Supplemental operating information for the quarter ended March 31, 2007

EX-99.2 3 dex992.htm SUPPLEMENTAL OPERATING INFORMATION FOR THE QUARTER ENDED MARCH 31, 2007 Supplemental operating information for the quarter ended March 31, 2007

LOGO

Supplemental Information

March 31, 2007

Supplemental Information

Table of Contents

March 31, 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

Joint Ventures Long-Term Debt Detail		32

Joint Ventures Portfolio Summary		33

Joint Ventures Lease Expirations		34

Joint Ventures Development		35

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 30 to 35, 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*
	03/31/07			12/31/06			09/30/06			06/30/06			03/31/06
Shares and units:
Common shares outstanding at end of period		56,711			56,211			55,635			54,131			54,142
Common units outstanding at end of period		4,115			4,733			5,014			5,234			5,401
Weighted average common shares outstanding - basic		56,040			55,740			54,470			53,879			53,813
Weighted average common shares outstanding - diluted		61,900			62,365			61,457			60,387			60,588
Share price:
At end of period	$	39.49		$	40.76		$	37.21		$	36.18		$	33.73
High close during period		46.95			41.31			38.15			36.18			34.77
Low close during period		37.99			36.40			35.39			29.56			29.20
Financial information:
Land sale gains, net of (impairments)	$	15,835		$	6,974		$	2,103		$	(74	)	$	3,040
Lease termination income		41			618			249			1,304			885
Straight line rental income		1,572			2,401			2,006			1,664			2,521
Capitalized interest		2,147			1,770			1,701			930			601
Impairments on depreciable properties		—			—			2,600			—			—
Gains on sales of depreciable properties		20,651			10,925			3,712			1,395			3,164
Gain from insurance settlement		4,128			—			—			—			—
Total debt/ total assets 1/		53.4	%		52.7	%		52.9	%		53.2	%		52.7	%
Total debt/ total market capitalization 1/		36.9	%		35.9	%		37.9	%		39.1	%		40.2	%
Funds from operations per share - diluted	$	0.91		$	0.71		$	0.53		$	0.54		$	0.59
Funds from operations per share - diluted, excluding certain items 2/	$	0.91		$	0.71		$	0.59		$	0.55		$	0.62
Wholly - owned property information:
In-Service rentable square feet:
Office		19,154			19,244			19,507			19,704			19,691
Industrial		6,280			6,281			6,605			6,706			6,706
Retail		1,326			1,327			1,431			1,408			1,408

Total		26,760			26,852			27,543			27,818			27,805

In-Service occupancy:
Office		89.3	%		89.0	%		88.1	%		87.1	%		87.1	%
Industrial		91.9	%		91.7	%		91.8	%		89.5	%		88.0	%
Retail		95.4	%		95.7	%		96.2	%		95.3	%		95.7	%

Total		90.2	%		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

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

F. William Vandiver, Jr.

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

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

Research Coverage

Credit Suisse - North America

John Stewart - 212-538-3183

Deutsche Banc Securities

Lou Taylor - 212-469-4912

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

Mark W. Shumaker, 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 March 31, 2007, the Company owned or had an interest in 385 in-service office, industrial and retail properties encompassing approximately 33.9 million square feet. Highwoods also owns 625 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


	*Three Months Ended*
	03/31/07			12/31/06			09/30/06			06/30/06			03/31/06
Rental and other revenues	$	108,742		$	108,508		$	104,328		$	102,883		$	101,079
Operating expenses:
Rental property and other expenses		39,134			41,352			39,218			36,905			36,117
Depreciation and amortization		29,741			30,206			28,460			28,625			27,644
Impairment of assets held for use		—			—			2,600			—			—
General and administrative		10,911			11,011			8,546			9,060			8,692

Total operating expenses		79,786			82,569			78,824			74,590			72,453

Interest expense:
Contractual		22,689			22,374			23,809			24,236			23,810
Amortization of deferred financing costs		566			492			557			582			744
Financing obligations		992			972			850			1,398			942

		24,247			23,838			25,216			26,216			25,496

Other income/(expense):
Interest and other income		1,518			2,709			1,178			1,146			1,977
Settlement of tenant bankruptcy claim		—			1,581			—			—			—
Loss on debt extinguishments		—			(27	)		—			(467	)		—

		1,518			4,263			1,178			679			1,977

Income before disposition of property, minority interest and equity in earnings of unconsolidated affiliates		6,227			6,364			1,466			2,756			5,107
Gains on disposition of property, net		16,743			7,862			2,977			1,008			4,310
Gain from property insurance settlement		4,128			—			—			—			—
Minority interest		(2,629	)		(1,088	)		(247	)		(356	)		(535	)
Equity in earnings of unconsolidated affiliates		9,717			1,492			1,342			1,924			2,083

Income from continuing operations		34,186			14,630			5,538			5,332			10,965
Discontinued operations:
Income from discontinued operations, net of minority interest		110			566			776			656			1,423
Gains on sales of discontinued operations, net of minority interest		18,262			9,220			2,595			285			1,758

		18,372			9,786			3,371			941			3,181

Net income		52,558			24,416			8,909			6,273			14,146
Dividends on preferred stock		(4,113	)		(4,113	)		(4,113	)		(4,113	)		(4,724	)
Excess of preferred stock redemption cost over carrying value		—			—			—			—			(1,803	)

Net income available for common stockholders	$	48,445		$	20,303		$	4,796		$	2,160		$	7,619

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

Net income	$	0.85		$	0.35		$	0.09		$	0.04		$	0.14

Weighted average common shares outstanding - diluted		61,900			62,365			61,457			60,387			60,588

Dividends declared and paid per common share	$	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


	*Three Months Ended*
	03/31/07			12/31/06			09/30/06			06/30/06			03/31/06
Funds from operations:
Net income	$	52,558		$	24,416		$	8,909		$	6,273		$	14,146
Dividends to preferred stockholders		(4,113	)		(4,113	)		(4,113	)		(4,113	)		(4,724	)
Excess of preferred stock redemption cost over carrying value		—			—			—			—			(1,803	)

Net income applicable to common stockholders		48,445			20,303			4,796			2,160			7,619
Add/(deduct):
Depreciation and amortization of real estate assets		29,104			29,458			27,699			27,883			26,808
(Gains) on disposition of depreciable properties		(908	)		(888	)		(874	)		(1,082	)		(1,270	)
Minority interest from the Operating Partnership in income from operations		2,449			929			130			118			444
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		2,866			3,048			2,790			2,678			2,675
(Gains) on disposition of depreciable properties		(7,158	)		—			—			—			—
Discontinued operations:
Depreciation and amortization of real estate assets		5			460			817			1,003			1,106
(Gains) on disposition of depreciable properties		(19,743	)		(10,037	)		(2,838	)		(313	)		(1,894	)
Minority interest from the Operating Partnership in income from discontinued operations		1,490			867			318			92			280

Funds from operations	$	56,550		$	44,140		$	32,838		$	32,539		$	35,768

Funds from operations per share - diluted
Net income applicable to common shares	$	0.85		$	0.35		$	0.09		$	0.04		$	0.14
Add/(deduct):
Depreciation and amortization of real estate assets		0.47			0.47			0.45			0.46			0.44
(Gains) on disposition of depreciable properties		(0.01	)		(0.01	)		(0.01	)		(0.02	)		(0.02	)
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		0.04			0.05			0.04			0.05			0.04
(Gains) on disposition of depreciable properties		(0.12	)		—			—			—			—
Discontinued operations:
Depreciation and amortization of real estate assets		—			0.01			0.01			0.02			0.02
(Gains) on disposition of depreciable properties		(0.32	)		(0.16	)		(0.05	)		(0.01	)		(0.03	)

Funds from operations	$	0.91		$	0.71		$	0.53		$	0.54		$	0.59

Weighted average shares outstanding - diluted		61,900			62,365			61,457			60,387			60,588

Additional information: 1/
Funds from operations, excluding certain items 2/	$	56,550		$	44,167		$	36,162		$	33,006		$	37,571

Funds from operations per share, excluding certain items 2/	$	0.91		$	0.71		$	0.59		$	0.55		$	0.62

Straight line rental income	$	(1,572	)
Amortization of lease incentives		222
Depreciation of non-real estate assets		470
Amortization of stock-based compensation		1,132
Amortization of deferred financing costs		566
Amortization of accumulated other comprehensive loss		142
Harborview non-cash FMV charge		134
Non-incremental revenue generating capital expenditures paid:
Building improvements		(4,359	)
2nd generation tenant improvements		(10,650	)
2nd generation lease commissions		(3,884	)
Common dividends and unit distributions paid		(25,766	)

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


	03/31/07			12/31/06 (1)
Assets:
Real estate assets, at cost:
Land	$	350,245		$	345,548
Buildings and tenant improvements		2,615,830			2,573,032
Development in process		108,074			101,899
Land held for development		108,843			111,988

		3,182,992			3,132,467
Less-accumulated depreciation		(609,148	)		(588,307	)

Net real estate assets		2,573,844			2,544,160
Real estate and other assets, net, held for sale		5,519			34,944
Cash and cash equivalents		17,004			16,690
Restricted cash		1,692			2,027
Accounts receivable, net		24,830			23,347
Notes receivable, net		7,295			7,871
Accrued straight-line rents receivable, net		69,920			68,364
Investment in unconsolidated affiliates		61,763			60,359
Deferred financing and leasing costs, net		68,885			66,352
Prepaid expenses and other		19,952			20,739

Total Assets	$	2,850,704		$	2,844,853

Liabilities, Minority Interest and Stockholders’ Equity:
Mortgages and notes payable	$	1,487,509		$	1,465,129
Accounts payable, accrued expenses and other liabilities		139,858			156,737
Financing obligations		35,529			35,530

Total Liabilities		1,662,896			1,657,396
Minority interest		70,369			79,726
Stockholders’ Equity:
Preferred stock		197,445			197,445
Common stock		567			562
Additional paid-in capital		1,435,679			1,449,337
Distributions in excess of net earnings		(514,879	)		(538,098	)
Accumulated other comprehensive loss		(1,373	)		(1,515	)

Total Stockholders’ Equity		1,117,439			1,107,731

Total Liabilities, Minority Interest and Stockholders’ Equity	$	2,850,704		$	2,844,853

(1)	Certain amounts were reclassified to confirm to the current period presentation.


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


	*Three Months Ended*
	03/31/07			12/31/06			09/30/06			06/30/06			03/31/06
Rental and other revenues	$	242		$	2,106		$	3,521		$	2,967		$	4,382
Operating expenses:
Rental property and other expenses		125			952			1,515			1,163			1,624
Depreciation and amortization		5			460			817			1,003			1,106
General and administrative		—			12			75			—			—

Total operating expenses		130			1,424			2,407			2,166			2,730
Interest expense		—			78			277			102			103
Other income		7			12			14			21			18
Income before minority interest and gains on sales of discontinued operations		119			616			851			720			1,567
Minority interest in discontinued operations		(9	)		(50	)		(75	)		(64	)		(144	)

Income from discontinued operations before gains on sales of discontinued operations		110			566			776			656			1,423
Gains on sales of discontinued operations		19,743			10,037			2,838			313			1,894
Minority interest in discontinued operations		(1,481	)		(817	)		(243	)		(28	)		(136	)

Gains on sales of discontinued operations, net of minority interest		18,262			9,220			2,595			285			1,758

Total discontinued operations	$	18,372		$	9,786		$	3,371		$	941		$	3,181


Highwoods Properties, Inc.		Page 5

Capitalization

Dollars, shares, and units in thousands


	03/31/07		12/31/06		09/30/06		06/30/06		03/31/06
Long-Term Debt (see pages 7 & 8):	$	1,487,509	$	1,465,129	$	1,461,105	$	1,466,839	$	1,450,251

Financing Obligations:	$	35,529	$	35,530	$	36,098	$	36,002	$	34,282

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		92,500		92,500		92,500		92,500		92,500

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

Common Shares and Units Outstanding:
Common stock outstanding		56,711		56,211		55,635		54,131		54,142
Minority interest partnership units		4,115		4,733		5,014		5,234		5,401

Total common shares and units outstanding		60,826		60,944		60,649		59,365		59,543
Stock price at period end	$	39.49	$	40.76	$	37.21	$	36.18	$	33.73

Market value of common equity	$	2,402,019	$	2,484,077	$	2,256,749	$	2,147,826	$	2,008,385

Total market capitalization with debt and obligations	$	4,122,502	$	4,182,181	$	3,951,397	$	3,848,112	$	3,690,363

See pages 30 to 35 for information regarding Highwoods’ Joint Ventures.


Highwoods Properties, Inc.		Page 6

Long-Term Debt Summary

Dollars in thousands


	03/31/07			12/31/06			09/30/06			06/30/06			03/31/06
Balances Outstanding:
Secured:
Conventional fixed rate 1/	$	662,036		$	730,732		$	691,662		$	695,832		$	699,949
Variable rate debt		13,688			10,897			12,943			13,007			12,302

Secured total		675,724			741,629			704,605			708,839			712,251

Unsecured:
Fixed rate bonds and notes 2/		750,000			350,000			460,000			460,000			460,000
Variable rate debt		—			—			—			—			100,000
Credit facility		63,000			373,500			296,500			298,000			178,000

Unsecured total		813,000			723,500			756,500			758,000			738,000

Total 2/	$	1,488,724		$	1,465,129		$	1,461,105		$	1,466,839		$	1,450,251

End of Period Weighted Average Interest Rates:
Secured:
Conventional fixed rate		6.63	%		6.78	%		6.92	%		6.93	%		6.93	%
Variable rate debt		6.55	%		6.55	%		5.93	%		5.85	%		5.43	%

Secured total		6.63	%		6.78	%		6.91	%		6.91	%		6.90	%

Unsecured:
Fixed rate bonds		6.61	%		7.48	%		7.37	%		7.37	%		7.37	%
Variable rate debt		—			—			—			—			5.80	%
Credit facility		6.12	%		6.14	%		6.22	%		5.96	%		5.81	%

Unsecured total		6.57	%		6.79	%		6.92	%		6.81	%		6.78	%

Average		6.60	%		6.78	%		6.91	%		6.86	%		6.84	%

Maturity Schedule:


	*Future Maturities of Debt*						Average
Year	Secured Debt 3/		Unsecured Debt		Total Debt 3/		Interest Rate
2007	$	13,688	$	—	$	13,688	6.90	%
2008		—		100,000		100,000	7.13	%
2009		139,681		113,000		252,681	7.45	%
2010		—		—		—	—
2011		—		—		—	—
2012		212,800		—		212,800	6.94	%
2013		271,615		—		271,615	5.90	%
2014		37,940		—		37,940	5.79	%
2015		—		—		—	—
2016		—		—		—	—
Thereafter		—		600,000		600,000	6.40	%

Total maturities	$	675,724	$	813,000	$	1,488,724	6.60	%

Weighted average maturity = 6.6 years

1/	Includes a $22.8 million loan related to a consolidated 20% owned joint venture (Harborview) and $37.9 million in loans at March 31, 2007 related to a consolidated 50% joint venture (Markel).

2/	Represents stated amounts and thus excludes $1,215K original issue discount on bonds issued March, 2007.

3/	All periods exclude annual principal amortization.


Highwoods Properties, Inc.		Page 7

Long-Term Debt Detail

Dollars in thousands


	Rate		Maturity Date	Loan Balance 03/31/07		Undepreciated Book Value of Assets Secured
Secured Loans
Lender
Northwestern Mutual	7.05	%	Jan-12	$	190,000	$	290,083
Northwestern Mutual	6.03	%	Mar-13		137,240		168,898
Massachusetts Mutual Life Ins. Co. 1/	5.68	%	Dec-13		122,707		201,213
Monumental Life Ins. Co. 2/	7.77	%	Nov-09		82,084		201,036
Monumental Life Ins. Co. 2/	7.87	%	Nov-09		51,791		—
Metropolitan Life Ins. Co. 3/	6.06	%	Oct-12		22,800		38,953
PNC/Regions/Wachovia 4/	6.55	%	Oct-07		13,688		17,915
Principal Life Insurance Company 5/	5.79	%	Jan-14		11,631		14,888
Principal Life Insurance Company 5/	5.79	%	Jan-14		11,631		18,781
Massachusetts Mutual Life Ins. Co. 1/	6.48	%	Dec-13		10,818		—
Principal Life Insurance Company 5/	5.74	%	Jan-14		9,173		14,282
Principal Life Insurance Company 5/	5.89	%	Jan-14		5,506		7,514
Lutheran Brotherhood	6.75	%	Apr-09		3,777		8,020
Security Life of Denver	8.85	%	Aug-09		2,029		9,384
American United Life	9.00	%	Jun-13		849		3,321

	6.63	%			675,724	$	994,288

Unsecured Bonds
Bonds	7.13	%	Feb-08		100,000
Bonds	8.13	%	Jan-09		50,000
Bonds 6/ 7/	5.85	%	Mar-17		400,000
Bonds	7.50	%	Apr-18		200,000

	6.61	%			750,000

Unsecured Loans
Credit facility 8/	6.12	%	May-09		63,000

Total Debt	6.60	%		$	1,488,724

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/	Floating rate loan based on one month libor. Loan was paid off on April 10, 2007.

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

6/	Face value of bonds.

7/	Represents stated amounts and thus excludes $1,215K original issue discount on bonds issued March, 2007.

8/	Floating rate loan based on one month libor. Maturity date excludes one-year extension option.


Highwoods Properties, Inc.		Page 8

Portfolio Summary - Wholly-Owned Properties Only 1/

(Rentable Square Feet)


	03/31/07		12/31/06		09/30/06		06/30/06		03/31/06
Office Industrial & Retail
In-Service:
Office 2/	19,154,000		19,244,000		19,507,000		19,704,000		19,691,000
Industrial	6,280,000		6,281,000		6,605,000		6,706,000		6,706,000
Retail 3/	1,326,000		1,327,000		1,431,000		1,408,000		1,408,000

Total 4/	26,760,000		26,852,000		27,543,000		27,818,000		27,805,000

Development Completed - Not Stabilized:
Office 2/	600,000		504,000		311,000		153,000		—
Industrial	418,000		418,000		—		—		—
Retail	—		—		—		—		9,600

Total	1,018,000		922,000		311,000		153,000		9,600

Development - In Process:
Office 2/	1,166,000		1,357,000		1,405,000		1,268,000		1,026,000
Industrial	383,000		383,000		681,000		418,000		418,000
Retail	—		—		—		23,000		23,000

Total	1,549,000		1,740,000		2,086,000		1,709,000		1,467,000

Total:
Office 2/	20,920,000		21,105,000		21,223,000		21,125,000		20,717,000
Industrial	7,081,000		7,082,000		7,286,000		7,124,000		7,124,000
Retail 3/	1,326,000		1,327,000		1,431,000		1,431,000		1,440,600

Total 4/	29,327,000		29,514,000		29,940,000		29,680,000		29,281,600

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	1,304,000		1,304,000		1,304,000		1,304,000		1,304,000

Total	26,493,000		26,493,000		26,493,000		26,493,000		26,493,000

Percent Leased/Pre-Leased:
In-Service:
Office	89.3	%	89.0	%	88.1	%	87.1	%	87.1	%
Industrial	91.9	%	91.7	%	91.8	%	89.5	%	88.0	%
Retail	95.4	%	95.7	%	96.2	%	95.3	%	95.7	%

Total	90.2	%	90.0	%	89.4	%	88.1	%	87.7	%

Development Completed - Not Stabilized:
Office	62.8	%	62.8	%	52.3	%	17.0	%	—
Industrial	44.0	%	44.0	%	—		—		—
Retail	—		—		—		—		88.0	%

Total	55.1	%	54.3	%	52.3	%	17.0	%	88.0	%

Development - In Process:
Office	55.0	%	55.3	%	58.4	%	53.7	%	57.1	%
Industrial	50.1	%	0.0	%	27.0	%	44.0	%	43.8	%
Retail	—		—		—		100.0	%	100.0	%

Total	53.8	%	43.1	%	48.2	%	51.9	%	54.0	%

Same Property
Office	89.1	%	89.1	%	88.3	%	87.4	%	87.4	%
Industrial	91.9	%	91.7	%	91.5	%	89.9	%	88.2	%
Retail	95.3	%	95.7	%	96.2	%	95.1	%	95.3	%

Total	90.1	%	90.0	%	89.4	%	88.3	%	88.0	%

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

2/	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 March 31, 2007

Summary by Location, Wholly-Owned Properties Only 1/:


	Rentable				Percentage of Annualized Cash Revenue 2/
Market	Square Feet		Occupancy		Office		Industrial		Retail		Total
Atlanta	5,514,000		92.7	%	10.5	%	3.8	%	—		14.3	%
Raleigh 3/	3,554,000		86.6	%	13.9	%	—		—		13.9	%
Kansas City	2,224,000	4/	89.9	%	4.3	%	—		9.5	%	13.8	%
Tampa	2,418,000		98.2	%	13.7	%	—		—		13.7	%
Nashville	2,875,000		92.4	%	13.2	%	—		—		13.2	%
Piedmont Triad 5/	5,195,000		88.3	%	6.9	%	3.7	%	—		10.6	%
Richmond	2,024,000		89.8	%	8.9	%	—		—		8.9	%
Memphis	1,276,000		92.8	%	5.8	%	—		—		5.8	%
Greenville	1,109,000		77.2	%	3.5	%	0.1	%	—		3.6	%
Orlando	218,000		98.9	%	1.2	%	—		—		1.2	%
Columbia	253,000		71.0	%	0.5	%	—		—		0.5	%
Other	100,000		73.6	%	0.5	%	—		—		0.5	%

Total	26,760,000		90.2	%	82.9	%	7.6	%	9.5	%	100.0	%

Summary by Location, Including Joint Venture Properties:


	Rentable				Percentage of Annualized Cash Revenue 2/ 6/
Market	Square Feet		Occupancy		Office		Industrial		Retail		Multi-Family		Total
Atlanta	6,349,000		93.2	%	10.8	%	3.4	%	—		—		14.2	%
Kansas City	2,942,000	4/	88.8	%	4.8	%	—		8.4	%	—		13.2	%
Raleigh	3,732,000		87.2	%	12.6	%	—		—		—		12.6	%
Tampa	2,623,000		98.4	%	12.3	%	—		—		—		12.3	%
Nashville	2,875,000		92.4	%	11.6	%	—		—		—		11.6	%
Piedmont Triad	5,559,000		89.1	%	6.5	%	3.3	%	—		—		9.8	%
Richmond	2,437,000		91.5	%	8.4	%	—		—		—		8.4	%
Memphis	1,276,000		92.8	%	5.1	%	—		—		—		5.1	%
Des Moines	2,474,000		93.7	%	3.4	%	0.5	%	0.1	%	0.4	%	4.4	%
Orlando	1,905,000		93.2	%	4.2	%	—		—		—		4.2	%
Greenville	1,109,000		77.2	%	3.1	%	0.1	%	—		—		3.2	%
Other	210,000		87.4	%	0.5	%	—		—		—		0.5	%
Columbia	253,000		71.0	%	0.4	%	—		—		—		0.4	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%

Total	33,892,000		91.0	%	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 March, 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 33.


Highwoods Properties, Inc.		Page 10

Portfolio Summary - Wholly-Owned Properties Only

(Continued)

As of March 31, 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	86.6	%	16.9	%	—	—		—
Tampa	2,418,000	98.2	%	16.5	%	—	—		—
Nashville	2,875,000	92.4	%	15.9	%	—	—		—
Atlanta	2,460,000	89.4	%	12.7	%	3,054,000	95.4	%	49.8	%
Richmond	2,024,000	89.8	%	10.7	%	—	—		—
Piedmont Triad	2,076,000	84.6	%	8.3	%	3,119,000	90.8	%	49.0	%
Memphis	1,276,000	92.8	%	7.0	%	—	—		—
Kansas City	894,000	82.0	%	5.2	%	4,000	46.5	%	0.1	%
Greenville	1,006,000	82.5	%	4.2	%	103,000	25.4	%	1.1	%
Orlando	218,000	98.9	%	1.4	%	—	—		—
Columbia	253,000	71.0	%	0.6	%	—	—		—
Other	100,000	73.6	%	0.6	%	—	—		—

	19,154,000	89.3	%	100.0	%	6,280,000	91.9	%	100.0	%


	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Cash Revenue 2/
Kansas City 3/	1,326,000	95.4	%	100.0	%

	1,326,000	95.4	%	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 March, 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	03/31/07		12/31/06		09/30/06		06/30/06		03/31/06
Atlanta	Rentable Square Feet	5,514,000		5,515,000		5,584,000		5,584,000		5,584,000
	Occupancy	92.7	%	94.0	%	92.4	%	91.8	%	91.1	%
	Current Properties 2/	92.7	%	94.0	%	92.7	%	92.1	%	91.3	%
Columbia	Rentable Square Feet	253,000		252,000		252,000		252,000		252,000
	Occupancy	71.0	%	48.7	%	49.4	%	49.8	%	41.4	%
	Current Properties 2/	71.0	%	48.7	%	49.4	%	49.8	%	41.4	%
Greenville	Rentable Square Feet	1,109,000		1,109,000		1,109,000		1,110,000		1,106,000
	Occupancy	77.2	%	75.3	%	75.0	%	68.8	%	73.4	%
	Current Properties 2/	77.2	%	75.3	%	75.0	%	68.9	%	73.2	%
Kansas City 3/	Rentable Square Feet	2,224,000		2,224,000		2,329,000		2,306,000		2,306,000
	Occupancy	89.9	%	90.1	%	90.7	%	89.9	%	90.4	%
	Current Properties 2/	89.8	%	90.0	%	90.3	%	89.5	%	89.8	%
Memphis	Rentable Square Feet	1,276,000		1,197,000		1,197,000		1,197,000		1,197,000
	Occupancy	92.8	%	91.8	%	91.9	%	89.7	%	90.0	%
	Current Properties 2/	92.3	%	91.8	%	91.9	%	89.7	%	89.9	%
Nashville	Rentable Square Feet	2,875,000		2,876,000		2,875,000		2,874,000		2,874,000
	Occupancy	92.4	%	91.6	%	92.8	%	90.8	%	90.6	%
	Current Properties 2/	92.4	%	91.6	%	92.8	%	90.8	%	90.6	%
Orlando	Rentable Square Feet	218,000		218,000		218,000		218,000		218,000
	Occupancy	98.9	%	100.0	%	100.0	%	100.0	%	99.5	%
	Current Properties 2/	98.9	%	100.0	%	100.0	%	100.0	%	99.5	%
Piedmont Triad	Rentable Square Feet	5,195,000		5,195,000		5,589,000		5,598,000		5,589,000
	Occupancy	88.3	%	88.7	%	89.9	%	88.6	%	86.7	%
	Current Properties 2/	88.3	%	88.6	%	89.5	%	88.6	%	86.8	%
Raleigh	Rentable Square Feet	3,554,000		3,810,000		3,812,000		4,101,000		4,102,000
	Occupancy	86.6	%	86.1	%	82.6	%	83.0	%	82.7	%
	Current Properties 2/	86.6	%	86.1	%	82.6	%	82.7	%	82.6	%
Richmond	Rentable Square Feet	2,024,000		2,024,000		1,954,000		1,954,000		1,954,000
	Occupancy	89.8	%	89.8	%	88.6	%	88.0	%	91.3	%
	Current Properties 2/	89.4	%	89.5	%	88.5	%	88.0	%	91.2	%
Tampa	Rentable Square Feet	2,418,000		2,332,000		2,524,000		2,524,000		2,523,000
	Occupancy	98.2	%	97.7	%	96.0	%	93.6	%	91.9	%
	Current Properties 2/	98.1	%	97.7	%	96.8	%	95.5	%	93.3	%

Total 4/	Rentable Square Feet	26,660,000		26,752,000		27,443,000		27,718,000		27,705,000
	Occupancy	90.2	%	90.0	%	89.4	%	88.1	%	87.7	%

	Current Properties 2/	90.1	%	90.0	%	89.4	%	88.3	%	88.0	%

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

2/	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
	3/31/07 2/			12/31/06 3/			9/30/06 4/			6/30/06 5/			3/31/06 6/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		130			137			140			141			188			147
Rentable square footage leased		726,080			868,941			915,289			950,460			944,222			880,998
Square footage of Renewal Deals		451,125			601,796			681,640			486,998			528,275			549,967
Renewed square footage (% of total)		62.1	%		69.3	%		74.5	%		51.2	%		55.9	%		62.4	%
New Leases square footage (% of total)		37.9	%		30.7	%		25.5	%		48.8	%		44.1	%		37.6	%
Weighted average per rentable square foot over the lease term:
Base rent	$	18.25		$	19.72		$	19.23		$	17.29		$	18.06		$	18.51
Tenant improvements		(1.70	)		(1.77	)		(1.56	)		(1.71	)		(1.52	)		(1.65	)
Leasing commissions 7/		(0.59	)		(0.56	)		(0.46	)		(0.48	)		(0.62	)		(0.54	)
Rent concessions		(0.06	)		(0.22	)		(0.11	)		(0.22	)		(0.31	)		(0.18	)

Effective rent		15.90			17.17			17.10			14.88			15.61			16.14
Expense stop		(5.06	)		(5.45	)		(5.04	)		(5.53	)		(5.57	)		(5.33	)

Equivalent effective net rent	$	10.84		$	11.72		$	12.06		$	9.35		$	10.04		$	10.81

Weighted average term in years		5.0			5.2			4.5			4.5			4.3			4.7

Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	7,604,253		$	9,392,949		$	7,994,295		$	8,416,490		$	7,270,758		$	8,135,749
Rentable square feet		726,080			868,941			915,289			950,460			944,222			880,998

Per rentable square foot	$	10.47		$	10.81		$	8.73		$	8.86		$	7.70		$	9.23

Leasing Commissions:
Total dollars committed under signed leases 7/	$	2,107,213		$	2,256,508		$	2,144,582		$	2,198,017		$	2,363,857		$	2,214,035
Rentable square feet		726,080			868,941			915,289			950,460			944,222			880,998

Per rentable square foot	$	2.90		$	2.60		$	2.34		$	2.31		$	2.50		$	2.51

Total:
Total dollars committed under signed leases	$	9,711,466		$	11,649,457		$	10,138,877		$	10,614,507		$	9,634,615		$	10,349,784
Rentable square feet		726,080			868,941			915,289			950,460			944,222			880,998

Per rentable square foot	$	13.38		$	13.41		$	11.08		$	11.17		$	10.20		$	11.75

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

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

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

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

6/	Includes 82K 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
	3/31/07			12/31/06			9/30/06			6/30/06 1/			3/31/06 2/			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		14			17			23			36			22			22
Rentable square footage leased		188,562			539,939			485,936			974,807			300,496			497,948
Square footage of Renewal Deals		175,579			315,423			237,061			543,537			165,621			287,444
Renewed square footage (% of total)		93.1	%		58.4	%		48.8	%		55.8	%		55.1	%		57.7	%
New Leases square footage (% of total)		6.9	%		41.6	%		51.2	%		44.2	%		44.9	%		42.3	%
Weighted average per rentable square foot over the lease term:
Base rent	$	4.63		$	3.81		$	4.13		$	3.44		$	4.46		$	4.09
Tenant improvements		(0.20	)		(0.45	)		(0.31	)		(0.17	)		(0.79	)		(0.38	)
Leasing commissions 3/		(0.04	)		(0.14	)		(0.09	)		(0.07	)		(0.15	)		(0.10	)
Rent concessions		(0.02	)		(0.05	)		(0.11	)		(0.01	)		(0.13	)		(0.06	)

Effective rent		4.37			3.17			3.62			3.19			3.39			3.55
Expense stop		(0.24	)		(0.08	)		(0.17	)		(0.10	)		(0.17	)		(0.15	)

Equivalent effective net rent	$	4.13		$	3.09		$	3.45		$	3.09		$	3.22		$	3.40

Weighted average term in years		2.5			5.2			3.8			2.9			3.5			3.6

Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	142,102		$	1,323,790		$	732,593		$	895,575		$	1,032,151		$	825,242
Rentable square feet		188,562			539,939			485,936			974,807			300,496			497,948

Per rentable square foot	$	0.75		$	2.45		$	1.51		$	0.92		$	3.43		$	1.66

Leasing Commissions:
Total dollars committed under signed leases 3/	$	23,647		$	433,927		$	109,087		$	144,376		$	191,615		$	180,530
Rentable square feet		188,562			539,939			485,936			974,807			300,496			497,948

Per rentable square foot	$	0.13		$	0.80		$	0.22		$	0.15		$	0.64		$	0.36

Total:
Total dollars committed under signed leases	$	165,749		$	1,757,717		$	841,680		$	1,039,951		$	1,223,766		$	1,005,773
Rentable square feet		188,562			539,939			485,936			974,807			300,496			497,948

Per rentable square foot	$	0.88		$	3.26		$	1.73		$	1.07		$	4.07		$	2.02

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

2/	Includes 10K 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
	3/31/07 1/			12/31/06			09/30/06			06/30/06			3/31/06			Average
Net Effective Rents Related to Re-Leased Space:
Number of lease transactions (signed leases)		9			8			8			5			12			8
Rentable square footage leased		41,357			23,748			26,472			13,573			49,479			30,926
Square footage of Renewal Deals		39,171			9,855			17,179			3,919			36,129			21,251
Renewed square footage (% of total)		94.7	%		41.5	%		64.9	%		28.9	%		73.0	%		68.7	%
New Leases square footage (% of total)		5.3	%		58.5	%		35.1	%		71.1	%		27.0	%		31.3	%
Weighted average per rentable square foot over the lease term:
Base rent	$	23.23		$	18.27		$	24.75		$	30.32		$	19.22		$	23.16
Tenant improvements		(0.12	)		(0.08	)		(1.40	)		(4.28	)		(0.41	)		(1.26	)
Leasing commissions 2/		(0.24	)		(0.41	)		(0.61	)		(1.04	)		(0.28	)		(0.52	)
Rent concessions		0.00			(0.20	)		0.00			0.00			(0.06	)		(0.05	)

Effective rent		22.87			17.58			22.74			25.00			18.47			21.33
Expense stop		0.00			0.00			0.00			0.00			0.00			0.00

Equivalent effective net rent	$	22.87		$	17.58		$	22.74		$	25.00		$	18.47		$	21.33

Weighted average term in years		4.2			8.6			5.2			10.8			11.1			8.0

Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	27,507		$	15,000		$	288,272		$	838,555		$	186,372		$	271,141
Rentable square feet		41,357			23,748			26,472			13,573			49,479			30,926

Per rentable square foot	$	0.67		$	0.63		$	10.89		$	61.78		$	3.77		$	8.77

Leasing Commissions:
Total dollars committed under signed leases 2/	$	1,981		$	1,981		$	46,048		$	63,681		$	42,804		$	31,299
Rentable square feet		41,357			23,748			26,472			13,573			49,479			30,926

Per rentable square foot	$	0.05		$	0.08		$	1.74		$	4.69		$	0.87		$	1.01

Total:
Total dollars committed under signed leases	$	29,488		$	16,981		$	334,320		$	902,236		$	229,176		$	302,440
Rentable square feet		41,357			23,748			26,472			13,573			49,479			30,926

Per rentable square foot	$	0.71		$	0.72		$	12.63		$	66.47		$	4.63		$	9.78

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 3/31/07

Office Portfolio 1/


Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Raleigh	165,459	4.9	$	21.18	$	9.29	$	1.61
Piedmont Triad	142,775	6.0		13.87		7.60		2.78
Columbia	136,457	7.9		15.61		25.12		6.98
Richmond	107,345	3.1		18.62		6.12		1.14
Nashville	60,875	3.4		18.14		4.64		1.40
Tampa	40,630	4.3		25.49		6.42		1.56
Memphis	29,389	2.8		20.88		7.92		1.58
Kansas City	26,983	3.4		19.95		1.05		2.86
Atlanta	15,548	2.6		18.47		5.89		1.87
Other	619	3.0		16.70		0.00		2.51

	726,080	5.0	$	18.19	$	10.47	$	2.90


Industrial Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/
Piedmont Triad	145,924	2.2	$	4.91	$	0.97	$	0.08
Atlanta	42,638	3.6		3.62		0.00		0.26

	188,562	2.5	$	4.61	$	0.75	$	0.13


Retail Portfolio
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF
Kansas City	41,357	4.2	$	23.23	$	0.67	$	0.05

	41,357	4.2	$	23.23	$	0.67	$	0.05

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 commission 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 3/31/07

Office Portfolio 1/


Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Raleigh	165,459	$	21.18	$	18.64	13.6	%
Piedmont Triad	142,775		13.87		13.22	4.9	%
Columbia	136,457		15.61		16.26	-4.0	%
Richmond	107,345		18.62		17.53	6.2	%
Nashville	60,875		18.14		17.81	1.8	%
Tampa	40,630		25.49		21.44	18.9	%
Memphis	29,389		20.88		19.00	9.9	%
Kansas City	26,983		19.95		19.38	2.9	%
Atlanta	15,548		18.47		18.18	1.6	%
Other	619		16.70		19.21	-13.0	%

GAAP Rent Growth	726,080	$	18.19	$	17.06	6.6	%

Cash Rent Growth	726,080	$	18.00	$	18.85	-4.5	%


Industrial Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Piedmont Triad	145,924	$	4.91	$	4.62	6.4	%
Atlanta	42,638		3.62		3.87	-6.4	%

GAAP Rent Growth	188,562	$	4.61	$	4.44	3.8	%

Cash Rent Growth	188,562	$	4.59	$	4.62	-0.7	%


Retail Portfolio
Market	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Kansas City	41,357	$	23.23	$	21.68	7.1	%

GAAP Rent Growth	41,357	$	23.23	$	21.68	7.1	%

Cash Rent Growth	41,357	$	23.33	$	22.54	3.5	%

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


Type	03/31/07			03/31/06			03/31/05			03/31/04			03/31/03
Office	$	18.99		$	18.04		$	17.53		$	17.54		$	17.22
Industrial		5.11			5.08			4.73			4.61			4.61
Retail 2/		30.04			27.98			27.01			24.27			26.69

Weighted average rate	$	16.19		$	15.45		$	15.08		$	14.77		$	14.04

Annual % growth rate		4.8	%		2.5	%		2.1	%		5.2	%

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 March, 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

March 31, 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	1,053,629	6.1	%	$	20,236	$	19.21	6.1	%
2008	2,047,492	11.8	%		37,930		18.53	11.5	%
2009	2,771,673	16.0	%		54,178		19.55	16.5	%
2010	2,310,028	13.3	%		48,090		20.82	14.6	%
2011	2,786,737	16.0	%		52,017		18.67	15.8	%
2012	1,989,944	11.5	%		38,007		19.10	11.5	%
2013	823,962	4.7	%		15,532		18.85	4.7	%
2014	602,672	3.5	%		12,223		20.28	3.7	%
2015	812,171	4.7	%		15,821		19.48	4.8	%
2016	729,773	4.2	%		13,339		18.28	4.0	%
2017 and thereafter	1,429,556	8.2	%		22,269		15.58	6.8	%

	17,357,637	100.0	%	$	329,642	$	18.99	100.0	%

Industrial:
2007 /4	597,385	10.0	%	$	3,718	$	6.22	12.2	%
2008	1,306,053	22.0	%		6,213		4.76	20.4	%
2009	961,855	16.2	%		5,250		5.46	17.3	%
2010	594,237	10.0	%		3,080		5.18	10.1	%
2011	675,002	11.3	%		3,578		5.30	11.8	%
2012	279,825	4.7	%		1,202		4.30	4.0	%
2013	210,052	3.5	%		1,171		5.57	3.8	%
2014	221,965	3.7	%		1,175		5.29	3.9	%
2015	233,882	3.9	%		697		2.98	2.3	%
2016	264,597	4.4	%		972		3.67	3.2	%
2017 and thereafter	612,240	10.3	%		3,360		5.49	11.0	%

	5,957,093	100.0	%	$	30,416	$	5.11	100.0	%

1/	Annualized Cash Revenue is March, 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 92,000 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

March 31, 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/	37,350	3.0	%	$	926	$	24.79	2.4	%
2008	123,286	9.7	%		3,575		29.00	9.4	%
2009	142,504	11.3	%		4,044		28.38	10.6	%
2010	100,805	8.0	%		3,763		37.33	9.9	%
2011	75,164	5.9	%		2,224		29.59	5.9	%
2012	153,014	12.1	%		4,629		30.25	12.2	%
2013	62,767	5.0	%		2,506		39.93	6.6	%
2014	79,410	6.3	%		1,485		18.70	3.9	%
2015	127,995	10.1	%		4,146		32.39	10.9	%
2016	67,224	5.3	%		2,665		39.64	7.0	%
2017 and thereafter	295,245	23.3	%		8,030		27.20	21.2	%

	1,264,764	100.0	%	$	37,993	$	30.04	100.0	%

Total:
2007 3/ 4/	1,688,364	6.9	%	$	24,880	$	14.74	6.3	%
2008	3,476,831	14.1	%		47,718		13.72	12.0	%
2009	3,876,032	15.7	%		63,472		16.38	15.9	%
2010	3,005,070	12.2	%		54,933		18.28	13.8	%
2011	3,536,903	14.4	%		57,819		16.35	14.5	%
2012	2,422,783	9.9	%		43,838		18.09	11.0	%
2013	1,096,781	4.5	%		19,209		17.51	4.8	%
2014	904,047	3.7	%		14,883		16.46	3.7	%
2015	1,174,048	4.8	%		20,664		17.60	5.2	%
2016	1,061,594	4.3	%		16,976		15.99	4.3	%
2017 and thereafter	2,337,041	9.5	%		33,659		14.40	8.5	%

	24,579,494	100.0	%	$	398,051	$	16.19	100.0	%

1/	Annualized Cash Revenue is March, 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 195,000 square feet of leases that are on a month to month basis or 0.7% 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*
		06/30/07 2/			09/30/07			12/31/07			03/31/08			Total
Atlanta	RSF		74,155			165,123			6,115			325,688			571,081
	% of Total Office RSF		0.4	%		1.0	%		0.0	%		1.9	%		3.3	%
	Annualized Cash Revenue 3/	$	1,537		$	2,904		$	92		$	5,406		$	9,939
	% of Total Office Annl Cash Rev		0.5	%		0.9	%		0.0	%		1.6	%		3.0	%
Columbia	RSF		36,386			0			3,258			12,494			52,138
	% of Total Office RSF		0.2	%		0.0	%		0.0	%		0.1	%		0.3	%
	Annualized Cash Revenue 3/	$	245		$	—		$	61		$	216		$	522
	% of Total Office Annl Cash Rev		0.1	%		0.0	%		0.0	%		0.1	%		0.2	%
Greenville	RSF		10,965			5,201			0			37,994			54,160
	% of Total Office RSF		0.1	%		0.0	%		0.0	%		0.2	%		0.3	%
	Annualized Cash Revenue 3/	$	191		$	115		$	—		$	706		$	1,012
	% of Total Office Annl Cash Rev		0.1	%		0.0	%		0.0	%		0.2	%		0.3	%
Kansas City	RSF		31,745			20,813			20,702			19,851			93,111
	% of Total Office RSF		0.2	%		0.1	%		0.1	%		0.1	%		0.5	%
	Annualized Cash Revenue 3/	$	733		$	435		$	448		$	415		$	2,031
	% of Total Office Annl Cash Rev		0.2	%		0.1	%		0.1	%		0.1	%		0.6	%
Memphis	RSF		15,310			18,629			12,849			59,619			106,407
	% of Total Office RSF		0.1	%		0.1	%		0.1	%		0.3	%		0.6	%
	Annualized Cash Revenue 3/	$	302		$	374		$	261		$	1,282		$	2,219
	% of Total Office Annl Cash Rev		0.1	%		0.1	%		0.1	%		0.4	%		0.7	%
Nashville	RSF		96,808			61,514			8,824			54,876			222,022
	% of Total Office RSF		0.6	%		0.4	%		0.1	%		0.3	%		1.3	%
	Annualized Cash Revenue 3/	$	1,489		$	1,248		$	175		$	1,111		$	4,023
	% of Total Office Annl Cash Rev		0.5	%		0.4	%		0.1	%		0.3	%		1.2	%
Orlando	RSF		11,607			1,358			6,340			6,133			25,438
	% of Total Office RSF		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue 3/	$	237		$	33		$	189		$	166		$	625
	% of Total Office Annl Cash Rev		0.1	%		0.0	%		0.1	%		0.1	%		0.2	%
Piedmont Triad	RSF		45,524			13,611			34,674			181,039			274,848
	% of Total Office RSF		0.3	%		0.1	%		0.2	%		1.0	%		1.6	%
	Annualized Cash Revenue 3/	$	800		$	280		$	539		$	3,008		$	4,627
	% of Total Office Annl Cash Rev		0.2	%		0.1	%		0.2	%		0.9	%		1.4	%
Raleigh	RSF		64,576			72,895			37,114			112,916			287,501
	% of Total Office RSF		0.3	%		0.4	%		0.2	%		0.7	%		1.6	%
	Annualized Cash Revenue 3/	$	1,342		$	1,496		$	753		$	1,757		$	5,348
	% of Total Office Annl Cash Rev		0.4	%		0.5	%		0.2	%		0.5	%		1.6	%
Richmond	RSF		29,761			29,231			27,587			116,039			202,618
	% of Total Office RSF		0.2	%		0.2	%		0.2	%		0.7	%		1.2	%
	Annualized Cash Revenue 3/	$	572		$	548		$	556		$	2,406		$	4,082
	% of Total Office Annl Cash Rev		0.2	%		0.2	%		0.2	%		0.7	%		1.2	%
Tampa	RSF		22,796			24,820			28,406			48,302			124,324
	% of Total Office RSF		0.1	%		0.1	%		0.2	%		0.3	%		0.7	%
	Annualized Cash Revenue 3/	$	605		$	611		$	699		$	1,207		$	3,122
	% of Total Office Annl Cash Rev		0.2	%		0.2	%		0.2	%		0.4	%		0.9	%
Other	RSF		13,802			1,130			0			1,351			16,283
	% of Total Office RSF		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue 3/	$	344		$	24		$	—		$	36		$	404
	% of Total Office Annl Cash Rev		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Total	RSF		453,435			414,325			185,869			976,302			2,029,931
	% of Total Office RSF		2.6	%		2.4	%		1.1	%		5.6	%		11.6	%
	Annualized Cash Revenue 3/	$	8,397		$	8,068		$	3,773		$	17,716		$	37,954
	% of Total Office Annl Cash Rev		2.5	%		2.4	%		1.1	%		5.4	%		11.5	%

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 March, 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*
		06/30/07 1/			09/30/07			12/31/07			03/31/08			Total
Atlanta	RSF		87,752			33,600			55,039			175,353			351,744
	% of Total Industrial RSF		1.5	%		0.6	%		0.9	%		2.9	%		5.9	%
	Annualized Cash Revenue 2/	$	431		$	124		$	280		$	803		$	1,638
	% of Total Industrial Annl Cash Rev		1.5	%		0.4	%		0.9	%		2.6	%		5.4	%
Greenville	RSF		16,081			0			0			0			16,081
	% of Total Industrial RSF		0.3	%		0.0	%		0.0	%		0.0	%		0.3	%
	Annualized Cash Revenue 2/	$	221		$	—		$	—		$	—		$	221
	% of Total Industrial Annl Cash Rev		0.7	%		0.0	%		0.0	%		0.0	%		0.7	%
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		231,691			116,022			57,200			367,078			771,991
	% of Total Industrial RSF		3.9	%		1.9	%		1.0	%		6.2	%		13.0	%
	Annualized Cash Revenue 2/	$	938		$	1,275		$	448		$	1,584		$	4,245
	% of Total Industrial Annl Cash Rev		3.1	%		4.2	%		1.5	%		5.2	%		14.0	%
Total	RSF		335,524			149,622			112,239			542,431			1,139,816
	% of Total Industrial RSF		5.6	%		2.5	%		1.9	%		9.1	%		19.1	%
	Annualized Cash Revenue 2/	$	1,590		$	1,399		$	728		$	2,387		$	6,104
	% of Total Industrial Annl Cash Rev		5.3	%		4.6	%		2.4	%		7.8	%		20.1	%

1/	Includes 92,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/	Annualized Cash Revenue is March, 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		245,393			385,148			341,290			85,500			1,141,721
	% of Total Office RSF		1.4	%		2.2	%		2.0	%		0.5	%		6.6	%
	Annualized Cash Revenue 3/	$	4,533		$	6,677		$	5,882		$	1,809		$	22,856
	% of Total Office Annl Cash Rev		1.4	%		2.0	%		1.8	%		0.5	%		6.9	%
Columbia	RSF		39,644			33,601			8,409			6,475			91,573
	% of Total Office RSF		0.2	%		0.2	%		0.0	%		0.0	%		0.5	%
	Annualized Cash Revenue 3/	$	307		$	522		$	131		$	105		$	785
	% of Total Office Annl Cash Rev		0.1	%		0.2	%		0.0	%		0.0	%		0.2	%
Greenville	RSF		16,166			78,679			60,122			62,986			612,649
	% of Total Office RSF		0.1	%		0.5	%		0.3	%		0.4	%		3.5	%
	Annualized Cash Revenue 3/	$	307		$	1,487		$	1,013		$	1,055		$	9,955
	% of Total Office Annl Cash Rev		0.1	%		0.5	%		0.3	%		0.3	%		3.0	%
Kansas City	RSF		73,260			83,129			124,572			110,795			341,793
	% of Total Office RSF		0.4	%		0.5	%		0.7	%		0.6	%		2.0	%
	Annualized Cash Revenue 3/	$	1,617		$	1,726		$	2,481		$	2,930		$	8,314
	% of Total Office Annl Cash Rev		0.5	%		0.5	%		0.8	%		0.9	%		2.5	%
Memphis	RSF		46,788			144,151			226,858			211,037			554,516
	% of Total Office RSF		0.3	%		0.8	%		1.3	%		1.2	%		3.2	%
	Annualized Cash Revenue 3/	$	936		$	3,070		$	4,519		$	4,351		$	10,047
	% of Total Office Annl Cash Rev		0.3	%		0.9	%		1.4	%		1.3	%		3.0	%
Nashville	RSF		167,146			200,081			675,991			463,446			1,211,953
	% of Total Office RSF		1.0	%		1.2	%		3.9	%		2.7	%		7.0	%
	Annualized Cash Revenue 3/	$	2,912		$	4,014		$	13,191		$	9,194		$	23,176
	% of Total Office Annl Cash Rev		0.9	%		1.2	%		4.0	%		2.8	%		7.0	%
Orlando	RSF		19,305			6,133			6,788			79,163			104,154
	% of Total Office RSF		0.1	%		0.0	%		0.0	%		0.5	%		0.6	%
	Annualized Cash Revenue 3/	$	459		$	166		$	174		$	1,768		$	2,263
	% of Total Office Annl Cash Rev		0.1	%		0.1	%		0.1	%		0.5	%		0.7	%
Piedmont Triad	RSF		93,809			248,228			135,423			206,869			1,071,889
	% of Total Office RSF		0.5	%		1.4	%		0.8	%		1.2	%		6.2	%
	Annualized Cash Revenue 3/	$	1,619		$	4,096		$	2,217		$	3,145		$	16,418
	% of Total Office Annl Cash Rev		0.5	%		1.2	%		0.7	%		1.0	%		5.0	%
Raleigh	RSF		174,585			421,095			553,176			347,710			1,687,273
	% of Total Office RSF		1.0	%		2.4	%		3.2	%		2.0	%		9.7	%
	Annualized Cash Revenue 3/	$	3,589		$	6,545		$	11,239		$	6,396		$	28,043
	% of Total Office Annl Cash Rev		1.1	%		2.0	%		3.4	%		1.9	%		8.5	%
Richmond	RSF		86,579			252,247			217,845			222,287			1,129,819
	% of Total Office RSF		0.5	%		1.5	%		1.3	%		1.3	%		6.5	%
	Annualized Cash Revenue 3/	$	1,676		$	4,974		$	4,148		$	4,104		$	20,414
	% of Total Office Annl Cash Rev		0.5	%		1.5	%		1.3	%		1.2	%		6.2	%
Tampa	RSF		76,022			178,682			414,414			485,781			1,219,984
	% of Total Office RSF		0.4	%		1.0	%		2.4	%		2.8	%		7.0	%
	Annualized Cash Revenue 3/	$	1,914		$	4,110		$	9,056		$	12,602		$	26,778
	% of Total Office Annl Cash Rev		0.6	%		1.2	%		2.7	%		3.8	%		8.1	%
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/	$	368		$	545		$	129		$	632		$	160
	% of Total Office Annl Cash Rev		0.1	%		0.2	%		0.0	%		0.2	%		0.0	%
Total	RSF		1,053,629			2,047,492			2,771,673			2,310,028			9,174,815
	% of Total Office RSF		6.1	%		11.8	%		16.0	%		13.3	%		52.9	%
	Annualized Cash Revenue 3/	$	20,237		$	37,932		$	54,180		$	48,091		$	169,209
	% of Total Office Annl Cash Rev		6.1	%		11.5	%		16.4	%		14.6	%		51.3	%

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

2/	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 March, 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		176,391			575,710			340,555			294,369			1,526,246
	% of Total Industrial RSF		3.0	%		9.7	%		5.7	%		4.9	%		25.6	%
	Annualized Cash Revenue 2/	$	834		$	2,997		$	2,145		$	1,634		$	7,565
	% of Total Industrial Annl Cash Rev		2.7	%		9.9	%		7.1	%		5.4	%		24.9	%
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/	$	221		$	60		$	42		$	—		$	—
	% of Total Industrial Annl Cash Rev		0.7	%		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		404,913			724,993			614,750			299,868			971,317
	% of Total Industrial RSF		6.8	%		12.2	%		10.3	%		5.0	%		16.3	%
	Annualized Cash Revenue 2/	$	2,662		$	3,155		$	3,043		$	1,446		$	4,592
	% of Total Industrial Annl Cash Rev		8.8	%		10.4	%		10.0	%		4.8	%		15.1	%
Total	RSF		597,385			1,306,053			961,855			594,237			2,497,563
	% of Total Industrial RSF		10.0	%		21.9	%		16.1	%		10.0	%		41.9	%
	Annualized Cash Revenue 2/	$	3,717		$	6,212		$	5,250		$	3,080		$	12,157
	% of Total Industrial Annl Cash Rev		12.2	%		20.4	%		17.3	%		10.1	%		40.0	%

1/	Includes 92,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/	Annualized Cash Revenue is March, 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/

March 31, 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	1,454,338	$	26,769	6.72	%	8.0
AT&T	672,986		13,168	3.31	%	1.8
Price Waterhouse Coopers	332,931		8,819	2.22	%	3.1
State Of Georgia	367,986		7,414	1.86	%	2.9
T-Mobile USA	205,855		5,606	1.41	%	6.6
Metropolitan Life Insurance	262,586		5,040	1.27	%	9.7
Lockton Companies	156,255		4,089	1.03	%	7.9
Volvo	278,940		3,919	0.98	%	3.0
Syniverse Technologies	198,750		3,869	0.97	%	9.6
Northern Telecom	246,000		3,651	0.92	%	0.9
SCI Services 3/	162,784		3,574	0.90	%	10.3
BB&T	209,237		3,263	0.82	%	5.3
US Airways	182,775		3,169	0.80	%	4.4
Fluor Enterprises	168,908		2,659	0.67	%	4.6
Jacobs Engineering Group	181,794		2,644	0.66	%	8.8
Vanderbilt University	126,617		2,432	0.61	%	8.5
Lifepoint Corporate Services	122,703		2,384	0.60	%	4.3
Wachovia	97,792		2,219	0.56	%	3.1
Icon Clinical Research	110,909		2,100	0.53	%	5.9
The Art Institute of Tampa	91,123		1,970	0.49	%	7.8

	5,631,269	$	108,758	27.33	%	5.8

By Industry


Category	Percent of Annualized Cash Revenue 2/
Professional, Scientific, and Technical Services	19.9	%
Finance/Banking	10.2	%
Insurance	9.5	%
Government/Public Administration	9.2	%
Retail Trade	7.9	%
Telecommunication	7.2	%
Manufacturing	7.0	%
Wholesale Trade	6.0	%
Health Care and Social Assistance	5.6	%
Real Estate Rental and Leasing	3.6	%
Information	2.8	%
Accommodation and Food Services	2.7	%
Transportation and Warehousing	2.6	%
Administrative and Support Services	2.3	%
Other Services (except Public Administration)	2.3	%
Educational Services	1.2	%

	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 March, 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 March 31,						Percentage
	2007			2006			Change
Rental revenues	$	100,654		$	94,803		6.2	%
Straight line rent		715			2,253		-68.3	%
Lease termination fees		38			672		-94.3	%
Operating expenses		(37,055	)		(34,813	)	-6.4	%

Net operating income	$	64,352		$	62,915		2.3	%

Average occupancy		89.7	%		88.6	%	1.2	%

Rentable square feet		26,493,000			26,493,000


	First Quarter: 2007 vs 2006
Market	NOI Percentage Change		Occupancy Percentage Change
Atlanta	4.7	%	2.2	%
Columbia	141.1	%	57.7	%
Greenville	4.4	%	4.8	%
Kansas City	0.2	%	-0.6	%
Memphis	3.1	%	1.8	%
Nashville	-4.0	%	-0.4	%
Orlando	-3.3	%	3.6	%
Piedmont Triad	-5.7	%	-2.5	%
Raleigh	6.8	%	4.4	%
Richmond	-3.8	%	-2.5	%
Tampa	15.6	%	5.9	%

	2.3	%	1.2	%


Highwoods Properties, Inc.		Page 25

Acquisition Activity

Dollars in thousands


Name	Market	Type	Date Acquired	Square Footage	Total Cost
First 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 2/
First quarter 2007:
1740-90 Century Center	Atlanta	O	01/17/07	69,000	N/A 3/		$	9,530
Red Oak	Raleigh	O	02/02/07	65,000	68.6	%
Laurel	Raleigh	O	02/02/07	40,000	85.2	%
Global Software	Raleigh	O	02/02/07	93,000	90.4	%
Magnolia	Raleigh	O	02/02/07	59,000	68.1	%

				257,000	79.0	%	$	30,416

First quarter totals - wholly-owned				326,000	79.0	%	$	39,946


Weston Lakeside 4/	Raleigh	M	02/22/07	322 Units	N/A		$	22,500
3404 North Duke Street 5/	Raleigh	O	03/12/07	67,000	100.0	%
4020 North Roxboro Road 5/	Raleigh	O	03/12/07	42,000	100.0	%
4101 North Roxboro Road 5/	Raleigh	O	03/12/07	56,000	100.0	%
Fairfield I 5/	Raleigh	O	03/12/07	51,000	100.0	%
Fairfield II 5/	Raleigh	O	03/12/07	60,000	96.9	%

				276,000	99.3	%	$	7,801

First quarter totals - joint ventures							$	30,301

First quarter grand total (including pro rata share of joint ventures dispositions)							$	70,247

1/	The letters “O” and “M” represent Office and Multifamily, respectively.

2/	Amounts for joint ventures reflect Highwoods pro-rata share only.

3/	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.

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

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


Highwoods Properties, Inc.		Page 27

Development Activity

Dollars in thousands

In - Process


Property	Market	Type 1/	Rentable Square Feet	Anticipated Total Investment		Investment @ 03/31/07		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Office:
Dept. of Homeland Security	Atlanta	O	91,000	$	21,700	$	12,804	100	%	3Q 07	3Q 07
Healthways	Nashville	O	255,000		58,300		23,102	100	%	2Q08	2Q 08
Berkshire	Orlando	O	99,000		13,197		10,110	16	%	2Q 07	2Q 08
Centregreen V	Raleigh	O	98,000		15,662		2,634	51	%	1Q 08	3Q 09
Glenlake VI	Raleigh	O	122,000		23,208		2,650	15	%	1Q 08	3Q 09
RBC Plaza 2/	Raleigh	O	292,000		76,056		10,604	65	%	4Q 08	4Q 09
Highwoods Baycenter I	Tampa	O	209,000		42,024		27,245	10	%	3Q 07	4Q 08

Total or Weighted Average			1,166,000	$	250,147	$	89,149	55	%

Industrial:
Newpoint V	Atlanta	I	263,000	$	12,312	$	8,931	73	%	2Q 07	2Q 08
Enterprise III	Piedmont Triad	I	120,000		5,502		1,087	0	%	3Q 07	4Q 08

Total or Weighted Average			383,000	$	17,814	$	10,018	50	%

For Sale Residential: 3/								340
RBC Plaza Condominiums 4/	Raleigh	RC	139 Units	$	42,380	$	3,804	Reservations		4Q 08	2Q 09

In-Process Total or Weighted Average 4/			1,549,000	$	310,341	$	102,971	54	%

Completed Not Stabilized 5/
Office:
Glenlake Four	Raleigh	O	158,000	$	26,286	$	22,921	72	%	3Q 06	1Q 08
Cordoba 6/	Kansas City	O	46,000		6,790		5,061	50	%	4Q 06	1Q 08
Stony Point IV	Richmond	O	107,000		13,125		11,993	86	%	4Q 06	4Q 07
3330 Healy Rd 6/	Piedmont Triad	O	40,000		4,859		3,969	0	%	4Q 06	2Q 07
North Shore Commons B	Richmond	O	96,000		13,586		10,979	9	%	1Q 07	2Q 08
Cool Springs III	Nashville	O	153,000		22,500		19,038	91	%	2Q 06	4Q 07

Total or Weighted Average			600,000	$	87,146	$	73,961	63	%

Industrial:
Enterprise II	Piedmont Triad	I	418,000	$	15,137	$	13,790	44	%	4Q 06	4Q 08

Completed Not Stabilized Total or Weighted Average			1,018,000	$	102,283	$	87,751	55	%

Grand Total or Weighted Average			2,567,000	$	412,624	$	190,722	54	%

Placed in Service

Property

Market

Type
1/

In-Service
Date

Rentable
Square
Feet

Investment
@

03/31/07

Occ
%

ThyssenKrupp

Memphis

1/10/2007

78,000

9,369

100

Highwoods Preserve VII 7/

Tampa

2/1/2007

115,000

19,414

100

Total or Weighted Average

193,000

28,783

100

1/	The Letters “O”, “I”, “R” and “RC” represent: Office, Industrial, Retail 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.

There are currently 340 reservations for the 139 units. Reservations are fully refundable until mid 2007 at which time binding sales contracts will be accepted and non-refundable deposits will be retained. 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.


Highwoods Properties, Inc.		Page 28

Development Land

March 31, 2007

Dollars in thousands


Market	Usable Acres	Total Estimated Market Value
Research Triangle	235	$	47,626
Atlanta	140		18,440
Triad	69		16,118
Richmond	44		10,330
Baltimore	39		11,824
Nashville	26		8,345
Tampa	23		8,790
Memphis	21		4,733
Orlando	14		10,800
Greenville	12		1,800
Kansas City	2		3,100

Total 1/ 2/	625	$	141,906

1/	Developable square footage on core land holdings, which constitute 421 of the total 625 acres, is approximately 4.3 million of office space and 1.6 million of industrial space.

2/	Includes 33 acres ($6 million based on expected gross proceeds) included in property held for sale at March 31, 2007.


Highwoods Properties, Inc.		Page 29

Unconsolidated Joint Ventures Assets, Debt and Liabilities

March 31, 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	%	$	7,203	$	96	$	400
Dallas County Partners I, LP	O/ I	50.0	%		38,164		50,032		52,433
Dallas County Partners II, LP	O	50.0	%		15,135		17,921		19,045
Dallas County Partners III, LP	O	50.0	%		49		—		23
Fountain Three	O/I /R	50.0	%		29,086		32,841		34,594
RRHWoods , LLC	O/ M	50.0	%		90,183		81,139		84,613
Kessinger/Hunter, LLC	—	26.5	%		8,575		—		632
4600 Madison Associates, LP	O	12.5	%		19,389		14,220		15,088
Highwoods DLF 98/29, LP	O	22.8	%		128,160		48,779		50,927
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		106,817		56,494		59,828
Concourse Center Associates, LLC	O	50.0	%		13,584		9,075		9,234
Plaza Colonnade, LLC	O/R	50.0	%		73,993		67,357		68,344
Highwoods KC Glenridge Office, LP	O	40.0	%		23,086		16,500		16,992
Highwoods KC Glenridge Land, LP	O	40.0	%		796		—		83
Highwoods KC Orlando, LLC	O	40.0	%		209,808		143,000		149,452
Weston Lakeside, LLC	M	50.0	%		245		—		3

Total				$	764,273	$	537,454	$	561,691


				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities
Board of Trade Investment Co.	O	49.00	%	$	3,529	$	47	$	196
Dallas County Partners I, LP	O/ I	50.00	%		19,082		25,016		26,217
Dallas County Partners II, LP	O	50.00	%		7,568		8,961		9,523
Dallas County Partners III, LP	O	50.00	%		25		—		12
Fountain Three	O/I /R	50.00	%		14,543		16,421		17,297
RRHWoods , LLC	O/ M	50.00	%		45,092		40,570		42,307
Kessinger/Hunter, LLC	—	26.50	%		2,272		—		167
4600 Madison Associates, LP	O	12.50	%		2,424		1,778		1,886
Highwoods DLF 98/29, LP	O	22.81	%		29,233		11,126		11,616
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		45,857		24,253		25,684
Concourse Center Associates, LLC	O	50.00	%		6,792		4,538		4,617
Plaza Colonnade, LLC	O/R	50.00	%		36,997		33,679		34,172
Highwoods KC Glenridge Office, LP	O	40.00	%		9,234		6,600		6,797
Highwoods KC Glenridge Land, LP	O	40.00	%		318		—		33
Highwoods KC Orlando, LLC	O	40.00	%		83,923		57,200		59,781
Weston Lakeside, LLC	M	50.00	%		123		—		2

Total 2/				$	307,012	$	230,189	$	240,307

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 March 31, 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	%	$	648	$	440	$	3	$	96	$	—	$	109
Dallas County Partners I, LP	50.00	%		3,022		1,533		791		552		—		146
Dallas County Partners II, LP	50.00	%		1,542		674		463		175		—		230
Dallas County Partners III, LP	50.00	%		50		56		—		1		—		(7	)
Fountain Three	50.00	%		1,858		881		562		394		—		21
RRHWoods, LLC	50.00	%		4,056		2,250		1,030		1,065		—		(289	)
Kessinger/Hunter, LLC	26.50	%		1,927		1,281		—		158		—		488
4600 Madison Associates, LP	12.50	%		1,256		606		248		459		—		(57	)
Highwoods DLF 98/29, LP	22.80	%		7,388		1,425		1,030		774		9,311		13,470
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		4,011		1,316		1,094		987		—		614
Concourse Center Associates, LLC	50.00	%		531		136		165		81		—		149
Plaza Colonnade, LLC	50.00	%		2,336		925		983		529		—		(101	)
Highwoods KC Glenridge Office, LP	40.00	%		984		408		197		158		—		221
Highwoods KC Glenridge Land, LP	40.00	%		—		2		—		—		—		(2	)
Highwoods KC Orlando, LLC	40.00	%		8,189		3,029		1,873		1,750		—		1,537
Weston Lakeside, LLC	50.00	%		222		201		193		329		11,310		10,809

Total			$	38,020	$	15,163	$	8,632	$	7,508	$	20,621	$	27,338


			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	%	$	318	$	216	$	1	$	47	$	—	$	54
Dallas County Partners I, LP	50.00	%		1,510		766		395		276		—		73
Dallas County Partners II, LP	50.00	%		771		337		231		88		—		115
Dallas County Partners III, LP	50.00	%		25		27		—		1		—		(3	)
Fountain Three	50.00	%		928		441		281		197		—		9
RRHWoods, LLC	50.00	%		2,027		1,125		515		533		—		(146	)
Kessinger/Hunter, LLC	26.50	%		511		339		—		42		—		130
4600 Madison Associates, LP	12.50	%		156		76		30		57		—		(7	)
Highwoods DLF 98/29, LP	22.81	%		1,685		325		235		177		2,124		3,072
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		1,722		565		471		424		—		262
Concourse Center Associates, LLC	50.00	%		266		67		83		40		—		76
Plaza Colonnade, LLC	50.00	%		1,168		463		492		265		—		(52	)
Highwoods KC Glenridge Office, LP	40.00	%		394		163		79		63		—		89
Highwoods KC Glenridge Land, LP	40.00	%		—		2		—		—		—		(2	)
Highwoods KC Orlando, LLC	40.00	%		3,276		1,211		750		700		—		615
Weston Lakeside, LLC 1/	50.00	%		111		101		97		165		5,035		4,783

Total 2/ 3/			$	14,868	$	6,224	$	3,660	$	3,075	$	7,159	$	9,068

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.

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.

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 31

Joint Ventures Long-Term Debt Detail 1/

Dollars in thousands


Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 03/31/07
Dallas County Partners I, LP	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18	$	42,629
Dallas County Partners I, LP	50.0	%	Thrivent	8.45	%	Aug-10		1,615
Dallas County Partners I, LP	50.0	%	Regions	6.30	%	Jun-14		3,535
Dallas County Partners I, LP	50.0	%	Sun Life	5.92	%	Feb-16		1,068
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.00	%	Jul-11		1,185

				6.31	%			50,032
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.19	%	Jun-13		17,921
Fountain Three	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		17,015
Fountain Three	50.0	%	Thrivent	7.95	%	Oct-10		3,575
Fountain Three	50.0	%	Thrivent	7.30	%	Apr-09		3,375
Fountain Three	50.0	%	Lehman Brothers	8.02	%	Jul-09		3,528
Fountain Three	50.0	%	Thrivent	7.00	%	Sep-12		5,347

				6.82	%			32,840
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	3.64	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Bank of America	6.80	%	Sep-12		26,727
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	2.99	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds	1.01	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		4,708
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	5.85	%	Mar-16		7,600
RRHWoods, LLC	50.0	%	UNUM Life Insurance Company	5.67	%	Mar-17		4,070
RRHWoods, LLC	50.0	%	Regions	6.30	%	Jun-14		3,535

				5.03	%			81,140
Plaza Colonnade, LLC	50.0	%	Met Life	5.72	%	Jan-17		49,242
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	%			67,357
4600 Madison Associates, LLC	12.5	%	State Farm	6.85	%	Apr-18		14,220
Board of Trade Investment Company	49.0	%	KC Board of Trade Clearing Corp.	7.75	%	Sep-07		96
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.78	%	Apr-11		48,779
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.66	%	May-12		56,494
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	6.95	%	Jul-10		9,075
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	%			288,164

				6.08	%		$	537,454

Highwoods’ share of the above							$	230,189

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


Highwoods Properties, Inc.		Page 32

Joint Ventures Portfolio Summary

As of March 31, 2007

Summary by Location:


	Rentable			Percentage of Annualized Cash Revenue Highwoods’ Share Only 3/
Market	Square Feet 1/	Occupancy 2/		Office		Industrial		Retail		Multi-Family		Total
Des Moines	2,474,000	93.7	%	29.1	%	4.0	%	1.0	%	3.4	%	37.5	%
Orlando	1,687,000	92.5	%	27.0	%	—		—		—		27.0	%
Atlanta	835,000	96.4	%	13.2	%	—		—		—		13.2	%
Kansas City	718,000	85.1	%	8.7	%	—		—		—		8.7	%
Richmond	413,000	100.0	%	5.1	%	—		—		—		5.1	%
Raleigh	178,000	100.0	%	1.6	%	—		—		—		1.6	%
Piedmont Triad	364,000	100.0	%	3.6	%	—		—		—		3.6	%
Tampa	205,000	100.0	%	2.0	%	—		—		—		2.0	%
Charlotte	148,000	100.0	%	0.8	%	—		—		—		0.8	%
Other	110,000	100.0	%	0.5	%	—		—		—		0.5	%

Total 4/	7,132,000	94.1	%	91.6	%	4.0	%	1.0	%	3.4	%	100.0	%

1/	Excludes Des Moines’ apartment units.

2/	Excludes Des Moines’ apartment occupancy percentage of 95.9%.

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

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


Highwoods Properties, Inc.		Page 33

Joint Ventures Lease Expirations

March 31, 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	462,964	6.9	%	$	8,860	$	19.14	6.9	%
2008	1,297,537	19.4	%		23,735		18.29	18.6	%
2009	649,587	9.7	%		13,258		20.41	10.4	%
2010	658,156	9.8	%		12,055		18.32	9.4	%
2011	878,395	13.1	%		16,237		18.48	12.7	%
2012	461,599	6.9	%		9,724		21.07	7.6	%
2013	947,782	14.1	%		17,435		18.40	13.6	%
2014	395,532	5.9	%		8,874		22.44	6.9	%
2015	556,965	8.3	%		9,465		16.99	7.4	%
2016	76,970	1.1	%		975		12.67	0.8	%
2017 and thereafter	319,235	4.8	%		7,296		22.85	5.7	%

	6,704,722	100.0	%	$	127,914	$	19.08	100.0	%

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


Highwoods Properties, Inc.		Page 34

Joint Venture Development Activity

Dollars in thousands

Completed Not Stabilized


Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment @ 03/31/07		Pre- Leasing		Estimated Completion Date	Estimated Stabilization Date
Brickstone	50	%	Des Moines	31,000	$	5,149	$	4,521	35	%	4Q 06	4Q 07

Completed Not Stabilized Total					$	5,149	$	4,521

Highwoods’ Share of the above					$	2,575	$	2,261


Highwoods Properties, Inc.		Page 35