HIGHWOODS PROPERTIES, INC.

Results of Operations

Three Months Ended September 30, 2026 and 2025

Rental and Other Revenues

Rental and other revenues were $16.4 million, or 8.1%, higher in the third 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 $15.3 million, $10.6 million and $1.0 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. These increases were partially offset by a decrease of $10.3 million from property dispositions.

Operating Expenses

Rental property and other expenses were $5.7 million, or 8.6%, higher in the third quarter of 2026 as compared to 2025 primarily due to higher consolidated same property operating expenses and increases from property acquisitions in Raleigh, Charlotte and Dallas, which increased operating expenses by $4.6 million and $3.9 million, respectively. Consolidated same property operating expenses were higher primarily due to higher repairs and maintenance, utilities, contract services and property taxes. These increases were partially offset by a decrease of $2.5 million from property dispositions.

We recorded an impairment charge of $8.8 million in the third quarter of 2025 to lower the carrying amount of two non-core, out-of-service assets at Century Center in Atlanta to their estimated fair values. We recorded no such impairment in 2026.

Depreciation and amortization was $5.6 million, or 7.5%, higher in the third quarter of 2026 as compared to 2025 primarily due to property acquisitions in Raleigh, Charlotte and Dallas and higher consolidated same property lease related depreciation and amortization, partially offset by property dispositions.

General and administrative expenses were $0.9 million, or 9.5%, higher in the third quarter of 2026 as compared to 2025 primarily due to higher incentive compensation and employee benefits.

Interest Expense

Interest expense was $2.1 million, or 5.5%, higher in the third quarter of 2026 as compared to 2025 primarily due to higher average debt balances and lower capitalized interest.

Other Income

Other income was $1.3 million higher in the third quarter of 2026 as compared to 2025 primarily due to higher interest income from cash reserves.

Gains on Disposition of Property

Gains on disposition of property were $7.9 million higher in the third quarter of 2026 as compared to 2025. The 2026 gains primarily related to building dispositions in Richmond and Raleigh. The 2025 gain related to a building disposition in Richmond.

Equity in Earnings of Unconsolidated Affiliates

Equity in earnings of unconsolidated affiliates was $0.2 million higher in the third quarter of 2026 as compared to 2025 primarily due to higher average occupancy within our 23Springs and Granite Park Six joint ventures, 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 $0.17 higher in the third quarter of 2026 as compared to 2025 due to an increase in net income for the reasons discussed above.

Nine Months Ended September 30, 2026 and 2025

Rental and Other Revenues

Rental and other revenues were $45.8 million, or 7.6%, higher in the nine months ended September 30, 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 $47.2 million, $17.5 million and $2.8 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 $20.7 million from property dispositions.

Operating Expenses

Rental property and other expenses were $18.3 million, or 9.4%, higher in the nine months ended September 30, 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 $13.0 million and $11.6 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 $5.5 million from property dispositions.

We recorded an impairment charge of $8.8 million in the nine months ended September 30, 2025 to lower the carrying amount of two non-core, out-of-service assets at Century Center in Atlanta to their estimated fair values. We recorded no such impairment in 2026.

Depreciation and amortization expense was $16.1 million, or 7.3%, higher in the nine months ended September 30, 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 $1.4 million, or 4.4%, higher in the nine months ended September 30, 2026 as compared to 2025 primarily due to higher incentive compensation and employee benefits, partially offset by lower predevelopment cost write-offs.

Interest Expense

Interest expense was $11.2 million, or 9.9%, higher in the nine months ended September 30, 2026 as compared to 2025 primarily due to higher average debt balances and lower capitalized interest.

Other Income

Other income was $0.8 million higher in the nine months ended September 30, 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 and higher interest income from cash reserves and loans provided to our 2827 Peachtree and Midtown East joint ventures. These increases were partially offset by $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.

Gains on Disposition of Property

Gains on disposition of property were $21.7 million higher in the nine months ended September 30, 2026 as compared to 2025. The 2026 gains primarily related to building dispositions in Nashville, Richmond and Raleigh and a land parcel disposition in Richmond. The 2025 gains primarily related to building dispositions in Tampa and Richmond.

Equity in Earnings of Unconsolidated Affiliates

Equity in earnings of unconsolidated affiliates was $1.1 million higher in the nine months ended September 30, 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 23Springs and Granite Park Six joint ventures, 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 $0.23 higher in the nine months ended September 30, 2026 as compared to 2025 due to an increase in net income for the reasons discussed above.