Highwoods Properties focuses on building its portfolio of office, industrial, and retail properties. The company was founded in 1978 and is based in Raleigh, North Carolina.
HIW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Highwoods Properties Inc. To summarize, we found that Highwoods Properties Inc ranked in the 78th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 471.67%. In terms of the factors that were most noteworthy in this DCF analysis for HIW, they are:
Highwoods Properties Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 5.2% of tickers in our DCF set.
Highwoods Properties Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 11.59% of stocks in its sector (Real Estate).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DEI, VNO, CORR, WHLR, and GEO can be thought of as valuation peers to HIW, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
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RALEIGH, N.C., July 30, 2020 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE: HIW) (the “Company”) announced today that Highwoods Realty Limited Partnership, the operating partnership through which the Company conducts its operations (the “Operating Partnership”), has increased the principal amount of its outstanding 3.20% Notes due 2021 (CUSIP 431282 AN2) (the “Notes”) that it can purchase under its previously announced tender offer (the “Offer”) from $100,000,000 to $150,000,000 (as amended by this press release, the “Tender Cap”), subject to the conditions set forth in the offer to purchase, dated July 30, 2020 (as amended or supplemented from time to time, the “Offer to Purchase”). Except as stated herein, all other terms and conditions of the Offer, as described in the Offer t...
RALEIGH, N.C., July 30, 2020 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE: HIW) (the “Company”) announced today that Highwoods Realty Limited Partnership, the operating partnership through which the Company conducts its operations, has priced a $400 million offering of 2.600% unsecured notes under its existing shelf registration statement. The notes are due February 1, 2031 and were priced to yield 2.645%. The offering is expected to close on August 13, 2020, subject to customary closing conditions. The operating partnership intends to use the net proceeds from the sale of the notes to finance the tender offer for the operating partnership’s outstanding 3.20% Notes due 2021, to repay outstanding debt (including the amounts outstanding under its $600 million unsecured revolving...