Highwoods Properties (HIW) 8-K Highwoods Properties Operational Results Improve

Exhibit 99.2

Supplemental Operating Information

December 31, 2004

Supplemental Information

Table of Contents

December 31, 2004

Schedule	Page
Summary and Corporate Information	i and ii
Capitalization	1
Long-Term Debt Summary	2
Long-Term Debt Detail	3
Portfolio Summary	4, 5 and 6
Occupancy Trends	7
Leasing Statistics	8, 9 and 10
Leasing Statistics by Market	11
Rental Rate Comparisons by Market	12
Lease Expirations	13 and 14
Office Lease Expirations by Market by Quarter	15
Industrial Lease Expirations by Market by Quarter	16
Office Lease Expirations by Market by Year	17
Industrial Lease Expirations by Market by Year	18
Customer Diversification	19
Acquisition Activity	20
Disposition Activity and Depreciable Assets Contributed to Joint Ventures	21
Development Activity	22
Development Land	23
Unconsolidated Joint Ventures Assets, Debt and Liabilities	24
Unconsolidated Joint Ventures Income (Three Months)	25
Unconsolidated Joint Ventures Income (Twelve Months)	26
Joint Ventures Long-Term Debt Detail	27
Joint Ventures Portfolio Summary	28
Joint Ventures Lease Expirations	29
Joint Ventures Development	30

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 24 to 30 unless noted otherwise.

Certain matters discussed 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 general economic conditions, local real estate conditions, the timely development and lease-up of properties, and the other risks detailed from time to time in the Company’s SEC reports.

Corporate Information

Board of Directors

Thomas W. Adler

Gene H. Anderson

Kay N. Callison

Edward J. Fritsch

Ronald P. Gibson

William E. Graham Jr.

Lawrence S. Kaplan

L. Glenn Orr Jr.

O. Temple Sloan Jr., Chairman

Willard H. Smith Jr.

John L. Turner

F. William Vandiver, Jr.

Senior Management Team

Edward J. Fritsch

President, Chief Executive Officer and Director

Michael E. Harris

Executive Vice President and Chief Operating Officer

Gene H. Anderson

Senior Vice President and Director

Michael F. Beale

Senior Vice President

Robert G. Cutlip

Senior Vice President

W. Brian Reames

Senior Vice President

Carman J. Liuzzo

Vice President, Investments and Strategic Analysis

Mack D. Pridgen III

Vice President, General Counsel and Secretary

Terry L. Stevens

Vice President, Chief Financial Officer and Treasurer

Research Coverage

Deutsche Banc Securities

Lou Taylor - 212-469-4912

Green Street Advisors

Jim Sullivan - 949-640-8780

KeyBanc Capital Markets

Frank Greywitt - 216-443-4795

Legg Mason

David Fick - 410-454-5018

Morgan Stanley Dean Witter

Gregory Whyte - 212-761-6331

Prudential Equity Group

Jim Sullivan - 212-778-2515

Smith Barney Citigroup

Jonathan Litt - 212-816-0231

UBS Warburg

Keith Mills - 212-713-3098

Wachovia Securities

Chris Haley - 443-263-6773

i

Corporate Information

Divisional Offices

Atlanta/Piedmont Triad

Gene H. Anderson - Regional Manager

Atlanta, GA

Gene H. Anderson, Senior Vice President

Piedmont Triad, NC

Mark W. Shumaker, Vice President

Orlando/Tampa

Michael F. Beale - Regional Manager

Orlando, FL

Michael F. Beale, Senior Vice President

Tampa, FL

Stephen A. Meyers, Vice President

Raleigh/Richmond

Robert G. Cutlip - Regional Manager

Raleigh, NC

Robert G. Cutlip, Senior Vice President

Richmond, VA

Paul W. Kreckman, Vice President

Charlotte/Memphis/Nashville

W. Brian Reames - Regional Manager

Nashville, TN

W. Brian Reames, Senior Vice President

Charlotte, NC

Thomas F. Cochran, Senior Vice President

Memphis, TN

Steven Guinn, Vice President

Kansas City

Kansas City, MO

Barrett Brady, Senior Vice President

Corporate Headquarters

Highwoods Properties, Inc.

3100 Smoketree Court, Suite 600

Raleigh, NC 27604

919-872-4924

Stock Exchange

NYSE        Trading Symbol: HIW

Investor Relations Contact

Tabitha Zane

Sr. Director, Investor Relations

Phone: 919-431-1529

Fax:      919-876-6929

E-mail: tabitha.zane@highwoods.com

Information Request

To request a standard Investor Relations package, Annual Report or to be added to our e-mail or fax list, please contact the

Investor Relations Coordinator at: Phone: 919-875-6717 or 800-256-2963 Email:  HIW-IR@highwoods.com

The Company

Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. As of December 31, 2004, the Company owned or had an interest in 510 in-service office, industrial and retail properties encompassing approximately 40.8 million square feet. Highwoods also owns approximately 1,101 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Maryland, Missouri, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our Web site at www.highwoods.com.

ii

Capitalization

Dollars, shares, and units in thousands

	12/31/04		09/30/04		06/30/04		03/31/04		12/31/03
Long-Term Debt (see page 2 & 3):	$	1,571,777	$	1,600,627	$	1,603,485	$	1,790,039	$	1,717,765
Finance Obligations:	$	63,531	$	62,992	$	63,345	$	62,994	$	124,063
Preferred Stock:
Series A 8 5/8% Perpetual Preferred Stock	$	104,945	$	104,945	$	104,945	$	104,945	$	104,945
Series B 8% Perpetual Preferred Stock		172,500		172,500		172,500		172,500		172,500
Series D 8% Perpetual Preferred Stock		100,000		100,000		100,000		100,000		100,000
Total preferred stock	$	377,445	$	377,445	$	377,445	$	377,445	$	377,445
Shares and Units Outstanding:
Common stock outstanding		53,813		53,713		53,716		53,631		53,474
Minority interest partnership units		6,102		6,128		6,146		6,146		6,203
Total shares and units outstanding		59,915		59,841		59,862		59,777		59,677
Stock price at period end	$	27.70	$	24.61	$	23.50	$	26.21	$	25.40
Market value of common equity	$	1,659,646	$	1,472,687	$	1,406,757	$	1,566,755	$	1,515,795
Total market capitalization with debt and obligations	$	3,672,399	$	3,513,751	$	3,451,032	$	3,797,233	$	3,735,068

See pages 24 to 30 for information regarding Highwoods’ Joint Ventures

Page 1

Long-Term Debt Summary

Dollars in thousands

	12/31/04			09/30/04			06/30/04			03/31/04			12/31/03
Balances Outstanding:
Secured:
Conventional fixed rate	$	732,796		$	745,524		$	748,740		$	751,894		$	755,049
Variable rate debt		66,181			50,803			54,945			204,845			68,709
Conventional fixed rate 1/		22,800			22,800			22,800			22,800			22,800
Variable rate debt 2/		—			—			—			—			136,207
Secured total	$	821,777		$	819,127		$	826,485		$	979,539		$	982,765
Unsecured:
Fixed rate bonds and notes	$	460,000		$	460,000		$	460,000		$	560,000		$	560,000
Variable rate debt		120,000			120,000			120,000			120,000			120,000
Credit facility		170,000			201,500			197,000			130,500			55,000
Unsecured total	$	750,000		$	781,500		$	777,000		$	810,500		$	735,000
Total	$	1,571,777		$	1,600,627		$	1,603,485		$	1,790,039		$	1,717,765
Average Interest Rates:
Secured:
Conventional fixed rate		7.2	%		7.2	%		7.2	%		7.2	%		7.2	%
Variable rate debt		4.2	%		3.7	%		3.1	%		3.1	%		3.1	%
Conventional fixed rate 1/		6.1	%		6.1	%		6.1	%		6.1	%		6.1	%
Variable rate debt 2/		—			—			—			—			3.2	%
Secured total		6.9	%		6.9	%		6.9	%		6.3	%		6.3	%
Unsecured:
Fixed rate bonds		7.4	%		7.4	%		7.4	%		7.3	%		7.3	%
Variable rate debt		3.5	%		3.0	%		2.9	%		2.4	%		2.5	%
Credit facility		3.4	%		2.2	%		2.3	%		2.1	%		2.2	%
Unsecured total		5.9	%		5.4	%		5.4	%		5.8	%		6.2	%
Average		6.4	%		6.2	%		6.2	%		6.1	%		6.3	%
Capitalized Interest:	$	447		$	334		$	257		$	115		$	204
Maturity Schedule:
				Future Maturities of Debt						Total Debt 3/			Average Interest Rate
Year				Secured Debt 3/			Unsecured Debt
2005				$	67,650		$	120,000		$	187,650			5.3	%
2006					53,118			280,000			333,118			4.8	%
2007					92,534			—			92,534			7.3	%
2008					—			100,000			100,000			7.1	%
2009					171,797			50,000			221,797			7.9	%
2010					137,969			—			137,969			7.8	%
2011					—			—			—			—
2012					22,800			—			22,800			6.1	%
2013					270,460			—			270,460			5.9	%
2014					—			—			—			—
Thereafter					5,449			200,000			205,449			7.5	%
Total maturities				$	821,777		$	750,000		$	1,571,777			6.4	%
Weighted average maturity = 4.7 years

1/ Loan relates to the consolidated 20% owned joint venture property (Harborview).

2/ Loan relates to the consolidated 20% owned joint venture properties (MG-HIW, LLC).

3/ Excludes annual principal amortization

4/ Included in the $280.0 million of unsecured debt maturities is $170.0 million related to the credit facility which matures in 2006.

Page 2

Long-Term Debt Detail

Dollars in thousands

Secured Loans

Lender	Rate		Maturity Date	Loan Balance 12/31/04		Undepreciated Book Value of Assets Secured
Monumental Life Ins. Co.	7.8	%	Nov-09	$	163,814	$	236,302
Northwestern Mutual	6.0	%	Mar-13		141,865		186,090
Northwestern Mutual	7.8	%	Nov-10		137,969		276,756
Massachusetts Mutual Life Ins. Co.	5.7	%	Dec-13		127,541		185,836
Northwestern Mutual	8.2	%	Feb-07		65,221		138,820
GECC 1/	3.7	%	Jan-06		46,985		82,171
Principal Life Ins. Co.	8.6	%	Apr-05		41,204		103,251
Principal Life Ins. Co.	8.2	%	Aug-05		26,446		70,387
Metropolitan Life Ins. Co. 2/	6.1	%	Oct-12		22,800		38,774
PNC/Am South/Southtrust 3/	3.7	%	Oct-07		15,449		17,014
PFL Life Ins. Co. 4/	8.1	%	Jun-07		5,711		22,457
Ohio National	8.0	%	Nov-17		5,449		10,915
Lutheran Brotherhood	6.8	%	Apr-09		4,023		7,628
PFL Life Ins. Co. 3/4/	3.8	%	Jun-07		3,747		—
American General	7.9	%	Dec-06		2,708		7,088
Assoc Retirement Trust Fund	8.0	%	Jan-07		2,405		6,812
USG Annuity	7.7	%	Feb-06		2,198		3,777
Security Life of Denver	8.9	%	Aug-09		2,061		9,451
Southland Life Ins. Co.	8.8	%	Aug-09		1,899		6,968
American United Life	9.0	%	Jun-13		1,056		3,637
CUNA Mutual	8.0	%	Sep-06		631		3,184
Members Life Ins. Co	8.0	%	Sep-06		596		3,259
	6.9	%		$	821,777	$	1,420,577
Unsecured Bonds
Bonds	7.0	%	Dec-06	$	110,000
Bonds	7.1	%	Feb-08		100,000
Bonds	8.1	%	Jan-09		50,000
Bonds	7.5	%	Apr-18		200,000
	7.3	%		$	460,000
Unsecured Loans
Term Loan 1/	3.4	%	Sep-05	$	20,000
Term Loan 5/	3.7	%	Nov-05		100,000
Line of Credit 1/	3.4	%	Jul-06		170,000
	3.5	%		$	290,000
Total Debt	6.4	%		$	1,571,777

1/ Floating rate loans based on one month libor.

2/ Loan relates to the consolidated 20% owned joint venture property (Harborview).

3/ Floating rate loan based on ninety day libor.

4/ These two loans are secured by the same assets.

5/ Floating rate loan based on two month libor.

Page 3

Portfolio Summary - Wholly-Owned Properties Only 1/

(Rentable Square Feet)

	12/31/04		09/30/04		06/30/04		03/31/04		12/31/03
Office Industrial & Retail
In-Service:
Office 2/	24,628,000		25,151,000		25,272,000		26,608,000		25,303,000
Industrial	7,829,000		7,992,000		7,992,000		8,092,000		8,092,000
Retail 3/	1,409,000		1,410,000		1,411,000		1,411,000		1,527,000
Total	33,866,000		34,553,000		34,675,000		36,111,000		34,922,000
Development Completed - Not Stabilized:
Office 2/	—		—		—		140,000		140,000
Industrial	350,000		350,000		—		—		—
Retail	—		—		—		—		—
Total	350,000		350,000		—		140,000		140,000
Development - In Process:
Office 2/	358,000		333,000		222,000		112,000		112,000
Industrial	—		—		350,000		350,000		350,000
Retail	9,600		—		—		—		—
Total	367,600		333,000		572,000		462,000		462,000
Total:
Office 2/	24,986,000		25,484,000		25,494,000		26,860,000		25,555,000
Industrial	8,179,000		8,342,000		8,342,000		8,442,000		8,442,000
Retail 3/	1,418,600		1,410,000		1,411,000		1,411,000		1,527,000
Total	34,583,600		35,236,000		35,247,000		36,713,000		35,524,000
Same Property
Office 2/	22,907,000		22,907,000		22,907,000		22,907,000		22,907,000
Industrial	7,769,000		7,769,000		7,769,000		7,769,000		7,769,000
Retail	1,409,000		1,409,000		1,409,000		1,409,000		1,409,000
Total	32,085,000		32,085,000		32,085,000		32,085,000		32,085,000
Percent Leased/Pre-Leased:
In-Service:
Office	82.7	%	80.9	%	79.2	%	79.2	%	79.2	%
Industrial	90.2	%	88.4	%	88.0	%	86.5	%	85.7	%
Retail	97.3	%	94.5	%	93.4	%	94.0	%	96.3	%
Total	85.0	%	83.2	%	81.8	%	81.4	%	81.5	%
Development Completed - Not Stabilized:
Office	—		—		—		36.0	%	36.0	%
Industrial	100.0	%	100.0	%	—		—		—
Retail	—		—		—		—		—
Total	100.0	%	100.0	%	—		36.0	%	36.0	%
Development - In Process:
Office	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Industrial	—		—		100.0	%	100.0	%	100.0	%
Retail	44.0	%	—		—		—		—
Total	98.5	%	100.0	%	100.0	%	100.0	%	100.0	%
Same Property
Office	83.1	%	81.0	%	80.1	%	80.2	%	80.5	%
Industrial	90.3	%	88.9	%	88.6	%	87.3	%	86.5	%
Retail	97.3	%	94.6	%	93.6	%	94.2	%	96.8	%
Total	85.5	%	83.5	%	82.8	%	82.5	%	82.6	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Substantially all of our Office properties are located in suburban markets

3/ Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties.

Page 4

Portfolio Summary

(Continued)

As of December 31, 2004

Summary by Location, Wholly-Owned Properties Only 1/:

Market	Rentable Square Feet		Occupancy		Percentage of Annualized Revenue 2/
					Office		Industrial		Retail		Total
Raleigh 3/	4,597,000		83.8	%	15.7	%	0.2	%	—		15.9	%
Atlanta	6,826,000		83.7	%	11.7	%	3.1	%	—		14.8	%
Tampa	4,196,000		71.0	%	13.4	%	—		—		13.4	%
Kansas City	2,308,000	4/	94.1	%	4.2	%	—		8.5	%	12.7	%
Nashville	2,870,000		93.3	%	11.9	%	—		—		11.9	%
Piedmont Triad 5/	6,651,000		92.5	%	6.3	%	4.2	%	—		10.5	%
Richmond	1,835,000		94.1	%	7.0	%	—		—		7.0	%
Memphis	1,216,000		83.2	%	4.5	%	—		—		4.5	%
Charlotte	1,492,000		72.9	%	3.9	%	—		—		3.9	%
Greenville	1,127,000		80.5	%	3.1	%	0.1	%	—		3.2	%
Columbia	426,000		60.4	%	1.0	%	—		—		1.0	%
Orlando	222,000		93.3	%	0.9	%	—		—		0.9	%
Other	100,000		61.3	%	0.3	%	—		—		0.3	%
Total	33,866,000		85.0	%	83.9	%	7.6	%	8.5	%	100.0	%

Summary by Location, Including Joint Venture Properties:

Market	Rentable Square Feet		Occupancy		Percentage of Annualized Revenue 2/6/
					Office		Industrial		Retail		Multi-Family		Total
Atlanta	7,661,000		84.6	%	11.9	%	2.8	%	—		—		14.7	%
Raleigh 3/	5,052,000		85.2	%	14.3	%	0.1	%	—		—		14.4	%
Tampa	4,401,000		72.3	%	12.2	%	—		—		—		12.2	%
Kansas City	2,736,000	4/	92.9	%	4.6	%	—		7.6	%	—		12.2	%
Nashville	2,870,000		93.3	%	10.6	%	—		—		—		10.6	%
Piedmont Triad 5/	7,015,000		92.9	%	6.0	%	3.8	%	—		—		9.8	%
Richmond	2,248,000		95.1	%	6.8	%	—		—		—		6.8	%
Memphis	1,216,000		83.2	%	4.0	%	—		—		—		4.0	%
Des Moines	2,253,000		91.5	%	3.0	%	0.4	%	0.1	%	0.4	%	3.9	%
Orlando	1,905,000		90.1	%	3.6	%	—		—		—		3.6	%
Charlotte	1,640,000		75.4	%	3.6	%	—		—		—		3.6	%
Greenville	1,127,000		80.5	%	2.8	%	0.1	%	—		—		2.9	%
Columbia	426,000		60.4	%	0.9	%	—		—		—		0.9	%
Other	210,000		81.6	%	0.4	%	—		—		—		0.4	%
Total	40,760,000		84.7	%	84.7	%	7.2	%	7.7	%	0.4	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

3/ Raleigh Market encompasses Raleigh, Durham, Research Triangle metropolitan area.

4/ Excludes basement space in the Country Club Plaza property of 430,000 square feet

5/ Piedmont Triad Market encompasses Greensboro, Winston-Salem metropolitan area.

6/ Includes Highwoods’ share of Joint Venture Annualized Rental Revenue, see page 35

Page 5

Portfolio Summary - Wholly-Owned Properties Only 1/

(Continued)

As of December 31, 2004

	Office Properties					Industrial
Market	Rentable Square Feet	Occupancy		Percentage of Office Annualized Revenue 2/		Rentable Square Feet	Occupancy		Percentage of Industrial Annualized Revenue 2/
Raleigh	4,496,000	84.0	%	18.7	%	101,000	74.9	%	2.2	%
Tampa	4,196,000	71.0	%	16.0	%	—	—		—
Nashville	2,870,000	93.3	%	14.1	%	—	—		—
Atlanta	3,575,000	83.0	%	14.0	%	3,251,000	84.3	%	41.4	%
Richmond	1,835,000	94.1	%	8.3	%	—	—		—
Piedmont Triad	2,281,000	85.2	%	7.5	%	4,370,000	96.3	%	55.4	%
Memphis	1,216,000	83.2	%	5.3	%	—	—		—
Kansas City	895,000	89.1	%	5.0	%	4,000	100.0	%	0.1	%
Charlotte	1,492,000	72.9	%	4.7	%	—	—		—
Greenville	1,024,000	85.7	%	3.7	%	103,000	28.9	%	0.9	%
Columbia	426,000	60.4	%	1.2	%	—	—		—
Orlando	222,000	93.3	%	1.1	%	—	—		—
Other	100,000	61.3	%	0.4	%	—	—		—
	24,628,000	82.7	%	100.0	%	7,829,000	90.2	%	100.0	%

	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Revenue 2/
Kansas City 3/	1,409,000	97.3	%	100.0	%
	1,409,000	97.3	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

3/ Excludes basement space in the Country Club Plaza property of 430,000 square feet

Page 6

Occupancy Trends - Office, Industrial and Retail Properties 1/

Market	Measurement	12/31/04		09/30/04		06/30/04		03/31/04		12/31/03
Atlanta	Rentable Square Feet	6,825,000		6,825,000		6,821,000		6,919,000		6,919,000
	Occupancy	83.7	%	81.3	%	80.7	%	78.8	%	78.4	%
	Current Properties 2/	83.7	%	81.3	%	80.7	%	78.9	%	78.4	%
Charlotte	Rentable Square Feet	1,492,000		1,655,000		1,655,000		1,655,000		1,655,000
	Occupancy	72.9	%	74.6	%	73.9	%	80.5	%	79.6	%
	Current Properties 2/	72.9	%	75.1	%	74.1	%	81.6	%	80.5	%
Columbia	Rentable Square Feet	426,000		426,000		426,000		426,000		426,000
	Occupancy	60.4	%	57.5	%	57.9	%	58.6	%	57.9	%
	Current Properties 2/	60.4	%	57.5	%	57.9	%	58.6	%	57.8	%
Greenville	Rentable Square Feet	1,127,000		1,319,000		1,319,000		1,319,000		1,318,000
	Occupancy	80.5	%	79.4	%	78.8	%	78.8	%	80.2	%
	Current Properties 2/	80.5	%	78.4	%	77.4	%	77.4	%	79.0	%
Kansas City 3/	Rentable Square Feet	2,308,000		2,308,000		2,310,000		2,309,000		2,433,000
	Occupancy	94.1	%	92.4	%	91.4	%	91.2	%	92.7	%
	Current Properties 2/	94.1	%	92.4	%	91.4	%	91.2	%	92.8	%
Memphis	Rentable Square Feet	1,216,000		1,216,000		1,216,000		1,216,000		1,216,000
	Occupancy	83.2	%	82.1	%	82.0	%	81.3	%	81.0	%
	Current Properties 2/	83.2	%	82.1	%	82.0	%	81.3	%	81.0	%
Nashville	Rentable Square Feet	2,870,000		2,870,000		2,870,000		2,870,000		2,869,000
	Occupancy	93.3	%	93.4	%	91.7	%	89.8	%	91.5	%
	Current Properties 2/	93.3	%	93.4	%	91.7	%	89.8	%	91.4	%
Orlando	Rentable Square Feet	222,000		387,000		387,000		1,656,000		299,000
	Occupancy	93.2	%	94.4	%	52.9	%	75.8	%	44.9	%
	Current Properties 2/	93.2	%	93.2	%	88.5	%	91.5	%	90.6	%
Piedmont Triad	Rentable Square Feet	6,652,000		6,652,000		6,652,000		6,685,000		6,688,000
	Occupancy	92.5	%	91.9	%	91.1	%	90.5	%	90.0	%
	Current Properties 2/	92.5	%	91.9	%	91.1	%	91.0	%	90.5	%
Raleigh	Rentable Square Feet	4,597,000		4,739,000		4,808,000		4,664,000		4,706,000
	Occupancy	83.8	%	81.1	%	79.4	%	80.9	%	80.8	%
	Current Properties 2/	83.8	%	80.8	%	79.4	%	79.6	%	79.4	%
Richmond	Rentable Square Feet	1,835,000		1,835,000		1,835,000		1,851,000		1,852,000
	Occupancy	94.1	%	92.0	%	89.7	%	90.9	%	91.5	%
	Current Properties 2/	94.1	%	92.0	%	89.7	%	91.0	%	91.6	%
Tampa	Rentable Square Feet	4,196,000		4,221,000		4,277,000		4,443,000		4,441,000
	Occupancy	71.0	%	66.1	%	65.9	%	63.7	%	63.4	%
	Current Properties 2/	71.0	%	66.1	%	66.8	%	65.9	%	65.5	%
Total 4/	Rentable Square Feet	33,766,000		34,453,000		34,576,000		36,013,000		34,822,000
	Occupancy	85.0	%	83.2	%	81.8	%	81.4	%	81.5	%
	Current Properties 2/	85.0	%	83.2	%	82.3	%	82.1	%	82.1	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Only properties that were owned and in-service on December 31, 2004 are included for each quarter shown.

3/ Excludes basement space in the Country Club Plaza property of 430,000 square feet.

4/ Excludes 100,000 square foot building located in South Florida

Page 7

Leasing Statistics

Office Portfolio 1/

	Three Months Ended
	12/31/04 2/			9/30/04 3/			6/30/04 4/			3/31/04 5/			12/31/03			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		206			219			230			209			179			209
Rentable square footage leased		1,101,291			1,368,577			1,375,372			1,191,746			962,636			1,199,924
Square footage of Renewal Deals		726,959			703,003			1,011,662			673,551			614,969			746,029
Renewed square footage (% of total)		66.0	%		51.4	%		73.6	%		56.5	%		63.9	%		62.2	%
New Leases square footage (% of total)		34.0	%		48.6	%		26.4	%		43.5	%		36.1	%		37.8	%
Average per rentable square foot over the lease term:
Base rent	$	17.40		$	16.68		$	17.64		$	17.43		$	16.12		$	17.05
Tenant improvements		(1.51	)		(1.27	)		(1.09	)		(1.57	)		(1.09	)		(1.31	)
Leasing commissions 6/		(0.62	)		(0.64	)		(0.52	)		(0.58	)		(0.64	)		(0.60	)
Rent concessions		(0.31	)		(0.37	)		(0.27	)		(0.63	)		(0.35	)		(0.39	)
Effective rent		14.96			14.40			15.76			14.65			14.04			14.75
Expense stop		(5.61	)		(5.32	)		(5.25	)		(5.70	)		(5.35	)		(5.45	)
Equivalent effective net rent	$	9.35		$	9.08		$	10.51		$	8.95		$	8.69		$	9.30
Average term in years		5.0			3.7			4.3			4.8			4.1			4.4
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	9,208,835		$	9,455,102		$	8,908,277		$	10,063,665		$	5,355,637		$	8,598,303
Rentable square feet		1,101,291			1,368,577			1,375,372			1,191,746			962,636			1,199,924
Per rentable square foot	$	8.36		$	6.91		$	6.48		$	8.44		$	5.56		$	7.17
Leasing Commissions:
Total dollars committed under signed leases 6/	$	2,806,566		$	2,969,620		$	2,878,161		$	2,747,400		$	2,102,659		$	2,700,881
Rentable square feet		1,101,291			1,368,577			1,375,372			1,191,746			962,636			1,199,924
Per rentable square foot	$	2.55		$	2.17		$	2.09		$	2.31		$	2.18		$	2.25
Total:
Total dollars committed under signed leases	$	12,015,400		$	12,424,721		$	11,786,438		$	12,811,064		$	7,458,296		$	11,299,184
Rentable square feet		1,101,291			1,368,577			1,375,372			1,191,746			962,636			1,199,924
Per rentable square foot	$	10.91		$	9.08		$	8.57		$	10.75		$	7.75		$	9.42

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Includes 111K square feet of leases that start in 2007 or later

3/ Includes 128K square feet of leases that start in 2006 or later

4/ Includes 100K square feet of leases that start in 2006 or later

5/ Includes 72K square feet of leases that start in 2006 or later

6/ Excludes a full allocation of internal marketing cost

Page 8

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	12/31/04			9/30/04 1/			06/30/04			03/31/04			12/31/03			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		36			34			7			32			36			29
Rentable square footage leased		1,216,644			285,706			820,933			630,829			1,131,281			817,079
Square footage of Renewal Deals		875,445			246,797			642,011			448,003			968,879			636,227
Renewed square footage (% of total)		72.0	%		86.4	%		78.2	%		71.0	%		85.6	%		77.9	%
New Leases square footage (% of total)		28.0	%		13.6	%		21.8	%		29.0	%		14.4	%		22.1	%
Average per rentable square foot over the lease term:
Base rent	$	3.49		$	4.73		$	4.11		$	3.67		$	3.79		$	3.96
Tenant improvements		(0.13	)		(0.33	)		(0.31	)		(0.17	)		(0.08	)		(0.20	)
Leasing commissions 2/		(0.06	)		(0.07	)		(0.08	)		(0.14	)		(0.08	)		(0.09	)
Rent concessions		(0.03	)		(0.05	)		(0.17	)		(0.05	)		(0.05	)		(0.07	)
Effective rent		3.27			4.28			3.55			3.31			3.58			3.60
Expense stop		(0.09	)		(0.54	)		(0.36	)		(0.18	)		(0.20	)		(0.27	)
Equivalent effective net rent	$	3.18		$	3.74		$	3.19		$	3.13		$	3.38		$	3.33
Average term in years		2.0			2.6			3.2			2.6			3.2			2.7
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	756,077		$	307,534		$	1,805,334		$	640,867		$	517,025		$	805,367
Rentable square feet		1,216,644			285,706			820,933			630,829			1,131,281			817,079
Per rentable square foot	$	0.62		$	1.08		$	2.20		$	1.02		$	0.46		$	0.99
Leasing Commissions:
Total dollars committed under signed leases 2/	$	226,000		$	64,714		$	207,676		$	280,486		$	338,143		$	223,404
Rentable square feet		1,216,644			285,706			820,933			630,829			1,131,281			817,079
Per rentable square foot	$	0.19		$	0.23		$	0.25		$	0.44		$	0.30		$	0.27
Total:
Total dollars committed under signed leases	$	982,077		$	372,247		$	2,013,010		$	921,354		$	855,168		$	1,028,771
Rentable square feet		1,216,644			285,706			820,933			630,829			1,131,281			817,079
Per rentable square foot	$	0.81		$	1.30		$	2.45		$	1.46		$	0.76		$	1.26

1/ Includes 74K square feet of leases that start in 2006 or later

2/ Excludes a full allocation of internal marketing cost

Page 9

Leasing Statistics

Retail Portfolio

	Three Months Ended
	12/31/04			9/30/04			6/30/04 1/			3/31/04 2/			12/31/03			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		23			18			13			10			9			15
Rentable square footage leased		106,629			34,300			38,548			37,303			75,947			58,545
Square footage of Renewal Deals		78,579			15,530			17,482			27,219			53,541			38,470
Renewed square footage (% of total)		73.7	%		45.3	%		45.4	%		73.0	%		70.5	%		65.7	%
New Leases square footage (% of total)		26.3	%		54.7	%		54.6	%		27.0	%		29.5	%		34.3	%
Average per rentable square foot over the lease term:
Base rent	$	17.03		$	26.45		$	22.98		$	30.87		$	12.30		$	21.93
Tenant improvements		(1.73	)		(1.84	)		(2.04	)		(1.58	)		(0.31	)		(1.50	)
Leasing commissions 3/		(0.26	)		(0.56	)		(0.32	)		(0.31	)		(0.14	)		(0.32	)
Rent concessions		0.00			(0.04	)		0.00			(0.06	)		0.00			(0.02	)
Effective rent		15.04			24.01			20.62			28.92			11.85			20.09
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00
Equivalent effective net rent	$	15.04		$	24.01		$	20.62		$	28.92		$	11.85		$	20.09
Average term in years		8.3			5.7			8.0			6.1			6.8			7.0
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	2,137,327		$	403,309		$	800,125		$	866,975		$	239,110		$	889,369
Rentable square feet		106,629			34,300			38,548			37,303			75,947			58,545
Per rentable square foot	$	20.04		$	11.76		$	20.76		$	23.24		$	3.15		$	15.19
Leasing Commissions:
Total dollars committed under signed leases 3/	$	220,528		$	86,458		$	34,423		$	28,206		$	17,212		$	77,365
Rentable square feet		106,629			34,300			38,548			37,303			75,947			58,545
Per rentable square foot	$	2.07		$	2.52		$	0.89		$	0.76		$	0.23		$	1.32
Total:
Total dollars committed under signed leases	$	2,357,855		$	489,767		$	834,548		$	895,181		$	256,322		$	966,735
Rentable square feet		106,629			34,300			38,548			37,303			75,947			58,545
Per rentable square foot	$	22.11		$	14.28		$	21.65		$	24.00		$	3.38		$	16.51

1/ Includes 6K square feet of leases that start in 2006 or later

2/ Includes 16K square feet of leases that start in 2006 or later

3/ Excludes a full allocation of internal marketing cost

Page 10

Leasing Statistics by Market

For the Three Months ended December 31, 2004

Office Portfolio 1/

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Raleigh	273,485	5.0	$	15.51	$	8.09	$	3.25
Tampa	150,572	4.6		19.15		11.73		2.48
Memphis	147,013	6.9		19.46		14.00		2.12
Nashville	141,497	6.5		20.31		9.13		3.56
Richmond	114,827	4.2		19.16		7.44		1.66
Piedmont Triad	87,039	4.4		11.11		2.26		0.26
Atlanta	77,653	3.0		12.14		3.75		1.56
Charlotte	70,122	3.5		14.57		5.88		1.64
Kansas City	23,543	3.4		21.95		2.08		3.31
Orlando	6,788	2.7		24.03		7.56		0.00
Greenville	6,167	2.7		18.31		3.61		1.42
Columbia	2,585	2.7		14.41		0.93		1.55
	1,101,291	5.0	$	17.09	$	8.36	$	2.55
Industrial Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Piedmont Triad	954,519	1.5	$	3.08	$	0.17	$	0.08
Atlanta	262,125	3.7		4.84		2.27		0.50
	1,216,644	2.0	$	3.46	$	0.62	$	0.19
Retail Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF
Kansas City	106,629	8.3	$	17.03	$	20.04	$	2.07
	106,629	8.3	$	17.03	$	20.04	$	2.07

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Total lease commisions per square foot excludes all internal charges from Leasing Departments, which are not allocated to individual leases.

Page 11

Rental Rate Comparisons by Market

For the Three Months ended December 31, 2004

Office Portfolio 1/

Market	Rentable Square Feet Leased	Current GAAP Rent		Previous GAAP Rent		Percentage Change GAAP Rent
Raleigh	273,485	$	15.51	$	16.88	-8.1	%
Tampa	150,572		19.15		19.46	-1.6	%
Memphis	147,013		19.46		19.27	1.0	%
Nashville	141,497		20.31		19.44	4.5	%
Richmond	114,827		19.16		18.53	3.4	%
Piedmont Triad	87,039		11.11		15.15	-26.7	%
Atlanta	77,653		12.14		17.64	-31.2	%
Charlotte	70,122		14.57		15.85	-8.1	%
Kansas City	23,543		21.95		20.67	6.2	%
Orlando	6,788		24.03		20.34	18.1	%
Greenville	6,167		18.31		17.24	6.2	%
Columbia	2,585		14.41		17.99	-19.9	%
	1,101,291	$	17.09	$	17.99	-5.0	%
Cash Rent Growth	1,101,291	$	16.43	$	19.02	-13.7	%
Industrial Portfolio
Market	Rentable Square Feet Leased	Current GAAP Rent		Previous GAAP Rent		Percentage Change GAAP Rent
Piedmont Triad	954,519	$	3.08	$	3.03	1.6	%
Atlanta	262,125		4.84		5.54	-12.6	%
	1,216,644	$	3.46	$	3.60	-3.8	%
Cash Rent Growth	1,216,644	$	3.45	$	3.67	-6.0	%
Retail Portfolio
Market	Rentable Square Feet Leased	Current GAAP Rent		Previous GAAP Rent		Percentage Change GAAP Rent
Kansas City	106,629	$	17.03	$	17.20	-1.0	%
	106,629	$	17.03	$	17.20	-1.0	%
Cash Rent Growth	106,629	$	15.99	$	17.60	-9.1	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

Page 12

Lease Expirations

December 31, 2004

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Office: 2/
2005 3/	3,114,226	15.2	%	$	56,695	$	18.21	15.9	%
2006	3,179,399	15.5	%		59,037		18.57	16.6	%
2007	2,069,793	10.2	%		35,202		17.01	9.9	%
2008	3,111,840	15.3	%		50,196		16.13	14.1	%
2009	2,838,459	13.9	%		49,006		17.27	13.7	%
2010	1,913,500	9.4	%		34,812		18.19	9.8	%
2011	1,389,886	6.8	%		25,769		18.54	7.2	%
2012	766,121	3.8	%		14,066		18.36	3.9	%
2013	480,340	2.4	%		8,087		16.84	2.3	%
2014	419,418	2.1	%		7,868		18.76	2.2	%
2015 and thereafter	1,099,229	5.4	%		15,834		14.40	4.4	%
	20,382,211	100.0	%	$	356,572	$	17.49	100.0	%
Industrial:
2005 4/	1,981,682	28.2	%	$	8,377	$	4.23	25.9	%
2006	964,023	13.7	%		4,821		5.00	14.9	%
2007	1,897,292	26.9	%		8,746		4.61	27.1	%
2008	627,041	8.9	%		2,851		4.55	8.8	%
2009	644,325	9.1	%		3,598		5.58	11.1	%
2010	159,418	2.3	%		795		4.99	2.5	%
2011	150,822	2.1	%		713		4.73	2.2	%
2012	171,340	2.4	%		435		2.54	1.3	%
2013	102,384	1.5	%		621		6.07	1.9	%
2014	206,731	2.9	%		799		3.86	2.5	%
2015 and thereafter	142,170	2.0	%		596		4.19	1.8	%
	7,047,228	100.0	%	$	32,352	$	4.59	100.0	%

1/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

2/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

3/ Includes 104,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

4/ Includes 212,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue

Note: 2005 and beyond expirations that have been renewed are reflected above based on the renewal’s expiration date.

Page 13

Lease Expirations

December 31, 2004

(Continued)

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Retail:
2005 2/	64,184	4.7	%	$	1,747	$	27.22	4.8	%
2006	101,607	7.4	%		2,498		24.58	6.9	%
2007	79,810	5.8	%		2,197		27.53	6.1	%
2008	131,003	9.6	%		3,711		28.33	10.3	%
2009	190,401	13.9	%		4,735		24.87	13.1	%
2010	88,790	6.5	%		2,989		33.66	8.3	%
2011	58,071	4.2	%		1,867		32.15	5.2	%
2012	140,336	10.2	%		3,923		27.95	10.9	%
2013	108,866	7.9	%		2,681		24.63	7.4	%
2014	83,349	6.1	%		1,570		18.84	4.3	%
2015 and thereafter	324,988	23.7	%		8,212		25.27	22.7	%
	1,371,405	100.0	%	$	36,130	$	26.35	100.0	%
Total:
2005 3/4/	5,160,092	17.9	%		66,819		12.95	15.6	%
2006	4,245,029	14.7	%		66,356		15.63	15.6	%
2007	4,046,895	14.1	%		46,145		11.40	10.9	%
2008	3,869,884	13.4	%		56,758		14.67	13.4	%
2009	3,673,185	12.8	%		57,339		15.61	13.5	%
2010	2,161,708	7.5	%		38,596		17.85	9.1	%
2011	1,598,779	5.6	%		28,349		17.73	6.7	%
2012	1,077,797	3.7	%		18,424		17.09	4.3	%
2013	691,590	2.4	%		11,389		16.47	2.7	%
2014	709,498	2.5	%		10,237		14.43	2.4	%
2015 and thereafter	1,566,387	5.4	%		24,642		15.73	5.8	%
	28,800,844	100.0	%	$	425,054	$	14.76	100.0	%

1/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

2/ Includes 10,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue

3/ Includes 326,000 square feet of leases that are on a month to month basis or 0.7% of total annualized revenue

4/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharingarrangements under FAS 66

Note: 2005 and beyond expirations that have been renewed are reflected above based on the renewal’s expiration date.

Page 14

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands

		Three Months Ended
		3/31/05 2/			06/30/05			09/30/05			12/31/05			Total
Atlanta	RSF		151,868			72,363			343,766			30,501			598,498
	% of Total Office RSF		0.7	%		0.4	%		1.7	%		0.1	%		2.9	%
	Annualized Revenue 3/	$	1,888		$	1,191		$	5,862		$	468		$	9,409
	% of Total Office Annl Rev		0.5	%		0.3	%		1.6	%		0.1	%		2.6	%
Charlotte	RSF		139,577			47,871			58,557			22,267			268,272
	% of Total Office RSF		0.7	%		0.2	%		0.3	%		0.1	%		1.3	%
	Annualized Revenue 3/	$	2,286		$	900		$	767		$	377		$	4,330
	% of Total Office Annl Rev		0.6	%		0.3	%		0.2	%		0.1	%		1.2	%
Columbia	RSF		0			0			27,437			3,352			30,789
	% of Total Office RSF		0.0	%		0.0	%		0.1	%		0.0	%		0.2	%
	Annualized Revenue 3/	$	—		$	—		$	506		$	60		$	566
	% of Total Office Annl Rev		0.0	%		0.0	%		0.1	%		0.0	%		0.2	%
Greenville	RSF		11,608			0			101,444			0			113,052
	% of Total Office RSF		0.1	%		0.0	%		0.5	%		0.0	%		0.6	%
	Annualized Revenue 3/	$	257		$	—		$	1,585		$	—		$	1,842
	% of Total Office Annl Rev		0.1	%		0.0	%		0.4	%		0.0	%		0.5	%
Kansas City	RSF		62,994			33,324			20,970			26,654			143,942
	% of Total Office RSF		0.3	%		0.2	%		0.1	%		0.1	%		0.7	%
	Annualized Revenue 3/	$	1,384		$	627		$	406		$	489		$	2,906
	% of Total Office Annl Rev		0.4	%		0.2	%		0.1	%		0.1	%		0.8	%
Memphis	RSF		88,827			12,770			71,392			9,867			182,856
	% of Total Office RSF		0.4	%		0.1	%		0.4	%		0.0	%		0.9	%
	Annualized Revenue 3/	$	1,594		$	258		$	1,376		$	177		$	3,405
	% of Total Office Annl Rev		0.4	%		0.1	%		0.4	%		0.0	%		1.0	%
Nashville	RSF		62,131			97,717			60,152			115,545			335,545
	% of Total Office RSF		0.3	%		0.5	%		0.3	%		0.6	%		1.6	%
	Annualized Revenue 3/	$	1,289		$	2,014		$	1,231		$	2,362		$	6,896
	% of Total Office Annl Rev		0.4	%		0.6	%		0.3	%		0.7	%		1.9	%
Orlando	RSF		7,847			0			0			0			7,847
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 3/	$	130		$	—		$	—		$	—		$	130
	% of Total Office Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Piedmont Triad	RSF		35,735			75,089			96,135			41,764			248,723
	% of Total Office RSF		0.2	%		0.4	%		0.5	%		0.2	%		1.2	%
	Annualized Revenue 3/	$	623		$	1,349		$	1,515		$	709		$	4,196
	% of Total Office Annl Rev		0.2	%		0.4	%		0.4	%		0.2	%		1.2	%
Raleigh	RSF		79,653			176,674			118,453			109,598			484,378
	% of Total Office RSF		0.3	%		0.9	%		0.6	%		0.5	%		2.3	%
	Annualized Revenue 3/	$	1,428		$	3,443		$	2,325		$	2,272		$	9,468
	% of Total Office Annl Rev		0.4	%		1.0	%		0.7	%		0.6	%		2.7	%
Richmond	RSF		20,687			64,056			163,736			92,200			340,679
	% of Total Office RSF		0.1	%		0.3	%		0.8	%		0.5	%		1.7	%
	Annualized Revenue 3/	$	391		$	1,151		$	3,216		$	1,409		$	6,167
	% of Total Office Annl Rev		0.1	%		0.3	%		0.9	%		0.4	%		1.7	%
Tampa	RSF		118,001			65,225			87,754			67,089			338,069
	% of Total Office RSF		0.6	%		0.3	%		0.4	%		0.3	%		1.7	%
	Annualized Revenue 3/	$	2,174		$	1,463		$	1,818		$	1,472		$	6,927
	% of Total Office Annl Rev		0.6	%		0.4	%		0.5	%		0.4	%		1.9	%
Other	RSF		1,095			0			20,481			0			21,576
	% of Total Office RSF		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
	Annualized Revenue 3/	$	5		$	—		$	451		$	—		$	456
	% of Total Office Annl Rev		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
Total	RSF		780,023			645,089			1,170,277			518,837			3,114,226
	% of Total Office RSF		3.8	%		3.2	%		5.7	%		2.5	%		15.2	%
	Annualized Revenue 3/	$	13,449		$	12,396		$	21,058		$	9,795		$	56,698
	% of Total Office Annl Rev		3.8	%		3.5	%		5.9	%		2.7	%		15.9	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Includes 104,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

3/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 15

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

		Three Months Ended
		3/31/05 1/			06/30/05			09/30/05			12/31/05			Total
Atlanta	RSF		198,966			104,219			170,528			271,953			745,666
	% of Total Industrial RSF		2.8	%		1.5	%		2.4	%		3.9	%		10.6	%
	Annualized Revenue 2/	$	548		$	415		$	837		$	1,595		$	3,395
	% of Total Industrial Annl Rev		1.7	%		1.3	%		2.6	%		4.9	%		10.5	%
Charlotte	RSF		0			0			0			0			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	—		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Greenville	RSF		0			0			0			0			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	—		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Kansas City	RSF		2,018			0			0			0			2,018
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	17		$	—		$	—		$	—		$	17
	% of Total Industrial Annl Rev		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Piedmont Triad	RSF		840,404			92,444			232,595			26,966			1,192,409
	% of Total Industrial RSF		11.9	%		1.3	%		3.3	%		0.4	%		16.9	%
	Annualized Revenue 2/	$	3,143		$	524		$	753		$	184		$	4,604
	% of Total Industrial Annl Rev		9.7	%		1.6	%		2.3	%		0.6	%		14.2	%
Raleigh	RSF		3,728			5,950			31,911			0			41,589
	% of Total Industrial RSF		0.1	%		0.1	%		0.5	%		0.0	%		0.6	%
	Annualized Revenue 2/	$	34		$	49		$	278		$	—		$	361
	% of Total Industrial Annl Rev		0.1	%		0.2	%		0.9	%		0.0	%		1.1	%
Total	RSF		1,045,116			202,613			435,034			298,919			1,981,682
	% of Total Industrial RSF		14.8	%		2.9	%		6.2	%		4.2	%		28.1	%
	Annualized Revenue 2/	$	3,742		$	988		$	1,868		$	1,779		$	8,377
	% of Total Industrial Annl Rev		11.6	%		3.1	%		5.8	%		5.5	%		25.9	%

1/ Includes 212,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue

2/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 16

Office Lease Expirations by Market by Year 1/

Dollars in thousands

		2005 2/			2006			2007			2008			Thereafter
Atlanta	RSF		598,498			373,647			199,083			539,637			1,275,489
	% of Total Office RSF		2.9	%		1.8	%		1.0	%		2.6	%		6.3	%
	Annualized Revenue 3/	$	9,410		$	5,906		$	2,899		$	8,487		$	23,164
	% of Total Office Annl Rev		2.6	%		1.7	%		0.8	%		2.4	%		6.5	%
Charlotte	RSF		268,272			171,575			125,838			102,969			419,262
	% of Total Office RSF		1.3	%		0.8	%		0.6	%		0.5	%		2.1	%
	Annualized Revenue 3/	$	4,330		$	2,751		$	1,912		$	1,653		$	5,948
	% of Total Office Annl Rev		1.2	%		0.8	%		0.5	%		0.5	%		1.7	%
Columbia	RSF		30,789			59,586			58,951			63,170			44,698
	% of Total Office RSF		0.2	%		0.3	%		0.3	%		0.3	%		0.2	%
	Annualized Revenue 3/	$	565		$	1,110		$	1,046		$	1,085		$	460
	% of Total Office Annl Rev		0.2	%		0.3	%		0.3	%		0.3	%		0.1	%
Greenville	RSF		113,052			218,167			16,115			98,992			431,299
	% of Total Office RSF		0.6	%		1.1	%		0.1	%		0.5	%		2.1	%
	Annualized Revenue 3/	$	1,842		$	4,097		$	295		$	1,794		$	5,147
	% of Total Office Annl Rev		0.5	%		1.1	%		0.1	%		0.5	%		1.4	%
Kansas City	RSF		143,942			148,045			89,495			56,558			359,313
	% of Total Office RSF		0.7	%		0.7	%		0.4	%		0.3	%		1.8	%
	Annualized Revenue 3/	$	2,906		$	3,284		$	1,875		$	1,113		$	8,621
	% of Total Office Annl Rev		0.8	%		0.9	%		0.5	%		0.3	%		2.4	%
Memphis	RSF		182,856			96,277			103,781			185,782			442,961
	% of Total Office RSF		0.9	%		0.5	%		0.5	%		0.9	%		2.2	%
	Annualized Revenue 3/	$	3,405		$	1,796		$	1,974		$	3,582		$	8,207
	% of Total Office Annl Rev		1.0	%		0.5	%		0.6	%		1.0	%		2.3	%
Nashville	RSF		335,545			471,315			235,334			178,944			1,451,973
	% of Total Office RSF		1.6	%		2.3	%		1.2	%		0.9	%		7.1	%
	Annualized Revenue 3/	$	6,896		$	9,540		$	4,560		$	3,378		$	25,943
	% of Total Office Annl Rev		1.9	%		2.7	%		1.3	%		0.9	%		7.3	%
Orlando	RSF		7,847			6,465			19,339			8,216			164,934
	% of Total Office RSF		0.0	%		0.0	%		0.1	%		0.0	%		0.8	%
	Annualized Revenue 3/	$	130		$	170		$	338		$	184		$	3,177
	% of Total Office Annl Rev		0.0	%		0.0	%		0.1	%		0.1	%		0.9	%
Piedmont Triad	RSF		248,723			182,774			283,320			617,992			611,382
	% of Total Office RSF		1.2	%		0.9	%		1.4	%		3.0	%		3.0	%
	Annualized Revenue 3/	$	4,196		$	3,124		$	3,251		$	7,054		$	9,131
	% of Total Office Annl Rev		1.2	%		0.9	%		0.9	%		2.0	%		2.6	%
Raleigh	RSF		484,378			827,520			372,092			560,340			1,531,136
	% of Total Office RSF		2.4	%		4.1	%		1.8	%		2.7	%		7.5	%
	Annualized Revenue 3/	$	9,467		$	14,394		$	6,908		$	9,580		$	26,308
	% of Total Office Annl Rev		2.7	%		4.0	%		1.9	%		2.7	%		7.4	%
Richmond	RSF		340,679			250,054			312,340			202,596			620,244
	% of Total Office RSF		1.7	%		1.2	%		1.5	%		1.0	%		3.0	%
	Annualized Revenue 3/	$	6,166		$	5,007		$	5,069		$	3,742		$	9,587
	% of Total Office Annl Rev		1.7	%		1.4	%		1.4	%		1.0	%		2.7	%
Tampa	RSF		338,069			367,808			241,398			477,195			1,552,973
	% of Total Office RSF		1.7	%		1.8	%		1.2	%		2.3	%		7.6	%
	Annualized Revenue 3/	$	6,925		$	7,700		$	4,752		$	8,026		$	29,723
	% of Total Office Annl Rev		1.9	%		2.2	%		1.3	%		2.3	%		8.3	%
Other	RSF		21,576			6,166			12,707			19,449			1,289
	% of Total Office RSF		0.1	%		0.0	%		0.1	%		0.1	%		0.0	%
	Annualized Revenue 3/	$	456		$	157		$	322		$	518		$	28
	% of Total Office Annl Rev		0.1	%		0.0	%		0.1	%		0.1	%		0.0	%
Total	RSF		3,114,226			3,179,399			2,069,793			3,111,840			8,906,953
	% of Total Office RSF		15.3	%		15.6	%		10.2	%		15.3	%		43.7	%
	Annualized Revenue 3/	$	56,694		$	59,036		$	35,201		$	50,196		$	155,444
	% of Total Office Annl Rev		15.9	%		16.6	%		9.9	%		14.1	%		43.6	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Includes 104,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue

3/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 17

Industrial Lease Expirations by Market by Year

Dollars in thousands

		2005 1/			2006			2007			2008			Thereafter
Atlanta	RSF		745,666			345,292			665,087			213,372			759,492
	% of Total Industrial RSF		10.6	%		4.9	%		9.4	%		3.0	%		10.7	%
	Annualized Revenue 2/	$	3,395		$	2,069		$	3,462		$	1,013		$	3,503
	% of Total Industrial Annl Rev		10.5	%		6.4	%		10.7	%		3.1	%		10.5	%
Charlotte	RSF		0			0			0			0			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	—		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Greenville	RSF		0			16,081			0			5,350			8,470
	% of Total Industrial RSF		0.0	%		0.2	%		0.0	%		0.1	%		0.1	%
	Annualized Revenue 2/	$	—		$	201		$	—		$	58		$	46
	% of Total Industrial Annl Rev		0.0	%		0.6	%		0.0	%		0.2	%		0.1	%
Kansas City	RSF		2,018			0			0			0			1,756
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Revenue 2/	$	17		$	—		$	—		$	—		$	20
	% of Total Industrial Annl Rev		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Piedmont Triad	RSF		1,192,409			590,763			1,232,205			393,131			800,333
	% of Total Industrial RSF		16.9	%		8.4	%		17.5	%		5.6	%		11.4	%
	Annualized Revenue 2/	$	4,603		$	2,433		$	5,284		$	1,618		$	3,920
	% of Total Industrial Annl Rev		14.2	%		7.5	%		16.3	%		5.0	%		12.1	%
Raleigh	RSF		41,589			11,887			0			15,188			7,139
	% of Total Industrial RSF		0.6	%		0.2	%		0.0	%		0.2	%		0.1	%
	Annualized Revenue 2/	$	362		$	118		$	—		$	163		$	67
	% of Total Industrial Annl Rev		1.1	%		0.4	%		0.0	%		0.5	%		0.2	%
Total	RSF		1,981,682			964,023			1,897,292			627,041			1,577,190
	% of Total Industrial RSF		28.1	%		13.7	%		26.9	%		8.9	%		22.3	%
	Annualized Revenue 2/	$	8,377		$	4,821		$	8,746		$	2,852		$	7,556
	% of Total Industrial Annl Rev		25.9	%		14.9	%		27.0	%		8.8	%		23.1	%

1/ Includes 212,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue

2/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 18

Customer Diversification 1/

December 31, 2004

Dollars in thousands

Top 20 Customers

Customer	RSF	Annualized Revenue 2/		Percent of Annualized Revenue 2/		Average Remaining Lease Term in Years
Federal Government	789,696	$	16,466	3.94	%	6.7
AT&T 3/	537,529		10,008	2.40	%	4.1
Price Waterhouse Coopers	297,795		7,385	1.77	%	5.3
State Of Georgia	361,687		7,070	1.69	%	4.2
T-Mobile USA	205,394		4,757	1.14	%	4.5
Sara Lee	1,195,383		4,682	1.12	%	2.7
IBM	194,649		4,100	0.98	%	1.2
Northern Telecom	246,000		3,651	0.87	%	3.2
Volvo	270,774		3,483	0.83	%	4.6
US Airways	295,046		3,376	0.81	%	3.0
Lockton Companies	132,718		3,303	0.79	%	10.2
BB&T	229,459		3,252	0.78	%	6.7
CHS Professional Services	168,436		2,994	0.72	%	2.1
ITC Deltacom 4/	147,379		2,989	0.72	%	0.4
Ford Motor Company	125,989		2,729	0.65	%	5.1
IKON	181,361		2,610	0.63	%	1.7
MCI	127,268		2,533	0.61	%	1.5
Hartford Insurance	116,010		2,508	0.60	%	1.8
Aspect Communications	116,692		2,343	0.56	%	1.9
Jacob’s Engineering	229,626		2,258	0.54	%	11.3
	5,968,891	$	92,497	22.15	%	4.5

By Industry

Category	Percent of Annualized Revenue 2/
Professional, Scientific, and Technical Services	21.6	%
Insurance	10.1	%
Manufacturing	9.4	%
Telecommunication	8.2	%
Finance/Banking	8.0	%
Retail Trade	7.2	%
Government/Public Administration	6.2	%
Health Care and Social Assistance	6.0	%
Wholesale Trade	5.5	%
Transportation and Warehousing	3.3	%
Administrative and Support Services	3.1	%
Real Estate Rental and Leasing	2.8	%
Accommodation and Food Services	2.7	%
Other Services (except Public Administration)	2.7	%
Information	2.1	%
Educational Services	1.1	%
	100.0	%

1/ Excludes properties recorded on our Balance Sheet that were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66

2/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

3/ AT&T and SBC have received final approval on their plans to merge. SBC currently leases 5K square feet with $110K in associated annualized revenue.

4/ ITC Deltacom (formerly Business Telecom) is located in a property that, as of December 31, 2004, is under contract for sale. The sale is projected for the first quarter of 2005.

Page 19

Acquisition Activity

Dollars in thousands

Name	Market	Type 1/	Date Acquired	Square Footage	Total Cost
First quarter 2004:
Signature Plaza	Orlando	O	03/02/04	274,000
Capital Plaza I	Orlando	O	03/02/04	242,000
Capital Plaza II	Orlando	O	03/02/04	303,000
Landmark I	Orlando	O	03/02/04	226,000
Landmark II	Orlando	O	03/02/04	225,000
				1,270,000	$	171,526	2/
Windsor at Metro Center 3/	Orlando	O	03/02/04	88,000	$	6,100	3/
Second quarter 2004:
None
Third quarter 2004:
None
Fourth quarter 2004:
None
				1,358,000	$	177,626

Joint Venture Acquisitions

	Market	Type 1/	Date Acquired	Square Footage	Cost
First quarter 2004:
Glenridge 100	Atlanta	O	02/26/04	91,500
Glenridge 200	Atlanta	O	02/26/04	93,900
				185,400	$	23,850	4/
Second quarter 2004:
None
Third quarter 2004:
None
Fourth quarter 2004:
None
				185,400	$	23,850

1/ The letter “O” represents Office

2/ As discussed in Notes 3 and 18 to the financial statements included in our amended 2003 Form 10K, these five properties held in the MG-HIW LLC joint venture and the related $136.2 million of mortgage debt were consolidated in our statements. In March we acquired our partners 80% interest in the joint venture entity that owns these properties. The $171.5 million amount reflects the $62.5 million to acquire the MG’s 80% equity interest and MG”S 80% interest in the $136.2 million related debt.

3/ We purchased our partner’s 50% interest in this Metrowest property.

4/ We purchased a 40% interest in these two properties.

Page 20

Disposition Activity

Dollars in thousands

Name	Market	Type 1/	Date Sold	Square Footage	Gross Sales Price
First quarter 2004:
Brookside Shopping Center	Kansas City	R	01/29/04	111,800
63rd & Brookside Building	Kansas City	O	01/29/04	7,800
				119,600	$	15,250
Northpark I	Raleigh	O	03/28/04	42,300		4,500
Second quarter 2004:
1309 E. Cary Street	Richmond	O	05/21/04	16,000		1,075
Highwoods Preserve III	Tampa	O	06/16/04	176,000		20,190
1035 Fred Drive	Atlanta	I	06/24/04	100,000		2,000
Third quarter 2004:
Sabal Tech Center	Tampa	O	08/10/04	58,600		3,350
Lake Plaza East	Raleigh	O	08/16/04	71,800		5,850
Fourth quarter 2004:
Highwoods Business Park	Charlotte	I	11/05/04	162,700		9,500
SunPort Center	Orlando	O	11/23/04	165,000		6,800
South Square I	Raleigh	O	11/23/04	57,900		4,700
South Square II	Raleigh	O	11/23/04	59,300		4,050
Bay Vista	Tampa	O	12/08/04	17,800		1,955
Pulse Athletic Club at Highwoods	Raleigh	O	12/17/04	24,800		1,850
Bank of America	Greenville	O	12/22/04	191,600		12,350
				1,263,400	$	93,420
Depreciable Assets Contributed to Joint Ventures
	Market	Type 1/	Date Contributed	Square Footage	Gross Sales Price
First quarter 2004:
None
Second quarter 2004:
Signature Plaza	Orlando	O	06/28/04	274,000
Capital Plaza I	Orlando	O	06/28/04	242,000
Capital Plaza II	Orlando	O	06/28/04	303,000
Landmark I	Orlando	O	06/28/04	226,000
Landmark II	Orlando	O	06/28/04	225,000
				1,270,000	$	126,900	2/
Third quarter 2004:
None
Fourth quarter 2004:
None				1,270,000	$	126,900

1/ The letters “O” and “R” represent Office and Retail, respectively.

2/ As discussed in Note 4 to the financial statements in our amended 2003 Form 10K, the Company sold a 60% equity interest in the subsidiary that owned these five properties and retained a 40% interest. The $126.9 million amount reflects $41.1 million cash received, net of future payments required to be paid by the Company for leasing and tenant improvements, and $85.8 million representing 60% of the $143 million debt.

Page 21

Development Activity

Dollars in thousands

Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/04		Pre - Leasing		Estimated Completion Date	Estimated Stabilization Date
In - Process
Office:
Center for Disease Control	Atlanta	O	109,000	$	21,375	$	—	100	%	4Q05	4Q05
Saxon	Richmond	O	112,000		14,829		3,559	100	%	3Q05	3Q05
FBI 2/	Tampa	O	137,000		31,091		11,025	100	%	4Q05	4Q05
Total or Weighted Average			358,000	$	67,295	$	14,584	100	%
Retail:
Griffith Road/Boutique Shops	Piedmont Triad	R	9,600	$	2,634	$	1,386	44	%	2Q05	2Q06
Total or Weighted Average			9,600	$	2,634	$	1,386	44	%
Total or Weighted Average			367,600	$	69,929	$	15,970	99	%
Completed Not Stabilized 3/
National Archives Record Administration	Atlanta	I	350,000	$	20,387	$	17,014	100	%	3Q04	4Q05
Total or Weighted Average			350,000	$	20,387	$	17,014	100	%
Grand Total or Weighted Average			717,600	$	90,316	$	32,984	99	%
Developed for Sale
	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/04		Pre- Sales		Estimated Completion Date
Grove Park Condominiums	Richmond	O	65,000	$	6,163	$	5,804	76	%	4Q04

1/ The letters “O”, and “I” represent Office and Industrial, respectively.

2/ An approved 25,000 square feet expansion at an additional anticipated cost of $4.5 million is included. The related lease amendment is out for signature.

3/ This property contributed $140,000 in Net Operating Income (Property Revenue - Property Expense) in Q4 2004.

Page 22

Development Land

December, 2004

Dollars in thousands

Market	Acres	Developable Square Footage			Total Estimated Market Value
		Office	Retail	Industrial
On Balance Sheet:
Research Triangle	339	2,774,000	60,000	162,000	$	58,900
Atlanta	249	270,000	1,100,000	1,390,000		35,200
Piedmont Triad	117	787,000	37,000	1,190,000		21,400
Kansas City 1/	46	550,000	91,000	—		12,300
Baltimore	45	771,000	—	—		14,300
Richmond	61	688,000	—	—		10,500
Charlotte	73	1,151,000	—	—		12,600
Nashville	48	830,000	—	—		12,900
Orlando	49	862,000	—	—		15,600
Tampa	29	462,000	—	15,000		12,200
Memphis	22	288,000	—	—		4,200
Greenville	12	150,000	—	—		1,800
Jacksonville	9	80,000	—	—		900
Columbia	2	20,000	—	—		300
	1,101	9,683,000	1,288,000	2,757,000	$	213,100
Deferred or optioned:
Atlanta	25	—	500,000	—
	25	—	500,000	—
Total	1,126	9,683,000	1,788,000	2,757,000

1/ Includes 27 acres of residential land

Page 23

Unconsolidated Joint Ventures Assets, Debt and Liabilities

December 31, 2004

Dollars in thousands (unaudited)

Joint Venture	Type 1/	Own %		Venture’s Books
				Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.0	%	$	8,044	$	565	$	790
Dallas County Partners I, LP	O/ I	50.0	%		44,985		40,712		43,604
Dallas County Partners II, LP	O	50.0	%		16,857		21,223		22,662
Dallas County Partners III, LP	O	50.0	%		45		—		26
Fountain Three	O/I /R	50.0	%		33,569		28,818		30,774
RRHWoods, LLC	O/ M	50.0	%		82,267		69,714		73,467
Kessinger/Hunter, LLC	—	26.5	%		9,058		—		816
4600 Madison Associates, LP	O	12.5	%		21,171		16,010		16,756
Highwoods DLF 98/29, LP	O	22.8	%		138,252		66,206		68,817
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		112,090		58,313		61,682
Highwoods-Markel Associates, LLC	O	50.0	%		50,157		39,442		39,840
MG-HIW Metrowest I, LLC	O	50.0	%		—		—		—
MG-HIW Metrowest II, LLC	O	50.0	%		—		—		—
Concourse Center Associates, LLC	O	50.0	%		14,473		9,519		9,898
Plaza Colonnade, LLC	O/R	50.0	%		80,498		68,685		71,885
Highwoods KC Glenridge Office, LLC	O	40.0	%		24,637		16,500		16,919
Highwoods KC Glenridge Land, LLC	O	40.0	%		770		250		260
HIW-KC Orlando, LLC	O	40.0	%		216,273		143,000		146,603
The Vinings at University Center, LLC	M	50.0	%		1,991		392		392
Total				$	855,137	$	579,349	$	605,191
Joint Venture	Type 1/	Own %		Highwoods’ Share of Joint Venture
				Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.0	%	$	3,942	$	277	$	387
Dallas County Partners I, LP	O/ I	50.0	%		22,493		20,356		21,802
Dallas County Partners II, LP	O	50.0	%		8,429		10,612		11,331
Dallas County Partners III, LP	O	50.0	%		23		—		13
Fountain Three	O/I /R	50.0	%		16,785		14,409		15,387
RRHWoods, LLC	O/ M	50.0	%		41,134		34,857		36,734
Kessinger/Hunter, LLC	—	26.5	%		2,400		—		216
4600 Madison Associates, LP	O	12.5	%		2,646		2,001		2,095
Highwoods DLF 98/29, LP	O	22.8	%		31,535		15,102		15,697
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		48,120		25,034		26,480
Highwoods-Markel Associates, LLC	O	50.0	%		25,079		19,721		19,920
MG-HIW Metrowest I, LLC	O	50.0	%		—		—		—
MG-HIW Metrowest II, LLC	O	50.0	%		—		—		—
Concourse Center Associates, LLC	O	50.0	%		7,237		4,760		4,949
Plaza Colonnade, LLC	O/R	50.0	%		40,249		34,343		35,943
Highwoods KC Glenridge Office, LLC	O	40.0	%		9,855		6,600		6,768
Highwoods KC Glenridge Land, LLC	O	40.0	%		308		100		104
HIW-KC Orlando, LLC	O	40.0	%		86,509		57,200		58,641
The Vinings at University Center, LLC	M	50.0	%		996		196		196
Total				$	347,740	$	245,568	$	256,663

1/ The letters “O”, “I”, “R”, and “M” represent Office, Industrial, Retail, and Multi-Family, respectively.

Page 24

Unconsolidated Joint Ventures Income

For the three months ended December 31, 2004

Dollars in thousands (unaudited)

Joint Venture	Own %		Venture’s Books
			Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Board of Trade Investment Co.	49.0	%	$	634	$	500	$	12	$	121	$	1
Dallas County Partners I, LP	50.0	%		2,986		1,536		740		678		32
Dallas County Partners II, LP	50.0	%		1,649		792		536		186		135
Dallas County Partners III, LP	50.0	%		54		30		—		1		23
Fountain Three	50.0	%		1,709		821		519		408		(39	)
RRHWoods, LLC	50.0	%		3,557		1,889		773		1,024		(129	)
Kessinger/Hunter, LLC	26.5	%		2,079		1,172		—		120		787
4600 Madison Associates, LP	12.5	%		1,312		534		278		441		59
Highwoods DLF 98/29, LP	22.8	%		5,202		1,483		1,124		893		1,702
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%		3,790		1,123		1,129		1,016		522
Highwoods-Markel Associates, LLC	50.0	%		1,618		337		572		356		353
Concourse Center Associates, LLC	50.0	%		526		129		173		83		141
Plaza Colonnade, LLC	50.0	%		769		193		264		354		(42	)
Highwoods KC Glenridge Office, LLC	40.0	%		908		381		210		175		142
Highwoods KC Glenridge Land, LLC	40.0	%		—		5		—		—		(5	)
HIW-KC Orlando, LLC	40.0	%		6,992		2,996		1,895		1,041		1,060
The Vinings at University Center, LLC	50.0	%		—		—		—		—		—
Total			$	33,785	$	13,921	$	8,225	$	6,897	$	4,742
Joint Venture	Own %		Highwoods’ Share of Joint Venture
			Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Board of Trade Investment Co.	49.0	%	$	311	$	245	$	6	$	59	$	1
Dallas County Partners I, LP	50.0	%		1,493		768		370		339		16
Dallas County Partners II, LP	50.0	%		825		396		268		93		68
Dallas County Partners III, LP	50.0	%		27		15		—		1		11
Fountain Three	50.0	%		855		411		260		204		(20	)
RRHWoods, LLC	50.0	%		1,779		945		387		512		(65	)
Kessinger/Hunter, LLC	26.5	%		551		311		—		32		208
4600 Madison Associates, LP	12.5	%		164		67		35		55		7
Highwoods DLF 98/29, LP	22.8	%		1,187		338		256		204		389
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%		1,627		482		485		436		224
Highwoods-Markel Associates, LLC	50.0	%		809		169		286		178		176
Concourse Center Associates, LLC	50.0	%		263		65		87		42		69
Plaza Colonnade, LLC	50.0	%		385		97		132		177		(21	)
Highwoods KC Glenridge Office, LLC	40.0	%		363		152		84		70		57
Highwoods KC Glenridge Land, LLC	40.0	%		—		2		—		—		(2	)
HIW-KC Orlando, LLC	40.0	%		2,797		1,198		758		416		425
The Vinings at University Center, LLC	50.0	%		—		—		—		—		—
Total 1/ 2/			$	13,436	$	5,661	$	3,414	$	2,818	$	1,543

1/ Highwoods’ Share of JV income shown above does not include the amortization of a $143K deferred gain.

2/ Highwoods’ Share of JV income shown above does not include $433K of reimbursed administrative costs.

Page 25

Unconsolidated Joint Ventures Income

For the year ended December 31, 2004

Dollars in thousands (unaudited)

Joint Venture	Own %		Venture’s Books
			Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Board of Trade Investment Co.	49.0	%	$	2,534	$	1,786	$	52	$	461	$	235
Dallas County Partners I, LP	50.0	%		11,895		5,806		2,762		2,085		1,242
Dallas County Partners II, LP	50.0	%		6,276		2,811		2,222		742		501
Dallas County Partners III, LP	50.0	%		215		126		—		6		83
Fountain Three	50.0	%		7,176		3,223		2,116		1,555		282
RRHWoods, LLC	50.0	%		14,049		7,736		2,734		3,561		18
Kessinger/Hunter, LLC	26.5	%		6,895		4,764		—		642		1,489
4600 Madison Associates, LP	12.5	%		5,248		2,207		1,132		1,768		141
Highwoods DLF 98/29, LP	22.8	%		20,063		5,770		4,521		3,550		6,222
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%		14,877		4,441		4,538		4,148		1,750
Highwoods-Markel Associates, LLC	50.0	%		6,607		1,453		2,301		1,459		1,394
MG-HIW Metrowest I, LLC	50.0	%		—		5		—		—		(5	)
MG-HIW Metrowest II, LLC	50.0	%		141		88		39		70		(56	)
Concourse Center Associates, LLC	50.0	%		2,105		568		695		332		510
Plaza Colonnade, LLC	50.0	%		796		196		264		370		(34	)
Highwoods KC Glenridge Office, LLC	40.0	%		2,907		1,256		542		549		560
Highwoods KC Glenridge Land, LLC	40.0	%		—		8		—		—		(8	)
HIW-KC Orlando, LLC	40.0	%		14,179		5,749		3,818		2,077		2,535
The Vinings at University Center, LLC	50.0	%		—		—		—		—		—
Total			$	115,963	$	47,993	$	27,736	$	23,375	$	16,859
Joint Venture	Own %		Highwoods’ Share of Joint Venture
			Revenue		Operating Exp		Interest		Depr/Amort		Net Income
Board of Trade Investment Co.	49.0	%	$	1,242	$	875	$	25	$	226	$	116
Dallas County Partners I, LP	50.0	%		5,948		2,903		1,381		1,043		621
Dallas County Partners II, LP	50.0	%		3,138		1,406		1,111		371		250
Dallas County Partners III, LP	50.0	%		108		63		—		3		42
Fountain Three	50.0	%		3,588		1,612		1,058		778		140
RRHWoods, LLC	50.0	%		7,025		3,868		1,367		1,781		9
Kessinger/Hunter, LLC	26.5	%		1,827		1,262		—		170		395
4600 Madison Associates, LP	12.5	%		656		276		142		221		17
Highwoods DLF 98/29, LP	22.8	%		4,576		1,316		1,031		810		1,419
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%		6,387		1,907		1,948		1,781		751
Highwoods-Markel Associates, LLC	50.0	%		3,304		727		1,151		730		696
MG-HIW Metrowest I, LLC	50.0	%		—		3		—		—		(3	)
MG-HIW Metrowest II, LLC	50.0	%		71		44		20		35		(28	)
Concourse Center Associates, LLC	50.0	%		1,053		284		348		166		255
Plaza Colonnade, LLC	50.0	%		398		98		132		185		(17	)
Highwoods KC Glenridge Office, LLC	40.0	%		1,163		502		217		220		224
Highwoods KC Glenridge Land, LLC	40.0	%		—		3		—		—		(3	)
HIW-KC Orlando, LLC	40.0	%		5,672		2,300		1,527		831		1,014
The Vinings at University Center, LLC	50.0	%		—		—		—		—		—
Total 1/ 2/			$	46,156	$	19,449	$	11,458	$	9,351	$	5,898

1/ Highwoods’ Share of JV income shown above does not include the amortization of a $534K deferred gain.

2/ Highwoods’ Share of JV income shown above does not include $1,151K of reimbursed administrative costs.

Page 26

Joint Ventures Long-Term Debt Detail

Dollars in thousands

Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 12/31/04
Dallas County Partners I, LP	50.0	%	American Express	7.0	%	Sep-09		3,535
Dallas County Partners I, LP	50.0	%	American Express	6.9	%	Jun-09		7,484
Dallas County Partners I, LP	50.0	%	John Hancock Life Insurance Co.	7.6	%	Mar-08		2,995
Dallas County Partners I, LP	50.0	%	State Farm	7.1	%	Oct-08		3,060
Dallas County Partners I, LP	50.0	%	State Farm	7.9	%	Sep-06		3,031
Dallas County Partners I, LP	50.0	%	State Farm	7.5	%	May-07		4,390
Dallas County Partners I, LP	50.0	%	Bank of America	5.7	%	Oct-07		4,010
Dallas County Partners I, LP	50.0	%	State Farm	7.5	%	Dec-07		5,107
Dallas County Partners I, LP	50.0	%	Thrivent	8.5	%	Aug-10		1,690
Dallas County Partners I, LP	50.0	%	Union Planters	6.3	%	Jun-14		3,680
Dallas County Partners I, LP	50.0	%	Union Planters	7.2	%	Jan-06		493
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.0	%	Jul-11		1,237
				7.1	%			40,712
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.2	%	Jun-13		21,223
Fountain Three	50.0	%	John Hancock Life Insurance Co.	7.8	%	Jan-08		6,058
Fountain Three	50.0	%	American Express	6.9	%	Jun-09		4,001
Fountain Three	50.0	%	Thrivent	8.0	%	Oct-10		3,768
Fountain Three	50.0	%	Thrivent	7.3	%	Apr-09		3,605
Fountain Three	50.0	%	Wells Fargo	8.2	%	May-08		2,167
Fountain Three	50.0	%	Lehman Brothers	8.0	%	Jul-09		3,628
Fountain Three	50.0	%	Thrivent	7.0	%	Sep-12		5,591
				7.5	%			28,818
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.0	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Bank of America	6.8	%	Sep-12		27,471
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.0	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.1	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Bank of America	5.7	%	Oct-07		4,063
RRHWoods, LLC	50.0	%	Union Planters	6.3	%	Jun-14		3,680
				3.8	%			69,714
Plaza Colonnade, LLC	50.0	%	Met Life	5.7	%	Jan-17		50,000
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.4	%	Mar-10		1,818
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	6.0	%	Mar-16		4,394
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.9	%	Mar-24		12,473
				5.8	%			68,685
4600 Madison Associates, LLC	12.5	%	State Farm	6.9	%	Apr-18		16,010
Board of Trade Investment Company	49.0	%	KC Board of Trade Clearing Corp.	7.8	%	Sep-07		565
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.8	%	Apr-11		66,206
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.7	%	May-12		58,313
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	7.0	%	Jul-10		9,519
Highwoods KC Orlando, LLC	40.0	%	Met Life	5.2	%	Jul-14		143,000
Highwoods - Markel Associates, LLC	50.0	%	Principal Life Insurance Company	5.8	%	Jan-14		39,442
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.8	%	Jun-14		16,500
Highwoods KC Glenridge Land	40.0	%	Transwestern	0.0	%	Feb-05		250
The Vinings at University Center, LLC	50.0	%	Central Carolina Bank	4.6	%	Dec-07		392
								350,197
				6.1	%		$	579,349
Highwoods’ Share of the above							$	245,568

Page 27

Joint Ventures Portfolio Summary

As of December 31, 2004

Summary by Location:

Market	Rentable Square Feet 1/	Occupancy 2/		Percentage of Annualized Revenue - Highwoods’ Share Only 3/
				Office		Industrial		Retail		Multi-Family		Total
Des Moines	2,253,000	91.4	%	28.6	%	3.6	%	1.0	%	3.5	%	36.7	%
Orlando	1,683,000	89.7	%	25.7	%	—		—		—		25.7	%
Atlanta	835,000	92.5	%	12.9	%	—		—		—		12.9	%
Raleigh	455,000	99.5	%	3.7	%	—		—		—		3.7	%
Kansas City	428,000	86.4	%	8.4	%	—		—		—		8.4	%
Piedmont Triad	364,000	100.0	%	4.0	%	—		—		—		4.0	%
Tampa	205,000	99.1	%	2.1	%	—		—		—		2.1	%
Charlotte	148,000	100.0	%	0.8	%	—		—		—		0.8	%
Richmond	413,000	99.7	%	5.2	%	—		—		—		5.2	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%
Total	6,894,000	92.9	%	91.9	%	3.6	%	1.0	%	3.5	%	100.0	%

1/ Excludes Des Moines’ apartment units

2/ Excludes Des Moines’ apartment occupancy percentage of 95.7%

3/ Annualized Rental Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 28

Joint Ventures Lease Expirations

December 31, 2004

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Revenue 1/		Average Rental Rate		Percent of Annualized Revenue 1/
Total
2005	673,634	10.1	%	$	11,176	$	16.59	9.0	%
2006	657,868	9.9	%		12,485		18.98	10.0	%
2007	375,057	5.6	%		7,670		20.45	6.2	%
2008	1,259,399	18.9	%		21,513		17.08	17.2	%
2009	844,347	12.6	%		15,763		18.67	12.7	%
2010	353,475	5.3	%		6,446		18.24	5.2	%
2011	526,104	7.9	%		9,781		18.59	7.9	%
2012	377,923	5.7	%		8,561		22.65	6.9	%
2013	689,447	10.3	%		13,622		19.76	11.0	%
2014	358,248	5.4	%		7,860		21.94	6.3	%
2015 and thereafter	552,994	8.3	%		9,396		16.99	7.6	%
	6,668,496	100.0	%	$	124,273	$	18.64	100.0	%

1/ Annualized Revenue is December, 2004 rental revenue (base rent plus operating expense pass throughs) multiplied by 12.

Page 29

Joint Ventures Development

Dollars in thousands

Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/04		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Plaza Colonade, LLC 1/	50	%	Kansas City	285,000	$	71,500	$	65,099	76	%	4Q04	3Q05
Summit	50	%	Des Moines	35,000		3,559		3,435	75	%	3Q04	3Q05
Pinehurst	50	%	Des Moines	35,000		3,559		3,497	79	%	3Q04	3Q05
Sonoma	50	%	Des Moines	75,000		9,364		202	0	%	2Q05	2Q06
Total or Weighted Average				430,000	$	87,982	$	72,233	63	%
Highwoods’ Share of the above				430,000	$	43,991	$	36,117	63	%

1/ Includes $16.2 million in investment cost that will be funded by tax increment financing

Page 30