FX.co ★ Highwoods Properties Q1 FFO Down; Updates 2024 FFO/shr Outlook

In the first quarter, Highwoods Properties Inc.'s funds available for common shareholder operations fell to $96.0 million, equating to $0.89 per share, from last year's $105.7 million or $0.98 per share.

The net income for common stockholders decreased to $26.1 million or $0.25 per share from the preceding year's $43.8 million, or $0.42 per share. Against the expectations of analysts from Thomson Reuters, who predicted company earnings of $0.18 per share, these figures reveal a significant drop. It's important to note that these analyst estimates usually exclude any one-off items.

Furthermore, the rental and other revenues for the first quarter indicated a decline, dropping to $211.28 million from $212.75 million the previous year. This decrease was unexpected, with analysts projecting a revenue of $206.78 million for the quarter.

Regarding its full year 2024 funds from operations forecast, Highwoods Properties Inc. has adjusted its outlook to $3.46 to $3.61 per share in comparison with the prior estimate of $3.46 to $3.64 per share. This modification to the 2024 prediction incorporates a $0.03 per share dilutive effect arising from dispositions that have concluded since the previous earnings release. Additionally, it includes the impact of potentially elevated interest rates, which are somewhat balanced by an increment of $0.015 per share in projected Net operating income.