Supplemental operating information for the quarter ended June 30, 2007

EX-99.2 3 dex992.htm SUPPLEMENTAL OPERATING INFORMATION FOR THE QUARTER ENDED JUNE 30, 2007 Supplemental operating information for the quarter ended June 30, 2007

Exhibit 99.2

LOGO

Supplemental Information

June 30, 2007

Supplemental Information

Table of Contents

June 30, 2007


Schedule		Page
Corporate Information		i, ii and iii

Consolidated Statements of Income		1
Statement of Funds from Operations and Additional Information		2
Consolidated Balance Sheets		3
Estimated Net Asset Value		4
Components of Discontinued Operations		5
Capitalization		6
Long-Term Debt Summary		7
Long-Term Debt Detail		8
Portfolio Summary		9, 10 and 11
Occupancy Trends		12
Leasing Statistics		13, 14 and 15
Leasing Statistics by Market		16
Rental Rate Comparisons by Market		17
Lease Expirations		18 and 19
Office Lease Expirations by Market by Quarter		20
Industrial Lease Expirations by Market by Quarter		21
Office Lease Expirations by Market by Year		22
Industrial Lease Expirations by Market by Year		23
Customer Diversification		24
Same Property Performance		25
Acquisition Activity		26
Disposition Activity		27
Development Activity		28
Development Land		29
Unconsolidated Joint Ventures Assets, Debt and Liabilities		30
Unconsolidated Joint Ventures Income (Three Months)		31
Unconsolidated Joint Ventures Income (Six Months)		32
Joint Ventures Long-Term Debt Detail		33
Joint Ventures Portfolio Summary		34
Joint Ventures Lease Expirations		35
Joint Venture Acquisition and Disposition Activity		36
Joint Ventures Development		37

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 30 to 37, unless noted otherwise. Wholly-owned entities include properties classified as both continuing operations and discontinued operations.

All financial information contained in this document is “unaudited.” In addition, certain matters discussed in this supplemental, including estimates of net operating income, pre-leasing commitments and the cost, timing and stabilization of announced development projects, are forward-looking statements within the meaning of the federal securities laws. Although Highwoods believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from Highwoods’ current expectations include general economic conditions, local real estate conditions, the timely development and lease-up of properties, and the other risks detailed from time to time in the Company’s SEC reports.


Highwoods Properties, Inc.

Summary


*Amounts in thousands, except per share amounts and ratios*
	*Three Months Ended*
	06/30/07			03/31/07			12/31/06			09/30/06			06/30/06
Shares and units:
Common shares outstanding at end of period		57,131			56,711			56,211			55,635			54,131
Common units outstanding at end of period		4,062			4,115			4,733			5,014			5,234
Weighted average common shares outstanding - basic		56,460			56,040			55,740			54,470			53,879
Weighted average common shares outstanding - diluted		61,562			61,900			62,365			61,457			60,387

Share price:
At end of period	$	37.50		$	39.49		$	40.76		$	37.21		$	36.18
High close during period		43.84			46.95			41.31			38.15			36.18
Low close during period		37.50			37.99			36.40			35.39			29.56

Financial information:
Land sale gains, net of (impairments)	$	969		$	15,835		$	6,974		$	2,103		$	(74	)
Lease termination income		1,477			41			618			249			1,304
Straight line rental income		890			1,572			2,401			2,006			1,664
Capitalized interest		2,365			2,147			1,770			1,701			930
Impairments on depreciable properties		—			—			—			2,600			—
Gains on sales of depreciable properties		1,475			20,651			10,925			3,712			1,395
Gain from insurance settlement		—			4,128			—			—			—

Total debt/ total assets 1/		55.2	%		53.4	%		52.7	%		52.9	%		53.2	%
Total debt/ total market capitalization 1/		39.4	%		36.9	%		35.9	%		37.9	%		39.1	%

Funds from operations per share - diluted	$	0.58		$	0.91		$	0.71		$	0.53		$	0.54

Funds from operations per share - diluted, excluding certain items 2/	$	0.60		$	0.91		$	0.71		$	0.59		$	0.55

Wholly - owned property information:

In-Service rentable square feet:
Office		19,194			19,154			19,244			19,507			19,704
Industrial		6,280			6,280			6,281			6,605			6,706
Retail		1,317			1,326			1,327			1,431			1,408

Total		26,791			26,760			26,852			27,543			27,818


In-Service occupancy:
Office		88.5	%		89.3	%		89.0	%		88.1	%		87.1	%
Industrial		90.8	%		91.9	%		91.7	%		91.8	%		89.5	%
Retail		94.8	%		95.4	%		95.7	%		96.2	%		95.3	%

Total		89.3	%		90.0	%		89.4	%		88.1	%		87.7	%

1/	Includes financing obligations.

2/	Excludes impairments on depreciable assets, losses on debt extinguishments and preferred stock redemption charges.


Highwoods Properties, Inc.		Page i

Corporate Information

Board of Directors

Research Coverage

Thomas W. Adler

Gene H. Anderson

Kay N. Callison

Edward J. Fritsch

Lawrence S. Kaplan

Sherry A. Kellett

L. Glenn Orr Jr.

O. Temple Sloan Jr., Chairman

Corporate Officers

Edward J. Fritsch

President, Chief Executive Officer and Director

Michael E. Harris

Executive Vice President and Chief Operating Officer

Terry L. Stevens

Vice President, Chief Financial Officer

S. Hugh Esleeck

Treasurer

Julie M. Kelly

Vice President, Compliance and Internal Audit

Carman J. Liuzzo

Vice President, Investments

David J. Matthes

Corporate Vice President, Leasing

Art H. McCann

Chief Information Officer

Jeffrey D. Miller

Vice President, General Counsel and Secretary

Kevin E. Penn

Vice President, Strategy

Tabitha N. Zane

Vice President, Investor Relations and Corporate

Communications

Credit Suisse - North America

John Stewart - 212-538-3183

Deutsche Banc Securities

Lou Taylor - 212-469-4912

Friedman, Billings, Ramsey & Co., Inc.

Wilkes Graham - 703-312-9737

Green Street Advisors

Cedric Lachance - 949-640-8780

Morgan Stanley

David Cohen - 212-761-8564

Smith Barney Citigroup

Jonathan Litt - 212-816-0231

Stifel Nicolaus

John Guinee - 410-454-5520

Wachovia Securities

Chris Haley - 443-263-6773


Highwoods Properties, Inc.		ii

Corporate Information

Divisional Officers

Atlanta/Piedmont Triad

Gene H. Anderson - Senior Vice President

Atlanta, GA

James V. Bacchetta, Vice President

Piedmont Triad, NC

Gene H. Anderson, Senior Vice President

Orlando/Tampa

Michael F. Beale - Senior Vice President

Orlando, FL

Michael F. Beale, Senior Vice President

Tampa, FL

Dan Woodward, Vice President

Raleigh

Raleigh, NC

Thomas “Skip” Hill, Vice President

Richmond

Richmond, VA

Paul W. Kreckman, Vice President

Nashville/Memphis/Columbia/Greenville

W. Brian Reames - Senior Vice President

Nashville, TN; Columbia, SC; and Greenville, SC

W. Brian Reames, Senior Vice President

Memphis, TN

Steven L. Guinn, Vice President

Kansas City

Kansas City, MO

Barrett Brady, Senior Vice President

Corporate Headquarters

Highwoods Properties, Inc.

3100 Smoketree Court, Suite 600

Raleigh, NC 27604

919-872-4924

Stock Exchange

NYSE Trading Symbol: HIW

Investor Relations Contact

Tabitha Zane

Vice President, Investor Relations and Corporate Communications

Phone: 919-431-1529

Fax: 919-431-1439

E-mail: tabitha.zane@highwoods.com

Information Request

To request a standard Investor Relations package, Annual Report or to be added to our e-mail or fax list, please contact the Corporate Communications/IR Specialist at:

Phone: 919-431-1521

Email: HIW-IR@highwoods.com

The Company

Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered and self-managed equity real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. As of June 30, 2007, the Company owned or had an interest in 386 in-service office, industrial and retail properties encompassing approximately 34.1 million square feet. Highwoods also owned 693 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Maryland, Missouri, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our website at www.highwoods.com.

LOGO


Highwoods Properties, Inc.		iii

Consolidated Statements of Income


*Amounts in thousands, except per share amounts*
	*Six Months Ended*						*Three Months Ended*
	06/30/07			06/30/06			06/30/07			03/31/07			12/31/06			09/30/06			06/30/06
Rental and other revenues	$	217,157		$	203,871		$	108,458		$	108,699		$	108,465		$	104,278		$	102,837

Operating expenses:
Rental property and other expenses		78,301			72,998			39,190			39,111			41,337			39,207			36,895
Depreciation and amortization		60,299			56,249			30,547			29,752			30,199			28,453			28,618
Impairment of assets held for use		—			—			—			—			—			2,600
General and administrative		21,779			17,752			10,868			10,911			11,011			8,546			9,060

Total operating expenses		160,379			146,999			80,605			79,774			82,547			78,806			74,573

Interest expense:
Contractual		45,786			48,046			23,097			22,689			22,374			23,809			24,236
Amortization of deferred financing costs		1,175			1,326			609			566			492			557			582
Financing obligations		1,987			2,340			995			992			972			850			1,398

		48,948			51,712			24,701			24,247			23,838			25,216			26,216

Other income/(expense):
Interest and other income		3,637			3,123			2,119			1,518			2,709			1,178			1,146
Settlment of tenant bankruptcy claim		—			—			—			—			1,581			—			—
Loss on debt extinguishments		—			(467	)		—			—			(27	)		—			(467	)

		3,637			2,656			2,119			1,518			4,263			1,178			679

Income before disposition of property, insurance gain, minority interest and equity in earnings of unconsolidated affiliates		11,467			7,816			5,271			6,196			6,343			1,434			2,727

Gains on disposition of property, net		19,084			5,318			2,341			16,743			7,862			2,977			1,008
Gain from property insurance settlement		4,128			—			—			4,128			—			—			—
Minority interest		(3,065	)		(886	)		(438	)		(2,627	)		(1,086	)		(244	)		(353	)
Equity in earnings of unconsolidated affiliates		11,723			4,007			2,006			9,717			1,492			1,342			1,924

Income from continuing operations		43,337			16,255			9,180			34,157			14,611			5,509			5,306
Discontinued operations:
Income from discontinued operations, net of minority interest		152			2,121			13			139			585			805			682
Gains on sales of discontinued operations, net of minority interest		18,358			2,043			96			18,262			9,220			2,595			285

		18,510			4,164			109			18,401			9,805			3,400			967

Net income		61,847			20,419			9,289			52,558			24,416			8,909			6,273
Dividends on preferred stock		(7,959	)		(8,837	)		(3,846	)		(4,113	)		(4,113	)		(4,113	)		(4,113	)
Excess of preferred stock redemption cost over carrying value		(1,443	)		(1,803	)		(1,443	)		—			—			—			—

Net income available for common stockholders	$	52,445		$	9,779		$	4,000		$	48,445		$	20,303		$	4,796		$	2,160

Net income per common share - diluted:
Income from continuing operations	$	0.60		$	0.10		$	0.07		$	0.53		$	0.18		$	0.03		$	0.02
Income from discontinued operations		0.32			0.08			—			0.32			0.17			0.06			0.02

Net income	$	0.92		$	0.18		$	0.07		$	0.85		$	0.35		$	0.09		$	0.04

Weighted average common shares outstanding - diluted		61,709			60,470			61,562			61,900			62,365			61,457			60,387

Dividends declared and paid per common share	$	0.850		$	0.850		$	0.425		$	0.425		$	0.425		$	0.425		$	0.425


Highwoods Properties, Inc.		Page 1

Statement of Funds from Operations

and Additional Information


*Amounts in thousands, except per share amounts*
	*Six Months Ended*						*Three Months Ended*
	06/30/07			06/30/06			06/30/07			03/31/07			12/31/06			09/30/06			06/30/06
Funds from operations:
Net income	$	61,847		$	20,419		$	9,289		$	52,558		$	24,416		$	8,909		$	6,273
Dividends to preferred stockholders		(7,959	)		(8,837	)		(3,846	)		(4,113	)		(4,113	)		(4,113	)		(4,113	)
Excess of preferred stock redemption cost over carrying value		(1,443	)		(1,803	)		(1,443	)		—			—			—			—

Net income available for common stockholders		52,445			9,779			4,000			48,445			20,303			4,796			2,160
Add/(deduct):
Depreciation and amortization of real estate assets		59,054			54,671			29,939			29,115			29,451			27,692			27,876
(Gains) on disposition of depreciable properties		(2,280	)		(2,352	)		(1,372	)		(908	)		(888	)		(874	)		(1,082	)
Minority interest from the Operating Partnership in income from operations		2,717			557			270			2,447			927			127			115
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		5,744			5,353			2,878			2,866			3,048			2,790			2,678
(Gains) on disposition of depreciable properties		(7,158	)		—			—			(7,158	)		—			—			—
Discontinued operations:
Depreciation and amortization of real estate assets		(6	)		2,129			—			(6	)		467			824			1,010
(Gains) on disposition of depreciable properties		(19,846	)		(2,207	)		(103	)		(19,743	)		(10,037	)		(2,838	)		(313	)
Minority interest from the Operating Partnership in income from discontinued operations		1,500			377			8			1,492			869			321			95

Funds from operations	$	92,170		$	68,307		$	35,620		$	56,550		$	44,140		$	32,838		$	32,539

Funds from operations per share - diluted
Net income available for common stockholders	$	0.92		$	0.18		$	0.07		$	0.85		$	0.35		$	0.09		$	0.04
Add/(deduct):
Depreciation and amortization of real estate assets		0.96			0.90			0.49			0.47			0.47			0.45			0.46
(Gains) on disposition of depreciable properties		(0.04	)		(0.04	)		(0.02	)		(0.01	)		(0.01	)		(0.01	)		(0.02	)
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		0.09			0.09			0.04			0.04			0.05			0.04			0.05
(Gains) on disposition of depreciable properties		(0.12	)		—			—			(0.12	)		—			—			—
Discontinued operations:
Depreciation and amortization of real estate assets		—			0.04			—			—			0.01			0.01			0.02
(Gains) on disposition of depreciable properties		(0.32	)		(0.04	)		—			(0.32	)		(0.16	)		(0.05	)		(0.01	)

Funds from operations	$	1.49		$	1.13		$	0.58		$	0.91		$	0.71		$	0.53		$	0.54

Weighted average shares outstanding - diluted		61,709			60,470			61,562			61,900			62,365			61,457			60,387

Additional information: 1/
Funds from operations, excluding certain items 2/	$	93,613		$	70,557		$	37,063		$	56,550		$	44,167		$	36,162		$	33,006

Funds from operations per share, excluding certain items 2/	$	1.52		$	1.17		$	0.60		$	0.91		$	0.71		$	0.59		$	0.55

Straight line rental income	$	(2,462	)
Amortization of lease incentives		500
Depreciation of non-real estate assets		905
Ground lease straight line rent		95
Amortization of stock-based compensation		2,623
Amortization of deferred financing costs		1,175
Amortization of accumulated other comprehensive loss		285
Harborview non-cash FMV charge		268

Non-incremental revenue generating capital expenditures paid:
Building improvements		(8,390	)
2nd generation tenant improvements		(19,463	)
2nd generation lease commissions		(7,515	)

Common dividends and unit distributions paid		(51,700	)

1/	Increase or (decrease) to cash flows.

2/	Excludes impairments on depreciable assets, losses on debt extinguisments and preferred stock redemption charges.


Highwoods Properties, Inc.		Page 2

Consolidated Balance Sheets


*Dollars in thousands*
	06/30/07			12/31/06
Assets:
Real estate assets, at cost:
Land	$	353,096		$	345,548
Buildings and tenant improvements		2,639,080			2,573,032
Development in process		137,492			101,899
Land held for development		112,422			111,517

		3,242,090			3,131,996
Less-accumulated depreciation		(628,506	)		(588,307	)

Net real estate assets		2,613,584			2,543,689
Real estate and other assets, net, held for sale		3,213			35,446
Cash and cash equivalents		16,839			16,690
Restricted cash		3,780			2,027
Accounts receivable, net		23,662			23,347
Notes receivable, net		5,893			7,871
Accrued straight-line rents receivable, net		70,798			68,364
Investment in unconsolidated affiliates		59,611			60,359
Deferred financing and leasing costs, net		69,764			66,352
Prepaid expenses and other assets		21,158			20,708

Total Assets	$	2,888,302		$	2,844,853

Liabilities, Minority Interest and Stockholders’ Equity:
Mortgages and notes payable	$	1,557,571		$	1,465,129
Accounts payable, accrued expenses and other liabilities		157,250			156,737
Financing obligations		35,683			35,530

Total Liabilities		1,750,504			1,657,396
Minority interest		71,602			79,726
Stockholders’ Equity:
Preferred stock		157,445			197,445
Common stock		571			562
Additional paid-in capital		1,444,474			1,449,337
Distributions in excess of net earnings		(535,064	)		(538,098	)
Accumulated other comprehensive loss		(1,230	)		(1,515	)

Total Stockholders’ Equity		1,066,196			1,107,731

Total Liabilities, Minority Interest and Stockholders’ Equity	$	2,888,302		$	2,844,853


Highwoods Properties, Inc.		Page 3

Estimated Net Asset Value Ranges

As Released on February 14, 2007 — See Note Below


*Dollars in thousands, except per share amounts*
Note: The following table sets forth information that was reported in our Supplemental issued February 14, 2007 and has not been updated to reflect facts or circumstances or changes in financial and operating assumptions that may have occurred subsequent to such date. This information is based on a range of estimated capitalization rates and projected net operating income, among other things, and is not intended to be an asset-by-asset or enterprise valuation.
NOI Cap Rates:
Office		6.50	%		6.75	%		7.00	%
Retail		5.25	%		5.50	%		5.75	%
Industrial/Other		6.75	%		7.00	%		7.25	%

Weighted average		6.36	%		6.61	%		6.86	%

Wholly-Owned Properties Projected Net Operating Income 1/
Office	$	209,693		$	209,693		$	209,693
Retail		27,764			27,764			27,764
Industrial/Other		22,038			22,038			22,038

Total Net Operating Income	$	259,495		$	259,495		$	259,495

Wholly-Owned Properties Capitalized Value
Office	$	3,226,046		$	3,106,563		$	2,995,614
Retail		528,838			504,800			482,852
Industrial/Other		326,489			314,829			303,972

Total capitalized value - wholly owned properties	$	4,081,373		$	3,926,192		$	3,782,439

Highwoods’ Share of Joint Ventures (Includes Consolidated JVs)
Net operating income - projected	$	34,608		$	34,608		$	34,608
Capitalization rates		6.50	%		6.75	%		7.00	%

Capitalized value - joint venture interests	$	532,431		$	512,711		$	494,400

Total In-Service Property Value	$	4,613,804		$	4,438,903		$	4,276,839

Value of Other income
Development, leasing and management fees	$	6,061		$	6,061		$	6,061
Capitalization rate		20	%		20	%		20	%

Value of other income	$	30,306		$	30,306		$	30,306

Add Other assets:
Development pipeline investment at 135% of cost 2/	$	204,555		$	204,555		$	204,555
Low occupancy assets at NBV 3/		80,478			80,478			80,478
Property held for sale at net sales price		68,801			68,801			68,801
Land held for development at market value		139,009			139,009			139,009
Cash and cash equivalents		14,388			14,388			14,388
Restricted cash		1,764			1,764			1,764
Accounts receivable, net		23,200			23,200			23,200
Notes receivable and prepaid expenses		25,035			25,035			25,035

Other assets total	$	557,229		$	557,229		$	557,229

Gross Value of Assets	$	5,201,339		$	5,026,438		$	4,864,374

Deductions:
Total liabilities	$	157,709		$	157,709		$	157,709
Mortgages and notes payable, at estimated fair value		1,445,554			1,445,554			1,445,554
Preferred stock, at redemption value		197,445			197,445			197,445
Highwoods’ share of joint ventures liabilities		281,565			281,565			281,565

Estimated Net Asset Value	$	3,119,065		$	2,944,164		$	2,782,100

Estimated diluted common shares and operating units for 2007		62,600			62,600			62,600

Estimated Net Asset Value Per Share	$	49.83		$	47.03		$	44.44

1/	NOI excludes straight line income, lease termination fee income, NOI related to completed not stablilized developments, and NOI on certain low occupancy assets.

2/	Represents average increase in value based on projected development yields on cost compared to projected market valuations.

3/	Consolidated Properties NOI is adjusted to eliminate the net NOI for certain low occupancy properties for which a NOI capitalization approach is not appropriate. For those low occupancy assets, their net book value (after depreciation) is added as an estimate of their current valuation.


Highwoods Properties, Inc.		Page 4

Components of Discontinued Operations


*Dollars in thousands*
	*Six Months Ended*						*Three Months Ended*
	06/30/07			06/30/06			06/30/07			03/31/07			12/31/06			09/30/06			06/30/06
Rental and other revenues	$	313		$	7,440		$	28		$	285		$	2,149		$	3,571		$	3,013

Operating expenses:
Rental property and other expenses		162			2,811			14			148			967			1,526			1,173
Depreciation and amortization		(6	)		2,129			—			(6	)		467			824			1,010
General and administrative		—			—			—			—			12			75			—

Total operating expenses		156			4,940			14			142			1,446			2,425			2,183

Interest expense		—			205			—			—			78			277			102
Other income		7			39			—			7			12			14			21

Income before minority interest and gains on sales of discontinued operations		164			2,334			14			150			637			883			749
Minority interest in discontinued operations		(12	)		(213	)		(1	)		(11	)		(52	)		(78	)		(67	)

Income from discontinued operations before gains on sales of discontinued operations		152			2,121			13			139			585			805			682
Gains on sales of discontinued operations		19,846			2,207			103			19,743			10,037			2,838			313
Minority interest in discontinued operations		(1,488	)		(164	)		(7	)		(1,481	)		(817	)		(243	)		(28	)

Gains on sales of discontinued operations, net of minority interest		18,358			2,043			96			18,262			9,220			2,595			285

Total discontinued operations	$	18,510		$	4,164		$	109		$	18,401		$	9,805		$	3,400		$	967


Highwoods Properties, Inc.		Page 5

Capitalization


*Dollars, shares, and units in thousands*
	06/30/07		03/31/07		12/31/06		09/30/06		06/30/06
Long-Term Debt (see pages 7 & 8):	$	1,557,571	$	1,487,509	$	1,465,129	$	1,461,105	$	1,466,839

Financing Obligations:	$	35,683	$	35,529	$	35,530	$	36,098	$	36,002

Preferred Stock (at liquidation value):
Series A 8 5/8% Perpetual Preferred Stock	$	104,945	$	104,945	$	104,945	$	104,945	$	104,945
Series B 8% Perpetual Preferred Stock		52,500		92,500		92,500		92,500		92,500

Total preferred stock	$	157,445	$	197,445	$	197,445	$	197,445	$	197,445

Common Shares and Units Outstanding:
Common stock outstanding		57,131		56,711		56,211		55,635		54,131
Minority interest partnership units		4,062		4,115		4,733		5,014		5,234

Total common shares and units outstanding		61,193		60,826		60,944		60,649		59,365
Stock price at period end	$	37.50	$	39.49	$	40.76	$	37.21	$	36.18

Market value of common equity	$	2,294,738	$	2,402,019	$	2,484,077	$	2,256,749	$	2,147,826

Total market capitalization with debt and obligations	$	4,045,437	$	4,122,502	$	4,182,181	$	3,951,397	$	3,848,112

See pages 30 to 37 for information regarding Highwoods’ Joint Ventures.


Highwoods Properties, Inc.		Page 6

Long-Term Debt Summary


*Dollars in thousands*
	06/30/07			03/31/07			12/31/06			09/30/06			06/30/06
Balances Outstanding:

Secured:
Conventional fixed rate 1/	$	659,741		$	662,036		$	730,732		$	691,662		$	695,832
Variable rate debt		1,014			13,688			10,897			12,943			13,007

Secured total		660,755			675,724			741,629			704,605			708,839

Unsecured:
Fixed rate bonds and notes		748,816			748,785			350,000			460,000			460,000
Credit facility		148,000			63,000			373,500			296,500			298,000

Unsecured total		896,816			811,785			723,500			756,500			758,000

Total	$	1,557,571		$	1,487,509		$	1,465,129		$	1,461,105		$	1,466,839


End of Period Weighted Average Interest Rates:

Secured:
Conventional fixed rate		6.63	%		6.63	%		6.78	%		6.92	%		6.93	%
Variable rate debt		7.11	%		6.55	%		6.55	%		5.93	%		5.85	%

Secured total		6.63	%		6.63	%		6.78	%		6.91	%		6.91	%

Unsecured:
Fixed rate bonds		6.61	%		6.61	%		7.48	%		7.37	%		7.37	%
Credit facility		6.12	%		6.12	%		6.14	%		6.22	%		5.96	%

Unsecured total		6.53	%		6.57	%		6.79	%		6.92	%		6.81	%

Average		6.57	%		6.60	%		6.78	%		6.91	%		6.86	%


Maturity Schedule:
				*Future Maturities of Debt*									Average Interest Rate
Year				Secured Debt 2/			Unsecured Debt			Total Debt 2/			Average Interest Rate
2007				$	—		$	—		$	—			—
2008					—			100,000			100,000			7.13	%
2009					138,736			198,000			336,736			7.12	%
2010					1,014			—			1,014			—
2011					—			—			—			—
2012					212,800			—			212,800			6.94	%
2013					270,444			—			270,444			5.90	%
2014					37,761			—			37,761			5.79	%
2015					—			—			—			—
2016					—			—			—			—
Thereafter					—			598,816			598,816			6.40	%

Total maturities				$	660,755		$	896,816		$	1,557,571			6.57	%

Weighted average maturity = 6.4 years

1/	Includes a $22.8 million loan related to a consolidated 20% owned joint venture (Harborview) and $37.8 million in loans at June 30, 2007 related to a consolidated 50% joint venture (Markel).

2/	All periods exclude annual principal amortization.


Highwoods Properties, Inc.		Page 7

Long-Term Debt Detail


*Dollars in thousands*
Secured Loans Lender	Rate		Maturity Date	Loan Balance 06/30/07		Undepreciated Book Value of Assets Secured
Northwestern Mutual	7.05	%	Jan-12	$	190,000	$	290,807
Northwestern Mutual	6.03	%	Mar-13		136,706		169,706
Massachusetts Mutual Life Ins. Co. 1/	5.68	%	Dec-13		122,137		202,259
Monumental Life Ins. Co. 2/	7.77	%	Nov-09		81,536		201,921
Monumental Life Ins. Co. 2/	7.87	%	Nov-09		51,449		—
Metropolitan Life Ins. Co. 3/	6.06	%	Oct-12		22,800		38,953
Principal Life Insurance Company 4/	5.79	%	Jan-14		11,576		14,888
Principal Life Insurance Company 4/	5.79	%	Jan-14		11,576		18,781
Massachusetts Mutual Life Ins. Co. 1/	6.48	%	Dec-13		10,777		—
Principal Life Insurance Company 4/	5.74	%	Jan-14		9,129		14,285
Principal Life Insurance Company 4/	5.89	%	Jan-14		5,480		7,514
Lutheran Brotherhood	6.75	%	Apr-09		3,747		8,027
Security Life of Denver	8.85	%	Aug-09		2,004		9,392
American United Life	9.00	%	Jun-13		824		3,321
Wells Fargo 5/	7.13	%	May-10		720		820
Wells Fargo 5/	7.07	%	May-10		294		1,750

	6.63	%			660,755	$	982,424

Unsecured Bonds
Bonds	7.13	%	Feb-08		100,000
Bonds	8.13	%	Jan-09		50,000
Bonds	5.85	%	Mar-17		398,816
Bonds	7.50	%	Apr-18		200,000

	6.61	%			748,816

Unsecured Loans
Credit facility 5/ 6/	6.12	%	May-09		148,000

Total Debt	6.57	%		$	1,557,571

1/	These two loans are secured by the same assets.

2/	These two loans are secured by the same assets.

3/	Loan relates to a consolidated 20% owned joint venture (Harborview).

4/	Loans relate to a consolidated 50% owned joint venture (Markel).

5/	Floating rate loan based on one month libor.

6/	Maturity date excludes one-year extension option.


Highwoods Properties, Inc.		Page 8

Portfolio Summary - Wholly-Owned Properties Only 1/


*(Rentable Square Feet)*
	06/30/07		03/31/07		12/31/06		09/30/06		06/30/06
Office Industrial & Retail
In-Service:
Office 2/	19,194,000		19,154,000		19,244,000		19,507,000		19,704,000
Industrial	6,280,000		6,280,000		6,281,000		6,605,000		6,706,000
Retail 3/	1,317,000		1,326,000		1,327,000		1,431,000		1,408,000

Total 4/	26,791,000		26,760,000		26,852,000		27,543,000		27,818,000

Development Completed - Not Stabilized:
Office 2/	560,000		600,000		504,000		311,000		153,000
Industrial	681,000		418,000		418,000		—		—
Retail	—		—		—		—		—

Total	1,241,000		1,018,000		922,000		311,000		153,000

Development - In Process:
Office 2/	1,387,000		1,166,000		1,357,000		1,405,000		1,268,000
Industrial	120,000		383,000		383,000		681,000		418,000
Retail	—		—		—		—		23,000

Total	1,507,000		1,549,000		1,740,000		2,086,000		1,709,000

Total:
Office 2/	21,141,000		20,920,000		21,105,000		21,223,000		21,125,000
Industrial	7,081,000		7,081,000		7,082,000		7,286,000		7,124,000
Retail 3/	1,317,000		1,326,000		1,327,000		1,431,000		1,431,000

Total 4/	29,539,000		29,327,000		29,514,000		29,940,000		29,680,000

Same Property
Office 2/	18,909,000		18,909,000		18,909,000		18,909,000		18,909,000
Industrial	6,280,000		6,280,000		6,280,000		6,280,000		6,280,000
Retail	1,295,000		1,295,000		1,295,000		1,295,000		1,295,000

Total	26,484,000		26,484,000		26,484,000		26,484,000		26,484,000

Percent Leased/Pre-Leased:
In-Service:
Office	88.5	%	89.3	%	89.0	%	88.1	%	87.1	%
Industrial	90.8	%	91.9	%	91.7	%	91.8	%	89.5	%
Retail	94.8	%	95.4	%	95.7	%	96.2	%	95.3	%

Total	89.3	%	90.2	%	90.0	%	89.4	%	88.1	%

Development Completed - Not Stabilized:
Office	69.9	%	62.8	%	62.8	%	52.3	%	17.0	%
Industrial	61.0	%	44.0	%	44.0	%	—		—
Retail	—		—		—		—		—

Total	65.0	%	55.1	%	54.3	%	52.3	%	17.0	%

Development - In Process:
Office	72.5	%	55.0	%	55.3	%	58.4	%	53.7	%
Industrial	0.0	%	50.1	%	—		27.0	%	44.0	%
Retail	—		—		—		—		100.0	%

Total	66.7	%	53.8	%	43.1	%	48.2	%	51.9	%

Same Property
Office	88.5	%	89.1	%	89.1	%	88.3	%	87.4	%
Industrial	90.8	%	91.9	%	91.7	%	91.5	%	89.9	%
Retail	94.7	%	95.3	%	95.6	%	96.1	%	95.0	%

Total	89.4	%	90.1	%	90.0	%	89.4	%	88.3	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Substantially all of our Office properties are located in suburban markets.

3/	Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

4/	Excludes for sale residential units and minor for rent apartment buildings.


Highwoods Properties, Inc.		Page 9

Portfolio Summary

(Continued)


*As of June 30, 2007*
Summary by Location, Wholly-Owned Properties Only 1/:
	Rentable Square Feet				Percentage of Annualized Cash Revenue 2/
Market	Rentable Square Feet		Occupancy		Office		Industrial		Retail		Total
Raleigh 3/	3,554,000		86.5	%	14.6	%	—		—		14.6%
Atlanta	5,514,000		92.9	%	10.4	%	4.0	%	—		14.4%
Kansas City	2,215,000	4/	89.5	%	4.3	%	—		9.6	%	13.9%
Tampa	2,418,000		96.5	%	13.5	%	—		—		13.5%
Nashville	2,875,000		90.9	%	13.0	%	—		—		13.0%
Piedmont Triad 5/	5,235,000		85.7	%	6.8	%	3.7	%	—		10.5%
Richmond	2,024,000		90.0	%	8.8	%	—		—		8.8%
Memphis	1,276,000		92.7	%	5.7	%	—		—		5.7%
Greenville	1,109,000		76.3	%	3.5	%	0.1	%	—		3.6%
Orlando	218,000		98.9	%	1.1	%	—		—		1.1%
Other	100,000		73.6	%	0.5	%	—		—		0.5%
Columbia	253,000		72.0	%	0.4	%	—		—		0.4%

Total	26,791,000		89.3	%	82.6	%	7.8	%	9.6	%	100.0%


Summary by Location, Including Joint Venture Properties:
	Rentable Square Feet				Percentage of Annualized Cash Revenue 2/ 6/
Market	Rentable Square Feet		Occupancy		Office		Industrial		Retail		Multi-Family		Total
Atlanta	6,349,000		93.4	%	10.7	%	3.5	%	—		—		14.2	%
Kansas City	2,933,000	4/	87.2	%	4.8	%	—		8.4	%	—		13.2	%
Raleigh	3,732,000		87.2	%	13.1	%	—		—		—		13.1	%
Tampa	2,623,000		96.8	%	12.1	%	—		—		—		12.1	%
Nashville	2,875,000		90.8	%	11.5	%	—		—		—		11.5	%
Piedmont Triad	5,599,000		86.7	%	6.5	%	3.2	%	—		—		9.7	%
Richmond	2,437,000		91.7	%	8.3	%	—		—		—		8.3	%
Memphis	1,276,000		92.7	%	5.1	%	—		—		—		5.1	%
Des Moines	2,474,000		93.2	%	3.4	%	0.5	%	0.1	%	0.4	%	4.4	%
Orlando	2,071,000		91.4	%	4.4	%	—		—		—		4.4	%
Greenville	1,109,000		76.3	%	3.0	%	0.1	%	—		—		3.1	%
Other	210,000		87.4	%	0.5	%	—		—		—		0.5	%
Columbia	253,000		72.1	%	0.3	%	—		—		—		0.3	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%

Total	34,089,000		90.1	%	83.8	%	7.3	%	8.5	%	0.4	%	100.0	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/	Raleigh Market encompasses Raleigh, Durham, Cary, and Research Triangle metropolitan area.

4/	Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

5/	Piedmont Triad Market encompasses Greensboro, Winston-Salem metropolitan area.

6/	Includes Highwoods’ share of Joint Venture Annualized Rental Revenue, see page 34.


Highwoods Properties, Inc.		Page 10

Portfolio Summary - Wholly-Owned Properties Only

(Continued)


*As of June 30, 2007*
	Office Properties 1/					Industrial
Market	Rentable Square Feet	Occupancy		Percentage of Office Annualized Cash Revenue 2/		Rentable Square Feet	Occupancy		Percentage of Industrial Annualized Cash Revenue 2/
Raleigh	3,554,000	86.5	%	17.6	%	—	—		—
Tampa	2,418,000	96.5	%	16.3	%	—	—		—
Nashville	2,875,000	90.9	%	15.8	%	—	—		—
Atlanta	2,460,000	89.4	%	12.6	%	3,054,000	95.8	%	51.5	%
Richmond	2,024,000	90.0	%	10.6	%	—	—		—
Piedmont Triad	2,116,000	82.3	%	8.2	%	3,119,000	88.1	%	47.2	%
Memphis	1,276,000	92.7	%	7.0	%	—	—		—
Kansas City	894,000	81.9	%	5.2	%	4,000	46.5	%	0.1	%
Greenville	1,006,000	81.5	%	4.2	%	103,000	25.4	%	1.2	%
Orlando	218,000	98.9	%	1.4	%	—	—		—
Columbia	253,000	72.0	%	0.5	%	—	—		—
Other	100,000	73.6	%	0.6	%	—	—		—

	19,194,000	88.5	%	100.0	%	6,280,000	90.8	%	100.0	%


	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Cash Revenue 2/
Kansas City 3/	1,317,000	94.8	%	100.0	%

	1,317,000	94.8	%	100.0	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/	Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.


Highwoods Properties, Inc.		Page 11

Occupancy Trends - Office, Industrial and Retail Properties 1/


Market	Measurement	06/30/07		03/31/07		12/31/06		09/30/06		06/30/06
Atlanta	Rentable Square Feet	5,514,000		5,514,000		5,515,000		5,584,000		5,584,000
	Occupancy	92.9	%	92.7	%	94.0	%	92.4	%	91.8	%
	Current Properties 2/	92.9	%	92.7	%	94.0	%	92.7	%	92.2	%

Columbia	Rentable Square Feet	253,000		253,000		252,000		252,000		252,000
	Occupancy	72.0	%	71.0	%	48.7	%	49.4	%	49.8	%
	Current Properties 2/	72.0	%	71.0	%	48.5	%	49.2	%	49.5	%

Greenville	Rentable Square Feet	1,109,000		1,109,000		1,109,000		1,109,000		1,110,000
	Occupancy	76.3	%	77.2	%	75.3	%	75.0	%	68.8	%
	Current Properties 2/	76.3	%	77.2	%	75.2	%	75.0	%	68.8	%

Kansas City 3/	Rentable Square Feet	2,215,000		2,224,000		2,224,000		2,329,000		2,306,000
	Occupancy	89.5	%	89.9	%	90.1	%	90.7	%	89.9	%
	Current Properties 2/	89.4	%	89.8	%	89.9	%	90.3	%	89.4	%

Memphis	Rentable Square Feet	1,276,000		1,276,000		1,197,000		1,197,000		1,197,000
	Occupancy	92.7	%	92.8	%	91.8	%	91.9	%	89.7	%
	Current Properties 2/	92.2	%	92.3	%	91.8	%	91.9	%	89.7	%

Nashville	Rentable Square Feet	2,875,000		2,875,000		2,876,000		2,875,000		2,874,000
	Occupancy	90.9	%	92.4	%	91.6	%	92.8	%	90.8	%
	Current Properties 2/	90.9	%	92.4	%	91.6	%	92.8	%	90.8	%

Orlando	Rentable Square Feet	218,000		218,000		218,000		218,000		218,000
	Occupancy	98.9	%	98.9	%	100.0	%	100.0	%	100.0	%
	Current Properties 2/	98.9	%	98.9	%	100.0	%	100.0	%	100.0	%

Piedmont Triad	Rentable Square Feet	5,235,000		5,195,000		5,195,000		5,589,000		5,598,000
	Occupancy	85.7	%	88.3	%	88.7	%	89.9	%	88.6	%
	Current Properties 2/	86.4	%	88.3	%	88.7	%	89.5	%	88.6	%

Raleigh	Rentable Square Feet	3,554,000		3,554,000		3,810,000		3,812,000		4,101,000
	Occupancy	86.5	%	86.6	%	86.1	%	82.6	%	83.0	%
	Current Properties 2/	86.5	%	86.6	%	86.6	%	82.8	%	82.9	%

Richmond	Rentable Square Feet	2,024,000		2,024,000		2,024,000		1,954,000		1,954,000
	Occupancy	90.0	%	89.8	%	89.8	%	88.6	%	88.0	%
	Current Properties 2/	89.7	%	89.4	%	89.5	%	88.6	%	88.0	%

Tampa	Rentable Square Feet	2,418,000		2,418,000		2,332,000		2,524,000		2,524,000
	Occupancy	96.5	%	98.2	%	97.7	%	96.0	%	93.6	%
	Current Properties 2/	96.4	%	98.1	%	97.7	%	96.8	%	95.5	%

Total 4/	Rentable Square Feet	26,691,000		26,660,000		26,752,000		27,443,000		27,718,000
	Occupancy	89.3	%	90.2	%	90.0	%	89.4	%	88.1	%

	Current Properties 2/	89.4	%	90.1	%	90.0	%	89.4	%	88.3	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Only includes properties that were owned and in-service for all periods shown.

3/	Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

4/	Excludes a 100,000 square foot building located in South Florida.


Highwoods Properties, Inc.		Page 12

Leasing Statistics

Office Portfolio 1/


	Three Months Ended
	6/30/07 2/			3/31/07 3/			12/31/06 4/			9/30/06 5/			6/30/06 6/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		166			130			137			140			141			143
Rentable square footage leased		865,958			726,080			868,941			915,289			950,460			865,346
Square footage of Renewal Deals		590,542			451,125			601,796			681,640			486,998			562,420
Renewed square footage (% of total)		68.2	%		62.1	%		69.3	%		74.5	%		51.2	%		65.0	%
New Leases square footage (% of total)		31.8	%		37.9	%		30.7	%		25.5	%		48.8	%		35.0	%
Weighted average per rentable square foot over the lease term:
Base rent	$	20.13		$	18.25		$	19.72		$	19.23		$	17.29		$	18.92
Tenant improvements		(2.00	)		(1.70	)		(1.77	)		(1.56	)		(1.71	)		(1.75	)
Leasing commissions 7/		(0.63	)		(0.59	)		(0.56	)		(0.46	)		(0.48	)		(0.54	)
Rent concessions		(0.21	)		(0.06	)		(0.22	)		(0.11	)		(0.22	)		(0.16	)

Effective rent		17.29			15.90			17.17			17.10			14.88			16.47
Expense stop		(6.04	)		(5.06	)		(5.45	)		(5.04	)		(5.53	)		(5.42	)

Equivalent effective net rent	$	11.25		$	10.84		$	11.72		$	12.06		$	9.35		$	11.05

Weighted average term in years		4.5			5.0			5.2			4.5			4.5			4.7

Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	8,589,754		$	7,604,253		$	9,392,949		$	7,994,295		$	8,416,490		$	8,399,548
Rentable square feet		865,958			726,080			868,941			915,289			950,460			865,346

Per rentable square foot	$	9.92		$	10.47		$	10.81		$	8.73		$	8.86		$	9.71

Leasing Commissions:
Total dollars committed under signed leases 7/	$	2,303,936		$	2,107,213		$	2,256,508		$	2,144,582		$	2,198,017		$	2,202,051
Rentable square feet		865,958			726,080			868,941			915,289			950,460			865,346

Per rentable square foot	$	2.66		$	2.90		$	2.60		$	2.34		$	2.31		$	2.54

Total:
Total dollars committed under signed leases	$	10,893,690		$	9,711,466		$	11,649,457		$	10,138,877		$	10,614,507		$	10,601,599
Rentable square feet		865,958			726,080			868,941			915,289			950,460			865,346

Per rentable square foot	$	12.58		$	13.38		$	13.41		$	11.08		$	11.17		$	12.25

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Includes 213K square feet of leases that start in 2009 or later.

3/	Includes 98K square feet of leases that start in 2009 or later.

4/	Includes 17K square feet of leases that start in 2009 or later.

5/	Includes 179K square feet of leases that start in 2008 or later.

6/	Includes 74K square feet of leases that start in 2008 or later.

7/	Excludes a full allocation of internal leasing costs.


Highwoods Properties, Inc.		Page 13

Leasing Statistics

Industrial Portfolio


	Three Months Ended
	6/30/07 1/			3/31/07			12/31/06			9/30/06			6/30/06 2/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		18			14			17			23			36			22
Rentable square footage leased		575,033			188,562			539,939			485,936			974,807			552,855
Square footage of Renewal Deals		489,312			175,579			315,423			237,061			543,537			352,182
Renewed square footage (% of total)		85.1	%		93.1	%		58.4	%		48.8	%		55.8	%		63.7	%
New Leases square footage (% of total)		14.9	%		6.9	%		41.6	%		51.2	%		44.2	%		36.3	%

Weighted average per rentable square foot over the lease term:
Base rent	$	3.82		$	4.63		$	3.81		$	4.13		$	3.44		$	3.97
Tenant improvements		(0.23	)		(0.20	)		(0.45	)		(0.31	)		(0.17	)		(0.27	)
Leasing commissions 3/		(0.06	)		(0.04	)		(0.14	)		(0.09	)		(0.07	)		(0.08	)
Rent concessions		(0.05	)		(0.02	)		(0.05	)		(0.11	)		(0.01	)		(0.05	)

Effective rent		3.48			4.37			3.17			3.62			3.19			3.57
Expense stop		(0.19	)		(0.24	)		(0.08	)		(0.17	)		(0.10	)		(0.16	)

Equivalent effective net rent	$	3.29		$	4.13		$	3.09		$	3.45		$	3.09		$	3.41

Weighted average term in years		2.3			2.5			5.2			3.8			2.9			3.3

Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	528,135		$	142,102		$	1,323,790		$	732,593		$	895,575		$	724,439
Rentable square feet		575,033			188,562			539,939			485,936			974,807			552,855

Per rentable square foot	$	0.92		$	0.75		$	2.45		$	1.51		$	0.92		$	1.31

Leasing Commissions:
Total dollars committed under signed leases 3/	$	142,246		$	23,647		$	433,927		$	109,087		$	144,376		$	170,657
Rentable square feet		575,033			188,562			539,939			485,936			974,807			552,855

Per rentable square foot	$	0.25		$	0.13		$	0.80		$	0.22		$	0.15		$	0.31

Total:
Total dollars committed under signed leases	$	670,380		$	165,749		$	1,757,717		$	841,680		$	1,039,951		$	895,096
Rentable square feet		575,033			188,562			539,939			485,936			974,807			552,855

Per rentable square foot	$	1.17		$	0.88		$	3.26		$	1.73		$	1.07		$	1.62

1/	Includes 5K square feet of leases that start in 2008 or later.

2/	Includes 14K square feet of leases that start in 2008 or later.

3/	Excludes a full allocation of internal leasing costs.


Highwoods Properties, Inc.		Page 14

Leasing Statistics

Retail Portfolio


	Three Months Ended
	6/30/07			3/31/07 1/			12/31/06			09/30/06			06/30/06			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		8			9			8			8			5			8
Rentable square footage leased		14,721			41,357			23,748			26,472			13,573			23,974
Square footage of Renewal Deals		7,072			39,171			9,855			17,179			3,919			15,439
Renewed square footage (% of total)		48.0	%		94.7	%		41.5	%		64.9	%		28.9	%		64.4	%
New Leases square footage (% of total)		52.0	%		5.3	%		58.5	%		35.1	%		71.1	%		35.6	%

Weighted average per rentable square foot over the lease term:
Base rent	$	33.29		$	23.23		$	18.27		$	24.75		$	30.32		$	25.97
Tenant improvements		(2.57	)		(0.12	)		(0.08	)		(1.40	)		(4.28	)		(1.69	)
Leasing commissions 2/		(1.25	)		(0.24	)		(0.41	)		(0.61	)		(1.04	)		(0.71	)
Rent concessions		0.00			0.00			(0.20	)		0.00			0.00			(0.04	)

Effective rent		29.47			22.87			17.58			22.74			25.00			23.53
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00

Equivalent effective net rent	$	29.47		$	22.87		$	17.58		$	22.74		$	25.00		$	23.53

Weighted average term in years		7.0			4.2			8.6			5.2			10.8			7.2

Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	335,337		$	27,507		$	15,000		$	288,272		$	838,555		$	300,934
Rentable square feet		14,721			41,357			23,748			26,472			13,573			23,974

Per rentable square foot	$	22.78		$	0.67		$	0.63		$	10.89		$	61.78		$	12.55

Leasing Commissions:
Total dollars committed under signed leases 2/	$	83,077		$	1,981		$	1,981		$	46,048		$	63,681		$	39,354
Rentable square feet		14,721			41,357			23,748			26,472			13,573			23,974

Per rentable square foot	$	5.64		$	0.05		$	0.08		$	1.74		$	4.69		$	1.64

Total:
Total dollars committed under signed leases	$	418,414		$	29,488		$	16,981		$	334,320		$	902,236		$	340,288
Rentable square feet		14,721			41,357			23,748			26,472			13,573			23,974

Per rentable square foot	$	28.42		$	0.71		$	0.72		$	12.63		$	66.47		$	14.19

1/	Includes 17K square feet of leases that start in 2009 or later.

2/	Excludes a full allocation of internal leasing costs.


Highwoods Properties, Inc.		Page 15

Leasing Statistics by Market

For the Three Months Ended As of 6/30/07


Office Portfolio 1/ Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Raleigh	188,528	4.4	$	21.08	$	13.38	$	2.92
Nashville	157,158	4.5		20.14		8.52		2.48
Memphis	107,576	7.5		21.81		9.51		3.30
Atlanta	104,459	4.4		19.64		12.40		2.58
Greenville	86,569	4.1		16.82		14.94		3.63
Tampa	65,811	3.3		20.43		2.68		1.43
Richmond	62,096	3.7		18.32		6.27		1.82
Piedmont Triad	51,259	3.1		17.56		4.14		0.48
Kansas City	24,931	4.1		21.16		9.86		4.84
Orlando	17,571	3.2		19.56		5.28		0.30

	865,958	4.5	$	19.92	$	9.92	$	2.66


Industrial Portfolio Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Piedmont Triad	471,303	2.0	$	3.62	$	0.54	$	0.12
Atlanta	103,730	3.6		4.43		2.63		0.83

	575,033	2.3	$	3.77	$	0.92	$	0.25


Retail Portfolio Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF
Kansas City	14,721	7.0	$	33.29	$	22.78	$	5.64

	14,721	7.0	$	33.29	$	22.78	$	5.64

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Lease commissions per square foot excludes capitalized internal leasing costs.


Highwoods Properties, Inc.		Page 16

Rental Rate Comparisons by Market

For the Three Months Ended As of 6/30/07


Office Portfolio 1/ Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Raleigh	188,528	$	21.08	$	19.52	8.0	%
Nashville	157,158		20.14		19.14	5.3	%
Memphis	107,576		21.81		19.21	13.5	%
Atlanta	104,459		19.64		18.99	3.4	%
Greenville	86,569		16.82		16.85	-0.2	%
Tampa	65,811		20.43		21.23	-3.8	%
Richmond	62,096		18.32		17.09	7.2	%
Piedmont Triad	51,259		17.56		17.09	2.8	%
Kansas City	24,931		21.16		20.29	4.3	%
Orlando	17,571		19.56		16.29	20.1	%

GAAP Rent Growth	865,958	$	19.92	$	18.84	5.7	%

Cash Rent Growth	865,958	$	19.44	$	19.77	-1.7	%


Industrial Portfolio Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Piedmont Triad	471,303	$	3.62	$	3.39	6.9	%
Atlanta	103,730		4.43		5.55	-20.1	%

GAAP Rent Growth	575,033	$	3.77	$	3.76	0.3	%

Cash Rent Growth	575,033	$	3.77	$	3.92	-4.0	%


Retail Portfolio Market	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Kansas City	14,721	$	33.29	$	29.42	13.2	%

GAAP Rent Growth	14,721	$	33.29	$	29.42	13.2	%

Cash Rent Growth	14,721	$	31.85	$	30.87	3.2	%

Average Cash Rental Rates for All In Place Leases at: 1/ 3/



Type	06/30/07			06/30/06			06/30/05			06/30/04			06/30/03
Office	$	19.26		$	18.16		$	17.64		$	17.49		$	17.36
Industrial		5.19			5.10			5.02			4.68			4.55
Retail 2/		30.94			28.07			27.80			25.88			25.24

Weighted average rate	$	16.40		$	15.51		$	15.44		$	14.70		$	13.94

Annual % growth rate		5.7	%		0.5	%		5.0	%		5.5	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Excludes percentage rent.

3/	Average cash rental rates represent June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12 and divided by the related leased square feet.


Highwoods Properties, Inc.		Page 17

Lease Expirations

June 30, 2007


*Dollars in thousands*
Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Office: 2/
2007 /3	603,515	3.5	%	$	12,207	$	20.23	3.7	%
2008	2,013,849	11.6	%		38,848		19.29	11.7	%
2009	2,752,125	15.9	%		53,871		19.57	16.1	%
2010	2,348,374	13.6	%		49,209		20.95	14.8	%
2011	2,821,194	16.3	%		52,924		18.76	15.8	%
2012	2,110,777	12.2	%		41,459		19.64	12.4	%
2013	896,769	5.2	%		16,845		18.78	5.1	%
2014	648,561	3.8	%		12,530		19.32	3.8	%
2015	817,617	4.7	%		16,204		19.82	4.9	%
2016	729,773	4.2	%		13,367		18.32	4.0	%
2017 and thereafter	1,550,626	9.0	%		25,648		16.54	7.7	%

	17,293,180	100.0	%	$	333,112	$	19.26	100.0	%

Industrial:
2007 /4	241,179	4.0	%	$	1,983	$	8.22	6.3	%
2008	1,072,244	17.8	%		5,584		5.21	17.8	%
2009	1,132,855	18.7	%		5,829		5.15	18.7	%
2010	827,240	13.7	%		4,393		5.31	14.0	%
2011	682,640	11.3	%		3,612		5.29	11.5	%
2012	363,425	6.0	%		1,721		4.74	5.5	%
2013	210,052	3.5	%		1,176		5.60	3.8	%
2014	372,265	6.2	%		1,687		4.53	5.4	%
2015	233,882	3.9	%		877		3.75	2.8	%
2016	264,597	4.4	%		972		3.67	3.1	%
2017 and thereafter	634,240	10.5	%		3,466		5.46	11.1	%

	6,034,619	100.0	%	$	31,300	$	5.19	100.0	%

1/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

3/	Includes 95,000 square feet of leases that are on a month to month basis or 0.5% of total annualized revenue.

4/	Includes 53,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

Note: 2007 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.


Highwoods Properties, Inc.		Page 18

Lease Expirations

June 30, 2007

(Continued)


*Dollars in thousands*
Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Retail:
2007 2/	32,199	2.6	%	$	807	$	25.06	2.1	%
2008	116,159	9.3	%		3,308		28.48	8.6	%
2009	139,813	11.2	%		4,039		28.89	10.5	%
2010	97,973	7.8	%		3,739		38.16	9.7	%
2011	75,164	6.0	%		2,231		29.68	5.8	%
2012	156,201	12.5	%		4,761		30.48	12.3	%
2013	62,767	5.0	%		2,514		40.05	6.5	%
2014	79,410	6.4	%		1,496		18.84	3.9	%
2015	127,995	10.2	%		4,174		32.61	10.8	%
2016	65,526	5.2	%		2,641		40.30	6.8	%
2017 and thereafter	295,874	23.8	%		8,938		30.21	23.0	%

	1,249,081	100.0	%	$	38,648	$	30.94	100.0	%

Total:
2007 3/ 4/	876,893	3.6	%	$	14,997	$	17.10	3.7	%
2008	3,202,252	13.0	%		47,740		14.91	11.8	%
2009	4,024,793	16.3	%		63,739		15.84	15.9	%
2010	3,273,587	13.3	%		57,341		17.52	14.2	%
2011	3,578,998	14.6	%		58,767		16.42	14.6	%
2012	2,630,403	10.7	%		47,941		18.23	11.9	%
2013	1,169,588	4.8	%		20,535		17.56	5.1	%
2014	1,100,236	4.5	%		15,713		14.28	3.9	%
2015	1,179,494	4.8	%		21,255		18.02	5.3	%
2016	1,059,896	4.3	%		16,980		16.02	4.2	%
2017 and thereafter	2,480,740	10.1	%		38,052		15.34	9.4	%

	24,576,880	100.0	%	$	403,060	$	16.40	100.0	%

1/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/	Includes 8,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue.

3/	Includes 156,000 square feet of leases that are on a month to month basis or 0.6% of total annualized revenue.

4/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

Note: 2007 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.


Highwoods Properties, Inc.		Page 19

Office Lease Expirations by Market by Quarter 1/


*Dollars in thousands*
			*Three Months Ended*
			09/30/07 2/			12/31/07			03/31/08			06/30/08			Total
Atlanta	RSF			155,191			6,764			325,688			2,191			489,834
	% of Total Office RSF			0.9	%		0.0	%		1.9	%		0.0	%		2.8	%
	Annualized Cash Revenue	3/	$	2,667		$	108		$	5,406		$	17		$	8,198
	% of Total Office Annl Cash Rev			0.8	%		0.0	%		1.6	%		0.0	%		2.5	%

Columbia	RSF			0			3,258			0			0			3,258
	% of Total Office RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue	3/	$	—		$	61		$	—		$	—		$	61
	% of Total Office Annl Cash Rev			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

Greenville	RSF			7,029			0			37,994			20,922			65,945
	% of Total Office RSF			0.0	%		0.0	%		0.2	%		0.1	%		0.4	%
	Annualized Cash Revenue	3/	$	148		$	—		$	706		$	410		$	1,264
	% of Total Office Annl Cash Rev			0.0	%		0.0	%		0.2	%		0.1	%		0.4	%

Kansas City	RSF			29,789			20,702			14,839			11,395			76,725
	% of Total Office RSF			0.2	%		0.1	%		0.1	%		0.1	%		0.4	%
	Annualized Cash Revenue	3/	$	642		$	448		$	286		$	220		$	1,596
	% of Total Office Annl Cash Rev			0.2	%		0.1	%		0.1	%		0.1	%		0.5	%

Memphis	RSF			16,566			3,939			57,489			41,596			119,590
	% of Total Office RSF			0.1	%		0.0	%		0.3	%		0.2	%		0.7	%
	Annualized Cash Revenue	3/	$	333		$	72		$	1,243		$	884		$	2,532
	% of Total Office Annl Cash Rev			0.1	%		0.0	%		0.4	%		0.3	%		0.8	%

Nashville	RSF			61,894			5,877			61,066			48,527			177,364
	% of Total Office RSF			0.4	%		0.0	%		0.4	%		0.3	%		1.0	%
	Annualized Cash Revenue	3/	$	1,200		$	121		$	1,231		$	943		$	3,495
	% of Total Office Annl Cash Rev			0.4	%		0.0	%		0.4	%		0.3	%		1.0	%

Orlando	RSF			1,358			6,340			3,610			0			11,308
	% of Total Office RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue	3/	$	33		$	166		$	96		$	—		$	295
	% of Total Office Annl Cash Rev			0.0	%		0.0	%		0.0	%		0.0	%		0.1	%

Piedmont Triad	RSF			6,856			19,406			175,766			29,565			231,593
	% of Total Office RSF			0.0	%		0.1	%		1.0	%		0.2	%		1.3	%
	Annualized Cash Revenue	3/	$	156		$	304		$	2,892		$	407		$	3,759
	% of Total Office Annl Cash Rev			0.0	%		0.1	%		0.9	%		0.1	%		1.1	%

Raleigh	RSF			99,170			31,996			112,916			50,103			294,185
	% of Total Office RSF			0.5	%		0.2	%		0.7	%		0.3	%		1.7	%
	Annualized Cash Revenue	3/	$	2,072		$	603		$	1,758		$	963		$	5,396
	% of Total Office Annl Cash Rev			0.6	%		0.2	%		0.5	%		0.3	%		1.6	%

Richmond	RSF			27,408			24,900			110,970			42,976			206,254
	% of Total Office RSF			0.2	%		0.1	%		0.6	%		0.2	%		1.2	%
	Annualized Cash Revenue	3/	$	530		$	522		$	2,297		$	838		$	4,187
	% of Total Office Annl Cash Rev			0.2	%		0.2	%		0.7	%		0.3	%		1.3	%

Tampa	RSF			47,261			12,879			24,465			38,985			123,590
	% of Total Office RSF			0.3	%		0.1	%		0.1	%		0.2	%		0.7	%
	Annualized Cash Revenue	3/	$	1,249		$	358		$	613		$	932		$	3,152
	% of Total Office Annl Cash Rev			0.4	%		0.1	%		0.2	%		0.3	%		0.9	%

Other	RSF			14,932			0			1,351			14,967			31,250
	% of Total Office RSF			0.1	%		0.0	%		0.0	%		0.1	%		0.2	%
	Annualized Cash Revenue	3/	$	393		$	22		$	36		$	509		$	960
	% of Total Office Annl Cash Rev			0.1	%		0.0	%		0.0	%		0.2	%		0.3	%

Total	RSF			467,454			136,061			926,154			301,227			1,830,896
	% of Total Office RSF			2.7	%		0.8	%		5.4	%		1.7	%		10.5	%
	Annualized Cash Revenue	3/	$	9,423		$	2,785		$	16,564		$	6,123		$	34,895
	% of Total Office Annl Cash Rev			2.8	%		0.8	%		5.0	%		1.8	%		10.5	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Includes 95,000 square feet of leases that are on a month to month basis or 0.5% of total annualized revenue.

3/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		Page 20

Industrial Lease Expirations by Market by Quarter


*Dollars in thousands*
			*Three Months Ended*
			09/30/07 1/			12/31/07			03/31/08			06/30/08			Total
Atlanta	RSF			55,952			65,024			153,753			223,335			498,064
	% of Total Industrial RSF			0.9	%		1.1	%		2.5	%		3.7	%		8.3	%
	Annualized Cash Revenue	2/	$	290		$	337		$	711		$	1,242		$	2,580
	% of Total Industrial Annl Cash Rev			1.0	%		1.1	%		2.3	%		4.0	%		8.3	%
Greenville	RSF			16,081			0			0			5,350			21,431
	% of Total Industrial RSF			0.3	%		0.0	%		0.0	%		0.1	%		0.4	%
	Annualized Cash Revenue	2/	$	257		$	—		$	—		$	62		$	319
	% of Total Industrial Annl Cash Rev			0.8	%		0.0	%		0.0	%		0.2	%		1.0	%
Kansas City	RSF			0			0			0			0			0
	% of Total Industrial RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue	2/	$	—		$	—		$	—		$	—		$	—
	% of Total Industrial Annl Cash Rev			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Piedmont Triad	RSF			60,457			43,665			367,468			13,092			484,682
	% of Total Industrial RSF			1.0	%		0.7	%		6.1	%		0.2	%		8.0	%
	Annualized Cash Revenue	2/	$	679		$	421		$	1,594		$	194		$	2,888
	% of Total Industrial Annl Cash Rev			2.2	%		1.3	%		5.1	%		0.6	%		9.2	%
Total	RSF			132,490			108,689			521,221			241,777			1,004,177
	% of Total Industrial RSF			2.2	%		1.8	%		8.6	%		4.0	%		16.6	%
	Annualized Cash Revenue	2/	$	1,226		$	758		$	2,305		$	1,498		$	5,787
	% of Total Industrial Annl Cash Rev			4.0	%		2.4	%		7.4	%		4.8	%		18.5	%

1/	Includes 53,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		Page 21

Office Lease Expirations by Market by Year 1/


*Dollars in thousands*
			2007 2/			2008			2009			2010			Thereafter
Atlanta	RSF			161,955			397,878			343,020			85,236			1,209,969
	% of Total Office RSF			0.9	%		2.3	%		2.0	%		0.5	%		7.0	%
	Annualized Cash Revenue	3/	$	2,774		$	6,899		$	5,907		$	1,673		$	24,649
	% of Total Office Annl Cash Rev			0.8	%		2.1	%		1.8	%		0.5	%		7.4	%

Columbia	RSF			3,258			21,107			8,409			6,475			143,069
	% of Total Office RSF			0.0	%		0.1	%		0.0	%		0.0	%		0.8	%
	Annualized Cash Revenue	3/	$	61		$	306		$	132		$	105		$	989
	% of Total Office Annl Cash Rev			0.0	%		0.1	%		0.0	%		0.0	%		0.3	%

Greenville	RSF			7,029			78,679			60,122			53,206			621,229
	% of Total Office RSF			0.0	%		0.5	%		0.3	%		0.3	%		3.6	%
	Annualized Cash Revenue	3/	$	148		$	1,491		$	1,021		$	894		$	10,365
	% of Total Office Annl Cash Rev			0.0	%		0.4	%		0.3	%		0.3	%		3.1	%

Kansas City	RSF			50,491			80,215			125,877			119,208			379,989
	% of Total Office RSF			0.3	%		0.5	%		0.7	%		0.7	%		2.2	%
	Annualized Cash Revenue	3/	$	1,090		$	1,637		$	2,531		$	3,128		$	8,929
	% of Total Office Annl Cash Rev			0.3	%		0.5	%		0.8	%		0.9	%		2.7	%

Memphis	RSF			20,505			173,118			208,791			181,982			597,830
	% of Total Office RSF			0.1	%		1.0	%		1.2	%		1.1	%		3.5	%
	Annualized Cash Revenue	3/	$	405		$	3,715		$	4,113		$	3,676		$	11,255
	% of Total Office Annl Cash Rev			0.1	%		1.1	%		1.2	%		1.1	%		3.4	%

Nashville	RSF			67,771			209,877			689,569			474,160			1,244,431
	% of Total Office RSF			0.4	%		1.2	%		4.0	%		2.7	%		7.2	%
	Annualized Cash Revenue	3/	$	1,321		$	4,232		$	13,549		$	9,401		$	24,049
	% of Total Office Annl Cash Rev			0.4	%		1.3	%		4.1	%		2.8	%		7.2	%

Orlando	RSF			7,698			3,610			11,482			79,163			113,590
	% of Total Office RSF			0.0	%		0.0	%		0.1	%		0.5	%		0.7	%
	Annualized Cash Revenue	3/	$	200		$	96		$	176		$	1,795		$	2,305
	% of Total Office Annl Cash Rev			0.1	%		0.0	%		0.1	%		0.5	%		0.7	%

Piedmont Triad	RSF			26,262			243,649			144,553			218,001			1,107,937
	% of Total Office RSF			0.2	%		1.4	%		0.8	%		1.3	%		6.4	%
	Annualized Cash Revenue	3/	$	461		$	4,005		$	2,370		$	3,383		$	17,204
	% of Total Office Annl Cash Rev			0.1	%		1.2	%		0.7	%		1.0	%		5.2	%

Raleigh	RSF			131,166			419,017			553,216			351,904			1,728,401
	% of Total Office RSF			0.8	%		2.4	%		3.2	%		2.0	%		10.0	%
	Annualized Cash Revenue	3/	$	2,674		$	8,280		$	11,295		$	6,535		$	30,130
	% of Total Office Annl Cash Rev			0.8	%		2.5	%		3.4	%		2.0	%		9.0	%

Richmond	RSF			52,308			251,298			209,659			237,653			1,171,415
	% of Total Office RSF			0.3	%		1.5	%		1.2	%		1.4	%		6.8	%
	Annualized Cash Revenue	3/	$	1,052		$	4,974		$	3,992		$	4,421		$	21,027
	% of Total Office Annl Cash Rev			0.3	%		1.5	%		1.2	%		1.3	%		6.3	%

Tampa	RSF			60,140			119,083			390,642			513,407			1,249,966
	% of Total Office RSF			0.3	%		0.7	%		2.3	%		3.0	%		7.2	%
	Annualized Cash Revenue	3/	$	1,607		$	2,666		$	8,656		$	13,564		$	27,894
	% of Total Office Annl Cash Rev			0.5	%		0.8	%		2.6	%		4.1	%		8.4	%

Other	RSF			14,932			16,318			6,785			27,979			7,491
	% of Total Office RSF			0.1	%		0.1	%		0.0	%		0.2	%		0.0	%
	Annualized Cash Revenue	3/	$	415		$	545		$	129		$	634		$	183
	% of Total Office Annl Cash Rev			0.1	%		0.2	%		0.0	%		0.2	%		0.1	%

Total	RSF			603,515			2,013,849			2,752,125			2,348,374			9,575,317
	% of Total Office RSF			3.5	%		11.6	%		15.9	%		13.6	%		55.4	%
	Annualized Cash Revenue	3/	$	12,208		$	38,846		$	53,871		$	49,209		$	178,979
	% of Total Office Annl Cash Rev			3.7	%		11.7	%		16.1	%		14.8	%		53.8	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Includes 95,000 square feet of leases that are on a month to month basis or 0.5% of total annualized revenue.

3/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		Page 22

Industrial Lease Expirations by Market by Year


*Dollars in thousands*
			2007 1/			2008			2009			2010			Thereafter
Atlanta	RSF			120,976			561,511			330,555			294,369			1,767,784
	% of Total Industrial RSF			2.0	%		9.3	%		5.5	%		4.9	%		29.3	%
	Annualized Cash Revenue	2/	$	626		$	2,947		$	2,102		$	1,668		$	8,804
	% of Total Industrial Annl Cash Rev			2.0	%		9.4	%		6.7	%		5.3	%		28.1	%

Greenville	RSF			16,081			5,350			4,794			0			0
	% of Total Industrial RSF			0.3	%		0.1	%		0.1	%		0.0	%		0.0	%
	Annualized Cash Revenue	2/	$	257		$	62		$	43		$	—		$	—
	% of Total Industrial Annl Cash Rev			0.8	%		0.2	%		0.1	%		0.0	%		0.0	%

Kansas City	RSF			0			0			1,756			0			0
	% of Total Industrial RSF			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue	2/	$	—		$	—		$	20		$	—		$	—
	% of Total Industrial Annl Cash Rev			0.0	%		0.0	%		0.1	%		0.0	%		0.0	%

Piedmont Triad	RSF			104,122			505,383			795,750			532,871			993,317
	% of Total Industrial RSF			1.7	%		8.4	%		13.2	%		8.8	%		16.5	%
	Annualized Cash Revenue	2/	$	1,100		$	2,576		$	3,664		$	2,725		$	4,706
	% of Total Industrial Annl Cash Rev			3.5	%		8.2	%		11.7	%		8.7	%		15.0	%

Total	RSF			241,179			1,072,244			1,132,855			827,240			2,761,101
	% of Total Industrial RSF			4.0	%		17.8	%		18.8	%		13.7	%		45.8	%
	Annualized Cash Revenue	2/	$	1,983		$	5,585		$	5,829		$	4,393		$	13,510
	% of Total Industrial Annl Cash Rev			6.3	%		17.8	%		18.6	%		14.0	%		43.2	%

1/	Includes 53,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		Page 23

Customer Diversification 1/

June 30, 2007


*Dollars in thousands*
Top 20 Customers Customer	RSF		Annualized Cash Revenue 2/		Percent of Annualized Cash Revenue 2/		Average Remaining Lease Term in Years
Federal Government	1,506,642		$	27,983	6.94	%	7.9
AT&T	672,986			13,349	3.31	%	1.6
Price Waterhouse Coopers	358,611			9,714	2.41	%	2.8
State of Georgia	367,986			7,420	1.84	%	2.7
T-Mobile USA	205,855			5,606	1.39	%	6.4
Metropolitan Life Insurance	262,586			5,040	1.25	%	9.5
Lockton Companies	156,255			4,089	1.01	%	7.7
Volvo	278,940			3,941	0.98	%	2.9
Syniverse Technologies	198,750			3,869	0.96	%	9.3
Northern Telecom	246,000			3,651	0.91	%	0.7
SCI Services 3/	162,784			3,555	0.88	%	10.1
BB&T	209,237			3,277	0.81	%	5.1
US Airways	182,775			3,139	0.78	%	4.2
Fluor Enterprises	165,476			2,994	0.74	%	4.5
Jacobs Engineering Group	181,794			2,643	0.66	%	8.5
Vanderbilt University	126,617			2,443	0.61	%	8.3
Lifepoint Corporate Services	122,703			2,413	0.60	%	4.0
Icon Clinical Research	110,909			2,382	0.59	%	6.2
Wachovia	97,792			2,219	0.55	%	2.9
Bank of America	73,004			1,968	0.49	%	5.8

	5,687,702		$	111,695	27.71	%	5.5


By Industry Category	Percent of Annualized Cash Revenue 2/
Professional, Scientific, and Technical Services	20.0	%
Finance/Banking	10.1	%
Insurance	9.4	%
Government/Public Administration	8.7	%
Retail Trade	7.7	%
Telecommunication	7.5	%
Manufacturing	6.9	%
Wholesale Trade	6.2	%
Health Care and Social Assistance	5.4	%
Real Estate Rental and Leasing	3.6	%
Accommodation and Food Services	2.8	%
Information	2.8	%
Administrative and Support Services	2.7	%
Transportation and Warehousing	2.6	%
Other Services (except Public Administration)	2.3	%
Educational Services	1.3	%

	100.0	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/	Morgan Stanley acquired SCI Services (Saxon Capital, Inc.) on December 4, 2006.


Highwoods Properties, Inc.		Page 24

Same Property Performance


*Dollars in thousands*
	Three months ended June 30,						Percentage Change
	2007			2006			Percentage Change
Rental revenues	$	98,939		$	95,326		3.8	%
Straight line rent		266			1,863		-85.7	%
Lease termination fees		1,477			464		218.3	%
Operating expenses		(37,423	)		(35,173	)	-6.4	%

Net operating income	$	63,259		$	62,480		1.2	%

Average occupancy		89.7	%		87.6	%	2.4	%

Rentable square feet		26,484,000			26,484,000


	Six months ended June 30,						Percentage Change
	2007			2006			Percentage Change
Rental revenues	$	199,550		$	190,082		5.0	%
Straight line rent		981			4,117		-76.2	%
Lease termination fees		1,515			1,136		33.4	%
Operating expenses		(74,455	)		(69,971	)	-6.4	%

Net operating income	$	127,591		$	125,364		1.8	%

Average occupancy		89.7	%		88.1	%	1.8	%

Rentable square feet		26,484,000			26,484,000


	Second Quarter: 2007 vs 2006				June YTD: 2007 vs 2006
Market	NOI Percentage Change		Occupancy Percentage Change		NOI Percentage Change		Occupancy Percentage Change
Atlanta	2.3	%	1.3	%	3.5	%	1.7	%
Columbia	32.0	%	44.0	%	77.0	%	50.2	%
Greenville	7.7	%	7.3	%	6.1	%	6.1	%
Kansas City	-0.3	%	0.0	%	0.0	%	-0.3	%
Memphis	3.1	%	2.7	%	3.1	%	2.2	%
Nashville	10.0	%	1.2	%	2.7	%	0.4	%
Orlando	23.8	%	-2.4	%	10.6	%	0.5	%
Piedmont Triad	-13.7	%	3.0	%	-9.7	%	0.2	%
Raleigh	2.6	%	3.9	%	4.7	%	4.2	%
Richmond	-1.0	%	0.3	%	-2.4	%	-1.1	%
Tampa	2.0	%	3.0	%	8.5	%	4.5	%

	1.2	%	2.4	%	1.8	%	1.8	%


Highwoods Properties, Inc.		Page 25

Acquisition Activity


*Dollars in thousands*

Name	Market	Type	Date Acquired	Square Footage	Total Cost
First quarter 2007:
None

Second quarter 2007:
None


Highwoods Properties, Inc.		Page 26

Disposition Activity

Dollars in thousands

Name

Market

Type 1/

Date

Sold

Square
Footage

Occupancy

Gross Sales
Price

First quarter 2007:

1740-90 Century Center

Atlanta

01/17/07

69,000

N/A

9,530

Red Oak

Raleigh

02/02/07

65,000

68.6

Laurel

Raleigh

02/02/07

40,000

85.2

Global Software

Raleigh

02/02/07

93,000

90.4

Magnolia

Raleigh

02/02/07

59,000

68.1

257,000

79.0

30,416

First quarter totals

326,000

79.0

39,946

Second quarter 2007:

Colonial Shops

Kansas City

04/25/07

9,000

100.0

1,001

Second quarter totals

9,000

100.0

1,001

2007 totals

335,000

79.6

40,947

1/	The letters “O” and “R” represent Office and Retail, respectively.

2/	This property was scheduled for demolition after its disposition. All tenants vacated this property and it was removed from Highwoods’ in-service portfolio prior to 12/31/06.


Highwoods Properties, Inc.		Page 27

Development Activity


*Dollars in thousands*
In - Process Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 06/30/07		Pre- Leasing %		Estimated Completion Date	Estimated Stabilization Date
Office:
Dept. of Homeland Security	Atlanta	O	91,000	$	21,700	$	18,184	100	%	3Q 07	3Q 07
Healthways	Nashville	O	255,000		58,300		33,578	100	%	2Q 08	2Q 08
Berkshire	Orlando	O	99,000		15,096		11,012	61	%	3Q 07	2Q 08
Centregreen V	Raleigh	O	98,000		15,662		4,431	51	%	1Q 08	3Q 09
Glenlake VI	Raleigh	O	122,000		23,208		5,196	15	%	1Q 08	3Q 09
RBC Plaza 2/	Raleigh	O	292,000		76,056		15,492	65	%	4Q 08	4Q 09
FAA	Atlanta	O	50,000		10,213		696	100	%	2Q 08	2Q 08
Jackson FBI	Jackson, MS	O	110,000		31,713		261	100	%	4Q 08	4Q 08
Highwoods Baycenter I	Tampa	O	208,000		42,024		31,933	57	%	3Q 07	4Q 08
Comcast	Memphis	O	62,000		9,449		958	100	%	3Q 08	3Q 08

Total or Weighted Average			1,387,000	$	303,421	$	121,741	72	%

						$	$Weighted	74	%

Industrial:
Enterprise III	Piedmont Triad	I	120,000	$	5,502	$	2,892	0	%	3Q 07	4Q 08

For Sale Residential: 3/								340
RBC Plaza Condominiums 4/	Raleigh	RC	139 Units	$	42,380	$	7,992	133 Contracts		4Q 08	2Q 09

In-Process Total or Weighted Average 4/			1,507,000	$	351,303	$	132,625	67	%

						$	$Weighted	73	%

Completed Not Stabilized 5/
Office:
Glenlake IV	Raleigh	O	158,000	$	26,286	$	24,514	72	%	3Q 06	1Q 08
Cordoba 6/	Kansas City	O	46,000		6,790		6,130	66	%	4Q 06	1Q 08
Stony Point IV	Richmond	O	107,000		13,125		12,682	86	%	4Q 06	4Q 07
North Shore Commons B	Richmond	O	96,000		13,586		11,479	17	%	1Q 07	2Q 08
Cool Springs III	Nashville	O	153,000		22,500		20,606	91	%	2Q 06	4Q 07

Total or Weighted Average			560,000	$	82,287	$	75,411	70	%

						$	$Weighted	70	%

Industrial:
Newpoint V	Atlanta	I	263,000	$	12,947	$	12,931	88	%	2Q 07	2Q 08
Enterprise II	Piedmont Triad	I	418,000		15,137		14,227	44	%	4Q 06	4Q 08

			681,000	$	28,084	$	27,158	61	%
						$	$Weighted	64	%

Completed Not Stabilized Total or Weighted Average			1,241,000	$	110,371	$	102,569	65	%

						$	$Weighted	68	%

Grand Total or Weighted Average			2,748,000	$	461,674	$	235,194	66	%

						$	$Weighted	72	%


Placed in Service Property	Market	Type 1/	In-Service Date	Rentable Square Feet	Investment @ 06/30/07		Leased %		Occ %
3330 Healy Rd 6/	Piedmont Triad	O	6/1/2007	40,000	$	3,969	25	%	0	%
ThyssenKrupp	Memphis	O	1/10/2007	78,000		9,375	100	%	100	%
Highwoods Preserve VII	Tampa	O	2/1/2007	115,000		20,695	100	%	100	%	7/

Total or Weighted Average				233,000	$	34,039	87	%	83	%

					$	$Weighted	91	%	88	%

1/	The Letters “O”, “I”, and “RC” represent: Office, Industrial and For Sale Residential Condominiums, respectively.

2/	Includes ancillary retail space on the ground level of approximately 11,000 square feet.

3/	In January 2007 the Company executed a Joint Venture agreement for this development. The Company will have a 93% interest and will consolidate this Joint Venture. The investment amounts shown represent the Company’s 93% share.

4/	There are currently 340 reservations for the 139 units. As of 8/1/07, 133 reservations have been converted to contracts. Condo units and reservations numbers are not part of In-Process Total or Weighted Average for SF & Pre-Leasing percentage.

5/	“Completed Not Stabilized” and Redevelopment properties are recorded in the Consolidated Balance Sheet in the Land and Building accounts, not Development-in-Process.

6/	Redevelopment property, the investment amounts shown include original Land and Building basis, in addition to the incremental redevelopment costs.

7/	29,000 sf is leased but will not be occupied until 4Q 08; this 29,000 sf is not included in our In-Service portfolio rentable sf until occupied.


Highwoods Properties, Inc.		Page 28

Development Land

June 30, 2007


*Dollars in thousands*
Market	Usable Acres	Total Estimated Market Value
Atlanta	256	$	25,751
Raleigh	196		43,172
Triad	69		16,118
Baltimore	39		11,824
Richmond	34		8,330
Nashville	26		8,345
Tampa	23		8,790
Memphis	21		4,733
Orlando	15		13,900
Greenville	12		1,800
Kansas City	2		3,100

Total 1/ 2/	693	$	145,863

1/	Developable square footage on core land holdings, which constitute 553 of the total 693 acres, is approximately 4.6 million of office space and 3.0 million of industrial space.

2/	Includes 4 acres ($1.3 million based on expected gross proceeds) included in property held for sale at June 30, 2007.


Highwoods Properties, Inc.		Page 29

Unconsolidated Joint Ventures Assets, Debt and Liabilities

June 30, 2007


*Dollars in thousands*
				Venture’s Books
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.0	%	$	7,300	$	58	$	502
Dallas County Partners I, LP	O/ I	50.0	%		38,680		49,803		52,805
Dallas County Partners II, LP	O	50.0	%		15,229		17,506		18,898
Dallas County Partners III, LP	O	50.0	%		48		—		31
Fountain Three	O/ I / R	50.0	%		29,466		32,673		34,875
RRHWoods , LLC	O/ M	50.0	%		89,950		80,942		85,026
Kessinger/Hunter, LLC	—	26.5	%		8,053		—		249
4600 Madison Associates, LP	O	12.5	%		18,849		14,004		14,585
Highwoods DLF 98/29, LP	O	22.8	%		153,137		76,186		79,833
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		105,281		56,272		60,059
Concourse Center Associates, LLC	O	50.0	%		13,711		9,021		9,331
Plaza Colonnade, LLC	O/R	50.0	%		74,348		67,188		68,758
Highwoods KC Glenridge Office, LP	O	40.0	%		22,937		16,500		17,068
Highwoods KC Glenridge Land, LP	O	40.0	%		796		—		87
Highwoods KC Orlando, LLC	O	40.0	%		209,368		143,000		150,527
Weston Lakeside, LLC	M	50.0	%		—		—		—

Total				$	787,153	$	563,153	$	592,634


				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.00	%	$	3,577	$	28	$	246
Dallas County Partners I, LP	O/ I	50.00	%		19,340		24,902		26,403
Dallas County Partners II, LP	O	50.00	%		7,615		8,753		9,449
Dallas County Partners III, LP	O	50.00	%		24		—		16
Fountain Three	O/ I / R	50.00	%		14,733		16,337		17,438
RRHWoods , LLC	O/ M	50.00	%		44,975		40,471		42,513
Kessinger/Hunter, LLC	—	26.50	%		2,134		—		66
4600 Madison Associates, LP	O	12.50	%		2,356		1,751		1,823
Highwoods DLF 98/29, LP	O	22.81	%		34,931		17,378		18,210
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		45,197		24,158		25,783
Concourse Center Associates, LLC	O	50.00	%		6,856		4,511		4,666
Plaza Colonnade, LLC	O/R	50.00	%		37,174		33,594		34,379
Highwoods KC Glenridge Office, LP	O	40.00	%		9,175		6,600		6,827
Highwoods KC Glenridge Land, LP	O	40.00	%		318		—		35
Highwoods KC Orlando, LLC	O	40.00	%		83,747		57,200		60,211
Weston Lakeside, LLC	M	50.00	%		—		—		—

Total 2/				$	312,152	$	235,683	$	248,065

1/	The letters “O”, “I”, “R”, and “M” represent Office, Industrial, Retail, and Multi-Family, respectively.

Highwoods’ share of equity from these tables will not equal Investments in Unconsolidated Affiliates on the Consolidated Balance Sheet due to various purchase accounting and related adjustments as well as negative investment balances reclassed to Liabilities, which are not reflected in the Joint Ventures’ stand-alone financial statements.


Highwoods Properties, Inc.		Page 30

Unconsolidated Joint Ventures Income

For the Three Months Ended June 30, 2007


*Dollars in thousands*
			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	543	$	449	$	1	$	98	$	—	$	(5	)
Dallas County Partners I, LP	50.00	%		3,051		1,576		788		542		—		145
Dallas County Partners II, LP	50.00	%		1,571		702		453		174		—		242
Dallas County Partners III, LP	50.00	%		48		54		—		2		—		(8	)
Fountain Three	50.00	%		2,011		952		561		399		—		99
RRHWoods, LLC	50.00	%		4,180		2,279		1,095		1,060		—		(254	)
Kessinger/Hunter, LLC	26.50	%		1,918		1,298		—		158		—		462
4600 Madison Associates, LP	12.50	%		1,154		535		244		410		—		(35	)
Highwoods DLF 98/29, LP	22.80	%		4,522		1,237		896		1,221		—		1,168
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		4,174		1,322		1,089		1,010		—		753
Concourse Center Associates, LLC	50.00	%		503		131		164		81		—		127
Plaza Colonnade, LLC	50.00	%		2,300		846		977		535		—		(58	)
Highwoods KC Glenridge Office, LP	40.00	%		984		434		209		159		—		182
Highwoods KC Glenridge Land, LP	40.00	%		—		5		—		—		—		(5	)
Highwoods KC Orlando, LLC	40.00	%		8,184		3,173		1,881		1,951		—		1,179
Weston Lakeside, LLC	50.00	%		—		—		—		—		—		—

Total			$	35,143	$	14,993	$	8,358	$	7,800	$	—	$	3,992


			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	266	$	220	$	1	$	48	$	—	$	(3	)
Dallas County Partners I, LP	50.00	%		1,527		789		395		271		—		72
Dallas County Partners II, LP	50.00	%		786		351		227		87		—		121
Dallas County Partners III, LP	50.00	%		24		28		—		1		—		(5	)
Fountain Three	50.00	%		1,007		476		281		200		—		50
RRHWoods, LLC	50.00	%		2,091		1,140		548		530		—		(127	)
Kessinger/Hunter, LLC	26.50	%		508		344		—		42		—		122
4600 Madison Associates, LP	12.50	%		145		67		32		52		—		(6	)
Highwoods DLF 98/29, LP	22.81	%		1,032		282		204		278		—		268
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		1,792		567		466		433		—		326
Concourse Center Associates, LLC	50.00	%		251		67		82		41		—		61
Plaza Colonnade, LLC	50.00	%		1,150		423		488		267		—		(28	)
Highwoods KC Glenridge Office, LP	40.00	%		393		174		83		64		—		72
Highwoods KC Glenridge Land, LP	40.00	%		—		1		—		—		—		(1	)
Highwoods KC Orlando, LLC	40.00	%		3,273		1,270		752		780		—		471
Weston Lakeside, LLC	50.00	%		—		—		—		—		—		—

Total 1/ 2/			$	14,245	$	6,199	$	3,559	$	3,094	$	—	$	1,393

Highwoods’ share of Depreciation and Amortization from these tables will not equal Depreciation and Amortization of Real Estate Assets for Unconsolidated Affiliates on the Statement of Funds from Operations due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.

2/	Highwoods’ share of Net Income from these tables will not equal Equity in Earnings of Unconsolidated Affiliates on the Consolidated Income Statement due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.


Highwoods Properties, Inc.		Page 31

Unconsolidated Joint Ventures Income

For the Six Months Ended June 30, 2007


*Dollars in thousands*
			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	1,191	$	889	$	4	$	194	$	—	$	104
Dallas County Partners I, LP	50.00	%		6,073		3,109		1,579		1,094		—		291
Dallas County Partners II, LP	50.00	%		3,113		1,376		916		349		—		472
Dallas County Partners III, LP	50.00	%		98		110		—		3		—		(15	)
Fountain Three	50.00	%		3,869		1,833		1,123		793		—		120
RRHWoods , LLC	50.00	%		8,236		4,529		2,125		2,125		—		(543	)
Kessinger/Hunter, LLC	26.50	%		3,845		2,579		—		316		—		950
4600 Madison Associates, LP	12.50	%		2,410		1,141		492		869		—		(92	)
Highwoods DLF 98/29, LP	22.80	%		11,910		2,662		1,926		1,995		9,311		14,638
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		8,185		2,638		2,183		1,997		—		1,367
Concourse Center Associates, LLC	50.00	%		1,034		267		329		162		—		276
Plaza Colonnade, LLC	50.00	%		4,636		1,771		1,960		1,064		—		(159	)
Highwoods KC Glenridge Office, LP	40.00	%		1,968		842		406		317		—		403
Highwoods KC Glenridge Land, LP	40.00	%		—		7		—		—		—		(7	)
Highwoods KC Orlando, LLC	40.00	%		16,373		6,202		3,754		3,701		—		2,716
Weston Lakeside, LLC	50.00	%		222		201		193		329		11,310		10,809

Total			$	73,163	$	30,156	$	16,990	$	15,308	$	20,621	$	31,330


			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)
Board of Trade Investment Co.	49.00	%	$	584	$	436	$	2	$	95	$	—	$	51
Dallas County Partners I, LP	50.00	%		3,037		1,555		790		547		—		145
Dallas County Partners II, LP	50.00	%		1,557		688		458		175		—		236
Dallas County Partners III, LP	50.00	%		49		55		—		2		—		(8	)
Fountain Three	50.00	%		1,935		917		562		397		—		59
RRHWoods , LLC	50.00	%		4,118		2,265		1,063		1,063		—		(273	)
Kessinger/Hunter, LLC	26.50	%		1,019		683		—		84		—		252
4600 Madison Associates, LP	12.50	%		301		143		62		109		—		(13	)
Highwoods DLF 98/29, LP	22.81	%		2,717		607		439		455		2,124		3,340
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		3,514		1,132		937		857		—		588
Concourse Center Associates, LLC	50.00	%		517		134		165		81		—		137
Plaza Colonnade, LLC	50.00	%		2,318		886		980		532		—		(80	)
Highwoods KC Glenridge Office, LP	40.00	%		787		337		162		127		—		161
Highwoods KC Glenridge Land, LP	40.00	%		—		3		—		—		—		(3	)
Highwoods KC Orlando, LLC	40.00	%		6,549		2,481		1,502		1,480		—		1,086
Weston Lakeside, LLC 1/	50.00	%		111		101		97		165		5,034		4,782

Total 2/ 3/			$	29,113	$	12,423	$	7,219	$	6,169	$	7,158	$	10,460

1/	Highwoods’ share of Gain on Sale is less than 50% for Weston Lakeside, LLC due to the preferred return to Crosland as the developer.

3/	Highwoods’ share of Net Income from these tables will not equal Equity in Earnings of Unconsolidated Affiliates on the Consolidated Income Statement due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.


Highwoods Properties, Inc.		Page 32

Joint Ventures Long-Term Debt Detail 1/


*Dollars in thousands*
Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 06/30/07
Dallas County Partners I, LP	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18	$	42,440
Dallas County Partners I, LP	50.0	%	Thrivent	8.45	%	Aug-10		1,606
Dallas County Partners I, LP	50.0	%	Regions	6.30	%	Jun-14		3,519
Dallas County Partners I, LP	50.0	%	Sun Life	5.92	%	Feb-16		1,060
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.00	%	Jul-11		1,178

				6.31	%			49,803

Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.19	%	Jun-13		17,506

Fountain Three	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		16,941
Fountain Three	50.0	%	Thrivent	7.95	%	Oct-10		3,552
Fountain Three	50.0	%	Thrivent	7.30	%	Apr-09		3,347
Fountain Three	50.0	%	Lehman Brothers	8.02	%	Jul-09		3,516
Fountain Three	50.0	%	Thrivent	7.00	%	Sep-12		5,317

				6.82	%			32,673

RRHWoods, LLC	50.0	%	Industrial Revenue Bonds 2/	3.87	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Bank of America	6.80	%	Sep-12		26,640
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds 2/	3.83	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds 2/	3.85	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		4,687
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	5.85	%	Mar-16		7,545
RRHWoods, LLC	50.0	%	UNUM Life Insurance Company	5.67	%	Mar-17		4,051
RRHWoods, LLC	50.0	%	Regions	6.30	%	Jun-14		3,519

				5.35	%			80,942

Plaza Colonnade, LLC	50.0	%	Met Life	5.72	%	Jan-17		49,073
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.38	%	Mar-10		1,818
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	6.00	%	Mar-16		4,394
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.90	%	Mar-24		11,903

				5.76	%			67,188

4600 Madison Associates, LLC	12.5	%	State Farm	6.85	%	Apr-18		14,004
Board of Trade Investment Company	49.0	%	KC Board of Trade Clearing Corp.	7.75	%	Sep-07		58
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.78	%	Apr-11		48,536
Highwoods DLF 98/29, LP	22.8	%	Goldman Sachs	6.11	%	Jul-17		27,650
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.66	%	May-12		56,272
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	6.95	%	Jul-10		9,021
Highwoods KC Orlando, LLC	40.0	%	Met Life	5.21	%	Jul-14		143,000
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.84	%	Jun-14		16,500

				6.07	%			315,041

				6.12	%		$	563,153

Highwoods’ share of the above							$	235,683

1/	Excludes loans related to two “consolidated” joint ventures.

2/	Floating rate loan based on market rates.


Highwoods Properties, Inc.		Page 33

Joint Ventures Portfolio Summary


*As of June 30, 2007*
Summary by Location:				Percentage of Annualized Cash Revenue
	Rentable Square Feet	Occupancy		Highwoods’ Share Only 1/
Market	Rentable Square Feet	Occupancy		Office		Industrial		Retail		Multi-Family		Total
Des Moines 2/	2,474,000	93.2	%	28.4	%	4.2	%	1.0	%	3.3	%	36.9	%
Orlando	1,853,000	90.5	%	28.3	%	—		—		—		28.3	%
Atlanta	835,000	96.4	%	12.9	%	—		—		—		12.9	%
Kansas City	718,000	79.9	%	8.2	%	—		—		—		8.2	%
Richmond	413,000	100.0	%	5.0	%	—		—		—		5.0	%
Piedmont Triad	364,000	100.0	%	3.9	%	—		—		—		3.9	%
Tampa	205,000	100.0	%	2.0	%	—		—		—		2.0	%
Raleigh	178,000	100.0	%	1.6	%	—		—		—		1.6	%
Charlotte	148,000	100.0	%	0.7	%	—		—		—		0.7	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%

Total 3/	7,298,000	92.9	%	91.5	%	4.2	%	1.0	%	3.3	%	100.0	%

1/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/	Excludes 418 apartment units and related occupancy percentage of 96.7%.

3/	Includes 618,000 square feet of properties in joint ventures that are consolidated.


Highwoods Properties, Inc.		Page 34

Joint Ventures Lease Expirations

June 30, 2007


*Dollars in thousands*
Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Total
2007	337,366	5.0	%	$	6,373	$	18.89	4.8	%
2008	1,490,963	22.1	%		27,251		18.28	20.7	%
2009	666,315	9.8	%		13,783		20.69	10.4	%
2010	664,328	9.8	%		12,143		18.28	9.2	%
2011	917,720	13.5	%		17,665		19.25	13.4	%
2012	504,843	7.4	%		10,716		21.23	8.1	%
2013	811,863	12.0	%		16,096		19.83	12.2	%
2014	406,766	6.0	%		9,190		22.59	7.0	%
2015	583,870	8.6	%		10,070		17.25	7.6	%
2016	76,970	1.1	%		975		12.67	0.7	%
2017 and thereafter	319,851	4.7	%		7,759		24.26	5.9	%

	6,780,855	100.0	%	$	132,021	$	19.47	100.0	%

1/	Annualized Cash Revenue is June, 2007 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		Page 35

Joint Venture Acquisition and Disposition Activity


*Dollars in thousands*
Acquisitions
Name	Market	Type 1/	Date Acquired	Square Footage	Total Cost 2/
First quarter 2007:
None

Second quarter 2007:
Eola Park Centre	Orlando	O	05/21/07	167,000	$	8,958

Second quarter totals				167,000	$	8,958

2007 totals				167,000	$	8,958

Dispositions

Name

Market

Type 1/

Date

Sold

Square
Footage

Occupancy

Gross Sales
Price 2/

First quarter 2007:

Weston Lakeside 3/

Raleigh

02/22/07

322 Units

N/A

22,500

3404 North Duke Street 4/

Raleigh

03/12/07

67,000

100.0

4020 North Roxboro Road 4/

Raleigh

03/12/07

42,000

100.0

4101 North Roxboro Road 4/

Raleigh

03/12/07

56,000

100.0

Fairfield I 4/

Raleigh

03/12/07

51,000

100.0

Fairfield II 4/

Raleigh

03/12/07

60,000

96.9

276,000

99.3

7,801

First quarter totals

276,000

99.3

30,301

Second quarter 2007:

None

2007 totals

276,000

99.3

30,301

1/	The letters “O” and “M” represent Office and Multi-Family, respectively.

2/	Reflects Highwoods pro-rata share only.

3/	The Weston Lakeside properties were owned by a 50% owned joint venture.

4/	These properties were 22.81% owned properties through the DLF 98/29 joint venture.


Highwoods Properties, Inc.		Page 36

Joint Venture Development Activity


*Dollars in thousands*
Completed Not Stabilized
Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 06/30/07		Pre- Leased %		Estimated Completion Date	Estimated Stabilization Date
Brickstone	50	%	Des Moines	31,000	$	5,149	$	4,555	42	%	4Q 06	4Q 07

Completed Not Stabilized Total					$	5,149	$	4,555

Highwoods’ Share of the above					$	2,575	$	2,278


Highwoods Properties, Inc.		Page 37