Highwoods Properties Inc (NYSE:HIW) Reports Mixed Q2 2025 Earnings with Revenue Miss but Strong EPS Beat

Highwoods Properties Inc (NYSE:HIW) reported its second-quarter 2025 earnings, revealing mixed results compared to analyst expectations. The real estate investment trust (REIT) posted revenue of $200.6 million, falling short of the consensus estimate of $205.7 million. However, the company outperformed significantly on earnings per share (EPS), reporting $0.89 against an estimated $0.17.

Key Takeaways from the Earnings Report

• Revenue Miss: The $200.6 million in revenue for Q2 2025 was approximately 2.5% below analyst projections. This suggests potential challenges in leasing or occupancy rates within Highwoods’ portfolio, which primarily consists of office properties in key Southern U.S. markets.
• Strong EPS Beat: Despite the revenue shortfall, EPS came in at $0.89, far exceeding the $0.17 estimate. This could indicate improved cost management, one-time gains, or non-operating income contributing to profitability.
• Market Reaction: Following the earnings release, the stock showed no immediate after-hours movement, remaining flat. Over the past month, shares have declined by approximately 2.7%, reflecting broader market skepticism or sector-specific pressures.

Comparing Outlook to Analyst Estimates

The press release did not provide explicit forward guidance, making it difficult to assess whether management’s expectations align with Wall Street’s projections. Analysts currently estimate Q3 2025 revenue at $207.9 million and EPS at $0.18, while full-year 2025 revenue is projected at $828.2 million.

Broader Context

Highwoods operates in a challenging office real estate environment, where hybrid work trends continue to impact demand. The company’s focus on "best business districts" in Sun Belt markets may offer some resilience, but the revenue miss suggests ongoing headwinds. The strong EPS performance, however, could signal effective operational adjustments.

For a deeper dive into Highwoods’ earnings trends and future estimates, review the detailed earnings and estimates data.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.