SUPPLEMENTAL INFORMATION€¦ · Highwoods assumes no obligation to update or supplement forward-looking statements that become untrue of subsequent events. ... Losses on debt extinguishment

SUPPLEMENTAL

INFORMATION Fourth Quarter 2013

Page

Summary and Corporate Information …………………………………………………………………………………………………… i, ii, iii

Consolidated Statements of Income …………………………………………………………………………………………………… 1

Funds from Operations and Additional Information …………………………………………………………………………………… 2

Consolidated Balance Sheets ………………………………………………………………………………………………………….. 3

Components of Net Asset Value ……………………………………………………………………………………………………….. 4

Revenue Detail; Discontinued Operations Detail ……………………………………………………………………………………………. 5

Capitalization …………………………………………………………………………………………………………………………….. 6

Mortgages and Notes Payable Summary ……………………………………………………………………………………………… 7

Mortgages and Notes Payable Detail ………………………………………………………………………………………………….. 8

Portfolio Summary ……………………………………………………………………………………………………………………….. 9, 10, 11, 12

Occupancy Trends ……………………………………………………………………………………………………………………….. 13

Leasing Statistics ………………………………………………………………………………………………………………………... 14, 15, 16

Leasing Statistics by Market …………………………………………………………………………………………………………………………17

Rental Rate Comparisons by Market …………………………………………………………………………………………………………………………18

Lease Expirations ………………………………………………………………………………………………………………………… 19, 20

Office Lease Expirations by Market by Quarter …………………………………………………………………………………………………………………………21

Industrial Lease Expirations by Market by Quarter …………………………………………………………………………………………………………………………22

Office Lease Expirations by Market by Year …………………………………………………………………………………………………………………………23

Industrial Lease Expirations by Market by Year …………………………………………………………………………………………………………………………24

Customer Diversification ………………………………………………………………………………………………………………………… 25

Same Property Performance …………………………………………………………………………………………………………………………26

Acquisition Activity ………………………………………………………………………………………………………………………… 27, 28

Disposition Activity ………………………………………………………………………………………………………………………… 29, 30

Development Activity ………………………………………………………………………………………………………………………… 31

Land Held for Development …………………………………………………………………………………………………………………………32

Unconsolidated Joint Ventures Assets, Debt and Liabilities …………………………………………………………………………………………………………………………33

Unconsolidated Joint Ventures Income Quarter Ended 12/31/13 …………………………………………………………………………………………………………………………34

Unconsolidated Joint Ventures Income Year Ended 12/31/13 …………………………………………………………………………………………………………………………35

Unconsolidated Joint Ventures Mortgage Debt Detail …………………………………………………………………………………………………………………………36

Joint Ventures Portfolio Summary …………………………………………………………………………………………………………………………37

Joint Ventures Lease Expirations …………………………………………………………………………………………………………………………38

Joint Ventures Acquisition and Disposition Activity …………………………………………………………………………………………………………………………39

The information within refers to all Highwoods Properties' wholly-owned entities, except pages 33 to 39, unless noted otherwise. Wholly-owned

entities include properties classified as both continuing operations and discontinued operations. Retail square footage presented throughout this

document excludes 211,000 square feet of basement space at the Country Club Plaza in Kansas City.

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 other risks listed at the end of our fourth quarter earnings press release and detailed from time to time in the Company’s

SEC reports. Highwoods assumes no obligation to update or supplement forward-looking statements that become untrue of subsequent events.

This supplemental also includes non-GAAP financial measures, such as Funds From Operations (FFO) and net operating income (NOI). Definitions

of FFO and NOI and an explanation of management's view of the usefulness and risks of FFO and NOI can be found toward the end of the fourth

quarter earnings press release.

COVER PHOTO

Pictured is The Pinnacle at Symphony Place

located in the CBD submarket

in Nashville, acquired in September 2013

Table of Contents

TOC

12/31/13 9/30/13 6/30/13 3/31/13 12/31/12

Shares and units:

Common Shares outstanding at end of period 89,921 89,911 83,968 82,131 80,311

Common Units outstanding at end of period 2,944 2,944 3,661 3,723 3,733

Weighted average Common Shares outstanding - basic 89,913 87,467 82,811 81,029 79,110

Weighted average Common Shares outstanding - diluted 92,971 90,769 86,631 84,862 82,998

Financial information: 1/

Lease termination income 2/ 402$ 452$ 1,107$ 81$ 26$

Straight-line rental income 2/ 5,924 4,081 2,764 5,553 4,346

Capitalized interest 791 804 707 429 365

Property acquisition costs (116) (771) (406) (494) (752)

Losses on debt extinguishment 3/ (3) (157) - (164) -

Land sale gains/(losses) - 34 (37) - -

Gains on for-sale residential condominiums - - - - 189

Gains on disposition of depreciable properties 4/ 5/ 11,439 37,946 13,173 1,665 1,120

Gain on merchant build disposition, net of taxes 6/ 3,185 - - - -

Gain on acquisition of controlling interest in

unconsolidated affiliate 5/ - 7,451 - - -

Impairments of depreciable properties 5/ 7/ - (3,487) (1,066) (2,148) -

Funds from operations per share - diluted 0.74$ 0.70$ 0.70$ 0.67$ 0.67$

Funds from operations per share - diluted,

excluding certain items 8/ 0.74$ 0.71$ 0.70$ 0.68$ 0.68$

Wholly - owned property information:

In-Service rentable square feet:

Office 25,715 26,549 24,353 23,798 23,361

Industrial 2,743 2,743 4,420 5,474 5,474

Retail 834 843 843 852 853

Total 29,292 30,135 29,616 30,124 29,688

In-Service occupancy:

Office 89.2% 89.2% 88.9% 89.6% 90.0%

Industrial 94.1% 95.1% 94.8% 93.9% 93.2%

Retail 97.3% 98.0% 97.3% 96.0% 98.6%

Total 89.9% 90.0% 90.0% 90.6% 90.9%

1/ Includes those properties that qualified for discontinued operations.

2/ Straight-line rental write-offs related to lease terminations are reflected as a reduction of lease termination income.

3/ $0.1 million of the September 30, 2013 amount represents our share of losses on debt extinguishment recorded by an unconsolidated

joint venture.

4/ December 31, 2012 amount and $0.4 million of the March 31, 2013 amount are the Company's share of gains on disposition of

depreciable properties recorded by unconsolidated joint ventures.

5/ Not included in funds from operations.

6/ Represents the Company's share of gain recorded by an unconsolidated joint venture, net of income taxes incurred by the Company's

taxable REIT subsidiary, which owns the joint venture interest. This net gain is included in funds from operations.

7/ $1.0 million of the March 31, 2013 amount and the September 30, 2013 amount represents our share of impairments of depreciable

properties recorded by an unconsolidated joint venture.

8/ Represents funds from operations per diluted share excluding losses on debt extinguishment and property acquisition costs.

Three Months Ended

Summary (amounts in thousands, except percents and per share amounts)

i

Board of Directors Division Officers

Thomas W. Adler Atlanta

Gene H. Anderson Jim Bacchetta, Vice President

Edward J. Fritsch Kansas City

David J. Hartzell, Ph.D. Glenn Stephenson, Vice President

Sherry A. Kellett Memphis

Mark F. Mulhern Steve Guinn, Vice President

L. Glenn Orr Jr. Nashville, Greenville

O. Temple Sloan Jr., Chairman Brian Reames, Senior Vice President

Orlando

Corporate Officers Steve Garrity, Vice President

Piedmont Triad

Dan Clemmens Rick Dehnert, Vice President

Vice President, Chief Accounting Officer Pittsburgh

Hugh Esleeck Andy Wisniewski, Vice President

Treasurer Raleigh

Ed Fritsch Skip Hill, Vice President

President, Chief Executive Officer and Director Richmond

Mike Harris Paul Kreckman, Vice President

Executive Vice President, Chief Operating Officer Tampa

Ted Klinck Dan Woodward, Vice President

Vice President, Chief Investment Officer

Carman Liuzzo

Vice President, Investments

Art McCann

Chief Information Officer

Jeff Miller

Vice President, General Counsel and Secretary

Kevin Penn

Vice President, Chief Strategy and

Administration Officer

Randy Roberson

Vice President, Development

Mike Starchville

Vice President, Asset Management

Terry Stevens

Senior Vice President, Chief Financial Officer

Tabitha Zane

Vice President, Investor Relations and

Corporate Communications

Corporate Information

ii

Research Coverage Corporate Headquarters

Highwoods Properties, Inc.

Bank of America/Merrill Lynch 3100 Smoketree Court, Suite 600

Jamie Feldman Raleigh, NC 27604

212-449-6339 919-872-4924

Citigroup Global Markets Stock Exchange

Michael Bilerman NYSE: HIW

212-816-1383

Investor Relations Contact

Cowen and Company Tabitha Zane

James Sullivan Vice President, Investor Relations and Corporate Communications

646-562-1380 Phone: 919-431-1529

Fax: 919-431-1439

Green Street Advisors [email protected]

Michael Knott http://www.highwoods.com/

949-640-8780

Information Request

Jefferies & Company, Inc. To request a Supplemental Package or Annual Report

Tayo Okusanya or to be added to our e-mail distribution list, please contact

212-336-7076 Investor Relations at the contact information listed above.

Morgan Stanley

Vance Edelson The Company

212-761-0078 Highwoods Properties, Inc., a member of the S&P MidCap 400 Index,

is a fully integrated real estate investment trust ("REIT") that provides

Oppenheimer & Co. leasing, management, development, construction and other

Steve Manaker customer-related services for its properties and for third parties. As

212-667-5950 of December 31, 2013, Highwoods owned or had an interest in

32.2 million rentable square feet of in-service office, industrial and

RBC Capital Markets retail properties, 0.9 million rentable square feet of office properties

Michael Salinski under development and approximately 600 acres of development

440-715-2648 land. The Company's properties and development land are

located in Florida, Georgia, Missouri, North Carolina, Pennsylvania,

RW Baird South Carolina, Tennessee and Virginia. For more information

David Rodgers about Highwoods, please visit our website at www.highwoods.com.

216-737-7341

Stifel Nicolaus

John Guinee

443-224-1307

Erin Aslakson

443-224-1350

Wells Fargo Securities, LLC

Brendan Maiorana

443-263-6516

Corporate Information

iii

Year Ended

12/31/13 12/31/12 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12

Rental and other revenues 556,810$ 485,046$ 148,988$ 144,827$ 132,618$ 130,377$ 126,316$

Operating expenses:

Rental property and other expenses 203,344 176,744 55,331 54,102 47,317 46,594 46,507

Depreciation and amortization 176,957 146,357 48,907 47,338 40,624 40,088 38,076

General and administrative 37,193 37,377 9,245 8,969 8,397 10,582 9,079

Total operating expenses 417,494 360,478 113,483 110,409 96,338 97,264 93,662

Interest expense:

Contractual 88,838 92,838 20,959 22,683 22,398 22,798 22,529

Amortization of deferred financing costs 3,802 3,685 942 963 948 949 976

Financing obligations 63 (409) (24) 26 (60) 121 (52)

92,703 96,114 21,877 23,672 23,286 23,868 23,453

Other income:

Interest and other income 6,597 7,353 1,615 1,582 1,617 1,783 1,470

Losses on debt extinguishment (199) (973) (3) (32) - (164) -

6,398 6,380 1,612 1,550 1,617 1,619 1,470

Income from continuing operations before disposition of investment

properties and activity in unconsolidated affiliates 53,011 34,834 15,240 12,296 14,611 10,864 10,671

Gains/(losses) on disposition of property (3) - - 34 (37) - -

Gains on for-sale residential condominiums - 444 - - - - 189

Gain on acquisition of controlling interest in unconsolidated affiliate 7,451 - - 7,451 - - -

Equity in earnings/(losses) of unconsolidated affiliates 2,264 5,035 4,088 (3,173) 913 436 2,365

Income from continuing operations 62,723 40,313 19,328 16,608 15,487 11,300 13,225

Discontinued operations:

Income from discontinued operations 6,776 14,467 923 1,514 1,995 2,344 2,384

Impairments of real estate assets (2,194) - - - (1,066) (1,128) -

Net gains on disposition of discontinued operations 63,792 29,455 11,439 37,946 13,163 1,244 -

68,374 43,922 12,362 39,460 14,092 2,460 2,384

Net income 131,097 84,235 31,690 56,068 29,579 13,760 15,609

Net (income) attributable to noncontrolling interests in the Operating Partnership (4,691) (3,854) (978) (1,889) (1,243) (581) (688)

Net (income) attributable to noncontrolling interests in consolidated affiliates (949) (786) (356) (203) (187) (203) (220)

Dividends on Preferred Stock (2,508) (2,508) (627) (627) (627) (627) (627)

Net income available for common stockholders 122,949$ 77,087$ 29,729$ 53,349$ 27,522$ 12,349$ 14,074$

Earnings per Common Share – basic:

Income from continuing operations available for common stockholders 0.67$ 0.47$ 0.20$ 0.17$ 0.17$ 0.12$ 0.15$

Income from discontinued operations available for common stockholders 0.77 0.55 0.13 0.44 0.16 0.03 0.03

Net income available for common stockholders 1.44$ 1.02$ 0.33$ 0.61$ 0.33$ 0.15$ 0.18$

Weighted average Common Shares outstanding - basic 85,335 75,811 89,913 87,467 82,811 81,029 79,110

Earnings per Common Share - diluted:

Income from continuing operations available for common stockholders 0.67$ 0.47$ 0.20$ 0.17$ 0.17$ 0.12$ 0.15$

Income from discontinued operations available for common stockholders 0.77 0.55 0.13 0.44 0.16 0.03 0.03

Net income available for common stockholders 1.44$ 1.02$ 0.33$ 0.61$ 0.33$ 0.15$ 0.18$

Weighted average Common Shares outstanding - diluted 88,836 79,678 92,971 90,769 86,631 84,862 82,998

Dividends declared per Common Share 1.70$ 1.70$ 0.425$ 0.425$ 0.425$ 0.425$ 0.425$

Net income available for common stockholders:

Income from continuing operations available for common stockholders 57,081$ 35,252$ 17,760$ 15,290$ 14,033$ 9,998$ 11,799$

Income from discontinued operations available for common stockholders 65,868 41,835 11,969 38,059 13,489 2,351 2,275

Net income available for common stockholders 122,949$ 77,087$ 29,729$ 53,349$ 27,522$ 12,349$ 14,074$

1/ Our Consolidated Statements of Income were retrospectively revised from previously reported amounts to reflect in discontinued operations the

operations for those properties that qualified for discontinued operations.

Three Months Ended

Consolidated Statements of Income 1/ (amounts in thousands, except per share amounts)

1

Year Ended Three Months Ended

12/31/13 12/31/12 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12

Funds from operations:

Net income 131,097$ 84,235$ 31,690$ 56,068$ 29,579$ 13,760$ 15,609$

Net (income) attributable to noncontrolling interests in consolidated affiliates (949) (786) (356) (203) (187) (203) (220)

Depreciation and amortization of real estate assets 174,683 144,275 48,346 46,775 40,044 39,518 37,516

(Gain) on acquisition of controlling interest in unconsolidated affiliate (7,451) - - (7,451) - - -

Unconsolidated affiliates:

Depreciation and amortization of real estate assets 6,796 7,736 1,061 1,628 2,092 2,015 1,935

Impairments of depreciable properties 4,507 1,002 - 3,487 - 1,020 -

(Gains) on disposition of depreciable properties (431) (1,120) - - (10) (421) (1,120)

Discontinued operations:

Depreciation and amortization of real estate assets 5,753 11,970 247 1,451 1,851 2,204 2,487

Impairments of depreciable properties 2,194 - - - 1,066 1,128 -

(Gains) on disposition of depreciable properties (63,792) (29,455) (11,439) (37,946) (13,163) (1,244) -

Funds from operations 252,407 217,857 69,549 63,809 61,272 57,777 56,207

Dividends on Preferred Stock (2,508) (2,508) (627) (627) (627) (627) (627)

Funds from operations available for common stockholders 249,899$ 215,349$ 68,922$ 63,182$ 60,645$ 57,150$ 55,580$

Funds from operations available for common stockholders per share 2.81$ 2.70$ 0.74$ 0.70$ 0.70$ 0.67$ 0.67$

Weighted average shares outstanding 88,836 79,678 92,971 90,769 86,631 84,862 82,998

Additional information: 1/

Funds from operations per share, excluding certain items 2/ 2.84$ 2.73$ 0.74$ 0.71$ 0.70$ 0.68$ 0.68$

Funds from operations available for common stockholders 2/ 252,010$ 217,861$ 69,041$ 64,110$ 61,051$ 57,808$ 56,332$

Straight-line rental income (18,322)$ (19,091)$ (5,924)$ (4,081)$ (2,764)$ (5,553)$ (4,346)$

Straight-line rental write-offs related to termination fees 613 1,275 14 120 471 8 14

Amortization of lease incentives 1,428 1,439 348 352 345 383 363

Depreciation of non-real estate assets 1,700 1,624 416 418 437 429 415

Ground lease straight-line rent expense 172 82 156 4 6 6 14

Share-based compensation expense 6,899 7,613 1,003 1,159 1,297 3,440 1,149

Amortization of deferred financing costs 3,802 3,685 942 963 948 949 976

Amortization of accumulated other comprehensive loss (12) (138) 80 (13) (40) (39) (36)

Amortization of Harborview financing obligation (1,889) (1,678) (500) (440) (506) (443) (429)

Amortization of above/(below) market leases and other adjustments (1,083) (1,084) (262) (171) (271) (379) (367)

Non-incremental revenue generating capital expenditures incurred: 3/

Building improvements (14,672) (10,881) (4,209) (4,370) (3,047) (3,046) (3,464)

2nd generation tenant improvements (49,608) (40,619) (7,290) (13,429) (16,874) (12,015) (7,456)

2nd generation lease commissions (18,957) (19,138) (3,905) (6,048) (4,314) (4,690) (5,475)

Common dividends and unit distributions paid (151,631) (134,986) (39,465) (39,463) (36,860) (35,843) (35,131)

1/ Increase or (decrease) to cash flows.

2/ Excludes losses on debt extinguishment and property acquisition costs and includes those properties that qualified for discontinued operations.

3/ Excludes capital expenditures (a) incurred within 12 months prior to the disposition date for buildings sold, (b) related to first generation leases and

leases with respect to vacant space in acquired buildings, (c) building improvements that are recoverable from future operating cost savings

and (d) property re-developments.

Funds from Operations and Additional Information (amounts in thousands, except per share amounts)

2

Assets: 12/31/13 12/31/12

Real estate assets, at cost:

Land 393,602$ 332,337$

Buildings and tenant improvements 3,748,869 3,099,943

Development in process 44,621 21,198

Land held for development 110,374 115,416

4,297,466 3,568,894

Less-accumulated depreciation (985,244) (876,446)

Net real estate assets 3,312,222 2,692,448

Real estate and other assets, net, held for sale - 191,327

Cash and cash equivalents 10,184 13,783

Restricted cash 14,169 19,702

Accounts receivable, net of allowance of $1,648 and $2,848, respectively 26,430 23,073

Mortgages and notes receivable, net of allowance of $302 and $182, respectively 26,409 25,472

Accrued straight-line rents receivable, net of allowance of $1,063 and $813, respectively 126,014 109,401

Investments in and advances to unconsolidated affiliates 29,901 66,800

Deferred financing and leasing costs, net of accumulated amortization of $92,220 and $75,008,

respectively 222,211 163,964

Prepaid expenses and other assets, net of accumulated amortization of $12,905 and $12,318,

respectively 39,561 44,458

Total Assets 3,807,101$ 3,350,428$

Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:

Mortgages and notes payable 1,956,299$ 1,859,162$

Accounts payable, accrued expenses and other liabilities 218,962 172,146

Financing obligations 26,664 29,358

Total Liabilities 2,201,925 2,060,666

Commitments and contingencies

Noncontrolling interests in the Operating Partnership 106,480 124,869

Equity:

Preferred Stock, $.01 par value, 50,000,000 authorized shares;

8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per

share), 29,077 shares issued and outstanding 29,077 29,077

Common Stock, $.01 par value, 200,000,000 authorized shares;

89,920,915 and 80,311,437 shares issued and outstanding, respectively 899 803

Additional paid-in capital 2,370,368 2,040,306

Distributions in excess of net income available for common stockholders (920,433) (897,418)

Accumulated other comprehensive loss (2,611) (12,628)

Total Stockholders' Equity 1,477,300 1,160,140

Noncontrolling interests in consolidated affiliates 21,396 4,753

Total Equity 1,498,696 1,164,893

Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity 3,807,101$ 3,350,428$

Consolidated Balance Sheets (dollars in thousands)

3

Note: The purpose of providing the following information at the beginning of each year is to enable readers to derive their own estimate of net asset

value. The Company updates this information annually based on management's assumptions regarding projected current year net operating income

for the existing property portfolio as of the date of initial publication (February 10, 2014), and it will not be updated to reflect any facts, circumstances

or changes in financial or operating assumptions that may occur during the year. This information is not intended to be an asset-by-asset or

enterprise valuation.

Consolidated properties projected net operating income (NOI) 1/

Office 314,131$

Retail 22,493

Industrial 9,218

Deduct partner's share of consolidated JV's (Office) (4,762)

Total Net Operating Income 341,080$

Highwoods' share of unconsolidated joint ventures, projected NOI

Office 6,295$

Other income

Development, leasing and management fees 3,207$

Other assets:

Development investment at cost 48,143$

In-service assets not fairly valued by capitalized NOI valuation method 1/

Consolidated assets 136,541

Highwoods' share of unconsolidated JV's assets 16,554

Land held for development at market value 2/ 125,000

Cash and cash equivalents 10,184

Restricted cash 14,169

Accounts receivable, net 26,430

Notes receivable and prepaid expenses 3/ 82,570

Highwoods' share of unconsolidated JV's other assets 16,740

Deduct partner's share of consolidated JV's other assets (4,326)

Total other assets 472,005$

Liabilities:

Mortgages and notes payable 1,956,299$

Accounts payable, accrued expenses and other liabilities 218,962

Deduct partner's share of Consolidated JV's liabilities (1,468)

Market value of debt adjustment 4/ 81,086

Preferred stock, at liquidation value 29,077

Highwoods' share of unconsolidated joint ventures liabilities 67,877

Market value of debt adjustment for JV debt 4/ (4,674)

Total deductions 2,347,159$

1/ Projected 2014 NOI for the existing property portfolio excludes straight-line income, lease termination fee income, fee income, NOI related

to completed not stabilized developments, and NOI related to assets undervalued by capitalized NOI method. For the assets in the last two

categories, a NOI capitalization approach is not appropriate and accordingly an alternative valuation methodology has been applied.

2/ Includes Highwoods' share of JV land held for development totaling $4.9 million.

3/ Includes $16.6 million of notes receivable from partner's share of consolidated Harborview JV.

4/ In accordance with prior practice, we included an adjustment to mark our debt including our pro rata share of unconsolidated joint venture to

estimated fair value as of December 31, 2013.

Note: Information presented herein does not include the effect of any acquisitions and dispositions subsequent to December 31, 2013.

Components of Net Asset Value (dollars in thousands)

4

Year Ended Three Months Ended

12/31/13 12/31/12 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12

Continuing Operations Revenue Detail

Rental and other revenues

Contractual rents, net 474,163$ 413,650$ 126,719$ 122,528$ 113,964$ 110,952$ 108,010$

Straight-line rental income, net 17,226 16,104 5,789 3,767 2,548 5,122 3,461

Amortization of lease incentives (1,409) (1,389) (347) (347) (339) (376) (356)

Cost recovery income, net 43,586 38,547 11,511 11,699 10,504 9,872 9,742

Lease termination fees 2,030 1,848 402 452 1,095 81 26

Fee income 5,557 4,965 870 2,338 1,204 1,145 1,487

Other miscellaneous operating revenues 15,657 11,321 4,044 4,390 3,642 3,581 3,946

556,810$ 485,046$ 148,988$ 144,827$ 132,618$ 130,377$ 126,316$

Discontinued Operations

Rental and other revenues 20,812$ 41,176$ 2,275$ 5,277$ 6,262$ 6,998$ 7,666$

Operating expenses:

Rental property and other expenses 8,283 14,456 1,105 2,312 2,416 2,450 2,795

Depreciation and amortization 5,753 11,970 247 1,451 1,851 2,204 2,487

Total operating expenses 14,036 26,426 1,352 3,763 4,267 4,654 5,282

Interest expense - 283 - - - - -

Income from discontinued operations 6,776 14,467 923 1,514 1,995 2,344 2,384

Impairments of real estate assets (2,194) - - - (1,066) (1,128) -

Net gains on disposition of discontinued operations 63,792 29,455 11,439 37,946 13,163 1,244 -

Total discontinued operations 68,374$ 43,922$ 12,362$ 39,460$ 14,092$ 2,460$ 2,384$

Revenue Detail; Discontinued Operations Detail (dollars in thousands)

5

12/31/13 9/30/13 6/30/13 3/31/13 12/31/12

Mortgages and Notes Payable (see pages 7 & 8): 1,956,299$ 2,050,061$ 1,931,655$ 1,896,300$ 1,859,162$

Financing Obligations: 26,664$ 28,192$ 28,392$ 29,251$ 29,358$

Preferred Stock (at liquidation value):

Series A 8 5/8% Cumulative Redeemable 29,077$ 29,077$ 29,077$ 29,077$ 29,077$

Common Shares and Units Outstanding:

Common stock outstanding 89,921 89,911 83,968 82,131 80,311

Noncontrolling interest partnership units 2,944 2,944 3,661 3,723 3,733

Total Common Shares and Units outstanding 92,865 92,855 87,629 85,854 84,044

Stock price at period end 36.17$ 35.31$ 35.61$ 39.57$ 33.45$

Market value of common equity 3,358,927$ 3,278,710$ 3,120,469$ 3,397,243$ 2,811,272$

Total capitalization with debt and obligations 5,370,967$ 5,386,040$ 5,109,593$ 5,351,871$ 4,728,869$

Capitalization

Capitalization (dollars, shares and units in thousands)

Debt and Financing

Obligations 36.9%

Preferred Stock 0.5%

Common Equity 62.6%

6

Balances Outstanding: 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12

Secured:

Conventional fixed rate 488,664$ 591,821$ 544,510$ 547,150$ 549,607$

Unsecured - Fixed:

Fixed rate bonds and notes 826,935 826,840 826,745 826,650 826,555

Bank term loan - 2019 1/ 225,000 225,000 225,000 225,000 225,000

Unsecured - fixed total 1,051,935 1,051,840 1,051,745 1,051,650 1,051,555

Unsecured - Floating:

Bank term loan - 2013 - - - - 35,000

Bank term loan - 2019 200,000 200,000 200,000 200,000 200,000

Credit facility - 2019 2/ 215,700 206,400 135,400 97,500 23,000

Unsecured - floating total 415,700 406,400 335,400 297,500 258,000

Unsecured total 1,467,635 1,458,240 1,387,145 1,349,150 1,309,555

Total 1,956,299$ 2,050,061$ 1,931,655$ 1,896,300$ 1,859,162$

End of Period Weighted Average Interest Rates:

Secured:

Conventional fixed rate 4.98% 5.03% 5.75% 5.75% 5.75%

Unsecured - Fixed:

Fixed rate bonds 5.63% 5.63% 5.63% 5.64% 5.64%

Bank term loan - 2019 1/ 3.43% 3.43% 3.58% 3.58% 3.58%

Unsecured - fixed total 5.16% 5.16% 5.19% 5.19% 5.19%

Unsecured - Floating:

Bank term loan - 2013 - - - - 2.42%

Bank term loan - 2019 1.37% 1.54% 1.85% 1.86% 1.87%

Credit facility - 2019 2/ 1.27% 1.48% 1.49% 1.70% 1.71%

Unsecured - floating total 1.32% 1.51% 1.70% 1.81% 1.93%

Unsecured total 4.07% 4.14% 4.35% 4.45% 4.55%

Weighted Average 4.30% 4.40% 4.75% 4.82% 4.91%

Maturity Schedule

1/ The interest rate on this loan is based on LIBOR plus a spread based on the company's credit rating. SWAP agreements effectively fix LIBOR for

the full term of the loan. The decline in the all-in rate during third quarter reflects a reduction in the spread as a result of a credit rating increase.

2/ Maturity reflects two six-month extension options related to $215.7 million of unsecured debt (Credit Facility).

3/ All periods exclude annual principal amortization.

Mortgages and Notes Payable Summary (dollars in thousands)

-

100

200

300

400

500

600

700

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

To

tal

Deb

t (i

n m

illio

ns)

Secured Debt 3/ Unsecured Debt

Weighted Average Maturity = 4.2 years

$

7

Undepreciated

Secured Loans Loan Book Value of

Effective Maturity Balance Real Estate & Related

Lender Rate Date 12/31/13 Assets Secured 1/

Metropolitan Life Ins. Co. 3.11% Jul-14 125,247$ 195,500$

Wells Fargo Bank, N.A. 4.22% Nov-17 118,126 213,700

New York Life Insurance Company 6.88% Jan-16 109,167 218,137

Western-Southern Life Assurance Company 7.50% Aug-16 45,103 72,759

Bank of America 6.43% Nov-15 39,609 52,600

Jackson National Life Insurance Company 3.34% Apr-15 37,340 80,600

Wells Fargo Bank, N.A. 3.32% Aug-14 7,417 13,152

State Farm Life Insurance 7.65% Feb-16 6,655 16,247

4.98% 488,664 862,695$

Unsecured Bonds

Bonds 5.88% Mar-17 379,311

Bonds 3.75% Jan-23 247,624

Bonds 7.50% Apr-18 200,000

5.63% 826,935

Unsecured Loans

Bank term loan 2/ 3.43% Jan-19 225,000

Credit facility 3/ 4/ 1.27% Jan-19 215,700

Bank term loan 3/ 1.37% Jan-19 200,000

2.06% 640,700

Total Debt 4.30% 1,956,299$

Secured and Unsecured Debt Fixed and Variable Rate Debt

1/ The undepreciated book value of assets securing certain of these loans for acquired assets includes planned near-term building and leasing

improvements.

2/ This loan maturing January 2019 is swapped to an effective fixed rate of 3.43% for the full term of the loan.

3/ Floating rate loans based on one month LIBOR.

4/ Maturity date reflects two six month extension options.

Mortgages and Notes Payable Detail (dollars in thousands)

Secured 24.98%

Unsecured 75.02%

Fixed 77.47%

Variable 22.53%

sort

8

12/31/13 9/30/13 6/30/13 3/31/13 12/31/12

Total In-Service

Rentable Square Footage

Office 25,715,000 26,549,000 24,353,000 23,798,000 23,361,000

Industrial 2,743,000 2,743,000 4,420,000 5,474,000 5,474,000

Retail 834,000 843,000 843,000 852,000 853,000

Total 29,292,000 30,135,000 29,616,000 30,124,000 29,688,000

Occupancy

Office 89.2% 89.2% 88.9% 89.6% 90.0%

Industrial 94.1% 95.1% 94.8% 93.9% 93.2%

Retail 97.3% 98.0% 97.3% 96.0% 98.6%

Total 89.9% 90.0% 90.0% 90.6% 90.9%

Rentable Square Feet and Occupancy Trend: All Property Types

Rentable Square Feet and Occupancy Trend: Office Only

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

Portfolio Summary - Wholly-Owned Properties Only 1/

85%

87%

89%

91%

93%

95%

21.0

22.0

23.0

24.0

25.0

26.0

27.0

12/31/12 3/31/13 6/30/13 9/30/13 12/31/13

Occu

pan

cy

Sq

uare

Feet

in M

illio

ns

Rentable Square Feet Occupancy

85%

87%

89%

91%

93%

95%

28.0

28.5

29.0

29.5

30.0

30.5

12/31/12 3/31/13 6/30/13 9/30/13 12/31/13

Occu

pan

cy

Sq

uare

Feet

in M

illio

ns

Rentable Square Feet Occupancy

9

12/31/13 9/30/13 6/30/13 3/31/13 12/31/12

Same Property:

Rentable Square Feet

Office 20,515,000 20,515,000 20,515,000 20,515,000 20,515,000

Industrial 2,743,000 2,743,000 2,743,000 2,743,000 2,743,000

Retail 834,000 834,000 834,000 834,000 834,000

Total 24,092,000 24,092,000 24,092,000 24,092,000 24,092,000

Occupancy

Office 89.3% 90.3% 89.6% 89.9% 90.2%

Industrial 94.1% 95.1% 94.8% 95.5% 93.0%

Retail 97.3% 98.0% 97.3% 97.0% 98.6%

Total 90.1% 91.1% 90.5% 90.8% 90.8%

Development Completed - Not Stabilized:


Office 41,000 - - - -

Industrial - - - - -

Retail - - - - -

Total 41,000 - - - -

Occupancy

Office 79.2% - - - -


Retail - - - - -

Total 79.2% - - - -

Development - In Process:


Office 909,000 2/ 1,096,000 501,000 501,000 246,000


Retail - - - - -

Total 909,000 2/ 1,096,000 501,000 501,000 246,000

Percent Leased/Pre-Leased

Office 86.3% 88.0% 93.0% 92.6% 89.9%


Retail - - - - -

Total 86.3% 88.0% 93.0% 92.6% 89.9%


2/ Includes 75,000 square feet for 100% pre-leased Biologics build-to-suit development project that was signed in January, 2014.

Portfolio Summary - Wholly-Owned Properties Only 1/

10

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

Rentable Percentage of Annualized Cash Revenue 2/

Market Square Feet Occupancy Office Industrial Retail Total

Raleigh 4,411,000 90.1% 15.5% - - 15.5%

Atlanta 4,707,000 82.2% 14.3% 0.1% - 14.4%

Nashville 3,336,000 95.2% 13.0% - - 13.0%

Tampa 3,108,000 83.8% 10.9% - - 10.9%

Pittsburgh 2,157,000 93.0% 9.2% - - 9.2%

Kansas City 1,446,000 96.0% 2.7% - 6.2% 8.9%

Piedmont Triad 4,147,000 94.7% 4.9% 2.3% - 7.2%

Richmond 2,229,000 93.8% 7.2% - - 7.2%

Memphis 1,978,000 88.0% 6.9% - - 6.9%

Orlando 1,563,000 86.6% 6.1% - - 6.1%

Greenville 210,000 100.0% 0.7% - - 0.7%

Total 29,292,000 89.9% 91.4% 2.4% 6.2% 100.0%

Summary by Location, Including Joint Ventures:

Rentable Percentage of Annualized Cash Revenue 2/ 3/

Market Square Feet Occupancy Office Industrial Retail Total

Raleigh 5,047,000 90.9% 15.6% - - 15.6%

Atlanta 5,042,000 80.8% 14.1% 0.1% - 14.2%

Nashville 3,336,000 95.2% 12.5% - - 12.5%

Tampa 3,313,000 84.2% 10.7% - - 10.7%

Kansas City 2,165,000 91.7% 3.7% - 6.0% 9.7%

Pittsburgh 2,157,000 93.0% 8.9% - - 8.9%

Richmond 2,640,000 94.2% 7.6% - - 7.6%

Piedmont Triad 4,265,000 93.5% 4.8% 2.2% - 7.0%

Memphis 1,978,000 88.0% 6.7% - - 6.7%

Orlando 2,080,000 85.9% 6.4% - - 6.4%

Greenville 210,000 100.0% 0.7% - - 0.7%

Total 32,233,000 89.4% 91.7% 2.3% 6.0% 100.0%

Annualized Cash Revenue by Market, Including Joint Ventures 2/ 3/


2/ Annualized Cash Revenue is December, 2013 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line

rental income) multiplied by 12.

3/ Includes Highwoods' share of Joint Venture Annualized Cash Revenue, see page 37.

Portfolio Summary (as of 12/31/13)

0%

2%

4%

6%

8%

10%

12%

14%

16%

Raleigh Atlanta Nashville Tampa Kansas City Pittsburgh Richmond PiedmontTriad

Memphis Orlando Greenville

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11

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

Percentage Percentage

of Segment of Total

Annualized Annualized

Rentable Cash Cash

Market Square Feet Occupancy Revenue 2/ Revenue 2/

Office

Raleigh 4,411,000 90.1% 17.0% 15.5%

Atlanta 4,507,000 82.8% 15.5% 14.3%

Nashville 3,336,000 95.2% 14.2% 13.0%

Tampa 3,108,000 83.8% 11.9% 10.9%

Pittsburgh 2,157,000 93.0% 10.1% 9.2%

Richmond 2,229,000 93.8% 7.9% 7.2%

Memphis 1,978,000 88.0% 7.6% 6.9%

Orlando 1,563,000 86.6% 6.6% 6.1%

Piedmont Triad 1,604,000 92.5% 5.4% 4.9%

Kansas City 612,000 94.3% 3.0% 2.7%

Greenville 210,000 100.0% 0.8% 0.7%

25,715,000 89.2% 100.0% 91.4%

Industrial

Piedmont Triad 2,543,000 96.1% 94.5% 2.3%

Atlanta 200,000 68.8% 5.5% 0.1%

2,743,000 94.1% 100.0% 2.4%

Retail

Kansas City 834,000 97.3% 100.0% 6.2%

834,000 97.3% 100.0% 6.2%

Annualized Office Cash Revenue by Market 2/


2/ Annualized Cash Revenue is December, 2013 cash rental revenue (base rent plus operating expense pass through revenue excluding

straight-line rental income) multiplied by 12.

Portfolio Summary - (as of 12/31/13)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Raleigh Atlanta Nashville Tampa Pittsburgh Richmond Memphis Orlando PiedmontTriad

Kansas City Greenville

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12

Market Measurement 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12

Atlanta Rentable Square Feet 4,707,000 4,765,000 5,937,000 6,438,000 6,439,000

Occupancy 82.2% 86.1% 88.4% 88.6% 89.0%

Current Properties 2/ 82.5% 88.5% 87.4% 85.7% 85.6%

Greenville Rentable Square Feet 210,000 897,000 897,000 897,000 897,000

Occupancy 100.0% 79.5% 80.2% 83.4% 85.2%


Kansas City Rentable Square Feet 1,446,000 1,455,000 1,455,000 1,464,000 1,465,000

Occupancy 96.0% 96.4% 95.6% 94.9% 95.0%


Memphis Rentable Square Feet 1,978,000 1,960,000 1,960,000 1,960,000 1,960,000

Occupancy 88.0% 86.2% 85.5% 84.9% 86.5%


Nashville Rentable Square Feet 3,336,000 3,132,000 2,612,000 2,612,000 2,610,000

Occupancy 95.2% 94.7% 95.5% 95.6% 95.6%


Orlando Rentable Square Feet 1,563,000 1,562,000 283,000 283,000 416,000

Occupancy 86.6% 86.9% 91.9% 92.0% 94.5%


Piedmont Triad Rentable Square Feet 4,147,000 4,369,000 4,369,000 4,371,000 4,176,000

Occupancy 94.7% 94.0% 93.6% 93.2% 91.8%


Pittsburgh Rentable Square Feet 2,157,000 2,157,000 2,157,000 2,156,000 2,156,000

Occupancy 93.0% 94.2% 93.6% 91.2% 91.0%


Raleigh Rentable Square Feet 4,411,000 4,419,000 4,428,000 4,428,000 4,428,000

Occupancy 90.1% 90.6% 89.9% 88.9% 88.7%


Richmond Rentable Square Feet 2,229,000 2,229,000 2,230,000 2,230,000 2,229,000

Occupancy 93.8% 93.2% 93.8% 94.7% 94.9%


Tampa Rentable Square Feet 3,108,000 3,190,000 3,288,000 3,285,000 2,912,000

Occupancy 83.8% 83.4% 81.8% 89.2% 91.5%


Total Rentable Square Feet 29,292,000 30,135,000 29,616,000 30,124,000 29,688,000

Occupancy 89.9% 90.0% 90.0% 90.6% 90.9%



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

Occupancy Trends - Wholly-Owned Properties Only 1/ sort

13

Leasing Statistics

Three Months Ended Five Quarter

12/31/13 2/ 9/30/13 3/ 6/30/13 4/ 3/31/13 5/ 12/31/12 6/ Average

Leasing Activity:

Square footage of Renewal Deals 383,286 977,133 664,124 501,836 1,016,326 708,541

Square footage of New Deals 407,513 251,375 347,229 293,370 169,551 293,808

Rentable square footage leased 790,799 1,228,508 1,011,353 795,206 1,185,877 1,002,349

Renewed square footage (% of total) 48.5% 79.5% 65.7% 63.1% 85.7% 70.7%

New Leases square footage (% of total) 51.5% 20.5% 34.3% 36.9% 14.3% 29.3%

Number of lease transactions (signed leases) 129 158 138 122 130 135

Weighted average per rentable square foot

over the lease term:

Base rent 23.25$ 23.47$ 20.32$ 21.35$ 21.72$ 22.02$

Rent concessions (0.74) (0.46) (0.50) (0.62) (0.54) (0.57)

GAAP rent 22.51 23.01 19.82 20.73 21.18 21.45

Tenant improvements (2.48) (1.96) (1.85) (2.25) (1.92) (2.09)

Leasing commissions 7/ (0.73) (0.69) (0.63) (0.70) (0.69) (0.69)

Effective rent after capex 19.29 20.36 17.34 17.78 18.57 18.67

Expense stop (7.20) (6.79) (6.25) (7.89) (7.53) (7.13)

Effective rent after capex and opex 12.09$ 13.57$ 11.09$ 9.89$ 11.04$ 11.54$

Square feet weighted average term in years 6.1 6.1 4.7 6.1 5.4 5.7

Dollar weighted average term in years 6.1 6.4 4.7 6.3 5.4 5.8

Capital Expenditures Related to Above Leasing Activity:

Tenant Improvements:

Total dollars committed under signed leases 11,874,705$ 15,667,925$ 9,814,077$ 12,308,405$ 15,101,969$ 12,953,416$

Rentable square feet 790,799 1,228,508 1,011,353 795,206 1,185,877 1,002,349

Per rentable square foot 15.02$ 12.75$ 9.70$ 15.48$ 12.73$ 12.92$

Leasing Commissions:

Total dollars committed under signed leases 7/ 3,904,362$ 5,650,101$ 3,451,948$ 4,035,614$ 4,284,562$ 4,265,317$



Total:

Total dollars committed under signed leases 15,779,067$ 21,318,026$ 13,266,025$ 16,344,019$ 19,386,531$ 17,218,734$



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

square footage leased in spaces that were vacant at purchase.

2/ Includes 15,000 square feet of leases that start in 2016 or later.





7/ Excludes internal leasing costs.

Leasing Statistics: Office Portfolio 1/

14


12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 Average

Leasing Activity:

Square footage of Renewal Deals 172,022 42,164 74,126 264,095 102,189 130,919

Square footage of New Deals 18,000 41,544 12,140 89,474 70,594 46,350

Rentable square footage leased 190,022 83,708 86,266 353,569 172,783 177,270






Base rent 3.37$ 5.46$ 5.43$ 4.12$ 3.83$ 4.44$

Rent concessions (0.23) (0.15) (0.16) (0.17) (0.16) (0.17)

GAAP rent 3.14 5.31 5.27 3.95 3.67 4.27




Expense stop (0.38) (0.92) (0.96) (0.14) (0.73) (0.63)






Total dollars committed under signed leases 46,704$ 249,266$ 110,245$ 533,508$ 741,017$ 336,148$

Rentable square feet 190,022 83,708 86,266 353,569 172,783 177,270



Total dollars committed under signed leases 1/ 38,565$ 44,038$ 44,583$ 161,798$ 86,250$ 75,047$



Total:

Total dollars committed under signed leases 85,269$ 293,304$ 154,828$ 695,306$ 827,267$ 411,195$




Leasing Statistics: Industrial Portfolio

15


12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 Average

Leasing Activity:

Square footage of Renewal Deals 5,304 7,390 4,836 12,203 2,900 6,527

Square footage of New Deals - 6,042 11,072 10,519 2,119 5,950

Rentable square footage leased 5,304 13,432 15,908 22,722 5,019 12,477






Base rent 37.77$ 44.35$ 34.59$ 36.68$ 50.82$ 40.84$

Rent concessions 0.00 0.00 (0.20) (0.37) 0.00 (0.11)

GAAP rent 37.77 44.35 34.39 36.31 50.82 40.73




Expense stop 0.00 0.00 0.00 (0.64) 0.00 (0.13)






Total dollars committed under signed leases 75,025$ 412,940$ 1,046,889$ 638,238$ 202,661$ 475,151$




Total dollars committed under signed leases 1/ 25,111$ 24,960$ 176,278$ 157,085$ 97,884$ 96,264$



Total:

Total dollars committed under signed leases 100,136$ 437,900$ 1,223,167$ 795,323$ 300,545$ 571,414$




Leasing Statistics: Retail Portfolio

16

For Three Months Ended December 31, 2013

Office Portfolio 1/ Rentable GAAP Lease

Square Feet Average Rental TI's Commissions

Market Leased Term Rate Per SF Per SF 2/ 3/

Raleigh 176,215 4.2 22.40$ 18.29$ 2.67$

Nashville 174,232 6.0 22.92 8.98 5.19

Atlanta 93,669 8.5 26.65 31.40 10.55

Piedmont Triad 82,686 8.6 17.05 12.10 5.38

Richmond 72,179 4.4 19.31 6.02 2.31

Orlando 70,682 6.5 23.18 11.58 5.83

Memphis 57,612 5.9 22.80 14.28 3.09

Tampa 47,799 6.3 24.65 20.15 5.26

Kansas City 8,060 7.3 30.71 6.91 7.28

Pittsburgh 7,665 4.2 22.98 6.49 3.93

790,799 6.1 22.51$ 15.02$ 4.94$

Industrial Portfolio

Piedmont Triad 190,022 2.8 3.14$ 0.25$ 0.20$

190,022 2.8 3.14$ 0.25$ 0.20$

Retail Portfolio

Kansas City 5,304 3.4 37.77$ 14.14$ 4.73$

5,304 3.4 37.77$ 14.14$ 4.73$


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

3/ The amount of capitalized internal leasing cost not allocated to individual deals or product types totaled $903,000.

Leasing Statistics by Market

sort

17

For Three Months Ended December 31, 2013

Office Portfolio 1/ Rentable

Square Feet Current Previous Percentage

Market Leased Rent Rent Change

Raleigh 176,215 22.40$ 17.98$ 24.6%

Nashville 174,232 22.92 19.86 15.4%

Atlanta 93,669 26.65 24.03 10.9%

Piedmont Triad 82,686 17.05 18.13 -6.0%

Richmond 72,179 19.31 18.57 4.0%

Orlando 70,682 23.18 24.40 -5.0%

Memphis 57,612 22.80 20.85 9.4%

Tampa 47,799 24.65 28.85 -14.6%

Kansas City 8,060 30.71 32.15 -4.5%

Pittsburgh 7,665 22.98 19.35 18.8%

GAAP Rent Growth 2/ 790,799 22.51$ 20.74$ 8.5%

Cash Rent Growth 3/ 790,799 21.42$ 22.64$ -5.4%

Industrial Portfolio Rentable


Market Leased Rent Rent Change

Piedmont Triad 190,022 3.14$ 2.90$ 8.3%

GAAP Rent Growth 2/ 190,022 3.14$ 2.90$ 8.3%

Cash Rent Growth 3/ 190,022 3.25$ 3.54$ -8.3%

Retail Portfolio Rentable


Market Leased Rent Rent 4/ Change

Kansas City 5,304 37.77$ 41.85$ -9.7%

GAAP Rent Growth 2/ 5,304 37.77$ 41.85$ -9.7%

Cash Rent Growth 3/ 5,304 36.89$ 42.69$ -13.6%

Average Cash Rental Rates for All In-Place Leases as of: 1/

Type 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09

Office 21.48$ 20.86$ 20.39$ 20.13$ 20.61$

Industrial 5.13 4.92 5.30 5.26 5.19

Retail 4/ 41.17 39.36 36.36 33.78 34.69

Weighted average rate 20.48$ 18.42$ 17.84$ 17.40$ 17.53$

Percent Change 11.2% 3.3% 2.5% -0.7%


2/ GAAP rent growth is calculated by comparing average cash rent psf over the term (GAAP rent) of the new lease to the average cash rent psf over

the term related to the previous space. Adjustments are made if necessary to put both the current and prior deal on a consistent gross lease basis.

3/ Cash rent growth is calculated by comparing beginning annualized cash rent psf (after rent concessions burn off) under the new lease to ending

annualized cash rent psf (including recovery income and rent escalations) related to the previous space. Adjustments are made if necessary to put

both the current and prior deal on a consistent gross lease basis.

4/ Excludes percentage rent.

Rental Rate Comparisons by Market

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18

Percent of

Rentable Percent of Annualized Average Annualized

Square Feet Rentable Cash Rental Cash

Year Expiring Square Feet Revenue 1/ Rate Revenue 1/

Office 2/

2014 3/ 2,412,631 10.5% 50,433$ 20.90$ 10.2%

2015 2,398,817 10.4% 54,092 22.55 11.0%

2016 2,783,406 12.1% 58,857 21.15 11.9%

2017 2,780,439 12.2% 63,540 22.85 12.9%

2018 2,371,406 10.3% 51,768 21.83 10.5%

2019 2,294,337 10.0% 48,872 21.30 9.9%

2020 1,405,739 6.1% 32,211 22.91 6.5%

2021 1,836,072 8.0% 37,924 20.65 7.7%

2022 697,554 3.0% 15,769 22.61 3.2%

2023 901,599 3.9% 19,739 21.89 4.0%

2024 and thereafter 3,089,494 13.5% 60,164 19.47 12.2%

22,971,494 100.0% 493,369$ 21.48$ 100.0%

Industrial

2014 4/ 305,575 11.8% 1,548$ 5.07$ 11.7%

2015 426,160 16.5% 2,263 5.31 17.1%

2016 616,237 23.8% 3,107 5.04 23.4%

2017 273,388 10.6% 1,617 5.91 12.3%

2018 360,891 14.0% 1,665 4.61 12.6%

2019 105,990 4.1% 613 5.78 4.6%

2020 71,078 2.8% 357 5.02 2.7%

2021 117,805 4.6% 445 3.78 3.4%

2022 178,000 6.9% 824 4.63 6.2%

2023 - - - - -

2024 and thereafter 126,736 4.9% 798 6.30 6.0%

2,581,860 100.0% 13,237$ 5.13$ 100.0%

Retail

2014 5/ 114,693 14.2% 2,540$ 22.15$ 7.6%

2015 105,311 13.0% 3,680 34.94 11.0%

2016 61,640 7.6% 3,128 50.75 9.4%

2017 38,316 4.7% 1,613 42.10 4.8%

2018 100,668 12.4% 5,209 51.74 15.6%

2019 90,007 11.1% 3,124 34.71 9.3%

2020 46,972 5.8% 2,040 43.43 6.1%

2021 83,786 10.3% 3,607 43.05 10.8%

2022 91,196 11.2% 4,569 50.10 13.7%

2023 30,906 3.8% 1,749 56.59 5.2%

2024 and thereafter 48,213 5.9% 2,161 44.82 6.5%

811,708 100.0% 33,420$ 41.17$ 100.0%




3/ Includes 80,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

4/ Includes 44,000 square feet of leases that are on a month to month basis or less than 0.1% of total annualized revenue.


Note: 2014 and beyond expirations that have been renewed are reflected above based on the renewal expiration date. Expirations include leases

related to completed not stabilized development properties and exclude leases related to developments in-process.

Lease Expirations (dollars in thousands)

19

Percent of



Year Expiring Square Feet Revenue 1/ Rate Revenue 1/

Total

2014 2/ 3/ 2,832,899 10.7% 54,521$ 19.25$ 10.1%

2015 2,930,288 11.1% 60,035 20.49 11.1%

2016 3,461,283 13.2% 65,092 18.81 12.1%

2017 3,092,143 11.7% 66,770 21.59 12.4%

2018 2,832,965 10.7% 58,642 20.70 10.9%

2019 2,490,334 9.4% 52,609 21.13 9.7%

2020 1,523,789 5.8% 34,608 22.71 6.4%

2021 2,037,663 7.7% 41,976 20.60 7.8%

2022 966,750 3.7% 21,162 21.89 3.9%

2023 932,505 3.5% 21,488 23.04 4.0%

2024 and thereafter 3,264,443 12.5% 63,123 19.34 11.6%

26,365,062 100.0% 540,026$ 20.48$ 100.0%

Percent of Total Annualized Cash Revenue Expiring by Year





Note: 2014 and beyond expirations that have been renewed are reflected above based on the renewal expiration date. Expirations include leases

related to completed not stabilized development properties and exclude leases related to developments in-process.

Lease Expirations (dollars in thousands)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2014 2/ 3/ 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 andthereafter

20

Three Months Ended

3/31/14 2/ 6/30/14 9/30/14 12/31/14 Total

Atlanta RSF 104,197 17,786 202,538 19,412 343,933

% of Total Office RSF 0.5% 0.1% 0.9% 0.1% 1.5%

Annualized Cash Revenue 3/ 1,925$ 419$ 3,951$ 411$ 6,706$

% of Total Office Annl Cash Rev 0.4% 0.1% 0.8% 0.1% 1.4%

Greenville RSF 0 0 0 0 0


Annualized Cash Revenue 3/ -$ -$ -$ -$ -$


Kansas City RSF 28,950 12,392 2,887 8,926 53,155


Annualized Cash Revenue 3/ 466$ 301$ 77$ 230$ 1,074$


Memphis RSF 58,839 35,390 24,869 20,431 139,529


Annualized Cash Revenue 3/ 1,033$ 768$ 490$ 533$ 2,824$


Nashville RSF 232,978 61,346 83,219 70,687 448,230


Annualized Cash Revenue 3/ 5,312$ 1,438$ 1,938$ 1,715$ 10,403$


Orlando RSF 49,984 30,861 53,046 45,064 178,955


Annualized Cash Revenue 3/ 1,390$ 771$ 1,436$ 1,218$ 4,815$


Piedmont Triad RSF 8,164 26,419 52,229 150,558 237,370


Annualized Cash Revenue 3/ 129$ 526$ 962$ 2,923$ 4,540$


Pittsburgh RSF 62,678 1,625 927 0 65,230


Annualized Cash Revenue 3/ 1,618$ 28$ 31$ -$ 1,677$


Raleigh RSF 70,090 105,331 233,673 34,969 444,063


Annualized Cash Revenue 3/ 1,420$ 2,236$ 5,090$ 888$ 9,634$


Richmond RSF 51,415 52,372 118,283 36,053 258,123


Annualized Cash Revenue 3/ 1,048$ 1,044$ 2,443$ 737$ 5,272$


Tampa RSF 121,144 28,820 52,742 41,337 244,043


Annualized Cash Revenue 3/ 691$ 452$ 1,313$ 1,033$ 3,489$


Total RSF 788,439 372,342 824,413 427,437 2,412,631








Office Lease Expirations by Market by Quarter 1/ (dollars in thousands)

21

Three Months Ended

3/31/14 1/ 6/30/14 9/30/14 12/31/14 Total

Atlanta 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%





Total RSF 65,038 150,230 7,589 82,718 305,575







Industrial Lease Expirations by Market by Quarter (dollars in thousands)

22

2014 2/ 2015 2016 2017 Thereafter

Atlanta RSF 343,933 232,606 191,884 696,249 2,267,676




Greenville RSF 0 0 210,126 0 0


Annualized Cash Revenue 3/ -$ -$ 3,782$ -$ -$


Kansas City RSF 53,155 82,883 35,938 114,948 290,016


Annualized Cash Revenue 3/ 1,075$ 2,401$ 973$ 2,772$ 7,401$


Memphis RSF 139,529 217,407 183,852 228,332 971,060




Nashville RSF 448,230 452,944 426,879 185,997 1,686,143




Orlando RSF 178,955 160,882 155,166 239,830 618,429








Pittsburgh RSF 65,230 267,316 37,674 144,695 1,491,551


Annualized Cash Revenue 3/ 1,676$ 6,621$ 976$ 5,600$ 34,733$


Raleigh RSF 444,063 422,995 418,518 230,809 2,458,253




Richmond RSF 258,123 161,726 427,298 485,120 758,853




Tampa RSF 244,043 233,339 409,119 217,996 1,498,759




Total RSF 2,412,631 2,398,817 2,783,406 2,780,439 12,596,201








Office Lease Expirations by Market by Year 1/ (dollars in thousands)

23

2014 1/ 2015 2016 2017 Thereafter

Atlanta RSF 0 0 37,500 0 100,000


Annualized Cash Revenue 2/ -$ -$ 150$ -$ 579$






Total RSF 305,575 426,160 616,237 273,388 960,500







Industrial Lease Expirations by Market by Year (dollars in thousands)

24

Top 20 Customers

Percent of Average

Rentable Annualized Annualized Remaining

Square Cash Cash Lease

Customer Feet Revenue 2/ Revenue 2/ Term in Years

Federal Government 1,456,113 34,324$ 6.36% 4.3

PPG Industries 351,308 8,975 1.66% 7.4

Healthways 290,689 7,327 1.36% 8.4

HCA Corporation 278,207 6,758 1.25% 2.0

State of Georgia 364,687 6,688 1.24% 5.8

Bass, Berry & Sims 195,846 5,974 1.11% 11.1

EQT Corporation 280,592 5,972 1.11% 10.8

AT&T 274,533 5,864 1.09% 4.6

Marsh USA 188,719 5,257 0.97% 5.7

Lockton Companies 190,916 5,158 0.96% 16.2

BB&T 291,143 4,972 0.92% 2.7

PNC Bank 187,288 4,943 0.92% 11.9

Aon 190,683 4,865 0.90% 5.9

Vanderbilt University 198,783 4,611 0.85% 1.7

Syniverse Technologies 198,750 4,323 0.80% 2.8

Metropolitan Life Insurance 211,189 4,230 0.78% 5.5

SCI Services 3/ 162,784 3,967 0.73% 3.6

Global Payments 167,801 3,852 0.71% 7.2

Jacobs Engineering Group 210,126 3,782 0.70% 2.4

HDR Engineering 111,923 3,544 0.66% 3.6

5,802,080 135,386$ 25.08% 5.9

Percent of Annualized Revenue by Industry




3/ SCI Services is a wholly owned subsidiary of Morgan Stanley.

Customer Diversification 1/ (dollar in thousands)

Professional, Scientific, and Technical Services

22.5%

Finance/Banking 12.0%

Health Care and Social Assistance

9.4% Insurance 8.4%

Government/Public Administration

8.0%

Manufacturing 7.4%

Administrative and Support Services

5.9%

Retail Trade 5.1%

Real Estate Rental and Leasing

4.1%

Information 3.2%

Accommodation and Food Services

2.8%

Telecommunication 2.8%

Educational Services 2.1%

Other Services (except Public Administration)

1.8%

Transportation and Warehousing

1.8%

Wholesale Trade 1.4%

Energy 1.3%

sort

25

Three months ended

December 31, Dollar Percentage

2013 2012 Change B/(W) Change B/(W)

Rental revenues 1/ 112,609$ 113,908$ (1,299)$ (1.1%)

Operating expenses (41,820) (42,059) 239 0.6%

Cash NOI without Term Fees 70,789 71,849 (1,060) (1.5%)

Lease termination fees 2/ 402 26 376 1446.2%

Cash NOI with Term Fees 71,191 71,875 (684) (1.0%)

Straight-line rent 2/ 1,850 1,555 295 19.0%

GAAP NOI 73,041$ 73,430$ (389)$ (0.5%)

Average occupancy 90.1% 90.4% (0.3%)

Rentable square feet 24,092 24,092

Twelve months ended

December 31, Dollar Percentage

2013 2012 Change B/(W) Change B/(W)

Rental revenues 1/ 451,590$ 446,779$ 4,811$ 1.1%

Operating expenses (164,803) (164,837) 34 0.0%

Cash NOI without Term Fees 286,787 281,942 4,845 1.7%

Lease termination fees 2/ 2,031 1,847 184 10.0%

Cash NOI with Term Fees 288,818 283,789 5,029 1.8%

Straight-line rent 2/ 7,443 12,636 (5,193) (41.1%)

GAAP NOI 296,261$ 296,425$ (164)$ (0.1%)

Average occupancy 90.5% 90.4% 0.1%

Rentable square feet 24,092 24,092

Fourth Quarter: 2013 vs 2012 Twelve Months: 2013 vs 2012

GAAP NOI Occupancy GAAP NOI Occupancy

Percentage Percentage Percentage Percentage

Market Change Change Change Change

Atlanta -5.2% -3.3% -7.9% -1.9%

Greenville 93.8% 0.0% 10.9% 0.0%

Kansas City 5.2% 1.3% 5.1% 2.9%

Memphis 0.5% 0.6% 0.7% 0.5%

Nashville -0.3% 0.8% -0.5% -0.1%

Orlando 2.3% 4.8% 1.5% 3.7%

Piedmont Triad -1.8% 0.8% -0.6% 1.7%

Pittsburgh 11.8% 4.2% 18.6% 7.2%

Raleigh 3.2% 2.7% 4.2% 0.6%

Richmond -0.4% -1.0% 0.7% 0.5%

Tampa -17.0% -9.3% -13.4% -7.2%

-0.5% -0.3% -0.1% 0.1%

1/ Excludes straight-line rents and lease termination fees.

2/ Straight-line rent write-offs related to lease terminations are reflected here as a reduction of lease termination fees.

Same Property Performance (dollars and square feet in thousands)

26

2013 TotalsTwelve months ended Three months ended

12/31/13 12/31/13 9/30/13 6/30/13 3/31/13

Square footage 81.3% - 82.7% 67.1% 89.8%

Square footage 3,422,000 - 2,302,000 553,000 567,000

Total cost $548,500 - $316,300 $143,400 $88,800

Green Valley

Market Greensboro

Submarket Green Valley

Property type Office

Date acquired January 9, 2013

Square footage (2 buildings) 195,000

Total cost $32,800 1/

Occupancy 95.5%

Meridian One & Two

Market Tampa

Submarket Westshore


Date acquired February 27, 2013



Occupancy 86.8%

One Alliance Center

Market Atlanta

Submarket Buckhead


Date acquired June 21, 2013

Square footage 553,000


Occupancy 67.1%

Orlando CBD

Market Orlando

Submarket CBD


Date acquired July 23, 2013

Square footage (5 buildings) 1,277,000


Occupancy 82.0%

1/ Purchase cost includes $2.0 million of planned near-term capital improvements.


3/ Purchase cost includes $2.9 million of planned near-term capital improvements and $0.4 million of future tenant improvements

committed under existing leases.

4/ Acquired from 40% owned joint venture. Purchase cost includes $4.2 million of planned near-term capital improvements. 100% value

was $195.9 million.

Acquisition Activity (dollars In thousands)

27

10 Glenlake North & South

Market Atlanta

Submarket Central Perimeter


Date acquired August 19, 2013



Occupancy 82.0%

The Pinnacle at Symphony Place

Market Nashville

Submarket CBD


Date acquired September 5, 2013



Occupancy 84.9%

Lobby of The Pinnacle at Symphony Place

1/ Acquired from 42.9% owned joint venture. Purchase cost includes $0.6 million of planned near-term capital improvements. 100% value

was $80.6 million.


Acquisition Activity (dollars In thousands)

28

2013 TotalsTwelve months ended Three months ended

12/31/13 12/31/13 9/30/13 6/30/13 3/31/13

Occupancy 88.7% 79.8% 92.9% 89.0% 100.0%

Square footage 4,013,000 1,051,000 1,775,000 1,053,000 134,000

Gross sales price $260,835 $94,975 $103,200 $48,060 $14,600

Metrowest/Cambridge

Market Orlando


Date sold January 31, 2013

Occupancy 100.0%


Gross sales price $14,600

I-85 Industrial

Market Atlanta

Property type Industrial

Date sold April 15, 2013

Occupancy 84.3%


Gross sales price $4,518 1/

Gwinnett Distribution Center

Market Atlanta



Occupancy 96.2%



Bluegrass

Market Atlanta



Occupancy 96.7%



Southside Distribution Center

Market Atlanta


Date sold May 22, 2013

Occupancy 65.3%



Anchor Plaza

Market Tampa


Date sold August 13, 2013

Occupancy 56.2%



1/ Bluegrass amount includes $2.5M of development land that was part of the previously reported $43.3M sales price for this multi-location

disposition.

Disposition Activity (dollars in thousands)

29

Tradeport/Newpoint/Chastain

Market Atlanta


Date sold September 23, 2013

Occupancy 95.0%

Square footage (16 buildings) 1,677,000


Highwoods Center II at Tradeport

Market Atlanta


Date sold October 2, 2013

Occupancy 100.0%



Consolidated Center

Market Triad



Occupancy 70.1%



2000 Frontis Plaza Boulevard

Market Triad



Occupancy 87.6%



380 Park Place

Market Tampa


Date sold December 16, 2013

Occupancy 97.9%



Greenville Assets

Market Greenville


Date sold December 19, 2013

Occupancy 77.7%



1/ Includes $0.8M of development land that was part of the previously reported $91.6M sales price.

Disposition Activity (dollars in thousands)

30

Rentable Anticipated Investment Estimated Estimated

In - Process Square Total As Of Pre Completion Stabilization

Properties Market Type Feet Investment 12/31/13 1/ Leased % Date Date

International Paper Memphis O 241,000 56,100$ 16,190$ 100.0% 2Q 15 2Q 15

MetLife I Raleigh O 213,500 53,000 10,611 100.0% 1Q 15 1Q 15

MetLife II 2/ Raleigh O 213,500 57,000 7,053 100.0% 2Q 15 2Q 17

GlenLake V Raleigh O 166,000 35,800 5,710 25.0% 2Q 15 2Q 17

Biologics 3/ Raleigh O 75,000 14,900 717 100.0% 3Q 15 3Q 15

In - Process Total 909,000 216,800$ 40,281$ 86.3%

$ Weighted % 87.6%

Completed Not Stabilized 4/

The Shops at Seven Springs 5/ Nashville O 41,000 10,500$ 7,862$ 79.2% 4Q 13 4Q 14

Completed Not Stabilized Total 41,000 10,500$ 7,862$ 79.2%

Total Pipeline 950,000 227,300 48,143 86.0%

$ Weighted % 87.2%

Placed in Service in 4Q

Rentable Anticipated Investment

Square Total As of Pre

Property Market Type Feet Investment 12/31/13 1/ Leased % Occ %

LifePoint Nashville O 203,000 42,700$ 42,499$ 100.0% 100.0%

Crescent Center Restaurants 5/ Memphis O 18,000 7,900 7,220 100.0% 100.0%

Totals 221,000 50,600$ 49,719$ 100.0% 100.0%

$ Weighted % 100.0%

LifePoint Lobby of LifePoint

1/ Includes deferred lease commissions which are classified as deferred leasing costs on our consolidated balance sheet.

2/ Pre-lease of 100% contains a required take down of one floor in 2Q 17.

3/ Biologics 100% pre-leased build-to-suit development project was signed in January 2014 and is not reclassified as development in process on our

consolidated balance sheet. The $717,000 investment represents existing land and certain costs incurred in 2013 related to this project.

4/ "Completed not stabilized" properties are recorded in the consolidated balance sheet in the land and building accounts, not

development in process.

5/ Office amenity retail space which is recorded in our consolidated balance sheet as development in process.

Development Activity (dollars in thousands)

31

Usable

Market Acres Office IndustrialAtlanta 159 - 1,774,000 Nashville 77 1,605,000 - Raleigh 2/ 61 944,000 - Greensboro 47 240,000 492,000 Tampa 40 1,032,000 - Richmond 3/ 28 379,000 - Orlando 15 640,000 - Memphis 10 145,000 - Kansas City 1 175,000

Total 438 5,160,000 2,266,000

Non-core total 135

Total 573

Cost Basis 2/ 3/ 106,181$

The 573 acres of Development Land has an estimated market value of between $120M to $130M.

1/ This represents approximately $1.1 billion in total development.

2/ Excludes 7 acres with a cost basis of $0.7 million that is classified in the Biologics project on Page 31.

3/ Excludes 13 acres of development land owned by a 50% owned consolidated joint venture with a total cost basis of $3.3 million.

Square Footage Buildout of Core

Development Land 1/

Land Held for Development (dollars in thousands)

sort

32

Venture's Books

Total Total

Joint Venture Type 1/ Own % Assets Debt Liabilities

Highwoods DLF Forum, LLC O 25.0% 100,120$ 71,700$ 75,402$

Plaza Colonnade, LLC O 50.0% 62,960 57,975 59,034

Highwoods DLF 98/29, LLC O 22.8% 57,884 27,650 30,065

Highwoods KC Glenridge Office, LLC O 40.0% 22,195 15,006 16,432

Highwoods DLF 97/26 DLF 99/32, LP O 42.9% 14,098 - 925

Concourse Center Associates, LLC O 50.0% 11,833 8,175 8,261

4600 Madison Associates, LP O 12.5% 11,239 8,926 9,284

Board of Trade Investment Company O 49.0% 7,584 - 17

Kessinger/Hunter, LLC - 26.5% 6,752 - 1,168

Highwoods KC Glenridge Land, LLC O 39.9% 763 - 168

Lofts at Weston, LLC M 50.0% 122 - 14

Total 295,550$ 189,432$ 200,770$

Highwoods' Share of Joint Venture

Total Total

Joint Venture Type 1/ Own % Assets Debt Liabilities

Highwoods DLF Forum, LLC O 25.0% 25,028$ 17,924$ 18,849$

Plaza Colonnade, LLC O 50.0% 31,480 28,988 29,517

Highwoods DLF 98/29, LLC O 22.8% 13,203 6,307 6,858

Highwoods KC Glenridge Office, LLC O 40.0% 8,876 6,001 6,572

Highwoods DLF 97/26 DLF 99/32, LP O 42.9% 6,053 - 397

Concourse Center Associates, LLC O 50.0% 5,917 4,088 4,131

4600 Madison Associates, LP O 12.5% 1,405 1,116 1,161

Board of Trade Investment Company O 49.0% 3,716 - 8

Kessinger/Hunter, LLC - 26.5% 1,789 - 310

Highwoods KC Glenridge Land, LLC O 39.9% 305 - 67

Lofts at Weston, LLC M 50.0% 61 - 7

Total 2/ 97,833$ 64,424$ 67,877$

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

2/ Our share of equity from these tables will not equal investments in unconsolidated affiliates on the Consolidated Balance

Sheets due to various purchase accounting and related adjustments, which are not reflected in the joint ventures' stand-alone

financial statements.

Unconsolidated Joint Ventures Assets, Debt and Liabilities (dollars in thousands)

33

Venture's Books

Joint Venture Own % Revenue

Operating

Expense Interest Depr/ Amort

Gain on

Sale

Net Income/

(Loss)

Highwoods DLF Forum, LLC 25.0% 3,666$ 1,267$ 706$ 1,135$ -$ 558$

Plaza Colonnade, LLC 50.0% 2,947 1,026 859 632 - 430

Highwoods DLF 98/29, LP 22.8% 2,241 1,245 444 626 - (74)

Highwoods KC Glenridge Office, LLC 40.0% 730 417 198 211 - (96)

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 646 214 - 211 - 221

Concourse Center Associates, LLC 50.0% 206 134 62 97 - (87)

4600 Madison Associates, LP 12.5% 1,090 606 156 312 - 16

Board of Trade Investment Company 49.0% 493 265 - 143 - 85

Kessinger/Hunter, LLC 26.5% 5,612 4,340 - 148 - 1,124

Highwoods KC Glenridge Land, LLC 39.9% - 3 - - - (3)

Lofts at Weston, LLC 1/ 50.0% 175 86 - 50 12,178 12,217 -

Total 17,806$ 9,603$ 2,425$ 3,565$ 12,178$ 14,391$



Operating

Expense Interest Depr/ Amort

Gain on

Sale

Net Income/

(Loss)

Highwoods DLF Forum, LLC 25.0% 917$ 317$ 177$ 284$ -$ 139$

Plaza Colonnade, LLC 50.0% 1,474 513 430 316 - 215

Highwoods DLF 98/29, LP 22.8% 511 284 102 143 - (18)

Highwoods KC Glenridge Office, LLC 40.0% 292 167 79 85 - (39)

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 277 92 - 91 - 94

Concourse Center Associates, LLC 50.0% 103 67 31 49 - (44)

4600 Madison Associates, LP 12.5% 136 75 20 39 - 2

Board of Trade Investment Company 49.0% 242 130 - 70 - 42

Kessinger/Hunter, LLC 26.5% 1,487 1,150 - 39 - 298

Highwoods KC Glenridge Land, LLC 39.9% - 1 - - - (1)

Lofts at Weston, LLC 1/ 50.0% 88 43 - 25 3,185 3,205

Total 2/ 3/ 5,527$ 2,839$ 839$ 1,141$ 3,185$ 3,893$

1/ During 4Q 2013, the Lofts at Weston, LLC joint venture sold 215 residential units to an unrelated third party. Our share of the gain was less than

50% due to our partner's preferred return as the developer and is also net of $1.7 million of income taxes, as this joint venture investment was held

by our taxable REIT subsidiary.

2/ Our 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/ Our share of net income/(loss) from these tables will not equal equity in earnings of unconsolidated affiliates on the Consolidated

Statements of Income due to various purchase accounting and related adjustments, which are not reflected in the joint ventures' stand-alone


Unconsolidated Joint Ventures Income Quarter Ended 12/31/13 (dollars in thousands)

34

Venture's Books


Operating

Expense Interest Depr/ Amort Impairment

Gain on

Sale

Net Income/

(Loss)

Highwoods DLF Forum, LLC 25.0% 14,516$ 4,817$ 3,335$ 4,716$ -$ -$ 1,648$

Plaza Colonnade, LLC 50.0% 11,771 4,051 3,447 2,789 - - 1,484

Highwoods DLF 98/29, LLC 22.8% 9,583 4,881 1,761 2,717 20,077 43 (19,810)

Highwoods KC Glenridge Office, LLC 40.0% 2,998 1,635 776 912 - - (325)

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 7,491 3,267 1,122 2,741 - 8,280 8,641

Concourse Center Associates, LLC 50.0% 821 514 248 383 - - (324)

4600 Madison Associates, LP 12.5% 4,209 2,466 639 1,246 - - (142)

Board of Trade Investment Company 49.0% 2,132 1,214 - 572 - - 346

Kessinger/Hunter, LLC 26.5% 13,528 11,474 - 583 - - 1,471

Highwoods KC Glenridge Land, LLC 39.9% - 12 - - - - (12)

Lofts at Weston, LLC 1/ 50.0% 583 355 - 254 - 12,178 12,152

HIW-KC Orlando, LLC 40.0% 14,542 6,598 3,666 4,181 - - 97

Total 82,174$ 41,284$ 14,994$ 21,094$ 20,077$ 20,501$ 5,226$



Operating

Expense Interest Depr/ Amort Impairment

Gain on

Sale

Net Income/

(Loss)

Highwoods DLF Forum, LLC 25.0% 3,629$ 1,204$ 834$ 1,179$ -$ -$ 412$

Plaza Colonnade, LLC 50.0% 5,886 2,026 1,724 1,395 - - 741

Highwoods DLF 98/29, LLC 22.8% 2,186 1,113 402 620 4,507 10 (4,446)

Highwoods KC Glenridge Office, LLC 40.0% 1,199 654 310 365 - - (130)

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 3,216 1,403 482 1,177 - 421 575

Concourse Center Associates, LLC 50.0% 411 257 124 192 - - (162)

4600 Madison Associates, LP 12.5% 526 308 80 156 - - (18)

Board of Trade Investment Company 49.0% 1,045 595 - 280 - - 170

Kessinger/Hunter, LLC 26.5% 3,585 3,041 - 154 - - 390

Highwoods KC Glenridge Land, LLC 39.9% - 5 - - - - (5)

Lofts at Weston, LLC 1/ 50.0% 292 178 - 127 - 3,185 3,172

HIW-KC Orlando, LLC 40.0% 5,817 2,639 1,466 1,672 - - 40

Total 2/ 3/ 27,792$ 13,423$ 5,422$ 7,317$ 4,507$ 3,616$ 739$

1/ During 4Q 2013, the Lofts at Weston, LLC joint venture sold 215 residential units to an unrelated third party. Our share of the gain was less than

50% due to our partner's preferred return as the developer and is also net of $1.7 million of income taxes, as this joint venture investment was held

by our taxable REIT subsidiary.

2/ Our 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/ Our share of net income/(loss) from these tables will not equal equity in earnings of unconsolidated affiliates on the Consolidated

Statements of Income due to various purchase accounting and related adjustments, which are not reflected in the joint ventures' stand-alone


Unconsolidated Joint Ventures Income Year Ended 12/31/13 (dollars in thousands)

35

Loan

Interest Maturity Balance

Joint Venture Own % Lender Rate Date 12/31/13

Plaza Colonnade, LLC 50.0% Met Life 5.72% Jan-17 43,710$

Plaza Colonnade, LLC 50.0% Tax Incremental Financing 5.90% Mar-24 12,345

Plaza Colonnade, LLC 50.0% Tax Incremental Financing 6.00% Mar-16 1,920

5.77% 57,975

Highwoods DLF Forum, LLC 25.0% Fifth Third Bank 2.06% Nov-18 71,700

Highwoods DLF 98/29, LLC 22.8% Goldman Sachs 6.11% Jul-17 27,650

Highwoods KC Glenridge Office, LLC 40.0% Wells Fargo 4.84% May-14 15,006

4600 Madison Associates, LP 12.5% State Farm 6.85% Apr-18 8,476

4600 Madison Associates, LP 12.5% Partner Loan 6.85% Apr-18 450

Concourse Center Associates, LLC 50.0% Wells Fargo 2.67% Jul-14 8,175

3.59% 131,457

4.26% 189,432$

Highwoods' share of the above 64,424$

1/ Excludes loans related to two consolidated joint ventures. This debt represents a loan that is the responsibility of the joint

venture.

Unconsolidated Joint Ventures Mortgage Debt Detail 1/ (dollars in thousands)

36

Summary by Location:

Percentage of

Annualized

Rentable Cash

Market Square Feet Occupancy Revenue 2/ 3/

Kansas City 719,000 82.9% 32.9%

Raleigh 636,000 96.4% 18.6%

Richmond 4/ 411,000 96.3% 17.8%

Orlando 517,000 83.8% 15.0%

Atlanta 335,000 60.9% 7.7%

Tampa 4/ 205,000 91.2% 5.3%

Piedmont Triad 118,000 51.8% 2.7%

Total 4/ 2,941,000 84.7% 100.0%

1/ Highwoods' in-service joint venture portfolio consists of office properties exclusively.

2/ Annualized Cash Revenue is December, 2013 cash rental revenue (base rent plus operating expense pass through revenue

excluding straight-line rental income) multiplied by 12.

3/ Annualized Cash Revenue is based on Highwoods' share only.

4/ Includes 616,000 square feet of properties in Richmond and Tampa owned by joint ventures that are consolidated.

Joint Ventures Portfolio Summary 1/ (dollars in thousands)

sort

37

Percent of



Year Expiring 1/ Square Feet 1/ Revenue 2/ Rate Revenue 2/

Total

2014 453,161 18.2% 9,736$ 21.48$ 17.3%

2015 511,977 20.5% 9,292 18.15 16.5%

2016 174,773 7.0% 3,609 20.65 6.4%

2017 583,770 23.5% 14,286 24.47 25.3%

2018 290,546 11.7% 6,409 22.06 11.4%

2019 152,301 6.1% 2,985 19.60 5.3%

2020 67,443 2.7% 1,493 22.14 2.7%

2021 53,129 2.1% 1,165 21.93 2.1%

2022 12,006 0.5% 387 32.23 0.7%

2023 45,772 1.8% 1,477 32.27 2.6%

2024 and thereafter 146,939 5.9% 5,436 36.99 9.7%

2,491,817 100.0% 56,275$ 22.58$ 100.0%

1/ Includes square feet expiring in properties in joint ventures that are consolidated.



Joint Ventures Lease Expirations (dollars in thousands)

38

Acquisitions

Date Square Total

Name Own % Market Type Acquired Footage Occupancy Cost

First quarter 2013:

None

Second quarter 2013:

None

Third quarter 2013:

None

Fourth quarter 2013:

None

Dispositions

Date Square Gross Sales

Name Own % Market Type Sold Footage Occupancy Price 1/

First quarter 2012:

190 Oak Plaza 42.9% Winston-Salem O 03/20/13 90,000 100.0% 4,330$

Second quarter 2013:

University Research

Center 22.8% Charlotte O 04/17/13 148,000 100.0% 1,380

Third quarter 2013: 2/

Fourth quarter 2013:

Weston Lofts 50.0% Raleigh M 11/19/13 215 units N/A 19,150$

2013 Totals 238,000 100.0% 24,860$

1/ Gross sale price only includes our pro rata share.

2/ 1.8 million square feet of Joint Venture assets in Orlando and Atlanta were acquired by Highwoods. See Pages 27 - 28.

Joint Venture Acquisition and Disposition Activity (dollars in thousands)

190 Oak Plaza University Research Center Weston Lofts

39

Documents

SUPPLEMENTAL INFORMATION€¦ · Highwoods assumes no obligation to update or supplement forward-looking statements that become untrue of subsequent events. ... Losses on debt extinguishment