SAFE HARBOR

2y ago
18 Views
3 Downloads
3.99 MB
21 Pages
Last View : 18d ago
Last Download : 4m ago
Upload by : Grant Gall
Transcription

5000 CENTREGREEN RALEIGH

SAFE HARBORSome of the information in this presentation may contain forward-looking statements. Such statements include, in particular, statements about our plans, strategies andprospects such as the following: the planned sales of non-core assets and expected pricing and impact with respect to such sales, including the tax impact of such sales; the expected financialand operational results and the related assumptions underlying our expected results, including but not limited to potential losses related to customer difficulties, anticipated building usage andexpected economic activity due to COVID-19; the continuing ability to borrow under the Company’s revolving credit facility; the anticipated total investment, projected leasing activity,estimated replacement cost and expected net operating income of acquired properties and properties to be developed; and expected future leverage of the Company. You can identify forwardlooking statements by our use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue” or other similar words. Although we believe that our plans,intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that our plans, intentions or expectations will be achieved.When considering such forward-looking statements, you should keep in mind important factors that could cause our actual results to differ materially from those containedin any forward-looking statement, including the following: buyers may not be available and pricing may not be adequate with respect to planned dispositions of non-core assets;comparable sales data on which we based our expectations with respect to the sales price of non-core assets may not reflect current market trends; the extent to which the ongoingCOVID-19 pandemic impacts our financial condition, results of operations and cash flows depends on future developments, which are highly uncertain and cannot be predicted withconfidence, including the scope, severity and duration of the pandemic and its impact on the U.S. economy and potential changes in customer behavior that could adverselyaffect the use of and demand for office space; the financial condition of our customers could deteriorate or further worsen, which could be further exacerbated by theCOVID-19 pandemic; our assumptions regarding potential losses related to customer financial difficulties due to the COVID-19 pandemic could prove incorrect; counterpartiesunder our debt instruments, particularly our revolving credit facility, may attempt to avoid their obligations thereunder, which, if successful, would reduce our available liquidity;we may not be able to lease or re-lease second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorableterms as old leases; we may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; we may not be able tocomplete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated; development activity in ourexisting markets could result in an excessive supply relative to customer demand; our markets may suffer declines in economic and/or office employment growth;unanticipated increases in interest rates could increase our debt service costs; unanticipated increases in operating expenses could negatively impact our operatingresults; natural disasters and climate change could have an adverse impact on our cash flow and operating results; we may not be able to meet our liquidity requirementsor obtain capital on favorable terms to fund our working capital needs and growth initiatives or repay or refinance outstanding debt upon maturity; and the Company couldlose key executive officers.This list of risks and uncertainties, however, is not intended to be exhaustive. You should also review the other cautionary statements we make in “Risk Factors” set forthin our 2020 Annual Report on Form 10-K. Given these uncertainties, you should not place undue reliance on forward-looking statements. We undertake no obligation to publiclyrelease the results f any revisions to these forward-looking statements to reflect any future events or circumstances or to reflect the occurrence of anticipated events.2

TABLE OF CONTENTS457891011121420PORTFOLIO OVERVIEWOPERATIONSCUSTOMER CREDIT & DIVERSIFICATION2021 OUTLOOKBALANCE SHEET & LIQUIDITYINVESTMENTSCURRENT DEVELOPMENTFUTURE DEVELOPMENT POTENTIALPORTFOLIO ACQUISITIONENVIRONMENTAL, SOCIAL & GOVERNANCEMARS PETCARE HQ NASHVILLE3

HIGHWOODS IS IN THE WORK-PLACEMAKING BUSINESSWE BELIEVE THAT, IN CREATING ENVIRONMENTS AND EXPERIENCES WHERE THEBEST AND BRIGHTEST CAN ACHIEVE TOGETHER WHAT THEY CANNOT APART,HIGHWOODS DELIVERS GREATER VALUE TO OUR CUSTOMERS, THEIR TEAMMATESAND, IN TURN, OUR SHAREHOLDERS.Our simple strategy is to own and manage high-quality workplaces inthe Best Business Districts (BBDs) within our footprint, maintain a strongbalance sheet to be opportunistic throughout economic cycles, employa talented and dedicated team and communicate transparently with allstakeholders.We focus on owning and managing buildings in the most dynamicand vibrant BBDs. BBDs are highly-energized and amenitized workplacelocations that enhance our customers’ ability to attract and retaintalent. They are both urban and suburban.Providing the most talent-supportive workplace options in theseenvironments is core to the Highwoods work-placemaking strategy.28.3M89.5%SQUARE FEETOCCUPANCY4.1% 99%RENT CAGRRENT COLLECTIONS(As of 6/30/21, adjusted forportfolio acquisition)(2013-2021)(As of 6/30/21)(During COVID-19)ULI’s 2021 TOP REAL ESTATE ALLAS/FORT WORTHCHARLOTTETAMPA/ST. PETERSBURGSALT LAKE CITYWASHINGTON, DC-NORTHERN VABOSTONLONG ISLANDATLANTAPITTSBURGH2.2M SFRICHMOND2.0M SFRALEIGHCHARLOTTE 6.6M SF1.6M SFNASHVILLE5.2M SFATLANTA5.3M SF 80%ORLANDO1.8M SFPROFORMA REVENUE*IN TOP ULI MARKETSTAMPA3.5M SF* Based on June 2021 annualized revenues plus acquisition of a portfolio of office assets from PAC andprojected revenue from in-process development.4

OPERATIONSAVERAGE IN-PLACE CASH RENTSAME PROPERTY CASH NOI GROWTH AND AVERAGE OCCUPANCY /SF%307Outlookrange652843.3% avg 182019202020142Q'21GAAP RENT GROWTH201520162017Same Prop Cash NOI Growth201820192020Change in Y/Y Avg Occ2021OUTLOOKLEASE ECONOMICS%20 172018201920202Q'2118Jun-14Jun-15Jun-16Jun-17Net Effective Rent*Jun-18Jun-19Jun-20Payback Ratio*Net effective rent defined as cash rent due over the term less operating expenses and leasing capital expenditures.10Jun-215

OPERATIONSMAJOR OFFICE USING JOB ANNOUNCEMENTSOFFICE USING JOB GROWTH5.0%4.0%3.0%2.0%1.0%0.0%(1.0%)Since PandemicHIW3 Yr CumulativeUSHIW calculated using weighted average of marketsbased on pro forma revenue percentage.Source: Green Street Advisors and company researchMajor job announcements include both in-market employers with announced expansions and new to market employers with office using job announcements.6

STRONG CUSTOMER CREDIT & DIVERSIFICATIONTOP 10 CUSTOMERSDIVERSIFICATIONRENT COLLECTIONSBY % OF RENTPERCENT OF ANNUALIZED RENT4.1% 99%OF RENTS COLLECTEDSINCE ONSET OFCOVID-193.9%3.0%BY INDUSTRYInsurance5%Manufacturing8%17%10%REPAYMENTS ONSCHEDULE WITHTOP 10 CUSTOMERS 85%99%RENTS DEFERREDREPAID TO DATEReal estateRaleighNashville5% 2%6%22%Atlanta7% BY MARKET*TampaCharlotte7%OF RENTS COLLECTEDSINCE ONSET OF COVID-1921.2%*Annualized rent figures as of 6/30/2021. Market diversification adjusted for completed acquisitions and in-process r12%1.4%1.1%Finance/bankingHealth & social care1.4%1.2%26%5%2.6%1.2%Professional services17%OrlandoRichmondOther7

2021 OUTLOOK 3.75In millions, except per share data and figures in percentages.2021 FFO per Share OutlookEffects Assumed in FFO OutlookGrowth in Same Property Cash NOIStraight-Line Rental IncomeG&A ExpensesYear-End OccupancyWeighted Average Diluted Shares and Units OutstandingPer Share Impact of 43M Sale of Non-Core Assets in 2QPlanned Acquisition of Portfolio of Office Assets from PACAnticipated Per Share Impact of Planned AcquisitionPlanned DispositionsAnticipated Per Share Impact of Planned DispositionsEffects Not Assumed in FFO OutlookOther Potential AcquisitionsPotential Development AnnouncementsORIGINAL 2021 PER SHARE FFO OUTLOOK OF 3.50- 3.66As of 7/27/2021LowHigh 3.62 3.73OutlookrangeHISTORICAL FFO PER SHARE3.503.254.25% 17 4089.5%107.1 (0.01) 680 0.08 207 (0.05)5.50% 21 4291.5%107.1 (0.01) 769 0.11 257 (0.04) 0 0 200 2503.002.752.502.252010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020 2021 ANNUALIZED DIVIDEND PER SHARE2.001.901.801.70(as of 2/9/2021)1.601.50201620172018201920202021*2019 FFO excludes balance sheet write-offs associated with LSI’s sudden closure in Q1’19 and one-time costs associated with closure of ourGreensboro and Memphis offices.8

BALANCE SHEET & LIQUIDITYMATURITY LADDER* %3.50%3.73%AVERAGEINTEREST RATES500 600M400300UNUSED 2026Unsecured Fixed20272028Unsecured Variable202920302031203220332037Bridge Facility* Includes mortgages assumed with the acquisition of properties from PAC subsequent to quarter endDEBT/EBITDArex7.0STRONG BALANCE SHEETAs of 6/30/20216.036.8%5.0Debt Preferredas % of Gross Assets4.01.5%3.0Secured Debtas % of Gross Q'215.2xNet Debt toAnnualized EBITDAre96.7%3.3%Weighted AverageInterest RateBaa2 BBBUnencumbered NOI9

INVESTMENTSACQUISITIONS & DISPOSITIONS millions900800ACQUISITIONS 3.2B TOTAL700DISPOSITIONS 2.5B TOTALPLANNED DISPOSITIONS* 500M- 9202020212022**Consists of planned non-core dispositions through mid-2022 to primarily fund acquisition of portfolio of office assets from PAC.DEVELOPMENT ANNOUNCEMENTS millions400350DEVELOPMENTS 1.5B 62017201820192020202110

DEVELOPMENTCURRENT DEVELOPMENT PIPELINE2021 PLACED IN SERVICE* 109M 8MInvestmentStabilized GAAP NOI345K100%Square FeetLeasedGLENLAKESEVENRALEIGHMETLIFE IIIRALEIGH 44M126KSquare Feet100%LeasedInvestmentInvestmentInvestmentMARTIN MARIETTA 50MMETLIFE III2021 lotteRichmondOrlandoRemainingto Fund 32MStabilizedGAAP NOICOMPETITIVE SET CONSTRUCTION**MarketASURION2021 Stabilization 285M553KSquare Feet98%Pre-leasedInvestment 65M219KSquare Feet100%Leased2021 Stabilization 394MASURION HQNASHVILLEUnder Construction(SF in millions)Projects% of StockCompetitive 81.52.11.90.31.82719191207978*As of 6/30/2021**Includes competitive multi-customer projects in the BBDs of our markets. Excludes build to suits and other non-competitive projects.814KSquare Feet78%Pre-leasedMIDTOWN WESTTAMPA 71M150KSquare Feet15%Pre-leasedInvestmentVA SPRINGS IINASHVILLE 38M111KSquare Feet50%Pre-leasedMIDTOWN WEST2022 StabilizationCHANGE PICVA SPRINGS II2022 StabilizationInvestment11

FUTURE DEVELOPMENT POTENTIALFUTURE DEVELOPMENT POTENTIAL LAND tlantaPittsburghCharlotteTotalAcresOffice ment150 FAYETTEVILLE 2.2BTOTALHARGETT STREET SITEPNC PLAZAEDGE SITE*As of 6/30/2021**Includes 600K SF potential at Midtown Tampa not on HIW-owned landONE CITY PLAZADOWNTOWNRALEIGHCHARTER SQUAREGULCH CENTRAL12

FUTURE DEVELOPMENT POTENTIALMIDTOWNCENTREGREENRIVERWOODGLENLAKENORTH END13

PORTFOLIO ACQUISITION HIW to accelerate sales of existing non-core properties with plans to sell 525-575M within 1 year of closing HIW will seek to monetize the non-core assets acquired in the transaction 1 Doesnot include 111K SF from Galleria 75, which will be classified as development.14

PORTFOLIO ACQUISITIONOFFICE BUILDINGSMARKETSUBMARKETRENTPSF1CAPITOL TOWERSCHARLOTTESOUTHPARK )22015-20178.998%ALBEMARLE CORPDIXON HUGHESJ.P. MORGAN31992-20006.196%AGDATAWYNDHAM MORTGAGEMORGAN STANLEY88%SMITH ANDERSONWELLS FARGOUS ATTORNEY'S OFFICEOCCUPANCY1CAPITAL TOWERSMAJOR CUSTOMERS3MORROCROFT CENTRECHARLOTTESOUTHPARK 32.442914MORROCROFT CENTRE5150 FAYETTEVILLERALEIGHCBD 30.945606119915.8150 FAYETTEVILLE7CAPTRUST TOWERCAPTRUST TOWERRALEIGHNORTH HILLSTOTAL / WEIGHTED AVGREDEVELOPMENT 33.92 33.75MARKETSUBMARKET3001,63089SF 10ANNUAL NOI (000s)1720108.397%7.394%CAPTRUSTAMERICAN BOARD OFANESTHESIOLOGYKILPATRICK TOWNSENDOFFICEBLDGSFUTURE OFFICE DEVELOPMENTFUTURE MULTI-FAMILYDEVELOPMENT2300K-600K SF300 /- UnitsMARS PETCARE HQ NASHVILLEGALLERIA 751 AsATLANTACUMBERLAND 1.2M111of July 31, 202115

PORTFOLIO ACQUISITIONCHARLOTTE MARKET OVERVIEWWFH SUSCEPTIBILITY VS. POPULATION GROWTHASKING RATES ( /SF)Above avg. population growth, less susceptible to WFH 35.85 20.28 20.59 22.39 23.72 25.93 27.42 29.81Above avg. population growth, more susceptible to WFH1.0Phoenix 31.20San AntonioAustinDallas / Fort -East BayD.C. hiaChicago(0.5)San Francisco1.0San JoseNew YorkLos low avg. population growth, more susceptible to WFHBelow avg. population growth, less susceptible to WFHSource: CBRESource: Green Street AdvisorsNET ABSORPTION (SF, 000s)VACANCY RATE ,2938.4%1,0037436706751(208)2013Source: 16Source: CBRE, REIS1 Average based on top 50 U.S. markets, weighted by SF.2017201820192020(321)202016

PORTFOLIO ACQUISITIONRALEIGH MARKET OVERVIEWWFH SUSCEPTIBILITY VS. POPULATION GROWTHASKING RATES ( /SF) 35.85Above avg. population growth, less susceptible to WFHAbove avg. population growth, more susceptible to WFH1.0 21.96 23.14 24.03 25.02 26.23 27.61 29.07 29.73PhoenixSan AntonioAustinDallas / Fort WorthHoustonSeattle(0.5)DenverColumbusD.C. MetroIndianapolis(1.0)(0.5)0.0San akland-East Bay1.0San JoseNew YorkLos low avg. population growth, less susceptible to WFHBelow avg. population growth, more susceptible to WFHSource: CBRESource: Green Street AdvisorsNET ABSORPTION (SF, 000s)VACANCY RATE 8891,6152,1411,7491,6127357071203(321)2013Source: 16Source: CBRE, REIS1 Average based on top 50 U.S. markets, weighted by SF2017201820192020202017

PLANNED DISPOSITIONSBY YEAR-END2021BY MID-YEAR2022UP TOUP TO 300M 300MUP TOUP TO1.3M SF1.4M SF 85% 85%OCCUPANCYOCCUPANCY18

PROVEN TRACK RECORD 3.75HISTORICAL FFO PER SHAREOutlookmidpoint3.25 3.28 3.39 3.45 3.5020182019* 3.58 3.68 3.082.75 2.74 2.83 2.91 2.592.252011Acquired 425M ofcore office in the BBDsof ATL and TAM201220136.02015Entered CLT marketwith purchase of BofATower for 436MSold 660M ofretail centric assetsin KCx201420162017Completed 428M ofnon-core asset salesin MEM and GBO20202021Plan to accelerate 500M - 600M ofnon-core dispositionsAcquired 683Moffice portfolio inCLT and 202Q'21*2019 FFO excludes balance sheet write-offs associated with LSI’s closure in Q1’19 and one-time costs associated with closure of our GBO and MEM offices.2019 debt/EBITDAre computed prior to completion of any dispositions.19

STAKEHOLDER ENGAGEMENTENVIRONMENTALSOCIAL2026 SUSTAINABILITY GOALSOUR PEOPLE ARE OUR TROPHY ASSETSFROM A 2016 BASELINE20% REDUCTION 20% REDUCTION 10% REDUCTIONenergy intensitycarbon emissionswater useCURRENT GOAL PROGRESSION TO DATESINCE 201611.0%11.6%14.9%reduction to datereduction to datereduction to dateADDITIONAL PROGRESS3.5%3.6%2.4%75energy reductionGHG emissionsreductionwater reductionEnergy Starcertificationsin 2019in 2019in 2019COLLEGIALITY WORK-LIFE BALANCEAPPRENTICESHIP PROGRAM VOLUNTEER TIME OFFSUPPLIER DIVERSITY INDIVIDUAL CAREER GROWTHTRANSPARENCY TRAINING WELLBEINGHUMAN CAPITAL 10-K DISCLOSURESHIGH-QUALITY WORK ENVIRONMENTCOLLABORATION STAKEHOLDER ENGAGEMENTPAY FOR PERFORMANCEFUN!in 2020 43M100%11.7M100%invested inenergy efficiencyprojectsof managed buildingsbenchmarked in EnergyStar portfolio managersquare feet Energy Starcertifiedof new developmentoffice portfolio(2M SF) LEED certified68 certifications in 2019since 2013WE WORK WITH AND FOR EACH OTHERSince 2013since 2006GRESB GREEN STARGOVERNANCEDIRECTORS SERVE ONE-YEAR TERMSMAJORITY VOTE DIRECTOR RESIGNATION POLICYVIGOROUS CASH AND EQUITY CLAWBACK POLICYNO EMPLOYMENT CONTRACTSDOUBLE TRIGGER CHANGE-IN-CONTROLS CONTRACTSNO POISON PILL88% INDEPENDENT DIRECTORS50% FEMALE OR PERSONS OF COLORSHAREHOLDERS CAN AMEND BYLAWSTWO FINANCIAL EXPERTS ON AUDIT COMMITTEESHAREHOLDER-ALIGNED COMPENSATION PHILOSOPHYANTI-HEDGING AND ANTI-PLEDGING POLICYNO RELATED PARTY TRANSACTIONSSIMPLE CORPORATE STRUCTUREWORKFORCE COMMUNITY INDUSTRY20

THANK YOU

10 12 14 16 18 10 12 14 16 18 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Net Effective Rent* Payback Ratio 2

Related Documents:

Safe Harbor Leasing, 1981 and 1982 By Margaret Riley* During 1981 and 1982, companies leased more than 37 billion of property under liberal, less restrictive, "safe harbor" leasing arrangements. Safe harbor property leased in 1981 totalled over 22 billion but, because of certain tax law changes, decreased to 15 billion in 1982.

Safe Harbor enacted - SEY defined and added to CPS codes. 2011-2012. The Plan: No Wrong Door statewide services model. 2013-Safe Harbor amended (under 18) Initial funding secured. 2014 - Safe Harbor takes effect 8/1/2014 - SEY excluded from delinquency definition . 2015 Services Housing LE Training **Protocol (Evaluation) 2016 .

THE HARBOR Paradise Bay, sometimes known as Beaver Harbor, St. James Harbor or simply "The Harbor," is a remarkable example of a natural, sheltered harbor. It is extremely popular with boaters, as is evidenced by the many public and private docks that dot its shores, as well as the many boats that pepper its waters throughout the summer months.

not implemented safe harbor laws over an 11-year period (2005-15). This phase was completed in December 2018 (Gies et al., 2018). Phase 3, the subject of this report, involves an in-depth qualitative assessment of two states: one that implemented safe harbor laws and demonstrated positive outcomes, and one that implemented safe

Apra Inner Harbor and an area just W of the entrance to the Inner Harbor are included in a restricted area . (See 33 CFR 334.1 through 334.6 and 334.1430, chapter 2, for limits and regulations.) A harbor security barrier gate , marked by two uncharted buoys, has been installed across the entrance to Apra Inner Harbor between the

Support the growth of the harbor with a projected service horizon of the new system of fifteen to twenty years This document outlines the business requirements for an updated harbor management system. Port and Harbor Mission and Daily Operations The Homer Port and Harbor manages all city-owned property on the Homer Spit. The strategic mission

2018 Grays Harbor Business Survey Report for Grays Harbor County . October 17, 2018 . Submitted by: Alan Hardcastle and Yi Jen Wang . For: Greater Grays Harbor, Inc. SESRC . Social & Economic Sciences Research Center (SESRC) Puget Sound Division Washington State University . PO Box 43170 Olympia, Washington 98504-3170 Telephone: (360) 586-9292

401(k) Safe-Harbor Contribution Requirement Safe harbor match—100% of the elective deferral up to 3% of compensation plus 50% of the elective deferral that exceeds 3% but does not exceed 5% of employee compensation or safe harbor non-