HIGHWOODS PROPERTIES, INC.

Results of Operations

Three Months Ended June 30, 2026 and 2025

Rental and Other Revenues

Rental and other revenues were $15.8 million, or 7.9%, higher in the second quarter of 2026 as compared to 2025 primarily due to increases from property acquisitions in Raleigh, Charlotte and Dallas, higher consolidated same property revenues and recently completed development projects in Raleigh, which increased rental and other revenues by $15.6 million, $5.4 million and $1.2 million, respectively. Consolidated same property rental and other revenues were higher primarily due to higher average GAAP rents per rentable square foot, higher average occupancy, and higher cost recoveries, partially offset by lower termination fee income. These increases were partially offset by a decrease of $6.4 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 $6.5 million, or 10.2%, higher in the second 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 $4.3 million and $3.7 million, respectively. Consolidated same property operating expenses were higher primarily due to higher utilities, repairs and maintenance and contract services. These increases were partially offset by a decrease of $1.7 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 $4.4 million, or 5.9%, higher in the second 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 $0.4 million, or 4.1%, lower in the second quarter of 2026 as compared to 2025 primarily due to lower predevelopment cost write-offs. We expect general and administrative expenses to be higher for the remainder of 2026 as compared to 2025 due to higher salaries, benefits, and incentive compensation.

Interest Expense

Interest expense was $4.0 million, or 10.7%, higher in the second quarter of 2026 as compared to 2025 primarily due to higher average debt balances and lower capitalized interest. We expect interest expense to be higher for the remainder of 2026 as compared to 2025 for similar reasons.

Other Income

Other income was $2.1 million lower in the second quarter of 2026 as compared to 2025 primarily due to $3.0 million of proceeds received in 2025 from the Florida Department of Transportation for the impact of roadway improvements adjacent to a non-core property in Tampa. This decrease was partially offset by higher interest income from cash reserves and loans provided to our 2827 Peachtree and Midtown East joint ventures.

Gains on Disposition of Property

Gains on disposition of property were $79.0 million higher in the second quarter of 2026 as compared to 2025. The 2026 gains related to a building disposition in Nashville and a land parcel disposition in Richmond.

Equity in Earnings/(Losses) of Unconsolidated Affiliates

Equity in earnings/(losses) of unconsolidated affiliates was $0.7 million lower in the second quarter of 2026 as compared to 2025 primarily due to lower capitalized expenses within our 23Springs joint venture and the sale of our 50.0% interest in the Highwoods-Markel Associates, LLC joint venture in 2025, partially offset by higher average occupancy within our Granite Park Six joint venture.

Earnings Per Common Share - Diluted

Diluted earnings per common share was $0.68 higher in the second quarter of 2026 as compared to 2025 due to an increase in net income for the reasons discussed above.

Six Months Ended June 30, 2026 and 2025

Rental and Other Revenues

Rental and other revenues were $29.4 million, or 7.3%, higher in the first six months of 2026 as compared to 2025 primarily due to increases from property acquisitions in Raleigh, Charlotte and Dallas, higher consolidated same property revenues and recently completed development projects in Raleigh, which increased rental and other revenues by $31.9 million, $7.3 million and $1.8 million, respectively. Consolidated same property rental and other revenues were higher primarily due to higher average GAAP rents per rentable square foot, higher average occupancy, and higher cost recoveries, partially offset by lower termination fee income. These increases were partially offset by a decrease of $10.9 million from property dispositions.

Operating Expenses

Rental property and other expenses were $12.6 million, or 9.8%, higher in the first six months 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 $9.1 million and $7.3 million, respectively. Consolidated same property operating expenses were higher primarily due to higher utilities, property taxes, repairs and maintenance and contract services. These increases were partially offset by a decrease of $3.2 million from property dispositions.

Depreciation and amortization expense was $10.5 million, or 7.2%, higher in the first six months of 2026 as compared to 2025 primarily due to property acquisitions in Raleigh, Charlotte, and Dallas, partially offset by property dispositions.

General and administrative expenses were $0.6 million, or 2.4%, higher in the first six months of 2026 as compared to 2025 primarily due to higher long-term equity incentive compensation, partially offset by lower predevelopment cost write-offs.

Interest Expense

Interest expense was $9.1 million, or 12.2%, higher in the first six months of 2026 as compared to 2025 primarily due to higher average debt balances and lower capitalized interest.

Other Income

Other income was $0.5 million lower in the first six months of 2026 as compared to 2025 primarily due to $3.0 million of proceeds received in 2025 from the Florida Department of Transportation for the impact of roadway improvements adjacent to a non-core property in Tampa. This decrease was partially offset by the sale of our 26.5% interest in Kessinger/Hunter and Company, LC, a brokerage services firm, in 2026 and higher interest income from cash reserves and loans provided to our 2827 Peachtree and Midtown East joint ventures.

Gains on Disposition of Property

Gains on disposition of property were $13.8 million higher in the first six months of 2026 as compared to 2025. The 2026 gains related to building dispositions in Nashville and Richmond and a land parcel disposition in Richmond. The 2025 gains related to building dispositions in Tampa.

Equity in Earnings of Unconsolidated Affiliates

Equity in earnings of unconsolidated affiliates was $0.9 million higher in the first six months of 2026 as compared to 2025 primarily due to termination fee income recorded by our M+O JV, LLC joint venture and higher average occupancy within our Granite Park Six joint venture, partially offset by lower capitalized expenses within our 23Springs joint venture and 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 $0.06 higher in the first six months of 2026 as compared to 2025 due to an increase in net income for the reasons discussed above.