Highwoods Properties, Inc. Q2 2010 Earnings Call Transcript
Turning to our results, leasing volumes were solid and better than a year ago. Office leasing in the first half of 2010 totaled 1.8 million square feet, compared to 1.3 million square feet lease in the first half of 2009. Some of the larger deals we achieved over the past six months have come with higher leasing CapEx, but these transactions were carefully vetted and stand nicely on their own merits. They are long-term, long non-credit and strong wins for Highwoods.
OpEx and G&A are lower as we continued to be successful on our ongoing efforts to reduce expenses and improve efficiencies throughout our company. This has resulted in better same store NOI and G&A forecast in our updated FFO guidance.
Our office occupancy remains significantly better than the market as a whole as we continue to differentiate our sales from our competitors to our healthy balance sheet. This strategy has proven to be effective as exhibited by recent wins of the larger deals in the number of our markets.
Turning to investment activity, we're extremely pleased to have deployed $52.6 million to acquire Crescent Center. This purchase is a bulls eye on our acquisition scorecard. It improves the overall quality of our portfolio. It is a terrific asset in the core infield submarket. It strengthens our dominance in Memphis's best submarket. It has a stable diversified customer-based with no material near-term roles. We acquired a 30% plus below replacement cost and it is immediately accretive to FFO.While the breadth of our current acquisition opportunities remains narrow and well below historic norms, we are seeing the cadence of offering memorandums increase while they are not all higher quality assets, the few that are seeing to be garnering a "Scarcity" premium. Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV