Highwoods Properties (HIW) 8-K Highwoods Properties Reports First Quarter 2009 Results

Exhibit 99.2

Supplemental Information

March 31, 2009

Supplemental Information

Table of Contents

March 31, 2009

Schedule	Page
Summary and Corporate Information	i, ii and iii
Consolidated Statements of Income	1
Funds from Operations and Additional Information	2
Consolidated Balance Sheets	3
Components of 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
Same Property Performance	25
Disposition Activity	26
Development Activity	27
Development Land	28
Acquisition Activity	29
Unconsolidated Joint Ventures Assets, Debt and Liabilities	30
Unconsolidated Joint Ventures Income (Three Months)	31
Joint Ventures Long-Term Debt Detail	32
Joint Ventures Portfolio Summary	33
Joint Ventures Lease Expirations	34
Joint Venture Acquisition and Disposition Activity	35

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 30 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 other risks listed at the end of our first quarter earnings press release and detailed from time to time in the Company’s SEC reports. Highwoods assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

This supplemental also includes non-GAAP financial measures, such as Funds From Operations (FFO) and net operating income (NOI). Definitions of FFO and NOI and an explanation of management’s view of the usefulness and risks of FFO and NOI can be found toward the end of the first quarter earnings press release.

Highwoods Properties, Inc. TOC 3/31/09

Summary

Amounts in thousands, except per share amounts

	Three Months Ended
	03/31/09			12/31/08			09/30/08			06/30/08			03/31/08
Shares and units:
Common shares outstanding at end of period		63,763			63,572			63,545			57,632			57,309
Common units outstanding at end of period		4,067			4,067			3,906			3,933			3,951
Weighted average common shares outstanding—basic		63,631			63,563			58,998			57,456			57,217
Weighted average common shares outstanding—diluted		67,705			67,568			63,228			61,822			61,416
Share price:
At end of period	$	21.42		$	27.36		$	35.56		$	31.42		$	31.07
High close during period		26.17			34.29			37.94			37.38			32.34
Low close during period		16.57			15.59			29.88			31.42			26.67
Financial information:
Land sale gains, net of (impairments)	$	—		$	(1,565	)	$	1,727		$	89		$	—
Gains on for sale residential condominiums, net of partner’s interest		550			4,301			—			—			—
Lease termination income		1,138			216			436			26			1,900
Straight line rental income		1,534			701			967			1,892			2,404
Capitalized interest		1,504			1,399			2,106			2,221			2,585
Impairments on depreciable properties		—			(32,442	)		—			—			—
Gains on sales of depreciable properties		92			6,685			3,155			5,045			3,726
Funds from operations per share - diluted	$	0.70		$	0.20		$	0.71		$	0.68		$	0.71
Funds from operations per share - diluted, excluding certain items 1/	$	0.70		$	0.68		$	0.71		$	0.68		$	0.71
Wholly - owned property information:
In-Service rentable square feet:
Office		19,594			19,556			19,416			19,416			19,565
Industrial		6,463			6,467			6,049			6,299			6,036
Retail		1,337			1,350			1,342			1,343			1,314
Total		27,394			27,373			26,807			27,058			26,915
In-Service occupancy:
Office		89.1	%		90.2	%		90.3	%		90.8	%		90.4	%
Industrial		87.9	%		92.6	%		95.2	%		91.4	%		91.0	%
Retail		93.2	%		94.6	%		93.6	%		93.5	%		92.9	%
Total		89.0	%		91.0	%		91.6	%		91.1	%		90.7	%

1/ Excludes impairments on depreciable assets and preferred stock redemption/repurchase charges.

Highwoods Properties, Inc. i 3/31/09

Corporate Information

Board of Directors

Thomas W. Adler

Gene H. Anderson

Edward J. Fritsch

David J. Hartzell, Ph.D.

Lawrence S. Kaplan

Sherry A. Kellett

L. Glenn Orr Jr.

O. Temple Sloan Jr., Chairman

Corporate Officers

Edward J. Fritsch

President, Chief Executive Officer and Director

Michael E. Harris

Executive Vice President and Chief Operating Officer

Terry L. Stevens

Senior Vice President, Chief Financial Officer

Daniel L. Clemmens

Vice President, Chief Accounting Officer

S. Hugh Esleeck

Treasurer

Peter T. Jardine

Vice President, Corporate Marketing

Carman J. Liuzzo

Vice President, Investments

Art H. McCann

Chief Information Officer

Jeffrey D. Miller

Vice President, General Counsel and Secretary

Kevin E. Penn

Vice President, Strategy

Michael D. Starchville

Vice President, Asset Management

Tabitha N. Zane

Vice President, Investor Relations and Corporate Communications

Research Coverage

Citigroup Global Markets

Michael Bilerman - 212-816-1383

Credit Suisse - North America

Steve Benyik - 212-538-0239

Friedman, Billings, Ramsey & Co., Inc.

Wilkes Graham - 703-312-9737

Green Street Advisors

Cedric Lachance - 949-640-8780

Macquarie Research

Nick Pirsos - 212-231-2457

RW Baird

Chris Lucas - 703-821-5780

Stifel Nicolaus

John Guinee - 443-224-1307

Erin Aslakson - 443-224-1350

Wachovia Securities

Brendan Maiorana - 443-263-6516

Highwoods Properties, Inc. ii 3/31/09

Corporate Information

Divisional Officers

Atlanta/Piedmont Triad

Gene H. Anderson - Senior Vice President

Atlanta, GA

James V. Bacchetta, Vice President

Piedmont Triad, NC

E. F. “Rick” Dehnert, Vice President

Orlando, FL

Steven J. Garrity, Vice President

Tampa, FL

Daniel E. Woodward, Vice President

Raleigh, NC

Thomas “Skip” Hill, Vice President

Richmond, VA

Paul W. Kreckman, Vice President

Nashville/Memphis/Greenville

W. Brian Reames - Senior Vice President

Nashville, TN and Greenville, SC

W. Brian Reames, Senior Vice President

Memphis, TN

Steven L. Guinn, Vice President

Kansas City, MO

Glenn E. Stephenson, 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: 919-431-1529

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 March 31, 2009, the Company owned or had an interest in 382 in-service office, industrial and retail properties encompassing approximately 35.4 million square feet. Highwoods also wholly-owned 580 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, Mississippi, 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 3/31/09

Consolidated Statements of Income

Amounts in thousands, except per share amounts

	Three Months Ended
	03/31/09			12/31/08			09/30/08			06/30/08			03/31/08
Rental and other revenues	$	115,966		$	117,098		$	115,445		$	115,010		$	113,428
Operating expenses:
Rental property and other expenses		41,797			44,129			41,793			41,226			38,574
Depreciation and amortization		33,424			32,861			31,937			31,216			30,748
Impairment of assets held for use		—			32,846			—			—			—
General and administrative		8,315			8,681			8,885			10,766			9,711
Total operating expenses		83,536			118,517			82,615			83,208			79,033
Interest expense:
Contractual		20,579			23,055			22,995			23,345			23,463
Amortization of deferred financing costs		662			678			714			686			638
Financing obligations		735			631			783			764			740
		21,976			24,364			24,492			24,795			24,841
Other income:
Interest and other income		1,007			419			1,017			1,601			795
		1,007			419			1,017			1,601			795
Income/(loss) before disposition of property and condominiums and equity in earnings of unconsolidated affiliates		11,461			(25,364	)		9,355			8,608			10,349
Net gains/(losses) on disposition of property		19			(1,071	)		1,745			107			—
Gains on for sale residential condominiums 1/		347			5,617			—			—			—
Equity in earnings of unconsolidated affiliates		1,300			1,155			1,214			1,520			1,989
Income/(loss) from continuing operations		13,127			(19,663	)		12,314			10,235			12,338
Discontinued operations:
Income from discontinued operations		—			207			273			751			670
Net gains on sales of discontinued operations		73			6,595			3,137			5,027			3,726
		73			6,802			3,410			5,778			4,396
Net income/(loss)		13,200			(12,861	)		15,724			16,013			16,734
Net income attributable to noncontrolling interest in the Operating Partnership		(694	)		967			(812	)		(839	)		(893	)
Net income attributable to noncontrolling interest in consolidated affiliates		(18	)		(1,451	)		(201	)		(191	)		(198	)
Dividends on preferred stock		(1,677	)		(1,677	)		(2,451	)		(2,838	)		(2,838	)
Excess of preferred stock redemption cost over carrying value		—			—			(108	)		—			—
Net income/(loss) available for common stockholders	$	10,811		$	(15,022	)	$	12,152		$	12,145		$	12,805
Earnings per common share - diluted:
Income/(loss) from continuing operations available for common stockholders	$	0.17		$	(0.34	)	$	0.15		$	0.12		$	0.15
Income from discontinued operations available for common stockholders		—			0.10			0.06			0.09			0.07
Net income/(loss) available for common stockholders	$	0.17		$	(0.24	)	$	0.21		$	0.21		$	0.22
Weighted average common shares outstanding—diluted		67,705			63,563			63,228			61,822			61,416
Dividends declared and paid per common share	$	0.425		$	0.425		$	0.425		$	0.425		$	0.425
Net income/(loss) available for common stockholders:
Income/(loss) from continuing operations available for common stockholders	$	10,742		$	(21,415	)	$	8,956		$	6,741		$	8,696
Income from discontinued operations available for common stockholders		69			6,393			3,196			5,404			4,109
Net income/(loss) available for common stockholders	$	10,811		$	(15,022	)	$	12,152		$	12,145		$	12,805

1/ After adjusting for our partner’s share, which is reflected in “Net income attributable to noncontrolling interest in consolidated affiliates”, net gains to the Company were $550.

Highwoods Properties, Inc. 1 3/31/09

Funds from Operations

and Additional Information

Amounts in thousands, except per share amounts

	Three Months Ended
	03/31/09			12/31/08			09/30/08			06/30/08			03/31/08
Funds from operations:
Net income/(loss)	$	13,200		$	(12,861	)	$	15,724		$	16,013		$	16,734
Net income attributable to noncontrolling interest in the Operating Partnership		(694	)		967			(812	)		(839	)		(893	)
Net income attributable to noncontrolling interest in consolidated affiliates		(18	)		(1,451	)		(201	)		(191	)		(198	)
Dividends on preferred stock		(1,677	)		(1,677	)		(2,451	)		(2,838	)		(2,838	)
Excess of preferred stock redemption cost over carrying value		—			—			(108	)		—			—
Net income/(loss) available for common stockholders		10,811			(15,022	)		12,152			12,145			12,805
Add/(deduct):
Depreciation and amortization of real estate assets		32,981			32,388			31,467			30,771			30,191
(Gains) on disposition of depreciable properties		(19	)		(90	)		(18	)		(18	)		—
Noncontrolling interest from the Operating Partnership		694			(967	)		812			839			893
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		3,250			3,285			3,136			3,395			2,935
Discontinued operations:
Depreciation and amortization of real estate assets		—			167			172			158			361
(Gains) on disposition of depreciable properties		(73	)		(6,595	)		(3,137	)		(5,027	)		(3,726	)
Funds from operations	$	47,644		$	13,166		$	44,584		$	42,263		$	43,459
Funds from operations per share—diluted
Net income/(loss) available for common stockholders	$	0.17		$	(0.24	)	$	0.21		$	0.21		$	0.22
Add/(deduct):
Depreciation and amortization of real estate assets		0.48			0.48			0.50			0.50			0.49
(Gains) on disposition of depreciable properties		—			—			—			—			—
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		0.05			0.05			0.05			0.05			0.05
(Gains) on disposition of depreciable properties		—			—			—			—			—
Discontinued operations:
Depreciation and amortization of real estate assets		—			—			—			—			0.01
(Gains) on disposition of depreciable properties		—			(0.10	)		(0.05	)		(0.08	)		(0.06	)
Funds from operations	$	0.70		$	0.19		$	0.71		$	0.68		$	0.71
Weighted average shares outstanding - diluted		67,705			67,568			63,228			61,822			61,416
Additional information: 1/
Funds from operations, excluding certain items 2/	$	47,644		$	45,608		$	44,692		$	42,263		$	43,459
Funds from operations per share, excluding certain items 2/	$	0.70		$	0.68		$	0.71		$	0.68		$	0.71
Straight line rental income	$	(1,534	)
Amortization of lease incentives		298
Depreciation of non-real estate assets		281
Ground lease straight line rent		125
Amortization of stock-based compensation		1,842
Amortization of deferred financing costs		662
Amortization of accumulated other comprehensive loss		(70	)
Harborview non-cash FMV charge		(47	)
Non-incremental revenue generating capital expenditures paid: 3/
Building improvements		(922	)
2nd generation tenant improvements		(5,382	)
2nd generation lease commissions		(2,280	)
Common dividends and unit distributions paid		(28,682	)

1/ Increase or (decrease) to cash flows.

2/ Excludes impairments on depreciable assets and preferred stock redemption/repurchase charges.

3/ Excludes capital expenditures paid for buildings sold prior to March 31, 2009.

Highwoods Properties, Inc. 2 3/31/09

Consolidated Balance Sheets

Dollars in thousands

	03/31/09			12/31/08
Assets:
Real estate assets, at cost:
Land	$	354,629		$	352,872
Buildings and tenant improvements		2,831,001			2,819,844
Development in process		70,808			61,938
Land held for development		98,946			98,946
		3,355,384			3,333,600
Less-accumulated depreciation		(734,944	)		(714,224	)
Net real estate assets		2,620,440			2,619,376
For sale residential condominiums		21,423			24,284
Real estate and other assets, net, held for sale		1,242			1,242
Cash and cash equivalents		7,757			13,757
Restricted cash		2,781			2,258
Accounts receivable, net		16,748			23,687
Notes receivable, net		3,447			3,602
Accrued straight-line rents receivable, net		81,513			79,979
Investment in unconsolidated affiliates		67,677			67,723
Deferred financing and leasing costs, net		71,607			73,216
Prepaid expenses and other assets		36,015			37,046
Total Assets	$	2,930,650		$	2,946,170
Liabilities, Noncontrolling Interest in the Operating Partnership and Equity:
Mortgages and notes payable	$	1,619,276		$	1,604,685
Accounts payable, accrued expenses and other liabilities		121,285			135,609
Financing obligations		34,509			34,174
Total Liabilities		1,775,070			1,774,468
Noncontrolling interest in the Operating Partnership		87,119			111,278
Stockholders’ Equity:
Preferred stock		81,592			81,592
Common stock		638			636
Additional paid-in capital		1,640,174			1,616,093
Distributions in excess of net earnings		(655,435	)		(639,281	)
Accumulated other comprehensive loss		(4,698	)		(4,792	)
Total Stockholders’ Equity		1,062,271			1,054,248
Noncontrolling interest in consolidated affiliates		6,190			6,176
Total Equity		1,068,461			1,060,424
Total Liabilities, Noncontrolling Interest in the Operating Partnership and Equity	$	2,930,650		$	2,946,170

Highwoods Properties, Inc. 3 3/31/09

Components of Net Asset Value

As Released on February 11, 2009 — See Note Below

Dollars in thousands

Note: The purpose of providing the following information at the beginning of each year is to enable readers to derive their own estimate of net asset value. The Company updates this information annually based on management’s assumptions regarding projected current year net operating income as of the date of initial publication (current year being February 11, 2009) and will not be updated to reflect any facts, circumstances or changes in financial or operating assumptions that may occur during the year. This information is not intended to be an asset-by-asset or enterprise valuation.

Consolidated Properties Projected Net Operating Income (NOI) 1/
Office	$	230,671
Retail		28,914
Industrial/Other		20,404
Deduct Partner’s Share of Consolidated JV’s (Office)		(5,529	)
Total Net Operating Income	$	274,460
Highwoods’ Share of Unconsolidated Joint Ventures Projected NOI
Office	$	30,577
Other income
Development, leasing and management fees	$	4,502
Add Other assets:
Development investment at cost	$	204,299
Assets not fairly valued by capitalized NOI valuation method 2/		108,822
Property held for sale at net sales price		1,400
Land held for development at market value		142,802
Cash and cash equivalents		13,757
Highwoods share of unconsolidated JV’s cash and cash equivalents		20,032
Restricted cash		2,258
Accounts receivable, net		23,687
Notes receivable and prepaid expenses		40,648
Deduct partner’s share of Consolidated JV’s other assets		(1,218	)
Other assets total	$	556,487
Deductions:
Total liabilities	$	135,609
Mortgages and notes payable		1,604,685
Deduct partner’s share of Consolidated JV’s liabilities and mortgages		(36,811	)
Market value of debt adjustment 3/		(271,860	)
Preferred stock, at liquidation value		81,592
Highwoods’ share of unconsolidated joint ventures liabilities		259,778
	$	1,772,993
Estimated diluted common shares and common units for 2009 (000’s)		67,639

1/ Projected 2009 NOI excludes straight line income, lease termination fee income, NOI related to completed not stabilized developments, and NOI related to assets undervalued by capitalized NOI method.

2/ Consolidated Properties projected 2009 NOI is adjusted to eliminate the net NOI for properties for which a NOI capitalization approach is not appropriate. For these assets, an alternative methodology has been applied.

3/ In accordance with prior practice, we included an adjustment to mark our debt and bonds to estimated fair value as of December 31,2008.

Highwoods Properties, Inc. 4 3/31/09

Components of Discontinued Operations

Dollars in thousands

	Three Months Ended
	03/31/09		12/31/08		09/30/08		06/30/08		03/31/08
Rental and other revenues	$	2	$	675	$	831	$	1,517	$	1,858
Operating expenses:
Rental property and other expenses		2		309		389		612		836
Depreciation and amortization		—		167		171		158		361
Total operating expenses		2		476		560		770		1,197
Other income		—		8		2		4		9
Income before gains on sales of discontinued operations		—		207		273		751		670
Net gains on sales of discontinued operations		73		6,595		3,137		5,027		3,726
Net income from discontinued operations	$	73	$	6,802	$	3,410	$	5,778	$	4,396

Highwoods Properties, Inc. 5 3/31/09

Capitalization

Dollars, shares, and units in thousands

	3/31/09		12/31/08		9/30/08		6/30/08		3/31/08
Long-Term Debt (see pages 7 & 8):	$	1,619,276	$	1,604,685	$	1,588,954	$	1,732,082	$	1,703,238
Financing Obligations:	$	34,509	$	34,174	$	35,195	$	35,145	$	35,296
Preferred Stock (at liquidation value):
Series A 8 5/8% Perpetual Preferred Stock	$	29,092	$	29,092	$	29,092	$	82,937	$	82,937
Series B 8% Perpetual Preferred Stock		52,500		52,500		52,500		52,500		52,500
Total preferred stock	$	81,592	$	81,592	$	81,592	$	135,437	$	135,437
Common Shares and Units Outstanding:
Common stock outstanding		63,763		63,572		63,545		57,632		57,309
Noncontrolling interest partnership units		4,067		4,067		3,906		3,933		3,951
Total common shares and units outstanding		67,830		67,639		67,451		61,565		61,260
Stock price at period end	$	21.42	$	27.36	$	35.56	$	31.42	$	31.07
Market value of common equity	$	1,452,919	$	1,850,603	$	2,398,558	$	1,934,372	$	1,903,348
Total market capitalization with debt and obligations	$	3,188,296	$	3,571,054	$	4,104,299	$	3,837,036	$	3,777,319

See pages 30 to 35 for information regarding Highwoods’ Joint Ventures.

Highwoods Properties, Inc. 6 3/31/09

Long-Term Debt Summary

Dollars in thousands

	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Balances Outstanding:
Secured:
Conventional fixed rate 1/	$	631,207		$	634,317		$	638,032		$	640,557		$	643,041
Variable rate debt		34,540			20,869			31,954			47,087			26,890
Secured total		665,747			655,186			669,986			687,644			669,931
Unsecured:
Fixed rate bonds and notes		599,029			648,999			648,968			648,938			648,907
Bank term loans		157,500			137,500			137,500			137,500			137,500
Credit facility		197,000			163,000			132,500			258,000			246,900
Unsecured total		953,529			949,499			918,968			1,044,438			1,033,307
Total	$	1,619,276		$	1,604,685		$	1,588,954		$	1,732,082		$	1,703,238
End of Period Weighted Average Interest Rates:
Secured:
Conventional fixed rate		6.61	%		6.61	%		6.62	%		6.61	%		6.62	%
Variable rate debt		1.41	%		1.73	%		3.94	%		4.01	%		4.34	%
Secured total		6.34	%		6.45	%		6.49	%		6.44	%		6.50	%
Unsecured:
Fixed rate bonds		6.40	%		6.53	%		6.53	%		6.53	%		6.53	%
Bank term loans		2.83	%		2.66	%		4.38	%		3.53	%		0
Credit facility		1.34	%		2.39	%		4.02	%		3.43	%		3.65	%
Unsecured total		4.77	%		5.26	%		5.85	%		5.37	%		5.47	%
Average		5.41	%		5.75	%		6.12	%		5.79	%		5.88	%
Maturity Schedule:
				Future Maturities of Debt									Average Interest Rate
Year				Secured Debt 2/			Unsecured Debt			Total Debt 2/
2009				$	116,807		$	—		$	116,807			7.63	%
2010					30,909			197,000			227,909			1.34	%
2011					—			137,500			137,500			2.68	%
2012					211,767			20,000			231,767			6.68	%
2013					261,604			—			261,604			5.90	%
2014					36,431			—			36,431			5.79	%
2015					—			—			—			—
2016					8,229			—			8,229			7.67	%
2017					—			399,029			399,029			5.85	%
2018					—			200,000			200,000			7.50	%
Total maturities				$	665,747		$	953,529		$	1,619,276			5.41	%

Weighted average maturity = 4.7 years

1/ Includes a $22.2 million loan related to a consolidated 20% owned joint venture (Harborview) and $36.4 million in loans at March 31, 2009 related to a consolidated 50% joint venture (Markel).

2/ All periods exclude annual principal amortization.

Highwoods Properties, Inc. 7 3/31/09

Long-Term Debt Detail

Dollars in thousands

Secured Loans

Lender	Rate		Maturity Date	Loan Balance 3/31/09		Undepreciated Book Value of Assets Secured
Northwestern Mutual	7.05	%	Jan-12	$	189,535	$	300,704
Northwestern Mutual	6.03	%	Mar-13		132,601		183,369
Massachusetts Mutual Life Ins. Co. 1/	5.68	%	Dec-13		117,904		213,686
Monumental Life Ins. Co. 2/	7.77	%	Nov-09		77,389		187,537
PNC/Regions/Union Bank of California/U.S. Bank 3/	1.35	%	Dec-10		30,909		43,514
Monumental Life Ins. Co. 2/	7.87	%	Nov-09		30,440
Metropolitan Life Ins. Co. 4/	6.06	%	Oct-12		22,233		39,107
Principal Life Insurance Company 5/	5.79	%	Jan-14		11,168		14,408
Principal Life Insurance Company 5/	5.79	%	Jan-14		11,168		18,781
Massachusetts Mutual Life Ins. Co. 1/	6.48	%	Dec-13		10,471
Principal Life Insurance Company 5/	5.74	%	Jan-14		8,805		14,174
Union Realty Co.	7.65	%	Feb-16		8,229		16,010
Principal Life Insurance Company 5/	5.89	%	Jan-14		5,290		7,514
Royal Bank of Canada 3/	1.90	%	Dec-09		3,631		21,423
Lutheran Brotherhood	6.75	%	Apr-09		3,525		8,015
Security Life of Denver	8.85	%	Aug-09		1,822		9,687
American United Life	9.00	%	Jun-13		627		3,325
	6.34	%			665,747	$	1,081,254
Unsecured Bonds
Bonds	5.85	%	Mar-17		399,029
Bonds	7.50	%	Apr-18		200,000
	6.40	%			599,029
Unsecured Loans
Credit facility 3/	1.34	%	May-10		197,000
Bank term loan 3/	2.68	%	Feb-11		137,500
BB&T term loan 3/	3.90	%	Mar-12		20,000
	2.00	%			354,500
Total Debt	5.41	%		$	1,619,276

Note: Credit facility maturity date includes one-year extension option which management exercised on February 5, 2009 and which becomes effective on May 1, 2009.

Revolving Credit Facility

Name of Lender	Total Commitment		Amount Outstanding at 3/31/09		Unfunded Commitment at 3/31/09
Bank of America, N.A.	$	50,000	$	21,889	$	28,111
Branch Banking and Trust Co.		50,000		21,889		28,111
Wachovia Bank, N.A. 6/		50,000		21,889		28,111
Wells Fargo Bank, N.A.		50,000		21,889		28,111
Emigrant Bank		35,000		15,323		19,677
Eurohypo AG, New York Branch		35,000		15,323		19,677
PNC Bank, N.A.		30,000		13,133		16,867
Regions Bank		30,000		13,133		16,867
Comerica Bank		25,000		10,944		14,056
RBC Bank		25,000		10,944		14,056
Union Bank of California, N.A.		25,000		10,944		14,056
US Bank		20,000		8,756		11,244
First Horizon Bank		15,000		6,567		8,433
Chevy Chase Bank		10,000		4,377		5,623
	$	450,000	$	197,000	$	253,000

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

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

3/ Floating rate loans based on one month libor.

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

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

6/ Wells Fargo acquired Wachovia effective December 31, 2008.

Highwoods Properties, Inc. 8 3/31/09

Portfolio Summary - Wholly-Owned Properties Only 1/

(Rentable Square Feet)

	3/31/09		12/31/08		9/30/08		6/30/08		3/31/08
Office Industrial & Retail
In-Service:
Office 2/	19,594,000		19,556,000		19,416,000		19,416,000		19,565,000
Industrial	6,463,000		6,467,000		6,049,000		6,299,000		6,036,000
Retail 3/	1,337,000		1,350,000		1,342,000		1,343,000		1,314,000
Total 4/	27,394,000		27,373,000		26,807,000		27,058,000		26,915,000
Development Completed - Not Stabilized:
Office 2/	665,000		665,000		873,000		428,000		524,000
Industrial	200,000		—		418,000		418,000		681,000
Retail	—		—		—		—		—
Total	865,000		665,000		1,291,000		846,000		1,205,000
Development - In Process:
Office 2/	358,000		358,000		358,000		803,000		717,000
Industrial	—		200,000		200,000		200,000		200,000
Retail	—		—		—		—		—
Total	358,000		558,000		558,000		1,003,000		917,000
Total:
Office 2/	20,617,000		20,579,000		20,647,000		20,647,000		20,806,000
Industrial	6,663,000		6,667,000		6,667,000		6,917,000		6,917,000
Retail 3/	1,337,000		1,350,000		1,342,000		1,343,000		1,314,000
Total 4/	28,617,000		28,596,000		28,656,000		28,907,000		29,037,000
Same Property
Office 2/	18,792,000		18,792,000		18,792,000		18,792,000		18,792,000
Industrial	5,782,000		5,782,000		5,782,000		5,782,000		5,782,000
Retail	1,307,000		1,307,000		1,307,000		1,307,000		1,307,000
Total	25,881,000		25,881,000		25,881,000		25,881,000		25,881,000
Percent Leased/Pre-Leased:
In-Service:
Office	89.1	%	90.2	%	90.3	%	90.8	%	90.4	%
Industrial	87.9	%	92.6	%	95.2	%	91.4	%	91.0	%
Retail	93.2	%	94.6	%	93.6	%	93.5	%	92.9	%
Total	89.0	%	91.0	%	91.6	%	91.1	%	90.7	%
Development Completed - Not Stabilized:
Office	64.2	%	64.2	%	69.4	%	73.6	%	67.4	%
Industrial	50.0	%	—		91.0	%	72.0	%	78.2	%
Retail	—		—		—		—		—
Total	60.9	%	64.2	%	76.4	%	72.8	%	73.5	%
Development - In Process:
Office	65.7	%	65.7	%	65.7	%	63.5	%	65.7	%
Industrial	—		50.0	%	50.0	%	50.0	%	50.0	%
Retail	—		—		—		—		—
Total	65.7	%	60.1	%	60.1	%	60.8	%	62.3	%
Same Property
Office	89.2	%	90.3	%	90.6	%	91.0	%	90.7	%
Industrial	87.2	%	93.0	%	95.6	%	91.3	%	90.7	%
Retail	93.1	%	95.3	%	94.6	%	94.5	%	94.1	%
Total	89.0	%	91.2	%	91.9	%	91.2	%	90.9	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

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

3/ Excludes 426,000 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. 9 3/31/09

Portfolio Summary

(Continued)

As of March 31, 2009

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

Market	Rentable Square Feet		Occupancy		Percentage of Annualized Cash Revenue 2/
					Office		Industrial		Retail		Total
Raleigh 3/	3,711,000		85.5	%	15.6	%	—		—		15.6	%
Nashville	2,997,000		95.2	%	14.3	%	—		—		14.3	%
Atlanta	5,552,000		91.9	%	10.2	%	3.9	%	—		14.1	%
Tampa	2,658,000		88.7	%	12.9	%	—		—		12.9	%
Kansas City	1,936,000	4/	90.8	%	3.4	%	—		9.3	%	12.7	%
Piedmont Triad 5/	5,526,000		81.8	%	6.1	%	3.1	%	0.2	%	9.4	%
Richmond	2,228,000		91.3	%	8.9	%	—		—		8.9	%
Memphis	1,472,000		92.5	%	6.3	%	—		—		6.3	%
Greenville	897,000		93.8	%	3.5	%	—		—		3.5	%
Orlando	317,000		97.4	%	1.7	%	—		—		1.7	%
Other	100,000		84.3	%	0.6	%	—		—		0.6	%
Total	27,394,000		89.0	%	83.5	%	7.0	%	9.5	%	100.0	%

Summary by Location, Including Joint Venture Properties:

Market	Rentable Square Feet		Occupancy		Percentage of Annualized Cash Revenue 2/ 6/
					Office		Industrial		Retail		Multi-Family		Total
Raleigh	4,525,000		86.5	%	14.6	%	—		—		—		14.6	%
Atlanta	6,387,000		90.1	%	10.3	%	3.4	%	—		—		13.7	%
Nashville	2,997,000		95.2	%	12.6	%	—		—		—		12.6	%
Kansas City	2,655,000	4/	89.7	%	4.0	%	0.0	%	8.2	%	—		12.2	%
Tampa	2,863,000		89.1	%	11.6	%	—		—		—		11.6	%
Piedmont Triad	5,890,000		79.4	%	5.6	%	2.7	%	0.2	%	—		8.5	%
Richmond	2,641,000		92.6	%	8.5	%	—		—		—		8.5	%
Memphis	1,472,000		92.5	%	5.6	%	—		—		—		5.6	%
Orlando	2,169,000		88.9	%	4.8	%	—		—		—		4.8	%
Des Moines	2,505,000		87.1	%	3.1	%	0.5	%	0.1	%	0.4	%	4.1	%
Greenville	897,000		93.8	%	3.1	%	—		—		—		3.1	%
Other	210,000		92.5	%	0.6	%	—		—		—		0.6	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%
Total	35,359,000		88.3	%	84.5	%	6.6	%	8.5	%	0.4	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Annualized Cash Revenue is March, 2009 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 426,000 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 Cash Revenue, see page 33.

Highwoods Properties, Inc. 10 3/31/09

Portfolio Summary - Wholly-Owned Properties Only

(Continued)

As of March 31, 2009

	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	3,711,000	85.5	%	18.7	%	—	—		—
Nashville	2,997,000	95.2	%	17.1	%	—	—		—
Tampa	2,658,000	88.7	%	15.5	%	—	—		—
Atlanta	2,470,000	90.4	%	12.2	%	3,082,000	93.1	%	55.9	%
Richmond	2,228,000	91.3	%	10.7	%	—	—		—
Memphis	1,472,000	92.5	%	7.5	%	—	—		—
Piedmont Triad	2,105,000	79.0	%	7.3	%	3,381,000	83.3	%	44.1	%
Greenville	897,000	93.8	%	4.2	%	—	—		—
Kansas City	639,000	86.3	%	4.1	%	—	—		—
Orlando	317,000	97.4	%	2.0	%	—	—		—
Other	100,000	84.3	%	0.7	%	—	—		—
	19,594,000	89.1	%	100.0	%	6,463,000	87.9	%	100.0	%

	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Cash Revenue 2/
Kansas City 3/	1,297,000	93.0	%	97.4	%
Piedmont Triad	40,000	100.0	%	2.6	%
	1,337,000	93.2	%	100.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Annualized Cash Revenue is March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/ Excludes 426,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

Highwoods Properties, Inc. 11 3/31/09

Occupancy Trends - Office, Industrial and Retail Properties 1/

Market	Measurement	3/31/09		12/31/08		9/30/08		6/30/08		3/31/08
Atlanta	Rentable Square Feet	5,552,000		5,552,000		5,552,000		5,552,000		5,289,000
	Occupancy	91.9	%	93.4	%	93.2	%	92.0	%	91.6	%
	Current Properties 2/	91.5	%	93.6	%	93.5	%	92.2	%	91.6	%
Greenville	Rentable Square Feet	897,000		897,000		897,000		897,000		897,000
	Occupancy	93.8	%	94.4	%	94.4	%	91.4	%	86.4	%
	Current Properties 2/	93.8	%	94.4	%	94.4	%	91.4	%	86.4	%
Kansas City 3/	Rentable Square Feet	1,936,000		1,953,000		1,955,000		1,956,000		2,229,000
	Occupancy	90.8	%	92.3	%	91.6	%	91.3	%	88.8	%
	Current Properties 2/	90.8	%	93.0	%	92.3	%	92.1	%	91.5	%
Memphis	Rentable Square Feet	1,472,000		1,473,000		1,337,000		1,337,000		1,276,000
	Occupancy	92.5	%	92.5	%	93.0	%	93.5	%	93.8	%
	Current Properties 2/	92.4	%	92.4	%	92.6	%	93.2	%	93.8	%
Nashville	Rentable Square Feet	2,997,000		2,988,000		3,181,000		3,181,000		3,184,000
	Occupancy	95.2	%	95.0	%	94.8	%	94.9	%	95.0	%
	Current Properties 2/	95.2	%	94.7	%	95.4	%	95.4	%	95.6	%
Orlando	Rentable Square Feet	317,000		317,000		317,000		317,000		317,000
	Occupancy	97.4	%	98.4	%	98.4	%	98.4	%	96.9	%
	Current Properties 2/	97.4	%	98.4	%	98.4	%	98.4	%	96.9	%
Piedmont Triad	Rentable Square Feet	5,526,000		5,526,000		5,108,000		5,358,000		5,358,000
	Occupancy	81.8	%	86.1	%	88.4	%	85.9	%	85.2	%
	Current Properties 2/	81.0	%	85.7	%	88.4	%	85.2	%	84.5	%
Raleigh	Rentable Square Feet	3,711,000		3,711,000		3,711,000		3,711,000		3,712,000
	Occupancy	85.5	%	88.6	%	89.9	%	89.7	%	90.3	%
	Current Properties 2/	85.5	%	88.6	%	89.9	%	89.7	%	90.3	%
Richmond	Rentable Square Feet	2,228,000		2,229,000		2,230,000		2,230,000		2,135,000
	Occupancy	91.3	%	90.8	%	90.0	%	92.1	%	93.5	%
	Current Properties 2/	92.1	%	91.6	%	91.5	%	93.6	%	93.6	%
Tampa	Rentable Square Feet	2,658,000		2,627,000		2,419,000		2,419,000		2,418,000
	Occupancy	88.7	%	91.6	%	92.2	%	94.5	%	94.7	%
	Current Properties 2/	89.2	%	92.3	%	92.2	%	94.4	%	94.6	%
Total 4/	Rentable Square Feet	27,294,000		27,273,000		26,707,000		26,958,000		26,815,000
	Occupancy	89.0	%	91.0	%	91.6	%	91.1	%	90.7	%
	Current Properties 2/	89.0	%	91.2	%	91.8	%	91.2	%	90.8	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

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

3/ Excludes 426,000 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. 12 3/31/09

Leasing Statistics

Office Portfolio 1/

	Three Months Ended
	3/31/09 2/			12/31/08 3/			9/30/08 4/			6/30/08 5/			3/31/08 6/			Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		104			129			96			113			126			114
Rentable square footage leased		546,833			868,233			471,486			997,600			602,049			697,240
Square footage of Renewal Deals		430,986			703,690			330,751			913,530			385,756			552,943
Renewed square footage (% of total)		78.8	%		81.0	%		70.2	%		91.6	%		64.1	%		79.3	%
New Leases square footage (% of total)		21.2	%		19.0	%		29.8	%		8.4	%		35.9	%		20.7	%
Weighted average per rentable square foot over the lease term:
Base rent	$	19.52		$	21.21		$	20.84		$	22.47		$	19.82		$	20.77
Tenant improvements		(2.12	)		(1.21	)		(1.35	)		(1.16	)		(1.10	)		(1.39	)
Leasing commissions 7/		(0.47	)		(0.60	)		(0.51	)		(0.63	)		(0.44	)		(0.53	)
Rent concessions		(0.40	)		(0.35	)		(0.22	)		(0.28	)		(0.13	)		(0.28	)
Effective rent		16.53			19.05			18.76			20.40			18.15			18.57
Expense stop		(6.83	)		(6.07	)		(6.64	)		(7.12	)		(5.90	)		(6.51	)
Equivalent effective net rent	$	9.70		$	12.98		$	12.12		$	13.28		$	12.25		$	12.06
Weighted average term in years		4.1			4.7			4.5			3.2			4.0			4.1
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	4,619,505		$	5,973,249		$	3,041,354		$	5,224,995		$	3,504,078		$	4,472,636
Rentable square feet		546,833			868,233			471,486			997,600			602,049			697,240
Per rentable square foot	$	8.45		$	6.88		$	6.45		$	5.24		$	5.82		$	6.41
Leasing Commissions:
Total dollars committed under signed leases 7/	$	1,002,735		$	2,463,135		$	970,896		$	2,300,840		$	1,190,054		$	1,585,532
Rentable square feet		546,833			868,233			471,486			997,600			602,049			697,240
Per rentable square foot	$	1.83		$	2.84		$	2.06		$	2.31		$	1.98		$	2.27
Total:
Total dollars committed under signed leases	$	5,622,240		$	8,436,384		$	4,012,250		$	7,525,835		$	4,694,132		$	6,058,168
Rentable square feet		546,833			868,233			471,486			997,600			602,049			697,240
Per rentable square foot	$	10.28		$	9.72		$	8.51		$	7.54		$	7.80		$	8.69

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Includes 91K square feet of leases that start in 2011 or later.

3/ Includes 38K square feet of leases that start in 2011 or later.

4/ Includes 62K square feet of leases that start in 2010 or later.

5/ Includes 346K square feet of leases that start in 2010 or later.

6/ Includes 84K square feet of leases that start in 2010 or later.

7/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 13 3/31/09

Leasing Statistics

Industrial Portfolio

	Three Months Ended
	3/31/09 1/			12/31/08			9/30/08 2/			6/30/08			3/31/08			Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		14			14			14			14			7			13
Rentable square footage leased		292,938			297,789			358,284			367,684			158,324			295,004
Square footage of Renewal Deals		128,542			249,927			294,376			155,126			150,170			195,628
Renewed square footage (% of total)		43.9	%		83.9	%		82.2	%		42.2	%		94.8	%		66.3	%
New Leases square footage (% of total)		56.1	%		16.1	%		17.8	%		57.8	%		5.2	%		33.7	%
Weighted average per rentable square foot over the lease term:
Base rent	$	4.59		$	4.37		$	4.50		$	3.85		$	5.95		$	4.65
Tenant improvements		(0.27	)		(0.26	)		(0.45	)		(0.18	)		(0.07	)		(0.25	)
Leasing commissions 3/		(0.07	)		(0.08	)		(0.09	)		(0.10	)		0.00			(0.07	)
Rent concessions		(0.17	)		(0.01	)		(0.01	)		0.00			0.00			(0.04	)
Effective rent		4.08			4.02			3.95			3.57			5.88			4.29
Expense stop		(0.35	)		(0.08	)		(0.05	)		(0.19	)		(0.10	)		(0.15	)
Equivalent effective net rent	$	3.73		$	3.94		$	3.90		$	3.38		$	5.78		$	4.14
Weighted average term in years		4.1			3.7			3.0			1.8			3.3			3.2
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	506,567		$	420,373		$	385,175		$	269,635		$	50,537		$	326,457
Rentable square feet		292,938			297,789			358,284			367,684			158,324			295,004
Per rentable square foot	$	1.73		$	1.41		$	1.08		$	0.73		$	0.32		$	1.11
Leasing Commissions:
Total dollars committed under signed leases 3/	$	106,339		$	71,111		$	142,626		$	62,837		$	1,918		$	76,966
Rentable square feet		292,938			297,789			358,284			367,684			158,324			295,004
Per rentable square foot	$	0.36		$	0.24		$	0.40		$	0.17		$	0.01		$	0.26
Total:
Total dollars committed under signed leases	$	612,906		$	491,484		$	527,801		$	332,471		$	52,455		$	403,424
Rentable square feet		292,938			297,789			358,284			367,684			158,324			295,004
Per rentable square foot	$	2.09		$	1.65		$	1.47		$	0.90		$	0.33		$	1.37

1/ Includes 56K square feet of leases that start in 2011 or later.

2/ Includes 256K square feet of leases that start in 2011 or later.

3/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 14 3/31/09

Leasing Statistics

Retail Portfolio

	Three Months Ended
	3/31/09			12/31/08 1/			9/30/08			6/30/08 2/			3/31/08			Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		5			13			3			6			7			7
Rentable square footage leased		11,279			57,245			7,719			15,839			30,942			24,605
Square footage of Renewal Deals		4,970			53,385			2,898			14,162			18,826			18,848
Renewed square footage (% of total)		44.1	%		93.3	%		37.5	%		89.4	%		60.8	%		76.6	%
New Leases square footage (% of total)		55.9	%		6.7	%		62.5	%		10.6	%		39.2	%		23.4	%
Weighted average per rentable square foot over the lease term:
Base rent	$	20.47		$	18.46		$	25.81		$	27.61		$	31.80		$	24.83
Tenant improvements		(1.64	)		(0.65	)		0.00			(1.52	)		(0.40	)		(0.84	)
Leasing commissions 3/		0.00			(0.04	)		(0.15	)		(0.67	)		(0.54	)		(0.28	)
Rent concessions		0.00			(0.05	)		0.00			0.00			(1.47	)		(0.30	)
Effective rent		18.83			17.72			25.66			25.42			29.39			23.41
Expense stop		(0.64	)		0.00			0.00			0.00			0.00			(0.13	)
Equivalent effective net rent	$	18.19		$	17.72		$	25.66		$	25.42		$	29.39		$	23.28
Weighted average term in years		6.1			7.6			8.6			7.7			8.6			7.7
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	158,227		$	344,272		$	—		$	177,176		$	161,500		$	168,235
Rentable square feet		11,279			57,245			7,719			15,839			30,942			24,605
Per rentable square foot	$	14.03		$	6.01		$	—		$	11.19		$	5.22		$	6.84
Leasing Commissions:
Total dollars committed under signed leases 3/	$	1,000		$	20,072		$	1,165		$	5,794		$	123,220		$	30,250
Rentable square feet		11,279			57,245			7,719			15,839			30,942			24,605
Per rentable square foot	$	0.09		$	0.35		$	0.15		$	0.37		$	3.98		$	1.23
Total:
Total dollars committed under signed leases	$	159,227		$	364,344		$	1,165		$	182,970		$	284,720		$	198,485
Rentable square feet		11,279			57,245			7,719			15,839			30,942			24,605
Per rentable square foot	$	14.12		$	6.36		$	0.15		$	11.55		$	9.20		$	8.07

1/ Includes 5K square feet of leases that start in 2011 or later.

2/ Includes 3K square feet of leases that start in 2011 or later.

3/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 15 3/31/09

Leasing Statistics by Market

For the Three Months Ended As of 3/31/09

Office Portfolio 1/

Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Nashville	139,332	4.0	$	19.90	$	6.91	$	2.32
Piedmont Triad	109,776	4.6		17.14		8.41		0.34
Tampa	75,366	4.4		21.72		18.62		3.23
Memphis	74,029	3.2		18.88		2.88		0.46
Richmond	55,793	6.2		16.85		13.61		3.40
Atlanta	40,511	2.2		18.85		0.96		0.63
Raleigh	38,024	2.9		18.93		5.11		0.30
Kansas City	8,601	5.5		24.61		8.63		7.49
Orlando	5,401	4.5		24.29		9.26		4.55
	546,833	4.1	$	19.12	$	8.45	$	1.83
Industrial Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Piedmont Triad	164,274	5.4	$	3.56	$	2.51	$	0.39
Atlanta	128,664	2.3		5.53		0.73		0.31
	292,938	4.1	$	4.42	$	1.73	$	0.36
Retail Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Kansas City	11,279	6.1	$	20.47	$	14.03	$	0.09
	11,279	6.1	$	20.47	$	14.03	$	0.09

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Lease commissions by market per square foot excludes capitalized internal leasing costs.

3/ The amount of capitalized internal leasing cost not allocated to individual deals or product types was $412K.

Highwoods Properties, Inc. 16 3/31/09

Rental Rate Comparisons by Market

For the Three Months Ended As of 3/31/09

Office Portfolio 1/

Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Nashville	139,332	$	19.90	$	18.30	8.7	%
Piedmont Triad	109,776		17.14		16.12	6.3	%
Tampa	75,366		21.72		19.87	9.3	%
Memphis	74,029		18.88		18.62	1.4	%
Richmond	55,793		16.85		15.87	6.2	%
Atlanta	40,511		18.85		18.24	3.3	%
Raleigh	38,024		18.93		17.37	9.0	%
Kansas City	8,601		24.61		23.42	5.1	%
Orlando	5,401		24.29		24.08	0.9	%
GAAP Rent Growth	546,833	$	19.12	$	17.93	6.6	%
Cash Rent Growth	546,833	$	18.89	$	19.10	-1.1	%
Industrial Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Piedmont Triad	164,274	$	3.56	$	4.75	-25.1	%
Atlanta	128,664		5.53		5.28	4.7	%
GAAP Rent Growth	292,938	$	4.42	$	4.98	-11.2	%
Cash Rent Growth	292,938	$	4.74	$	5.34	-11.3	%
Retail Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Kansas City	11,279	$	20.47	$	23.89	-14.3	%
GAAP Rent Growth	11,279	$	20.47	$	23.89	-14.3	%
Cash Rent Growth	11,279	$	18.92	$	25.08	-24.6	%

Average Cash Rental Rates for All In Place Leases at: 1/ 3/

Type	3/31/09			3/31/08			3/31/07			3/31/06			3/31/05
Office	$	20.18		$	19.80		$	18.99		$	18.04		$	17.53
Industrial		5.20			5.27			5.11			5.08			4.73
Retail 2/		33.16			32.64			30.04			27.98			27.01
Weighted average rate	$	17.35		$	16.93		$	16.19		$	15.45		$	15.08
Annual % growth rate		2.5	%		4.6	%		4.8	%		2.5	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Excludes percentage rent.

3/ Average cash rental rates represent March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12 and divided by the related leased square feet.

Highwoods Properties, Inc. 17 3/31/09

Lease Expirations

March 31, 2009

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/
2009 /3	1,292,801	7.2	%	$	26,404	$	20.42	7.3	%
2010	1,996,866	11.2	%		41,705		20.89	11.6	%
2011	2,638,391	14.7	%		52,943		20.07	14.7	%
2012	2,499,384	14.0	%		52,999		21.20	14.6	%
2013	2,464,341	13.8	%		51,020		20.70	14.1	%
2014	1,899,818	10.6	%		33,896		17.84	9.4	%
2015	1,303,917	7.3	%		26,648		20.44	7.4	%
2016	901,071	5.0	%		16,681		18.51	4.6	%
2017	982,635	5.5	%		19,702		20.05	5.5	%
2018	547,495	3.1	%		12,508		22.85	3.5	%
2019 and thereafter	1,362,416	7.6	%		26,507		19.46	7.3	%
	17,889,135	100.0	%	$	361,013	$	20.18	100.0	%
Industrial:
2009 /4	847,746	14.7	%	$	4,203	$	4.96	14.0	%
2010	812,938	14.1	%		4,370		5.38	14.5	%
2011	942,819	16.2	%		5,407		5.73	17.9	%
2012	473,669	8.2	%		2,532		5.35	8.4	%
2013	638,840	11.0	%		3,924		6.14	13.0	%
2014	647,954	11.2	%		2,861		4.42	9.5	%
2015	282,608	4.9	%		1,273		4.50	4.2	%
2016	264,597	4.6	%		1,070		4.04	3.6	%
2017	22,000	0.4	%		107		4.86	0.4	%
2018	71,884	1.2	%		245		3.41	0.8	%
2019 and thereafter	778,910	13.5	%		4,112		5.28	13.7	%
	5,783,965	100.0	%	$	30,104	$	5.20	100.0	%

1/ Annualized Cash Revenue is March, 2009 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 50% or less owned joint ventures properties that are consolidated under GAAP.

3/ Includes 69,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

4/ Includes 155,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue.

Note: 2009 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. 18 3/31/09

Lease Expirations

March 31, 2009

(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:
2009 2/	133,062	10.7	%	$	3,784	$	28.44	9.2	%
2010	96,492	7.7	%		3,861		40.01	9.3	%
2011	52,456	4.2	%		1,997		38.07	4.8	%
2012	165,056	13.2	%		5,410		32.78	13.1	%
2013	77,396	6.2	%		3,022		39.05	7.3	%
2014	106,153	8.5	%		2,962		27.90	7.2	%
2015	147,049	11.8	%		5,125		34.85	12.4	%
2016	70,046	5.6	%		2,904		41.46	7.0	%
2017	100,530	8.1	%		2,488		24.75	6.0	%
2018	67,786	5.4	%		2,220		32.75	5.4	%
2019 and thereafter	230,815	18.6	%		7,567		32.78	18.3	%
	1,246,841	100.0	%	$	41,340	$	33.16	100.0	%
Total:
2009 3/ 4/	2,273,609	9.1	%	$	34,391	$	15.13	8.0	%
2010	2,906,296	11.7	%		49,936		17.18	11.5	%
2011	3,633,666	14.5	%		60,347		16.61	14.0	%
2012	3,138,109	12.6	%		60,941		19.42	14.0	%
2013	3,180,577	12.8	%		57,966		18.22	13.4	%
2014	2,653,925	10.6	%		39,719		14.97	9.2	%
2015	1,733,574	7.0	%		33,046		19.06	7.6	%
2016	1,235,714	5.0	%		20,655		16.72	4.8	%
2017	1,105,165	4.4	%		22,297		20.18	5.2	%
2018	687,165	2.8	%		14,973		21.79	3.5	%
2019 and thereafter	2,372,141	9.5	%		38,186		16.10	8.8	%
	24,919,941	100.0	%	$	432,457	$	17.35	100.0	%

1/ Annualized Cash Revenue is March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/ Includes 33,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue.

3/ Includes 257,000 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 relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

Note: 2009 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. 19 3/31/09

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands

		Three Months Ended												Total
		6/30/09 2/			9/30/09			12/31/09			3/31/10
Atlanta	RSF		91,885			156,350			14,915			36,056			299,206
	% of Total Office RSF		0.5	%		0.9	%		0.1	%		0.2	%		1.7	%
	Annualized Cash Revenue 3/	$	1,138		$	2,863		$	274		$	733		$	5,008
	% of Total Office Annl Cash Rev		0.3	%		0.8	%		0.1	%		0.2	%		1.4	%
Greenville	RSF		43,451			0			10,989			34,951			89,391
	% of Total Office RSF		0.2	%		0.0	%		0.1	%		0.2	%		0.5	%
	Annualized Cash Revenue 3/	$	843		$	—		$	205		$	630		$	1,678
	% of Total Office Annl Cash Rev		0.2	%		0.0	%		0.1	%		0.2	%		0.5	%
Kansas City	RSF		2,155			9,499			9,987			9,913			31,554
	% of Total Office RSF		0.0	%		0.1	%		0.1	%		0.1	%		0.2	%
	Annualized Cash Revenue 3/	$	87		$	223		$	244		$	224		$	778
	% of Total Office Annl Cash Rev		0.0	%		0.1	%		0.1	%		0.1	%		0.2	%
Memphis	RSF		16,449			35,252			71,222			59,876			182,799
	% of Total Office RSF		0.1	%		0.2	%		0.4	%		0.3	%		1.0	%
	Annualized Cash Revenue 3/	$	344		$	683		$	1,438		$	1,310		$	3,775
	% of Total Office Annl Cash Rev		0.1	%		0.2	%		0.4	%		0.4	%		1.0	%
Nashville	RSF		27,967			156,895			80,671			62,646			328,179
	% of Total Office RSF		0.2	%		0.9	%		0.5	%		0.4	%		1.8	%
	Annualized Cash Revenue 3/	$	619		$	3,702		$	1,633		$	1,395		$	7,349
	% of Total Office Annl Cash Rev		0.2	%		1.0	%		0.5	%		0.4	%		2.0	%
Orlando	RSF		6,788			1,232			4,733			2,779			15,532
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue 3/	$	186		$	26		$	125		$	76		$	413
	% of Total Office Annl Cash Rev		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Piedmont Triad	RSF		36,186			57,906			7,329			28,820			130,241
	% of Total Office RSF		0.2	%		0.3	%		0.0	%		0.2	%		0.7	%
	Annualized Cash Revenue 3/	$	586		$	895		$	125		$	466		$	2,072
	% of Total Office Annl Cash Rev		0.2	%		0.2	%		0.0	%		0.1	%		0.6	%
Raleigh	RSF		67,596			64,138			101,236			157,850			390,820
	% of Total Office RSF		0.3	%		0.4	%		0.6	%		0.9	%		2.1	%
	Annualized Cash Revenue 3/	$	1,538		$	1,316		$	2,371		$	2,669		$	7,894
	% of Total Office Annl Cash Rev		0.4	%		0.4	%		0.7	%		0.7	%		2.2	%
Richmond	RSF		38,016			52,685			29,549			55,759			176,009
	% of Total Office RSF		0.2	%		0.3	%		0.2	%		0.3	%		1.0	%
	Annualized Cash Revenue 3/	$	1,016		$	902		$	605		$	1,165		$	3,688
	% of Total Office Annl Cash Rev		0.3	%		0.2	%		0.2	%		0.3	%		1.0	%
Tampa	RSF		8,311			725			81,899			51,870			142,805
	% of Total Office RSF		0.0	%		0.0	%		0.5	%		0.3	%		0.8	%
	Annualized Cash Revenue 3/	$	238		$	21		$	2,002		$	1,304		$	3,565
	% of Total Office Annl Cash Rev		0.1	%		0.0	%		0.6	%		0.4	%		1.0	%
Other	RSF		6,166			619			0			1,289			8,074
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue 3/	$	146		$	11		$	—		$	37		$	194
	% of Total Office Annl Cash Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%
Total	RSF		344,970			535,301			412,530			501,809			1,794,610
	% of Total Office RSF		1.9	%		3.0	%		2.3	%		2.8	%		10.0	%
	Annualized Cash Revenue 3/	$	6,741		$	10,642		$	9,022		$	10,009		$	36,414
	% of Total Office Annl Cash Rev		1.9	%		2.9	%		2.5	%		2.8	%		10.1	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Includes 69,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

3/ Annualized Cash Revenue is March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 20 3/31/09

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

		Three Months Ended												Total
		6/30/09 1/			9/30/09			12/31/09			3/31/10
Atlanta	RSF		64,591			108,939			40,617			62,000			276,147
	% of Total Industrial RSF		1.1	%		1.9	%		0.7	%		1.1	%		4.8	%
	Annualized Cash Revenue 2/	$	384		$	953		$	257		$	335		$	1,929
	% of Total Industrial Annl Cash Rev		1.3	%		3.2	%		0.9	%		1.1	%		6.5	%
Piedmont Triad	RSF		595,170			5,544			32,885			303,480			937,079
	% of Total Industrial RSF		10.3	%		0.1	%		0.6	%		5.2	%		16.2	%
	Annualized Cash Revenue 2/	$	2,230		$	52		$	328		$	1,280		$	3,890
	% of Total Industrial Annl Cash Rev		7.4	%		0.2	%		1.1	%		4.3	%		12.9	%
Total	RSF		659,761			114,483			73,502			365,480			1,213,226
	% of Total Industrial RSF		11.4	%		2.0	%		1.3	%		6.3	%		21.0	%
	Annualized Cash Revenue 2/	$	2,614		$	1,005		$	585		$	1,615		$	5,819
	% of Total Industrial Annl Cash Rev		8.7	%		3.3	%		1.9	%		5.4	%		19.4	%

1/ Includes 155,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue.

2/ Annualized Cash Revenue is March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 21 3/31/09

Office Lease Expirations by Market by Year 1/

Dollars in thousands

			2009 2/			2010			2011			2012			Thereafter
Atlanta	RSF			263,150			109,250			285,694			346,775			1,229,100
	% of Total Office RSF			1.5	%		0.6	%		1.6	%		1.9	%		6.9	%
	Annualized Cash Revenue	3/	$	4,275		$	2,153		$	6,331		$	7,624		$	23,540
	% of Total Office Annl Cash Rev			1.2	%		0.6	%		1.8	%		2.1	%		6.5	%
Greenville	RSF			54,440			57,236			104,244			242,769			383,058
	% of Total Office RSF			0.3	%		0.3	%		0.6	%		1.4	%		2.1	%
	Annualized Cash Revenue	3/	$	1,048		$	994		$	1,922		$	4,150		$	6,879
	% of Total Office Annl Cash Rev			0.3	%		0.3	%		0.5	%		1.1	%		1.9	%
Kansas City	RSF			21,641			106,818			79,417			72,838			269,839
	% of Total Office RSF			0.1	%		0.6	%		0.4	%		0.4	%		1.5	%
	Annualized Cash Revenue	3/	$	554		$	3,120		$	2,064		$	1,835		$	7,191
	% of Total Office Annl Cash Rev			0.2	%		0.9	%		0.6	%		0.5	%		2.0	%
Memphis	RSF			122,923			228,677			153,788			170,126			686,650
	% of Total Office RSF			0.7	%		1.3	%		0.9	%		1.0	%		3.8	%
	Annualized Cash Revenue	3/	$	2,465		$	4,910		$	3,308		$	3,412		$	13,122
	% of Total Office Annl Cash Rev			0.7	%		1.4	%		0.9	%		0.9	%		3.6	%
Nashville	RSF			265,533			439,090			401,260			314,665			1,444,045
	% of Total Office RSF			1.5	%		2.5	%		2.2	%		1.8	%		8.1	%
	Annualized Cash Revenue	3/	$	5,953		$	9,202		$	8,507		$	6,829		$	31,338
	% of Total Office Annl Cash Rev			1.6	%		2.5	%		2.4	%		1.9	%		8.7	%
Orlando	RSF			12,753			77,080			111,007			5,830			101,677
	% of Total Office RSF			0.1	%		0.4	%		0.6	%		0.0	%		0.6	%
	Annualized Cash Revenue	3/	$	337		$	1,841		$	2,488		$	155		$	2,577
	% of Total Office Annl Cash Rev			0.1	%		0.5	%		0.7	%		0.0	%		0.7	%
Piedmont Triad	RSF			101,421			178,777			418,123			405,232			559,537
	% of Total Office RSF			0.6	%		1.0	%		2.3	%		2.3	%		3.1	%
	Annualized Cash Revenue	3/	$	1,606		$	2,875		$	6,186		$	7,937		$	7,725
	% of Total Office Annl Cash Rev			0.4	%		0.8	%		1.7	%		2.2	%		2.1	%
Raleigh	RSF			232,970			343,866			561,106			412,060			2,037,974
	% of Total Office RSF			1.3	%		1.9	%		3.1	%		2.3	%		11.4	%
	Annualized Cash Revenue	3/	$	5,224		$	6,321		$	11,434		$	8,172		$	36,463
	% of Total Office Annl Cash Rev			1.4	%		1.8	%		3.2	%		2.3	%		10.1	%
Richmond	RSF			120,250			245,722			404,052			267,865			995,696
	% of Total Office RSF			0.7	%		1.4	%		2.3	%		1.5	%		5.6	%
	Annualized Cash Revenue	3/	$	2,523		$	4,892		$	7,808		$	5,147		$	18,157
	% of Total Office Annl Cash Rev			0.7	%		1.4	%		2.2	%		1.4	%		5.0	%
Tampa	RSF			90,935			209,061			118,120			261,224			1,679,582
	% of Total Office RSF			0.5	%		1.2	%		0.7	%		1.5	%		9.4	%
	Annualized Cash Revenue	3/	$	2,260		$	5,361		$	2,837		$	7,704		$	37,754
	% of Total Office Annl Cash Rev			0.6	%		1.5	%		0.8	%		2.1	%		10.5	%
Other	RSF			6,785			1,289			1,580			0			74,535
	% of Total Office RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.4	%
	Annualized Cash Revenue	3/	$	157		$	37		$	57		$	34		$	2,216
	% of Total Office Annl Cash Rev			0.0	%		0.0	%		0.0	%		0.0	%		0.6	%
Total	RSF			1,292,801			1,996,866			2,638,391			2,499,384			9,461,693
	% of Total Office RSF			7.2	%		11.2	%		14.7	%		14.0	%		52.9	%
	Annualized Cash Revenue	3/	$	26,402		$	41,706		$	52,942		$	52,999		$	186,962
	% of Total Office Annl Cash Rev			7.3	%		11.6	%		14.7	%		14.7	%		51.8	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Includes 69,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

3/ Annualized Cash Revenue is March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 22 3/31/09

Industrial Lease Expirations by Market by Year

Dollars in thousands

			2009 1/			2010			2011			2012			Thereafter
Atlanta	RSF			214,147			318,195			575,416			311,970			1,548,990
	% of Total Industrial RSF			3.7	%		5.5	%		9.9	%		5.4	%		26.8	%
	Annualized Cash Revenue	2/	$	1,594		$	1,937		$	3,198		$	1,574		$	8,515
	% of Total Industrial Annl Cash Rev			5.3	%		6.4	%		10.6	%		5.2	%		28.3	%
Piedmont Triad	RSF			633,599			494,743			367,403			161,699			1,157,803
	% of Total Industrial RSF			11.0	%		8.6	%		6.4	%		2.8	%		20.0	%
	Annualized Cash Revenue	2/	$	2,609		$	2,433		$	2,209		$	958		$	5,077
	% of Total Industrial Annl Cash Rev			8.7	%		8.1	%		7.3	%		3.2	%		16.9	%
Total	RSF			847,746			812,938			942,819			473,669			2,706,793
	% of Total Industrial RSF			14.7	%		14.1	%		16.3	%		8.2	%		46.8	%
	Annualized Cash Revenue	2/	$	4,203		$	4,370		$	5,407		$	2,532		$	13,592
	% of Total Industrial Annl Cash Rev			14.0	%		14.5	%		18.0	%		8.4	%		45.2	%

1/ Includes 155,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue.

2/ Annualized Cash Revenue is March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 23 3/31/09

Customer Diversification 1/

March 31, 2009

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	1,612,112		$	31,957	7.37	%	8.0
AT&T 3/	785,036			14,327	3.26	%	4.9
Price Waterhouse Coopers	400,178			11,505	2.65	%	3.5
State of Georgia 4/	367,986			7,880	1.82	%	1.6
Healthways	290,689			7,479	1.72	%	13.2
Metropolitan Life Insurance	296,595			5,926	1.37	%	8.9
T-Mobile USA	207,517			5,449	1.26	%	5.1
Lockton Companies	160,561			4,423	1.02	%	5.9
BB&T	258,363			4,273	0.98	%	3.9
Syniverse Technologies	198,750			4,003	0.92	%	7.6
Fluor Enterprises	209,474			3,747	0.86	%	2.9
RBC Bank	164,271			3,673	0.85	%	19.4
SCI Services 5/	162,784			3,658	0.84	%	8.3
HCA Corporation	160,945			3,515	0.81	%	4.5
Wells Fargo/Wachovia 6/	129,389			3,110	0.72	%	1.9
Vanderbilt University	144,161			3,003	0.69	%	6.5
Jacobs Engineering Group	181,794			2,931	0.68	%	6.5
Lifepoint Corporate Services	139,625			2,916	0.67	%	2.3
Icon Clinical Research	110,909			2,634	0.61	%	4.5
Talecris Biotherapeutics	122,870			2,407	0.55	%	3.3
	6,104,009		$	128,816	29.65	%	6.4
By Industry
Category	Percent of Annualized Cash Revenue 2/
Professional, Scientific, and Technical Services	20.5	%
Government/Public Administration	9.8	%
Finance/Banking	9.7	%
Insurance	8.8	%
Retail Trade	7.2	%
Health Care and Social Assistance	6.9	%
Manufacturing	6.6	%
Wholesale Trade	6.4	%
Telecommunication	5.7	%
Real Estate Rental and Leasing	3.7	%
Information	3.1	%
Accommodation and Food Services	2.8	%
Administrative and Support Services	2.8	%
Other Services (except Public Administration)	2.2	%
Transportation and Warehousing	2.1	%
Educational Services	1.7	%
	100.0	%

1/ Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/ Annualized Cash Revenue is March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/ Annualized Cash Revenue reflects addback of rent concessions related to renewals commencing this quarter.

4/ Includes 123,000 square feet of annually renewable leases.

5/ SCI Services (Saxon Capital, Inc.) is a wholly owned subsidiary of Morgan Stanley.

6/ Wells Fargo acquired Wachovia effective December 31, 2008.

Highwoods Properties, Inc. 24 3/31/09

Same Property Performance

Dollars and Square Feet in thousands

	Three months ended March 31,						Percentage Change
	2009			2008
Rental revenues 1/	$	101,952		$	102,706		-0.7	%
Operating expenses		(36,496	)		(34,171	)	-6.8	%
		65,456			68,535		-4.5	%
Straight line rent		647			2,015		-67.9	%
		66,103			70,550		-6.3	%
Lease termination fees		1,035			1,901		-45.6	%
Net operating income	$	67,138		$	72,451		-7.3	%
Average occupancy		88.6	%		90.8	%	-2.4	%
Rentable square feet		25,881			25,881
	First Quarter: 2009 vs 2008
Market	NOI 2/ Percentage Change			Occupancy Percentage Change
Atlanta		-7.1	%		-0.2	%
Greenville		11.7	%		9.4	%
Kansas City		-12.7	%		0.7	%
Memphis		-6.1	%		-2.1	%
Nashville		-0.4	%		-1.4	%
Orlando		4.8	%		2.7	%
Piedmont Triad		-12.4	%		-7.1	%
Raleigh		-8.1	%		-4.9	%
Richmond		-5.4	%		-2.2	%
Tampa		-3.4	%		-4.8	%
		-6.3	%		-2.4	%

1/ Excludes straight line rents and lease termination fees.

2/ Includes straight line rents and excludes lease termination fees.

Highwoods Properties, Inc. 25 3/31/09

Disposition Activity

Dollars in thousands

Name	Market	Type 1/	Date Sold	Square Footage	Occupancy		Gross Sales Price
First quarter 2009:
Somerset	Kansas City	I	01/16/09	4,000	46.5	%	$	200
First quarter totals				4,000	46.5	%	$	200
2009 totals				4,000	46.5	%	$	200

1/ The letter “I” represents Industrial.

Highwoods Properties, Inc. 26 3/31/09

Development Activity

Dollars in thousands

Property In - Process	Market	Type	Rentable Square Feet	Anticipated Total Investment		Investment @ 03/31/09			Pre Leased %			Estimated Completion Date		Estimated Stabilization Date
Office:
FAA	Atlanta	O	100,000	$	18,071	$	17,224			100	%		2Q 09	2Q 09
Jackson FBI	Jackson, MS	O	110,000		34,900		26,290			100	%		2Q 09	2Q 09
Triad Centre III	Memphis	O	148,000		29,187		18,679			17	%		3Q 09	2Q 11
Total or Weighted Average			358,000	$	82,158	$	62,193			66	%
						$	Weighted	%		71	%
Completed Not Stabilized 1/
Office:
Cool Springs IV	Nashville	O	153,000	$	27,597	$	21,413			8	%		3Q 08	1Q 10
Centregreen V	Raleigh	O	98,000		15,662		14,133			75	%		1Q 08	3Q 09
Glenlake VI	Raleigh	O	122,000		24,448		22,996			57	%		1Q 08	3Q 09
RBC Plaza 2/	Raleigh	O	292,000		76,056		69,823			93	%		3Q 08	4Q 09
Total or Weighted Average			665,000	$	143,763	$	128,365			64	%
						$	Weighted	%		69	%
Industrial:
River Point IV	Atlanta	I	200,000	$	12,414	$	11,142			50	%		1Q 09	2Q 10
			200,000	$	12,414	$	11,142			50	%
						$	Weighted	%		50	%
Completed Not Stabilized Total or Weighted Average			865,000	$	156,177	$	139,507			61	%
						$	Weighted	%		67	%
Grand Total or Weighted Average			1,223,000	$	238,335	$	201,700			62	%
						$	Weighted	%		68	%
For Sale Residential Condominiums
				Units For Sale		Units Sold			PTD Gross Sale Proceeds			PTD Gain 4/
RBC Plaza Condominiums 3/	Raleigh				66		73		$	30,529		$	4,851

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

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 has a majority interest and consolidates this Joint Venture.

4/ Gain includes any forfeited deposits and is net of partner’s interest; in 1Q09 net gain was $550

Highwoods Properties, Inc. 27 3/31/09

Development Land

March 31, 2009

Dollars in thousands

Market	Usable Acres	Total Estimated Market Value
Atlanta	233	$	33,329
Raleigh	190		43,577
Greensboro	47		10,155
Richmond	33		8,296
Tampa	20		15,423
Nashville	16		8,106
Orlando	15		16,409
Memphis	15		3,496
Baltimore	7		1,800
Winston-Salem	3		1,500
Kansas City	1		2,100
Total 1/ 2/ 3/	580	$	144,191

1/ Includes 75 acres currently classified as Development in Process on our consolidated balance sheet.

2/ Developable square footage on core land holdings, which constitute 490 of the total 580 acres, is approximately 5.2 million of office space and 2.5 million of industrial space.

3/ Includes 4.4 acres ($1.4 million based on expected gross proceeds) included in property held for sale at March 31, 2009.

Highwoods Properties, Inc. 28 3/31/09

Acquisition Activity

Dollars in thousands

Name	Market	Type	Date Acquired	Square Footage	Total Cost
First quarter 2009:
None

Highwoods Properties, Inc. 29 3/31/09

Unconsolidated Joint Ventures Assets, Debt and Liabilities

March 31, 2009

Dollars in thousands

				Venture’s Books
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.00	%	$	7,220	$	—	$	223
Dallas County Partners I, LP	O/ I	50.00	%		29,652		48,092		50,701
Dallas County Partners II, LP	O	50.00	%		13,386		14,282		15,480
Dallas County Partners III, LP	O	50.00	%		116		—		29
Fountain Three	O/ I / R	50.00	%		24,813		32,147		34,362
RRHWoods, LLC	O/ M	50.00	%		84,548		80,615		84,294
Kessinger/Hunter, LLC	—	26.50	%		7,375		—		917
4600 Madison Associates, LP	O	12.50	%		17,502		12,381		12,840
Highwoods DLF 98/29, LP	O	22.81	%		145,692		74,458		79,487
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		97,143		54,593		57,549
Concourse Center Associates, LLC	O	50.00	%		13,297		8,618		8,759
Plaza Colonnade, LLC	O/R	50.00	%		71,297		65,024		66,667
Highwoods KC Glenridge Office, LP	O	40.00	%		24,082		16,301		17,101
Highwoods KC Glenridge Land, LP	O	40.00	%		780		—		109
Highwoods KC Orlando, LLC	O	40.00	%		200,763		138,784		146,601
Highwoods DLF Forum, LLC	O	25.00	%		117,076		67,500		70,329
Total				$	854,742	$	612,795	$	645,448
				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.00	%	$	3,538	$	—	$	109
Dallas County Partners I, LP	O/ I	50.00	%		14,826		24,046		25,351
Dallas County Partners II, LP	O	50.00	%		6,693		7,141		7,740
Dallas County Partners III, LP	O	50.00	%		58		—		15
Fountain Three	O/ I / R	50.00	%		12,407		16,074		17,181
RRHWoods, LLC	O/ M	50.00	%		42,274		40,308		42,147
Kessinger/Hunter, LLC	—	26.50	%		1,954		—		243
4600 Madison Associates, LP	O	12.50	%		2,188		1,548		1,605
Highwoods DLF 98/29, LP	O	22.81	%		33,232		16,984		18,131
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		41,703		23,438		24,706
Concourse Center Associates, LLC	O	50.00	%		6,649		4,309		4,380
Plaza Colonnade, LLC	O/R	50.00	%		35,649		32,512		33,334
Highwoods KC Glenridge Office, LP	O	40.00	%		9,633		6,520		6,840
Highwoods KC Glenridge Land, LP	O	40.00	%		312		—		44
Highwoods KC Orlando, LLC	O	40.00	%		80,305		55,514		58,640
Highwoods DLF Forum, LLC	O	25.00	%		29,264		16,872		17,579
Total 2/				$	320,685	$	245,266	$	258,045

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. 30 3/31/09

Unconsolidated Joint Ventures Income

For the Three Months Ended March 31, 2009

Dollars in thousands

			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	571	$	357	$	—	$	133	$	81
Dallas County Partners I, LP	50.00	%		2,433		1,644		760		440		(411	)
Dallas County Partners II, LP	50.00	%		1,588		757		372		216		243
Dallas County Partners III, LP	50.00	%		56		57		—		—		(1	)
Fountain Three	50.00	%		1,948		1,043		522		335		48
RRHWoods, LLC	50.00	%		4,395		2,603		804		1,052		(64	)
Kessinger/Hunter, LLC	26.50	%		2,513		2,684		—		148		(319	)
4600 Madison Associates, LP	12.50	%		1,376		540		213		418		205
Highwoods DLF 98/29, LP	22.81	%		4,694		1,559		1,229		1,205		701
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		3,701		1,447		1,057		1,008		189
Concourse Center Associates, LLC	50.00	%		490		140		157		76		117
Plaza Colonnade, LLC	50.00	%		2,713		932		950		558		273
Highwoods KC Glenridge Office, LP	40.00	%		708		394		204		174		(64	)
Highwoods KC Glenridge Land, LP	40.00	%		—		1		—		—		(1	)
Highwoods KC Orlando, LLC	40.00	%		8,188		3,296		1,829		1,866		1,197
Highwoods DLF Forum, LLC	25.00	%		3,486		1,186		878		1,354		68
Total			$	38,860	$	18,640	$	8,975	$	8,983	$	2,262
			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	280	$	175	$	—	$	65	$	40
Dallas County Partners I, LP	50.00	%		1,217		822		380		220		(205	)
Dallas County Partners II, LP	50.00	%		794		379		186		108		121
Dallas County Partners III, LP	50.00	%		28		29		—		—		(1	)
Fountain Three	50.00	%		974		522		261		168		23
RRHWoods, LLC	50.00	%		2,198		1,302		402		526		(32	)
Kessinger/Hunter, LLC	26.50	%		666		711		—		39		(84	)
4600 Madison Associates, LP	12.50	%		172		68		27		52		25
Highwoods DLF 98/29, LP	22.81	%		1,071		356		280		275		160
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		1,589		621		454		433		81
Concourse Center Associates, LLC	50.00	%		245		70		79		38		58
Plaza Colonnade, LLC	50.00	%		1,357		466		475		279		137
Highwoods KC Glenridge Office, LP	40.00	%		283		158		82		70		(27	)
Highwoods KC Glenridge Land, LP	40.00	%		—		—		—		—		—
Highwoods KC Orlando, LLC	40.00	%		3,275		1,318		732		746		479
Highwoods DLF Forum, LLC	25.00	%		872		297		220		339		16
Total 1/ 2/			$	15,021	$	7,294	$	3,578	$	3,358	$	791

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. 31 3/31/09

Joint Ventures Long-Term Debt Detail 1/

Dollars in thousands

Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 3/31/09
Dallas County Partners I, LP	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18	$	41,036
Dallas County Partners I, LP	50.0	%	Regions	6.30	%	Jun-14		3,389
Dallas County Partners I, LP	50.0	%	Thrivent	8.45	%	Aug-10		1,535
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.00	%	Jul-11		1,129
Dallas County Partners I, LP	50.0	%	Sun Life	5.92	%	Feb-16		1,003
				6.31	%			48,092
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.19	%	Jun-13		14,282
								14,282
Fountain Three	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		16,380
Fountain Three	50.0	%	Thrivent	7.00	%	Sep-12		5,095
Fountain Three	50.0	%	Thrivent	6.01	%	Sep-17		3,624
Fountain Three	50.0	%	Thrivent	6.01	%	Sep-17		3,624
Fountain Three	50.0	%	Lehman Brothers	8.02	%	Aug-09		3,424
				6.47	%			32,147
RRHWoods, LLC	50.0	%	Bank of America	6.80	%	Sep-12		25,972
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	0.53	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	5.85	%	Mar-16		8,309
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	0.45	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	0.60	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		4,532
RRHWoods, LLC	50.0	%	UNUM Life Insurance Company	5.67	%	Mar-17		3,913
RRHWoods, LLC	50.0	%	Regions	6.30	%	Jun-14		3,389
				3.91	%			80,615
Plaza Colonnade, LLC	50.0	%	Met Life	5.72	%	Jan-17		47,819
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.90	%	Mar-24		12,345
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	6.00	%	Mar-16		4,350
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.38	%	Mar-10		510
				5.77	%			65,024
Highwoods KC Orlando, LLC	40.0	%	Met Life	5.21	%	Jul-14		138,784
Highwoods DLF Forum, LLC	25.0	%	Jackson National Life Insurance Company	5.13	%	Nov-13		67,500
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.66	%	May-12		54,593
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.78	%	Apr-11		46,808
Highwoods DLF 98/29, LP	22.8	%	Goldman Sachs	6.11	%	Jul-17		27,650
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.84	%	May-14		16,301
4600 Madison Associates, LLC	12.5	%	State Farm	6.85	%	Apr-18		12,381
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	6.95	%	Jul-10		8,618
				5.90	%			372,635
				5.78	%		$	612,795
Highwoods’ share of the above							$	245,266

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

2/ Floating rate loan based on market rates.

Highwoods Properties, Inc. 32 3/31/09

Joint Ventures Portfolio Summary

As of March 31, 2009

Summary by Location:

				Percentage of Annualized Cash Revenue Highwoods’ Share Only 1/
Market	Rentable Square Feet	Occupancy		Office		Industrial		Retail		Multi-Family		Total
Des Moines 2/	2,505,000	87.1	%	26.5	%	4.2	%	0.7	%	3.2	%	34.6	%
Orlando	1,852,000	87.4	%	28.6	%	—		—		—		28.6	%
Atlanta	835,000	78.0	%	11.1	%	—		—		—		11.1	%
Kansas City	719,000	86.6	%	8.3	%	—		—		—		8.3	%
Raleigh	814,000	91.0	%	7.2	%	—		—		—		7.2	%
Richmond	413,000	100.0	%	5.0	%	—		—		—		5.0	%
Tampa	205,000	94.2	%	2.1	%	—		—		—		2.1	%
Piedmont Triad	364,000	43.0	%	1.9	%	—		—		—		1.9	%
Charlotte	148,000	100.0	%	0.7	%	—		—		—		0.7	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%
Total 3/	7,965,000	85.8	%	91.9	%	4.2	%	0.7	%	3.2	%	100.0	%

1/ Annualized Cash Revenue is March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/ Excludes 418 apartment units and related occupancy percentage of 92.3%.

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

Highwoods Properties, Inc. 33 3/31/09

Joint Ventures Lease Expirations

March 31, 2009

Dollars in thousands

Year	Rentable Square Feet Expiring 1/	Percent of Rentable Square Feet 1/		Annualized Cash Revenue 2/		Average Rental Rate		Percent of Annualized Cash Revenue 2/
Total
2009	326,979	4.8	%	$	7,114	$	21.76	5.0	%
2010	900,895	13.2	%		17,765		19.72	12.6	%
2011	1,097,783	16.1	%		22,921		20.88	16.2	%
2012	545,321	8.0	%		12,485		22.89	8.8	%
2013	1,325,920	19.4	%		27,063		20.41	19.1	%
2014	856,650	12.6	%		19,950		23.29	14.1	%
2015	718,130	10.5	%		13,702		19.08	9.7	%
2016	59,902	0.9	%		1,088		18.16	0.8	%
2017	549,422	8.1	%		12,609		22.95	8.9	%
2018	78,634	1.2	%		1,789		22.75	1.3	%
2019 and thereafter	351,157	5.2	%		4,959		14.12	3.5	%
	6,810,793	100.0	%	$	141,445	$	20.77	100.0	%

1/ Includes square feet expiring in properties in joint ventures that are consolidated.

2/ Annualized Cash Revenue is March, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 34 3/31/09

Joint Venture Acquisition and Disposition Activity

Dollars in thousands

Acquisitions

Name	Market	Type	Date Acquired	Square Footage	Total Cost
First quarter 2009:
None
Dispositions
Name	Market	Type	Date Sold	Square Footage	Occupancy	Gross Sales Price
First quarter 2009:
None

Highwoods Properties, Inc. 35 3/31/09