SUPPLEMENTAL INFORMATION...Jed Reagan fully-integrated office REIT that owns, develops, acquires,...

SUPPLEMENTAL

INFORMATIONFourth Quarter 2016

Page

Summary and Corporate Information ……………………………………………………………………………………………………………………………. i, ii, iii

Consolidated Statements of Income …………………………………………………………………………………………………………………………………………….1

Funds from Operations and Additional Information ………………………………………………………………………………………………………………..2

Consolidated Balance Sheets ………………………………………………………………………………………………………………………………………..3

Components of Net Asset Value…………………………………………………………………………………………………………………………………………………...4

Revenue Detail; Discontinued Operations Detail……………………………………………………………………………………………………………………………………..5

Capitalization ……………………………………………………………………………………………………………………………………………………………..6

Mortgages and Notes Payable Summary ……………………………………………………………………………………………………………………………….7

Mortgages and Notes Payable Detail ………………………………………………………………………………………………………………………………….8

Portfolio Summary ………………………………………………………………………………………………………………………………………………….9, 10, 11

Occupancy Trends …………………………………………………………………………………………………………………………………………………………12

Office Leasing Statistics...………………………………………………………………………………………………………………………………………….13

Office Leasing Statistics and Rental Rate Comparisons by Market ……………………………………………………………………………………………………………………………..14

Office Lease Expirations ……………………………………………………………………………………………………………..…………………………………….15

Office Lease Expirations by Market by Year …………………………………………………………………………………………………………………………16

Customer Diversification ……………………………………………………………………………………………………………………………………………17

Same Property Performance ……………………………………………………………………………………………………………………………………….18

Acquisition Activity …………………………………………………………………………………………………………………………………………………19

Disposition Activity …………………………………………………………………………………………………………………………………………………20

Development Activity ……………………………………………………………………………………………………………………………….……………….21

Land Held for Development …………………………………………………………………………………………………………………………………………22

Unconsolidated Joint Venture Financial Information…………………………………………………………………………………………………………………………23

Joint Ventures Summary and Dispositions Activity …………………………………………………………………………………………………………………………24

The information within refers to all Highwoods Properties' wholly-owned entities unless noted otherwise. Wholly-owned entities include properties

classified as both continuing operations and discontinued operations and exclude properties recorded on our Balance Sheet that relate to joint

venture investments that are consolidated under GAAP.

All financial information contained in this document is unaudited. In addition, certain matters presented in this supplemental, including estimates

of net operating income, pre-leasing commitments and the cost, timing and stabilization of announced development projects, are forward-looking

statements within the meaning of the federal securities laws. Although Highwoods believes that the expectations reflected in such forward-looking

statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause

actual results to differ materially from Highwoods’ current expectations include, among others, general economic conditions, local real estate

conditions, the timely development and lease-up of properties, and other risks listed at the end of our fourth quarter earnings release and

detailed from time to time in the Company’s SEC reports. Highwoods assumes no obligation to update or supplement forward-looking statements

that become untrue due to subsequent events.

This supplemental also includes non-GAAP financial measures, such as funds from operations (FFO) and net operating income (NOI). Definitions

of FFO and NOI and an explanation of management's view of the usefulness and risks of FFO and NOI can be found toward the end of our fourth

quarter earnings release.

COVER

Bridgestone

Nashville, TN

Table of Contents

TOC

Three Months Ended

12/31/16 12/31/15

Financial:

Revenues 1/ 167,646$ 160,126$

Net operating income (NOI) 1/ 110,276$ 103,499$

Same property cash NOI growth 5.8% 4.4%

Funds from operations per share 0.82$ 0.82$

Weighted average common shares outstanding, diluted 103,640 98,607

Balance Sheet:

Leverage (includes preferred stock) based on gross book assets 34.7% 44.9%

Debt-to-EBITDA 4.78x 6.13x

Unencumbered NOI % 92.6% 91.0%

Credit facility availability 475,000$ 176,000$

Operations:

Quarter end occupancy 93.1% 93.1%

Office square feet leased 726 1,047

Office GAAP rent growth 2/ 13.9% 10.6%

Average office cash rental rate per square foot for in-place leases 24.12$ 23.49$

Twelve Months Ended

12/31/16

Capital Activity:

Building acquisitions 83,500$

Building dispositions 694,778$

Development pipeline 540,540$

Pipeline pre-leased percent 70.5%

1/ Includes continuing operations only.

2/ GAAP rent growth is calculated by comparing average cash rent psf over the term (GAAP rent) of the new lease to the average cash rent psf over

the term related to the previous lease in the same space. Adjustments are made if and to the extent necessary to illustrate the current and prior

deal on a consistent gross lease basis.

Summary (amounts in thousands, except percentages, ratios, and per share amounts)

i

Board of Directors Division Officers

Chuck Anderson Jim Bacchetta

Gene Anderson Vice President, Atlanta

Carlos Evans Rick Dehnert

Ed Fritsch Vice President, Greensboro

David Hartzell, Ph.D. Steve Garrity

Sherry Kellett Vice President, Orlando

Temple Sloan, Jr., Chair Steve Guinn

Vice President, Memphis

Corporate Officers Skip Hill

Vice President, Raleigh

Dan Clemmens Walton Makepeace

Vice President, Chief Accounting Officer Vice President, Richmond

Hugh Esleeck Brian Reames

Vice President, Treasurer Senior Vice President, Nashville

Ed Fritsch Andy Wisniewski

President, Chief Executive Officer Vice President, Pittsburgh

Ted Klinck Dan Woodward

Executive Vice President, Chief Operating and Vice President, Tampa

Investment Officer

Carman Liuzzo

Senior Vice President, Investments

Brendan Maiorana

Senior Vice President, Finance and Investor Relations

Art McCann

Vice President, Chief Information Officer

Jeff Miller

Executive Vice President, General Counsel and Secretary

Mark Mulhern

Executive Vice President, Chief Financial Officer

Randy Roberson

Senior Vice President, Development

Mike Starchville

Senior Vice President, Asset Management

Corporate Information

ii

Research Coverage Corporate Headquarters

Highwoods Properties, Inc.

Bank of America/Merrill Lynch Morgan Stanley 3100 Smoketree Court, Suite 600

Jamie Feldman Sumit Sharma Raleigh, NC 27604

646-855-5808 212-761-7567 919-872-4924

BTIG Oppenheimer & Co. Stock Exchange

Tom Catherwood Steve Manaker NYSE: HIW

212-738-6140 212-667-5950

Investor Relations

Capital One Securities RW Baird Brendan Maiorana

Tom Lesnick David Rodgers Vice President, Finance and Investor Relations

571-633-8191 216-737-7341 Phone: 919-431-1529

Ryan Wineman Fax: 919-431-1439

571-633-8414 Stifel Nicolaus [email protected]

John Guinee http://www.highwoods.com/

Citigroup Global Markets 443-224-1307

Michael Bilerman Erin Aslakson Information Request

212-816-1383 443-224-1350 To request a Supplemental Package or Annual Report

Emmanuel Korchman or to be added to our e-mail distribution list, please contact

212-816-1382 SunTrust Robinson Humphrey Investor Relations.

Michael Lewis

D.A. Davidson & Co. 212-319-5659

Barry Oxford The Company

212-240-9871 Highwoods Properties, headquartered in Raleigh, is a publicly

traded (NYSE:HIW) real estate investment trust (“REIT”) and

Green Street Advisors a member of the S&P MidCap 400 Index. The Company is a

Jed Reagan fully-integrated office REIT that owns, develops, acquires, leases and

949-640-8780 manages properties primarily in the best business districts (BBDs)

of Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh,

Jefferies & Company, Inc. Raleigh, Richmond and Tampa. For more information about

Jonathan Petersen Highwoods Properties, please visit our website at:

212-284-1705 www.highwoods.com.

Corporate Information

iii

http://www.highwoods.com/

http://www.highwoods.com/

12/31/16 12/31/15 12/31/16 9/30/16 6/30/16 3/31/16 12/31/15

Rental and other revenues 665,634$ 604,671$ 167,646$ 166,269$ 166,860$ 164,859$ 160,126$

Operating expenses:

Rental property and other expenses 231,085 215,941 57,370 58,620 57,515 57,580 56,627

Depreciation and amortization 220,140 201,918 58,406 52,923 55,317 53,494 56,160

General and administrative 38,153 37,642 8,826 9,863 8,327 11,137 8,744

Total operating expenses 489,378 455,501 124,602 121,406 121,159 122,211 121,531

Interest expense:

Contractual 73,142 82,245 17,031 17,722 18,674 19,715 20,462

Amortization of debt issuance costs 3,506 3,645 861 844 811 990 1,144

Financing obligation - 162 - - - - -

76,648 86,052 17,892 18,566 19,485 20,705 21,606

Other income:

Interest and other income 2,338 1,969 454 833 534 517 488

Losses on debt extinguishment - (243) - - - - (23)

2,338 1,726 454 833 534 517 465

Income from continuing operations before disposition of investment properties

and activity in unconsolidated affiliates 101,946 64,844 25,606 27,130 26,750 22,460 17,454

Gains on disposition of property 14,807 11,444 647 3,902 5,861 4,397 863

Gain on disposition of investment in unconsolidated affiliate - 4,155 - - - - -

Equity in earnings of unconsolidated affiliates 5,793 5,078 783 2,808 917 1,285 711

Income from continuing operations 122,546 85,521 27,036 33,840 33,528 28,142 19,028

Discontinued operations:

Income from discontinued operations 4,097 15,739 - - - 4,097 2,889

Net gains on disposition of discontinued operations 414,496 - - - - 414,496 -

418,593 15,739 - - - 418,593 2,889

Net income 541,139 101,260 27,036 33,840 33,528 446,735 21,917

Net (income) attributable to noncontrolling interests in the Operating Partnership (15,596) (2,918) (720) (926) (939) (13,011) (622)

Net (income) attributable to noncontrolling interests in consolidated affiliates (1,253) (1,264) (312) (319) (314) (308) (316)

Dividends on Preferred Stock (2,501) (2,506) (624) (624) (627) (626) (627)

Net income available for common stockholders 521,789$ 94,572$ 25,380$ 31,971$ 31,648$ 432,790$ 20,352$

Earnings per Common Share – basic:

Income from continuing operations available for common stockholders 1.17$ 0.84$ 0.25$ 0.32$ 0.32$ 0.27$ 0.18$

Income from discontinued operations available for common stockholders 4.13 0.16 - - - 4.22 0.03

Net income available for common stockholders 5.30$ 1.00$ 0.25$ 0.32$ 0.32$ 4.49$ 0.21$

Weighted average Common Shares outstanding - basic 98,439 94,404 100,733 98,973 97,648 96,373 95,617

Earnings per Common Share - diluted:

Income from continuing operations available for common stockholders 1.17$ 0.84$ 0.25$ 0.32$ 0.32$ 0.27$ 0.18$

Income from discontinued operations available for common stockholders 4.13 0.16 - - - 4.22 0.03

Net income available for common stockholders 5.30$ 1.00$ 0.25$ 0.32$ 0.32$ 4.49$ 0.21$

Weighted average Common Shares outstanding - diluted 101,398 97,406 103,640 101,939 100,628 99,357 98,607

Dividends declared per Common Share 2.50$ 1.70$ 1.225$ 0.425$ 0.425$ 0.425$ 0.425$

Net income available for common stockholders:

Income from continuing operations available for common stockholders 115,461$ 79,308$ 25,380$ 31,971$ 31,648$ 26,462$ 17,549$

Income from discontinued operations available for common stockholders 406,328 15,264 - - - 406,328 2,803

Net income available for common stockholders 521,789$ 94,572$ 25,380$ 31,971$ 31,648$ 432,790$ 20,352$

Year Ended Three Months Ended

Consolidated Statements of Income (amounts in thousands, except per share amounts)

1


12/31/16 12/31/15 12/31/16 9/30/16 6/30/16 3/31/16 12/31/15

Funds from operations:

Net income 541,139$ 101,260$ 27,036$ 33,840$ 33,528$ 446,735$ 21,917$

Net (income) attributable to noncontrolling interests in consolidated affiliates (1,253) (1,264) (312) (319) (314) (308) (316)

Depreciation and amortization of real estate assets 217,533 199,449 57,753 52,303 54,680 52,797 55,476

(Gains) on disposition of depreciable properties (8,915) (9,147) - - (5,861) (3,054) -

(Gain) on disposition of investment in unconsolidated affiliate - (4,155) - - - - -

Unconsolidated affiliates:

Depreciation and amortization of real estate assets 2,978 3,203 751 736 749 742 791

(Gains) on disposition of depreciable properties (2,173) (946) - (1,842) - (331) -

Discontinued operations:

Depreciation and amortization of real estate assets - 13,820 - - - - 3,543

(Gains) on disposition of depreciable properties (414,496) - - - - (414,496) -

Funds from operations 334,813 302,220 85,228 84,718 82,782 82,085 81,411

Dividends on Preferred Stock (2,501) (2,506) (624) (624) (627) (626) (627)

Funds from operations available for common stockholders 332,312$ 299,714$ 84,604$ 84,094$ 82,155$ 81,459$ 80,784$

Funds from operations available for common stockholders per share 3.28$ 3.08$ 0.82$ 0.82$ 0.82$ 0.82$ 0.82$

Weighted average shares outstanding 101,398 97,406 103,640 101,939 100,628 99,357 98,607

Additional information: 1/ 2/

Losses on debt extinguishment -$ 243$ -$ -$ -$ -$ 23$

Property acquisition costs 751 1,004 - 751 - - -

Straight-line rental income (23,846) (22,308) (5,328) (5,140) (6,786) (6,592) (5,813)

Straight-line rental write-offs related to termination fees 545 484 1 210 - 334 143

Amortization of lease incentives 1,779 1,534 405 273 390 711 372

Depreciation of non-real estate assets 2,101 2,241 525 495 514 567 622

Ground lease straight-line rent expense 398 407 101 105 95 97 97

Share-based compensation expense 6,251 6,884 839 862 994 3,556 888

Amortization of debt issuance costs 3,506 3,645 861 844 811 990 1,144

Amortization of accumulated other comprehensive income 318 317 80 80 79 79 80

Amortization of Harborview financing obligation - (541) - - - - -

Amortization of acquired above/(below) market leases (3,775) (1,447) (802) (693) (1,678) (602) (499)

Non-incremental revenue generating capital expenditures incurred: 3/

Building improvements (40,202) (28,259) (16,900) (12,549) (7,173) (3,580) (11,837)

2nd generation tenant improvements (51,505) (53,989) (13,920) (14,078) (10,931) (12,576) (12,996)

2nd generation lease commissions (22,593) (24,104) (6,130) (7,028) (5,429) (4,006) (6,821)

Common dividends and unit distributions paid (171,749) (165,296) (43,837) (43,177) (42,622) (42,113) (41,846)

1/ Includes those properties classified as discontinued operations.

2/ Increase or (decrease) to cash flows.

3/ Excludes capital expenditures (a) incurred within 12 months prior to the disposition date for buildings sold, (b) related to first generation leases and leases

with respect to vacant space in acquired buildings, (c) building improvements that are recoverable from future operating cost savings, (d) building improvements

that constitute part of the total investment cost disclosed in connection with an acquisition and (e) property re-developments.

Funds from Operations and Additional Information (amounts in thousands, except per share amounts)

2

12/31/16 12/31/15

Assets:

Real estate assets, at cost:

Land 474,375$ 443,705$

Buildings and tenant improvements 4,313,373 4,063,328

Development in-process 279,602 194,050

Land held for development 77,355 68,244

5,144,705 4,769,327

Less-accumulated depreciation (1,134,103) (1,007,104)

Net real estate assets 4,010,602 3,762,223

Real estate and other assets, net, held for sale - 240,948

Cash and cash equivalents 49,490 5,036

Restricted cash 29,141 16,769

Accounts receivable, net of allowance of $624 and $928, respectively 17,372 29,077

Mortgages and notes receivable, net of allowance of $105 and $287, respectively 8,833 2,096

Accrued straight-line rents receivable, net of allowance of $692 and $257, respectively 172,829 150,392

Investments in and advances to unconsolidated affiliates 18,846 20,676

Deferred leasing costs, net of accumulated amortization of $140,081 and $115,172, respectively 213,500 231,765

Prepaid expenses and other assets, net of accumulated amortization of $19,904 and $17,830,

respectively 40,437 26,649

Total Assets 4,561,050$ 4,485,631$

Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:

Mortgages and notes payable, net 1,948,047$ 2,491,813$

Accounts payable, accrued expenses and other liabilities 313,885 233,988

Liabilities held for sale - 14,119

Total Liabilities 2,261,932 2,739,920

Commitments and contingencies

Noncontrolling interests in the Operating Partnership 144,802 126,429

Equity:

Preferred Stock, $.01 par value, 50,000,000 authorized shares;

8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per

share), 28,920 and 29,050 shares issued and outstanding, respectively 28,920 29,050

Common Stock, $.01 par value, 200,000,000 authorized shares;

101,665,554 and 96,091,932 shares issued and outstanding, respectively 1,017 961

Additional paid-in capital 2,850,881 2,598,242

Distributions in excess of net income available for common stockholders (749,412) (1,023,135)

Accumulated other comprehensive income/(loss) 4,949 (3,811)

Total Stockholders' Equity 2,136,355 1,601,307

Noncontrolling interests in consolidated affiliates 17,961 17,975

Total Equity 2,154,316 1,619,282

Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity 4,561,050$ 4,485,631$

Consolidated Balance Sheets (dollars in thousands)

3

Note: The purpose of providing the following information at the beginning of each year is to enable readers to derive their own estimate of net asset

value. The Company updates this information once annually based on management's assumptions regarding projected current year net operating

income for the existing property portfolio as of the date of initial publication (February 7, 2017). This information is not intended to be an asset-

by-asset or enterprise valuation.

Wholly-owned properties projected cash net operating income (NOI) 1/

Office 407,286$

Industrial 9,049

Total Net Operating Income 416,335$

Highwoods share of projected NOI at Joint Ventures 1/

Office 7,728$

Other income

Development, leasing and management fees 4,109$

In Service Assets Not Fairly Valued by Capitalized NOI Method

Wholly-owned assets 141,564$

Highwoods' share of joint venture assets 13,213

Total 154,777$

Add other assets:

Development investment at cost incurred 355,456$

Land held for development at market value 122,500

Cash and cash equivalents 49,490

Restricted cash 29,141

Accounts receivable, net 17,372

Notes receivable and prepaid expenses 49,270

Highwoods' share of unconsolidated joint venture other assets 10,899

Deduct partner's share of consolidated joint venture other assets (2,138)

Total other assets 631,990$

Liabilities:

Mortgages and notes payable 1,948,047$

Accounts payable, accrued expenses and other liabilities 313,885

Deduct partner's share of Consolidated joint venture's liabilities (355)

Market value of debt adjustment 17,563

Preferred stock, at liquidation value 28,920

Highwoods' share of unconsolidated joint ventures liabilities 46,620

Market value of debt adjustment for joint venture debt 2/ 251

Total deductions 2,354,931$

1/ Projected 2017 Cash NOI for the existing property portfolio excludes straight-line income, lease termination fee income, fee income, NOI related to

developments listed on page 21, and NOI related to assets undervalued by a capitalized NOI method. Assets undervalued by a capitalized NOI

method are identified generally by occupancies under 70% or free rent that lowers the cash NOI to effectively less than 70% of a stabilized cash

NOI. For the assets in this category an NOI capitalization approach is not appropriate and accordingly an alternative valuation methodology

has been applied.

2/ In accordance with prior practice, we included an adjustment to mark our debt including our pro rata share of unconsolidated joint venture to

estimated fair value as of December 31, 2016.

Components of Net Asset Value (dollars in thousands)

4


12/31/16 12/31/15 12/31/16 9/30/16 6/30/16 3/31/16 12/31/15

Continuing Operations Revenue Detail:

Rental and other revenues

Contractual rents, net 561,242$ 513,909$ 144,109$ 140,943$ 138,958$ 137,232$ 136,927$

Straight-line rental income, net 23,909 22,054 5,328 5,140 6,786 6,655 5,613

Cost recovery income, net 48,730 45,247 10,930 12,539 12,672 12,589 10,728

Lease termination fees 2,311 990 3 350 20 1,938 110

Other miscellaneous operating revenues 29,442 22,471 7,276 7,297 8,424 6,445 6,748

665,634$ 604,671$ 167,646$ 166,269$ 166,860$ 164,859$ 160,126$

Discontinued Operations:

Rental and other revenues 8,484$ 50,935$ -$ -$ -$ 8,484$ 13,298$

Operating expenses:

Rental property and other expenses 3,334 20,805 - - - 3,334 5,570

Depreciation and amortization - 14,039 - - - - 3,597

General and administrative 1,388 2,366 - - - 1,388 1,753

Total operating expenses 4,722 37,210 - - - 4,722 10,920

Interest expense 85 621 - - - 85 130

Other income 420 2,635 - - - 420 641

Income from discontinued operations 4,097 15,739 - - - 4,097 2,889

Net gains on disposition of discontinued operations 414,496 - - - - 414,496 -

Total income from discontinued operations 418,593$ 15,739$ -$ -$ -$ 418,593$ 2,889$

Revenue Detail; Discontinued Operations Detail (dollars in thousands)

5

12/31/16 9/30/16 6/30/16 3/31/16 12/31/15

Mortgages and Notes Payable (see pages 7 & 8): 1,948,047$ 1,901,066$ 2,082,207$ 2,100,937$ 2,491,813$

Financing Obligation: -$ -$ -$ -$ 7,402$

Preferred Stock (at liquidation value):

Series A 8 5/8% Cumulative Redeemable 28,920$ 28,920$ 28,935$ 29,030$ 29,050$

Common Shares and Units Outstanding:

Common stock outstanding 101,666 100,204 98,571 97,392 96,092

Noncontrolling interest partnership units 2,839 2,840 2,867 2,900 2,900

Total Common Shares and Units outstanding 104,505 103,044 101,438 100,292 98,992

Stock price at period end 51.01$ 52.12$ 52.80$ 47.81$ 43.60$

Market value of common equity 5,330,800$ 5,370,653$ 5,355,926$ 4,794,961$ 4,316,051$

Total capitalization 7,307,767$ 7,300,639$ 7,467,068$ 6,924,928$ 6,844,316$

Capitalization

Capitalization (dollars, shares and units in thousands)

Debt26.7%

Preferred Equity0.4%

Common Equity72.9%

6

Balances Outstanding: 12/31/16 9/30/16 6/30/16 3/31/16 12/31/15

Secured:

Conventional fixed rate 128,204$ 129,013$ 130,001$ 174,475$ 175,281$

Unsecured - Fixed:

Fixed rate bonds and notes 1,126,145 1,125,942 1,125,739 1,125,536 1,125,333

Bank term loan 1/ 225,000 225,000 225,000 225,000 225,000

Unsecured - fixed total 1,351,145 1,350,942 1,350,739 1,350,536 1,350,333

Unsecured - Floating:

Bank term loan 200,000 200,000 200,000 200,000 200,000

Bank term loan 125,000 125,000 125,000 125,000 125,000

Bank term loan 150,000 75,000 - - -

Bridge facility - - - - 350,000

Credit facility 2/ - 28,000 283,000 258,000 299,000

Unsecured - floating total 475,000 428,000 608,000 583,000 974,000

Unsecured total 1,826,145 1,778,942 1,958,739 1,933,536 2,324,333

Total 1,954,349$ 1,907,955$ 2,088,740$ 2,108,011$ 2,499,614$

Total Net of Debt Issuance Costs 1,948,047$ 1,901,066$ 2,082,207$ 2,100,937$ 2,491,813$

End of Period Weighted Average Interest Rates:

Secured:

Conventional fixed rate 4.35% 4.35% 4.35% 5.14% 5.13%

Unsecured - Fixed:

Fixed rate bonds 5.03% 5.03% 5.03% 5.03% 5.03%

Bank term loan 1/ 2.78% 2.78% 2.78% 2.78% 2.78%

Unsecured - fixed total 4.66% 4.66% 4.66% 4.66% 4.66%

Unsecured - Floating:

Bank term loan 1.82% 1.72% 1.66% 1.64% 1.44%

Bank term loan 1.77% 1.62% 1.55% 1.54% 1.41%

Bank term loan 1.72% 1.62% - - -

Bridge facility - - - - 1.49%

Credit facility 2/ - 1.62% 1.55% 1.54% 1.45%

Unsecured - floating total 1.77% 1.67% 1.59% 1.57% 1.46%

Unsecured total 3.91% 3.94% 3.70% 3.73% 3.32%

Weighted Average 3.94% 3.97% 3.74% 3.84% 3.44%

Maturity Schedule

1/ The interest rate on this loan is based on one-month LIBOR plus a spread based on the company's credit rating. Swap agreements effectively

fix one-month LIBOR until January 2019.

2/ Maturity date assumes exercise of two six-month extension options.

3/ All periods exclude annual principal amortization.

Mortgages and Notes Payable Summary (dollars in thousands)

-

100

200

300

400

500

600

2016 2017 2018 2019 2020 2021 2022 2023

To

tal

Deb

t (i

n m

illio

ns)

Secured Debt 3/ Unsecured Debt

Weighted Average Maturity = 2.9 years

$

7

Undepreciated

Secured Loans Loan Book Value of

Effective Maturity Balance Real Estate & Related

Lender Rate Date 12/31/16 Assets Secured

Wells Fargo Bank, N.A. 4.22% Nov-17 109,138$ 235,309$

Wells Fargo Bank, N.A. 5.36% Jul-17 19,066 22,300

4.35% 128,204 257,609$

Unsecured Bonds

Bonds 5.88% Mar-17 379,661

Bonds 3.36% Jun-21 298,072

Bonds 3.75% Jan-23 248,412

Bonds 7.50% Apr-18 200,000

5.03% 1,126,145

Unsecured Loans

Credit facility 1/ 2/ - Jan-19 -

Bank term loan 3/ 2.78% Jun-20 225,000

Bank term loan 1/ 1.82% Jan-19 200,000

Bank term loan 1/ 1.77% Jun-20 125,000

Bank term loan 1/ 1.72% Jan-22 150,000

2.10% 700,000

Total Debt 3.94% 1,954,349$

Total Net of Debt Issuance Costs 1,948,047$

Secured and Unsecured Debt Fixed and Variable Rate Debt

1/ Floating rate loans based on one-month LIBOR.

2/ Maturity date assumes exercise of two six-month extension options.

3/ This loan maturing June 2020 is swapped to an effective fixed rate of 2.78% until January 2019, including the current spread based on the

company's credit rating.

Mortgages and Notes Payable Detail (dollars in thousands)

Secured6.6%

Unsecured93.4%

Variable24.3%

Fixed75.7%

Bond Covenants as of December 31, 2016

Overall indebtedness (<60%) 36.8%

Secured indebtedness (<40%) 2.4%

Income available for debt service (>1.5x) 5.30x

Total unencumbered assets to unsecured debt (>200%) 276.0%

Agency Rating Outlook Affirmed

S&P BBB Stable 4/27/16

Moody's Baa2 Stable 1/6/17

8

12/31/16 9/30/16 6/30/16 3/31/16 12/31/15

Total In-Service

Rentable Square Feet

Office 27,002,000 27,080,000 26,836,000 26,922,000 27,282,000

Industrial 2,413,000 2,413,000 2,413,000 2,413,000 2,413,000

Retail 59,000 59,000 59,000 59,000 835,000

Total 29,474,000 29,552,000 29,308,000 29,394,000 30,530,000

Occupancy

Office 92.9% 92.2% 92.0% 92.2% 92.6%

Industrial 95.6% 98.4% 98.4% 98.3% 97.3%

Retail 100.0% 93.0% 93.0% 96.4% 96.0%

Total 93.1% 92.7% 92.5% 92.7% 93.1%

Same Property:

Rentable Square Feet

Office 24,231,000 24,231,000 24,231,000 24,231,000 24,231,000

Industrial 2,413,000 2,413,000 2,413,000 2,413,000 2,413,000

Retail 59,000 59,000 59,000 59,000 59,000

Total 26,703,000 26,703,000 26,703,000 26,703,000 26,703,000

Occupancy

Office 93.3% 92.8% 92.3% 92.3% 92.7%

Industrial 95.6% 98.4% 98.4% 98.3% 97.3%

Retail 100.0% 93.0% 93.0% 96.4% 96.4%

Total 93.6% 93.3% 92.9% 92.9% 93.1%

Rentable Square Feet and Occupancy Trend: Total In-Service Office Only

Portfolio Summary

85%

87%

89%

91%

93%

95%

20

21

22

23

24

25

26

27

28

12/31/15 3/31/16 6/30/16 9/30/16 12/31/16

Occu

pan

cy

Sq

uare

Feet

in M

illio

ns

Rentable Square Feet Occupancy

9

Rentable Percentage of Annualized Cash Revenue 1/

Market Square Feet Occupancy Office Industrial Retail Total

Atlanta 5,239,000 92.1% 19.2% - - 19.2%

Raleigh 5,096,000 92.7% 17.5% - - 17.5%

Nashville 3,379,000 99.6% 14.3% - 0.2% 14.5%

Tampa 3,822,000 90.9% 13.4% - - 13.4%

Pittsburgh 2,162,000 93.8% 8.7% - - 8.7%

Memphis 2,226,000 89.9% 7.7% - 0.1% 7.8%

Orlando 1,977,000 88.2% 7.5% - - 7.5%

Richmond 1,942,000 94.6% 5.7% - - 5.7%

Greensboro 3,564,000 94.8% 3.5% 2.0% - 5.5%

Kansas City 67,000 95.6% 0.2% - - 0.2%

Total 29,474,000 93.1% 97.7% 2.0% 0.3% 100.0%

Annualized Cash Revenue by Market 1/

1/ Annualized Cash Revenue is December 2016 cash rental revenue (base rent plus operating expense pass through revenue excluding

straight-line rental income) multiplied by 12.

Portfolio Summary

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Atlanta Raleigh Nashville Tampa Pittsburgh Memphis Orlando Richmond Greensboro Kansas City

10

Percentage Percentage

of Segment of Total

Annualized Annualized

Rentable Cash Cash

Market Square Feet Occupancy Revenue 1/ Revenue 1/

Office

Atlanta 5,239,000 92.1% 19.7% 19.2%

Raleigh 5,096,000 92.7% 18.0% 17.5%

Nashville 3,338,000 99.6% 14.6% 14.3%

Tampa 3,822,000 90.9% 13.7% 13.4%

Pittsburgh 2,162,000 93.8% 8.9% 8.7%

Memphis 2,208,000 89.8% 7.9% 7.7%

Orlando 1,977,000 88.2% 7.6% 7.5%

Richmond 1,942,000 94.6% 5.9% 5.7%

Greensboro 1,151,000 93.2% 3.5% 3.5%

Kansas City 67,000 95.6% 0.2% 0.2%

27,002,000 92.9% 100.0% 97.7%

Industrial

Greensboro 2,413,000 95.6% 100.0% 2.0%

2,413,000 95.6% 100.0% 2.0%

Retail

Nashville 41,000 100.0% 65.9% 0.2%

Memphis 18,000 100.0% 34.1% 0.1%

59,000 100.0% 100.0% 0.3%

Office Segment: Annualized Cash Revenue by Market 1/



Portfolio Summary

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Atlanta Raleigh Nashville Tampa Pittsburgh Memphis Orlando Richmond Greensboro Kansas City

11

Market Measurement 12/31/16 9/30/16 6/30/16 3/31/16 12/31/15

Atlanta Rentable Square Feet 5,239,000 5,317,000 5,317,000 5,317,000 5,361,000

Occupancy 92.1% 91.7% 91.2% 92.1% 92.4%

Current Properties 1/ 92.1% 92.4% 91.9% 92.8% 93.2%

Greensboro Rentable Square Feet 3,564,000 3,564,000 3,564,000 3,564,000 3,564,000

Occupancy 94.8% 96.5% 96.7% 96.6% 95.8%


Kansas City Rentable Square Feet 67,000 67,000 67,000 150,000 1,393,000

Occupancy 95.6% 95.6% 95.6% 98.0% 97.2%


Memphis Rentable Square Feet 2,226,000 2,226,000 2,226,000 2,226,000 2,226,000

Occupancy 89.9% 90.9% 91.5% 90.7% 91.0%


Nashville Rentable Square Feet 3,379,000 3,379,000 3,379,000 3,379,000 3,379,000

Occupancy 99.6% 99.5% 99.0% 99.6% 99.2%


Orlando Rentable Square Feet 1,977,000 1,977,000 1,977,000 1,978,000 1,978,000

Occupancy 88.2% 87.0% 87.5% 85.9% 86.0%


Pittsburgh Rentable Square Feet 2,162,000 2,162,000 2,162,000 2,162,000 2,157,000

Occupancy 93.8% 92.2% 91.6% 91.4% 95.7%


Raleigh Rentable Square Feet 5,096,000 5,096,000 4,852,000 4,852,000 4,882,000

Occupancy 92.7% 90.8% 91.9% 93.0% 92.8%


Richmond Rentable Square Feet 1,942,000 1,942,000 1,942,000 1,941,000 1,941,000

Occupancy 94.6% 94.2% 92.9% 93.6% 93.9%


Tampa Rentable Square Feet 3,822,000 3,822,000 3,822,000 3,825,000 3,649,000

Occupancy 90.9% 90.8% 88.9% 88.3% 87.4%


Total Rentable Square Feet 29,474,000 29,552,000 29,308,000 29,394,000 30,530,000

Occupancy 93.1% 92.7% 92.5% 92.7% 93.1%


1/ Only includes properties that were owned and in-service for all periods shown.

Occupancy Trends

12

Leasing Statistics

Three Months Ended Five Quarter

12/31/16 9/30/16 6/30/16 3/31/16 12/31/15 Average

Leasing Activity:

Square footage of Renewal Deals 460,308 594,326 661,722 694,258 809,940 644,111

Square footage of New Deals (Relets) 266,025 1/ 273,067 1/ 245,193 1/ 207,880 237,493 245,932

Rentable square footage leased 726,333 867,393 906,915 902,138 1,047,433 890,042

Renewed square footage (% of total) 63.4% 68.5% 73.0% 77.0% 77.3% 72.4%

New Leases square footage (% of total) 36.6% 31.5% 27.0% 23.0% 22.7% 27.6%

Number of lease transactions (signed leases) 105 99 131 119 121 115

Weighted average per rentable square foot

over the lease term:

Base rent 27.52$ 27.31$ 25.14$ 24.42$ 24.90$ 25.86$

Rent concessions (0.56) (0.39) (0.57) (0.63) (0.62) (0.55)

GAAP rent 26.96 26.92 24.57 23.79 24.28 25.31

Tenant improvements (2.89) (2.86) (2.44) (2.05) (2.35) (2.52)

Leasing commissions 2/ (0.96) (0.84) (0.74) (0.53) (0.82) (0.78)

Effective rent after capex 23.11 23.22 21.39 21.21 21.11 22.01

Expense stop (9.11) (8.61) (8.42) (6.67) (7.99) (8.16)

Effective rent after capex and opex 14.00$ 14.61$ 12.97$ 14.54$ 13.12$ 13.85$

Square feet weighted average term in years 6.0 7.0 5.4 6.5 6.9 6.4

Dollar weighted average term in years 6.2 7.2 5.6 6.5 6.9 6.5

Capital Expenditures Related to Above Leasing Activity:

Tenant Improvements:

Total dollars committed under signed leases 14,808,837$ 20,521,494$ 13,738,272$ 13,050,044$ 18,907,341$ 16,205,198$

Rentable square feet 726,333 867,393 906,915 902,138 1,047,433 890,042

Per rentable square foot 20.39$ 23.66$ 15.15$ 14.47$ 18.05$ 18.21$

Leasing Commissions:

Total dollars committed under signed leases 2/ 4,961,541$ 5,827,656$ 4,219,120$ 2,876,029$ 6,576,006$ 4,892,070$



Total:

Total dollars committed under signed leases 19,770,378$ 26,349,150$ 17,957,392$ 15,926,073$ 25,483,347$ 21,097,268$



1/ Expected occupancy as follows: 24,000 in Q4 '16; 104,000 in Q1 '17; 78,000 in Q2 '17; 18,000 in Q3 '17; 18,000 in Q4 '17; 22,000 in Q1 '18; and

2,000 in Q1 '20.

2/ Excludes internal leasing costs.

Office Leasing Statistics

13

For Three Months Ended December 31, 2016

Leasing Statistics Rentable Lease

Square Feet Average TI's Commissions Rental Previous Percentage

Leased Term Per SF Per SF 1/ Rate Rent Change

Raleigh 143,266 6.9 20.98$ 7.14$ 24.11$ 19.91$ 21.1%

Tampa 122,833 3.4 12.01 3.84 29.50 27.25 8.3%

Pittsburgh 112,501 9.5 39.88 14.93 30.86 28.96 6.6%

Atlanta 102,938 6.1 22.94 9.08 29.68 25.58 16.0%

Memphis 74,376 4.1 11.71 0.90 23.44 21.06 11.3%

Orlando 60,756 6.9 23.03 6.89 25.98 20.08 29.4%

Nashville 49,020 7.0 18.52 4.05 28.15 23.40 20.3%

Greensboro 32,039 3.1 3.57 2.36 20.00 18.60 7.5%

Richmond 24,173 4.2 7.75 2.81 22.04 18.66 18.1%

Kansas City 4,431 4.0 0.00 5.46 22.75 19.68 15.6%

GAAP Rent Growth 2/ 726,333 6.0 20.39$ 6.83$ 26.96$ 23.67$ 13.9%

Cash Rent Growth 3/ 726,333 6.0 20.39$ 6.83$ 25.92$ 25.17$ 3.0%

Average Office Cash Rental Rates for All In-Place Leases as of:

1/ Excludes capitalized internal leasing costs, which totaled $578,000.

2/ GAAP rent growth is calculated by comparing average cash rent psf over the term (GAAP rent) of the new lease to the average cash rent psf

over the term related to the previous lease in the same space. Adjustments are made if necessary to put both the current and prior deal on a

consistent gross lease basis.

3/ Cash rent growth is calculated by comparing beginning annualized cash rent psf (after rent concessions burn off) under the new lease to ending

annualized cash rent psf (including recovery income and rent escalations) related to the previous lease in the same space. Adjustments are

made if necessary to put both the current and prior deal on a consistent gross lease basis.

Office Leasing Statistics and Rental Rate Comparisons by Market

$20.86

$21.48

$22.27

$23.49

$24.12

$19

$20

$21

$22

$23

$24

$25

12/31/12 12/31/13 12/31/14 12/31/15 12/31/16

14

Occupied Percent of Percent of

Rentable Occupied Annualized Average Annualized

Square Feet Rentable Cash Rental Cash

Year Expiring Square Feet Revenue 1/ Rate Revenue 1/

2017 2/ 2,319,501 9.3% 59,525$ 25.66$ 9.8%

2018 2,735,958 10.9% 66,598 24.34 11.0%

2019 3,535,333 14.0% 85,950 24.31 14.3%

2020 2,754,909 11.0% 73,892 26.82 12.2%

2021 2,767,479 11.0% 64,430 23.28 10.7%

2022 1,710,029 6.8% 39,457 23.07 6.5%

2023 1,614,168 6.4% 37,364 23.15 6.2%

2024 1,769,755 7.1% 43,016 24.31 7.1%

2025 947,576 3.8% 26,392 27.85 4.4%

2026 1,245,338 5.0% 28,625 22.99 4.7%

2027 and thereafter 3,673,904 14.7% 79,502 21.64 13.1%

25,073,950 100.0% 604,751$ 24.12$ 100.0%

Percent of Total Annualized Cash Revenue Expiring by Year

1/ Annualized Cash Revenue is December 2016 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line

rental income) multiplied by 12.

2/ Includes 62,000 square feet of leases that are on a month to month basis, which constitute 0.3% of total annualized revenue.

Note: 2017 and beyond expirations that have been renewed are reflected above based on the renewal expiration date. Expirations include leases

related to completed not stabilized development properties and exclude leases related to developments in-process.

Office Lease Expirations (dollars in thousands)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2017 2/ 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 andthereafter

15

2017 1/ 2018 2019 2020 Thereafter

Atlanta RSF 576,385 288,770 674,654 601,087 2,686,112

% of Total RSF 2.3% 1.2% 2.7% 2.4% 10.7%

Annualized Cash Revenue 2/ 14,757$ 7,587$ 17,194$ 15,992$ 63,759$

% of Total Annl Cash Rev 2.4% 1.3% 2.8% 2.6% 10.5%

Greensboro RSF 205,506 196,287 113,155 91,778 466,515

% of Total RSF 0.8% 0.8% 0.5% 0.4% 1.9%



Kansas City RSF 45,032 2,448 5,423 0 11,560

% of Total RSF 0.2% 0.0% 0.0% 0.0% 0.0%

Annualized Cash Revenue 2/ 1,019$ 62$ 129$ -$ 269$


Memphis RSF 142,600 248,572 349,408 216,288 1,025,440

% of Total RSF 0.6% 1.0% 1.4% 0.9% 4.1%



Nashville RSF 365,196 401,931 491,299 387,169 1,680,292

% of Total RSF 1.5% 1.6% 2.0% 1.5% 6.7%



Orlando RSF 195,243 254,262 257,811 195,857 839,505

% of Total RSF 0.8% 1.0% 1.0% 0.8% 3.3%



Pittsburgh RSF 81,554 87,656 124,003 73,293 1,660,832

% of Total RSF 0.3% 0.3% 0.5% 0.3% 6.6%



Raleigh RSF 215,985 697,089 754,239 352,839 2,701,442

% of Total RSF 0.9% 2.8% 3.0% 1.4% 10.8%



Richmond RSF 293,435 216,532 204,795 189,800 932,173

% of Total RSF 1.2% 0.9% 0.8% 0.8% 3.7%



Tampa RSF 198,565 342,411 560,546 646,798 1,724,378

% of Total RSF 0.8% 1.4% 2.2% 2.6% 6.9%



Total RSF 2,319,501 2,735,958 3,535,333 2,754,909 13,728,249

% of Total RSF 9.3% 10.9% 14.1% 11.0% 54.8%



1/ Includes 62,000 square feet of leases that are on a month to month basis, which constitute 0.3% of total annualized revenue.



Office Lease Expirations by Market by Year (dollars in thousands)

16

Percent of Average

Rentable Annualized Annualized Remaining

Square Cash Cash Lease

Top 20 Customers Feet Revenue 1/ Revenue 1/ Term in Years

Federal Government 1,418,042 34,369$ 5.52% 4.4

Metropolitan Life Insurance 661,060 16,369 2.63% 10.2

PPG Industries 356,215 9,721 1.56% 14.3

HCA Corporation 297,909 8,064 1.29% 0.3

EQT Corporation 319,269 7,512 1.21% 7.8

Healthways 263,598 6,903 1.11% 6.2

International Paper 278,444 6,457 1.04% 11.9

Bass, Berry & Sims 195,846 6,356 1.02% 8.1

State of Georgia 318,506 6,222 1.00% 4.0

Willis Towers Watson 239,506 6,172 0.99% 5.1

Novelis 168,949 5,577 0.89% 7.7

Marsh USA 175,390 5,474 0.88% 5.2

Aon 190,683 5,408 0.87% 2.9

PNC Bank 187,076 5,364 0.86% 9.9

Vanderbilt University 209,989 5,216 0.84% 3.8

Syniverse Technologies 218,678 4,906 0.79% 9.8

Lifepoint Corporate Services 202,991 4,691 0.75% 12.3

Morgan Stanley 144,616 4,642 0.74% 2.8

AT&T 197,826 4,571 0.73% 2.6

SunTrust 141,735 4,345 0.70% 3.3

6,186,328 158,339$ 25.42% 6.6

Percent of Annualized Revenue by Industry



Customer Diversification (dollars in thousands)

Professional, Scientific, and Technical Services

25.6%

Finance/Banking14.3%

Health Care and Social Assistance

14.0%

Insurance8.1%

Manufacturing6.9%

Government/Public Administration

6.8%

Real Estate Rental and Leasing

4.8%

Administrative and Support Services

3.9%

Educational Services2.8%

Telecommunication2.6%

Information2.5%

Accommodation and Food Services

1.6%

Transportation and Warehousing

1.6%

Energy1.5%

Other Services (except Public Administration)

1.4%

Wholesale Trade1.0%

Retail Trade0.6%

17

Three months ended

December 31, Dollar Percentage

2016 2015 Change B/(W) Change B/(W)

Rental revenues 1/ 142,228$ 137,214$ 5,014$ 3.7%

Operating expenses (50,133) (50,174) 41 0.1%

Cash NOI 1/ 92,095 87,040 5,055 5.8%

Lease termination fees 2/ 3 110 (107) (97.3%)

Cash NOI with Term Fees 3/ 92,098 87,150 4,948 5.7%

Straight-line rent and other non-cash adjustments 2/ 4/ 2,791 3,583 (792) (22.1%)

GAAP NOI 94,889$ 90,733$ 4,156$ 4.6%

Average occupancy 93.4% 92.8% 0.6%

Rentable square feet 26,703,000 26,703,000

Twelve months ended

December 31, Dollar Percentage

2016 2015 Change B/(W) Change B/(W)

Rental revenues 1/ 564,512$ 545,871$ 18,641$ 3.4%

Operating expenses (202,974) (202,344) (630) (0.3%)

Cash NOI 1/ 361,538 343,527 18,011 5.2%

Lease termination fees 2/ 2,310 990 1,320 133.3%

Cash NOI with Term Fees 3/ 363,848 344,517 19,331 5.6%

Straight-line rent and other non-cash adjustments 2/ 4/ 11,788 16,083 (4,295) (26.7%)

GAAP NOI 375,636$ 360,600$ 15,036$ 4.2%

Average occupancy 93.1% 92.3% 0.9%

Rentable square feet 26,703,000 26,703,000

Year to Date: 2016 vs 2015

GAAP NOI Occupancy

Percentage Percentage

Market Change Change

Atlanta 7.4% 1.8%

Greensboro 0.4% 0.4%

Kansas City (5.1%) (4.4%)

Memphis 2.1% (1.2%)

Nashville 4.7% 2.2%

Orlando 2.6% 1.5%

Pittsburgh (0.6%) (3.1%)

Raleigh 4.2% 1.1%

Richmond 7.6% 1.6%

Tampa 4.6% 2.0%

4.2% 0.9%

1/ Excludes straight-line rents, lease termination fees, adjustments related to amortization of acquired above and below market leases and

amortization of lease incentives.

2/ Straight-line rent write-offs related to lease terminations are reflected here as a reduction of lease termination fees.

3/ Excludes straight-line rents, adjustments related to amortization of acquired above and below market leases and amortization of lease incentives.

4/ Includes adjustments related to amortization of acquired above and below market leases and amortization of lease incentives.

Same Property Performance (dollars in thousands)

18

Twelve Months

Ended Three Months Ended

12/31/16 12/31/16 9/30/16 6/30/16 3/31/16

Occupancy at Acquisition 65.0% - 65.0% - -

Square feet 243,000 - 243,000 - -

Gross total investment $83,500 - $83,500 - -

Charter Square

Market Raleigh

Submarket CBD

Property type Office

Date acquired September 27, 2016

Occupancy at Acquisition 65%

Square feet (1 building) 243,000

Gross total investment 1/ $83,500

1/ Includes $5.1 million of planned near-term capital improvements.

Acquisition Activity (dollars In thousands)

19

Twelve Months

Ended

12/31/16

Occupancy 1/ 96.4%

Square feet 1,429,000

Gross sales price $685,192

Country Club Plaza

Market Kansas City

Property type Retail/Office/Land

Number of properties 18

Date sold March 1, 2016

Occupancy 1/ 2/ 96.9%

Square feet 2/ 1,272,000


4900 North Park

Market Raleigh




Occupancy 1/ 100.0%

Square feet 32,000


Highwoods Center III at Tradeport

Market Atlanta




Occupancy 1/ 73.3%

Square feet 43,000


Park Plaza

Market Kansas City



Date sold June 7, 2016

Occupancy 1/ 100.0%

Square feet 82,000


1/ As of last reported quarter-end occupancy prior to date of disposition.

2/ Plaza 211, a development in-process on the date of disposition, is included in the rentable square feet but excluded from occupancy calculation.

Disposition Activity (dollars In thousands)

20

Rentable Anticipated Investment Estimated Estimated

Square Total As Of Pre Completion Stabilization

Office In-Process Market Feet Investment 1/ 12/31/16 1/ Leased % Date Date

Riverwood 200 Atlanta 299,000 107,000$ 76,583$ 72.7% 2Q 17 2Q 19

Seven Springs II Nashville 131,000 38,100 25,288 52.3% 2Q 17 3Q 18

Bridgestone Americas 2/ 3/ Nashville 514,000 200,000 135,856 100.0% 3Q 17 3Q 17

5000 CentreGreen Raleigh 166,500 40,850 15,365 0.0% 3Q 17 3Q 19

Virginia Urology 4/ Richmond 87,000 29,140 1,479 100.0% 3Q 18 3Q 18

751 Corporate Center 4/ 5/ Raleigh 89,700 21,850 1,322 35.3% 4Q 18 4Q 20

1,287,200 436,940$ 255,893$ 71.4%

Office Completed Not Stabilized 6/

GlenLake V Raleigh 166,000 37,000$ 36,866$ 93.7% 1Q 15 1Q 17

Seven Springs West Nashville 203,000 59,000 56,295 91.3% 3Q 16 1Q 17

369,000 96,000$ 93,161$ 92.4%

Industrial Completed Not Stabilized 6/

Enterprise V Greensboro 131,200 7,600$ 6,402$ 0.0% 2Q 16 2Q 17

Total Pipeline 1,787,400 540,540$ 355,456$ 70.5%

751 Corporate Center in Raleigh

1/ Includes deferred lease commissions, which are not classified as development in-process on our consolidated balance sheet.

2/ Includes 7,000 square feet of amenity retail space.

3/ This project is scheduled to deliver in Q3 '17. We are required to commence recording straight-line rental income due to early

possession by the customer starting in Q2 '17.

4/ Recorded on our consolidated balance sheet in land held for development, not development in-process.

5/ This development project was announced February 2017.

6/ "Completed not stabilized" properties are recorded on our consolidated balance sheet in the land and building and tenant improvement

accounts, not development in-process.

Development Activity (dollars in thousands)

21

Usable

Market Acres Office IndustrialNashville 2/ 82 1,468,000 - Raleigh 3/ 42 1,186,000 - Greensboro 37 240,000 356,000 Tampa 4/ 37 813,000 - Richmond 5/ 6/ 13 200,000 - Memphis 10 145,000 - Orlando 2 410,000 - Atlanta 1 175,000 -

Core total 224 4,637,000 356,000

Non-core total 196

Total 420

Cost Basis 1/ 2/ 3/ 4/ 5/ 6/ 110,780$

The 420 acres of Development Land has an estimated market value of between $120M to $125M.

1/ Represents approximately $1.1 billion in total development.

2/ Includes 68 acres and approximately 1.4M square feet currently classified as development in-process on our consolidated balance sheet.

3/ Excludes 10 acres to be used to develop a 90k square foot, 35.3% pre-leased build-to-suit office building that is currently classified

as land held for development on our consolidated balance sheet.

4/ Includes 33 acres and approximately 460k square feet currently classified as development in-process on our consolidated balance sheet.

5/ Excludes 8 acres to be used to develop an 87k square foot, 100% pre-leased build-to-suit medical office building that is currently classified

as land held for development on our consolidated balance sheet.

6/ Excludes 13 acres of development land owned by a 50% consolidated joint venture with a total cost basis of $3.3 million.

Square Footage Buildout of Core

Development Land 1/

Land Held for Development (dollars in thousands)

22

Joint Venture Own % Revenue NOI Revenue NOI

Highwoods DLF Forum, LLC 25.0% 3,500$ 2,351$ 14,492$ 9,776$

Plaza Colonnade, Tenant-in-Common 50.0% 3,236 2,018 12,705 8,346

Kessinger/Hunter & Company, LC 26.5% 1,557 384 6,254 1,895

Highwoods DLF 98/29, LLC 22.8% 1,328 749 5,388 3,172

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 376 250 944 525

Total 9,997$ 5,752$ 39,783$ 23,714$

Total Total

Joint Venture Own % Assets Debt Liabilities

Highwoods DLF Forum, LLC 25.0% 94,374$ 71,299$ 74,255$

Plaza Colonnade, Tenant-in-Common 50.0% 59,142 51,261 52,521

Kessinger/Hunter & Company, LC 26.5% 4,245 - 542

Highwoods DLF 98/29, LLC 22.8% 27,764 - 1,926

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 14,047 - 2,828

Total 199,572$ 122,560$ 132,072$

1/ Excludes joint ventures sold during the year.

Venture's Books

Three Months Ended December 31, 2016 Year Ended December 31, 2016

Venture's Books

As of December 31, 2016

Unconsolidated Joint Ventures Income Year Ended 12/31/14 (dollars in thousands)Unconsolidated Joint Ventures Income Six Months Ended Unconsolidated Joint Venture Financial Information 1/ (dollars in thousands)

23

Summary:

Percentage of

Joint Venture

Annualized

Rentable Cash

Market Square Feet Occupancy Revenue 2/ 3/

Kansas City 292,000 99.5% 39.3%

Raleigh 635,000 93.5% 29.8%

Richmond 345,000 100.0% 21.1%

Orlando 306,000 100.0% 9.8%

Total 1,578,000 97.3% 100.0%

Dispositions Activity:

1/ Highwoods' in-service joint venture portfolio consists solely of office properties, including 345,000 square feet of properties in

Richmond owned by a joint venture that is consolidated.



3/ Annualized Cash Revenue is based on Highwoods' share only.

4/ Gross sales price includes Highwoods' share only.

Joint Ventures Summary and Dispositions Activity 1/ (dollars in thousands)

Date Square Gross Sales

Name Own % Market Sold Footage Occupancy Price 4/

First quarter 2016:

Concourse 50.0% Greensboro 3/3/16 118,000 36.8% 5,500$

Third quarter 2016:

Plaza West 12.5% Kansas City 7/18/16 262,000 91.4% 4,086$

2016 totals: 380,000 74.4% 9,586$

24

Date post:	11-Oct-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

SUPPLEMENTAL INFORMATION...Jed Reagan fully-integrated office REIT that owns, develops, acquires,...

Documents