Raleigh, NC-based real estate investment trust (REIT),
Highwoods Properties Inc.
) inked a lease deal with a new customer for 28,000 square foot of
space at Green V in Nashville. The transaction reflects the decent
demand for the company's properties in this area.
This space was previously occupied by
Lifepoint Hospitals Inc.
) (vacated in Feb 2014) for which Highwoods constructed a 203,000
square foot build-to-suit facility, earlier this year. Notably,
with this new lease deal, Highwoods managed to relet 94% of the
former LifePoint space. Last month, the company inked a lease deal
with an existing customer for 91,000 square foot of space at
Highwoods Plaza II in Nashville. Notably, Highwoods Plaza II is one
of the two buildings LifePoint used to occupy, apart from Green
As a matter of fact, the Nashville market is recuperating well
from a tepid economy and is experiencing growth in population as
well as employment. Its economy is diverse and has significant
growth potential. Wage income is also improving while there is a
rising demand for premium office space.
Highwoods' efficiency in releting space is encouraging and we
believe this will help improve its tenant base and pave the way for
bottom-line growth in the future. Particularly, the company has
been focusing on shifting its portfolio mix to high growth markets
and offloading its asset base in non-core markets.
Highwoods currently carries a Zacks Rank #3 (Hold). Investors
interested in the REIT industry may also consider stocks like
Duke Realty Corporation
SL Green Realty Corp.
). Both stocks carry a Zacks Rank #2 (Buy).
FFO, a widely used metric to gauge the performance of REITs, is
obtained after adding depreciation and amortization and other
non-cash expenses to net income.
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HIGHWOODS PPTYS (HIW): Free Stock Analysis
DUKE REALTY CP (DRE): Free Stock Analysis
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