HIGHWOODS PROPERTIES, INC. - FORM 8-K - EX-99.2 - SUPPLEMENTAL INFORMATION

Attached files

file	filename
8-K - FORM 8-K - HIGHWOODS PROPERTIES, INC.	d8k.htm
EX-99.1 - PRESS RELEASE - HIGHWOODS PROPERTIES, INC.	dex991.htm

Exhibit 99.2

LOGO

Supplemental Information

December 31, 2009

Supplemental Information

Table of Contents

December 31, 2009


Schedule		Page


Summary and Corporate Information		i, ii and iii

Consolidated Statements of Income/(Loss)		1
Funds from Operations and Additional Information		2
Consolidated Balance Sheets		3
Components of 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
Disposition Activity		26
Development Activity		27
Development Land		28
Acquisition Activity		29
Unconsolidated Joint Ventures Assets, Debt and Liabilities		30
Unconsolidated Joint Ventures Income (Three Months)		31
Unconsolidated Joint Ventures Income (Twelve Months)		32
Unconsolidated Joint Ventures Long-Term Debt Detail		33
Joint Ventures Portfolio Summary		34
Joint Ventures Lease Expirations		35
Joint Venture Acquisition and Disposition Activity		36
Joint Venture Development Activity		37

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

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

Summary

Amounts in thousands, except per share amounts


	*Three Months Ended*
	12/31/09			09/30/09			06/30/09			03/31/09			12/31/08

Shares and units:

Common shares outstanding at end of period		71,285			71,071			70,848			63,763			63,572
Common units outstanding at end of period		3,891			3,965			4,059			4,067			4,067
Weighted average common shares outstanding - basic		71,115			70,902			66,122			63,631			63,563
Weighted average common shares outstanding - diluted		75,263			75,072			70,234			67,705			67,568

Share price:

At end of period	$	33.35		$	31.45		$	22.37		$	21.42		$	27.36
High close during period		34.84			32.84			26.13			26.17			34.29
Low close during period		27.23			20.12			20.34			16.57			15.59

Financial information:

Land sale gains, net of (impairments)	$	—		$	15		$	124		$	—		$	(1,565	)
Gains on for sale residential condominiums, net of partner’s interest		393			160			295			550			4,301
Lease termination income		380			124			171			1,138			216
Straight line rental income		1,250			535			718			1,534			701
Capitalized interest		580			1,154			1,317			1,504			1,399
Impairments on depreciable properties 1/		13,518			(576	)		—			—			(32,442	)
Gains on debt extinguishment		—			657			630			—			—
Gains on disposition of depreciable properties 2/		846			19			21,794			92			6,685
Gain on settlement of legal claim		—			1,050			—			—			—

Funds from operations per share - diluted	$	0.42		$	0.62		$	0.70		$	0.70		$	0.20

Funds from operations per share - diluted, excluding certain items 3/	$	0.60		$	0.62		$	0.69		$	0.70		$	0.67

Wholly - owned property information:

In-Service rentable square feet:
Office		20,445			20,319			19,988			19,594			19,556
Industrial		6,463			6,463			6,463			6,463			6,467
Retail		869			909			909			1,337			1,350

Total		27,777			27,691			27,360			27,394			27,373

In-Service occupancy:
Office		88.8	%		88.6	%		89.0	%		89.1	%		90.2	%
Industrial		87.4	%		84.6	%		84.5	%		87.9	%		92.6	%
Retail		98.0	%		92.9	%		90.7	%		93.2	%		94.6	%

Total		88.8	%		87.8	%		88.0	%		89.0	%		91.0	%

1/	September 30, 2009 amount includes $199 representing the Company’s share of an impairment recorded by an unconsolidated joint venture.

2/	June 30, 2009 amount includes $781 representing the Company’s share of a gain recorded by an unconsolidated joint venture.

3/	Excludes impairments on depreciable assets, gains on debt extinguishments, and preferred stock redemption/repurchase charges.

Corporate Information


Board of Directors		Research Coverage

O. Temple Sloan Jr., Chairman		Bank of America/Merrill Lynch
Thomas W. Adler		Jamie Feldman - 212-449-6339
Gene H. Anderson
Edward J. Fritsch		Citigroup Global Markets
David J. Hartzell, Ph.D.		Michael Bilerman - 212-816-1383
Lawrence S. Kaplan
Sherry A. Kellett		Credit Suisse - North America
L. Glenn Orr Jr.		Steve Benyik - 212-538-0239

Corporate Officers		Deutsche Bank
		John Perry - 212-250-4912
Edward J. Fritsch
President, Chief Executive Officer and Director		Green Street Advisors
		John Stewart - 949-640-8780
Michael E. Harris
Executive Vice President and Chief Operating Officer		Macquarie Research
		Robert Stevenson - 212-231-8068
Terry L. Stevens
Senior Vice President, Chief Financial Officer		RBC Capital Markets
		Dave Rodgers - 440-715-2647
Daniel L. Clemmens
Vice President, Chief Accounting Officer		RW Baird
		Chris Lucas - 703-821-5780
S. Hugh Esleeck
Treasurer		Stifel Nicolaus
		John Guinee - 443-224-1307
Peter T. Jardine		Erin Aslakson - 443-224-1350
Vice President, Corporate Marketing
		Wells Fargo Securities, LLC
Carman J. Liuzzo		Brendan Maiorana - 443-263-6516
Vice President, Investments

Art H. McCann
Chief Information Officer

Jeffrey D. Miller
Vice President, General Counsel and Secretary

Kevin E. Penn
Vice President, Strategy

Michael D. Starchville
Vice President, Asset Management

Tabitha N. Zane
Vice President, Investor Relations and Corporate Communications

Corporate Information


Divisional Officers	Corporate Headquarters
	Highwoods Properties, Inc.
Atlanta, GA	3100 Smoketree Court, Suite 600
James V. Bacchetta, Vice President	Raleigh, NC 27604
	919-872-4924
Kansas City, MO
Glenn E. Stephenson, Vice President	Stock Exchange
	NYSE Trading Symbol: HIW
Memphis, TN
Steven L. Guinn, Vice President	Investor Relations Contact
	Tabitha Zane
Nashville, TN; Memphis,TN; Greenville, SC	Vice President, Investor Relations and Corporate Communications
W. Brian Reames - Senior Vice President	Phone:	919-431-1529
	Fax:	919-431-1439
Orlando, FL	E-mail:	tabitha.zane@highwoods.com
Steven J. Garrity, Vice President
	Information Request
Piedmont Triad, NC E. F. “Rick” Dehnert, Vice President	To request a Supplemental Package or Annual Report or to be added to our e-mail distribution list, please contact Tabitha Zane at the contact information listed above.
Raleigh, NC
Thomas “Skip” Hill, Vice President
	The Company
Richmond, VA Paul W. Kreckman, Vice President Tampa, FL Daniel E. Woodward, Vice President	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 December 31, 2009, the Company owned or had an interest in 377 in-service office, industrial and retail properties encompassing approximately 35.5 million square feet. Highwoods also wholly-owned 581 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Maryland, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, and Virginia. For more information about Highwoods Properties, please visit our website at www.highwoods.com.

iii

Consolidated Statements of Income/(Loss)

Amounts in thousands, except per share amounts


	*Year Ended*						*Three Months Ended*
	12/31/09			12/31/08			12/31/09			09/30/09			06/30/09			03/31/09			12/31/08

Rental and other revenues	$	454,026		$	450,291		$	113,669		$	114,144		$	112,854		$	113,359		$	114,379

Operating expenses:
Rental property and other expenses		164,255			161,852			41,319			42,886			39,322			40,728			43,085
Depreciation and amortization		131,048			124,673			32,686			32,612			32,825			32,925			32,351
Impairment of assets held for use		13,518			32,846			13,518			—			—			—			32,846
General and administrative		36,682			38,043			9,396			9,485			9,486			8,315			8,681

Total operating expenses		345,503			357,414			96,919			84,983			81,633			81,968			116,963

Interest expense:
Contractual		81,982			92,858			21,457			20,001			19,945			20,579			23,055
Amortization of deferred financing costs		2,760			2,716			782			627			689			662			678
Financing obligations		2,130			2,918			(21	)		706			710			735			631

		86,872			98,492			22,218			21,334			21,344			21,976			24,364

Other income:
Interest and other income		8,263			3,825			1,648			3,324			2,284			1,007			419
Gains on debt extinguishment		1,287			—			—			657			630			—			—

		9,550			3,825			1,648			3,981			2,914			1,007			419

Income/(loss) from continuing operations before disposition of property and condominiums and equity in earnings of unconsolidated affiliates		31,201			(1,790	)		(3,820	)		11,808			12,791			10,422			(26,529	)

Gains/(losses) on disposition of property		266			781			19			34			194			19			(1,071	)
Gains on for sale residential condominiums 1/		922			5,617			99			187			289			347			5,617
Equity in earnings of unconsolidated affiliates		5,421			5,878			1,577			682			1,862			1,300			1,155

Income/(loss) from continuing operations		37,810			10,486			(2,125	)		12,711			15,136			12,088			(20,828	)
Discontinued operations:
Income from discontinued operations		2,418			6,639			145			239			995			1,039			1,372
Net gains/(losses) on disposition of discontinued operations		21,466			18,485			827			(377	)		20,943			73			6,595

		23,884			25,124			972			(138	)		21,938			1,112			7,967


Net income/(loss)		61,694			35,610			(1,153	)		12,573			37,074			13,200			(12,861	)
Net (income)/loss attributable to noncontrolling interests in the Operating Partnership		(3,197	)		(1,577	)		142			(591	)		(2,054	)		(694	)		967
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates		(11	)		(2,041	)		147			(24	)		(116	)		(18	)		(1,451	)
Dividends on preferred stock		(6,708	)		(9,804	)		(1,677	)		(1,677	)		(1,677	)		(1,677	)		(1,677	)
Excess of preferred stock redemption cost over carrying value		—			(108	)		—			—			—			—			—

Net income/(loss) available for common stockholders	$	51,778		$	22,080		$	(2,541	)	$	10,281		$	33,227		$	10,811		$	(15,022	)


Earnings per common share - diluted:
Income/(loss) from continuing operations available for common stockholders	$	0.43		$	(0.03	)	$	(0.05	)	$	0.14		$	0.19		$	0.15		$	(0.36	)
Income from discontinued operations available for common stockholders		0.33			0.40			0.01			—			0.31			0.02			0.12

Net income/(loss) available for common stockholders	$	0.76		$	0.37		$	(0.04	)	$	0.14		$	0.50		$	0.17		$	(0.24	)

Weighted average common shares outstanding - diluted		72,079			59,320			71,115			75,072			70,234			67,705			63,563


Dividends declared and paid per common share	$	1.700		$	1.700		$	0.425		$	0.425		$	0.425		$	0.425		$	0.425


Net income/(loss) available for common stockholders:
Income/(loss) from continuing operations available for common stockholders	$	29,282		$	(1,459	)	$	(3,462	)	$	10,412		$	12,566		$	9,766		$	(22,509	)
Income/(loss) from discontinued operations available for common stockholders		22,496			23,539			921			(131	)		20,661			1,045			7,487

Net income/(loss) available for common stockholders	$	51,778		$	22,080		$	(2,541	)	$	10,281		$	33,227		$	10,811		$	(15,022	)

1/	After adjusting for our partner’s share, which is reflected in “Net income attributable to noncontrolling interest in consolidated affiliates”, net gains to the Company were $393 and $1,398 for the three months and year ended December 31, 2009, respectively.

Funds from Operations

and Additional Information

Amounts in thousands, except per share amounts


	*Year Ended*						*Three Months Ended*
	12/31/09			12/31/08			12/31/09			09/30/09			06/30/09			03/31/09			12/31/08
Funds from operations:
Net income/(loss)	$	61,694		$	35,610		$	(1,153	)	$	12,573		$	37,074		$	13,200		$	(12,861	)
Net (income)/loss attributable to noncontrolling interests in the Operating Partnership		(3,197	)		(1,577	)		142			(591	)		(2,054	)		(694	)		967
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates		(11	)		(2,041	)		147			(24	)		(116	)		(18	)		(1,451	)
Dividends on preferred stock		(6,708	)		(9,804	)		(1,677	)		(1,677	)		(1,677	)		(1,677	)		(1,677	)
Excess of preferred stock redemption cost over carrying value		—			(108	)		—			—			—			—			—

Net income/(loss) available for common stockholders		51,778			22,080			(2,541	)		10,281			33,227			10,811			(15,022	)
Add/(deduct):
Depreciation and amortization of real estate assets		129,150			122,728			32,228			32,106			32,334			32,482			31,878
(Gains) on disposition of depreciable properties		(127	)		(126	)		(19	)		(19	)		(70	)		(19	)		(90	)
Net (income)/loss attributable to noncontrolling interests from the Operating Partnership		3,197			1,577			(142	)		591			2,054			694			(967	)
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		12,839			12,751			3,014			3,352			3,223			3,250			3,285
(Gains) on disposition of depreciable properties		(781	)		—			—			—			(781	)		—			—
Discontinued operations:
Depreciation and amortization of real estate assets		835			2,947			(2	)		77			261			499			677
(Gains) on disposition of depreciable properties		(21,843	)		(18,485	)		(827	)		—			(20,943	)		(73	)		(6,595	)

Funds from operations	$	175,048		$	143,472		$	31,711		$	46,388		$	49,305		$	47,644		$	13,166


Funds from operations per share - diluted
Net income/(loss) available for common stockholders	$	0.76		$	0.37		$	(0.04	)	$	0.14		$	0.50		$	0.17		$	(0.24	)
Add/(deduct):
Depreciation and amortization of real estate assets		1.79			1.93			0.43			0.43			0.46			0.47			0.47
(Gains) on disposition of depreciable properties		—			—			—			—			—			—			—
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		0.18			0.20			0.04			0.05			0.05			0.05			0.05
(Gains) on disposition of depreciable properties		(0.01	)		—			—			—			(0.01	)		—			—
Discontinued operations:
Depreciation and amortization of real estate assets		0.01			0.05			—			—			—			0.01			0.01
(Gains) on disposition of depreciable properties		(0.30	)		(0.29	)		(0.01	)		—			(0.30	)		—			(0.10	)

Funds from operations per share - diluted	$	2.43		$	2.26		$	0.42		$	0.62		$	0.70		$	0.70		$	0.19


Weighted average shares outstanding - diluted		72,079			63,492			75,263			75,072			70,234			67,705			67,568


Additional information: 1/

Funds from operations, excluding certain items 2/	$	187,855		$	176,022		$	45,229		$	46,307		$	48,675		$	47,644		$	45,608


Funds from operations per share, excluding certain items 2/	$	2.61		$	2.77		$	0.60		$	0.62		$	0.69		$	0.70		$	0.67


Straight line rental income	$	(4,037	)	$	(5,964	)	$	(1,250	)	$	(535	)	$	(718	)	$	(1,534	)	$	(701	)
Amortization of lease incentives		1,110			1,041			244			318			250			298			258
Depreciation of non-real estate assets		1,217			1,312			291			318			327			281			308
Ground lease straight line rent expense		291			165			52			66			48			125			38
Stock-based compensation expense		6,567			6,717			1,363			1,631			1,731			1,842			1,432
Amortization of deferred financing costs		2,760			2,717			782			627			689			662			679
Amortization of accumulated other comprehensive loss		(249	)		181			(20	)		(88	)		(71	)		(70	)		7
Amortization of Harborview FMV		(965	)		(140	)		(824	)		(47	)		(47	)		(47	)		(35	)

Non-incremental revenue generating capital expenditures paid: 3/
Building improvements		(16,546	)		(22,202	)		(8,028	)		(5,072	)		(2,524	)		(922	)		(12,502	)
2nd generation tenant improvements		(22,633	)		(27,076	)		(8,083	)		(4,452	)		(4,716	)		(5,382	)		(6,744	)
2nd generation lease commissions		(8,854	)		(12,177	)		(3,705	)		(1,123	)		(1,746	)		(2,280	)		(3,295	)

Common dividends and unit distributions paid		(121,261	)		(106,957	)		(31,872	)		(31,863	)		(28,844	)		(28,682	)		(28,667	)

1/	Increase or (decrease) to cash flows.

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

3/	Excludes capital expenditures paid for buildings sold prior to December 31, 2009.

Consolidated Balance Sheets

Dollars in thousands


	12/31/09			12/31/08
Assets:
Real estate assets, at cost:
Land	$	350,537		$	352,005
Buildings and tenant improvements		2,880,632			2,815,967
Development in process		—			61,938
Land held for development		104,148			98,946

		3,335,317			3,328,856
Less-accumulated depreciation		(781,073	)		(712,837	)

Net real estate assets		2,554,244			2,616,019
For sale residential condominiums		12,933			24,284
Real estate and other assets, net, held for sale		5,031			5,096
Cash and cash equivalents		23,699			13,757
Restricted cash		6,841			2,258
Accounts receivable, net of allowance of $2,810 and $1,281, respectively		21,069			23,687
Notes receivable, net of allowance of $698 and $459, respectively		3,143			3,602
Accrued straight-line rents receivable, net of allowance of $2,443 and $2,082, respectively		82,600			79,706
Investment in unconsolidated affiliates		66,077			67,723
Deferred financing and leasing costs, net of accumulated amortization of $52,129 and $52,494, respectively		73,517			72,992
Prepaid expenses and other assets		37,947			37,046

Total Assets	$	2,887,101		$	2,946,170


Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:
Mortgages and notes payable	$	1,469,155		$	1,604,685
Accounts payable, accrued expenses and other liabilities		117,328			135,609
Financing obligations		37,706			34,174

Total Liabilities		1,624,189			1,774,468
Noncontrolling interests in the Operating Partnership		129,769			111,278
Equity:
Preferred stock		81,592			81,592
Common stock		713			636
Additional paid-in capital		1,751,398			1,616,093
Distributions in excess of net earnings		(701,932	)		(639,281	)
Accumulated other comprehensive loss		(3,811	)		(4,792	)

Total Stockholders’ Equity		1,127,960			1,054,248
Noncontrolling interests in consolidated affiliates		5,183			6,176

Total Equity		1,133,143			1,060,424

Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity	$	2,887,101		$	2,946,170

Components of Net Asset Value

Dollars in thousands

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 as of the date of initial publication and 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	$	237,230
Retail		19,209
Industrial/Other		19,047
Deduct partner’s share of consolidated JV’s (Office)		(5,040	)

Total Net Operating Income	$	270,446


Highwoods’ share of unconsolidated joint ventures projected NOI
Office	$	29,103


Other income
Development, leasing and management fees	$	5,053


Add other assets:
Development investment at cost	$	77,090
Assets not fairly valued by capitalized NOI valuation method 2/		139,862
Land held for development at market value		145,985
Cash and cash equivalents		23,699
Restricted cash		6,841
Accounts receivable, net		21,069
Notes receivable and prepaid expenses		41,090
Highwoods share of unconsolidated JV’s other assets		21,108
Deduct partner’s share of consolidated JV’s other assets		(2,903	)

Other assets total	$	473,841


Deductions:
Total liabilities	$	117,328
Mortgages and notes payable		1,469,155
Deduct partner’s share of Consolidated JV’s liabilities and mortgages		(36,792	)
Market value of debt adjustment 3/		(28,720	)
Preferred stock, at liquidation value		81,592
Highwoods’ share of unconsolidated joint ventures liabilities		251,817
Deduct market value of debt adjustment for JV debt		(4,247	)

	$	1,850,133


Estimated diluted common shares and common units for 2010 (000’s)		75,600

1/	Projected 2009 NOI excludes straight line income, lease termination fee income, NOI related to completed not stabilized developments, and NOI related to assets undervalued by capitalized NOI method.

2/	Consolidated Properties projected 2009 NOI is adjusted to eliminate the net NOI for properties for which a NOI capitalization approach is not appropriate. For these assets, an alternative methodology has been applied.

3/	In accordance with prior practice, we included an adjustment to mark our debt and bonds to estimated fair value as of December 31, 2009.

Components of Discontinued Operations

Dollars in thousands


	*For the Year Ended*				*Three Months Ended*
	12/31/09		12/31/08		12/31/09			09/30/09			06/30/09		03/31/09		12/31/08
Rental and other revenues	$	5,284	$	15,572	$	359		$	481		$	1,839	$	2,605	$	3,394

Operating expenses:
Rental property and other expenses		2,031		6,017		216			164			584		1,067		1,354
Depreciation and amortization		835		2,947		(2	)		78			260		499		677

Total operating expenses		2,866		8,964		214			242			844		1,566		2,031

Other income		—		31		—			—			—		—		9

Income before gains/(losses) from discontinued operations		2,418		6,639		145			239			995		1,039		1,372
Net gains/(losses) on disposition of discontinued operations		21,466		18,485		827			(377	)		20,943		73		6,595

Net income/(loss) from discontinued operations	$	23,884	$	25,124	$	972		$	(138	)	$	21,938	$	1,112	$	7,967

Capitalization

Dollars, shares, and units in thousands


	12/31/09		9/30/09		6/30/09		3/31/09		12/31/08

Long-Term Debt (see pages 7 & 8):	$	1,469,155	$	1,472,585	$	1,428,650	$	1,619,276	$	1,604,685


Financing Obligations:	$	37,706	$	35,043	$	34,758	$	34,509	$	34,174


Preferred Stock (at liquidation value):
Series A 8 5/8% Cumulative Redeemable	$	29,092	$	29,092	$	29,092	$	29,092	$	29,092
Series B 8% Cumulative Redeemable		52,500		52,500		52,500		52,500		52,500


Total preferred stock	$	81,592	$	81,592	$	81,592	$	81,592	$	81,592


Common Shares and Units Outstanding:
Common stock outstanding		71,285		71,071		70,848		63,763		63,572
Noncontrolling interest partnership units		3,891		3,965		4,059		4,067		4,067


Total common shares and units outstanding		75,176		75,036		74,907		67,830		67,639

Stock price at period end	$	33.35	$	31.45	$	22.37	$	21.42	$	27.36

Market value of common equity	$	2,507,120	$	2,359,882	$	1,675,670	$	1,452,919	$	1,850,603


Total market capitalization with debt and obligations	$	4,095,573	$	3,949,102	$	3,220,670	$	3,188,296	$	3,571,054

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

Long-Term Debt Summary

Dollars in thousands


	12/31/09				9/30/09				6/30/09			3/31/09			12/31/08

Balances Outstanding:

Secured:
Conventional fixed rate 1/	$	678,986			$	681,666			$	523,560		$	631,207		$	634,317
Variable rate debt		41,741				42,521				43,733			34,540			20,869

Secured total		720,727				724,187				567,293			665,747			655,186

Unsecured:
Fixed rate bonds and notes		590,928				590,898				595,857			599,029			648,999
Bank term loans		157,500				157,500				157,500			157,500			137,500
Credit facility		—				—				108,000			197,000			163,000

Unsecured total		748,428				748,398				861,357			953,529			949,499

Total	$	1,469,155			$	1,472,585			$	1,428,650		$	1,619,276		$	1,604,685


End of Period Weighted Average Interest Rates:

Secured:
Conventional fixed rate		6.52	%			6.52	%			6.37	%		6.61	%		6.61	%
Variable rate debt		1.09	%			1.10	%			1.20	%		1.41	%		1.73	%

Secured total		6.21	%			6.20	%			5.97	%		6.34	%		6.45	%

Unsecured:
Fixed rate bonds		6.41	%			6.41	%			6.40	%		6.40	%		6.53	%
Bank term loans		1.66	%			2.73	%			2.75	%		2.83	%		2.66	%
Credit facility		3.14	%	2/		1.05	%	2/		1.11	%		1.34	%		2.39	%

Unsecured total		5.41	%			5.63	%			5.07	%		4.77	%		5.26	%

Weighted Average		5.80	%			5.91	%			5.43	%		5.41	%		5.75	%

Maturity Schedule:


	*Future Maturities of Debt*							Average Interest Rate
Year	Secured Debt 3/			Unsecured Debt		Total Debt 3/		Average Interest Rate
2010	$	41,741	4/	$	—	$	41,741	1.09	%
2011		—			137,500		137,500	1.33	%
2012		215,879			20,000		235,879	6.68	%
2013		257,559			—		257,559	5.90	%
2014		35,819			—		35,819	5.79	%
2015		—			—		—	—
2016		169,729			—		169,729	7.09	%
2017		—			390,928		390,928	5.85	%
2018		—			200,000		200,000	7.50	%
2019		—			—		—	—

Total maturities	$	720,727		$	748,428	$	1,469,155	5.80	%

Weighted average maturity = 4.9 years

1/	Includes a $21.9 million loan related to a consolidated 20% owned joint venture (Harborview) and $35.8 million in loans at December 31, 2009 related to a consolidated 50% joint venture (Markel).

2/	No balances were outstanding at period end.

3/	All periods exclude annual principal amortization.

4/	Maturity date does not reflect two one-year extension options.

Long-Term Debt Detail

Dollars in thousands

Secured Loans


Lender	Rate		Maturity Date	Loan Balance 12/31/09		Undepreciated Book Value of Assets Secured
Northwestern Mutual	7.05	%	Jan-12	$	188,088	$	301,825
Northwestern Mutual	6.03	%	Mar-13		130,740		183,343
Massachusetts Mutual Life Ins. Co. 1/	5.68	%	Dec-13		115,959		213,370
New York Life Insurance Company	6.88	%	Jan-16		114,610		222,842
Western-Southern Life Assurance Company	7.50	%	Aug-16		47,108		71,824
PNC/Regions/Union Bank of California/U.S. Bank 2/ /3	1.09	%	Dec-10		41,741		54,470
Metropolitan Life Ins. Co. 4/	6.06	%	Oct-12		21,929		39,108
Principal Life Insurance Company 5/	5.79	%	Jan-14		10,980		14,430
Principal Life Insurance Company 5/	5.79	%	Jan-14		10,980		18,781
Massachusetts Mutual Life Ins. Co. 1/	6.48	%	Dec-13		10,329
Principal Life Insurance Company 5/	5.74	%	Jan-14		8,656		14,320
State Farm Life Insurance	7.65	%	Feb-16		8,010		16,890
Lutheran Brotherhood	6.80	%	Apr-12		5,862		8,045
Principal Life Insurance Company 5/	5.89	%	Jan-14		5,202		7,514
American United Life	9.00	%	Jun-13		533		3,355

	6.21	%			720,727	$	1,170,117

Unsecured Bonds
Bonds	5.85	%	Mar-17		390,928
Bonds	7.50	%	Apr-18		200,000

	6.41	%			590,928

Unsecured Loans
Credit facility 2/	3.14	%	Feb-13		—
Bank term loan 2/	1.33	%	Feb-11		137,500
Bank term loan 2/	3.90	%	Mar-12		20,000

	1.66	%			157,500

Total Debt	5.80	%		$	1,469,155

Revolving Credit Facility


Name of Lender	Total Commitment		Amount Outstanding 12/31/09		Unfunded Commitment at 12/31/09
Bank of America, N.A.	$	55,000	$	—	$	55,000
Wells Fargo Bank, N.A.		55,000		—		55,000
Branch Banking and Trust Co.		45,000		—		45,000
PNC Bank, N.A.		45,000		—		45,000
US Bank		32,500		—		32,500
Regions Bank		27,500		—		27,500
Capital One		25,000		—		25,000
Comerica Bank		25,000		—		25,000
Morgan Stanley		25,000		—		25,000
RBC Bank		25,000		—		25,000
Union Bank of California, N.A.		25,000		—		25,000
First Tennessee Bank		15,000		—		15,000

	$	400,000	$	—	$	400,000

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

2/	Floating rate loans based on one month libor.

3/	Maturity date does not reflect two one-year extension options.

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

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

Portfolio Summary - Wholly-Owned Properties Only 1/

(Rentable Square Feet)


	12/31/09		9/30/09		6/30/09		3/31/09		12/31/08
Office Industrial & Retail
In-Service:
Office	20,445,000		20,319,000		19,988,000		19,594,000		19,556,000
Industrial	6,463,000		6,463,000		6,463,000		6,463,000		6,467,000
Retail 2/	869,000		909,000		909,000		1,337,000		1,350,000

Total 3/	27,777,000		27,691,000		27,360,000		27,394,000		27,373,000

Development Completed - Not Stabilized:
Office	301,000		153,000		373,000		665,000		665,000
Industrial	200,000		200,000		200,000		200,000		—
Retail	—		—		—		—		—

Total	501,000		353,000		573,000		865,000		665,000

Development - In Process:
Office	—		148,000		258,000		358,000		358,000
Industrial	—		—		—		—		200,000
Retail	—		—		—		—		—

Total	—		148,000		258,000		358,000		558,000

Total:
Office	20,746,000		20,620,000		20,619,000		20,617,000		20,579,000
Industrial	6,663,000		6,663,000		6,663,000		6,663,000		6,667,000
Retail 2/	869,000		909,000		909,000		1,337,000		1,350,000

Total 3/	28,278,000		28,192,000		28,191,000		28,617,000		28,596,000

Same Property
Office	18,701,000		18,701,000		18,701,000		18,701,000		18,701,000
Industrial	5,782,000		5,782,000		5,782,000		5,782,000		5,782,000
Retail	869,000		869,000		869,000		869,000		869,000

Total	25,352,000		25,352,000		25,352,000		25,352,000		25,352,000






Percent Leased/Pre-Leased:
In-Service:
Office	88.8	%	88.6	%	89.0	%	89.1	%	90.2	%
Industrial	87.4	%	84.6	%	84.5	%	87.9	%	92.6	%
Retail	98.0	%	92.9	%	90.7	%	93.2	%	94.6	%

Total	88.8	%	87.8	%	88.0	%	89.0	%	91.0	%

Development Completed - Not Stabilized:
Office	46.0	%	67.0	%	41.6	%	64.2	%	64.2	%
Industrial	50.0	%	50.0	%	50.0	%	50.0	%	—
Retail	—		—		—		—		—

Total	47.6	%	57.4	%	44.6	%	60.9	%	64.2	%

Development - In Process:
Office	—		17.0	%	52.4	%	65.7	%	65.7	%
Industrial	—		—		—		—		50.0	%
Retail	—		—		—		—		—

Total	—		17.0	%	52.4	%	65.7	%	60.1	%

Same Property
Office	88.7	%	88.6	%	88.8	%	89.2	%	90.3	%
Industrial	86.0	%	84.8	%	84.7	%	87.2	%	93.0	%
Retail	98.0	%	92.5	%	90.3	%	93.2	%	96.7	%

Total	88.4	%	87.9	%	87.9	%	88.9	%	91.1	%

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 205,000 square feet of basement space in the Country Club Plaza.

3/	Excludes minor “for rent” apartment building.

Portfolio Summary

(Continued)

As of December 31, 2009

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


					Percentage of Annualized Cash Revenue 2/
Market	Rentable Square Feet		Occupancy		Office		Industrial		Retail		Total
Raleigh 3/	4,194,000		83.8	%	15.9	%	—		—		15.9	%
Tampa	2,878,000		90.9	%	15.3	%	—		—		15.3	%
Atlanta	5,653,000		90.4	%	11.2	%	3.9	%	—		15.1	%
Nashville	2,938,000		95.1	%	13.1	%	—		—		13.1	%
Kansas City	1,508,000	4/	92.9	%	3.4	%	—		6.8	%	10.2	%
Piedmont Triad 5/	5,482,000		82.2	%	6.0	%	2.9	%	—		8.9	%
Richmond	2,229,000		93.2	%	8.9	%	—		—		8.9	%
Memphis	1,582,000		91.5	%	7.0	%	—		—		7.0	%
Greenville	897,000		88.5	%	3.3	%	—		—		3.3	%
Orlando	416,000		94.4	%	2.3	%	—		—		2.3	%

Total	27,777,000		88.8	%	86.4	%	6.8	%	6.8	%	100.0	%

Summary by Location, Including Joint Venture Properties:


					Percentage of Annualized Cash Revenue 2/ 6/
Market	Rentable Square Feet		Occupancy		Office		Industrial		Retail		Multi-Family		Total
Raleigh	5,008,000		85.1	%	14.9	%	—		—		—		14.9	%
Atlanta	6,488,000		88.2	%	10.9	%	3.5	%	—		—		14.4	%
Tampa	3,083,000		91.1	%	13.8	%	—		—		—		13.8	%
Nashville	2,938,000		95.1	%	11.6	%	—		—		—		11.6	%
Kansas City	2,227,000	4/	89.4	%	4.2	%	—		6.0	%	—		10.2	%
Richmond	2,642,000		94.3	%	8.4	%	—		—		—		8.4	%
Piedmont Triad	5,740,000		81.2	%	5.6	%	2.6	%	—		—		8.2	%
Memphis	1,582,000		91.5	%	6.2	%	—		—		—		6.2	%
Orlando	2,269,000		88.6	%	5.3	%	—		—		—		5.3	%
Des Moines	2,506,000		87.3	%	3.0	%	0.5	%	0.1	%	0.4	%	4.0	%
Greenville	897,000		88.5	%	2.9	%	—		—		—		2.9	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%

Total	35,528,000		88.1	%	86.9	%	6.6	%	6.1	%	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 December, 2009 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 205,000 square feet of basement space in the Country Club Plaza.

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

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

Portfolio Summary - Wholly-Owned Properties Only

(Continued)

As of December 31, 2009


	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	4,194,000	83.8	%	18.5	%	—	—		—
Tampa	2,878,000	90.9	%	17.6	%	—	—		—
Nashville	2,938,000	95.1	%	15.2	%	—	—		—
Atlanta	2,571,000	89.8	%	12.9	%	3,082,000	90.9	%	57.2	%
Richmond	2,229,000	93.2	%	10.3	%	—	—		—
Memphis	1,582,000	91.5	%	8.1	%	—	—		—
Piedmont Triad	2,101,000	78.8	%	7.0	%	3,381,000	84.3	%	42.8	%
Kansas City	639,000	86.0	%	3.9	%	—	—		—
Greenville	897,000	88.5	%	3.8	%	—	—		—
Orlando	416,000	94.4	%	2.7	%	—	—		—

	20,445,000	88.8	%	100.0	%	6,463,000	87.4	%	100.0	%


	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Cash Revenue 2/
Kansas City 3/	869,000	98.0	%	100.0	%

	869,000	98.0	%	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 December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/	Excludes 205,000 square feet of basement space in the Country Club Plaza.

Occupancy Trends - Office, Industrial and Retail Properties 1/


Market	Measurement	12/31/09		9/30/09		6/30/09		3/31/09		12/31/08

Atlanta	Rentable Square Feet	5,653,000		5,653,000		5,653,000		5,552,000		5,552,000
	Occupancy	90.4	%	90.7	%	91.4	%	91.9	%	93.4	%
	Current Properties 2/	90.2	%	90.5	%	91.2	%	91.9	%	93.3	%

Greenville	Rentable Square Feet	897,000		897,000		897,000		897,000		897,000
	Occupancy	88.5	%	89.0	%	90.5	%	93.8	%	94.4	%
	Current Properties 2/	88.5	%	89.0	%	90.5	%	93.8	%	94.4	%

Kansas City 3/	Rentable Square Feet	1,508,000		1,508,000		1,508,000		1,936,000		1,953,000
	Occupancy	92.9	%	89.8	%	89.3	%	90.8	%	92.3	%
	Current Properties 2/	92.9	%	89.8	%	89.3	%	90.2	%	93.1	%

Memphis	Rentable Square Feet	1,582,000		1,582,000		1,472,000		1,472,000		1,473,000
	Occupancy	91.5	%	91.6	%	93.1	%	92.5	%	92.5	%
	Current Properties 2/	90.9	%	91.6	%	93.1	%	92.5	%	92.5	%

Nashville	Rentable Square Feet	2,938,000		2,997,000		2,997,000		2,997,000		2,988,000
	Occupancy	95.1	%	93.8	%	95.0	%	95.2	%	95.0	%
	Current Properties 2/	95.1	%	93.6	%	94.9	%	95.1	%	94.6	%

Orlando	Rentable Square Feet	416,000		416,000		416,000		416,000		416,000
	Occupancy	94.4	%	95.7	%	96.8	%	94.2	%	95.0	%
	Current Properties 2/	94.4	%	95.7	%	96.8	%	94.2	%	95.0	%

Piedmont Triad	Rentable Square Feet	5,482,000		5,526,000		5,526,000		5,526,000		5,526,000
	Occupancy	82.2	%	79.1	%	78.2	%	81.8	%	86.1	%
	Current Properties 2/	82.2	%	79.0	%	78.1	%	81.7	%	86.1	%

Raleigh	Rentable Square Feet	4,194,000		4,224,000		4,004,000		3,711,000		3,711,000
	Occupancy	83.8	%	83.6	%	83.7	%	85.5	%	88.6	%
	Current Properties 2/	83.7	%	83.6	%	82.6	%	85.4	%	88.5	%

Richmond	Rentable Square Feet	2,229,000		2,229,000		2,228,000		2,228,000		2,229,000
	Occupancy	93.2	%	92.4	%	92.0	%	91.3	%	90.8	%
	Current Properties 2/	93.2	%	92.4	%	92.0	%	91.2	%	90.8	%

Tampa	Rentable Square Feet	2,878,000		2,658,000		2,658,000		2,658,000		2,627,000
	Occupancy	90.9	%	90.7	%	90.8	%	88.7	%	91.6	%
	Current Properties 2/	90.7	%	90.7	%	90.8	%	88.7	%	91.5	%


Total	Rentable Square Feet	27,777,000		27,690,000		27,359,000		27,393,000		27,372,000
	Occupancy	88.8	%	87.8	%	88.0	%	89.0	%	91.0	%

	Current Properties 2/	88.7	%	87.8	%	87.8	%	88.9	%	90.9	%

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 205,000 square feet of basement space in the Country Club Plaza.

Leasing Statistics

Office Portfolio 1/


	Three Months Ended															Five Quarter Average
	12/31/09 2/			9/30/09 3/			6/30/09 4/			3/31/09 5/			12/31/08 6/			Five Quarter Average

Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		85			97			95			104			129			102
Rentable square footage leased		774,795			558,856			737,490			546,833			868,233			697,241
Square footage of Renewal Deals		580,701			401,168			622,050			430,986			703,690			547,719
Renewed square footage (% of total)		74.9	%		71.8	%		84.3	%		78.8	%		81.0	%		78.6	%
New Leases square footage (% of total)		25.1	%		28.2	%		15.7	%		21.2	%		19.0	%		21.4	%

Weighted average per rentable square foot over the lease term:
Base rent	$	20.19		$	20.70		$	19.06		$	19.52		$	21.21		$	20.14
Tenant improvements		(1.63	)		(1.21	)		(0.87	)		(2.12	)		(1.21	)		(1.42	)
Leasing commissions 7/		(0.34	)		(0.53	)		(0.44	)		(0.47	)		(0.60	)		(0.48	)
Rent concessions		(0.43	)		(0.59	)		(0.39	)		(0.40	)		(0.35	)		(0.43	)

Effective rent		17.79			18.37			17.36			16.53			19.05			17.81
Expense stop		(7.61	)		(6.67	)		(5.74	)		(6.83	)		(6.07	)		(6.58	)

Equivalent effective net rent	$	10.18		$	11.70		$	11.62		$	9.70		$	12.98		$	11.23

Weighted average term in years		7.6			3.8			3.6			4.1			4.7			4.8



Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	10,491,600		$	3,637,183		$	3,304,902		$	4,619,505		$	5,973,249		$	5,724,289
Rentable square feet		774,795			558,856			737,490			546,833			868,233			697,241

Per rentable square foot	$	13.54		$	6.51		$	4.48		$	8.45		$	6.88		$	8.21


Leasing Commissions:
Total dollars committed under signed leases 7/	$	1,095,745		$	1,248,668		$	1,361,976		$	1,002,735		$	2,463,135		$	1,434,452
Rentable square feet		774,795			558,856			737,490			546,833			868,233			697,241

Per rentable square foot	$	1.41		$	2.23		$	1.85		$	1.83		$	2.84		$	2.06


Total:
Total dollars committed under signed leases	$	11,587,351		$	4,885,851		$	4,666,878		$	5,622,240		$	8,436,384		$	7,158,741
Rentable square feet		774,795			558,856			737,490			546,833			868,233			697,241

Per rentable square foot	$	14.96		$	8.74		$	6.33		$	10.28		$	9.72		$	10.27

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 106K square feet of leases that start in 2012 or later.

3/	Includes 98K square feet of leases that start in 2011 or later.

4/	Includes 143K square feet of leases that start in 2011 or later.

5/	Includes 91K square feet of leases that start in 2011 or later.

6/	Includes 38K square feet of leases that start in 2011 or later.

7/	Excludes a full allocation of internal leasing costs.

Leasing Statistics

Industrial Portfolio


	Three Months Ended															Five Quarter Average
	12/31/09			9/30/09 2/			6/30/09			3/31/09 3/			12/31/08			Five Quarter Average

Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		18			18			14			14			14			15
Rentable square footage leased		500,405			191,863			624,617			292,938			297,789			361,522
Square footage of Renewal Deals		380,291			127,503			459,757			128,542			249,927			249,204
Renewed square footage (% of total)		76.0	%		66.5	%		73.6	%		43.9	%		83.9	%		68.9	%
New Leases square footage (% of total)		24.0	%		33.5	%		26.4	%		56.1	%		16.1	%		31.1	%

Weighted average per rentable square foot over the lease term:
Base rent	$	3.86		$	7.29		$	3.47		$	4.59		$	4.37		$	4.61
Tenant improvements		(.26	)		(0.51	)		(0.29	)		(0.27	)		(0.26	)		(0.33	)
Leasing commissions 4/		(.06	)		(0.04	)		(0.10	)		(0.07	)		(0.08	)		(0.07	)
Rent concessions		(.07	)		(0.11	)		(0.09	)		(0.17	)		(0.01	)		(0.09	)

Effective rent		3.47			6.63			2.99			4.08			4.02			4.12
Expense stop		(.24	)		(2.35	)		(0.31	)		(0.35	)		(0.08	)		(0.68	)

Equivalent effective net rent	$	3.23		$	4.28		$	2.68		$	3.73		$	3.94		$	3.44

Weighted average term in years		4.3			3.4			3.1			4.1			3.7			3.7



Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	760,858		$	411,696		$	775,542		$	506,567		$	420,373		$	575,007
Rentable square feet		500,405			191,863			624,617			292,938			297,789			361,522

Per rentable square foot	$	1.52		$	2.15		$	1.24		$	1.73		$	1.41		$	1.59


Leasing Commissions:
Total dollars committed under signed leases 4/	$	170,216		$	22,307		$	218,170		$	106,339		$	71,111		$	117,629
Rentable square feet		500,405			191,863			624,617			292,938			297,789			361,522

Per rentable square foot	$	.34		$	0.12		$	0.35		$	0.36		$	0.24		$	0.33


Total:
Total dollars committed under signed leases	$	931,075		$	434,003		$	993,712		$	612,906		$	491,484		$	692,636
Rentable square feet		500,405			191,863			624,617			292,938			297,789			361,522

Per rentable square foot	$	1.86		$	2.26		$	1.59		$	2.09		$	1.65		$	1.92

1/	Includes 100K squarefeet of leases that start in 2012 or later.

2/	Includes 32K square feet of leases that start in 2011 or later.

3/	Includes 56K square feet of leases that start in 2011 or later.

4/	Excludes a full allocation of internal leasing costs.

Leasing Statistics

Retail Portfolio


	Three Months Ended															Five Quarter Average
	12/31/09 1/			9/30/09 2/			6/30/09 3/			3/31/09			12/31/08 4/			Five Quarter Average

Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		11			9			9			5			13			9
Rentable square footage leased		40,271			49,132			60,665			11,279			57,245			43,718
Square footage of Renewal Deals		25,966			16,954			54,455			4,970			53,385			31,146
Renewed square footage (% of total)		64.5	%		34.5	%		89.8	%		44.1	%		93.3	%		71.2	%
New Leases square footage (% of total)		35.5	%		65.5	%		10.2	%		55.9	%		6.7	%		28.8	%

Weighted average per rentable square foot over the lease term:
Base rent	$	29.22		$	29.31		$	15.71		$	20.47		$	18.46		$	22.63
Tenant improvements		(0.68	)		(2.28	)		(0.40	)		(1.64	)		(0.65	)		(1.13	)
Leasing commissions 5/		(0.34	)		(0.68	)		(0.06	)		0.00			(0.04	)		(0.22	)
Rent concessions		(0.47	)		0.00			(0.04	)		0.00			(0.05	)		(0.11	)

Effective rent		27.73			26.35			15.21			18.83			17.72			21.17
Expense stop		0.00			0.00			0.00			(0.64	)		0.00			(0.13	)

Equivalent effective net rent	$	27.73		$	26.35		$	15.21		$	18.19		$	17.72		$	21.04

Weighted average term in years		3.7			9.2			2.8			6.1			7.6			5.9



Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases	$	152,202		$	1,275,370		$	241,785		$	158,227		$	344,272		$	434,371
Rentable square feet		40,271			49,132			60,665			11,279			57,245			43,718

Per rentable square foot	$	3.78		$	25.96		$	3.99		$	14.03		$	6.01		$	9.94


Leasing Commissions:
Total dollars committed under signed leases 5/	$	28,158		$	401,183		$	34,975		$	1,000		$	20,072		$	97,078
Rentable square feet		40,271			49,132			60,665			11,279			57,245			43,718

Per rentable square foot	$	0.70		$	8.17		$	0.58		$	0.09		$	0.35		$	2.22


Total:
Total dollars committed under signed leases	$	180,360		$	1,676,553		$	276,760		$	159,227		$	364,344		$	531,449
Rentable square feet		40,271			49,132			60,665			11,279			57,245			43,718

Per rentable square foot	$	4.48		$	34.12		$	4.56		$	14.12		$	6.36		$	12.16

1/	Includes 4K square feet of leases that start in 2012 or later.

2/	Includes 11K square feet of leases that start in 2011 or later.

3/	Includes 3K square feet of leases that start in 2011 or later.

4/	Includes 5K square feet of leases that start in 2011 or later.

5/	Excludes a full allocation of internal leasing costs.

Leasing Statistics by Market

For the Three Months Ended 12/31/09

Office Portfolio 1/


Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Atlanta	282,790	11.4	$	18.55	$	19.50	$	0.04
Nashville	196,470	5.1		22.02		5.53		1.85
Raleigh	137,038	7.7		18.50		20.73		1.72
Richmond	70,456	5.2		17.87		14.79		3.63
Memphis	63,572	2.3		20.83		4.14		1.13
Kansas City	13,541	4.7		27.29		15.22		7.82
Tampa	10,309	4.0		23.01		12.65		0.00
Orlando	619	3.0		18.27		7.00		1.64

	774,795	7.6	$	19.76	$	14.31	$	1.41

Industrial Portfolio



Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Piedmont Triad	289,944	3.6	$	2.62	$	1.22	$	0.24
Atlanta	210,461	5.2		6.08		1.94		.47

	500,405	4.3	$	3.79	$	1.52	$	0.43

Retail Portfolio



Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Kansas City	40,271	3.7	$	28.75	$	3.78	$	0.70

	40,271	3.7	$	28.75	$	3.78	$	0.70

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

2/	Lease commissions 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 was $584K.

Rental Rate Comparisons by Market

For the Three Months Ended 12/31/09

Office Portfolio 1/


Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Atlanta	282,790	$	18.55	$	23.12	-19.8	%
Nashville	196,470		22.02		20.29	8.5	%
Raleigh	137,038		18.50		16.50	12.1	%
Richmond	70,456		17.87		19.10	-6.4	%
Memphis	63,572		20.83		18.86	10.4	%
Kansas City	13,541		27.29		24.83	9.9	%
Tampa	10,309		23.01		23.10	-0.4	%
Orlando	619		18.27		16.70	9.4	%

GAAP Rent Growth	774,795	$	19.76	$	20.63	-4.2	%

Cash Rent Growth	774,795	$	18.79	$	21.20	-11.4	%

Industrial Portfolio


Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Piedmont Triad	289,944	$	2.62	$	3.63	-27.8	%
Atlanta	110,461		6.08		5.33	14.1	%

GAAP Rent Growth	500,405	$	3.79	$	4.04	-6.2	%

Cash Rent Growth	500,405	$	3.96	$	4.94	-19.8	%

Retail Portfolio


Market	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Market	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Kansas City	40,271	$	28.75	$	28.87	-0.4	%

GAAP Rent Growth	40,271	$	28.75	$	28.87	-0.4	%

Cash Rent Growth	40,271	$	28.01	$	33.21	-15.7	%

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


Type	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Office	$	20.61		$	20.15		$	19.14		$	18.57		$	17.57
Industrial		5.19			5.22			5.07			5.14			4.76
Retail 2/		34.69			31.41			31.20			29.66			27.61

Weighted average rate	$	17.53		$	17.18		$	16.27		$	15.89		$	14.99

Annual % growth rate		2.0	%		5.6	%		2.4	%		6.0	%

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

2/	Excludes percentage rent.

3/	Annualized Cash Revenue is December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Lease Expirations

December 31, 2009

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/
2010 /3	2,251,739	12.3	%	$	44,893	$	19.94	11.9	%
2011	2,465,343	13.5	%		49,966		20.27	13.3	%
2012	2,480,324	13.6	%		53,456		21.55	14.3	%
2013	2,404,558	13.2	%		52,537		21.85	14.0	%
2014	2,369,355	13.0	%		49,471		20.88	13.1	%
2015	1,591,620	8.7	%		29,792		18.72	7.9	%
2016	1,023,767	5.6	%		19,264		18.82	5.1	%
2017	1,078,540	5.9	%		20,693		19.19	5.5	%
2018	637,843	3.5	%		14,331		22.47	3.8	%
2019	439,924	2.4	%		8,456		19.22	2.2	%
2020 and thereafter	1,511,552	8.3	%		33,418		22.11	8.9	%

	18,254,565	100.0	%	$	376,277	$	20.61	100.0	%


Industrial:
2010 /4	928,972	16.2	%	$	3,740	$	4.03	12.5	%
2011	903,344	15.7	%		5,241		5.80	17.6	%
2012	778,952	13.5	%		3,853		4.95	12.9	%
2013	625,039	10.9	%		3,829		6.13	12.8	%
2014	851,483	14.8	%		4,472		5.25	15.0	%
2015	421,149	7.3	%		1,677		3.98	5.6	%
2016	264,597	4.6	%		1,086		4.10	3.6	%
2017	61,600	1.1	%		584		9.48	2.0	%
2018	71,884	1.2	%		251		3.49	0.8	%
2019	121,470	2.1	%		257		2.12	0.9	%
2020 and thereafter	722,625	12.6	%		4,879		6.75	16.3	%

	5,751,115	100.0	%	$	29,869	$	5.19	100.0	%

1/	Annualized Cash Revenue is December, 2009 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 61,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

4/	Includes 50,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue.

Note:

2010 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Lease Expirations

December 31, 2009

(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:
2010 2/	79,635	9.4	%	$	2,202	$	27.65	7.5	%
2011	74,457	8.7	%		1,723		23.14	5.8	%
2012	90,754	10.7	%		3,657		40.30	12.4	%
2013	47,027	5.5	%		2,190		46.57	7.4	%
2014	41,014	4.8	%		2,061		50.25	7.0	%
2015	69,331	8.1	%		3,356		48.41	11.4	%
2016	59,889	7.0	%		2,539		42.40	8.6	%
2017	110,803	13.0	%		2,554		23.05	8.6	%
2018	45,975	5.4	%		2,010		43.72	6.8	%
2019	87,530	10.3	%		2,547		29.10	8.6	%
2020 and thereafter	144,800	17.1	%		4,691		32.40	15.9	%

	851,215	100.0	%	$	29,530	$	34.69	100.0	%


Total:
2010 3/ 4/	3,260,346	13.1	%	$	50,835	$	15.59	11.7	%
2011	3,443,144	13.9	%		56,930		16.53	13.1	%
2012	3,350,030	13.5	%		60,966		18.20	13.9	%
2013	3,076,624	12.4	%		58,556		19.03	13.3	%
2014	3,261,852	13.1	%		56,004		17.17	12.9	%
2015	2,082,100	8.4	%		34,825		16.73	8.0	%
2016	1,348,253	5.4	%		22,889		16.98	5.3	%
2017	1,250,943	5.0	%		23,831		19.05	5.5	%
2018	755,702	3.0	%		16,592		21.96	3.8	%
2019	648,924	2.6	%		11,260		17.35	2.6	%
2020 and thereafter	2,378,977	9.6	%		42,988		18.07	9.9	%

	24,856,895	100.0	%	$	435,676	$	17.53	100.0	%

1/	Annualized Cash Revenue is December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/	Includes 11,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue.

3/	Includes 122,000 square feet of leases that are on a month to month basis or 0.3% 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:

2010 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands


			*Three Months Ended*
			3/31/10 2/			6/30/10			9/30/10			12/31/10			Total

Atlanta	RSF			33,704			10,580			174,320			17,891			236,495
	% of Total Office RSF			0.2	%		0.1	%		1.0	%		0.1	%		1.3	%
	Annualized Cash Revenue	3/	$	546		$	200		$	3,329		$	357		$	4,432
	% of Total Office Annl Cash Rev			0.1	%		0.1	%		0.9	%		0.1	%		1.2	%

Greenville	RSF			54,507			5,240			17,045			0			76,792
	% of Total Office RSF			0.3	%		0.0	%		0.1	%		0.0	%		0.4	%
	Annualized Cash Revenue	3/	$	937		$	98		$	272		$	—		$	1,307
	% of Total Office Annl Cash Rev			0.2	%		0.0	%		0.1	%		0.0	%		0.3	%

Kansas City	RSF			6,833			19,957			25,251			44,121			96,162
	% of Total Office RSF			0.0	%		0.1	%		0.1	%		0.2	%		0.5	%
	Annualized Cash Revenue	3/	$	176		$	531		$	777		$	1,365		$	2,849
	% of Total Office Annl Cash Rev			0.0	%		0.1	%		0.2	%		0.4	%		0.8	%

Memphis	RSF			107,841			51,910			20,162			66,422			246,335
	% of Total Office RSF			0.6	%		0.3	%		0.1	%		0.4	%		1.3	%
	Annualized Cash Revenue	3/	$	2,180		$	1,131		$	409		$	1,472		$	5,192
	% of Total Office Annl Cash Rev			0.6	%		0.3	%		0.1	%		0.4	%		1.4	%

Nashville	RSF			147,317			158,200			104,786			63,641			473,944
	% of Total Office RSF			0.8	%		0.9	%		0.6	%		0.3	%		2.6	%
	Annualized Cash Revenue	3/	$	1,570		$	3,253		$	2,305		$	1,264		$	8,392
	% of Total Office Annl Cash Rev			0.4	%		0.9	%		0.6	%		0.3	%		2.2	%

Orlando	RSF			10,066			6,788			74,301			0			91,155
	% of Total Office RSF			0.1	%		0.0	%		0.4	%		0.0	%		0.5	%
	Annualized Cash Revenue	3/	$	236		$	186		$	1,808		$	—		$	2,230
	% of Total Office Annl Cash Rev			0.1	%		0.0	%		0.5	%		0.0	%		0.6	%

Piedmont Triad	RSF			30,545			64,564			80,180			23,587			198,876
	% of Total Office RSF			0.2	%		0.4	%		0.4	%		0.1	%		1.1	%
	Annualized Cash Revenue	3/	$	495		$	883		$	1,412		$	454		$	3,244
	% of Total Office Annl Cash Rev			0.1	%		0.2	%		0.4	%		0.1	%		0.9	%

Raleigh	RSF			172,244			70,285			37,292			43,209			323,030
	% of Total Office RSF			0.9	%		0.4	%		0.2	%		0.2	%		1.7	%
	Annualized Cash Revenue	3/	$	2,982		$	1,466		$	738		$	925		$	6,111
	% of Total Office Annl Cash Rev			0.8	%		0.4	%		0.2	%		0.2	%		1.6	%

Richmond	RSF			92,559			120,595			37,824			50,129			301,107
	% of Total Office RSF			0.5	%		0.7	%		0.2	%		0.3	%		1.6	%
	Annualized Cash Revenue	3/	$	1,822		$	2,184		$	726		$	1,009		$	5,741
	% of Total Office Annl Cash Rev			0.5	%		0.6	%		0.2	%		0.3	%		1.5	%

Tampa	RSF			33,419			98,704			62,068			13,652			207,843
	% of Total Office RSF			0.2	%		0.5	%		0.3	%		0.1	%		1.1	%
	Annualized Cash Revenue	3/	$	848		$	2,633		$	1,542		$	375		$	5,398
	% of Total Office Annl Cash Rev			0.2	%		0.7	%		0.4	%		0.1	%		1.4	%

Total	RSF			689,035			606,823			633,229			322,652			2,251,739
	% of Total Office RSF			3.7	%		3.3	%		3.5	%		1.8	%		12.3	%
	Annualized Cash Revenue	3/	$	11,792		$	12,565		$	13,318		$	7,221		$	44,896
	% of Total Office Annl Cash Rev			3.1	%		3.3	%		3.5	%		1.9	%		11.9	%

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 61,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

3/	Annualized Cash Revenue is December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Industrial Lease Expirations by Market by Quarter

Dollars in thousands


			*Three Months Ended*
			3/31/10 1/			6/30/10			9/30/10			12/31/10			Total

Atlanta	RSF			101,200			64,099			133,002			63,804			362,105
	% of Total Industrial RSF			1.8	%		1.1	%		2.3	%		1.1	%		6.3	%
	Annualized Cash Revenue	2/	$	535		$	73		$	896		$	339		$	1,843
	% of Total Industrial Annl Cash Rev			1.8	%		0.2	%		3.0	%		1.1	%		6.2	%

Piedmont Triad	RSF			304,771			137,515			107,537			17,044			566,867
	% of Total Industrial RSF			5.3	%		2.4	%		1.9	%		0.3	%		9.9	%
	Annualized Cash Revenue	2/	$	915		$	226		$	593		$	163		$	1,897
	% of Total Industrial Annl Cash Rev			3.1	%		0.8	%		2.0	%		0.5	%		6.4	%

Total	RSF			405,971			201,614			240,539			80,848			928,972
	% of Total Industrial RSF			7.1	%		3.5	%		4.2	%		1.4	%		16.2	%
	Annualized Cash Revenue	2/	$	1,450		$	299		$	1,489		$	502		$	3,740
	% of Total Industrial Annl Cash Rev			4.9	%		1.0	%		5.0	%		1.7	%		12.6	%

1/	Includes 50,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue.

2/	Annualized Cash Revenue is December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Office Lease Expirations by Market by Year 1/

Dollars in thousands


			2010 2/			2011			2012			2013			Thereafter

Atlanta	RSF			236,495			72,983			322,653			361,529			1,315,763
	% of Total Office RSF			1.3	%		0.4	%		1.8	%		2.0	%		7.2	%
	Annualized Cash Revenue	3/	$	4,431		$	1,429		$	7,438		$	6,845		$	28,536
	% of Total Office Annl Cash Rev			1.2	%		0.4	%		2.0	%		1.8	%		7.6	%

Greenville	RSF			76,792			104,244			220,902			121,602			270,599
	% of Total Office RSF			0.4	%		0.6	%		1.2	%		0.7	%		1.5	%
	Annualized Cash Revenue	3/	$	1,308		$	1,946		$	3,808		$	2,088		$	5,185
	% of Total Office Annl Cash Rev			0.3	%		0.5	%		1.0	%		0.6	%		1.4	%

Kansas City	RSF			96,162			82,277			75,736			15,240			280,354
	% of Total Office RSF			0.5	%		0.5	%		0.4	%		0.1	%		1.5	%
	Annualized Cash Revenue	3/	$	2,849		$	2,133		$	1,915		$	379		$	7,382
	% of Total Office Annl Cash Rev			0.8	%		0.6	%		0.5	%		0.1	%		2.0	%

Memphis	RSF			246,335			163,968			165,742			205,360			666,242
	% of Total Office RSF			1.3	%		0.9	%		0.9	%		1.1	%		3.6	%
	Annualized Cash Revenue	3/	$	5,192		$	3,498		$	3,536		$	4,704		$	13,629
	% of Total Office Annl Cash Rev			1.4	%		0.9	%		0.9	%		1.3	%		3.6	%

Nashville	RSF			473,944			393,524			323,282			293,805			1,412,643
	% of Total Office RSF			2.6	%		2.2	%		1.8	%		1.6	%		7.7	%
	Annualized Cash Revenue	3/	$	8,392		$	9,022		$	7,067		$	6,011		$	26,613
	% of Total Office Annl Cash Rev			2.2	%		2.4	%		1.9	%		1.6	%		7.1	%

Orlando	RSF			91,155			114,033			6,449			21,149			160,315
	% of Total Office RSF			0.5	%		0.6	%		0.0	%		0.1	%		0.9	%
	Annualized Cash Revenue	3/	$	2,230		$	2,611		$	206		$	575		$	4,428
	% of Total Office Annl Cash Rev			0.6	%		0.7	%		0.1	%		0.2	%		1.2	%

Piedmont Triad	RSF			198,876			433,968			404,512			144,383			473,094
	% of Total Office RSF			1.1	%		2.4	%		2.2	%		0.8	%		2.6	%
	Annualized Cash Revenue	3/	$	3,244		$	6,496		$	7,814		$	2,260		$	6,406
	% of Total Office Annl Cash Rev			0.9	%		1.7	%		2.1	%		0.6	%		1.7	%

Raleigh	RSF			323,030			560,904			441,309			345,238			1,843,403
	% of Total Office RSF			1.8	%		3.1	%		2.4	%		1.9	%		10.1	%
	Annualized Cash Revenue		$	6,108		$	11,647		$	8,837		$	6,520		$	36,355
	% of Total Office Annl Cash Rev			1.6	%		3.1	%		2.3	%		1.7	%		9.7	%

Richmond	RSF			301,107			385,483			236,176			313,363			841,930
	% of Total Office RSF			1.6	%		2.1	%		1.3	%		1.7	%		4.6	%
	Annualized Cash Revenue	3/	$	5,741		$	7,389		$	4,492		$	6,211		$	14,837
	% of Total Office Annl Cash Rev			1.5	%		2.0	%		1.2	%		1.7	%		3.9	%

Tampa	RSF			207,843			153,959			283,563			582,889			1,388,258
	% of Total Office RSF			1.1	%		0.8	%		1.6	%		3.2	%		7.6	%
	Annualized Cash Revenue	3/	$	5,397		$	3,795		$	8,343		$	16,944		$	32,056
	% of Total Office Annl Cash Rev			1.4	%		1.0	%		2.2	%		4.5	%		8.5	%

Total	RSF			2,251,739			2,465,343			2,480,324			2,404,558			8,652,601
	% of Total Office RSF			12.3	%		13.5	%		13.6	%		13.2	%		47.4	%
	Annualized Cash Revenue	3/	$	44,892		$	49,966		$	53,456		$	52,537		$	175,427
	% of Total Office Annl Cash Rev			11.9	%		13.3	%		14.2	%		14.0	%		46.6	%

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 61,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

3/	Annualized Cash Revenue is December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Industrial Lease Expirations by Market by Year

Dollars in thousands


			2010 1/			2011			2012			2013			Thereafter

Atlanta	RSF			362,105			502,007			288,570			357,416			1,390,295
	% of Total Industrial RSF			6.3	%		8.7	%		5.0	%		6.2	%		24.2	%
	Annualized Cash Revenue	2/	$	1,843		$	3,075		$	1,686		$	2,030		$	8,444
	% of Total Industrial Annl Cash Rev			6.2	%		10.3	%		5.6	%		6.8	%		28.3	%

Piedmont Triad	RSF			566,867			401,337			490,382			267,623			1,124,513
	% of Total Industrial RSF			9.9	%		7.0	%		8.5	%		4.7	%		19.6	%
	Annualized Cash Revenue	2/	$	1,897		$	2,166		$	2,166		$	1,799		$	4,762
	% of Total Industrial Annl Cash Rev			6.4	%		7.3	%		7.3	%		6.0	%		15.9	%

Total	RSF			928,972			903,344			778,952			625,039			2,514,808
	% of Total Industrial RSF			16.2	%		15.7	%		13.5	%		10.9	%		43.7	%
	Annualized Cash Revenue	2/	$	3,740		$	5,241		$	3,852		$	3,829		$	13,206
	% of Total Industrial Annl Cash Rev			12.5	%		17.5	%		12.9	%		12.8	%		44.2	%

1/	Includes 50,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue.

2/	Annualized Cash Revenue is December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Customer Diversification 1/

December 31, 2009

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	1,901,654		$	38,750	8.89	%	8.1
AT&T	768,579			14,678	3.37	%	4.2
Price Waterhouse Coopers	400,178			11,531	2.65	%	2.7
State of Georgia	375,105			8,222	1.89	%	7.5
Healthways	290,689			7,490	1.72	%	12.5
T-Mobile USA	207,517			6,047	1.39	%	3.9
Metropolitan Life Insurance	296,595			5,953	1.37	%	8.0
BB&T	267,463			4,541	1.04	%	3.6
Lockton Companies	160,561			4,424	1.02	%	5.2
Syniverse Technologies	198,750			4,201	0.96	%	6.8
RBC Bank	164,271			4,084	0.94	%	17.0
Fluor Enterprises	209,474			3,763	0.86	%	2.1
SCI Services 3/	162,784			3,641	0.84	%	7.6
HCA Corporation	180,164			3,620	0.83	%	4.5
Volvo	249,136			3,354	0.77	%	4.5
Jacobs Engineering Group	181,794			3,078	0.71	%	5.7
Vanderbilt University	144,611			3,056	0.70	%	5.8
Wells Fargo/Wachovia	125,995			3,013	0.69	%	1.6
Lifepoint Corporate Services	139,625			2,894	0.66	%	1.6
Icon Clinical Research	102,647			2,492	0.57	%	2.0

	6,527,592		$	138,832	31.87	%	6.4



By Industry
	Percent of Annualized Cash Revenue 2/
Category	Percent of Annualized Cash Revenue 2/
Professional, Scientific, and Technical Services	20.5	%
Government/Public Administration	11.4	%
Finance/Banking	10.7	%
Health Care and Social Assistance	8.1	%
Insurance	7.7	%
Wholesale Trade	6.6	%
Manufacturing	5.4	%
Retail Trade	5.3	%
Telecommunication	5.3	%
Information	4.2	%
Administrative and Support Services	3.5	%
Real Estate Rental and Leasing	3.1	%
Accommodation and Food Services	2.5	%
Transportation and Warehousing	2.0	%
Other Services (except Public Administration)	1.9	%
Educational Services	1.8	%

	100.0	%

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

2/	Annualized Cash Revenue is December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

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

Same Property Performance

Dollars and Square Feet in thousands


	Three months ended December 31,						Percentage Change
	2009			2008			Percentage Change
Rental revenues 1/	$	98,349		$	103,094		-4.6	%
Operating expenses		(34,964	)		(37,880	)	7.7	%

		63,385			65,214		-2.8	%
Straight line rent		(19	)		(380	)	-95.0	%

		63,366			64,834		-2.3	%
Lease termination fees		179			215		-16.7	%

Net operating income	$	63,545		$	65,049		-2.3	%

Average occupancy		88.1	%		91.2	%	-3.4	%

Rentable square feet		25,352			25,352


	Twelve months ended December 31,						Percentage Change
	2009			2008			Percentage Change
Rental revenues 1/	$	398,489		$	407,454		-2.2	%
Operating expenses		(141,456	)		(143,123	)	1.2	%

		257,033			264,331		-2.8	%
Straight line rent		(737	)		2,168		-134.0	%

		256,296			266,499		-3.8	%
Lease termination fees		1,509			2,558		-41.0	%

Net operating income	$	258,209		$	269,012		-4.2	%

Average occupancy		88.0	%		91.2	%	-3.5	%

Rentable square feet		25,352			25,352


	Fourth Quarter: 2009 vs 2008				Full Year: 2009 vs 2008
Market	NOI 2/ Percentage Change		Occupancy Percentage Change		NOI 2/ Percentage Change		Occupancy Percentage Change
Atlanta	-0.9	%	-3.2	%	-.1	%	-2.0	%
Greenville	-12.8	%	-6.3	%	-0.6	%	0.0	%
Kansas City	-12.3	%	0.3	%	-14.7	%	-0.6	%
Memphis	-2.7	%	-1.8	%	-4.6	%	-1.1	%
Nashville	-1.2	%	-0.6	%	0.2	%	-1.1	%
Orlando	12.1	%	-2.2	%	5.8	%	0.8	%
Piedmont Triad	1.8	%	-7.8	%	-3.7	%	-8.2	%
Raleigh	-6.9	%	-7.8	%	-8.7	%	-7.2	%
Richmond	2.7	%	2.1	%	-.4	%	-0.1	%
Tampa	7.0	%	-0.3	%	-.6	%	-2.7	%

	-2.3	%	-3.4	%	-3.8	%	-3.5	%

1/	Excludes straight line rents and lease termination fees.

2/	Includes straight line rents and excludes lease termination fees.

Disposition Activity

Dollars in thousands


Name	Market	Type 1/	Date Sold	Square Footage	Occupancy		Gross Sales Price

First quarter 2009:
Somerset	Kansas City	I	01/16/09	4,000	46.5	%	$	200

First quarter totals				4,000	46.5	%	$	200


Second quarter 2009:
KC Community Centers	Kansas City	R	05/28/09	413,000	96.2	%	$	62,142

Second quarter totals				413,000	96.2	%	$	62,142


Third quarter 2009:
None

Fourth quarter 2009:
2205 Walnut Street 2/	Raleigh	O	12/03/09	30,000	100.0	%	$	4,150
101 Winners Circle	Nashville	O	12/22/09	60,000	100.0	%		6,861
Highwoods Square	Triad	R	11/02/09	10,000	100.0	%		4,231
2051 Griffith Road	Triad	R	11/02/09	30,000	100.0	%		4,769

Fourth quarter totals				130,000	100.0	%	$	20,011

2009 totals				547,000	96.7	%	$	82,353

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

2/	Accounted for as a financing transaction at December 31, 2009 and will be accounted for as a completed sale in first quarter of 2010.

Development Activity

Dollars in thousands


Property	Market	Type	Rentable Square Feet	Anticipated Total Investment		Investment as of 12/31/09			Pre Leased %		Estimated Completion Date	Estimated Stabilization Date
Completed Not Stabilized 1/
Office:
Cool Springs IV	Nashville	O	153,000	$	27,597	$	25,068		74	%	3Q 08	1Q 10
Triad Centre III	Memphis	O	148,000	$	29,187	$	27,593		17	%	4Q 09	2Q 11

Total or Weighted Average			301,000	$	56,784	$	52,661		46	%

							$ Weighted %		45	%

Industrial:
River Point IV	Atlanta	I	200,000	$	12,414	$	11,496		50	%	1Q 09	2Q 10

Total or Weighted Average			200,000	$	12,414	$	11,496		50	%

						$	Weighted	%	50	%

Grand Total or Weighted Average			501,000	$	69,198	$	64,157		48	%

						$	Weighted	%	46	%

For Sale Residential Condominiums


		Units For Sale	Units Sold	Gross Sale Proceeds		Net Gain 5/
RBC Plaza Condominiums 2/ 3/ 4/	Raleigh	38	101	$	42,327	$	5,767

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

2/	In January 2007 the Company executed a Joint Venture agreement for this development. The Company has a majority interest and consolidates this Joint Venture.

3/	Units Sold, Gross Sale Proceeds and Net Gain are as of 2/2/10.

4/	As of 12/31/09, 99 Units were Sold, Gross Sale Proceeds were $41.5 million and Net Gain was $5.6 million. 4Q09 Net Gain to the Company was $210K.

5/	Gains include any forfeited deposits and are net of partner’s interest.

Development Land

December 31, 2009

Dollars in thousands


Market	Usable Acres	Total Estimated Market Value
Atlanta	233	$	32,654
Raleigh	190		40,934
Greensboro	47		9,087
Richmond	33		9,153
Tampa	20		14,417
Nashville	16		11,099
Orlando	16		12,576
Memphis	15		3,396
Baltimore	7		1,800
Winston-Salem	3		1,250
Kansas City	1		2,100

Total 1/2/	581	$	138,466

1/	Developable square footage on core land holdings, which constitute 490 of the total 581 acres, is approximately 5.4 million of office space and 2.5 million of industrial space.

2/	Includes 4.4 acres ($1.4 million based on expected gross proceeds) included in property held for sale at December 31, 2009.

Acquisition Activity

Dollars in thousands


Name	Market	Type	Date Acquired	Square Footage	Total Cost

First quarter 2009:
None

Second quarter 2009:
None

Third quarter 2009:
None

Fourth quarter 2009:
4200 Cypress 2/	Tampa	O	11/16/09	220,000	$	24,700


Fourth quarter totals				220,000		24,700

2009 totals				220,000	$	24,700

1/	The letter “O” represents Office.

2/	Cost includes certain improvement costs.

Unconsolidated Joint Ventures Assets, Debt and Liabilities

December 31, 2009

Dollars in thousands


				Venture’s Books
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities

Board of Trade Investment Co.	O	49.0	%	$	7,263	$	—	$	95
Dallas County Partners I, LP	O/I	50.0	%		28,649		47,300		50,551
Dallas County Partners II, LP	O	50.0	%		12,960		12,716		14,297
Dallas County Partners III, LP	O	50.0	%		124		—		42
Fountain Three	O/I/R	50.0	%		25,455		32,022		34,750
RRHWoods , LLC	O/M	50.0	%		85,092		79,978		85,170
Kessinger/Hunter, LLC	—	26.5	%		7,088		—		354
4600 Madison Associates, LP	O	12.5	%		16,016		11,624		12,032
Highwoods DLF 98/29, LP	O	22.8	%		130,901		67,975		71,879
Highwoods DLF 97/26 DLF 99/32, LP	O	42.9	%		89,629		49,210		51,600
Concourse Center Associates, LLC	O	50.0	%		13,503		8,430		8,645
Plaza Colonnade, LLC	O/R	50.0	%		70,699		64,447		65,554
Highwoods KC Glenridge Office, LP	O	40.0	%		23,240		16,118		16,649
Highwoods KC Glenridge Land, LP	O	40.0	%		776		—		115
Highwoods KC Orlando, LLC	O	40.0	%		198,320		136,764		144,299
Highwoods DLF Forum, LLC	O	25.0	%		112,971		67,500		70,696
Highwoods Development B, LLC	O	10.00	%		4,255		—		213

Total				$	826,941	$	594,084	$	626,941


				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities

Board of Trade Investment Co.	O	49.00	%	$	3,559	$	—	$	47
Dallas County Partners I, LP	O/I	50.00	%		14,325		23,650		25,276
Dallas County Partners II, LP	O	50.00	%		6,480		6,358		7,149
Dallas County Partners III, LP	O	50.00	%		62		—		21
Fountain Three	O/I/R	50.00	%		12,728		16,011		17,375
RRHWoods , LLC	O/M	50.00	%		42,546		39,989		42,585
Kessinger/Hunter, LLC	—	26.50	%		1,878		—		94
4600 Madison Associates, LP	O	12.50	%		2,002		1,453		1,504
Highwoods DLF 98/29, LP	O	22.81	%		29,859		15,505		16,396
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		38,478		21,126		22,152
Concourse Center Associates, LLC	O	50.00	%		6,752		4,215		4,323
Plaza Colonnade, LLC		50.00	%		35,350		32,224		32,777
Highwoods KC Glenridge Office, LP	O	40.00	%		9,296		6,447		6,660
Highwoods KC Glenridge Land, LP	O	40.00	%		310		—		46
Highwoods KC Orlando, LLC	O	40.00	%		79,328		54,705		57,720
Highwoods DLF Forum, LLC	O	25.00	%		28,238		16,872		17,671
Highwoods Development B, LLC	O	10.00	%		426		—		21

Total 2/				$	311,617	$	238,555	$	251,817

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.

Unconsolidated Joint Ventures Income

For the Three Months Ended December 31, 2009

Dollars in thousands


			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain/(loss) on Sale		Net Income/ (Loss)

Board of Trade Investment Co.	49.00	%	$	403	$	196	$	—	$	165	$	—	$	42
Dallas County Partners I, LP	50.00	%		2,410		1,545		743		418		—		(296	)
Dallas County Partners II, LP	50.00	%		1,729		880		316		217		—		316
Dallas County Partners III, LP	50.00	%		54		58		—		—		—		(4	)
Fountain Three	50.00	%		1,907		983		508		390		—		26
RRHWoods , LLC	50.00	%		4,558		2,645		821		1,088		—		4
Kessinger/Hunter, LLC	26.50	%		2,674		2,399		—		148		—		127
4600 Madison Associates, LP	12.50	%		959		488		203		390		—		(122	)
Highwoods DLF 98/29, LP	22.81	%		4,051		1,394		1,129		1,135		—		393
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		3,557		1,233		954		1,053		—		317
Concourse Center Associates, LLC	50.00	%		468		143		154		78		—		93
Plaza Colonnade, LLC	50.00	%		2,769		872		945		644		—		308
Highwoods KC Glenridge Office, LP	40.00	%		657		361		207		219		—		(130	)
Highwoods KC Glenridge Land, LP	40.00	%		—		2		—		—		—		(2	)
Highwoods KC Orlando, LLC	40.00	%		7,838		3,423		1,803		1,775		—		837
Highwoods DLF Forum, LLC	25.00	%		3,447		1,212		878		1,356		—		1
Highwoods Development B, LLC	10.00	%		—		—		—		—		—		—

Total			$	37,481	$	17,834	$	8,661	$	9,076	$	—	$	1,910


			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain/(loss) on Sale		Net Income/ (Loss)

Board of Trade Investment Co.	49.00	%	$	197	$	96	$	—	$	81	$	—	$	20
Dallas County Partners I, LP	50.00	%		1,205		773		371		209		—		(148	)
Dallas County Partners II, LP	50.00	%		864		440		158		109		—		157
Dallas County Partners III, LP	50.00	%		27		29		—		—		—		(2	)
Fountain Three	50.00	%		954		492		254		195		—		13
RRHWoods , LLC	50.00	%		2,279		1,322		411		544		—		2
Kessinger/Hunter, LLC	26.50	%		709		635		—		40		—		34
4600 Madison Associates, LP	12.50	%		120		61		25		48		—		(14	)
Highwoods DLF 98/29, LP	22.81	%		924		318		258		259		—		89
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		1,527		530		410		452		—		135
Concourse Center Associates, LLC	50.00	%		234		71		77		39		—		47
Plaza Colonnade, LLC				1,385		436		473		322		—		154
Highwoods KC Glenridge Office, LP	40.00	%		263		144		83		88		—		(52	)
Highwoods KC Glenridge Land, LP	40.00	%		—		—		—		—		—		—
Highwoods KC Orlando, LLC	40.00	%		3,135		1,369		722		710		—		334
Highwoods DLF Forum, LLC	25.00	%		861		303		219		339		—		—
Highwoods Development B, LLC	10.00	%		—		—		—		—		—		—

Total 1/ 2/			$	14,684	$	7,019	$	3,461	$	3,435	$	—	$	769

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

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

Unconsolidated Joint Ventures Income

For the Year Ended December 31, 2009

Dollars in thousands


			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain/(loss) on Sale			Net Income/ (Loss)

Board of Trade Investment Co.	49.00	%	$	2,288	$	1,464	$	—	$	571	$	—		$	253
Dallas County Partners I, LP	50.00	%		9,309		6,001		3,014		1,760		—			(1,466	)
Dallas County Partners II, LP	50.00	%		6,432		2,974		1,394		865		—			1,199
Dallas County Partners III, LP	50.00	%		226		232		—		—		—			(6	)
Fountain Three	50.00	%		7,661		3,731		2,069		1,383		—			478
RRHWoods , LLC	50.00	%		17,339		9,764		3,231		4,205		—			139
Kessinger/Hunter, LLC	26.50	%		10,105		9,556		—		591		—			(42	)
4600 Madison Associates, LP	12.50	%		4,713		2,147		840		1,699		—			27
Highwoods DLF 98/29, LP	22.81	%		16,720		6,362		4,646		4,638		3,426			4,500
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		13,900		5,527		4,046		4,226		(463	)		(362	)
Concourse Center Associates, LLC	50.00	%		1,903		536		622		309		—			436
Plaza Colonnade, LLC	50.00	%		10,939		3,730		3,783		2,390		—			1,036
Highwoods KC Glenridge Office, LP	40.00	%		2,714		1,571		824		772		—			(453	)
Highwoods KC Glenridge Land, LP	40.00	%		—		11		—		—		—			(11	)
Highwoods KC Orlando, LLC	40.00	%		31,848		13,948		7,264		7,081		—			3,555
Highwoods DLF Forum, LLC	25.00	%		13,725		4,790		3,512		5,731		—			(308	)
Highwoods Development B, LLC	10.00	%		—		—		—		—		—			—

Total			$	149,822	$	72,344	$	35,245	$	36,221	$	2,963		$	8,975


			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain/(loss) on Sale			Net Income/ (Loss)

Board of Trade Investment Co.	49.00	%	$	1,121	$	717	$	—	$	280	$	—		$	124
Dallas County Partners I, LP	50.00	%		4,655		3,001		1,507		880		—			(733	)
Dallas County Partners II, LP	50.00	%		3,216		1,487		697		433		—			599
Dallas County Partners III, LP	50.00	%		113		116		—		—		—			(3	)
Fountain Three	50.00	%		3,831		1,866		1,035		692		—			238
RRHWoods , LLC	50.00	%		8,670		4,882		1,616		2,103		—			69
Kessinger/Hunter, LLC	26.50	%		2,678		2,532		—		157		—			(11	)
4600 Madison Associates, LP	12.50	%		589		268		105		212		—			4
Highwoods DLF 98/29, LP	22.81	%		3,814		1,451		1,060		1,058		781			1,026
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		5,967		2,373		1,737		1,814		(199	)		(156	)
Concourse Center Associates, LLC	50.00	%		952		268		311		155		—			218
Plaza Colonnade, LLC	50.00	%		5,470		1,865		1,892		1,195		—			518
Highwoods KC Glenridge Office, LP	40.00	%		1,086		628		330		309		—			(181	)
Highwoods KC Glenridge Land, LP	40.00	%		—		4		—		—		—			(4	)
Highwoods KC Orlando, LLC	40.00	%		12,739		5,579		2,906		2,832		—			1,422
Highwoods DLF Forum, LLC	25.00	%		3,431		1,198		878		1,433		—			(78	)
Highwoods Development B, LLC	10.00	%		—		—		—		—		—			—

Total 1/ 2/			$	58,332	$	28,235	$	14,074	$	13,553	$	582		$	3,052

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

Unconsolidated Joint Ventures Long-Term Debt Detail 1/

Dollars in thousands


Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 12/31/09
Dallas County Partners I, LP	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18	$	40,386
Dallas County Partners I, LP	50.0	%	Regions	6.30	%	Jun-14		3,330
Dallas County Partners I, LP	50.0	%	Thrivent	8.45	%	Aug-10		1,502
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.00	%	Jul-11		1,106
Dallas County Partners I, LP	50.0	%	Sun Life	5.92	%	Feb-16		976

				6.31	%			47,300
Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.19	%	Jun-13		12,716

Fountain Three	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		16,121
Fountain Three	50.0	%	Thrivent	7.00	%	Sep-12		4,991
Fountain Three	50.0	%	Thrivent	6.01	%	Sep-17		3,570
Fountain Three	50.0	%	Thrivent	6.01	%	Sep-17		3,570
Fountain Three	50.0	%	Bankers Trust	6.94	%	Aug-19		3,770

				6.36	%			32,022
RRHWoods, LLC	50.0	%	Bank of America	6.80	%	Sep-12		25,665
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	0.38	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	5.85	%	Mar-16		8,173
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	0.39	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	0.37	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		4,460
RRHWoods, LLC	50.0	%	UNUM Life Insurance Company	5.67	%	Mar-17		3,850
RRHWoods, LLC	50.0	%	Regions	6.30	%	Jun-14		3,330

				3.82	%			79,978
Plaza Colonnade, LLC	50.0	%	Met Life	5.72	%	Jan-17		47,242
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		4,350
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.38	%	Mar-10		510

				5.77	%			64,447
Highwoods KC Orlando, LLC	40.0	%	Met Life	5.21	%	Jul-14		136,764
Highwoods DLF Forum, LLC	25.0	%	Jackson National Life Insurance Company	5.13	%	Nov-13		67,500
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.66	%	May-12		49,210
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.78	%	Apr-11		40,325
Highwoods DLF 98/29, LP	22.8	%	Goldman Sachs	6.11	%	Jul-17		27,650
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.84	%	May-14		16,118
4600 Madison Associates, LLC	12.5	%	State Farm	6.85	%	Apr-18		11,624
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	6.95	%	Jul-10		8,430

				5.86	%			357,621

				5.73	%		$	594,084

Highwoods’ share of the above							$	238,555

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

2/	Floating rate loan based on market rates.

Joint Ventures Portfolio Summary

As of December 31, 2009

Summary by Location:


	Rentable Square Feet			Percentage of Annualized Cash Revenue Highwoods’ Share Only 1/
Market	Rentable Square Feet	Occupancy		Office		Industrial		Retail		Multi-Family		Total
Des Moines 2/	2,506,000	87.3	%	26.8	%	4.1	%	0.7	%	3.3	%	34.9	%
Orlando	1,853,000	87.2	%	28.6	%	—		—		—		28.6	%
Kansas City	719,000	82.0	%	10.2	%	—		—		—		10.2	%
Atlanta	835,000	73.2	%	9.1	%	—		—		—		9.1	%
Raleigh	814,000	91.9	%	7.6	%	—		—		—		7.6	%
Richmond	413,000	100.0	%	4.8	%	—		—		—		4.8	%
Piedmont Triad	258,000	60.7	%	2.1	%	—		—		—		2.1	%
Tampa	205,000	94.2	%	2.0	%	—		—		—		2.0	%
Charlotte	148,000	100.0	%	0.7	%	—		—		—		0.7	%

Total 3/	7,751,000	86.0	%	91.9	%	4.1	%	0.7	%	3.3	%	100.0	%

1/	Annualized Cash Revenue is December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/	Excludes 418 apartment units and related occupancy percentage of 91.9%.

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

Joint Ventures Lease Expirations

December 31, 2009

Dollars in thousands


Year	Rentable Square Feet Expiring 1/	Percent of Rentable Square Feet 1/		Annualized Cash Revenue 2/		Average Rental Rate		Percent of Annualized Cash Revenue 2/
Total
2010	787,378	11.8	%	$	14,609	$	18.55	10.6	%
2011	1,036,609	15.6	%		21,167		20.42	15.4	%
2012	545,100	8.2	%		12,014		22.04	8.7	%
2013	1,227,857	18.5	%		25,209		20.53	18.2	%
2014	994,389	14.9	%		23,946		24.08	17.3	%
2015	801,561	12.0	%		15,237		19.01	11.1	%
2016	94,097	1.4	%		1,744		18.53	1.3	%
2017	664,559	10.0	%		14,172		21.33	10.3	%
2018	103,039	1.5	%		2,353		22.84	1.7	%
2019	109,419	1.6	%		1,186		10.84	0.9	%
2020 and thereafter	297,235	4.5	%		6,141		20.66	4.5	%

	6,661,243	100.0	%	$	137,778	$	20.68	100.0	%

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

2/	Annualized Cash Revenue is December, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Joint Venture Acquisition and Disposition Activity

Dollars in thousands

Acquisitions

Name

Own %

Market

Type

Date Acquired

Square
Footage

Total Cost

First quarter 2009:

None

Second quarter 2009:

None

Third quarter 2009:

None

Fourth quarter 2009:

None

Dispositions

Name

Own %

Market

Type 1/

Date Sold

Square
Footage

Occupancy

Gross Sales
Price

First quarter 2009:

None

Second quarter 2009:

Automatic Data Processing

22.8%

Baltimore

04/15/09

110,000

100.0%

$14,800

Second quarter totals

110,000

100.0%

$14,800

Third quarter 2009:

Corporate Square

42.9%

Winston-Salem

07/24/09

106,000

0.0%

$7,100

Third quarter totals

106,000

0.0%

$7,100

Fourth quarter 2009:

None

2009 totals

216,000

50.9%

$21,900

1/	The letter “O” represents Office.

Joint Venture Development Activity

Dollars in thousands


In Progress
Property	% Ownership		Market	Rentable Square Feet	Anticipated Total Investment		Investment as of 12/31/09		Pre- Leasing		Estimated In-Service Date
Charlotte GSA	10	%	Charlotte	171,460	$	46,493	$	4,202	100	%	3Q11

In Progress Total					$	46,493	$	4,202

Highwoods’ Share of the above					$	4,649	$	420

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