STAG - Why Should You Retain Highwoods Stock in Your Portfolio? | Benzinga
Highwoods Properties (NYSE: HIW) is well-positioned to benefit from the growing demand for its premier office properties concentrated in high-growth Sun Belt markets. Its disciplined capital-recycling program and accretive development projects are other tailwinds. A healthy balance sheet position augurs well for long-term growth. However, competition from other industry players and elevated interest rates pose concerns for the company.
What's Aiding HIW?
Highwoods has a large part of its portfolio concentrated in high-growth Sun Belt markets, and the company is poised to benefit from this portfolio focus. These markets exhibit promising long-term favorable demographic trends and are expected to continue experiencing above-average job growth. HIW also has a well-diversified tenant base that includes several industry bellwethers. These factors are expected to support its rent growth over the long term.
Highwoods is seeing a recovery in demand for its high-quality and well-placed office properties, as highlighted by a rebound in new leasing volume. The company leased 922,167 square feet of second-generation office space in the first quarter of 2024, including 422,889 square feet of new leases.
With the next cycle of office space demand likely to be driven by inbound migration and significant investments announced by ...