Highwoods Properties, Inc. announced a series of investment and financing transactions that closed in the fourth quarter of 2024 and to date in early 2025. The company sold non-core buildings in Raleigh and Tampa for combined gross proceeds of $166.4 million.
These dispositions included one 170,000 square foot office building in North Raleigh and three buildings totaling 616,000 square feet in the Westshore submarket of Tampa. These properties were 88% occupied and projected to generate $13.6 million of GAAP net operating income and $13.0 million of cash net operating income in 2025.
In a strategic move, Highwoods acquired the fee simple title to the land underneath its Century Center assets in Atlanta for $50.6 million during the fourth quarter of 2024. This acquisition consolidates ownership of the 12-building, 1.7 million square foot office park, providing greater long-term flexibility and certainty.
The company also raised net proceeds of $51.3 million by selling 1.59 million shares of its common stock at an average gross sales price of $32.71 per share in the fourth quarter of 2024. These proceeds, combined with disposition funds, bolster the balance sheet for future external growth opportunities.
President and CEO Ted Klinck stated that the disposition activity aligns with the company's strategy of selling non-core assets with limited future upside to recycle into higher-quality buildings. The combined proceeds from dispositions and the equity raise strengthen the company's financial position.
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