Highwoods Properties Inc.
), a real estate investment trust (REIT), has recently completed
its at-the-market (ATM) stock offering program worth $150 million
that it had initiated in May 2011. The company sold over 1 million
shares subsequent to the second quarter of 2012, raising net
proceeds of $33.4 million.
The strategic efforts were aimed to increase the liquidity of the
company. Furthermore, Highwoods is divesting its non-core assets to
raise additional cash. The asset sale is also part of the long-term
strategy of the company to focus on high-growth Sun Belt markets,
which provide above-average job growth owing to its long-term
However, besides improving the short-term liquidity, an increase in
the number of outstanding shares could prove to be an additional
burden for the company in the long run considering its steady
dividend payout strategy. Highwoods has also historically
promulgated a dividend reinvestment and direct stock purchase plan
through which stockholders may purchase additional shares of the
company by reinvesting some or all of the cash dividends received
on the common shares.
Based in Raleigh, North Carolina, Highwoods owns and operates its
properties through its wholly-owned subsidiary Highwoods Realty
Limited Partnerships. The company owns office, industrial, retail
and service center properties, including development projects and
apartment units across the U.S. It also provides customer-related
and fee-based real estate management services for its properties as
well as for third-party clients.
Highwoods is one of the biggest owners and operators of suburban
office, industrial and retail properties in the Southeastern and
Midwestern U.S., providing a complete line of real estate services
to its customers and third parties through a fully-integrated
organization. The core markets of the company include Florida,
Georgia, Iowa, Maryland, Missouri, Mississippi, North Carolina,
South Carolina, Tennessee and Virginia.
We maintain our long-term Neutral recommendation on Highwoods,
which currently retains a Zacks #3 Rank that translates into a
short-term Hold rating. We also have a Neutral recommendation and a
Zacks #3 Rank for
Cousins Properties Inc.
), one of the competitors of Highwoods.
COUSIN PROP INC (CUZ): Free Stock Analysis
HIGHWOODS PPTYS (HIW): Free Stock Analysis
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