Highwoods Properties reported late Tuesday that it leased 1.3 million square feet of office space during the third quarter and boosted occupancy in its office portfolio by 1.4 percent.
The Raleigh real estate investment trust’s funds from operations, a profitability measure for REITs, was 71 cents per share for the quarter after excluding the extinguishing of debt and property acquisition costs. That was just under the 72 cents that was the consensus of Wall Street analysts who cover the company.
“It was another productive quarter for Highwoods on many fronts,” CEO Ed Fritsch said in a statement. “Office leasing was strong, net effective rents again increased and capital activity was substantial.”
Highwoods owns 32 million square feet of property in Atlanta, Kansas City, Memphis, Nashville, Orlando, Pittsburgh, the Triangle, Richmond, Tampa and the Triad.
The company’s office occupancy rose to 90.6 percent in the third quarter, compared with 89.2 percent during the same period a year ago. Highwoods announced $115 million in new development projects during the quarter that are 87 percent pre-leased.
The company also sold 31 buildings for $155 million and acquired the Bank of America Plaza office building in downtown Raleigh for $92 million.
Highwoods shares closed Tuesday at $42.53, up 34 cents. The stock is up 18 percent this year.