Highwoods Properties (HIW) 8-K Highwoods Properties Reports Fourth Quarter and Year End

Exhibit 99.2

Supplemental Information

December 31, 2006

Supplemental Information

Table of Contents

December 31, 2006

Schedule	Page
Corporate Information	i, ii and iii
Consolidated Statements of Income	1
Statement of Funds from Operations and Additional Information	2
Consolidated Balance Sheets	3
Estimated Net Asset Value	4
Components of Discontinued Operations	5
Capitalization	6
Long-Term Debt Summary	7
Long-Term Debt Detail	8
Portfolio Summary	9, 10 and 11
Occupancy Trends	12
Leasing Statistics	13, 14 and 15
Leasing Statistics by Market	16
Rental Rate Comparisons by Market	17
Lease Expirations	18 and 19
Office Lease Expirations by Market by Quarter	20
Industrial Lease Expirations by Market by Quarter	21
Office Lease Expirations by Market by Year	22
Industrial Lease Expirations by Market by Year	23
Customer Diversification	24
Acquisition Activity	25
Disposition Activity	26
Development Activity	27
Development Land	28
Unconsolidated Joint Ventures Assets, Debt and Liabilities	29
Unconsolidated Joint Ventures Income (Three Months)	30
Unconsolidated Joint Ventures Income (Twelve Months)	31
Joint Ventures Long-Term Debt Detail	32
Joint Ventures Portfolio Summary	33
Joint Ventures Lease Expirations	34
Joint Ventures Development	35

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 29 to 35, unless noted otherwise. Wholly-owned entities include properties classified as both continuing operations and discontinued operations.

All financial information contained in this document is “unaudited.” In addition, 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.

Highwoods Properties, Inc. 12/31/06

Summary

Amounts in thousands, except per share amounts and ratios

	Three Months Ended
	12/31/06			09/30/06			06/30/06			03/31/06			12/31/05
Shares and Units:
Common shares outstanding at end of period		56,211			55,635			54,131			54,142			54,029
Common units outstanding at end of period		4,733			5,014			5,234			5,401			5,450
Weighted average common shares outstanding - basic		55,740			54,470			53,879			53,813			53,774
Weighted average common shares outstanding - diluted		62,365			61,457			60,387			60,588			60,125
Share price:
At end of period	$	40.76		$	37.21		$	36.18		$	33.73		$	28.45
High close during period		41.31			38.15			36.18			34.77			29.74
Low close during period		36.40			35.39			29.56			29.20			27.15
Financial information:
Land sale gains, net of (impairments)	$	6,974		$	2,103		$	(74	)	$	3,040		$	759
Lease termination income		618			249			1,304			885			485
Straight line rental income		2,401			2,006			1,664			2,521			1,639
Capitalized interest		1,770			1,701			930			601			740
Impairments on depreciable properties		—			2,600			—			—			7,677
Gain on sale of depreciable properties		10,925			3,712			1,395			3,164			7,805
Total debt/ total assets 1/		52.7	%		52.9	%		53.2	%		52.7	%		51.8	%
Total debt/ total market capitalization 1/		35.9	%		37.9	%		39.1	%		40.2	%		43.7	%
Funds from operations per share - diluted	$	0.71		$	0.53		$	0.54		$	0.59		$	0.43
Funds from operations per share - diluted, excluding certain items 2/	$	0.71		$	0.59		$	0.55		$	0.62		$	0.56
Wholly - owned property information:
In-Service rentable square feet:
Office		19,244			19,507			19,704			19,691			21,412
Industrial		6,281			6,605			6,706			6,706			6,977
Retail		1,327			1,431			1,408			1,408			1,416
Total		26,852			27,543			27,818			27,805			29,805
In-Service occupancy:
Office		89.0	%		88.1	%		87.1	%		87.1	%		87.5	%
Industrial		91.7	%		91.8	%		89.5	%		88.0	%		92.4	%
Retail		95.7	%		96.2	%		95.3	%		95.7	%		97.5	%
Total		90.0	%		89.4	%		88.1	%		87.7	%		89.1	%

1/ Includes financing obligations.

2/ Excludes impairments on depreciable assets, losses on debt extinguishments and preferred stock redemption charges.

Highwoods Properties, Inc. Page i 12/31/06

Corporate Information

Board of Directors

Thomas W. Adler

Gene H. Anderson

Kay N. Callison

Edward J. Fritsch

Lawrence S. Kaplan

Sherry A. Kellett

L. Glenn Orr Jr.

O. Temple Sloan Jr., Chairman

F. William Vandiver, Jr.

Corporate Officers

Edward J. Fritsch

President, Chief Executive Officer and Director

Michael E. Harris

Executive Vice President and Chief Operating Officer

Terry L. Stevens

Vice President, Chief Financial Officer

S. Hugh Esleeck

Treasurer

Julie M. Kelly

Vice President, Compliance and Internal Audit

Carman J. Liuzzo

Vice President, Investments

Kevin E. Penn

Chief Information Officer and

Vice President, Strategy

Mack D. Pridgen III

Vice President, General Counsel and

Secretary

Tabitha N. Zane

Vice President, Investor Relations and

Corporate Communications

Research Coverage

Credit Suisse - North America

John Stewart - 212-538-3183

Deutsche Banc Securities

Lou Taylor - 212-469-4912

Green Street Advisors

Jim Sullivan - 949-640-8780

Morgan Stanley

David Cohen - 212-761-8564

Smith Barney Citigroup

Jonathan Litt - 212-816-0231

Stifel Nicolaus

John Guinee - 410-454-5520

Wachovia Securities

Chris Haley - 443-263-6773

Highwoods Properties, Inc. ii 12/31/06

Corporate Information

Divisional Officers

Atlanta/Piedmont Triad

    Gene H. Anderson - Senior Vice President

    Atlanta, GA

    James V. Bacchetta, Vice President

    Piedmont Triad, NC

    Mark W. Shumaker, Vice President

Orlando/Tampa

    Michael F. Beale - Senior Vice President

    Orlando, FL

    Michael F. Beale, Senior Vice President

    Tampa, FL

    Dan Woodward, Vice President

Raleigh

    Raleigh, NC

    Thomas “Skip” Hill, Vice President

Richmond

    Richmond, VA

    Paul W. Kreckman, Vice President

Nashville/Memphis/Columbia/Greenville

    W. Brian Reames - Senior Vice President

    Nashville, TN; Columbia, SC; and Greenville, SC

    W. Brian Reames, Senior Vice President

    Memphis, TN

    Steven L. 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

Vice President, Investor Relations and Corporate Communications

Phone: 919-431-1529

Fax: 919-431-1439

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 Corporate Communications/IR Specialist at:

Phone: 919-431-1521

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 and self-managed equity 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, 2006, the Company owned or had an interest in 392 in-service office, industrial and retail properties encompassing approximately 34.3 million square feet. Highwoods also owns 719 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 website at

www.highwoods.com.

Highwoods Properties, Inc. iii 12/31/06

Consolidated Statements of Income

Amounts in thousands, except per share amounts

	Year Ended						Three Months Ended
	12/31/06			12/31/05			12/31/06			09/30/06				06/30/06			03/31/06			12/31/05
Rental and other revenues	$	416,798		$	396,075		$	108,508		$	104,328		��	$	102,883		$	101,079		$	100,738
Operating expenses:
Rental property and other expenses		153,592			141,575			41,352			39,218				36,905			36,117			38,353
Depreciation and amortization		114,935			109,616			30,206			28,460				28,625			27,644			27,164
Impairment of assets held for use		2,600			7,587			—			2,600				—			—			—
General and administrative		37,309			33,063			11,011			8,546				9,060			8,692			9,204
Total operating expenses		308,436			291,841			82,569			78,824				74,590			72,453			74,721
Interest expense:
Contractual		94,229			98,677			22,374			23,809				24,236			23,810			24,645
Amortization of deferred financing costs		2,375			3,372			492			557				582			744			864
Financing obligations		4,162			5,032			972			850				1,398			942			914
		100,766			107,081			23,838			25,216				26,216			25,496			26,423
Other income/(expense):
Interest and other income		7,010			7,078			2,709			1,178				1,146			1,977			1,630
Settlement of tenant bankruptcy claim		1,581			—			1,581			—				—			—			—
Loss on debt extinguishments		(494	)		(453	)		(27	)		—				(467	)		—			—
		8,097			6,625			4,263			1,178				679			1,977			1,630
Income before disposition of property, minority interest and equity in earnings of unconsolidated affiliates		15,693			3,778			6,364			1,466				2,756			5,107			1,224
Gains on disposition of property, net		16,157			14,172			7,862			2,977				1,008			4,310			2,693
Minority interest		(2,226	)		475			(1,088	)		(247	)			(356	)		(535	)		(69	)
Equity in earnings of unconsolidated affiliates		6,841			9,303			1,492			1,342				1,924			2,083			2,339
Income from continuing operations		36,465			27,728			14,630			5,538				5,332			10,965			6,187
Discontinued operations:
Income from discontinued operations, net of minority interest		3,421			11,504			566			776				656			1,423			2,451
Gains, net of impairments, on sales of discontinued operations, net of minority interest		13,858			23,226			9,220			2,595				285			1,758			(1,639	)
		17,279			34,730			9,786			3,371				941			3,181			812
Net income		53,744			62,458			24,416			8,909				6,273			14,146			6,999
Dividends on preferred stock		(17,063	)		(27,238	)		(4,113	)		(4,113	)			(4,113	)		(4,724	)		(5,113	)
Excess of preferred stock redemption cost over carrying value		(1,803	)		(4,272	)		—			—				—			(1,803	)		—
Net income available for common stockholders	$	34,878		$	30,948		$	20,303		$	4,796			$	2,160		$	7,619		$	1,886
Net income per common share - diluted:
Income/(loss) from continuing operations	$	0.31		$	(0.07	)	$	0.18		$	0.03			$	0.02		$	0.08		$	0.02
Income from discontinued operations		0.31			0.65			0.17			0.06				0.02			0.06			0.01
Net income	$	0.62		$	0.58		$	0.35		$	0.09			$	0.04		$	0.14		$	0.03
Weighted average common shares outstanding - diluted		61,362			53,732			62,365			61,457				60,387			60,588			60,125
Dividends declared and paid per common share	$	1.700		$	1.700		$	0.425		$	0.425			$	0.425		$	0.425		$	0.425

Highwoods Properties, Inc. Page 1 12/31/06

Statement of Funds from Operations

and Additional Information

Amounts in thousands, except per share amounts

	Year Ended						Three Months Ended
	12/31/06			12/31/05			12/31/06			09/30/06			06/30/06			03/31/06			12/31/05
Funds from operations:
Net income	$	53,744		$	62,458		$	24,416		$	8,909		$	6,273		$	14,146		$	6,999
Dividends to preferred stockholders		(17,063	)		(27,238	)		(4,113	)		(4,113	)		(4,113	)		(4,724	)		(5,113	)
Excess of preferred stock redemption cost over carrying value		(1,803	)		(4,272	)		—			—			—			(1,803	)		—
Net income applicable to common stockholders		34,878			30,948			20,303			4,796			2,160			7,619			1,886
Add/(Deduct):
Depreciation and amortization of real estate assets		111,848			106,982			29,458			27,699			27,883			26,808			26,557
(Gains) on disposition of depreciable properties		(4,114	)		(7,692	)		(888	)		(874	)		(1,082	)		(1,270	)		(1,934	)
Minority interest from the Operating Partnership in income/(loss) from operations		1,621			(475	)		929			130			118			444			69
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		11,191			10,989			3,048			2,790			2,678			2,675			2,942
Discontinued operations:
Depreciation and amortization of real estate assets		3,386			16,841			460			817			1,003			1,106			1,957
(Gains) on disposition of depreciable properties		(15,082	)		(34,128	)		(10,037	)		(2,838	)		(313	)		(1,894	)		(5,871	)
Minority interest from the Operating Partnership in income from discontinued operations		1,557			3,756			867			318			92			280			83
Funds from operations	$	145,285		$	127,221		$	44,140		$	32,838		$	32,539		$	35,768		$	25,689
Funds from operations per share - diluted
Net income applicable to common shares	$	0.62		$	0.58		$	0.35		$	0.09		$	0.04		$	0.14		$	0.03
Add/(Deduct):
Depreciation and amortization of real estate assets		1.82			1.77			0.47			0.45			0.46			0.44			0.44
(Gains) on disposition of depreciable properties		(0.06	)		(0.13	)		(0.01	)		(0.01	)		(0.02	)		(0.02	)		(0.03	)
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		0.18			0.18			0.05			0.04			0.05			0.04			0.05
Discontinued operations:
Depreciation and amortization of real estate assets		0.06			0.28			0.01			0.01			0.02			0.02			0.03
(Gains) on disposition of depreciable properties		(0.25	)		(0.57	)		(0.16	)		(0.05	)		(0.01	)		(0.03	)		(0.09	)
Funds from operations	$	2.37		$	2.11		$	0.71		$	0.53		$	0.54		$	0.59		$	0.43
Weighted average shares outstanding - diluted		61,362			60,301			62,365			61,457			60,387			60,588			60,125
Additional information: 1/
Funds from operations, excluding certain items 2/	$	150,906		$	145,805		$	44,167		$	36,162		$	33,006		$	37,571		$	33,869
Funds from operations per share, excluding certain items 2/	$	2.46		$	2.42		$	0.71		$	0.59		$	0.55		$	0.62		$	0.56
Straight line rental income	$	(8,592	)
Amortization of lease incentives		828
Depreciation of non-real estate assets		2,389
Amortization of stock-based compensation		3,730
Amortization of deferred financing costs		2,375
Amortization of accumulated other comprehensive loss		697
Harborview non-cash FMV charge		496
Non-incremental revenue generating capital expenditures paid:
Building improvements		(17,782	)
2nd generation tenant improvements		(36,565	)
2nd generation lease commissions		(16,488	)
Common dividends and unit distributions paid		(101,783	)

1/ Increase or (decrease) to cash flows.

2/ Excludes impairments on depreciable assets, losses on debt extinguishments and preferred stock redemption charges.

Highwoods Properties, Inc. Page 2 12/31/06

Consolidated Balance Sheets

Dollars in thousands

	12/31/06			12/31/05
Assets:
Real estate and related assets, at cost:
Land	$	345,548		$	341,094
Buildings and tenant improvements		2,573,032			2,499,419
Development in process		101,899			28,727
Land held for development		112,760			142,717
Furniture, fixtures and equipment		23,695			22,467
		3,156,934			3,034,424
Less-accumulated depreciation		(608,612	)		(555,506	)
Net real estate assets		2,548,322			2,478,918
Real estate and other assets, net, held for sale		34,166			177,235
Cash and cash equivalents		16,690			1,212
Restricted cash		2,027			16,223
Accounts receivable, net		23,347			24,201
Notes receivable, net		7,871			9,232
Accrued straight-line rents receivable, net		68,364			60,349
Investment in unconsolidated affiliates		60,359			69,247
Deferred financing and leasing costs, net		66,352			59,059
Prepaid expenses and other		17,355			13,302
Total Assets	$	2,844,853		$	2,908,978
Liabilities, Minority Interest and Stockholders’ Equity:
Mortgages and notes payable	$	1,465,129		$	1,471,616
Accounts payable, accrued expenses and other liabilities		156,737			127,455
Financing obligations		35,530			34,154
Total Liabilities		1,657,396			1,633,225
Minority interest		79,726			94,134
Stockholders’ Equity:
Preferred stock		197,445			247,445
Common stock		562			540
Additional paid-in capital		1,449,337			1,419,683
Distributions in excess of net earnings		(538,098	)		(479,901	)
Accumulated other comprehensive loss		(1,515	)		(2,212	)
Deferred compensation		—			(3,936	)
Total Stockholders’ Equity		1,107,731			1,181,619
Total Liabilities, Minority Interest and Stockholders’ Equity	$	2,844,853		$	2,908,978

Highwoods Properties, Inc. Page 3 12/31/06

Estimated Net Asset Value Ranges

Dollars in thousands, except per share amounts

The information on this Page is provided to assist in the calculation of Net Asset Value using a range of Capitalization rates and Projected Net Operating Income among other Factors. It is not intended to be an asset by asset valuation.

NOI Cap Rates:
Office		6.50	%		6.75	%		7.00	%
Retail		5.25	%		5.50	%		5.75	%
Industrial/Other		6.75	%		7.00	%		7.25	%
Weighted average		6.36	%		6.61	%		6.86	%
Wholly-Owned Properties Projected Net Operating Income 1/
Office	$	209,693		$	209,693		$	209,693
Retail		27,764			27,764			27,764
Industrial/Other		22,038			22,038			22,038
Total Net Operating Income	$	259,495		$	259,495		$	259,495
Wholly-Owned Properties Capitalized Value
Office	$	3,226,046		$	3,106,563		$	2,995,614
Retail		528,838			504,800			482,852
Industrial/Other		326,489			314,829			303,972
Total capitalized value - wholly owned properties	$	4,081,373		$	3,926,192		$	3,782,439
Highwoods’ Share of Joint Ventures (Includes Consolidated JVs)
Net operating income - projected	$	34,608		$	34,608		$	34,608
Capitalization rates		6.50	%		6.75	%		7.00	%
Capitalized value - joint venture interests	$	532,431		$	512,711		$	494,400
Total In-Service Property Value	$	4,613,804		$	4,438,903		$	4,276,839
Value of Other income
Development, leasing and management fees	$	6,061		$	6,061		$	6,061
Capitalization rate		20	%		20	%		20	%
Value of other income	$	30,306		$	30,306		$	30,306
Add Other assets:
Development pipeline investment at 135% of cost 2/	$	204,555		$	204,555		$	204,555
Low occupancy assets at NBV 3/		80,478			80,478			80,478
Property held for sale at net sales price		68,801			68,801			68,801
Land held for development at market value		139,009			139,009			139,009
Cash and cash equivalents		14,388			14,388			14,388
Restricted cash		1,764			1,764			1,764
Accounts receivable, net		23,200			23,200			23,200
Notes receivable and prepaid expenses		25,035			25,035			25,035
Other assets total	$	557,229		$	557,229		$	557,229
Gross Value of Assets	$	5,201,339		$	5,026,438		$	4,864,374
Deductions:
Total liabilities	$	157,709		$	157,709		$	157,709
Mortgages and notes payable, at estimated fair value		1,445,554			1,445,554			1,445,554
Preferred stock, at redemption value		197,445			197,445			197,445
Highwoods’ share of joint ventures liabilities		281,565			281,565			281,565
Estimated Net Asset Value	$	3,119,065		$	2,944,164		$	2,782,100
Estimated diluted common shares and operating units for 2007		62,600			62,600			62,600
Estimated Net Asset Value Per Share	$	49.83		$	47.03		$	44.44

1/ NOI excludes straight line income, lease termination fee income, NOI related to completed not stabilized developments, and NOI on certain low occupancy assets.

2/ Represents average increase in value based on projected development yields on cost compared to projected market valuations.

3/ Consolidated Properties NOI is adjusted to eliminate the net NOI for certain low occupancy properties for which a NOI capitalization approach is not appropriate.For those low occupancy assets, their net book value (after depreciation) is added as an estimate of their current valuation.

Highwoods Properties, Inc. Page 4 12/31/06

Components of Discontinued Operations

Dollars in thousands

	Year Ended						Three Months Ended
	12/31/06			12/31/05			12/31/06			09/30/06			06/30/06			03/31/06			12/31/05
Rental and other revenues	$	12,976		$	54,613		$	2,106		$	3,521		$	2,967		$	4,382		$	8,605
Operating expenses:
Rental property and other expenses		5,254			23,158			952			1,515			1,163			1,624			3,846
Depreciation and amortization		3,386			16,841			460			817			1,003			1,106			1,957
General and administrative		87			859			12			75			—			—			10
Total operating expenses		8,727			40,858			1,424			2,407			2,166			2,730			5,813
Interest expense		560			1,218			78			277			102			103			146
Other income		65			195			12			14			21			18			55
Income before minority interest and gains, net of impairments, on sales of discontinued operations		3,754			12,732			616			851			720			1,567			2,701
Minority interest in discontinued operations		(333	)		(1,228	)		(50	)		(75	)		(64	)		(144	)		(250	)
Income from discontinued operations before net gains on sales and impairment of discontinued operations		3,421			11,504			566			776			656			1,423			2,451
Net gains on sale and (impairment) of discontinued operations		15,082			25,754			10,037			2,838			313			1,894			(1,806	)
Minority interest in discontinued operations		(1,224	)		(2,528	)		(817	)		(243	)		(28	)		(136	)		167
Gains on sales and impairment of discontinued operations, net of minority interest		13,858			23,226			9,220			2,595			285			1,758			(1,639	)
Total discontinued operations	$	17,279		$	34,730		$	9,786		$	3,371		$	941		$	3,181		$	812

Highwoods Properties, Inc. Page 5 12/31/06

Capitalization

Dollars, shares, and units in thousands

	12/31/06		09/30/06		06/30/06		03/31/06		12/31/05
Long-Term Debt (see pages 7 & 8):	$	1,465,129	$	1,461,105	$	1,466,839	$	1,450,251	$	1,471,616
Financing Obligations:	$	35,530	$	36,098	$	36,002	$	34,282	$	34,154
Preferred Stock (at liquidation value):
Series A 8 5/8% Perpetual Preferred Stock	$	104,945	$	104,945	$	104,945	$	104,945	$	104,945
Series B 8% Perpetual Preferred Stock		92,500		92,500		92,500		92,500		142,500
Total preferred stock	$	197,445	$	197,445	$	197,445	$	197,445	$	247,445
Common Shares and Units Outstanding:
Common stock outstanding		56,211		55,635		54,131		54,142		54,029
Minority interest partnership units		4,733		5,014		5,234		5,401		5,450
Total common shares and units outstanding		60,944		60,649		59,365		59,543		59,479
Stock price at period end	$	40.76	$	37.21	$	36.18	$	33.73	$	28.45
Market value of common equity	$	2,484,077	$	2,256,749	$	2,147,826	$	2,008,385	$	1,692,178
Total market capitalization with debt and obligations	$	4,182,181	$	3,951,397	$	3,848,112	$	3,690,363	$	3,445,393

See pages 29 to 35 for information regarding Highwoods’ Joint Ventures.

Highwoods Properties, Inc. Page 6 12/31/06

Long-Term Debt Summary

Dollars in thousands

	12/31/06			09/30/06			06/30/06			03/31/06			12/31/05
Balances Outstanding:
Secured:
Conventional fixed rate 1/	$	730,732		$	691,662		$	695,832		$	699,949		$	667,138
Variable rate debt		10,897			12,943			13,007			12,302			53,978
Secured total		741,629			704,605			708,839			712,251			721,116
Unsecured:
Fixed rate bonds and notes		350,000			460,000			460,000			460,000			460,000
Variable rate debt		—			—			—			100,000			100,000
Credit facility		373,500			296,500			298,000			178,000			190,500
Unsecured total		723,500			756,500			758,000			738,000			750,500
Total	$	1,465,129		$	1,461,105		$	1,466,839		$	1,450,251		$	1,471,616
End of Period Weighted Average Interest Rates:
Secured:
Conventional fixed rate		6.78	%		6.92	%		6.93	%		6.93	%		7.01	%
Variable rate debt		6.55	%		5.93	%		5.85	%		5.43	%		5.51	%
Secured total		6.78	%		6.91	%		6.91	%		6.90	%		6.89	%
Unsecured:
Fixed rate bonds		7.48	%		7.37	%		7.37	%		7.37	%		7.37	%
Variable rate debt		—			—			—			5.80	%		5.37	%
Credit facility		6.14	%		6.22	%		5.96	%		5.81	%		5.42	%
Unsecured total		6.79	%		6.92	%		6.81	%		6.78	%		6.61	%
Average		6.78	%		6.91	%		6.86	%		6.84	%		6.75	%
Maturity Schedule:

	Future Maturities of Debt				Total Debt 2/		Average Interest Rate
Year	Secured Debt 2/		Unsecured Debt
2007	$	77,291	$	—	$	77,291	8.00	%
2008		—		100,000		100,000	7.13	%
2009 3/		140,608		423,500		564,108	6.73	%
2010		—		—		—	6.90	%
2011		—		—		—	7.79	%
2012		212,800		—		212,800	6.94	%
2013		272,813		—		272,813	5.90	%
2014		38,117		—		38,117	5.79	%
2015		—		—		—	5.79	%
2016		—		—		—	—
Thereafter		—		200,000		200,000	7.50	%
Total maturities	$	741,629	$	723,500	$	1,465,129	6.78	%
Weighted average maturity = 4.37 years

1/ Includes a $22.8 million loan related to a consolidated 20% owned joint venture (Harborview) and $38.1 million in loans at December 31, 2006 related to a consolidated 50% joint venture (Markel).

2/ All periods exclude annual principal amortization.

3/ The $564.1 million of unsecured debt maturities includes $373.5 million related to the credit facility which matures in 2009 (excludes one-year extension option).

Highwoods Properties, Inc. Page 7 12/31/06

Long-Term Debt Detail

Dollars in thousands
Secured Loans	Rate		Maturity Date	Loan Balance 12/31/06		Undepreciated Book Value of Assets Secured
Lender
Northwestern Mutual	6.03	%	Mar-13	$	137,810	$	168,235
Northwestern Mutual	7.05	%	Jan-12		190,000		280,498
Massachusetts Mutual Life Ins. Co. 1/	5.68	%	Dec-13		123,271		201,022
Northwestern Mutual 2/	8.17	%	Feb-07		61,426		137,091
Monumental Life Ins. Co. 3/	7.77	%	Nov-09		82,622		199,290
Monumental Life Ins. Co. 3/	7.87	%	Nov-09		52,126		—
Metropolitan Life Ins. Co. 4/	6.06	%	Oct-12		22,800		38,953
Principal Life Insurance Company 5/	5.79	%	Jan-14		11,685		14,888
Principal Life Insurance Company 5/	5.79	%	Jan-14		11,685		18,781
PNC/Regions/Wachovia 6/	6.55	%	Oct-07		10,897		17,570
Massachusetts Mutual Life Ins. Co. 1/	6.48	%	Dec-13		10,858		—
Principal Life Insurance Company 5/	5.74	%	Jan-14		9,216		14,285
Principal Life Insurance Company 5/	5.89	%	Jan-14		5,531		7,514
PFL Life Ins. Co. 2/	8.07	%	Jun-07		4,968		23,676
Lutheran Brotherhood	6.75	%	Apr-09		3,806		8,016
Security Life of Denver	8.85	%	Aug-09		2,054		9,383
American United Life	9.00	%	Jun-13		874		3,321
	6.78	%			741,629	$	1,142,523
Unsecured Bonds
Bonds	7.13	%	Feb-08		100,000
Bonds	8.13	%	Jan-09		50,000
Bonds	7.50	%	Apr-18		200,000
	7.48	%			350,000
Unsecured Loans
Credit facility 6/	6.14	%	May-09		373,500
Total Debt	6.78	%		$	1,465,129

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

2/ This loan was paid off on 2/1/2007.

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

4/ Loan relates to a consolidated 20% owned joint venture (Harborview).

5/ Loans relate to a consolidated 50% owned joint venture (Markel).

6/ Floating rate loan based on one month libor. Maturity date excludes one-year extension option.

Highwoods Properties, Inc. Page 8 12/31/06

Portfolio Summary - Wholly-Owned Properties Only 1/

(Rentable Square Feet)
	12/31/06		09/30/06		06/30/06		03/31/06		12/31/05
Office Industrial & Retail
In-Service:
Office 2/	19,244,000		19,507,000		19,704,000		19,691,000		21,412,000
Industrial	6,281,000		6,605,000		6,706,000		6,706,000		6,977,000
Retail 3/	1,327,000		1,431,000		1,408,000		1,408,000		1,416,000
Total 4/	26,852,000		27,543,000		27,818,000		27,805,000		29,805,000
Development Completed - Not Stabilized:
Office 2/	504,000		311,000		153,000		—		—
Industrial	418,000		—		—		—		—
Retail	—		—		—		9,600		9,600
Total	922,000		311,000		153,000		9,600		9,600
Development - In Process:
Office 2/	1,357,000		1,405,000		1,268,000		1,026,000		533,000
Industrial	383,000		681,000		418,000		418,000		—
Retail	—		—		23,000		23,000		—
Total	1,740,000		2,086,000		1,709,000		1,467,000		533,000
Total:
Office 2/	21,105,000		21,223,000		21,125,000		20,717,000		21,945,000
Industrial	7,082,000		7,286,000		7,124,000		7,124,000		6,977,000
Retail 3/	1,327,000		1,431,000		1,431,000		1,440,600		1,425,600
Total 4/	29,514,000		29,940,000		29,680,000		29,281,600		30,347,600
Same Property
Office 2/	18,798,000		18,798,000		18,798,000		18,798,000		18,798,000
Industrial	5,928,000		5,928,000		5,928,000		5,928,000		5,928,000
Retail	1,304,000		1,304,000		1,304,000		1,304,000		1,304,000
Total	26,030,000		26,030,000		26,030,000		26,030,000		26,030,000
Percent Leased/Pre-Leased:
In-Service:
Office	89.0	%	88.1	%	87.1	%	87.1	%	87.5	%
Industrial	91.7	%	91.8	%	89.5	%	88.0	%	92.4	%
Retail	95.7	%	96.2	%	95.3	%	95.7	%	97.5	%
Total	90.0	%	89.4	%	88.1	%	87.7	%	89.1	%
Development Completed - Not Stabilized:
Office	62.8	%	52.3	%	17.0	%	—		—
Industrial	44.0	%	—		—		—		—
Retail	—		—		—		88.0	%	87.0	%
Total	54.3	%	52.3	%	17.0	%	88.0	%	87.0	%
Development - In Process:
Office	55.3	%	58.4	%	53.7	%	57.1	%	37.2	%
Industrial	0.0	%	27.0	%	44.0	%	43.8	%	—
Retail	—		—		100.0	%	100.0	%	—
Total	43.1	%	48.2	%	51.9	%	54.0	%	37.2	%
Same Property
Office	88.7	%	87.9	%	87.0	%	87.0	%	88.5	%
Industrial	91.2	%	91.0	%	89.3	%	87.5	%	93.2	%
Retail	95.6	%	96.1	%	95.0	%	95.2	%	97.9	%
Total	89.6	%	89.0	%	87.9	%	87.5	%	90.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

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.

4/ Excludes minor for rent apartment buildings.

Highwoods Properties, Inc. Page 9 12/31/06

Portfolio Summary

(Continued)

As of December 31, 2006
Summary by Location, Wholly-Owned Properties Only 1/:
	Rentable Square Feet		Occupancy		Percentage of Annualized Cash Revenue 2/
Market					Office		Industrial		Retail		Total
Raleigh 3/	3,810,000		86.1	%	14.6	%	—		—		14.6	%
Atlanta	5,515,000		94.0	%	10.3	%	4.0	%	—		14.3	%
Kansas City	2,225,000	4/	90.1	%	4.3	%	—		9.7	%	14.0	%
Tampa	2,332,000		97.7	%	13.2	%	—		—		13.2	%
Nashville	2,876,000		91.6	%	13.0	%	—		—		13.0	%
Piedmont Triad 5/	5,195,000		88.7	%	7.0	%	3.7	%	—		10.7	%
Richmond	2,024,000		89.8	%	8.9	%	—		—		8.9	%
Memphis	1,197,000		91.8	%	5.6	%	—		—		5.6	%
Greenville	1,108,000		75.3	%	3.4	%	0.1	%	—		3.5	%
Orlando	218,000		100.0	%	1.2	%	—		—		1.2	%
Columbia	252,000		48.7	%	0.5	%	—		—		0.5	%
Other	100,000		73.6	%	0.5	%	—		—		0.5	%
Total	26,852,000		90.0	%	82.5	%	7.8	%	9.7	%	100.0	%
Summary by Location, Including Joint Venture Properties:
	Rentable Square Feet		Occupancy		Percentage of Annualized Cash Revenue 2/ 6/
Market					Office		Industrial		Retail		Multi-Family		Total
Atlanta	6,350,000		94.1	%	10.5	%	3.5	%	—		—		14.0	%
Kansas City	2,946,000	4/	88.1	%	4.8	%	—		8.5	%	—		13.3	%
Raleigh	4,265,000		87.5	%	13.2	%	—		—		—		13.2	%
Tampa	2,537,000		97.9	%	12.0	%	—		—		—		12.0	%
Nashville	2,876,000		91.6	%	11.4	%	—		—		—		11.4	%
Piedmont Triad	5,559,000		89.4	%	6.6	%	3.3	%	—		—		9.9	%
Richmond	2,437,000		91.6	%	8.4	%	—		—		—		8.4	%
Memphis	1,197,000		91.8	%	5.0	%	—		—		—		5.0	%
Des Moines	2,475,000		93.5	%	3.4	%	0.5	%	0.1	%	0.4	%	4.4	%
Orlando	1,904,000		95.2	%	4.3	%	—		—		—		4.3	%
Greenville	1,108,000		75.4	%	3.0	%	0.1	%	—		—		3.1	%
Other	210,000		87.4	%	0.5	%	—		—		—		0.5	%
Columbia	252,000		48.7	%	0.4	%	—		—		—		0.4	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%
Total	34,264,000		90.9	%	83.6	%	7.4	%	8.6	%	0.4	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

2/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

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

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

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

6/ Includes Highwoods’ share of Joint Venture Annualized Rental Revenue, see page 33.

Highwoods Properties, Inc. Page 10 12/31/06

Portfolio Summary - Wholly-Owned Properties Only

(Continued)

As of December 31, 2006
	Office Properties 1/					Industrial
Market	Rentable Square Feet	Occupancy		Percentage of Office Annualized Cash Revenue 2/		Rentable Square Feet	Occupancy		Percentage of Industrial Annualized Cash Revenue 2/
Raleigh	3,810,000	86.1	%	17.8	%	—	—		—
Tampa	2,332,000	97.7	%	16.2	%	—	—		—
Nashville	2,876,000	91.6	%	15.7	%	—	—		—
Atlanta	2,460,000	90.4	%	12.5	%	3,055,000	96.9	%	51.5	%
Richmond	2,024,000	89.8	%	10.7	%	—	—		—
Piedmont Triad	2,076,000	88.3	%	8.4	%	3,119,000	88.9	%	47.4	%
Memphis	1,197,000	91.8	%	6.8	%	—	—		—
Kansas City	894,000	81.9	%	5.2	%	4,000	46.5	%	0.1	%
Greenville	1,005,000	80.5	%	4.1	%	103,000	25.4	%	1.0	%
Orlando	218,000	100.0	%	1.4	%	—	—		—
Columbia	252,000	48.7	%	0.6	%	—	—		—
Other	100,000	73.6	%	0.6	%	—	—		—
	19,244,000	89.0	%	100.0	%	6,281,000	91.7	%	100.0	%

	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Cash Revenue 2/
Kansas City 3/	1,327,000	95.7	%	100.0	%
	1,327,000	95.7	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

2/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

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

Highwoods Properties, Inc. Page 11 12/31/06

Occupancy Trends - Office, Industrial and Retail Properties 1/

Market	Measurement	12/31/06		09/30/06		06/30/06		03/31/06		12/31/05
Atlanta	Rentable Square Feet	5,515,000		5,584,000		5,584,000		5,584,000		6,806,000
	Occupancy	94.0	%	92.4	%	91.8	%	91.1	%	87.4	%
	Current Properties 2/	94.0	%	92.7	%	92.1	%	91.3	%	91.1	%
Columbia	Rentable Square Feet	252,000		252,000		252,000		252,000		426,000
	Occupancy	48.7	%	49.4	%	49.8	%	41.4	%	58.9	%
	Current Properties 2/	48.7	%	49.4	%	49.8	%	41.4	%	38.2	%
Greenville	Rentable Square Feet	1,109,000		1,109,000		1,110,000		1,106,000		1,105,000
	Occupancy	75.3	%	75.0	%	68.8	%	73.4	%	73.0	%
	Current Properties 2/	75.3	%	75.0	%	68.9	%	73.2	%	72.8	%
Kansas City 3/	Rentable Square Feet	2,224,000		2,329,000		2,306,000		2,306,000		2,314,000
	Occupancy	90.1	%	90.7	%	89.9	%	90.4	%	92.2	%
	Current Properties 2/	90.0	%	90.3	%	89.5	%	89.8	%	92.2	%
Memphis	Rentable Square Feet	1,197,000		1,197,000		1,197,000		1,197,000		1,197,000
	Occupancy	91.8	%	91.9	%	89.7	%	90.0	%	88.8	%
	Current Properties 2/	91.8	%	91.9	%	89.7	%	89.9	%	88.8	%
Nashville	Rentable Square Feet	2,876,000		2,875,000		2,874,000		2,874,000		2,874,000
	Occupancy	91.6	%	92.8	%	90.8	%	90.6	%	94.0	%
	Current Properties 2/	91.6	%	92.8	%	90.8	%	90.6	%	93.9	%
Orlando	Rentable Square Feet	218,000		218,000		218,000		218,000		218,000
	Occupancy	100.0	%	100.0	%	100.0	%	99.5	%	100.0	%
	Current Properties 2/	100.0	%	100.0	%	100.0	%	99.5	%	100.0	%
Piedmont Triad	Rentable Square Feet	5,195,000		5,589,000		5,598,000		5,589,000		5,589,000
	Occupancy	88.7	%	89.9	%	88.6	%	86.7	%	93.1	%
	Current Properties 2/	88.6	%	89.5	%	88.6	%	86.8	%	93.7	%
Raleigh	Rentable Square Feet	3,810,000		3,812,000		4,101,000		4,102,000		4,232,000
	Occupancy	86.1	%	82.6	%	83.0	%	82.7	%	87.5	%
	Current Properties 2/	86.1	%	82.6	%	82.7	%	82.6	%	87.6	%
Richmond	Rentable Square Feet	2,024,000		1,954,000		1,954,000		1,954,000		1,955,000
	Occupancy	89.8	%	88.6	%	88.0	%	91.3	%	94.4	%
	Current Properties 2/	89.5	%	88.5	%	88.0	%	91.2	%	94.4	%
Tampa	Rentable Square Feet	2,332,000		2,524,000		2,524,000		2,523,000		2,989,000
	Occupancy	97.7	%	96.0	%	93.6	%	91.9	%	87.6	%
	Current Properties 2/	97.7	%	96.8	%	95.5	%	93.3	%	90.8	%
Total 4/	Rentable Square Feet	26,752,000		27,443,000		27,718,000		27,705,000		29,705,000
	Occupancy	90.0	%	89.4	%	88.1	%	87.7	%	89.1	%
	Current Properties 2/	89.9	%	89.3	%	88.3	%	87.9	%	90.3	%

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

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

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

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

Highwoods Properties, Inc. Page 12 12/31/06

Leasing Statistics

Office Portfolio 1/

	Three Months Ended
	12/31/06 2/			9/30/06 3/				6/30/06 4/			3/31/06 5/			12/31/05 6/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		137			140				141			188			171			155
Rentable square footage leased		868,941			915,289				950,460			944,222			1,169,148			969,612
Square footage of Renewal Deals		601,796			681,640				486,998			528,275			890,582			637,858
Renewed square footage (% of total)		69.3	%		74.5	%			51.2	%		55.9	%		76.2	%		65.8	%
New Leases square footage (% of total)		30.7	%		25.5	%			48.8	%		44.1	%		23.8	%		34.2	%
Weighted average per rentable square foot over the lease term:
Base rent	$	19.72		$	19.23			$	17.29		$	18.06		$	17.37		$	18.33
Tenant improvements		(1.77	)		(1.56	)			(1.71	)		(1.52	)		(1.67	)		(1.65	)
Leasing commissions 7/		(0.56	)		(0.46	)			(0.48	)		(0.62	)		(0.66	)		(0.56	)
Rent concessions		(0.22	)		(0.11	)	��		(0.22	)		(0.31	)		(0.27	)		(0.23	)
Effective rent		17.17			17.10				14.88			15.61			14.77			15.89
Expense stop		(5.45	)		(5.04	)			(5.53	)		(5.57	)		(4.79	)		(5.28	)
Equivalent effective net rent	$	11.72		$	12.06			$	9.35		$	10.04		$	9.98		$	10.61
Weighted average term in years		5.2			4.5				4.5			4.3			5.0			4.7
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	9,392,949		$	7,994,295			$	8,416,490		$	7,270,758		$	10,506,779		$	8,716,254
Rentable square feet		868,941			915,289				950,460			944,222			1,169,148			969,612
Per rentable square foot	$	10.81		$	8.73			$	8.86		$	7.70		$	8.99		$	8.99
Leasing Commissions:
Total dollars committed under signed leases 7/	$	2,256,508		$	2,144,582			$	2,198,017		$	2,363,857		$	3,551,312		$	2,502,855
Rentable square feet		868,941			915,289				950,460			944,222			1,169,148			969,612
Per rentable square foot	$	2.60		$	2.34			$	2.31		$	2.50		$	3.04		$	2.58
Total:
Total dollars committed under signed leases	$	11,649,457		$	10,138,877			$	10,614,507		$	9,634,615		$	14,058,091		$	11,219,109
Rentable square feet		868,941			915,289				950,460			944,222			1,169,148			969,612
Per rentable square foot	$	13.41		$	11.08			$	11.17		$	10.20		$	12.02		$	11.57

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

2/ Includes 17K square feet of leases that start in 2009 or later.

3/ Includes 179K square feet of leases that start in 2008 or later.

4/ Includes 74K square feet of leases that start in 2008 or later.

5/ Includes 82K square feet of leases that start in 2008 or later.

6/ Includes 171K square feet of leases that start in 2008 or later.

7/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. Page 13 12/31/06

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	12/31/06			9/30/06			6/30/06 1/			3/31/06 2/			12/31/05 3/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		17			23			36			22			29			25
Rentable square footage leased		539,939			485,936			974,807			300,496			532,917			566,819
Square footage of Renewal Deals		315,423			237,061			543,537			165,621			274,174			307,163
Renewed square footage (% of total)		58.4	%		48.8	%		55.8	%		55.1	%		51.4	%		54.2	%
New Leases square footage (% of total)		41.6	%		51.2	%		44.2	%		44.9	%		48.6	%		45.8	%
Weighted average per rentable square foot over the lease term:
Base rent	$	3.81		$	4.13		$	3.44		$	4.46		$	4.14		$	4.00
Tenant improvements		(0.45	)		(0.31	)		(0.17	)		(0.79	)		(0.32	)		(0.41	)
Leasing commissions 4/		(0.14	)		(0.09	)		(0.07	)		(0.15	)		(0.14	)		(0.12	)
Rent concessions		(0.05	)		(0.11	)		(0.01	)		(0.13	)		(0.09	)		(0.08	)
Effective rent		3.17			3.62			3.19			3.39			3.59			3.39
Expense stop		(0.08	)		(0.17	)		(0.10	)		(0.17	)		(0.15	)		(0.13	)
Equivalent effective net rent	$	3.09		$	3.45		$	3.09		$	3.22		$	3.44		$	3.26
Weighted average term in years		5.2			3.8			2.9			3.5			3.9			3.9
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	1,323,790		$	732,593		$	895,575		$	1,032,151		$	796,212		$	956,064
Rentable square feet		539,939			485,936			974,807			300,496			532,917			566,819
Per rentable square foot	$	2.45		$	1.51		$	0.92		$	3.43		$	1.49		$	1.69
Leasing Commissions:
Total dollars committed under signed leases 4/	$	433,927		$	109,087		$	144,376		$	191,615		$	355,767		$	246,954
Rentable square feet		539,939			485,936			974,807			300,496			532,917			566,819
Per rentable square foot	$	0.80		$	0.22		$	0.15		$	0.64		$	0.67		$	0.44
Total:
Total dollars committed under signed leases	$	1,757,717		$	841,680		$	1,039,951		$	1,223,766		$	1,151,979		$	1,203,019
Rentable square feet		539,939			485,936			974,807			300,496			532,917			566,819
Per rentable square foot	$	3.26		$	1.73		$	1.07		$	4.07		$	2.16		$	2.12

1/ Includes 14K square feet of leases that start in 2008 or later.

2/ Includes 10K square feet of leases that start in 2008 or later.

3/ Includes 12K square feet of leases that start in 2008 or later.

4/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. Page 14 12/31/06

Leasing Statistics

Retail Portfolio

	Three Months Ended
	12/31/06			09/30/06			06/30/06			3/31/06			12/31/05			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		8			8			5			12			9			8
Rentable square footage leased		23,748			26,472			13,573			49,479			19,320			26,518
Square footage of Renewal Deals		9,855			17,179			3,919			36,129			2,729			13,962
Renewed square footage (% of total)		41.5	%		64.9	%		28.9	%		73.0	%		14.1	%		52.7	%
New Leases square footage (% of total)		58.5	%		35.1	%		71.1	%		27.0	%		85.9	%		47.3	%
Weighted average per rentable square foot over the lease term:
Base rent	$	18.27		$	24.75		$	30.32		$	19.22		$	23.03		$	23.12
Tenant improvements		(0.08	)		(1.40	)		(4.28	)		(0.41	)		(1.33	)		(1.50	)
Leasing commissions 1/		(0.41	)		(0.61	)		(1.04	)		(0.28	)		(0.60	)		(0.59	)
Rent concessions		(0.20	)		0.00			0.00			(0.06	)		(0.35	)		(0.12	)
Effective rent		17.58			22.74			25.00			18.47			20.75			20.91
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00
Equivalent effective net rent	$	17.58		$	22.74		$	25.00		$	18.47		$	20.75		$	20.91
Weighted average term in years		8.6			5.2			10.8			11.1			6.1			8.3
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	15,000		$	288,272		$	838,555		$	186,372		$	251,252		$	315,890
Rentable square feet		23,748			26,472			13,573			49,479			19,320			26,518
Per rentable square foot	$	0.63		$	10.89		$	61.78		$	3.77		$	13.00		$	11.91
Leasing Commissions:
Total dollars committed under signed leases 1/	$	1,981		$	46,048		$	63,681		$	42,804		$	13,721		$	33,647
Rentable square feet		23,748			26,472			13,573			49,479			19,320			26,518
Per rentable square foot	$	0.08		$	1.74		$	4.69		$	0.87		$	0.71		$	1.27
Total:
Total dollars committed under signed leases	$	16,981		$	334,320		$	902,236		$	229,176		$	264,973		$	349,537
Rentable square feet		23,748			26,472			13,573			49,479			19,320			26,518
Per rentable square foot	$	0.72		$	12.63		$	66.47		$	4.63		$	13.71		$	13.18

1/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. Page 15 12/31/06

Leasing Statistics by Market

For the Three Months ended December 31, 2006

Office Portfolio 1/

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Raleigh	226,296	6.2	$	19.93	$	10.40	$	3.50
Atlanta	214,566	5.8		19.20		16.85		2.07
Nashville	138,979	5.0		21.77		8.51		3.34
Piedmont Triad	97,288	3.3		16.14		5.15		0.22
Richmond	65,719	5.3		16.46		5.86		1.32
Kansas City	58,427	4.0		22.37		8.61		3.29
Greenville	27,295	5.1		17.99		23.80		5.12
Tampa	21,578	4.0		20.39		5.93		1.07
Memphis	18,793	2.5		21.24		3.85		1.14
	868,941	5.2	$	19.50	$	10.81	$	2.60
Industrial Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Piedmont Triad	360,190	5.4	$	3.45	$	1.63	$	0.74
Atlanta	179,749	4.6		4.37		4.09		0.93
	539,939	5.2	$	3.76	$	2.45	$	0.80
Retail Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF
Kansas City	23,748	8.6	$	18.07	$	0.63	$	0.08
	23,748	8.6	$	18.07	$	0.63	$	0.08

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

2/ Lease commisions per square foot excludes capitalized internal leasing costs.

Highwoods Properties, Inc. Page 16 12/31/06

Rental Rate Comparisons by Market

For the Three Months ended December 31, 2006

Office Portfolio 1/

Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Raleigh	226,296	$	19.93	$	18.98	5.0	%
Atlanta	214,566		19.20		20.63	-6.9	%
Nashville	138,979		21.77		19.58	11.2	%
Piedmont Triad	97,288		16.14		15.97	1.0	%
Richmond	65,719		16.46		16.30	1.0	%
Kansas City	58,427		22.37		20.61	8.5	%
Greenville	27,295		17.99		17.11	5.1	%
Tampa	21,578		20.39		16.78	21.5	%
Memphis	18,793		21.24		18.45	15.1	%
GAAP Rent Growth	868,941	$	19.50	$	18.95	2.9	%
Cash Rent Growth	868,941	$	19.09	$	19.73	-3.3	%
Industrial Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Piedmont Triad	360,190	$	3.45	$	3.52	-2.0	%
Atlanta	179,749		4.37		4.79	-8.8	%
GAAP Rent Growth	539,939	$	3.76	$	3.94	-4.6	%
Cash Rent Growth	539,939	$	3.61	$	4.07	-11.4	%
Retail Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Kansas City	23,748	$	18.07	$	15.51	16.5	%
GAAP Rent Growth	23,748	$	18.07	$	15.51	16.5	%
Cash Rent Growth	23,748	$	19.37	$	15.80	22.6	%

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

2/ Excludes percentage rent.

Highwoods Properties, Inc. Page 17 12/31/06

Lease Expirations

December 31, 2006

Dollars in thousands
Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Office: 2/
2007 /3	1,554,029	9.0	%	$	28,027	$	18.04	8.7	%
2008	2,145,074	12.4	%		39,793		18.55	12.4	%
2009	2,799,327	16.1	%		53,375		19.07	16.5	%
2010	2,323,591	13.4	%		46,889		20.18	14.6	%
2011	2,804,723	16.2	%		51,220		18.26	15.9	%
2012	1,731,147	10.0	%		30,337		17.52	9.4	%
2013	838,925	4.8	%		15,145		18.05	4.7	%
2014	550,008	3.2	%		10,668		19.40	3.3	%
2015	667,412	3.8	%		13,427		20.12	4.2	%
2016	729,111	4.2	%		13,882		19.04	4.3	%
2017 and thereafter	1,198,962	6.9	%		19,253		16.06	6.0	%
	17,342,309	100.0	%	$	322,016	$	18.57	100.0	%
Industrial:
2007 /4	1,011,155	17.0	%	$	5,807	$	5.74	19.1	%
2008	1,214,386	20.3	%		5,589		4.60	18.3	%
2009	961,855	16.2	%		5,226		5.43	17.1	%
2010	558,583	9.4	%		3,004		5.38	9.8	%
2011	639,024	10.8	%		3,123		4.89	10.2	%
2012	257,895	4.3	%		1,287		4.99	4.2	%
2013	166,289	2.8	%		1,032		6.21	3.4	%
2014	212,965	3.6	%		1,151		5.40	3.8	%
2015	169,882	2.9	%		695		4.09	2.3	%
2016	264,597	4.5	%		883		3.34	2.9	%
2017 and thereafter	486,150	8.2	%		2,724		5.60	8.9	%
	5,942,781	100.0	%	$	30,521	$	5.14	100.0	%

1/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

3/ Includes 68,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue.

4/ Includes 86,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

Note: 2007 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. Page 18 12/31/06

Lease Expirations

December 31, 2006

(Continued)

Dollars in thousands
Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Retail:
2007 2/	65,255	5.1	%	$	1,771	$	27.14	4.7	%
2008	126,550	10.0	%		3,658		28.91	9.7	%
2009	142,868	11.3	%		4,032		28.22	10.7	%
2010	98,944	7.8	%		3,438		34.75	9.1	%
2011	71,009	5.6	%		2,075		29.22	5.5	%
2012	143,793	11.3	%		4,322		30.06	11.5	%
2013	55,903	4.4	%		2,174		38.89	5.8	%
2014	86,274	6.8	%		1,673		19.39	4.4	%
2015	130,127	10.2	%		4,232		32.52	11.2	%
2016	67,224	5.3	%		2,639		39.26	7.0	%
2017 and thereafter	281,837	22.2	%		7,653		27.15	20.4	%
	1,269,784	100.0	%	$	37,667	$	29.66	100.0	%
Total:
2007 3/ 4/	2,630,439	10.7	%	$	35,605	$	13.54	9.1	%
2008	3,486,010	14.2	%		49,040		14.07	12.6	%
2009	3,904,050	16.0	%		62,633		16.04	16.0	%
2010	2,981,118	12.1	%		53,331		17.89	13.7	%
2011	3,514,756	14.3	%		56,418		16.05	14.4	%
2012	2,132,835	8.7	%		35,946		16.85	9.2	%
2013	1,061,117	4.3	%		18,351		17.29	4.7	%
2014	849,247	3.5	%		13,492		15.89	3.5	%
2015	967,421	3.9	%		18,354		18.97	4.7	%
2016	1,060,932	4.3	%		17,404		16.40	4.5	%
2017 and thereafter	1,966,949	8.0	%		29,630		15.06	7.6	%
	24,554,874	100.0	%	$	390,204	$	15.89	100.0	%

1/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/ Includes 3,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue.

3/ Includes 157,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

4/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

Note: 2007 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. Page 19 12/31/06

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands
		Three Months Ended
		03/31/07 2/			06/30/07			09/30/07			12/31/07			Total
Atlanta	RSF		69,849			62,965			165,123			20,498			318,435
	% of Total Office RSF		0.4	%		0.4	%		1.0	%		0.1	%		1.8	%
	Annualized Cash Revenue 3/	$	855		$	1,428		$	2,865		$	321		$	5,469
	% of Total Office Annl Cash Rev		0.3	%		0.4	%		0.9	%		0.1	%		1.7	%
Columbia	RSF		979			0			0			3,258			4,237
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue 3/	$	14		$	—		$	—		$	57		$	71
	% of Total Office Annl Cash Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Greenville	RSF		6,116			4,849			5,201			0			16,166
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue 3/	$	105		$	87		$	108		$	—		$	300
	% of Total Office Annl Cash Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%
Kansas City	RSF		51,845			9,773			20,813			16,189			98,620
	% of Total Office RSF		0.3	%		0.1	%		0.1	%		0.1	%		0.6	%
	Annualized Cash Revenue 3/	$	1,067		$	208		$	434		$	336		$	2,045
	% of Total Office Annl Cash Rev		0.3	%		0.1	%		0.1	%		0.1	%		0.6	%
Memphis	RSF		37,220			15,668			18,629			12,849			84,366
	% of Total Office RSF		0.2	%		0.1	%		0.1	%		0.1	%		0.5	%
	Annualized Cash Revenue 3/	$	1,063		$	320		$	374		$	262		$	2,019
	% of Total Office Annl Cash Rev		0.3	%		0.1	%		0.1	%		0.1	%		0.6	%
Nashville	RSF		49,075			105,782			74,496			12,077			241,430
	% of Total Office RSF		0.3	%		0.6	%		0.4	%		0.1	%		1.4	%
	Annualized Cash Revenue 3/	$	881		$	1,593		$	1,490		$	238		$	4,202
	% of Total Office Annl Cash Rev		0.3	%		0.5	%		0.5	%		0.1	%		1.3	%
Orlando	RSF		2,389			11,607			1,358			6,340			21,694
	% of Total Office RSF		0.0	%		0.1	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue 3/	$	62		$	203		$	32		$	156		$	453
	% of Total Office Annl Cash Rev		0.0	%		0.1	%		0.0	%		0.0	%		0.1	%
Piedmont Triad	RSF		138,294			34,933			11,372			34,674			219,273
	% of Total Office RSF		0.8	%		0.2	%		0.1	%		0.2	%		1.3	%
	Annualized Cash Revenue 3/	$	1,290		$	619		$	214		$	528		$	2,651
	% of Total Office Annl Cash Rev		0.4	%		0.2	%		0.1	%		0.2	%		0.8	%
Raleigh	RSF		115,687			61,331			81,840			37,114			295,972
	% of Total Office RSF		0.6	%		0.4	%		0.5	%		0.2	%		1.7	%
	Annualized Cash Revenue 3/	$	1,969		$	1,144		$	1,615		$	732		$	5,460
	% of Total Office Annl Cash Rev		0.6	%		0.4	%		0.5	%		0.2	%		1.7	%
Richmond	RSF		59,717			27,892			30,460			27,587			145,656
	% of Total Office RSF		0.3	%		0.2	%		0.2	%		0.2	%		0.8	%
	Annualized Cash Revenue 3/	$	1,163		$	525		$	564		$	546		$	2,798
	% of Total Office Annl Cash Rev		0.4	%		0.2	%		0.2	%		0.2	%		0.9	%
Tampa	RSF		18,077			16,507			27,524			31,140			93,248
	% of Total Office RSF		0.1	%		0.1	%		0.2	%		0.2	%		0.5	%
	Annualized Cash Revenue 3/	$	421		$	390		$	658		$	725		$	2,194
	% of Total Office Annl Cash Rev		0.1	%		0.1	%		0.2	%		0.2	%		0.7	%
Other	RSF		1,095			12,707			1,130			0			14,932
	% of Total Office RSF		0.0	%		0.1	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue 3/	$	5		$	339		$	23		$	—		$	367
	% of Total Office Annl Cash Rev		0.0	%		0.1	%		0.0	%		0.0	%		0.1	%
Total	RSF		550,343			364,014			437,946			201,726			1,554,029
	% of Total Office RSF		3.1	%		2.1	%		2.5	%		1.2	%		8.9	%
	Annualized Cash Revenue 3/	$	8,895		$	6,856		$	8,377		$	3,901		$	28,029
	% of Total Office Annl Cash Rev		2.8	%		2.1	%		2.6	%		1.2	%		8.7	%

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

2/ Includes 68,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue.

3/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. Page 20 12/31/06

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

		Three Months Ended
		03/31/07 1/			06/30/07			09/30/07			12/31/07			Total
Atlanta	RSF		235,316			36,576			33,600			55,039			360,531
	% of Total Industrial RSF		4.0	%		0.6	%		0.6	%		0.9	%		6.1	%
	Annualized Cash Revenue 2/	$	1,277		$	213		$	123		$	281		$	1,894
	% of Total Industrial Annl Cash Rev		4.2	%		0.7	%		0.4	%		0.9	%		6.3	%
Greenville	RSF		0			16,081			0			0			16,081
	% of Total Industrial RSF		0.0	%		0.3	%		0.0	%		0.0	%		0.3	%
	Annualized Cash Revenue 2/	$	—		$	212		$	—		$	—		$	212
	% of Total Industrial Annl Cash Rev		0.0	%		0.7	%		0.0	%		0.0	%		0.7	%
Kansas City	RSF		0			0			0			0			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue 2/	$	—		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Cash Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Piedmont Triad	RSF		257,014			193,574			126,755			57,200			634,543
	% of Total Industrial RSF		4.3	%		3.3	%		2.1	%		1.0	%		10.7	%
	Annualized Cash Revenue 2/	$	1,346		$	760		$	1,156		$	440		$	3,702
	% of Total Industrial Annl Cash Rev		4.4	%		2.5	%		3.8	%		1.4	%		12.1	%
Total	RSF		492,330			246,231			160,355			112,239			1,011,155
	% of Total Industrial RSF		8.3	%		4.1	%		2.7	%		1.9	%		17.0	%
	Annualized Cash Revenue 2/	$	2,623		$	1,185		$	1,279		$	721		$	5,808
	% of Total Industrial Annl Cash Rev		8.6	%		3.9	%		4.2	%		2.4	%		19.1	%

1/ Includes 86,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. Page 21 12/31/06

Office Lease Expirations by Market by Year 1/

Dollars in thousands

		2007 2/			2008			2009			2010			Thereafter
Atlanta	RSF		318,435			365,567			338,354			80,624			1,121,633
	% of Total Office RSF		1.8	%		2.1	%		2.0	%		0.5	%		6.5	%
	Annualized Cash Revenue 3/	$	5,470		$	6,272		$	5,820		$	1,618		$	21,171
	% of Total Office Annl Cash Rev		1.7	%		1.9	%		1.8	%		0.5	%		6.6	%
Columbia	RSF		4,237			69,987			8,409			6,475			33,579
	% of Total Office RSF		0.0	%		0.4	%		0.0	%		0.0	%		0.2	%
	Annualized Cash Revenue 3/	$	71		$	1,068		$	129		$	100		$	451
	% of Total Office Annl Cash Rev		0.0	%		0.3	%		0.0	%		0.0	%		0.1	%
Greenville	RSF		16,166			78,679			60,122			62,986			590,782
	% of Total Office RSF		0.1	%		0.5	%		0.3	%		0.4	%		3.4	%
	Annualized Cash Revenue 3/	$	300		$	1,465		$	905		$	1,034		$	9,557
	% of Total Office Annl Cash Rev		0.1	%		0.5	%		0.3	%		0.3	%		3.0	%
Kansas City	RSF		98,620			80,555			120,971			101,003			330,534
	% of Total Office RSF		0.6	%		0.5	%		0.7	%		0.6	%		1.9	%
	Annualized Cash Revenue 3/	$	2,045		$	1,669		$	2,403		$	2,729		$	7,788
	% of Total Office Annl Cash Rev		0.6	%		0.5	%		0.7	%		0.8	%		2.4	%
Memphis	RSF		84,366			127,831			225,068			206,504			455,208
	% of Total Office RSF		0.5	%		0.7	%		1.3	%		1.2	%		2.6	%
	Annualized Cash Revenue 3/	$	2,019		$	2,686		$	4,290		$	4,197		$	8,841
	% of Total Office Annl Cash Rev		0.6	%		0.8	%		1.3	%		1.3	%		2.7	%
Nashville	RSF		241,430			206,931			685,686			436,527			1,088,935
	% of Total Office RSF		1.4	%		1.2	%		4.0	%		2.5	%		6.3	%
	Annualized Cash Revenue 3/	$	4,201		$	4,049		$	13,129		$	8,588		$	20,590
	% of Total Office Annl Cash Rev		1.3	%		1.3	%		4.1	%		2.7	%		6.4	%
Orlando	RSF		21,694			6,133			6,788			79,163			104,154
	% of Total Office RSF		0.1	%		0.0	%		0.0	%		0.5	%		0.6	%
	Annualized Cash Revenue 3/	$	453		$	155		$	157		$	1,697		$	2,139
	% of Total Office Annl Cash Rev		0.1	%		0.0	%		0.0	%		0.5	%		0.7	%
Piedmont Triad	RSF		219,273			355,696			127,439			196,077			935,161
	% of Total Office RSF		1.3	%		2.1	%		0.7	%		1.1	%		5.4	%
	Annualized Cash Revenue 3/	$	2,651		$	5,734		$	2,033		$	3,002		$	13,759
	% of Total Office Annl Cash Rev		0.8	%		1.8	%		0.6	%		0.9	%		4.3	%
Raleigh	RSF		295,972			399,823			600,774			404,336			1,687,990
	% of Total Office RSF		1.7	%		2.3	%		3.5	%		2.3	%		9.7	%
	Annualized Cash Revenue 3/	$	5,459		$	7,509		$	11,875		$	6,993		$	25,345
	% of Total Office Annl Cash Rev		1.7	%		2.3	%		3.7	%		2.2	%		7.9	%
Richmond	RSF		145,656			250,797			204,517			247,067			1,054,863
	% of Total Office RSF		0.8	%		1.4	%		1.2	%		1.4	%		6.1	%
	Annualized Cash Revenue 3/	$	2,798		$	4,637		$	3,808		$	4,447		$	18,870
	% of Total Office Annl Cash Rev		0.9	%		1.4	%		1.2	%		1.4	%		5.9	%
Tampa	RSF		93,248			186,757			414,414			474,850			1,109,958
	% of Total Office RSF		0.5	%		1.1	%		2.4	%		2.7	%		6.4	%
	Annualized Cash Revenue 3/	$	2,193		$	4,004		$	8,702		$	11,867		$	25,264
	% of Total Office Annl Cash Rev		0.7	%		1.2	%		2.7	%		3.7	%		7.8	%
Other	RSF		14,932			16,318			6,785			27,979			7,491
	% of Total Office RSF		0.1	%		0.1	%		0.0	%		0.2	%		0.0	%
	Annualized Cash Revenue 3/	$	367		$	544		$	124		$	617		$	158
	% of Total Office Annl Cash Rev		0.1	%		0.2	%		0.0	%		0.2	%		0.0	%
Total	RSF		1,554,029			2,145,074			2,799,327			2,323,591			8,520,288
	% of Total Office RSF		9.0	%		12.4	%		16.1	%		13.4	%		49.1	%
	Annualized Cash Revenue 3/	$	28,027		$	39,792		$	53,375		$	46,889		$	153,933
	% of Total Office Annl Cash Rev		8.7	%		12.4	%		16.6	%		14.6	%		47.8	%

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

2/ Includes 68,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue.

3/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. Page 22 12/31/06

Industrial Lease Expirations by Market by Year

Dollars in thousands

		2007 1/			2008			2009			2010			Thereafter
Atlanta	RSF		360,531			575,710			340,555			294,369			1,388,085
	% of Total Industrial RSF		6.1	%		9.7	%		5.7	%		5.0	%		23.4	%
	Annualized Cash Revenue 2/	$	1,893		$	2,958		$	2,156		$	1,580		$	7,140
	% of Total Industrial Annl Cash Rev		6.2	%		9.7	%		7.1	%		5.2	%		23.4	%
Greenville	RSF		16,081			5,350			4,794			0			0
	% of Total Industrial RSF		0.3	%		0.1	%		0.1	%		0.0	%		0.0	%
	Annualized Cash Revenue 2/	$	212		$	61		$	38		$	—		$	—
	% of Total Industrial Annl Cash Rev		0.7	%		0.2	%		0.1	%		0.0	%		0.0	%
Kansas City	RSF		0			0			1,756			0			0
	% of Total Industrial RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue 2/	$	—		$	—		$	20		$	—		$	—
	% of Total Industrial Annl Cash Rev		0.0	%		0.0	%		0.1	%		0.0	%		0.0	%
Piedmont Triad	RSF		634,543			633,326			614,750			264,214			808,717
	% of Total Industrial RSF		10.7	%		10.7	%		10.3	%		4.4	%		13.6	%
	Annualized Cash Revenue 2/	$	3,702		$	2,570		$	3,012		$	1,424		$	3,755
	% of Total Industrial Annl Cash Rev		12.1	%		8.4	%		9.9	%		4.7	%		12.3	%
Total	RSF		1,011,155			1,214,386			961,855			558,583			2,196,802
	% of Total Industrial RSF		17.0	%		20.4	%		16.2	%		9.4	%		37.0	%
	Annualized Cash Revenue 2/	$	5,807		$	5,589		$	5,226		$	3,004		$	10,895
	% of Total Industrial Annl Cash Rev		19.0	%		18.3	%		17.1	%		9.8	%		35.7	%

1/ Includes 86,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. Page 23 12/31/06

Customer Diversification 1/

December 31, 2006

Dollars in thousands

Top 20 Customers

Customer	RSF	Annualized Cash Revenue 2/		Percent of Annualized Cash Revenue 2/		Average Remaining Lease Term in Years
Federal Government	1,532,005	$	26,486	6.79	%	8.1
AT&T	672,986		12,701	3.25	%	2.1
Price Waterhouse Coopers	332,931		8,475	2.17	%	3.3
State Of Georgia	360,683		7,252	1.86	%	3.2
T-Mobile USA	205,855		5,287	1.36	%	7.0
Syniverse Technologies	198,750		4,581	1.17	%	9.8
US Airways	293,007		3,995	1.02	%	0.8
Volvo	278,940		3,974	1.02	%	3.3
Lockton Companies	151,076		3,713	0.95	%	8.2
Northern Telecom	246,000		3,651	0.94	%	1.2
SCI Services	162,784		3,499	0.90	%	10.6
Metropolitan Life Insurance	174,944		3,437	0.88	%	7.0
BB&T	209,237		3,131	0.80	%	5.6
Fluor Enterprises	147,041		2,658	0.68	%	4.8
Jacobs Engineering Group	181,794		2,535	0.65	%	9.0
Vanderbilt University	126,617		2,386	0.61	%	8.8
Lifepoint Corporate Services	122,703		2,351	0.60	%	4.5
Wachovia	97,792		2,109	0.54	%	3.3
Icon Clinical Research	101,249		2,066	0.53	%	6.1
The Martin Agency	118,518		2,038	0.52	%	10.3
	5,714,912	$	106,325	27.24	%	5.8

By Industry

Category	Percent of Annualized Cash Revenue 2/
Professional, Scientific, and Technical Services	21.1	%
Government/Public Administration	9.5	%
Insurance	9.2	%
Finance/Banking	9.0	%
Retail Trade	7.5	%
Telecommunication	7.0	%
Manufacturing	6.9	%
Wholesale Trade	6.1	%
Health Care and Social Assistance	5.5	%
Real Estate Rental and Leasing	3.7	%
Information	2.9	%
Transportation and Warehousing	2.8	%
Accommodation and Food Services	2.8	%
Administrative and Support Services	2.5	%
Other Services (except Public Administration)	2.3	%
Educational Services	1.2	%
	100.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to joint ventures properties that are consolidated under GAAP.

2/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. Page 24 12/31/06

Acquisition Activity

Dollars in thousands

Name	Market	Type 1/	Date Acquired	Square Footage	Total Cost
First quarter 2006:
None
Second quarter 2006:
None
Third quarter 2006:
None
Fourth quarter 2006:
Rhodia	Richmond	O	11/01/06	70,000	$	10,725
Fourth quarter totals				70,000	$	10,725
2006 totals				70,000	$	10,725

1/ The letter “O” represents Office.

Highwoods Properties, Inc. Page 25 12/31/06

Disposition Activity

Dollars in thousands

Name	Market	Type 1/	Date Sold	Square Footage	Occupancy		Gross Sales Price
First quarter 2006:
Office properties	Atlanta/Columbia/Tampa	O	01/09/06	1,596,000	74.9	%
Industrial properties	Atlanta	I	01/09/06	271,000	72.8	%
				1,867,000	74.6	%	$	141,000
Concourse	Raleigh	O	03/30/06	132,000	77.2	%	$	12,900
First quarter totals				1,999,000	74.8	%	$	153,900
Second quarter 2006:
None				—	—		$	—
Third quarter 2006:
Office properties	Raleigh	O	08/29/06	191,000	94.2	%
Industrial properties	Raleigh	I	08/29/06	101,000	63.8	%
				292,000	83.7	%	$	22,800
Third quarter totals				292,000	83.7	%	$	22,800
Fourth quarter 2006:
Shannon Valley	Kansas City	R	10/26/06	105,000	95.3	%	$	10,525
Office properties	Piedmont Triad	O	11/28/06	70,000	87.1	%
Industrial properties	Piedmont Triad	I	11/28/06	323,000	96.9	%
				393,000	95.2	%	$	16,525
Bay Vista	Tampa	O	11/29/06	193,000	86.6	%	$	21,950
Fourth quarter totals				691,000	92.8	%	$	49,000
2006 totals (wholly-owned only)				2,982,000	79.8	%	$	225,700
The Vinings @ University Center 2/	Charlotte	A	11/01/06	156 Units	97.0	%	$	14,250
2006 totals (including joint ventures) 3/							$	239,950

1/ The letters “O,” “I,” “R,” and “A” represent Office, Industrial, Retail, and Apartments, respectively.

2/ The Vinings properties were owned by a consolidated 50% owned joint venture.

3/ Excludes $662 thousand of rental unit sales in Kansas City.

Highwoods Properties, Inc. Page 26 12/31/06

Development Activity

Dollars in thousands

In - Process

Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/06			Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Office:
Dept. of Homeland Security	Atlanta	O	91,000	$	21,700	$	7,587		100	%	3Q 07	3Q 07
ThyssenKrupp	Memphis	O	78,000		8,800		9,110		100	%	1Q 07	1Q 07
Healthways	Nashville	O	255,000		58,300		14,249	��	100	%	2Q 08	2Q 08
Berkshire	Orlando	O	99,000		13,197		8,680		4	%	1Q 07	2Q 08
Glenlake VI	Raleigh	O	122,000		22,600		1,718		14	%	1Q 08	3Q 09
RBC Plaza 2/	Raleigh	O	292,000		76,056		6,553		65	%	4Q 08	4Q 09
North Shore Commons B	Richmond	O	96,000		13,586		10,019		0	%	1Q 07	2Q 08
Highwoods Preserve VII	Tampa	O	115,000		21,245		18,698		100	%	1Q 07	4Q 08
Highwoods Baycenter I	Tampa	O	209,000		41,174		15,763		0	%	3Q 07	4Q 08
Total or Weighted Average			1,357,000	$	276,658	$	92,377		55	%
Industrial:
Newpoint V	Atlanta	I	263,000	$	11,620	$	6,248		0	%	2Q 07	2Q 08
Enterprise III	Piedmont Triad	I	120,000		5,502		889		0	%	3Q 07	4Q 08
Total or Weighted Average			383,000	$	17,122	$	7,137		0	%
For Sale Residential: 3/									309
RBC Plaza Condominiums 4/	Raleigh	RC	139 Units	$	42,380	$	2,336		Reservations		4Q 08	2Q 09
In-Process Total or Weighted Average 4/			1,740,000	$	336,160	$	101,850		43	%
Completed Not Stabilized 5/
Office:
Glenlake Four	Raleigh	O	158,000	$	26,286	$	23,478		72	%	3Q 06	1Q 08
Cordoba 6/	Kansas City	O	46,000		6,790		4,376		31	%	4Q 06	1Q 08
Stony Point IV	Richmond	O	107,000		13,125		12,208		86	%	4Q 06	4Q 07
3330 Healy Rd 6/	Piedmont Triad	O	40,000		4,859		4,192		0	%	4Q 06	2Q 07
Cool Springs III	Nashville	O	153,000		22,500		16,917		63	%	2Q 06	4Q 07
Total or Weighted Average			504,000	$	73,560	$	61,171		63	%
Industrial:
Enterprise II	Piedmont Triad	I	418,000	$	15,137	$	14,011		44	%	4Q 06	4Q 08
Completed Not Stabilized Total or Weighted Average			922,000	$	88,697	$	75,182		54	%
Grand Total or Weighted Average			2,662,000	$	424,857	$	177,032		47	%

Placed in Service

Property	Market	Type 1/	In-Service Date	Rentable Square Feet	Investment @ 12/31/06		Occ %		Leasing %
Cordoba 6/	Kansas City	R	9/1/2006	23,000	$	8,235	100	%	100	%
Griffith Rd./Boutique Shops	Piedmont Triad	R	6/1/2006	9,600		2,616	100	%	100	%
Total or Weighted Average				32,600	$	10,851	100	%	100	%

1/ The Letters “O”, “I”, “R” and “RC” represent: Office, Industrial, Retail and For Sale Residential Condominiums, respectively.

2/ Includes ancillary retail space on the ground level of approximately 11,000 square feet.

3/ In January 2007 the Company executed a Joint Venture agreement for this development. The Company will have a 93% interest and will consolidate this Joint Venture. The investment amounts shown represent the Company’s 93% share.

4/ There are currently 309 reservations for the 139 units. Reservations are fully refundable until mid 2007 at which time binding sales contracts will be accepted and non-refundable deposits will be retained. Condo Units and Reservations numbers are not part of In-Process Total or Weighted Average for SF & Pre-Leasing percentage.

5/ “Completed Not Stabilized” and Redevelopment properties are recorded in the Consolidated Balance Sheet in the Land and Building accounts, not Development-in-Process.

6/ Redevelopment property, the investment amounts shown include original Land and Building basis, in addition to the incremental redevelopment costs.

Highwoods Properties, Inc. Page 27 12/31/06

Development Land

December 31, 2006

Dollars in thousands

Market	Usable Acres	Total Estimated Market Value
Research Triangle	246	$	49,816
Atlanta	140		18,355
Triad	69		16,163
Kansas City	44		19,100
Richmond	44		10,830
Charlotte	41		9,854
Baltimore	39		11,699
Nashville	26		7,386
Tampa	23		8,825
Memphis	21		5,100
Orlando	14		10,800
Greenville	12		1,800
Total 1/ 2/	719	$	169,728

1/ Developable square footage on core land holdings, which constitute 435 of the total 719 acres, is approximately 3.9 million of office space and 1.4 million of industrial space.

2/ Includes 108 acres ($31 million based on expected gross proceeds) included in property held for sale at December 31, 2006.

Highwoods Properties, Inc. Page 28 12/31/06

Unconsolidated Joint Ventures Assets, Debt and Liabilities

December 31, 2006

Dollars in thousands

				Venture’s Books
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.0	%	$	6,853	$	171	$	189
Dallas County Partners I, LP	O/ I	50.0	%		39,452		50,258		53,082
Dallas County Partners II, LP	O	50.0	%		15,348		18,326		19,688
Dallas County Partners III, LP	O	50.0	%		42		—		30
Fountain Three	O/ I / R	50.0	%		29,629		33,008		35,159
RRHWoods , LLC	O/ M	50.0	%		89,753		77,201		84,402
Kessinger/Hunter, LLC	-	26.5	%		8,545		—		390
4600 Madison Associates, LP	O	12.5	%		19,179		14,433		14,822
Highwoods DLF 98/29, LP	O	22.8	%		131,978		63,914		66,487
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		106,554		56,712		59,341
Concourse Center Associates, LLC	O	50.0	%		13,749		9,128		9,425
Plaza Colonnade, LLC	O/R	50.0	%		74,590		67,904		68,850
Highwoods KC Glenridge Office, LP	O	40.0	%		23,318		16,500		16,995
Highwoods KC Glenridge Land, LP	O	40.0	%		797		—		81
Highwoods KC Orlando, LLC	O	40.0	%		208,848		143,000		148,384
Weston Lakeside, LLC	M	50.0	%		31,045		24,897		27,557
Total				$	799,680	$	575,452	$	604,882
				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.00	%	$	3,358	$	84	$	93
Dallas County Partners I, LP	O/ I	50.00	%		19,726		25,129		26,541
Dallas County Partners II, LP	O	50.00	%		7,674		9,163		9,844
Dallas County Partners III, LP	O	50.00	%		21		—		15
Fountain Three	O/ I / R	50.00	%		14,815		16,504		17,580
RRHWoods , LLC	O/ M	50.00	%		44,877		38,601		42,201
Kessinger/Hunter, LLC	-	26.50	%		2,264		—		103
4600 Madison Associates, LP	O	12.50	%		2,397		1,804		1,853
Highwoods DLF 98/29, LP	O	22.81	%		30,104		14,579		15,166
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		45,744		24,346		25,475
Concourse Center Associates, LLC	O	50.00	%		6,875		4,564		4,713
Plaza Colonnade, LLC	O/R	50.00	%		37,295		33,952		34,425
Highwoods KC Glenridge Office, LP	O	40.00	%		9,327		6,600		6,798
Highwoods KC Glenridge Land, LP	O	40.00	%		319		—		32
Highwoods KC Orlando, LLC	O	40.00	%		83,539		57,200		59,354
Weston Lakeside, LLC	M	50.00	%		15,523		12,449		13,779
Total 2/				$	323,858	$	244,975	$	257,972

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

2/ Highwoods’ share of equity from these tables will not equal Investments in Unconsolidated Affiliates on the Consolidated Balance Sheet due to various purchase accounting and related adjustments as well as negative investment balances reclassed to Liabilities, which are not reflected in the Joint Ventures’ stand-alone financial statements.

Highwoods Properties, Inc. Page 29 12/31/06

Unconsolidated Joint Ventures Income

For the Three Months Ended December 31, 2006

Dollars in thousands

			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp			Interest		Depr/Amort		Loss on Debt Extinquishment		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	687	$	579		$	4	$	104	$	—	$	—
Dallas County Partners I, LP	50.00	%		3,277		1,681			831		594		—		171
Dallas County Partners II, LP	50.00	%		1,587		718			461		220		—		188
Dallas County Partners III, LP	50.00	%		54		53			—		1		—		—
Fountain Three	50.00	%		1,935		897			584		395		—		59
RRHWoods , LLC	50.00	%		4,069		2,284			968		1,424		—		(607	)
Kessinger/Hunter, LLC	26.50	%		2,010		1,276			—		152		—		582
4600 Madison Associates, LP	12.50	%		1,309		546			252		415		—		96
Highwoods DLF 98/29, LP	22.80	%		5,177		1,701			1,085		912		—		1,479
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		4,096		1,309			1,098		1,004		—		685
Concourse Center Associates, LLC	50.00	%		534		139			166		83		—		146
Plaza Colonnade, LLC	50.00	%		2,253		826			993		528		—		(94	)
Highwoods KC Glenridge Office, LP	40.00	%		927		385			210		161		—		171
Highwoods KC Glenridge Land, LP	40.00	%		—		(12	)		—		—		—		12
Highwoods KC Orlando, LLC	40.00	%		7,632		3,264			1,881		1,782		—		705
Weston Lakeside, LLC	50.00	%		133		231			141		208		—		(447	)
Total			$	35,680	$	15,877		$	8,674	$	7,983	$	—	$	3,146
			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp			Interest		Depr/Amort		Loss on Debt Extinquishment		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	337	$	284		$	2	$	51	$	—	$	—
Dallas County Partners I, LP	50.00	%		1,638		840			415		297		—		86
Dallas County Partners II, LP	50.00	%		794		359			230		110		—		95
Dallas County Partners III, LP	50.00	%		27		26			—		1		—		—
Fountain Three	50.00	%		967		449			292		198		—		28
RRHWoods , LLC	50.00	%		2,034		1,142			484		712		—		(304	)
Kessinger/Hunter, LLC	26.50	%		533		338			—		40		—		155
4600 Madison Associates, LP	12.50	%		163		68			31		52		—		12
Highwoods DLF 98/29, LP	22.81	%		1,181		388			247		208		—		338
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		1,758		562			472		431		—		293
Concourse Center Associates, LLC	50.00	%		267		69			83		41		—		74
Plaza Colonnade, LLC	50.00	%		1,127		413			497		264		—		(47	)
Highwoods KC Glenridge Office, LP	40.00	%		371		154			84		64		—		69
Highwoods KC Glenridge Land, LP	40.00	%		—		(4	)		—		—		—		4
Highwoods KC Orlando, LLC	40.00	%		3,053		1,305			753		713		—		282
Weston Lakeside, LLC	50.00	%		67		116			71		104		—		(224	)
Total 1/ 2/			$	14,317	$	6,509		$	3,661	$	3,286	$	—	$	861

1/ Highwoods’ share of Depreciation and Amortization from these tables will not equal Depreciation and Amortization of Real Estate Assets for Unconsolidated Affiliates on the Statement of Funds from Operations due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.

2/ Highwoods’ share of Net Income from these tables will not equal Equity in Earnings of Unconsolidated Affiliates on the Consolidated Income Statement due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.

Highwoods Properties, Inc. Page 30 12/31/06

Unconsolidated Joint Ventures Income

For the Year Ended December 31, 2006

Dollars in thousands

			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Loss on Debt Extinquishment		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	2,710	$	2,038	$	21	$	517	$	—	$	134
Dallas County Partners I, LP	50.00	%		12,110		6,102		2,902		2,269		1,029		(192	)
Dallas County Partners II, LP	50.00	%		6,079		2,631		1,940		777		—		731
Dallas County Partners III, LP	50.00	%		219		218		—		5		—		(4	)
Fountain Three	50.00	%		7,504		3,461		2,110		1,605		407		(79	)
RRHWoods , LLC	50.00	%		15,544		8,712		3,843		4,158		12		(1,181	)
Kessinger/Hunter, LLC	26.50	%		7,381		5,182		—		632		—		1,567
4600 Madison Associates, LP	12.50	%		4,841		2,186		1,027		1,616		—		12
Highwoods DLF 98/29, LP	22.80	%		20,679		6,618		4,371		3,576		—		6,114
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		16,525		5,198		4,416		4,030		—		2,881
Concourse Center Associates, LLC	50.00	%		2,125		536		669		332		—		588
Plaza Colonnade, LLC	50.00	%		8,743		3,411		3,975		2,098		—		(741	)
Highwoods KC Glenridge Office, LP	40.00	%		3,703		1,584		827		645		—		647
Highwoods KC Glenridge Land, LP	40.00	%		—		9		2		—		—		(11	)
Highwoods KC Orlando, LLC	40.00	%		31,215		12,521		7,524		7,814		—		3,356
Weston Lakeside, LLC	50.00	%		133		231		141		208		—		(447	)
Total			$	139,511	$	60,638	$	33,768	$	30,282	$	1,448	$	13,375
			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Loss on Debt Extinquishment		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	1,328	$	999	$	10	$	253	$	—	$	66
Dallas County Partners I, LP	50.00	%		6,055		3,051		1,451		1,135		514		(96	)
Dallas County Partners II, LP	50.00	%		3,040		1,316		970		389		—		365
Dallas County Partners III, LP	50.00	%		110		109		—		3		—		(2	)
Fountain Three	50.00	%		3,752		1,731		1,055		803		204		(41	)
RRHWoods , LLC	50.00	%		7,772		4,356		1,922		2,079		6		(591	)
Kessinger/Hunter, LLC	26.50	%		1,956		1,373		—		167		—		416
4600 Madison Associates, LP	12.50	%		605		273		128		202		—		2
Highwoods DLF 98/29, LP	22.81	%		4,717		1,510		997		816		—		1,394
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		7,094		2,232		1,896		1,730		—		1,236
Concourse Center Associates, LLC	50.00	%		1,063		268		335		166		—		294
Plaza Colonnade, LLC	50.00	%		4,372		1,706		1,988		1,049		—		(371	)
Highwoods KC Glenridge Office, LP	40.00	%		1,481		634		331		258		—		258
Highwoods KC Glenridge Land, LP	40.00	%		—		4		1		—		—		(5	)
Highwoods KC Orlando, LLC	40.00	%		12,486		5,008		3,010		3,126		—		1,342
Weston Lakeside, LLC	50.00	%		67		116		71		104		—		(224	)
Total 1/ 2/			$	55,898	$	24,686	$	14,165	$	12,280	$	724	$	4,043

1/ Highwoods’ share of Depreciation and Amortization from these tables will not equal Depreciation and Amortization of Real Estate Assets for Unconsolidated Affiliates on the Statement of Funds from Operations due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.

2/ Highwoods’ share of Net Income from these tables will not equal Equity in Earnings of Unconsolidated Affiliates on the Consolidated Income Statement due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.

Highwoods Properties, Inc. Page 31 12/31/06

Joint Ventures Long-Term Debt Detail 1/

Dollars in thousands

Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 12/31/06
Dallas County Partners I, LP	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18	$	42,816
Dallas County Partners I, LP	50.0	%	Thrivent	8.45	%	Aug-10		1,624
Dallas County Partners I, LP	50.0	%	Regions	6.30	%	Jun-14		3,553
Dallas County Partners I, LP	50.0	%	Sun Life	5.92	%	Feb-16		1,075
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.00	%	Jul-11		1,190
				6.31	%			50,258
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.19	%	Jun-13		18,326
Fountain Three	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		17,090
Fountain Three	50.0	%	Thrivent	7.95	%	Oct-10		3,598
Fountain Three	50.0	%	Thrivent	7.30	%	Apr-09		3,403
Fountain Three	50.0	%	Lehman Brothers	8.02	%	Jul-09		3,541
Fountain Three	50.0	%	Thrivent	7.00	%	Sep-12		5,376
				6.82	%			33,008
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	3.64	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Bank of America	6.80	%	Sep-12		26,820
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	2.99	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.01	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		4,728
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	5.85	%	Mar-16		7,600
RRHWoods, LLC	50.0	%	Regions	6.30	%	Jun-14		3,553
				5.00	%			77,201
Plaza Colonnade, LLC	50.0	%	Met Life	5.72	%	Jan-17		49,409
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.38	%	Mar-10		1,818
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	6.00	%	Mar-16		4,394
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.90	%	Mar-24		12,283
				5.76	%			67,904
4600 Madison Associates, LLC	12.5	%	State Farm	6.85	%	Apr-18		14,433
Board of Trade Investment Company	49.0	%	KC Board of Trade Clearing Corp.	7.75	%	Sep-07		171
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.78	%	Apr-11		63,914
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.66	%	May-12		56,712
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	6.95	%	Jul-10		9,128
Highwoods KC Orlando, LLC	40.0	%	Met Life	5.21	%	Jul-14		143,000
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.84	%	Jun-14		16,500
Weston Lakeside, LLC	50.0	%	Wachovia	7.10	%	Jul-10		24,897
				6.18	%			328,755
				6.15	%		$	575,452
Highwoods’ share of the above							$	244,975

1/ Excludes loans related to two “consolidated” joint ventures.

Highwoods Properties, Inc. Page 32 12/31/06

Joint Ventures Portfolio Summary

As of December 31, 2006

Summary by Location:

Market	Rentable Square Feet 1/	Occupancy 2/		Percentage of Annualized Cash Revenue Highwoods’ Share Only 3/
				Office		Industrial		Retail		Multi-Family		Total
Des Moines	2,475,000	93.6	%	28.4	%	4.2	%	1.0	%	3.4	%	37.0	%
Orlando	1,686,000	94.7	%	27.2	%	—		—		—		27.2	%
Atlanta	835,000	95.0	%	11.4	%	—		—		—		11.4	%
Kansas City	721,000	82.2	%	8.8	%	—		—		—		8.8	%
Richmond	413,000	100.0	%	5.0	%	—		—		—		5.0	%
Raleigh	455,000	99.6	%	3.7	%	—		—		—		3.7	%
Piedmont Triad	364,000	100.0	%	3.6	%	—		—		—		3.6	%
Tampa	205,000	100.0	%	2.0	%	—		—		—		2.0	%
Charlotte	148,000	100.0	%	0.8	%	—		—		—		0.8	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%
Total 4/	7,412,000	94.3	%	91.4	%	4.2	%	1.0	%	3.4	%	100.0	%

1/ Excludes Des Moines’ apartment units.

2/ Excludes Des Moines’ apartment occupancy percentage of 95.9%.

3/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

4/ Includes 618,000 square feet of properties in joint ventures that are consolidated.

Highwoods Properties, Inc. Page 33 12/31/06

Joint Ventures Lease Expirations

December 31, 2006

Dollars in thousands

Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Total
2006	682,325	9.7	%	$	13,895	$	20.36	10.7	%
2007	1,341,385	19.2	%		24,120		17.98	18.5	%
2008	817,777	11.7	%		15,895		19.44	12.2	%
2009	760,721	10.9	%		13,156		17.29	10.1	%
2010	897,298	12.8	%		15,980		17.81	12.3	%
2011	421,695	6.0	%		8,859		21.01	6.8	%
2012	760,324	10.9	%		12,308		16.19	9.5	%
2013	388,544	5.5	%		8,617		22.18	6.6	%
2014	556,965	8.0	%		9,108		16.35	7.0	%
2015	76,970	1.1	%		983		12.77	0.8	%
2016 and thereafter	296,828	4.2	%		7,202		24.26	5.5	%
	7,000,832	100.0	%	$	130,123	$	18.59	100.0	%

1/ Annualized Cash Revenue is December, 2006 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. Page 34 12/31/06

Joint Venture Development Activity

Dollars in thousands

In-Process
Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 12/31/06		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Brickstone	50	%	Des Moines	31,000	$	5,149	$	4,343	35	%	4Q 06	4Q 07
Weston Lakeside 1/	50	%	Raleigh	332 Units		33,200		31,104	41	%	1Q 07	1Q 08
In-Process Total					$	38,349	$	35,447
Highwoods’ Share of the above					$	19,175	$	17,724
Placed in Service
Property	% Ownership		Market	In-Service Date	Rentable Square Feet		Investment @ 12/31/06		Occ %
Sonoma	50	%	Des Moines	10/01/06		76,000	$	9,336	82	%
Highwoods Share of the above						38,000	$	4,668

1/ Estimated completion date is the date the last unit is expected to be delivered, currently there are 136 units leased

Highwoods Properties, Inc. Page 35 12/31/06