Highwoods Properties posted second-quarter results that bested Wall Street’s projections by a penny per share and announced new building projects in Greensboro and Nashville.
The Raleigh real estate investment trust reported after the markets closed Tuesday that funds from operations, a standard measure of profitability for REITs, totaled $75.2 million, or 77 cents per share. That compares to $74.6 million, or 80 cents per share, a year ago.
In the recent quarter, a land sale gain bolstered results by a penny; in the year-ago quarter, land sale gains totaled 6 cents per share.
Highwoods’ occupancy rate rose to 92.8 percent, up from 91.9 percent in the first quarter and 92.6 percent a year ago.
The new construction projects that Highwoods unveiled Tuesday include a 131,000-square-foot, $38.1 million office building in Nashville dubbed Seven Springs II. Construction is scheduled to begin before the end of the year and completion is targeted for mid-2017.
The building is in a Nashville submarket that has a 97.7 percent occupancy rate.
In addition, the company will begin construction of Enterprise V in Greensboro, a 131,200-square-foot costing $7.6 million.
Occupancy in the airport submarket where the building is situated is 98.1 percent; three Highwoods buildings nearby are 100 percent leased.
Highwoods also raised its FFO guidance for the year on the low end, while paring it back on the upper end. The end result is that the midpoint of its updated guidance is now 1 cent per share higher.
Highwoods now expects FFO to total between $3 and $3.06 per share. Its prior guidance forecast FFO ranging from $2.97 to $3.07.
The company, the largest office landlord in the Triangle, leased 1.2 million square feet of space across its markets during the quarter.
The company has $521 million worth of projects encompassing 1.6 million square feet in its development pipeline. Those projects are 72 percent pre-leased.
Earlier Tuesday, Highwoods shares closed at $42.14, down 53 cents. Its shares have declined 5 percent this year.