Highwoods Properties, Inc. (NYSE:HIW) Q2 2024 Earnings Conference Call July 24, 2024 11:00 AM ET

Company Participants

Hannah True - Manager, Finance and Corporate Strategy
Ted Klinck - President and CEO
Brian Leary - EVP and COO
Brendan Maiorana - EVP and CFO

Conference Call Participants

Andrew Berger - Bank of America
Georgi Dinkov - Mizuho
Young Ku - Wells Fargo
Michael Griffin - Citigroup
Rob Stevenson - Janney
Peter Abramowitz - Jefferies
Dylan Burzinski - Green Street
Michael Lewis - Truist
Omotayo Okusanya - Deutsche Bank

Operator

Good morning. Thank you attending today's Highwoods Properties' Q2 2024 Earnings Call. My name is Cole and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]

I'd now like to pass it over to Hannah True. Please go ahead.

Hannah True

Thank you, operator and good morning everyone. Joining me on the call this morning are Ted Klinck, our Chief Executive Officer; Brian Leary, our Chief Operating Officer; and Brendan Maiorana, our Chief Financial Officer.

For your convenience, today's prepared remarks have been posted on the web. If you have not received yesterday's earnings release or supplemental, they are both available on the Investors section of our website at highwoods.com.

On today's call, our review will include non-GAAP measures such as FFO, NOI, and EBITDAre. The release and supplemental include a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures.

Forward-looking statements made during today's call are subject to risks and uncertainties. These risks and uncertainties are discussed at length in our press releases as well as our SEC filings.

As you know, actual events and results can differ materially from these forward-looking statements and the company does not undertake a duty to update any forward-looking statements.

With that, I'll turn the call over to Ted.

Ted Klinck

Thanks, Hannah and good morning everyone. We delivered excellent operating and financial performance in the second quarter. First, we reported FFO of $0.98 per share, representing 4% year-over-year growth and we raised our full year FFO outlook.

Since the beginning of the year, we have increased the mid-point of our FFO outlook by $0.03 even with selling $80 million of non-core properties and absorbing the impact of higher-than-expected interest rates, neither of which were included in our original outlook. Further, our disciplined and ongoing efforts to further improve our high-quality BBD portfolio continue to pay off in the form of resilient cash flows.