HIGHWOODS PROPERTIES, INC. 10-K

ITEM 2. PROPERTIES Properties The following table sets forth information about our portfolio by geographic location as of December 31, 2025: Market Rentable Square Feet Occupancy Percentage of Annualized GAAP Rental Revenue (1) Raleigh 5,827,000 89.3 % 21.6 % Nashville 5,105,000 81.8 18.7 Atlanta 4,622,000 86.4 16.9 Charlotte 2,402,000 87.1 12.8 Tampa 2,523,000 88.8 10.3 Orlando 1,789,000 87.6 6.2 Richmond 1,740,000 84.9 4.8 Other 2,822,000 75.7 8.7 Total 26,830,000 85.3 % 100.0 % __________ (1) Annualized GAAP Rental Revenue is GAAP rental revenue (base rent plus cost recovery income, including straight-line rent) from our office properties for the month of December 2025 multiplied by 12. The following table sets forth the net changes in rentable square footage of our portfolio: Year Ended December 31, 2025 2024 2023 (in thousands) Acquisitions 757 — — Developments Placed In-Service 68 18 — Remeasurements/Other (1) (353) 575 5 Dispositions (842) (605) (383) Net Change in Rentable Square Footage (370) (12) (378) __________ (1) The decrease in square footage during 2025 was primarily due to two non-core assets encompassing 0.4 million rentable square feet that were taken out of service during 2025, which resulted from a change in our assumptions about the use of such assets. The increase in square footage during 2024 was due to the inclusion of in-service properties owned by consolidated and unconsolidated joint ventures (at our share). See Explanatory Note. The following table sets forth operating information about our portfolio: Average Occupancy Annualized GAAP Rent Per Square Foot (1) Annualized Cash Rent Per Square Foot (2) 2021 90.0 % $ 30.75 $ 29.63 2022 90.8 % $ 31.89 $ 30.51 2023 89.2 % $ 32.79 $ 32.18 2024 88.0 % $ 33.73 $ 33.18 2025 85.5 % $ 34.80 $ 33.71 __________ (1) Annualized GAAP Rent Per Square Foot is GAAP rental revenue (base rent plus cost recovery income, including straight-line rent) for the month of December of the respective year multiplied by 12, divided by total occupied rentable square footage. (2) Annualized Cash Rent Per Square Foot is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of December of the respective year multiplied by 12, divided by total occupied rentable square footage. 22 Table of Contents Customers The following table sets forth information concerning the 20 largest customers in our portfolio as of December 31, 2025: Customer Rentable Square Feet Annualized GAAP Rental Revenue (1) Percent of Total Annualized GAAP Rental Revenue (1) Weighted Average Remaining Lease Term in Years (in thousands) Bank of America 620,790 $ 34,316 4.31 % 8.6 Asurion 543,794 27,620 3.47 10.8 Federal Government 748,955 21,600 2.71 3.6 Metropolitan Life Insurance 667,228 20,631 2.59 5.2 Bridgestone Americas 506,128 19,089 2.40 11.7 PPG Industries 370,927 11,058 1.39 5.5 Advance Auto Parts 218,043 9,944 1.25 6.8 Mars Petcare 223,700 9,817 1.23 5.4 Vanderbilt University 294,389 9,342 1.17 3.8 J.P. Morgan Chase & Co. 183,864 6,464 0.81 2.4 CapFinancial Group 135,631 6,360 0.80 10.6 Albemarle Corporation 139,242 6,215 0.78 10.2 Deloitte 132,328 5,993 0.75 4.9 Lifepoint Corporate Services 202,991 5,978 0.75 3.2 Robinson Bradshaw & Hinson PA 101,502 5,712 0.72 14.4 Regus 169,833 5,564 0.70 4.6 Delta Community Credit Union 128,589 5,522 0.69 6.8 Global Payments 168,051 5,240 0.66 7.2 PNC Bank 146,394 4,707 0.59 2.9 Martin Marietta 125,432 4,509 0.57 10.3 Total 5,827,811 $ 225,681 28.34 % 7.3 __________ (1) Annualized GAAP Rental Revenue is GAAP rental revenue (base rent plus cost recovery income, including straight-line rent) for the month of December 2025 multiplied by 12. 23 Table of Contents Lease Expirations The following table sets forth scheduled lease expirations for existing leases in our portfolio as of December 31, 2025: Lease Expiring (1) Number of Leases Expiring Rentable Square Feet Subject to Expiring Leases Percentage of Leased Square Footage Represented by Expiring Leases Annualized GAAP Rental Revenue Under Expiring Leases (2) Average Annual GAAP Rental Rate Per Square Foot for Expirations Percent of Annualized GAAP Rental Revenue Represented by Expiring Leases (2) (in thousands) 2026 (3) 409 2,047,446 8.9 % $ 65,224 $ 31.86 8.2 % 2027 360 2,570,746 11.2 83,418 32.45 10.5 2028 299 2,423,458 10.6 80,438 33.19 10.1 2029 254 1,959,416 8.6 60,575 30.91 7.6 2030 258 2,798,559 12.2 88,245 31.53 11.1 2031 219 2,826,293 12.3 92,568 32.75 11.6 2032 111 1,455,151 6.4 58,592 40.27 7.4 2033 151 1,415,709 6.2 51,253 36.20 6.4 2034 57 1,455,125 6.4 65,301 44.88 8.2 2035 65 826,252 3.6 26,527 32.11 3.3 Thereafter 138 3,113,558 13.6 124,591 40.02 15.6 2,321 22,891,713 100.0 % $ 796,732 $ 34.80 100.0 % __________ (1) Expirations that have been renewed are reflected above based on the renewal expiration date. Expirations include leases related to completed not stabilized development properties but exclude leases related to developments in-process. (2) Annualized GAAP Rental Revenue is GAAP rental revenue (base rent plus cost recovery income, including straight-line rent) for the month of December 2025 multiplied by 12. (3) Includes 46,000 rentable square feet of leases that are on a month-to-month basis, which represent 0.2% of total annualized GAAP rental revenue. 24 Table of Contents Land Held for Development As of December 31, 2025, we estimate that we can develop approximately 4.2 million rentable square feet of office space on the wholly-owned development land that we consider core assets for our future development needs. Our core office development land is zoned and available for development, and nearly all of the land has utility infrastructure in place. We believe that our commercially zoned and unencumbered land gives us a development advantage over other commercial office development companies in many of our markets. We also own additional development land on which we or third parties can develop approximately 2.4 million square feet of mixed-use real estate projects, including retail and multi-family. Joint Venture Investments The following table sets forth information about our in-service joint venture investments by geographic location as of December 31, 2025: Rentable Square Feet Weighted Average Ownership Interest (1) Occupancy Market Atlanta 136,000 50.0 % 88.2 % Dallas 542,000 50.0 94.8 Kansas City (2) 292,000 50.0 88.9 Tampa (3) 152,000 80.0 100.0 Total 1,122,000 54.1 % 93.2 % __________ (1) Weighted Average Ownership Interest is calculated using Rentable Square Feet. (2) Excludes our 26.5% unconsolidated ownership interest in a real estate brokerage services company. (3) The Midtown West joint venture in Tampa is consolidated. In addition, as of December 31, 2025, we owned 50.0% interests in Granite Park Six (Dallas), 23Springs (Dallas) and Midtown East (Tampa), three unconsolidated joint ventures that are currently developing projects that have not yet been placed in service.