Highwoods Properties (HIW) Reported Higher Third Quarter Sales, Is It Still Below Fair Value?

Highwoods Properties (HIW) just dropped its third quarter 2026 report, with investors parsing higher sales, higher net income and fresh dividend declarations to reassess what this office REIT’s cash flows might be worth.

Recent action around Highwoods Properties has been choppy, with the share price down 13.31% over 90 days but still ahead 15.22% year to date. At the same time, the 3-year total shareholder return of 108.68% and the affirmed common and preferred dividends frame today’s US$29.82 level as a reassessment of risk rather than a clear momentum trend in either direction.

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So the stock is lower on a three month view, higher on the year, and still throwing off cash to shareholders. Does that mix of income, volatility and current price at Highwoods Properties skew the risk reward toward buyers or toward patience as the valuation work starts?

Most Popular Narrative: 8% Undervalued

On the most followed view of Highwoods Properties, a fair value of about $32.33 sits modestly above the latest $29.82 close. This puts the current pullback in the context of a limited discount rather than a deep dislocation.

The main thing that has to go right is Highwoods Properties converting its Sun Belt BBD leasing momentum and sizable leased, not yet occupied pipeline into durable cash flow once free rent burns off and elevated leasing CapEx normalizes.

The numbers imply the share price already reflects a fairly valued, bearish view that Highwoods Properties’ stronger Sun Belt markets, embedded NOI ramp, and capital recycling will offset dividend strain and dilution from noncore asset sales without leaving much margin for disappointment.

See why 8 investors see Highwoods Properties as 8% undervalued.

Result: Fair Value of $32.33 (UNDERVALUED)

Still, the Highwoods Properties story can change quickly if remote and hybrid work keep pressuring office demand, or if elevated leasing CapEx lingers and squeezes cash generation.

Find out about the key risks to this Highwoods Properties narrative.

Next Steps

Mixed messages so far on Highwoods Properties, with both upside angles and clear concerns in play, put the burden back on you to review the evidence quickly and weigh the 3 key rewards and 3 important warning signs.

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