HIW - Earnings call transcript Q1 2018 | Highwoods Properties, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Highwoods Properties Conference Call.

During the presentation all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session. [Operator Instructions].

As a reminder, this conference is being recorded, Wednesday, April 25, 2018. my Maiorana. to now over the is Brendan to it great turn pleasure conference And ahead, go Please sir.

Brendan Maiorana

good and Thanks morning.

Klinck, Investment Joining me Financial and Ted President are Officer. Ed Operating on the call Chief this Executive Mulhern, and Mark Officer; morning Fritsch, Chief Chief and Officer;

As web. today's on custom, our remarks have is posted been prepared the

include the as today's received our website of to NOI not have or GAAP call, you comparable Also, and section review earnings release the financial such non-GAAP most supplemental, the supplemental reconciliation highwoods.com. Investors On non-GAAP they're and EBITDA. If include measures. directly yesterday's measures both FFO, of our will available measures on release at these a

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

As any and you materially duty forward-looking statements. can undertake statements. company call from Ed. forward-looking to the I'll these differ a know, does turn to not events The update results actual now

Edward Fritsch

Thanks and Brendan, thank joining us. good you for morning everyone

first our the around are around of office to platform generally REIT development; down our and the of fund REITs, February are keeping rise. Most drop ongoing pipeline in we initiatives. the including Despite trading price Financial in the average; remain quarter REIT costs continue the absorption; positive and average yield rents continues namely: RMC this and prices, early bridle ability positive business volatility index. NAV. we share business experience far markets at confident positive to and markets the financial economy our remains In continue year outlook REITs picture construction hovering XX to decline XX% key for remain in influxed fundamentals national The the on to our U.S. REITs markets in of XXXX. performance development discounts other outpace discussed our year’s thus apply, on the footprint healthy. our to and with including Southeastern are in equity continue now underpinning X% contrast jobs factors to stocks to the net a call business During speculative

powder, our provide within First, comfort well significant long-stated our dry metrics debt remaining zones. us while with very conservative

to Second, $XXX non-core continue expect to we annually of around million sell assets.

cash our delivery pipeline. given to flow stabilization our continues Third, well strengthen and development the of pre-leased ongoing

new expansion feet quarter, we square first the over including of square space, feet office During of second XXX,XXX leases. leasing XXX,XXX of leased XXX,XXX square generation and feet

We robust In term of average solid effective posted addition to the leasing foot, square growth growth X.X%, of GAAP XX.X%, $XX.XX healthy rent volume, cash rents an were strong. rent and net metrics our per of strong up strong portfolio NOI X our of occupancy year-over-year lower was can working evidence average property growth years. X.X% rent The be its that same our expenses. modestly cash despite higher and through operating in observed of way

to of FFO pleased quarter. share delivered $X.XX per are have We the during

on Mark Our million, million include which in first detail. fee $X.X the $X.XX, from quarter’s in nearly quarter call discuss or mentioned Raleigh we will results $X.X last restoration

XX% is basis. a pre-leased million on development, to Turning pipeline our $XXX dollar-weighted

progressing We’re our as across pipeline. expected

build-to-suits, recently Petcare including in for headquarters projected summer to topped U.S. out and on-budget. is million, our deliver are square XXXX. major foot $XX nine of projects, Our The two Mars tracking and XXX,XXX on-time the

track for this Our of XXXX. Global project is and delivering foot looking XQ MetLife’s Technology building in third $XX to Campus XXX,XXX on forward million, we’re square right

XXX,XXX We our are million, in now Riverwood $XXX XX% foot project XXX at Atlanta. square

before date, year the targeted our have more stabilization that in achieve have occupancy prospect than a solid we enable us still activity will we While to mid-XXs.

we property that started Raleigh strong and will us over million, XXX,XXX that $XX our in foot CentreGreen, prospects to XXXX bring we XX%. at leased XX% spec, now XXX% We’re square have

potential $XXX towards building the tracking the mutually a to our agreement of up in in Nashville, follow are Gulch middle District the a a As million year disclosed is beneficial of CBD the working nicely. process Asurion headquarters regarding execution the previously by with we negotiations and

additional we’re $XXX to million on comfortable continue company-owned opportunities, we outlook development development million of and our land, chase with mostly to XXXX of Asurion, Beyond announcements. $XXX

quarter, the disclosed exchange of we February using on Xth, development two During that we parcels Nashville $XX acres in million had totaling X as XXXX acquired CBD proceeds.

pipeline regards core development various of assets at land support additional dispositions, With have inventories of a can office. continue to Our stages of marketing. well-defined billion $X.X of to we overall non-core

maintaining to Highwoods XXXX pending of $XX We our next $XX the Two $XXX including disposition outlook for are week. comfortable scheduled close Tower million, sale million of million to

to on Lastly, owners we many locations, continue and that sell remains but high are have elevated In are, to what quality willing in BBD strong. acquisitions building aren’t who assets the evaluate summary, remains on capital front, those pricing our we business there underwritten.

steady the first see to around the year in dip a interest from anticipate third we where ended quarters. continuing second following We’re quarter we ending occupancy with and customers projected and the

always, more sheet are With keeping until balance As expense XXXX, Ted. well to objectives. positioned and leveraging fund and I our call the over to a fortified focus management. our no turn synergistic essentially we’re while on we will keen now platform, our brand maturities growth a debt

Theodore Klinck

good and Ed morning. Thanks

given about fundamentals. Ed our As upbeat healthy noted remain we outlook

positive jobs Southeastern and economic to benefit a continue markets from environment.

as average the high talent the national below These to grads environments. well college opportunities, and this XX quality who from and have quarters. friendly living. the career to drawn seasoned cost of are average life, employment of dynamic business robust to benefit consecutive continue to as Employers from beaten diverse pool attract markets regions access met for growth recent candidates, qualified professionals, highly or retain ranging annual Our and

square space We XXX,XXX rents XXX,XXX and of new with of we office XXX,XXX foot, feet feet of second square signed term six to an effective office per our leased expansions. gen Turning square five-quarter $XX.XX quarter, of gen X% average. net the prior square years. above average of We second leases garnered feet

expansion in line was deal recent while New typical was double approximately our the volume. average volume roughly our activity with

makes XX.X%, prior rent cash positive of rent well leasing Rent strong this were Our quarter we remainder the average the positive activity of for were strong spreads of to healthy quarter. year. XX.X%, able X.X%. post spreads above were the optimistic us spreads and GAAP five

In addition of signed XX,XXX generation square office gen we QX activity, second leasing leases feet our to February. our first in call since

of Our to development strong end of projects. leases, basis. is annual rents rent on cash healthy pre-leased our ago, rents higher at XX% which a pipeline development over delivered now is in-place quarter several the a Average were nearly last recently indicative dollar-weighted growth all compared and X.X% solid quarters, on escalators year at

NOI bottom quarters XX%. in down being year X.X% high decrease despite end next couple of The an XX back average compared and in outlook around plus basis third of of move-out occupancy the at will to largest year-end division’s Raleigh occupancy over to quarter. X%. Weston to points to up the known while of same the occupancy XXXX with quarter cash anticipate is feet XXX,XXX the Fidelity, uptick who expenses submarket growth We’ve this property basis first points We our the end end operating give was around XX.XX%. maintaining to the year increased XX%, XX around the Our square QX XX.X%

the end is rent term November, lease end natural in and the QX. the Fidelity’s of natural their receive we’ll of of remainder the expiration reminder, a through As full

national portfolio the in-service basis of continues high-quality occupied fuel foot square average. million Raleigh’s first growth job in the Raleigh the end demand office XX Weston to X.X% higher office quarter. than X.X was points for employment space. at XXX% growth Our posted year-over-year,

XX% Per positive the to basis point expect among square market’s under We X.X% others. announced construction believe initiatives feet rents trends Class spread X.X MetLife is our We million pre-leased. BBD-located Suisse, million from overall is portfolio A hiring competitive year-over-year. continue feet Young, improvement X.X December submarkets. was A a across vacancy XXst. There is Avison Credit the and since Class and X.X%, to Ipreo, square were with up six XXX approximately

continue as in of rents deals XX.X% QX. signed spreads We GAAP generate to rent on evidenced positive by strong

Our up basis is in-service year-over-year. portfolio occupied, Raleigh points XX.X% XXX

XXXX in space square we confident a deal development. to leased. plans. remainder feet announce at strong the to our in the project pleased for deal and the approximately XX% recently remain is There This lease-up signed our interest XX,XXX of CentreGreen We’re brings

high-quality of around XXX,XXX continued Turning absorption recent in was moderated gen Net square We QX years. Class Atlanta job feet, rent year-over-year XXXX of signed to Atlanta. annual X.X of term X.X%, by of remain by growth quarter reported average fundamentals market an driven A in Class but product spurring XXX,XXX properties, by second CBRE. Atlanta, to as quarter’s this absorption XXX,XXX average healthy feet A for square square demand leases the with fueled this growth to indicating compared positive of X.X% feet solely

push to evidenced GAAP continue quarter’s we Although the spreads. TI's moved XX.X% rent up, as by rents positive

submarket square XX given signed we in vacated our remain bullish feet Buckhead. the competitively-advantaged in XX,XXX quarter, We the first Buckhead and Century feet portfolio, very XXX,XXX its Center and FBI quality location. The During the in square quarter. particularly totaling leases on

XX% activity As the vacancy and see last to backfilled call, we on we’ve of the the discussed space. on steady continue remaining

growth million national office building we’re and mid-XXs. of the of Finally, Ed bring Wakefield more U.S. be Cushman year-over-year by leased to lowest mentioned, any as unemployment X.X% people. is the now was Nashville, area average XXX In the metro and X rate versus X.X%. have reported XX% X.X%, to with prospects to than Riverwood Nashville’s employment the the at

As responding improved X call, X.X%. The Nashville held approximately X.X% in basis the mentioned is the million Class overall XX A square product points, at throughout vacancy vacancy delivered well in XXXX. ending to and at market QX in as last feet new steady

Our was signed second square at of of of robust XX.X%. XXX,XXX leases XX% positive QX. spreads end GAAP Nashville at We portfolio feet gen occupancy the

XX year-end, as vacancy X.X%. growth. available absorption A basis highest the for absence X.X% year-over-year points to XXX,XXX XX.X%, Tampa, reported and of office quarters. of a backdrop Tampa’s points last in was with growth quality feet, JLL the employment Class decreased development, in compared space, seven rent and Overall positive Lastly by to was stapled basis office down contribute vacancy net square all XX supply dwindling to

of by progress business. portfolio, for end XX.X% for overall healthy fundamentals and positive In markets Tampa the a will offer environment was quality, demand anticipate We office conclusion, our our Mark. We QX. the across space occupied well-located are continue. at of which excited our

Mark Mulhern

Thanks Ted.

and FFO share, net the Compared year-over-year. $X.XX drivers to per $X per or million fourth FFO delivered the of share, million X% of of sequential we nearly outlined Ed $X.XX increase quarter a or As the of more development increase by million $XX.X were: by: $XX.X approximately approximately higher XXXX, a driven delivered rents, These $X that average NOI higher higher $X.X recently offset I’ll shortly. G&A and from in describe Higher from projects restoration million. Fidelity fee were million, detail NOI by higher by partially income

have of we each as recall, expense equity modestly six you’ll us first due increased As offering is pattern the higher quarter normal annual bond early the year; million the maturity of March, bond our weeks in XXth. from ahead to this closing of and in $XXX repayment our million April expense long-term for grants $XXX on interest

now effective are NAREIT sheet of balance As remains and with With with in noted first XX%, turns reporting of in the we EBITDAre X.XX consistent shape. our quarter, debt-to-EBITDAre our release, net recent leverage guidance. excellent

put towards metrics growth of fund our leverage have lower initiatives. significant debt-to-EBITDAre and net us strong X.X range stated X.X end liquidity of the comfort to we to Our our

XX our development pipeline. XX% million of our funded of investment page current we’ve of our on on noted already supplemental, $XXX As expected

after of were on $XXX had ladder our paid line execution quarter effective to $XXX $XXX of Subsequent proceeds interest zero We very interest with the offering, at maturity rate X.XX%. in bond quarter mentioned, a gain favorable an million we effective off drawn in of pay the with million We treasury had I at a credit. an revolving of bond, the pleased our line our prior factoring million used $X.X hedge credit a the end, were at of we As end. this X.XX%, $XXX of a raised rate rate. million of underlying down majority of XX-year extends million from to which The which X.X%. deal fixed

not is maturity XXXX. meaningful until June next Our

tightened a of per midpoint XXXX previous our $X.XX to midpoint. As a share, share, our to to per Ed FFO mentioned, we $X.XX outlook penny $X.XX increase

or proceeds in Two for Raleigh $XX resulting acquisitions previously-announced While in XXXX typically forecast future The does the assume closes Tower sale half-penny two-acre our the include do million the any Highwoods million FFO May held gain. sale we adjacent $X not include for of Xst and proceeds in escrow. a land are effect planned of an dispositions, parcel

year to cash take is operating expected occupancy due in moderate our of to your and expenses. note: Before questions, other we timing the items remainder a few lower to the the seasonality same First, NOI growth property of and average

driven the known third out and We vacancies, will of upward to then the by impact Fidelity, bottom occupancy trend predominantly quarter due year-end. expect in by

mid-point few of have occupancy expect first $X.X a we of comparable rent. Fidelity’s run-rate will after the payment November. items from relating from otherwise run signaled “clean” QX the before in recognize be outlook, flows third quarter. fourth no Operator or departure in we’ll recognized pre-leased your for second projected and Second, our unusual of our will of at same amount with fee pipeline scheduled we Fidelity, through in in which modeling consistent of of to originally questions. we quarters to the finally, a past the QX we our performance Weston years, QX, Fidelity cash third includes for months These the And are continues now recognize the under purposes, lease Of delivery its store quarter, FFO to quarter, and In anticipated portfolio. rent QX. roughly restoration would free end XXXXX in development the as and million end of strengthen improvement the creating its two the with for extra ready rent our that comparable well note, we

Operator

question [Operator go Bank from Jamie line Feldman of our with America/Merrill first Please comes Lynch. Instructions]. ahead. And of the

Jamie Feldman

largest give update, all to fill, talking FFO, to help got you same am little the more would the Great, XXXX done thank you the story? just focus guys largest you have and couple leases just us color. good you about or when it have can last XXXX quarters vacancies if morning. you fill, back it an leasing on an and I a back ones been have Appreciate the you the when actually was hoping

Edward Fritsch

maybe it's can Ed. a us morning off give macro Ted specifics more backfills. comments good couple then on Jamie, the start some Hi, with I'll and prominent

the be that did feet as to of square on plus last on or so encouraged in that of pipeline expansion of able are did activity leases that what square development component. then development was if million our to X.X office And exhibited pipeline or feet we square fundamentals of including also quarter continued XXX,XXX feet the we're first call XXX,XXX our our leasing available prior for spec our just we So by XXX,XXX leases. as very new and of strong publish to feet we that about square the

knocks And of so square since knocked we of to that feet XXX,XXX out XX,XXX that back only square space. our last available call which about

it Ted So a And you meaningful Buckhead for you'll for if mentioned have our the was signed Atlanta Watson percentage small a ones. feet we activity It we our in while XX,XXX deals stabilize Stanley. of it XX% since Morgan the call. more then for good XX% which last -- quarter. prominent of of than was we in only cover we activity if or in comments specifically Buckhead that in more good XX Towers did our square just -- take to was knocked Then piece out small

Theodore Klinck

HCA XXX,XXX in in Sure, at holes our Nashville. expirations, the looking that's that had, XXXX now up Nashville from last three relet the XX% XX% feet call. We're we

One XXXX of West back substantially End the our two that's buildings is building. filled

X% about That vacancy remaining vacant, and Ramparts. still Ramparts. it's is in strong, at about vacant the we're XX% So our includes sub market Brentwood is that

a Buckhead of forward good about and Ed And now leased no a Buckhead. X% do. the spaces yet. and is totaling one one pull on Highwoodtizing now there positive positive of pretty egress, terms activity with One hasn't did activity. activity market. had to showings. as XXX,XXX reminder Right quality explorations lot the of is still but slower complete. XXXX mentioned So good some been underway construction shows space we work still getting there feel lot good have But had Alliance well, in signed space, of I two now ingress We're we Alliance a why in getting Tower broker reasons And in is steady just and Ramparts relet doing Alliance substantially this We've new which feedback Three and Monarch the think and feedback. just space Three deals excellent as we're is about one the we're in have up great In feet.

So we're the still Richmond And optimistic then on is that. FCI, third XXX,XXX in feet. one

We relet for space. the prospects are of balance XX% there and excellent the

Jamie Feldman

leasing Buckhead any anything spaces of have from or do these additional XXXX any guidance in Okay, XXXX you your your guidance? in in

Mark Mulhern

this hits question for that this Really of your most across to answer of Board activity. XXXX part in the Jamie,

Edward Fritsch

other jump we they in and FBI well. this been Highwoodtizing project. interests big probably real since in they the feet and I underway. XXX,XXX pretty have to is that a so Highwoodtizing ought to XXXX relet Jamie as the and XX% earlier in first there steady vacated FBI, left are quarter, there's The on well quick couple continue space we when they'd

on, what are we in Center years XXXX underway space months. we We is a to did few at well XX similar about it in backfilled that which ago Century

Jamie Feldman

your Okay, and thank of reform? deductions, are first the any the guess in digest taking of markets economies or step reform think corporate based I or having pace tax conversations starting with regional tone and the you a change potential just in self you're I lack to tax general relocations back, to on

Theodore Klinck

tied that. None to

Jamie Feldman

on in any that it's top change the seeing you your markets mean are markets mean same? about Okay, a has general, you tone I say, would in of or lot what how HX are just about XX pace [ph] I or a anything, changed

Theodore Klinck

think continue I fundamentals there, really positive. same. the say things would the be quite that been to I it's about It hasn't reflect

Jamie Feldman

thank alright, Okay, you.

Theodore Klinck

Thanks Jamie.

Operator

question. line Citi. from your the Korchman next proceed Please of Emmanuel comes Our with with question

Emmanuel Korchman

what's sales just everyone. properties about for think appetite development morning your core for pipeline? asset then using and If those proceeds selling just some we maybe that Good

Edward Fritsch

good in a this pipeline. that that. and from fund have year to XXX non-core strengthening we're we do expect two our towards plus range do million sheet Of development think I would to balance put have the the we our flow Well we or minus thirds feel very also We already we dispositions do ability continuing million funded. cash now percent perspective about $XXX

balance the a I that strengthening take macro reticent market we on assets and core of strength think the would flow. put and given from them to proceeds to So dispositions, to cash be fund sense sheet,

Emmanuel Korchman

of HQX up often office topic how and your that for then terms you in can Amazon Thanks there? updated does and that come in thoughts share

Edward Fritsch

We're Every that. I their of pleased it's It's you up -- newspaper I both certain on XX people keen markets have out sides speaks an the without meet a pros or certain four of pick it the the a is odds markets topic. shot mean obviously, how footprint. trying XX speak somebody to there editorials that very just, and it XX a We'll topic of minutes. think on with it's finalists. four to Vegas people cons like top can't And and other interest. are that JR, who our or both but everyday guess in having are will see of periodical of falls the in being and it quality

Emmanuel Korchman

Thanks Ed.

Edward Fritsch

Sure, Manny. thanks

Operator

comes of Dave Our the from line Baird. Rodgers with Please go next ahead. question

David Rodgers

able get being rents follow-up higher as higher but about well. good being your morning. wanted comments you base to Hey, concessions I on Ted to

improving up you total of costs? So -- you as slightly, down development step and then next as how where well Ed flat slightly with take economics see our that I do terms terms see maybe of and guess in returns in a construction what do

Edward Fritsch

one was the Difficulty] below Sure, some box will either them just go restack, average [Technical one [Technical releasing of that renewal a down our of CAPEX. economics Difficulty]

Theodore Klinck

Ted. its Dave,

that really be up required In renewal jump it I One lumpy a bit it then numbers either TI think terms a below of deal, is them both leases. our little total one higher new or this a long-term quarter size lease leasing that backed and really out quarter-to-quarter a you and and them required quarter if just one restack was be of average. those two this deal can was on of saw one quarter but you that decent our was of a either would quarter five new five not

leases can us. have lumpy one while on due So be things it stayed for or think to near average I consistent relatively two

Theodore Klinck

to that, modified a unfortunate remains because And and the gen second second just will gap rent build-to-suit of a regard deliberate little there of increase I ability material there gap gen. it a in It's given significant user meaningful step between up what's mean narrowed a by Dave gen go the new and the to I of in bit first but stack construction take to a some new for fortunately of decision the rents second where projects. cost to driving decision with gen development is second of of it's first consummate from the continued a to that's lot it's first amount our these growth the to lack still half the strengthening space.

David Rodgers

development feel spread are and because space, on a the returns market construction lack Do are going on Ed you getting costs of of the can because just that? because for ask of bigger you where the tighter better that

Edward Fritsch

underway the construction It's the are on currently and about disciplined we're our optimistic good feel of very what about, we're to get proper say achieve and our rates very certainly stuck rising capital think way I think we that, and to business. would ability healthy cost remain plus You to to don't slaughtered. kind of get but we I of we know X% the we've We over it that that is continue yes what chasing -- hogs know of result I that what and with been development to Dave what we've I have that a in on increased the and able years that GAAP pigs stable the is that. face pipeline return like get don't think to maintaining the past the run to on at of the materials, the where

David Rodgers

you. That's helpful, thank

Edward Fritsch

thank Sure, you.

Operator

Instructions]. [Operator

from of proceed. coming Blaine Fargo. Next with the Wells question Please Heck is line

Blaine Heck

Ted point, the kind big this Ed pretty for Maybe follow on any you far seen up morning. thus a good that guys Thanks, or evidence is sales seen year have buy we've do that you'll of XX to that last year, move increased that investment selling rate could to the more? pricing you have market on either effect having the to the or other think opportunities extent side on in and affect an an difficulty

Edward Fritsch

think bigger quality occurred coming I very the will a quality higher absence for pricing quality Blaine a trophy lot Alliance the is assets [ph] when really is probably and type I The ones. think and it capital marginal. seems be transaction market very issue like to of that market with the of coming institutional be is wall the pursuing product Three of there extremely that continues And peachy aggressive. it that it is just There's not does good that. to of dish to

this So move that's I market as acquisition more rates. casting opposed interest to or in think that the defining it's

Blaine Heck

markets except consistently rent for and I strongest Raleigh, those of sense up and makes that from at several quarters come over look Okay, when of markets you the and rent have Tampa, do development projects in then each Tampa you Atlanta point. in this past Nashville, guys basis growth some at your spread

could can your you just maybe keeping be if lease a might leasing one or talk guys guess development at cautious, about wondering a a you if sites matter of matter I'm So pre with have I there? getting land pre maybe ahead to that you go just any prospects of is it's of there something Tampa else it's

Edward Fritsch

in your a development do customers and it you have your two so option call answer we It's with A is Yes, to we so this, we your predominate to finding places -- question. nailed Shore anchor can Park. in one West Independence more

have do so buildings we we where other. we pads and there eight And three have can

chase we is half have Financial we foot sooner Tampa acquired to we square Sun neighboring that the on But it's customer anchor that Trust optimistic million the we're And able also or later. folks and when a the comes then the Center bought second build down Downtown to and we than tower. so block be do something capturing presented that. in scale would that block late We in to might on And to But or Orlando prospecting there. able fairly were defined occurred. well and a that be of appropriate Tampa depending we're back what recession capture for on modify to were other are bigger just prospects. fact we can So the reminder than there that from have come in we're -- to in to lasted They the hangover when certainly markets and us as both longer concepts that smaller that their lasted in. enable recovery the market

And rent later stronger so are in showing the than growth vitality now their others. and recovery the

that. we comes of with some development hope So this

Blaine Heck

that's Great, Ed. thanks helpful,

Operator

Next question Please from Reagan comes Jed the line with Street. Green go ahead.

Jed Reagan

you yet? have on known outs move do that on for any Good morning any read or guys. Can you XXXX, color potential us give

Edward Fritsch

most out -- put six listed our on there. A on Jed we is Sure, the Glance recent some we back of when we which page our At website

square put anyone feet basically on who's any or -- we So that's XXX,XXX there. more customer we

that a care takes One so that. week sell of is of in we'll that next those building

of they early more bit in feet It square at -- but that's that four. good XXXX will no feel any or point. and we of a little the as three play out of very leases still we known from XXX,XXX this four customer about move So out. see is how But

Jed Reagan

effective just if missed you but kind And seeing but I'm face rent concessions. markets much? how your you're and just I of curious in of look maybe the at feel magnitude that like your you're do on so kind at net this you of basis a order point seeing markets growth like rising that's Okay, opening also growth sounds across helpful. remarks of some

Theodore Klinck

hi Yeah is Jed, Ted. it

we net up, were quarter last X% year. from were last think rents up effective I

and see spreads averages. to continuing our it. really strong. mean concession able GAAP rent this been generally are are cash rents, We've in our which we line keep we're to historical we So quarter I with generally pushing the saw packages

markets. growth So good getting activity, good still feel still in market job our good,

about good the of So, new still fundamentals. not a overall construction lot we feel so

Jed Reagan

markets. And is accurate? how is then you've past market know in that your across maybe rent to still guess about X%, X% that the of representative kind talked footprint, your of I X% I growth

Edward Fritsch

think few no it markets we Tampa pushing. hasn’t Again and really in think really the last the I Nashville, but end then strong were a still of on lower is. in several changed few got the is end really of quarters. Raleigh Yes, the of I our that, markets upper the it

Jed Reagan

year. give Mark, you just share up maybe chop is you helpful for it looks decision some to might top a proceeds line or dispositions you means count little need for lowered that it that potentially? -- and Okay, like on then guidance ramp Can color the for one some whether bit the last and a additional

Edward Fritsch

the Sure the you is we've funded and done for haven't got think anything we we dispositions the of the ATM We pipeline metrics price where of ATM. a with the in active on neutral some of Jed, we've in the got year. leverage planned development to, plenty basis users referred flexibility ATM. where past leverage with we've are, kind obviously some been got know as the With they obviously

to the we've again with flow metrics of from then got plenty the free to the disposition able So fund respect development business, proceeds, cash pipeline. be and of to firepower between

to I the sources for will in think and be share with not anticipating that's reason that on we ATM. But respect in count we're good capital. shape the So of the the move

Jed Reagan

range, so or get you Ed I think think right the that XXX that I of million high that? is would in and the of literally about sort to dispose. heard disposition your end If way took that to Okay say I

Edward Fritsch

It is.

Jed Reagan

you guys. Yeah, okay, Thank perfect.

Operator

of line next Our question from go Guinee Please the John with ahead. Highwood. comes

John Guinee

with Guinee Highwoods, okay. John

Brendan Maiorana

we that are analyst hiring every could. We

John Guinee

Ed can you is and mentioned actually on Amazon. God, with as who call was this Not shot show you reference as Oh to a my give date us JR that old the everybody playing? I, T.V. you that,

Edward Fritsch

maybe XXXX XXXX.

John Guinee

Yeah, this remember call most on that. then, weren’t of okay, people the alive

a figure Here's better. to debt like what you are economic going get little lease your analysis cost I looks getting savings, some if can't out is

couple but equates third the the quarter Fido and and all two for extra gets from the $X next [ph] an from what's to implying quarter in FFO -- almost pop the the you just in next restoration got rent maybe coming and two You've for then in fourth you're that then there? little maybe that a the that quarter, quarter FIDO $X.XX in three about fourth $X.XX pennies a pop million up quarters in

Brendan Maiorana

Hey Brendan. John, it's

there's items yeah to within a to I few Thanks within There's three to get… movement ways the that. line try will So a decent live of amount quarters. up first

have occupancy restoration You're second will in right a bit amount third likely get in quarter, quarters. the fee we little dip and comparable is so what's first you in the second Fidelity Really that we'll quarter. happen to the will a got the

the into from to expect back fourth be quarter. savings first higher recently fourth we that the So occupancy build G&A that more and development as the in NOI of we will would the relative quarters third just we seasonal by we the quarter we to get will dip and into expect some build then get to occupancy get probably that then as normal and get second pattern the offset projects delivered

I There's improvement on high there think your quarter level occupancy. and no you're are a terms with that be few in Fidelity impact clean. right there's is of pretty of quarter, the trajectory it should an a in fourth in there moving basis So, in but parts

John Guinee

Great, much. thank you very

Edward Fritsch

Thanks John.

Operator

further There phone the questions are no on line.

Edward Fritsch

everybody for in. thanks for Right, thank moderating you and dialing Carlos

hesitate follow if Thank you any As questions please up call. you to have a us always give don't

Operator

your We disconnect lines. ask Ladies thank and you your concludes you participation gentlemen, for that please today's and call. to

Highwoods Properties (HIW) 25 Apr 182018 Q1 Earnings call transcript