SOURCE: Highwoods Properties
RALEIGH, NC--(Marketwired - Aug 25, 2014) - Highwoods Properties, Inc. (NYSE: HIW) has sold 11 non-core buildings in Richmond in two separate transactions for total proceeds of $40.7 million and total gains of $17.7 million. The non-core multi-customer office properties total 359,000 square feet, are predominantly single-story and are, on average, 90.6% leased. They were expected to generate $3.5 million in cash and GAAP net operating income for full year 2014.
Ed Fritsch, President and CEO, stated, "In our ongoing focus on the culling of non-core, non-differentiating assets, the disposition of these properties fits well with this strategy. Richmond is an important market for our Company, particularly the West End where our assets are heavily concentrated and which have consistently performed well throughout the cycles."
With the completion of these sales, Highwoods owns or has an interest in 26 office properties, encompassing 2.3 million square feet, in Richmond. These properties are, on average, 95.0% occupied, 490 basis points higher than the Richmond market as a whole.
Year-to-date, the Company has now sold $99.4 million of non-core buildings for gains of $29.4 million. Gains from building sales are not included in the determination of Funds from Operations (FFO).
About Highwoods Properties
Highwoods Properties, headquartered in Raleigh, North Carolina, is a publicly traded (NYSE: HIW) real estate investment trust ("REIT") and a member of the S&P MidCap 400 Index. The Company is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Kansas City, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond, Tampa and the Triad. For more information about Highwoods Properties, please visit our website at www.highwoods.com.