HIGHWOODS PROPERTIES, INC.

Results of Operations

Three Months Ended March 31, 2026 and 2025

Rental and Other Revenues

Rental and other revenues were $13.7 million, or 6.8%, higher in the first quarter of 2026 as compared to 2025 primarily due to increases from property acquisitions in Raleigh, Charlotte and Dallas and higher consolidated same property revenues, which increased rental and other revenues by $16.3 million and $1.7 million, respectively. Consolidated same property rental and other revenues were higher primarily due to higher average GAAP rents per rentable square foot, higher parking income, and higher cost recoveries, partially offset by lower termination fee income. These increases were partially offset by a decrease of $4.2 million from property dispositions. We expect rental and other revenues to be higher for the remainder of 2026 as compared to 2025 for similar reasons.

Operating Expenses

Rental property and other expenses were $6.1 million, or 9.4%, higher in the first quarter of 2026 as compared to 2025 primarily due to increases from property acquisitions in Raleigh, Charlotte and Dallas and higher consolidated same property operating expenses, which increased operating expenses by $4.8 million and $3.4 million, respectively. Consolidated same property operating expenses were higher primarily due to higher property taxes, utilities, and contract services. These increases were partially offset by a decrease of $1.4 million from property dispositions. We expect rental property and other expenses to be higher for the remainder of 2026 as compared to 2025 for similar reasons.

Depreciation and amortization was $6.1 million, or 8.6%, higher in the first quarter of 2026 as compared to 2025 primarily due to property acquisitions in Raleigh, Charlotte and Dallas, partially offset by property dispositions. We expect depreciation and amortization to be higher for the remainder of 2026 as compared to 2025 for similar reasons.

General and administrative expenses were $1.0 million, or 7.8%, higher in the first quarter of 2026 as compared to 2025 primarily due to higher long-term equity incentive compensation. We expect general and administrative expenses for the remainder of 2026 to be similar to 2025.

Interest Expense

Interest expense was $5.1 million, or 13.8%, higher in the first quarter of 2026 as compared to 2025 primarily due to higher average debt balances. We expect interest expense to be higher for the remainder of 2026 as compared to 2025 due to higher average debt balances and lower capitalized interest.

Other Income

Other income was $1.5 million higher in the first quarter of 2026 as compared to 2025 primarily due to the sale of our 26.5% interest in Kessinger/Hunter and Company, LC, a brokerage services firm in 2026.

Gains on Disposition of Property

Gains on disposition of property were $65.3 million lower in the first quarter of 2026 as compared to 2025. The 2026 gains related to building dispositions in Richmond. The 2025 gains related to building dispositions in Tampa.

Equity in Earnings of Unconsolidated Affiliates

Equity in earnings of unconsolidated affiliates was $1.7 million higher in the first quarter of 2026 as compared to 2025 primarily due to termination fee income recorded by our McKinney & Olive joint venture, partially offset by the sale of our 50.0% interest in the Highwoods-Markel Associates, LLC joint venture in 2025.

Earnings Per Common Share - Diluted

Diluted earnings per common share was $0.62 lower in the first quarter of 2026 as compared to 2025 due to a decrease in net income for the reasons discussed above.