000		353,000		353,000
Retail	9,600		9,600		9,600		—		—
Total	9,600		9,600		362,600		353,000		353,000
Development - In Process:
Office 2/	533,000		780,000		710,000		358,000		358,000
Industrial	—		—		—		—		—
Retail	—		—		—		9,600		9,600
Total	533,000		780,000		710,000		367,600		367,600
Total:
Office 2/	21,945,000		22,212,000		24,559,000		24,612,000		24,986,000
Industrial	6,977,000		6,977,000		6,976,000		7,344,000		8,182,000
Retail 3/	1,425,600		1,426,600		1,426,600		1,418,600		1,418,600
Total	30,347,600		30,615,600		32,961,600		33,374,600		34,586,600
Same Property
Office 2/	20,825,000		20,825,000		20,825,000		20,825,000		20,825,000
Industrial	6,623,000		6,623,000		6,623,000		6,623,000		6,623,000
Retail	1,416,000		1,416,000		1,416,000		1,416,000		1,416,000
Total	28,864,000		28,864,000		28,864,000		28,864,000		28,864,000
Percent Leased/Pre-Leased:
In-Service:
Office	87.5	%	85.0	%	83.5	%	82.3	%	82.7	%
Industrial	92.4	%	86.2	%	83.8	%	86.8	%	90.2	%
Retail	97.5	%	96.4	%	96.0	%	95.5	%	97.3	%
Total	89.1	%	85.8	%	84.1	%	83.8	%	85.0	%
Development Completed - Not Stabilized:
Office	—		—		—		—		—
Industrial	—		—		100.0	%	100.0	%	100.0	%
Retail	87.0	%	87.0	%	87.0	%	—		—
Total	87.0	%	87.0	%	100.0	%	100.0	%	100.0	%
Development - In Process:
Office	37.2	%	57.1	%	60.8	%	100.0	%	100.0	%
Industrial	—		—		—		—		—
Retail	—		—		—		66.0	%	44.0	%
Total	37.2	%	57.1	%	60.8	%	99.1	%	98.5	%
Same Property
Office	87.3	%	85.4	%	84.9	%	84.8	%	84.9	%
Industrial	92.0	%	86.1	%	83.8	%	86.2	%	88.7	%
Retail	97.5	%	96.5	%	96.1	%	95.1	%	96.8	%
Total	88.9	%	86.1	%	85.2	%	85.6	%	86.4	%

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

Page 4

Portfolio Summary

(Continued)

As of December 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	4,232,000		87.5	%	15.6	%	0.1	%	—		15.7	%
Atlanta	6,806,000		87.4	%	11.7	%	3.7	%	—		15.4	%
Kansas City	2,314,000	4/	92.2	%	4.3	%	—		9.6	%	13.9	%
Nashville	2,874,000		94.0	%	12.9	%	—		—		12.9	%
Tampa	2,989,000		87.6	%	12.4	%	—		—		12.4	%
Piedmont Triad /5	5,589,000		93.1	%	6.9	%	3.7	%	—		10.6	%
Richmond	1,955,000		94.4	%	8.3	%	—		—		8.3	%
Memphis	1,197,000		88.8	%	4.9	%	—		—		4.9	%
Greenville	1,105,000		73.0	%	3.3	%	0.1	%	—		3.4	%
Orlando	218,000		100.0	%	1.2	%	—		—		1.2	%
Columbia	426,000		59.0	%	1.0	%	—		—		1.0	%
Other	100,000		56.3	%	0.3	%	—		—		0.3	%
Total	29,805,000		89.1	%	82.8	%	7.6	%	9.6	%	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
Piedmont Triad	5,953,000		93.5	%	6.5	%	3.3	%	—		—		9.8	%
Atlanta	7,641,000		88.1	%	11.7	%	3.3	%	—		—		15.0	%
Raleigh	4,687,000		88.7	%	14.0	%	0.1	%	—		—		14.1	%
Tampa	3,194,000		88.4	%	11.2	%	—		—		—		11.2	%
Kansas City	3,027,000	4/	90.1	%	4.8	%	—		8.4	%	—		13.2	%
Richmond	2,368,000		95.3	%	8.0	%	—		—		—		8.0	%
Nashville	2,874,000		94.0	%	11.4	%	—		—		—		11.4	%
Orlando	1,903,000		93.3	%	4.1	%	—		—		—		4.1	%
Des Moines	2,315,000		93.1	%	3.5	%	0.5	%	0.1	%	0.4	%	4.5	%
Greenville	1,105,000		73.0	%	2.9	%	0.1	%	—		—		3.0	%
Memphis	1,197,000		88.8	%	4.3	%	—		—		—		4.3	%
Columbia	426,000		58.9	%	0.9	%	—		—		—		0.9	%
Other	210,000		79.2	%	0.4	%	—		—		—		0.4	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%
Total	37,048,000		90.0	%	83.8	%	7.3	%	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 December, 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

Page 5

Portfolio Summary - Wholly-Owned Properties Only 1/

(Continued)

As of December 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	4,131,000	88.0	%	18.7	%	101,000	67.4	%	1.7	%
Nashville	2,874,000	94.0	%	15.5	%	—	—		—
Tampa	2,989,000	87.6	%	15.0	%	—	—		—
Atlanta	3,480,000	82.7	%	14.2	%	3,326,000	92.4	%	48.4	%
Richmond	1,955,000	94.4	%	10.1	%	—	—		—
Piedmont Triad	2,146,000	90.1	%	8.3	%	3,443,000	95.0	%	48.6	%
Memphis	1,197,000	88.8	%	5.9	%	—	—		—
Kansas City	894,000	83.7	%	5.2	%	4,000	100.0	%	0.1	%
Greenville	1,002,000	77.5	%	4.0	%	103,000	28.9	%	1.2	%
Orlando	218,000	100.0	%	1.4	%	—	—		—
Columbia	426,000	59.0	%	1.3	%	—	—		—
Other	100,000	56.3	%	0.4	%	—	—		—
	21,412,000	87.5	%	100.0	%	6,977,000	92.4	%	100.0	%

	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Revenue 2/
Kansas City 3/	1,416,000	97.5	%	100.0	%
	1,416,000	97.5	%	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 December, 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

Page 6

Occupancy Trends - Office, Industrial and Retail Properties 1/

Market	Measurement	12/31/05		09/30/05		06/30/05		03/31/05		12/31/04
Atlanta	Rentable Square Feet	6,806,000		6,818,000		6,465,000		6,826,000		6,825,000
	Occupancy	87.4	%	83.3	%	81.9	%	83.0	%	83.7	%
	Current Properties 2/3/	86.5	%	83.6	%	82.4	%	82.9	%	83.8	%
Charlotte	Rentable Square Feet	—		—		1,492,000		1,492,000		1,492,000
	Occupancy	—		—		66.9	%	67.7	%	72.9	%
	Current Properties 2/	—		—		—		—		—
Columbia	Rentable Square Feet	426,000		426,000		426,000		426,000		426,000
	Occupancy	58.9	%	62.0	%	61.6	%	59.9	%	60.4	%
	Current Properties 2/	58.9	%	62.0	%	61.6	%	59.9	%	60.4	%
Greenville	Rentable Square Feet	1,105,000		1,105,000		1,105,000		1,127,000		1,127,000
	Occupancy	73.0	%	71.2	%	75.5	%	81.1	%	80.5	%
	Current Properties 2/	73.0	%	71.2	%	75.5	%	82.7	%	82.1	%
Kansas City 4/	Rentable Square Feet	2,314,000		2,315,000		2,315,000		2,308,000		2,308,000
	Occupancy	92.2	%	91.7	%	91.4	%	91.6	%	94.1	%
	Current Properties 2/	92.2	%	91.8	%	91.4	%	91.4	%	93.9	%
Memphis	Rentable Square Feet	1,197,000		1,216,000		1,216,000		1,216,000		1,216,000
	Occupancy	88.8	%	83.8	%	82.3	%	80.6	%	83.2	%
	Current Properties 2/	88.8	%	83.8	%	82.3	%	80.6	%	83.3	%
Nashville	Rentable Square Feet	2,874,000		2,874,000		2,873,000		2,870,000		2,870,000
	Occupancy	94.0	%	95.6	%	95.1	%	92.8	%	93.3	%
	Current Properties 2/	94.0	%	95.6	%	95.0	%	92.7	%	93.2	%
Orlando	Rentable Square Feet	218,000		218,000		218,000		222,000		222,000
	Occupancy	100.0	%	100.0	%	96.8	%	97.7	%	93.2	%
	Current Properties 2/	100.0	%	100.0	%	96.8	%	99.5	%	94.9	%
Piedmont Triad	Rentable Square Feet	5,589,000		5,589,000		5,593,000		5,722,000		6,652,000
	Occupancy	93.1	%	89.1	%	88.3	%	90.4	%	92.5	%
	Current Properties 2/	93.1	%	89.1	%	88.4	%	91.0	%	91.9	%
Raleigh	Rentable Square Feet	4,232,000		4,358,000		4,432,000		4,432,000		4,597,000
	Occupancy	87.5	%	85.5	%	83.8	%	83.3	%	83.8	%
	Current Properties 2/	87.5	%	86.3	%	84.5	%	83.9	%	84.0	%
Richmond	Rentable Square Feet	1,955,000		1,955,000		1,841,000		1,836,000		1,835,000
	Occupancy	94.4	%	93.1	%	93.2	%	95.1	%	94.1	%
	Current Properties 2/3/	94.0	%	92.7	%	93.2	%	94.8	%	93.7	%
Tampa	Rentable Square Feet	2,989,000		2,851,000		3,813,000		4,077,000		4,196,000
	Occupancy	87.6	%	76.7	%	77.2	%	70.5	%	71.0	%
	Current Properties 2/3/	87.0	%	76.7	%	73.3	%	71.1	%	72.4	%
Total 5/	Rentable Square Feet	29,705,000		29,725,000		31,789,000		32,554,000		33,766,000
	Occupancy	89.1	%	85.8	%	84.1	%	83.8	%	85.0	%
	Current Properties 2/3/	88.8	%	86.0	%	85.1	%	85.4	%	86.2	%

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

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

3/ Excludes properties placed in service in Q3 and Q4 of 2005

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

Page 7

Leasing Statistics

Office Portfolio 1/

	Three Months Ended
	12/31/05 2/			9/30/05 3/			6/30/05 4/			3/31/05 5/			12/31/04 6/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		171			180			223			188			206			194
Rentable square footage leased		1,169,148			1,069,468			1,155,513			1,235,718			1,101,291			1,146,228
Square footage of Renewal Deals		890,582			826,512			785,827			677,799			726,959			781,536
Renewed square footage (% of total)		76.2	%		77.3	%		68.0	%		54.9	%		66.0	%		68.2	%
New Leases square footage (% of total)		23.8	%		22.7	%		32.0	%		45.1	%		34.0	%		31.8	%
Average per rentable square foot over the lease term:
Base rent	$	17.37		$	17.71		$	17.31		$	16.20		$	17.40		$	17.20
Tenant improvements		(1.67	)		(1.10	)		(1.45	)		(0.94	)		(1.51	)		(1.33	)
Leasing commissions 7/		(0.66	)		(0.57	)		(0.60	)		(0.66	)		(0.62	)		(0.62	)
Rent concessions		(0.27	)		(0.27	)		(0.31	)		(0.41	)		(0.31	)		(0.31	)
Effective rent		14.77			15.77			14.95			14.19			14.96			14.94
Expense stop		(4.79	)		(4.85	)		(5.33	)		(4.46	)		(5.61	)		(5.01	)
Equivalent effective net rent	$	9.98		$	10.92		$	9.62		$	9.73		$	9.35		$	9.93
Average term in years		5.0			3.8			4.1			5.7			5.0			4.7
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	10,506,779		$	5,996,413		$	8,869,553		$	5,644,830		$	9,208,835		$	8,045,282
Rentable square feet		1,169,148			1,069,468			1,155,513			1,235,718			1,101,291			1,146,228
Per rentable square foot	$	8.99		$	5.61		$	7.68		$	4.57		$	8.36		$	7.02
Leasing Commissions:
Total dollars committed under signed leases 7/	$	3,551,312		$	2,398,139		$	2,629,936		$	4,109,601		$	2,806,566		$	3,099,111
Rentable square feet		1,169,148			1,069,468			1,155,513			1,235,718			1,101,291			1,146,228
Per rentable square foot	$	3.04		$	2.24		$	2.28		$	3.33		$	2.55		$	2.70
Total:
Total dollars committed under signed leases	$	14,058,091		$	8,394,552		$	11,499,489		$	9,754,431		$	12,015,401		$	11,144,393
Rentable square feet		1,169,148			1,069,468			1,155,513			1,235,718			1,101,291			1,146,228
Per rentable square foot	$	12.02		$	7.85		$	9.95		$	7.89		$	10.91		$	9.72

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 171K square feet of leases that start in 2008 or later

3/ Includes 115K square feet of leases that start in 2008 or later

4/ Includes 68K square feet of leases that start in 2008 or later

5/ Includes 89K square feet of leases that start in 2008 or later

6/ Includes 111K square feet of leases that start in 2008 or later

7/ Excludes a full allocation of internal marketing cost

Page 8

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	12/31/05 1/			9/30/05 2/			6/30/05 3/			3/31/05			12/31/04			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		29			32			30			15			36			28
Rentable square footage leased		532,917			498,819			359,342			599,048			1,216,644			641,354
Square footage of Renewal Deals		274,174			349,405			224,203			579,069			875,445			460,459
Renewed square footage (% of total)		51.4	%		70.0	%		62.4	%		96.7	%		72.0	%		71.8	%
New Leases square footage (% of total)		48.6	%		30.0	%		37.6	%		3.3	%		28.0	%		28.2	%
Average per rentable square foot over the lease term:
Base rent	$	4.14		$	4.19		$	5.16		$	3.39		$	3.49		$	4.07
Tenant improvements		(0.32	)		(0.45	)		(0.51	)		(0.16	)		(0.13	)		(0.31	)
Leasing commissions 4/		(0.14	)		(0.06	)		(0.12	)		(0.06	)		(0.06	)		(0.09	)
Rent concessions		(0.09	)		(0.02	)		(0.16	)		(0.01	)		(0.03	)		(0.06	)
Effective rent		3.59			3.66			4.37			3.16			3.27			3.61
Expense stop		(0.15	)		(0.38	)		(0.31	)		(0.08	)		(0.09	)		(0.20	)
Equivalent effective net rent	$	3.44		$	3.28		$	4.06		$	3.08		$	3.18		$	3.41
Average term in years		3.9			4.1			3.7			1.3			2.0			3.0
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	796,212		$	1,256,241		$	917,527		$	361,044		$	756,077		$	817,420
Rentable square feet		532,917			498,819			359,342			599,048			1,216,644			641,354
Per rentable square foot	$	1.49		$	2.52		$	2.55		$	0.60		$	0.62		$	1.27
Leasing Commissions:
Total dollars committed under signed leases 4/	$	355,767		$	185,669		$	172,719		$	63,473		$	226,000		$	200,726
Rentable square feet		532,917			498,819			359,342			599,048			1,216,644			641,354
Per rentable square foot	$	0.67		$	0.37		$	0.48		$	0.11		$	0.19		$	0.31
Total:
Total dollars committed under signed leases	$	1,151,979		$	1,441,910		$	1,090,246		$	424,517		$	982,077		$	1,018,146
Rentable square feet		532,917			498,819			359,342			599,048			1,216,644			641,354
Per rentable square foot	$	2.16		$	2.89		$	3.03		$	0.71		$	0.81		$	1.59

1/ Includes 12K square feet of leases that start in 2008 or later

2/ Includes 113K square feet of leases that start in 2008 or later

3/ Includes 4K square feet of leases that start in 2008 or later

4/ Excludes a full allocation of internal marketing cost

Page 9

Leasing Statistics

Retail Portfolio

	Three Months Ended
	12/31/05			9/30/05			6/30/05 1/			3/31/05			12/31/04			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		9			7			10			4			23			11
Rentable square footage leased		19,320			10,721			39,723			10,993			106,629			37,477
Square footage of Renewal Deals		2,729			6,502			36,118			1,750			78,579			25,136
Renewed square footage (% of total)		14.1	%		60.6	%		90.9	%		15.9	%		73.7	%		67.1	%
New Leases square footage (% of total)		85.9	%		39.4	%		9.1	%		84.1	%		26.3	%		32.9	%
Average per rentable square foot over the lease term:
Base rent	$	23.03		$	17.61		$	21.49		$	26.09		$	17.03		$	21.05
Tenant improvements		(1.33	)		(1.21	)		(1.64	)		(2.65	)		(1.73	)		(1.71	)
Leasing commissions 2/		(0.60	)		(1.11	)		(0.40	)		(0.88	)		(0.26	)		(0.65	)
Rent concessions		(0.35	)		(0.08	)		0.00			0.00			0.00			(0.09	)
Effective rent		20.75			15.21			19.45			22.56			15.04			18.60
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00
Equivalent effective net rent	$	20.75		$	15.21		$	19.45		$	22.56		$	15.04		$	18.60
Average term in years		6.1			4.3			8.7			9.3			8.3			7.3
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	251,252		$	62,187		$	695,152		$	308,098		$	2,137,327		$	690,803
Rentable square feet		19,320			10,721			39,723			10,993			106,629			37,477
Per rentable square foot	$	13.00		$	5.80		$	17.50		$	28.03		$	20.04		$	18.43
Leasing Commissions:
Total dollars committed under signed leases 2/	$	13,721		$	12,026		$	43,041		$	3,778		$	220,528		$	58,619
Rentable square feet		19,320			10,721			39,723			10,993			106,629			37,477
Per rentable square foot	$	0.71		$	1.12		$	1.08		$	0.34		$	2.07		$	1.56
Total:
Total dollars committed under signed leases	$	264,973		$	74,213		$	738,193		$	311,876		$	2,357,855		$	749,422
Rentable square feet		19,320			10,721			39,723			10,993			106,629			37,477
Per rentable square foot	$	13.71		$	6.92		$	18.58		$	28.37		$	22.11		$	20.00

1/ Includes 16K square feet of leases that start in 2007 or later

2/ Excludes a full allocation of internal marketing cost

Page 10

Leasing Statistics by Market

For the Three Months ended December 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	246,928	5.0	$	17.44	$	10.32	$	3.51
Raleigh	210,231	4.0		16.52		7.98		1.81
Nashville	162,935	5.4		20.95		6.62		3.23
Atlanta	160,579	4.9		12.48		9.48		2.82
Richmond	150,998	6.7		17.61		11.74		3.21
Piedmont Triad	111,290	4.4		17.57		5.03		2.13
Greenville	40,789	4.7		15.13		10.61		3.66
Memphis	32,500	4.9		19.36		15.14		1.95
Other	18,286	4.8		17.77		15.40		6.18
Kansas City	17,198	4.0		22.38		3.55		5.56
Columbia	15,331	3.5		12.04		5.24		2.02
Orlando	2,083	5.0		23.99		0.00		2.00
	1,169,148	5.0	$	17.10	$	8.99	$	3.04
Industrial Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Atlanta	321,884	4.6	$	4.66	$	2.03	$	0.94
Piedmont Triad	205,993	2.7		3.00		0.51		0.17
Raleigh	5,040	3.3		8.09		7.60		1.08
	532,917	3.9	$	4.05	$	1.49	$	0.67
Retail Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF
Kansas City	19,320	6.1	$	22.68	$	13.00	$	0.71
	19,320	6.1	$	22.68	$	13.00	$	0.71

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 commisions per square foot excludes all internal charges from Leasing Departments, which are not allocated to individual leases.

Page 11

Rental Rate Comparisons by Market

For the Three Months ended December 31, 2005

Office Portfolio 1/

Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Tampa	246,928	$	17.44	$	16.58	5.2	%
Raleigh	210,231		16.52		18.69	-11.6	%
Nashville	162,935		20.95		19.72	6.2	%
Atlanta	160,579		12.48		14.01	-10.9	%
Richmond	150,998		17.61		16.31	8.0	%
Piedmont Triad	111,290		17.57		17.13	2.5	%
Greenville	40,789		15.13		16.69	-9.4	%
Memphis	32,500		19.36		19.33	0.2	%
Other	18,286		17.77		12.54	41.7	%
Kansas City	17,198		22.38		20.83	7.4	%
Columbia	15,331		12.04		15.42	-21.9	%
Orlando	2,083		23.99		22.30	7.6	%
GAAP Rent Growth	1,169,148	$	17.10	$	17.07	0.2	%
Cash Rent Growth	1,169,148	$	16.61	$	18.08	-8.1	%
Industrial Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Atlanta	321,884	$	4.66	$	5.37	-13.2	%
Piedmont Triad	205,993		3.00		3.57	-15.9	%
Raleigh	5,040		8.09		13.09	-38.2	%
GAAP Rent Growth	532,917	$	4.05	$	4.74	-14.5	%
Cash Rent Growth	532,917	$	4.04	$	4.91	-17.7	%
Retail Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Kansas City	19,320	$	22.68	$	20.37	11.3	%
GAAP Rent Growth	19,320	$	22.68	$	20.37	11.3	%
Cash Rent Growth	19,320	$	21.32	$	20.14	5.8	%

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

Page 12

Lease Expirations

December 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/
2006 /3	2,938,849	15.7	%	$	53,086	$	18.06	16.1	%
2007	1,672,362	8.9	%		30,805		18.42	9.3	%
2008	2,986,977	16.0	%		49,609		16.61	15.1	%
2009	2,613,048	13.9	%		47,625		18.23	14.4	%
2010	2,327,241	12.4	%		44,141		18.97	13.4	%
2011	1,900,749	10.1	%		33,556		17.65	10.2	%
2012	1,198,203	6.4	%		21,765		18.16	6.6	%
2013	566,233	3.0	%		10,097		17.83	3.1	%
2014	451,009	2.4	%		9,425		20.90	2.9	%
2015	585,962	3.1	%		11,559		19.73	3.5	%
2016 and thereafter	1,513,556	8.1	%		17,921		11.84	5.4	%
	18,754,189	100.0	%	$	329,589	$	17.57	100.0	%
Industrial:
2006 /4	1,772,916	27.6	%	$	7,336	$	4.14	23.9	%
2007	875,152	13.6	%		5,197		5.94	16.8	%
2008	995,306	15.4	%		4,902		4.93	16.0	%
2009	710,465	11.0	%		4,235		5.96	13.8	%
2010	541,555	8.4	%		1,987		3.67	6.5	%
2011	322,828	5.0	%		1,249		3.87	4.1	%
2012	225,536	3.5	%		1,133		5.02	3.7	%
2013	146,784	2.3	%		750		5.11	2.4	%
2014	206,731	3.2	%		1,043		5.05	3.4	%
2015	137,882	2.1	%		673		4.88	2.2	%
2016 and thereafter	511,330	7.9	%		2,204		4.31	7.2	%
	6,446,485	100.0	%	$	30,709	$	4.76	100.0	%

1/ Annualized Revenue is December, 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 170,000 square feet of leases that are on a month to month basis or 0.6% of total annualized revenue

4/ Includes 127,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

Note: 2006 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Page 13

Lease Expirations

December 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:
2006 2/	119,868	8.6	%	$	2,591	$	21.62	6.8	%
2007	75,617	5.4	%		2,130		28.17	5.6	%
2008	129,441	9.3	%		3,744		28.92	9.8	%
2009	177,913	12.8	%		4,875		27.40	12.7	%
2010	105,370	7.6	%		3,575		33.93	9.3	%
2011	57,974	4.2	%		1,805		31.13	4.7	%
2012	132,034	9.5	%		3,904		29.57	10.2	%
2013	109,674	7.9	%		2,854		26.02	7.4	%
2014	80,159	5.8	%		1,453		18.13	3.8	%
2015	134,858	9.7	%		4,266		31.63	11.1	%
2016 and thereafter	266,386	19.2	%		7,155		26.86	18.6	%
	1,389,294	100.0	%	$	38,352	$	27.61	100.0	%
Total:
2006 3/4/	4,831,633	18.1	%	$	63,013	$	13.04	15.8	%
2007	2,623,131	9.9	%		38,132		14.54	9.7	%
2008	4,111,724	15.4	%		58,255		14.17	14.6	%
2009	3,501,426	13.2	%		56,735		16.20	14.2	%
2010	2,974,166	11.2	%		49,703		16.71	12.5	%
2011	2,281,551	8.6	%		36,610		16.05	9.2	%
2012	1,555,773	5.9	%		26,802		17.23	6.7	%
2013	822,691	3.1	%		13,701		16.65	3.4	%
2014	737,899	2.8	%		11,921		16.16	3.0	%
2015	858,702	3.2	%		16,498		19.21	4.1	%
2016 and thereafter	2,291,272	8.6	%		27,280		11.91	6.8	%
	26,589,968	100.0	%	$	398,650	$	14.99	100.0	%

1/ Annualized Revenue is December, 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 301,000 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: 2006 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Page 14

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands

		Three Months Ended
		3/31/06 2/			06/30/06			09/30/06			12/31/06			Total
Atlanta	RSF		290,763			72,746			166,772			34,490			564,771
	% of Total Office RSF		1.6	%		0.4	%		0.9	%		0.2	%		3.0	%
	Annualized Revenue 3/	$	4,793		$	1,042		$	2,725		$	638		$	9,198
	% of Total Office Annl Rev		1.5	%		0.3	%		0.8	%		0.2	%		2.8	%
Columbia	RSF		6,251			0			17,391			43,368			67,010
	% of Total Office RSF		0.0	%		0.0	%		0.1	%		0.2	%		0.4	%
	Annualized Revenue 3/	$	122		$	—		$	369		$	787		$	1,278
	% of Total Office Annl Rev		0.0	%		0.0	%		0.1	%		0.2	%		0.4	%
Greenville	RSF		39,908			119,623			10,699			28,545			198,775
	% of Total Office RSF		0.2	%		0.6	%		0.1	%		0.2	%		1.1	%
	Annualized Revenue 3/	$	739		$	2,248		$	221		$	535		$	3,743
	% of Total Office Annl Rev		0.2	%		0.7	%		0.1	%		0.2	%		1.1	%
Kansas City	RSF		67,408			18,549			22,735			38,916			147,608
	% of Total Office RSF		0.4	%		0.1	%		0.1	%		0.2	%		0.8	%
	Annualized Revenue 3/	$	1,334		$	373		$	497		$	820		$	3,024
	% of Total Office Annl Rev		0.4	%		0.1	%		0.2	%		0.2	%		0.9	%
Memphis	RSF		31,532			25,086			16,128			5,590			78,336
	% of Total Office RSF		0.2	%		0.1	%		0.1	%		0.0	%		0.4	%
	Annualized Revenue 3/	$	641		$	430		$	312		$	110		$	1,493
	% of Total Office Annl Rev		0.2	%		0.1	%		0.1	%		0.0	%		0.5	%
Nashville	RSF		163,202			41,311			63,074			176,728			444,315
	% of Total Office RSF		0.9	%		0.2	%		0.3	%		0.9	%		2.4	%
	Annualized Revenue 3/	$	3,073		$	843		$	1,341		$	3,523		$	8,780
	% of Total Office Annl Rev		0.9	%		0.3	%		0.4	%		1.1	%		2.7	%
Orlando	RSF		0			0			0			6,465			6,465
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 3/	$	—		$	—		$	—		$	180		$	180
	% of Total Office Annl Rev		0.0	%		0.0	%		0.0	%		0.1	%		0.1	%
Piedmont Triad	RSF		92,815			33,871			57,095			35,187			218,968
	% of Total Office RSF		0.5	%		0.2	%		0.3	%		0.2	%		1.2	%
	Annualized Revenue 3/	$	1,498		$	523		$	959		$	553		$	3,533
	% of Total Office Annl Rev		0.5	%		0.2	%		0.3	%		0.2	%		1.1	%
Raleigh	RSF		305,579			65,439			263,692			54,281			688,991
	% of Total Office RSF		1.6	%		0.3	%		1.4	%		0.3	%		3.6	%
	Annualized Revenue 3/	$	5,758		$	1,410		$	3,567		$	920		$	11,655
	% of Total Office Annl Rev		1.7	%		0.4	%		1.1	%		0.3	%		3.5	%
Richmond	RSF		152,562			68,468			38,286			73,301			332,617
	% of Total Office RSF		0.8	%		0.4	%		0.2	%		0.4	%		1.8	%
	Annualized Revenue 3/	$	2,459		$	1,244		$	979		$	1,434		$	6,116
	% of Total Office Annl Rev		0.7	%		0.4	%		0.3	%		0.4	%		1.9	%
Tampa	RSF		37,768			76,033			8,978			67,119			189,898
	% of Total Office RSF		0.2	%		0.4	%		0.0	%		0.4	%		1.0	%
	Annualized Revenue 3/	$	797		$	1,515		$	180		$	1,590		$	4,082
	% of Total Office Annl Rev		0.2	%		0.5	%		0.1	%		0.5	%		1.2	%
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		1,188,883			521,126			664,850			563,990			2,938,849
	% of Total Office RSF		6.3	%		2.8	%		3.5	%		3.0	%		15.6	%
	Annualized Revenue 3/	$	21,219		$	9,628		$	11,150		$	11,090		$	53,087
	% of Total Office Annl Rev		6.4	%		2.9	%		3.4	%		3.4	%		16.1	%

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 170,000 square feet of leases that are on a month to month basis or 0.6% of total annualized revenue

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

Page 15

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

		Three Months Ended
		3/31/06 1/			06/30/06			09/30/06			12/31/06			Total
Atlanta	RSF		153,653			66,091			93,720			110,452			423,916
	% of Total Industrial RSF		2.4	%		1.0	%		1.5	%		1.7	%		6.6	%
	Annualized Revenue 2/	$	611		$	348		$	444		$	770		$	2,173
	% of Total Industrial Annl Rev		2.0	%		1.1	%		1.4	%		2.5	%		7.1	%
Greenville	RSF		16,081			0			0			0			16,081
	% of Total Industrial RSF		0.2	%		0.0	%		0.0	%		0.0	%		0.2	%
	Annualized Revenue 2/	$	206		$	—		$	—		$	—		$	206
	% of Total Industrial Annl Rev		0.7	%		0.0	%		0.0	%		0.0	%		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		680,379			319,924			267,068			53,982			1,321,353
	% of Total Industrial RSF		10.6	%		5.0	%		4.1	%		0.8	%		20.5	%
	Annualized Revenue 2/	$	2,368		$	901		$	1,246		$	333		$	4,848
	% of Total Industrial Annl Rev		7.7	%		2.9	%		4.1	%		1.1	%		15.8	%
Raleigh	RSF		9,548			0			0			0			9,548
	% of Total Industrial RSF		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Revenue 2/	$	93		$	—		$	—		$	—		$	93
	% of Total Industrial Annl Rev		0.3	%		0.0	%		0.0	%		0.0	%		0.3	%
Total	RSF		861,679			386,015			360,788			164,434			1,772,916
	% of Total Industrial RSF		13.4	%		6.0	%		5.6	%		2.6	%		27.5	%
	Annualized Revenue 2/	$	3,295		$	1,249		$	1,690		$	1,103		$	7,337
	% of Total Industrial Annl Rev		10.8	%		4.1	%		5.5	%		3.6	%		23.9	%

1/ Includes 127,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

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

Page 16

Office Lease Expirations by Market by Year 1/

Dollars in thousands

		2006 2/			2007			2008			2009			Thereafter
Atlanta	RSF		564,771			209,185			568,670			351,030			1,191,410
	% of Total Office RSF		3.0	%		1.1	%		3.0	%		1.9	%		6.4	%
	Annualized Revenue 3/	$	9,198		$	3,034		$	8,902		$	5,725		$	19,880
	% of Total Office Annl Rev		2.8	%		0.9	%		2.7	%		1.7	%		6.0	%
Columbia	RSF		67,010			61,766			63,170			13,869			45,148
	% of Total Office RSF		0.4	%		0.3	%		0.3	%		0.1	%		0.2	%
	Annualized Revenue 3/	$	1,279		$	1,096		$	1,106		$	184		$	499
	% of Total Office Annl Rev		0.4	%		0.3	%		0.3	%		0.1	%		0.2	%
Greenville	RSF		198,775			10,050			99,410			34,937			433,488
	% of Total Office RSF		1.1	%		0.1	%		0.5	%		0.2	%		2.3	%
	Annualized Revenue 3/	$	3,743		$	190		$	1,824		$	555		$	6,822
	% of Total Office Annl Rev		1.1	%		0.1	%		0.6	%		0.2	%		2.1	%
Kansas City	RSF		147,608			95,938			80,316			71,522			352,862
	% of Total Office RSF		0.8	%		0.5	%		0.4	%		0.4	%		1.9	%
	Annualized Revenue 3/	$	3,023		$	1,997		$	1,635		$	1,436		$	8,918
	% of Total Office Annl Rev		0.9	%		0.6	%		0.5	%		0.4	%		2.7	%
Memphis	RSF		78,336			112,319			183,608			209,967			478,558
	% of Total Office RSF		0.4	%		0.6	%		1.0	%		1.1	%		2.6	%
	Annualized Revenue 3/	$	1,493		$	2,157		$	3,762		$	3,821		$	8,284
	% of Total Office Annl Rev		0.5	%		0.7	%		1.1	%		1.2	%		2.5	%
Nashville	RSF		444,315			202,799			244,016			654,942			1,155,356
	% of Total Office RSF		2.4	%		1.1	%		1.3	%		3.5	%		6.2	%
	Annualized Revenue 3/	$	8,780		$	3,904		$	4,798		$	12,086		$	21,704
	% of Total Office Annl Rev		2.7	%		1.2	%		1.5	%		3.7	%		6.6	%
Orlando	RSF		6,465			21,694			7,157			6,788			175,828
	% of Total Office RSF		0.0	%		0.1	%		0.0	%		0.0	%		0.9	%
	Annualized Revenue 3/	$	180		$	447		$	152		$	149		$	3,731
	% of Total Office Annl Rev		0.1	%		0.1	%		0.0	%		0.0	%		1.1	%
Piedmont Triad	RSF		218,968			208,500			676,560			93,525			758,302
	% of Total Office RSF		1.2	%		1.1	%		3.6	%		0.5	%		4.0	%
	Annualized Revenue 3/	$	3,532		$	3,209		$	8,507		$	1,372		$	10,754
	% of Total Office Annl Rev		1.1	%		1.0	%		2.6	%		0.4	%		3.3	%
Raleigh	RSF		688,991			403,270			539,721			446,840			1,557,687
	% of Total Office RSF		3.7	%		2.2	%		2.9	%		2.4	%		8.3	%
	Annualized Revenue 3/	$	11,654		$	7,794		$	8,987		$	8,306		$	25,105
	% of Total Office Annl Rev		3.5	%		2.4	%		2.7	%		2.5	%		7.6	%
Richmond	RSF		332,617			154,532			265,957			173,328			918,205
	% of Total Office RSF		1.8	%		0.8	%		1.4	%		0.9	%		4.9	%
	Annualized Revenue 3/	$	6,116		$	2,780		$	5,031		$	3,028		$	16,308
	% of Total Office Annl Rev		1.9	%		0.8	%		1.5	%		0.9	%		4.9	%
Tampa	RSF		189,898			178,472			238,943			556,300			1,455,628
	% of Total Office RSF		1.0	%		1.0	%		1.3	%		3.0	%		7.8	%
	Annualized Revenue 3/	$	4,081		$	3,843		$	4,386		$	10,962		$	26,002
	% of Total Office Annl Rev		1.2	%		1.2	%		1.3	%		3.3	%		7.9	%
Other	RSF		1,095			13,837			19,449			0			20,481
	% of Total Office RSF		0.0	%		0.1	%		0.1	%		0.0	%		0.1	%
	Annualized Revenue 3/	$	5		$	355		$	519		$	—		$	454
	% of Total Office Annl Rev		0.0	%		0.1	%		0.2	%		0.0	%		0.1	%
Total	RSF		2,938,849			1,672,362			2,986,977			2,613,048			8,542,953
	% of Total Office RSF		15.7	%		8.9	%		15.9	%		13.9	%		45.6	%
	Annualized Revenue 3/	$	53,084		$	30,806		$	49,609		$	47,624		$	148,461
	% of Total Office Annl Rev		16.1	%		9.3	%		15.1	%		14.4	%		45.0	%

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

2/ Includes 170,000 square feet of leases that are on a month to month basis or 0.6% of total annualized revenue

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

Page 17

Industrial Lease Expirations by Market by Year

Dollars in thousands

		2006 1/			2007			2008			2009			Thereafter
Atlanta	RSF		423,916			408,012			532,398			336,676			1,372,590
	% of Total Industrial RSF		6.6	%		6.3	%		8.3	%		5.2	%		21.3	%
	Annualized Revenue 2/	$	2,173		$	2,145		$	2,775		$	1,976		$	5,807
	% of Total Industrial Annl Rev		7.1	%		7.0	%		9.0	%		6.4	%		18.9	%
Greenville	RSF		16,081			0			5,350			0			8,470
	% of Total Industrial RSF		0.2	%		0.0	%		0.1	%		0.0	%		0.1	%
	Annualized Revenue 2/	$	206		$	—		$	59		$	—		$	91
	% of Total Industrial Annl Rev		0.7	%		0.0	%		0.2	%		0.0	%		0.3	%
Kansas City	RSF		2,018			0			0			1,756			0
	% 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	%		0.1	%		0.0	%
Piedmont Triad	RSF		1,321,353			463,590			442,370			344,107			699,650
	% of Total Industrial RSF		20.5	%		7.2	%		6.9	%		5.3	%		10.9	%
	Annualized Revenue 2/	$	4,848		$	3,016		$	1,902		$	2,066		$	3,088
	% of Total Industrial Annl Rev		15.8	%		9.8	%		6.2	%		6.7	%		10.1	%
Raleigh	RSF		9,548			3,550			15,188			27,926			11,936
	% of Total Industrial RSF		0.1	%		0.1	%		0.2	%		0.4	%		0.2	%
	Annualized Revenue 2/	$	93		$	37		$	166		$	173		$	53
	% of Total Industrial Annl Rev		0.3	%		0.1	%		0.5	%		0.6	%		0.2	%
Total	RSF		1,772,916			875,152			995,306			710,465			2,092,646
	% of Total Industrial RSF		27.5	%		13.6	%		15.4	%		11.0	%		32.5	%
	Annualized Revenue 2/	$	7,337		$	5,198		$	4,902		$	4,234		$	9,039
	% of Total Industrial Annl Rev		23.9	%		16.9	%		16.0	%		13.8	%		29.4	%

1/ Includes 127,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

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

Page 18

Customer Diversification 1/

December 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	1,526,045	$	22,519	5.65	%	8.4
AT&T	537,529		10,280	2.58	%	3.1
Price Waterhouse Coopers	297,795		7,609	1.91	%	4.3
State Of Georgia	356,175		6,882	1.73	%	3.8
T-Mobile USA	205,855		4,676	1.17	%	8.1
US Airways	293,007		3,971	1.00	%	2.0
IBM	188,763		3,768	0.95	%	0.3
Volvo	278,940		3,752	0.94	%	3.5
Lockton Companies	145,651		3,701	0.93	%	9.2
Northern Telecom	246,000		3,651	0.92	%	2.2
SCI Services, Inc.	162,784		3,450	0.87	%	11.6
BB&T	227,757		3,127	0.78	%	6.2
CHS Professional Services	170,524		3,080	0.77	%	1.1
Metropolitan Life Insurance	174,944		2,659	0.67	%	6.8
MCI	127,915		2,487	0.62	%	1.4
Jacobs Engineering Group, Inc.	164,417		2,269	0.57	%	10.4
Lifepoint Corporate Services	120,112		2,224	0.56	%	5.6
Icon Clinical Research	99,163		2,153	0.54	%	6.4
Vanderbilt University	108,622		2,090	0.52	%	9.8
The Martin Agency	118,518		2,018	0.51	%	11.3
	5,550,516	$	96,366	24.19	%	5.8

By Industry

Category	Percent of Annualized Revenue 2/
Professional, Scientific, and Technical Services	21.1	%
Insurance	9.7	%
Finance/Banking	8.6	%
Government/Public Administration	8.2	%
Retail Trade	8.1	%
Manufacturing	7.8	%
Telecommunication	7.3	%
Health Care and Social Assistance	6.2	%
Wholesale Trade	5.7	%
Real Estate Rental and Leasing	3.6	%
Transportation and Warehousing	3.3	%
Administrative and Support Services	2.9	%
Accommodation and Food Services	2.7	%
Other Services (except Public Administration)	2.4	%
Information	1.6	%
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 December, 2005 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 19

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
Fourth quarter 2005:
None

Page 20

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	2/
Ironwood/Leatherwood	Raleigh	O	08/29/05	75,200	86.4	%		6,500
Third quarter totals				2,508,100	75.6	%		234,500
Fourth quarter 2005:
Creekstone Crossings	Raleigh	O	10/03/05	59,400	63.7	%		5,000
Hickory Hill Medical Plaza	Memphis	O	10/07/05	18,100	82.9	%		1,025
Hawthorn	Raleigh	O	12/15/05	64,000	57.3	%		5,571
Cosmopolitan North	Atlanta	O	12/22/05	121,900	51.7	%		8,967
Fourth quarter totals				263,400	57.9	%		20,563
2005 totals				4,640,700	78.2	%	$	356,162

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

2/ Includes $6.8 million related to vacant land

Page 21

Development Activity

Dollars in thousands

Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/05		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
In - Process
Office:
ThyssenKrupp	Memphis	O	78,000	$	8,800	$	1,412	100	%	1Q 07	1Q 07
Cool Springs III	Nashville	O	153,000		20,050		6,573	0	%	2Q 06	4Q 07
Glenlake Four	Raleigh	O	158,000		26,889		6,530	46	%	3Q 06	1Q 08
Stony Point IV	Richmond	O	104,000		13,125		1,422	46	%	4Q 06	4Q 07
3330 Healy Rd 2/	Piedmont Triad	O	40,000		3,600		3,001	0	%	4Q 06	2Q 07
Total or Weighted Average			533,000	$	72,464	$	18,938	37	%
Completed Not Stabilized 3/
Retail 4/:
Griffith Road/Boutique Shops	Piedmont Triad	R	9,600	$	2,634	$	2,480	87	%	2Q05	2Q06
Total or Weighted Average			9,600	$	2,634	$	2,480	87	%
Grand Total or Weighted Average			542,600	$	75,098	$	21,418	38	%

Placed In Service
Property	Market	Type 1/	In-Service Date	Rentable Square Feet	Investment @ 12/31/05		Occ %		Leasing %
National Archives Record Administration	Atlanta	I	9/1/2005	354,000	$	19,114	100	%	100	%
Saxon	Richmond	O	7/1/2005	112,000		16,371	100	%	100	%
FBI	Tampa	O	12/1/2005	138,000		25,595	100	%	100	%
Center for Disease Control	Atlanta	O	12/1/2005	109,000		20,900	100	%	100	%
Total or Weighted Average				713,000	$	81,980	100	%	100	%

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

2/ Redevelopment property

3/ Completed Not Stabilized properties are recorded in the Consolidated Balance Sheet in the Land and Building accounts, not Development-in-process.

4/ 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.

Page 22

Development Land

December 31, 2005

Dollars in thousands

Market	Usable Acres	Total Estimated Market Value
On Balance Sheet:
Research Triangle	260	$	55,347
Atlanta	226		42,062
Piedmont Triad	96		20,713
Richmond	57		15,834
Kansas City 1/	44		21,090
Baltimore	44		12,566
Charlotte	41		9,000
Nashville	39		12,486
Tampa	31		14,879
Orlando	25		14,270
Memphis	21		5,100
Greenville	12		1,800
Columbia	2		276
Total 2/	898	$	225,423

1/ Includes 27 acres of residential land

2/ Developable square footage on core land holdings is approximately 5.3 million of office space and 1.8 million of industrial space

Page 23

Joint Ventures Portfolio Summary

As of December 31, 2005

Summary by Location:

	Rentable Square Feet 1/			Percentage of Annualized Revenue - Highwoods’ Share Only 3/
Market		Occupancy 2/		Office		Industrial		Retail		Multi-Family		Total
Des Moines	2,315,000	93.1	%	30.1	%	4.3	%	1.0	%	3.1	%	38.5	%
Orlando	1,685,000	92.4	%	26.0	%	—		—		—		26.0	%
Atlanta	835,000	93.1	%	11.1	%	—		—		—		11.1	%
Kansas City	713,000	83.5	%	8.6	%	—		—		—		8.6	%
Richmond	413,000	100.0	%	5.0	%	—		—		—		5.0	%
Piedmont Triad	364,000	100.0	%	3.9	%	—		—		—		3.9	%
Raleigh	455,000	99.6	%	3.6	%	—		—		—		3.6	%
Tampa	205,000	100.0	%	2.0	%	—		—		—		2.0	%
Charlotte	148,000	100.0	%	0.8	%	—		—		—		0.8	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%
Total	7,243,000	93.6	%	91.6	%	4.3	%	1.0	%	3.1	%	100.0	%

1/ Excludes Des Moines’ apartment units

2/ Excludes Des Moines’ apartment occupancy percentage of 92.8%

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

Page 24

Joint Ventures Lease Expirations

December 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
2006	705,215	10.3	%	$	13,354	$	18.94	10.4	%
2007	396,081	5.8	%		8,104		20.46	6.3	%
2008	1,371,531	20.0	%		22,742		16.58	17.7	%
2009	819,959	11.9	%		15,867		19.35	12.4	%
2010	689,599	10.0	%		11,667		16.92	9.1	%
2011	682,500	9.9	%		11,621		17.03	9.0	%
2012	423,183	6.2	%		9,020		21.31	7.0	%
2013	722,942	10.5	%		15,680		21.69	12.2	%
2014	386,249	5.6	%		8,463		21.91	6.6	%
2015	507,046	7.4	%		7,826		15.43	6.1	%
2016 and thereafter	167,107	2.4	%		4,084		24.44	3.2	%
	6,871,412	100.0	%	$	128,428	$	18.69	100.0	%

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

Page 25

Joint Ventures Development

Dollars in thousands

Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/05		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Sonoma	50	%	Des Moines	75,000	$	9,364	$	8,621	65	%	2Q 05	2Q 06
The Vinings at University Center 2/ 3/	50	%	Charlotte	156 units		11,300		9,324	0	%	1Q 06	3Q 06
Weston Lakeside 3/	50	%	Raleigh	332 units		33,200		6,795	0	%	1Q 07	1Q 08
Total or Weighted Average 4/				75,000	$	53,864	$	24,740	65	%
Highwoods’ Share of the above					$	26,932	$	12,370

Placed In Service 5/
Property	Market	Type 1/	In-Service Date	Rentable Square Feet	Investment @ 12/31/05		Occ %		Leasing %
Plaza Colonade, LLC 1/	Kansas City	O	9/1/2005	285,000	$	71,308	77	%	77	%
Summit	Des Moines	O	9/1/2005	35,000		3,442	75	%	90	%
Pinehurst	Des Moines	O	9/1/2005	35,000		3,783	98	%	98	%
				355,000	$	78,533	79	%	80	%

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/ In-service date represents date property is added to statistics for leasable space and occupancy, but does not necessarily represent date that leasing revenues commence at the property

Page 26