EX-99.2 3 dex992.htm SUPPLEMENTAL OPERATING INFORMATION FOR THE QUARTER ENDED MARCH 31, 2008

Supplemental Operating Information for the quarter ended March 31, 2008

Exhibit 99.2

Supplemental Information

March 31, 2008

Supplemental Information

Table of Contents

March 31, 2008

Schedule		Page
Corporate Information		i, ii and iii
Consolidated Statements of Income		1
Statement of Funds from Operations and Additional Information		2
Consolidated Balance Sheets		3
Estimated Net Asset Value		4
Components of Discontinued Operations		5
Capitalization		6
Long-Term Debt Summary		7
Long-Term Debt Detail		8
Portfolio Summary		9, 10 and 11
Occupancy Trends		12
Leasing Statistics		13, 14 and 15
Leasing Statistics by Market		16
Rental Rate Comparisons by Market		17
Lease Expirations		18 and 19
Office Lease Expirations by Market by Quarter		20
Industrial Lease Expirations by Market by Quarter		21
Office Lease Expirations by Market by Year		22
Industrial Lease Expirations by Market by Year		23
Customer Diversification		24
Same Property Performance		25
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
Joint Ventures Long-Term Debt Detail		32
Joint Ventures Portfolio Summary		33
Joint Ventures Lease Expirations		34
Joint Venture Acquisition and Disposition Activity		35

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 30 to 35, unless noted otherwise. Wholly-owned entities include properties classified as both continuing operations and discontinued operations.

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

Highwoods Properties, Inc. 03/31/08

Summary

Amounts in thousands, except per share amounts

		Three Months Ended
		03/31/08				12/31/07				09/30/07				06/30/07				03/31/07
Shares and units:
Common shares outstanding at end of period			57,309				57,167				57,158				57,131				56,711
Common units outstanding at end of period			3,950				4,057				4,059				4,062				4,115
Weighted average common shares outstanding—basic			56,729				56,640				56,628				56,460				56,040
Weighted average common shares outstanding—diluted			61,050				61,347				61,396				61,562				61,900
Share price:
At end of period		$	31.07			$	29.38			$	36.67			$	37.50			$	39.49
High close during period			32.34				38.26				39.01				43.84				46.95
Low close during period			26.67				28.89				32.09				37.50				37.99
Financial information:
Land sale gains, net of (impairments)		$	—			$	(419	)		$	(564	)		$	969			$	15,835
Lease termination income			1,900				840				259				1,477				41
Straight line rental income			2,404				4,048				908				890				1,572
Capitalized interest			2,585				2,489				2,742				2,365				2,147
Impairments on depreciable properties			—				—				(384	)			—				—
Gains on sales of depreciable properties			3,726				8,623				8,064				1,475				20,651
Gain from property insurance settlement			—				—				—				—				4,128
Funds from operations per share - diluted		$	0.71			$	0.65			$	0.59			$	0.58			$	0.91
Funds from operations per share - diluted, excluding certain items 1/		$	0.71			$	0.65			$	0.61			$	0.60			$	0.91
Wholly - owned property information:
In-Service rentable square feet:
Office			19,535				19,260				19,003				19,194				19,154
Industrial			6,036				6,036				5,942				6,280				6,280
Retail			1,314				1,317				1,318				1,317				1,326
Total			26,885				26,613				26,263				26,791				26,760
In-Service occupancy:
Office			90.4	%			91.1	%			89.7	%			88.5	%			89.3	%
Industrial			91.0	%			94.2	%			91.4	%			90.8	%			91.9	%
Retail			92.9	%			94.9	%			94.4	%			94.8	%			95.4	%
Total			90.7	%			92.0	%			90.4	%			89.3	%			90.2	%

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

Highwoods Properties, Inc. i 03/31/08

Corporate Information

Board of Directors		Research Coverage
Thomas W. Adler		Credit Suisse - North America
Gene H. Anderson		Steven Benyik - 212-538-0239
Kay N. Callison
Edward J. Fritsch		Deutsche Banc Securities
Lawrence S. Kaplan		Lou Taylor - 212-469-4912
Sherry A. Kellett
L. Glenn Orr Jr.		Friedman, Billings, Ramsey & Co., Inc.
O. Temple Sloan Jr., Chairman		Wilkes Graham - 703-312-9737
Corporate Officers		Green Street Advisors
		Cedric Lachance - 949-640-8780
Edward J. Fritsch
President, Chief Executive Officer and Director		Morgan Stanley
		David Cohen - 212-761-8564
Michael E. Harris
Executive Vice President and Chief Operating Officer		Citigroup Global Markets
		Michael Bilerman - 212-816-1383
Terry L. Stevens
Senior Vice President, Chief Financial Officer		Stifel Nicolaus
		John Guinee - 410-454-5520
Daniel L. Clemmens
Vice President, Chief Accounting Officer		UBS Securities
		Jamie Feldman - 212-713-4932
S. Hugh Esleeck
Treasurer		Wachovia Securities
		Chris Haley - 443-263-6773
Carman J. Liuzzo
Vice President, Investments
Art H. McCann
Chief Information Officer
Jeffrey D. Miller
Vice President, General Counsel and Secretary
Kevin E. Penn
Vice President, Strategy
Tabitha N. Zane
Vice President, Investor Relations and Corporate Communications

Highwoods Properties, Inc. ii 03/31/08

Corporate Information

Divisional Officers		Corporate Headquarters
		Highwoods Properties, Inc.
Atlanta/Piedmont Triad		3100 Smoketree Court, Suite 600
Gene H. Anderson - Senior Vice President		Raleigh, NC 27604
		919-872-4924
Atlanta, GA
James V. Bacchetta, Vice President		Stock Exchange
		NYSE        Trading Symbol: HIW
Piedmont Triad, NC
E. F. “Rick” Dehnert, Vice President		Investor Relations Contact
		Tabitha Zane
Orlando/Tampa		Vice President, Investor Relations and Corporate Communications
Michael F. Beale - Senior Vice President		Phone:		919-431-1529
		Fax:		919-431-1439
Orlando, FL		E-mail:		tabitha.zane@highwoods.com
Michael F. Beale, Senior Vice President
		Information Request
Tampa, FL Daniel E. Woodward, Vice President		To request a standard Investor Relations package, Annual Report or to be added to our e-mail or fax list, please contact the Corporate Communications/IR Specialist at:
Raleigh		Phone:		919-431-1529
Raleigh, NC		Email:		HIW-IR@highwoods.com
Thomas “Skip” Hill, Vice President
		The Company
Richmond Richmond, VA Paul W. Kreckman, Vice President Nashville/Memphis/Greenville W. Brian Reames - Senior Vice President Nashville, TN and Greenville, SC W. Brian Reames, Senior Vice President Memphis, TN Steven L. Guinn, Vice President Kansas City Kansas City, MO Barrett Brady, Senior Vice President Glenn E. Stephenson, VP of Retail Operations		Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered and self-managed equity real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. As of March 31, 2008, the Company owned or had an interest in 381 in-service office, industrial and retail properties encompassing approximately 34.2 million square feet. Highwoods also owned 616 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Maryland, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, and Virginia. For more information about Highwoods Properties, please visit our website at www.highwoods.com.

Highwoods Properties, Inc. iii 03/31/08

Consolidated Statements of Income

Amounts in thousands, except per share amounts

		Three Months Ended
		03/31/08				12/31/07				09/30/07				06/30/07				03/31/07
Rental and other revenues		$	114,780			$	114,471			$	108,237			$	105,819			$	106,108
Operating expenses:
Rental property and other expenses			39,128				41,061				38,963				37,879				37,936
Depreciation and amortization			31,041				30,643				32,036				29,896				28,965
Impairment of assets held for use			—				—				789				—				—
General and administrative			9,711				10,142				9,649				10,868				10,911
Total operating expenses			79,880				81,846				81,437				78,643				77,812
Interest expenses:
Contractual			23,463				24,478				23,728				23,097				22,689
Amortization of deferred financing costs			638				624				616				609				566
Financing obligations			740				962				981				995				992
			24,841				26,064				25,325				24,701				24,247
Other income:
Interest and other income			803				1,308				1,470				2,117				1,514
			803				1,308				1,470				2,117				1,514
Income before disposition of property, insurance gain, minority interest and equity in earnings of unconsolidated affiliates			10,862				7,869				2,945				4,592				5,563
Gains on disposition of property, net			—				190				1,288				2,341				16,743
Gain from property insurance settlement			—				—				—				—				4,128
Minority interest			(837	)			(470	)			(277	)			(392	)			(2,580	)
Equity in earnings of unconsolidated affiliates			1,989				180				1,207				2,006				9,717
Income from continuing operations			12,014				7,769				5,163				8,547				33,571
Discontinued operations:
Income from discontinued operations, net of minority interest			146				210				629				646				725
Net gains on sales of discontinued operations, net of minority interest			3,483				7,479				6,175				96				18,262
Release of FASB FIN 48 tax liability			—				—				1,473				—				—
			3,629				7,689				8,277				742				18,987
Net income			15,643				15,458				13,440				9,289				52,558
Dividends on preferred stock			(2,838	)			(2,838	)			(2,680	)			(3,846	)			(4,113	)
Excess of preferred stock redemption cost over carrying value			—				—				(842	)			(1,443	)			—
Net income available for common stockholders		$	12,805			$	12,620			$	9,918			$	4,000			$	48,445
Net income per common share—diluted:
Income from continuing operations		$	0.16			$	0.09			$	0.03			$	0.06			$	0.52
Income from discontinued operations			0.06				0.13				0.14				0.01				0.33
Net income		$	0.22			$	0.22			$	0.17			$	0.07			$	0.85
Weighted average common shares outstanding—diluted			61,050				61,347				61,396				61,562				61,900
Dividends declared and paid per common share		$	0.425			$	0.425			$	0.425			$	0.425			$	0.425

Highwoods Properties, Inc. 1 03/31/08

Statement of Funds from Operations

and Additional Information

Amounts in thousands, except per share amounts

		Three Months Ended
		03/31/08				12/31/07				09/30/07				06/30/07				03/31/07
Funds from operations:
Net income		$	15,643			$	15,458			$	13,440			$	9,289			$	52,558
Dividends to preferred stockholders			(2,838	)			(2,838	)			(2,680	)			(3,846	)			(4,113	)
Excess of preferred stock redemption cost over carrying value			—				—				(842	)			(1,443	)			—
Net income available for common stockholders			12,805				12,620				9,918				4,000				48,445
Add/(deduct):
Depreciation and amortization of real estate assets			30,484				30,067				31,439				29,288				28,328
(Gains) on disposition of depreciable properties			—				(609	)			(1,063	)			(1,372	)			(908	)
Minority interest from the Operating Partnership in income from continuing operations			639				309				107				224				2,400
Unconsolidated affiliates:
Depreciation and amortization of real estate assets			2,935				4,587				3,107				2,878				2,866
(Gains) on disposition of depreciable properties			—				—				—				—				(7,158	)
Discontinued operations:
Depreciation and amortization of real estate assets			68				264				628				651				781
(Gains) on disposition of depreciable properties			(3,726	)			(8,014	)			(7,001	)			(103	)			(19,743	)
Release of FASB FIN 48 tax liability			—				—				(1,473	)			—				—
Minority interest in income from discontinued operations			254				551				487				54				1,539
Funds from operations		$	43,459			$	39,775			$	36,149			$	35,620			$	56,550
Funds from operations per share—diluted
Net income available for common stockholders		$	0.22			$	0.22			$	0.17			$	0.07			$	0.85
Add/(deduct):
Depreciation and amortization of real estate assets			0.50				0.49				0.51				0.48				0.46
(Gains) on disposition of depreciable properties			—				(0.01	)			(0.02	)			(0.02	)			(0.01	)
Unconsolidated affiliates:
Depreciation and amortization of real estate assets			0.05				0.08				0.05				0.04				0.04
(Gains) on disposition of depreciable properties			—				—				—				—				(0.12	)
Discontinued operations:
Depreciation and amortization of real estate assets			—				—				0.01				0.01				0.01
(Gains) on disposition of depreciable properties			(0.06	)			(0.13	)			(0.11	)			—				(0.32	)
Release of FASB FIN 48 tax liability			—				—				(0.02	)			—				—
Funds from operations		$	0.71			$	0.65			$	0.59			$	0.58			$	0.91
Weighted average shares outstanding—diluted			61,050				61,347				61,396				61,562				61,900
Additional information: 1/
Funds from operations, excluding certain items 2/		$	43,459			$	39,775			$	37,375			$	37,063			$	56,550
Funds from operations per share, excluding certain items 2/		$	0.71			$	0.65			$	0.61			$	0.60			$	0.91
Straight line rental income		$	(2,404	)
Amortization of lease incentives			222
Depreciation of non-real estate assets			413
Ground lease straight line rent			43
Amortization of stock-based compensation			2,227
Amortization of deferred financing costs			638
Amortization of accumulated other comprehensive loss			80
Harborview non-cash FMV charge			(35	)
Non-incremental revenue generating capital expenditures paid: 3/
Building improvements			(2,472	)
2nd generation tenant improvements			(10,225	)
2nd generation lease commissions			(3,370	)
Common dividends and unit distributions paid			(25,982	)

1/ Increase or (decrease) to cash flows.

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

3/ Excludes capital expenditures paid for buildings sold prior to March 31, 2008.

Highwoods Properties, Inc. 2 03/31/08

Consolidated Balance Sheets

Dollars in thousands

		03/31/08				12/31/07
Assets:
Real estate assets, at cost:
Land		$	360,836			$	356,199
Buildings and tenant improvements			2,743,659				2,701,004
Development in process			107,129				101,661
Land held for development			96,839				103,365
			3,308,463				3,262,229
Less-accumulated depreciation			(664,944	)			(647,685	)
Net real estate assets			2,643,519				2,614,544
Real estate and other assets, net, held for sale			18,299				18,309
Cash and cash equivalents			6,595				3,140
Restricted cash			13,862				15,896
Accounts receivable, net			20,782				23,521
Notes receivable, net			3,036				5,226
Accrued straight-line rents receivable, net			76,715				74,313
Investment in unconsolidated affiliates			58,054				58,046
Deferred financing and leasing costs, net			72,693				72,007
Prepaid expenses and other assets			44,263				41,953
Total Assets		$	2,957,818			$	2,926,955
Liabilities, Minority Interest and Stockholders’ Equity:
Mortgages and notes payable		$	1,703,238			$	1,641,987
Accounts payable, accrued expenses and other liabilities			142,139				157,766
Financing obligations			35,296				35,071
Total Liabilities			1,880,673				1,834,824
Minority interest			67,596				70,098
Stockholders’ Equity:
Preferred stock			135,437				135,437
Common stock			573				572
Additional paid-in capital			1,447,958				1,448,055
Distributions in excess of net earnings			(572,591	)			(561,093	)
Accumulated other comprehensive loss			(1,828	)			(938	)
Total Stockholders’ Equity			1,009,549				1,022,033
Total Liabilities, Minority Interest and Stockholders’ Equity		$	2,957,818			$	2,926,955

Highwoods Properties, Inc. 3 03/31/08

Estimated Net Asset Value Ranges

As Released on February 12, 2008 — See Note Below

Dollars in thousands, except per share amounts

Note: The following table sets forth information that was reported in our Supplemental issued February 12, 2008 and has not been updated to reflect facts or circumstances or changes in financial and operating assumptions that may have occurred subsequent to such date. This information is based on a range of estimated capitalization rates and projected net operating income, among other things, and is not intended to be an asset-by-asset or enterprise valuation.

NOI Cap Rates:
Office			7.00	%			7.25	%			7.50	%
Retail			5.50	%			5.75	%			6.00	%
Industrial/Other			7.25	%			7.50	%			7.75	%
Consolidated Properties Projected 2008 Net Operating Income 1/ 3/
Office		$	220,168			$	220,168			$	220,168
Retail			29,634				29,634				29,634
Industrial/Other			22,176				22,176				22,176
Total		$	271,978			$	271,978			$	271,978
Consolidated Properties Capitalized Value
Office		$	3,145,257			$	3,036,800			$	2,935,573
Retail			538,800				515,374				493,900
Industrial/Other			305,876				295,680				286,142
Total		$	3,989,933			$	3,847,854			$	3,715,615
Highwoods’ Share of Unconsolidated Joint Ventures
Projected 2008 net operating income		$	30,584			$	30,584			$	30,584
Capitalization rates			7.00	%			7.25	%			7.50	%
Capitalized value		$	436,914			$	421,848			$	407,787
Total In-Service Property Value		$	4,426,847			$	4,269,702			$	4,123,402
Value of Other income
Development, leasing and management fees		$	4,773			$	4,773			$	4,773
Capitalization rate			20	%			20	%			20	%
Value of other income		$	23,867			$	23,867			$	23,867
Add Other assets:
Development pipeline investment at 135% of cost 2/		$	249,230			$	249,230			$	249,230
Assets not fairly valued by capitalized NOI valuation method 3/			204,698				204,698				204,698
Property held for sale at net sales price			10,674				10,674				10,674
Land held for development at market value			138,013				138,013				138,013
Cash and cash equivalents			3,140				3,140				3,140
Restricted cash			15,896				15,896				15,896
Accounts receivable, net			23,521				23,521				23,521
Notes receivable and prepaid expenses			47,180				47,180				47,180
Total		$	692,352			$	692,352			$	692,352
Gross Value of Assets		$	5,143,066			$	4,985,920			$	4,839,620
Deductions:
Total liabilities		$	155,779			$	155,779			$	155,779
Mortgages and notes payable			1,641,987				1,641,987				1,641,987
Market value of debt adjustment			(9,065	)			(9,065	)			(9,065	)
Minority interest adjustment 4/			41,280				41,280				41,280
Preferred stock, at liquidation value			135,437				135,437				135,437
Highwoods’ share of unconsolidated joint ventures liabilities			246,814				246,814				246,814
Estimated Net Asset Value		$	2,930,834			$	2,773,689			$	2,627,388
Estimated diluted common shares and common units for 2008			61,425				61,425				61,425
Estimated Net Asset Value Per Share		$	47.71			$	45.16			$	42.77

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

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

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

4/ Represents adjustment to reflect the minority interest in the fair value of our consolidated joint ventures.

Highwoods Properties, Inc. 4 03/31/08

Components of Discontinued Operations

Dollars in thousands

		Three Months Ended
		03/31/08				12/31/07				09/30/07				06/30/07				03/31/07
Rental and other revenues		$	506			$	1,337			$	2,628			$	2,667			$	2,876
Operating expenses:
Rental property and other expenses			282				864				1,329				1,325				1,323
Depreciation and amortization			68				264				628				651				781
General and administrative			—				—				—				—				—
Total operating expenses			350				1,128				1,957				1,976				2,104
Other income			1				17				3				2				11
Income before minority interest and gains on sales of discontinued operations			157				226				674				693				783
Minority interest in discontinued operations			(11	)			(16	)			(45	)			(47	)			(58	)
Income from discontinued operations before gains on sales of discontinued operations			146				210				629				646				725
Net gains on sales of discontinued operations			3,726				8,014				6,617				103				19,743
Minority interest in discontinued operations			(243	)			(535	)			(442	)			(7	)			(1,481	)
Net gains on sales of discontinued operations, net of minority interest			3,483				7,479				6,175				96				18,262
Net income from discontinued operations before release of FASB FIN 48 tax liability			3,629				7,689				6,804				742				18,987
Release of FASB FIN 48 tax liability			—				—				1,473				—				—
Net income from discontinued operations		$	3,629			$	7,689			$	8,277			$	742			$	18,987

Highwoods Properties, Inc. 5 03/31/08

Capitalization

Dollars, shares, and units in thousands

		03/31/08			12/31/07			09/30/07			06/30/07			03/31/07
Long-Term Debt (see pages 7 & 8):		$	1,703,238		$	1,641,987		$	1,601,474		$	1,557,571		$	1,487,509
Financing Obligations:		$	35,296		$	35,071		$	34,919		$	35,683		$	35,529
Preferred Stock (at liquidation value):
Series A 8 5/8% Perpetual Preferred Stock		$	82,937		$	82,937		$	82,937		$	104,945		$	104,945
Series B 8% Perpetual Preferred Stock			52,500			52,500			52,500			52,500			92,500
Total preferred stock		$	135,437		$	135,437		$	135,437		$	157,445		$	197,445
Common Shares and Units Outstanding:
Common stock outstanding			57,309			57,167			57,158			57,131			56,711
Minority interest partnership units			3,951			4,057			4,059			4,062			4,115
Total common shares and units outstanding			61,260			61,224			61,217			61,193			60,826
Stock price at period end		$	31.07		$	29.38		$	36.67		$	37.50		$	39.49
Market value of common equity		$	1,903,348		$	1,798,761		$	2,244,827		$	2,294,738		$	2,402,019
Total market capitalization with debt and obligations		$	3,777,319		$	3,611,256		$	4,016,657		$	4,045,437		$	4,122,502

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

Highwoods Properties, Inc. 6 03/31/08

Long-Term Debt Summary

Dollars in thousands

		03/31/08				12/31/07				09/30/07				06/30/07				03/31/07
Balances Outstanding:
Secured:
Conventional fixed rate 1/		$	643,041			$	645,500			$	657,408			$	659,741			$	662,036
Variable rate debt			26,890				19,811				11,920				1,014				13,688
Secured total			669,931				665,311				669,328				660,755				675,724
Unsecured:
Fixed rate bonds and notes			648,907				748,876				748,846				748,816				748,785
Bank term loan			137,500				—				—				—				—
Credit facility			246,900				227,800				183,300				148,000				63,000
Unsecured total			1,033,307				976,676				932,146				896,816				811,785
Total		$	1,703,238			$	1,641,987			$	1,601,474			$	1,557,571			$	1,487,509
End of Period Weighted Average Interest Rates:
Secured:
Conventional fixed rate			6.62	%			6.62	%			6.63	%			6.63	%			6.63	%
Variable rate debt			4.34	%			6.61	%			7.02	%			7.11	%			6.55	%
Secured total			6.50	%			6.62	%			6.64	%			6.63	%			6.63	%
Unsecured:
Fixed rate bonds			6.53	%			6.61	%			6.61	%			6.61	%			6.61	%
Bank term loan			3.71	%			—				—				—				—
Credit facility			3.65	%			5.80	%			6.32	%			6.12	%			6.12	%
Unsecured total			5.47	%			6.42	%			6.56	%			6.53	%			6.57	%
Average			5.88	%			6.50	%			6.59	%			6.57	%			6.60	%

Maturity Schedule:

		Future Maturities of Debt						Total Debt 2/			Average Interest Rate
Year		Secured Debt 2/			Unsecured Debt
2008		$	—		$	—		$	—		—
2009			128,915			296,900			425,815		5.42	%
2010			24,416			—			24,416		4.32	%
2011			—			137,500			137,500		3.71	%
2012			212,617			—			212,617		6.94	%
2013			266,776			—			266,776		5.90	%
2014			37,207			—			37,207		5.79	%
2015			—			—			—		—
2016			—			—			—		—
2017			—			398,907			398,907		5.85	%
2018			—			200,000			200,000		7.50	%
Total maturities		$	669,931		$	1,033,307		$	1,703,238		5.88	%

Weighted average maturity = 5.3 years

1/ Includes a $22.6 million loan related to a consolidated 20% owned joint venture (Harborview) and $37.2 million in loans at March 31, 2008 related to a consolidated 50% joint venture (Markel).

2/ All periods exclude annual principal amortization.

Highwoods Properties, Inc. 7 03/31/08

Long-Term Debt Detail

Dollars in thousands

Secured Loans
Lender		Rate			Maturity Date		Loan Balance 03/31/08			Undepreciated Book Value of Assets Secured
Northwestern Mutual		7.05	%		Jan-12		$	190,000		$	298,056
Northwestern Mutual		6.03	%		Mar-13			135,009			184,135
Massachusetts Mutual Life Ins. Co. 1/		5.68	%		Dec-13			120,375			214,208
Monumental Life Ins. Co. 2/		7.77	%		Nov-09			79,827			198,610
Monumental Life Ins. Co. 2/		7.87	%		Nov-09			41,029
Metropolitan Life Ins. Co. 3/		6.06	%		Oct-12			22,617			39,065
Wells Fargo 4/		4.36	%		May-10			14,890			18,864
Principal Life Insurance Company 5/		5.79	%		Jan-14			11,406			14,380
Principal Life Insurance Company 5/		5.79	%		Jan-14			11,406			18,781
Massachusetts Mutual Life Ins. Co. 1/		6.48	%		Dec-13			10,650
Wells Fargo 4/		4.26	%		May-10			9,526			12,132
Principal Life Insurance Company 5/		5.74	%		Jan-14			8,994			14,127
Principal Life Insurance Company 5/		5.89	%		Jan-14			5,401			7,514
Lutheran Brotherhood		6.75	%		Apr-09			3,655			7,895
Royal Bank of Canada 4/		4.51	%		Dec-09			2,473			20,889
Security Life of Denver		8.85	%		Aug-09			1,930			9,418
American United Life		9.00	%		Jun-13			743			3,344
		6.50	%					669,931		$	1,061,418
Unsecured Bonds
Bonds		8.13	%		Jan-09			50,000
Bonds		5.85	%		Mar-17			398,907
Bonds		7.50	%		Apr-18			200,000
		6.53	%					648,907
Unsecured Loans
Credit facility 4/ 6/		3.65	%		May-09			246,900
Bank term loan 4/		3.71	%		Feb-11			137,500
		3.67	%					384,400
Total Debt		5.88	%				$	1,703,238

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

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

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

4/ Floating rate loans based on one month libor.

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

6/ Maturity date excludes one-year extension option.

Highwoods Properties, Inc. 8 03/31/08

Portfolio Summary – Wholly-Owned Properties Only 1/

(Rentable Square Feet)

Office Industrial & Retail		03/31/08			12/31/07			09/30/07			06/30/07			03/31/07
In-Service:
Office 2/		19,565,000			19,260,000			19,003,000			19,194,000			19,154,000
Industrial		6,036,000			6,036,000			5,942,000			6,280,000			6,280,000
Retail 3/		1,314,000			1,317,000			1,318,000			1,317,000			1,326,000
Total 4/		26,915,000			26,613,000			26,263,000			26,791,000			26,760,000
Development Completed - Not Stabilized:
Office 2/		524,000			607,000			867,000			560,000			600,000
Industrial		681,000			681,000			681,000			681,000			418,000
Retail		—			—			—			—			—
Total		1,205,000			1,288,000			1,548,000			1,241,000			1,018,000
Development - In Process:
Office 2/		717,000			887,000			1,233,000			1,387,000			1,166,000
Industrial		200,000			—			120,000			120,000			383,000
Retail		—			30,000			30,000			—			—
Total		917,000			917,000			1,383,000			1,507,000			1,549,000
Total:
Office 2/		20,806,000			20,754,000			21,103,000			21,141,000			20,920,000
Industrial		6,917,000			6,717,000			6,743,000			7,081,000			7,081,000
Retail 3/		1,314,000			1,347,000			1,348,000			1,317,000			1,326,000
Total 4/		29,037,000			28,818,000			29,194,000			29,539,000			29,327,000
Same Property
Office 2/		18,498,000			18,498,000			18,498,000			18,498,000			18,498,000
Industrial		5,916,000			5,916,000			5,916,000			5,916,000			5,916,000
Retail		1,314,000			1,314,000			1,314,000			1,314,000			1,314,000
Total		25,728,000			25,728,000			25,728,000			25,728,000			25,728,000
Percent Leased/Pre-Leased:
In-Service:
Office		90.4	%		91.1	%		89.7	%		88.5	%		89.3	%
Industrial		91.0	%		94.2	%		91.4	%		90.8	%		91.9	%
Retail		92.9	%		94.9	%		94.4	%		94.8	%		95.4	%
Total		90.7	%		92.0	%		90.4	%		89.3	%		90.2	%
Development Completed - Not Stabilized:
Office		67.4	%		75.9	%		75.9	%		69.9	%		62.8	%
Industrial		78.2	%		78.2	%		78.2	%		61.0	%		44.0	%
Retail		—			—			—			—			—
Total		73.5	%		77.1	%		76.9	%		65.0	%		55.1	%
Development - In Process:
Office		65.7	%		59.9	%		71.2	%		72.5	%		55.0	%
Industrial		50.0	%		—			100.0	%		0.0	%		50.1	%
Retail		—			100.0	%		100.0	%		—			—
Total		62.3	%		61.2	%		74.3	%		66.7	%		53.8	%
Same Property
Office		90.3	%		91.0	%		89.9	%		88.9	%		89.5	%
Industrial		90.9	%		94.1	%		91.4	%		91.7	%		92.8	%
Retail		92.9	%		95.1	%		94.7	%		95.1	%		95.6	%
Total		90.5	%		91.9	%		90.5	%		89.9	%		90.6	%

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

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

3/ Excludes 428,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

4/ Excludes minor for rent apartment buildings.

Highwoods Properties, Inc. 9 03/31/08

Portfolio Summary

(Continued)

As of March 31, 2008

Summary by Location, Wholly-Owned Properties Only 1/:
Market		Rentable Square Feet			Occupancy			Percentage of Annualized Cash Revenue 2/
								Office			Industrial			Retail			Total
Raleigh 3/		3,712,000			90.3	%		15.3	%		—			—			15.3	%
Nashville		3,184,000			95.0	%		14.5	%		—			—			14.5	%
Kansas City		2,229,000	4/		88.8	%		4.2	%		0.0	%		9.4	%		13.6	%
Atlanta		5,289,000			91.6	%		9.8	%		3.8	%		—			13.6	%
Tampa		2,418,000			94.7	%		13.3	%		—			—			13.3	%
Piedmont Triad 5/		5,358,000			85.2	%		6.4	%		3.7	%		—			10.1	%
Richmond		2,135,000			93.5	%		8.9	%		—			—			8.9	%
Memphis		1,276,000			93.8	%		5.7	%		—			—			5.7	%
Greenville		897,000			86.4	%		3.2	%		—			—			3.2	%
Orlando		317,000			96.9	%		1.4	%		—			—			1.4	%
Other		100,000			68.2	%		0.4	%		—			—			0.4	%
Total		26,915,000			90.7	%		83.1	%		7.5	%		9.4	%		100.0	%

Summary by Location, Including Joint Venture Properties:

Market		Rentable Square Feet			Occupancy			Percentage of Annualized Cash Revenue 2/ 6/
								Office			Industrial			Retail			Multi-Family			Total
Raleigh		3,890,000			90.8	%		13.9	%		—			—			—			13.9	%
Atlanta		6,124,000			92.1	%		10.1	%		3.4	%		—			—			13.5	%
Kansas City		2,943,000	4/		87.3	%		4.7	%		0.0	%		8.3	%		—			13.0	%
Nashville		3,184,000			95.0	%		12.8	%		—			—			—			12.8	%
Tampa		2,623,000			95.1	%		12.0	%		—			—			—			12.0	%
Piedmont Triad		5,722,000			86.0	%		6.0	%		3.2	%		—			—			9.2	%
Richmond		2,548,000			94.5	%		8.4	%		—			—			—			8.4	%
Memphis		1,276,000			93.8	%		5.0	%		—			—			—			5.0	%
Orlando		2,171,000			91.8	%		4.6	%		—			—			—			4.6	%
Des Moines		2,505,000			91.4	%		3.3	%		0.5	%		0.1	%		0.4	%		4.3	%
Greenville		897,000			86.5	%		2.8	%		—			—			—			2.8	%
Other		210,000			84.9	%		0.4	%		—			—			—			0.4	%
Charlotte		148,000			100.0	%		0.1	%		—			—			—			0.1	%
Total		34,241,000			91.0	%		84.1	%		7.1	%		8.4	%		0.4	%		100.0	%

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

2/ Annualized Cash Revenue is March, 2008 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 428,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

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

6/ Includes Highwoods’ share of Joint Venture Annualized Cash Revenue, see page 33.

Highwoods Properties, Inc. 10 03/31/08

Portfolio Summary - Wholly-Owned Properties Only

(Continued)

As of March 31, 2008

		Office Properties 1/								Industrial
Market		Rentable Square Feet		Occupancy			Percentage of Office Annualized Cash Revenue 2/			Rentable Square Feet		Occupancy			Percentage of Industrial Annualized Cash Revenue 2/
Raleigh		3,712,000		90.3	%		18.6	%		—		—			—
Nashville		3,184,000		95.0	%		17.4	%		—		—			—
Tampa		2,418,000		94.7	%		15.9	%		—		—			—
Atlanta		2,470,000		88.6	%		11.8	%		2,819,000		94.2	%		51.0	%
Richmond		2,135,000		93.5	%		10.7	%		—		—			—
Piedmont Triad		2,145,000		80.6	%		7.7	%		3,213,000		88.3	%		48.9	%
Memphis		1,276,000		93.8	%		6.8	%		—		—			—
Kansas City		911,000		83.0	%		5.1	%		4,000		46.5	%		0.1	%
Greenville		897,000		86.4	%		3.8	%		—		—			—
Orlando		317,000		96.9	%		1.7	%		—		—			—
Other		100,000		68.2	%		0.5	%		—		—			—
		19,565,000		90.4	%		100.0	%		6,036,000		91.0	%		100.0	%

		Retail
Market		Rentable Square Feet		Occupancy			Percentage of Retail Annualized Cash Revenue 2/
Kansas City 3/		1,314,000		92.9	%		100.0	%
		1,314,000		92.9	%		100.0	%

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

2/ Annualized Cash Revenue is March, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/ Excludes 428,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

Highwoods Properties, Inc. 11 03/31/08

Occupancy Trends - Office, Industrial and Retail Properties 1/

Market		Measurement		03/31/08			12/31/07			09/30/07			06/30/07			03/31/07
Atlanta		Rentable Square Feet		5,289,000			5,289,000			5,199,000			5,514,000			5,514,000
		Occupancy		91.6	%		93.0	%		92.8	%		92.9	%		92.7	%
		Current Properties 2/		91.5	%		92.9	%		92.8	%		92.7	%		92.3	%
Columbia		Rentable Square Feet		—			—			253,000			253,000			253,000
		Occupancy		—			—			82.5	%		72.0	%		71.0	%
		Current Properties 2/		—			—			82.5	%		72.0	%		71.0	%
Greenville		Rentable Square Feet		897,000			897,000			897,000			1,109,000			1,109,000
		Occupancy		86.4	%		85.6	%		87.7	%		76.3	%		77.2	%
		Current Properties 2/		86.4	%		85.6	%		87.6	%		83.9	%		85.1	%
Kansas City 3/		Rentable Square Feet		2,229,000			2,215,000			2,216,000			2,215,000			2,224,000
		Occupancy		88.8	%		89.4	%		89.3	%		89.5	%		89.9	%
		Current Properties 2/		88.9	%		89.7	%		89.5	%		89.7	%		90.1	%
Memphis		Rentable Square Feet		1,276,000			1,276,000			1,276,000			1,276,000			1,276,000
		Occupancy		93.8	%		94.9	%		92.5	%		92.7	%		92.8	%
		Current Properties 2/		93.8	%		94.9	%		92.5	%		92.7	%		92.8	%
Nashville		Rentable Square Feet		3,184,000			3,184,000			2,875,000			2,875,000			2,875,000
		Occupancy		95.0	%		95.1	%		92.5	%		90.9	%		92.4	%
		Current Properties 2/		94.3	%		94.6	%		92.3	%		90.5	%		92.1	%
Orlando		Rentable Square Feet		317,000			218,000			218,000			218,000			218,000
		Occupancy		96.9	%		100.0	%		99.4	%		98.9	%		98.9	%
		Current Properties 2/		95.4	%		100.0	%		99.4	%		98.9	%		98.9	%
Piedmont Triad		Rentable Square Feet		5,358,000			5,328,000			5,234,000			5,235,000			5,195,000
		Occupancy		85.2	%		89.3	%		86.1	%		85.7	%		88.3	%
		Current Properties 2/		85.3	%		89.6	%		86.7	%		86.4	%		88.3	%
Raleigh		Rentable Square Feet		3,712,000			3,554,000			3,553,000			3,554,000			3,554,000
		Occupancy		90.3	%		91.5	%		88.1	%		86.5	%		86.6	%
		Current Properties 2/		90.7	%		91.5	%		88.1	%		86.5	%		86.6	%
Richmond		Rentable Square Feet		2,135,000			2,134,000			2,024,000			2,024,000			2,024,000
		Occupancy		93.5	%		92.5	%		91.8	%		90.0	%		89.8	%
		Current Properties 2/		93.4	%		92.3	%		91.6	%		89.9	%		89.6	%
Tampa		Rentable Square Feet		2,418,000			2,418,000			2,418,000			2,418,000			2,418,000
		Occupancy		94.7	%		95.0	%		95.6	%		96.5	%		98.2	%
		Current Properties 2/		94.7	%		95.0	%		95.6	%		96.5	%		98.2	%
Total 4/		Rentable Square Feet		26,815,000			26,513,000			26,163,000			26,691,000			26,660,000
		Occupancy		90.7	%		92.0	%		90.4	%		89.3	%		90.2	%
		Current Properties 2/		90.6	%		91.9	%		90.5	%		89.9	%		90.6	%

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

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

3/ Excludes 428,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

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

Highwoods Properties, Inc. 12 03/31/08

Leasing Statistics

Office Portfolio 1/

		Three Months Ended
		3/31/08 2/				12/31/07 3/				9/30/07 4/				6/30/07 5/				3/31/07 6/				Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)			126				126				121				166				130				134
Rentable square footage leased			602,049				920,405				1,125,050				865,958				726,080				847,908
Square footage of Renewal Deals			385,756				730,702				720,127				590,542				451,125				575,650
Renewed square footage (% of total)			64.1	%			79.4	%			64.0	%			68.2	%			62.1	%			67.9	%
New Leases square footage (% of total)			35.9	%			20.6	%			36.0	%			31.8	%			37.9	%			32.1	%
Weighted average per rentable square foot over the lease term:
Base rent		$	19.82			$	19.35			$	19.32			$	20.13			$	18.25			$	19.37
Tenant improvements			(1.10	)			(1.64	)			(0.93	)			(2.00	)			(1.70	)			(1.47	)
Leasing commissions 7/			(0.44	)			(0.62	)			(0.51	)			(0.63	)			(0.59	)			(0.56	)
Rent concessions			(0.13	)			(0.19	)			(0.40	)			(0.21	)			(0.06	)			(0.20	)
Effective rent			18.15				16.90				17.48				17.29				15.90				17.14
Expense stop			(5.90	)			(6.05	)			(6.31	)			(6.04	)			(5.06	)			(5.87	)
Equivalent effective net rent		$	12.25			$	10.85			$	11.17			$	11.25			$	10.84			$	11.27
Weighted average term in years			4.0				4.4				4.6				4.5				5.0				4.5
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases		$	3,504,078			$	7,696,269			$	6,513,821			$	8,589,754			$	7,604,253			$	6,781,635
Rentable square feet			602,049				920,405				1,125,050				865,958				726,080				847,908
Per rentable square foot		$	5.82			$	8.36			$	5.79			$	9.92			$	10.47			$	8.00
Leasing Commissions:
Total dollars committed under signed leases 7/		$	1,190,054			$	2,719,401			$	2,747,213			$	2,303,936			$	2,107,213			$	2,213,563
Rentable square feet			602,049				920,405				1,125,050				865,958				726,080				847,908
Per rentable square foot		$	1.98			$	2.95			$	2.44			$	2.66			$	2.90			$	2.61
Total:
Total dollars committed under signed leases		$	4,694,132			$	10,415,670			$	9,261,034			$	10,893,690			$	9,711,466			$	8,995,198
Rentable square feet			602,049				920,405				1,125,050				865,958				726,080				847,908
Per rentable square foot		$	7.80			$	11.32			$	8.23			$	12.58			$	13.38			$	10.61

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 84K square feet of leases that start in 2010 or later.

3/ Includes 91K square feet of leases that start in 2010 or later.

4/ Includes 94K square feet of leases that start in 2009 or later.

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

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

7/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 13 03/31/08

Leasing Statistics

Industrial Portfolio

		Three Months Ended
		3/31/08				12/31/07				9/30/07				6/30/07 1/				3/31/07				Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)			7				10				8				18				14				11
Rentable square footage leased			158,324				694,808				115,617				575,033				188,562				346,469
Square footage of Renewal Deals			150,170				538,836				73,793				489,312				175,579				285,538
Renewed square footage (% of total)			94.8	%			77.6	%			63.8	%			85.1	%			93.1	%			82.4	%
New Leases square footage (% of total)			5.2	%			22.4	%			36.2	%			14.9	%			6.9	%			17.6	%
Weighted average per rentable square foot over the lease term:
Base rent		$	5.95			$	4.03			$	7.53			$	3.82			$	4.63			$	5.19
Tenant improvements			(0.07	)			(0.04	)			(0.71	)			(0.23	)			(0.20	)			(0.25	)
Leasing commissions 2/			0.00				(0.05	)			(0.14	)			(0.06	)			(0.04	)			(0.06	)
Rent concessions			0.00				0.00				(0.10	)			(0.05	)			(0.02	)			(0.03	)
Effective rent			5.88				3.94				6.58				3.48				4.37				4.85
Expense stop			(0.10	)			(0.05	)			(1.04	)			(0.19	)			(0.24	)			(0.32	)
Equivalent effective net rent		$	5.78			$	3.89			$	5.54			$	3.29			$	4.13			$	4.53
Weighted average term in years			3.3				2.6				4.3				2.3				2.5				3.0
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases		$	50,537			$	40,925			$	424,840			$	528,135			$	142,102			$	237,308
Rentable square feet			158,324				694,808				115,617				575,033				188,562				346,469
Per rentable square foot		$	0.32			$	0.06			$	3.67			$	0.92			$	0.75			$	0.68
Leasing Commissions:
Total dollars committed under signed leases 2/		$	1,918			$	136,633			$	74,106			$	142,246			$	23,647			$	75,710
Rentable square feet			158,324				694,808				115,617				575,033				188,562				346,469
Per rentable square foot		$	0.01			$	0.20			$	0.64			$	0.25			$	0.13			$	0.22
Total:
Total dollars committed under signed leases		$	52,455			$	177,558			$	498,945			$	670,380			$	165,749			$	313,018
Rentable square feet			158,324				694,808				115,617				575,033				188,562				346,469
Per rentable square foot		$	0.33			$	0.26			$	4.32			$	1.17			$	0.88			$	0.90

1/ Includes 5K square feet of leases that start in 2009 or later.

2/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 14 03/31/08

Leasing Statistics

Retail Portfolio

		Three Months Ended
		3/31/08				12/31/07 1/				9/30/07				6/30/07				3/31/07 2/				Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)			7				12				8				8				9				9
Rentable square footage leased			30,942				44,509				24,629				14,721				41,357				31,232
Square footage of Renewal Deals			18,826				37,318				18,097				7,072				39,171				24,097
Renewed square footage (% of total)			60.8	%			83.8	%			73.5	%			48.0	%			94.7	%			77.2	%
New Leases square footage (% of total)			39.2	%			16.2	%			26.5	%			52.0	%			5.3	%			22.8	%
Weighted average per rentable square foot over the lease term:
Base rent		$	31.80			$	20.44			$	24.06			$	33.29			$	23.23			$	26.56
Tenant improvements			(0.40	)			(1.46	)			(1.17	)			(2.57	)			(0.12	)			(1.14	)
Leasing commissions 3/			(0.54	)			(0.26	)			(0.46	)			(1.25	)			(0.24	)			(0.55	)
Rent concessions			(1.47	)			0.00				0.00				0.00				0.00				(0.29	)
Effective rent			29.39				18.72				22.43				29.47				22.87				24.58
Expense stop			0.00				0.00				0.00				0.00				0.00				0.00
Equivalent effective net rent		$	29.39			$	18.72			$	22.43			$	29.47			$	22.87			$	24.58
Weighted average term in years			8.6				5.6				6.1				7.0				4.2				6.3
Capital Expenditures Related to Re-leased Space:
Tenant Improvements:
Total dollars committed under signed leases		$	161,500			$	509,473			$	260,407			$	335,337			$	27,507			$	258,845
Rentable square feet			30,942				44,509				24,629				14,721				41,357				31,232
Per rentable square foot		$	5.22			$	11.45			$	10.57			$	22.78			$	0.67			$	8.29
Leasing Commissions:
Total dollars committed under signed leases 3/		$	123,220			$	21,542			$	17,601			$	83,077			$	1,981			$	49,484
Rentable square feet			30,942				44,509				24,629				14,721				41,357				31,232
Per rentable square foot		$	3.98			$	0.48			$	0.71			$	5.64			$	0.05			$	1.58
Total:
Total dollars committed under signed leases		$	284,720			$	531,015			$	278,008			$	418,414			$	29,488			$	308,329
Rentable square feet			30,942				44,509				24,629				14,721				41,357				31,232
Per rentable square foot		$	9.20			$	11.93			$	11.29			$	28.42			$	0.71			$	9.87

1/ Includes 9K square feet of leases that start in 2010 or later.

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

3/ Excludes a full allocation of internal leasing costs.

Highwoods Properties, Inc. 15 03/31/08

Leasing Statistics by Market

For the Three Months Ended As of 3/31/08

Office Portfolio 1/
Market		Rentable Square Feet Leased		Average Term		GAAP Rental Rate			TI’s Per SF			Lease Commissions Per SF 2/ 3/
Raleigh		193,140		3.5		$	18.26		$	3.98		$	1.34
Richmond		124,956		4.3			19.46			5.22			2.10
Piedmont Triad		90,637		3.2			16.61			6.17			1.56
Nashville		61,827		4.6			20.64			4.83			1.62
Memphis		44,744		3.0			20.98			7.26			1.58
Tampa		42,259		6.3			31.83			11.62			5.05
Atlanta		33,769		4.7			18.45			11.66			1.94
Kansas City		10,717		2.3			19.43			1.30			2.75
		602,049		4.0		$	19.69		$	5.82		$	1.98
Industrial Portfolio
Market		Rentable Square Feet Leased		Average Term		GAAP Rental Rate			TI’s Per SF			Lease Commissions Per SF 2/ 3/
Piedmont Triad		95,534		2.6		$	5.19		$	0.50		$	—
Atlanta		62,790		4.4			7.10			0.05			—
		158,324		3.3		$	5.95		$	0.32		$	—
Retail Portfolio
Market		Rentable Square Feet Leased		Average Term		GAAP Rental Rate			TI’s Per SF			Lease Commissions Per SF 2/ 3/
Kansas City		30,942		8.6		$	30.33		$	5.22		$	3.98
		30,942		8.6		$	30.33		$	5.22		$	3.98

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 $766K.

Highwoods Properties, Inc. 16 03/31/08

Rental Rate Comparisons by Market

For the Three Months Ended As of 3/31/08

Office Portfolio 1/
Market		Rentable Square Feet Leased				Current Rent				Previous Rent				Percentage Change Rent
Raleigh			193,140			$	18.26			$	16.15				13.0	%
Richmond			124,956				19.46				18.20				6.9	%
Piedmont Triad			90,637				16.61				16.51				0.6	%
Nashville			61,827				20.64				18.85				9.5	%
Memphis			44,744				20.98				18.67				12.4	%
Tampa			42,259				31.83				24.43				30.3	%
Atlanta			33,769				18.45				18.39				0.3	%
Kansas City			10,717				19.43				18.66				4.1	%
GAAP Rent Growth			602,049			$	19.69			$	17.82				10.5	%
Cash Rent Growth			602,049			$	18.89			$	19.08				-1.0	%
Industrial Portfolio
Market		Rentable Square Feet Leased				Current Rent				Previous Rent				Percentage Change Rent
Piedmont Triad			95,534			$	5.19			$	4.27				21.8	%
Atlanta			62,790				7.10				6.84				3.7	%
GAAP Rent Growth			158,324			$	5.95			$	5.29				12.5	%
Cash Rent Growth			158,324			$	5.90			$	5.79				2.0	%
Retail Portfolio
Market		Rentable Square Feet Leased				Current Rent				Previous Rent 2/				Percentage Change Rent
Kansas City			30,942			$	30.33			$	27.33				11.0	%
GAAP Rent Growth			30,942			$	30.33			$	27.33				11.0	%
Cash Rent Growth			30,942			$	31.15			$	26.49				17.6	%
Average Cash Rental Rates for All In Place Leases at: 1/ 3/
Type		3/31/08				3/31/07				3/31/06				3/31/05						3/31/04
Office		$	19.80			$	18.99			$	18.04			$	17.53					$	17.54
Industrial			5.27				5.11				5.08				4.73						4.61
Retail 2/			32.64				30.04				27.98				27.01						24.27
Weighted average rate		$	16.93			$	16.19			$	15.45			$	15.08					$	14.77
Annual % growth rate			4.6	%			4.8	%			2.5	%			2.1	%

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 percentage rent.

3/ Average cash rental rates represent March, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12 and divided by the related leased square feet.

Highwoods Properties, Inc. 17 03/31/08

Lease Expirations

March 31, 2008

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/
2008 /3		1,579,777		8.9	%		$	32,432		$	20.53		9.2	%
2009		2,268,764		12.7	%			45,521			20.06		12.9	%
2010		2,377,108		13.3	%			50,607			21.29		14.4	%
2011		2,851,509		16.1	%			55,148			19.34		15.6	%
2012		2,252,536		12.6	%			46,290			20.55		13.1	%
2013		1,627,019		9.1	%			28,809			17.71		8.2	%
2014		1,113,573		6.3	%			22,794			20.47		6.5	%
2015		958,777		5.4	%			19,347			20.18		5.5	%
2016		748,170		4.2	%			13,747			18.37		3.9	%
2017		934,561		5.2	%			18,114			19.38		5.1	%
2018 and thereafter		1,098,525		6.2	%			19,818			18.04		5.6	%
		17,810,319		100.0	%		$	352,627		$	19.80		100.0	%
Industrial:
2008 /4		509,079		8.4	%		$	2,956		$	5.81		9.3	%
2009		1,188,195		19.8	%			6,442			5.42		20.3	%
2010		828,212		13.7	%			4,390			5.30		13.8	%
2011		890,326		14.8	%			4,376			4.92		13.8	%
2012		421,419		7.0	%			2,459			5.84		7.7	%
2013		483,719		8.0	%			2,873			5.94		9.0	%
2014		414,465		6.9	%			2,275			5.49		7.2	%
2015		271,382		4.5	%			994			3.66		3.1	%
2016		264,597		4.4	%			1,040			3.93		3.3	%
2017		149,600		2.5	%			724			4.84		2.3	%
2018 and thereafter		604,640		10.0	%			3,247			5.37		10.2	%
		6,025,634		100.0	%		$	31,776		$	5.27		100.0	%

1/ Annualized Cash Revenue is March, 2008 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 144,000 square feet of leases that are on a month to month basis or 0.8% of total annualized revenue.

4/ Includes 81,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

Note: 2008 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. 18 03/31/08

Lease Expirations

March 31, 2008

(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:
2008 2/		75,041		6.2	%		$	1,969		$	26.24		4.9	%
2009		150,566		12.3	%			4,765			31.65		12.0	%
2010		89,227		7.3	%			3,638			40.77		9.1	%
2011		58,702		4.8	%			1,967			33.51		4.9	%
2012		165,254		13.5	%			5,250			31.77		13.2	%
2013		69,334		5.7	%			2,723			39.27		6.8	%
2014		97,042		8.0	%			2,057			21.20		5.2	%
2015		137,405		11.3	%			4,684			34.09		11.8	%
2016		65,526		5.4	%			2,745			41.89		6.9	%
2017		107,946		8.8	%			2,841			26.32		7.1	%
2018 and thereafter		203,941		16.7	%			7,186			35.24		18.1	%
		1,219,984		100.0	%		$	39,825		$	32.64		100.0	%
Total:
2008 3/ 4/		2,163,897		8.6	%		$	37,357		$	17.26		8.8	%
2009		3,607,525		14.4	%			56,728			15.72		13.4	%
2010		3,294,547		13.1	%			58,635			17.80		13.8	%
2011		3,800,537		15.2	%			61,491			16.18		14.6	%
2012		2,839,209		11.3	%			53,999			19.02		12.7	%
2013		2,180,072		8.7	%			34,405			15.78		8.1	%
2014		1,625,080		6.5	%			27,126			16.69		6.4	%
2015		1,367,564		5.5	%			25,025			18.30		5.9	%
2016		1,078,293		4.3	%			17,532			16.26		4.1	%
2017		1,192,107		4.8	%			21,679			18.19		5.1	%
2018 and thereafter		1,907,106		7.6	%			30,251			15.86		7.1	%
		25,055,937		100.0	%		$	424,228		$	16.93		100.0	%

1/ Annualized Cash Revenue is March, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/ Includes 18,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

3/ Includes 243,000 square feet of leases that are on a month to month basis or 1.0% 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: 2008 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.

Highwoods Properties, Inc. 19 03/31/08

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands

						Three Months Ended
						6/30/08 2/				9/30/08				12/31/08				3/31/09				Total
Atlanta		RSF					61,645				144,708				12,991				18,418				237,762
		% of Total Office RSF					0.3	%			0.8	%			0.1	%			0.1	%			1.3	%
		Annualized Cash Revenue		3/		$	1,406			$	2,774			$	211			$	366			$	4,757
		% of Total Office Annl Cash Rev					0.4	%			0.8	%			0.1	%			0.1	%			1.3	%
Greenville		RSF					120				19,763				0				19,998				39,881
		% of Total Office RSF					0.0	%			0.1	%			0.0	%			0.1	%			0.2	%
		Annualized Cash Revenue		3/		$	2			$	383			$	—			$	333			$	718
		% of Total Office Annl Cash Rev					0.0	%			0.1	%			0.0	%			0.1	%			0.2	%
Kansas City		RSF					29,553				18,521				27,321				36,925				112,320
		% of Total Office RSF					0.2	%			0.1	%			0.2	%			0.2	%			0.6	%
		Annualized Cash Revenue		3/		$	644			$	397			$	522			$	756			$	2,319
		% of Total Office Annl Cash Rev					0.2	%			0.1	%			0.1	%			0.2	%			0.7	%
Memphis		RSF					50,227				15,681				64,524				70,654				201,086
		% of Total Office RSF					0.3	%			0.1	%			0.4	%			0.4	%			1.1	%
		Annualized Cash Revenue		3/		$	1,094			$	314			$	1,401			$	1,586			$	4,395
		% of Total Office Annl Cash Rev					0.3	%			0.1	%			0.4	%			0.4	%			1.2	%
Nashville		RSF					51,441				56,794				30,386				123,745				262,366
		% of Total Office RSF					0.3	%			0.3	%			0.2	%			0.7	%			1.5	%
		Annualized Cash Revenue		3/		$	996			$	1,107			$	677			$	2,437			$	5,217
		% of Total Office Annl Cash Rev					0.3	%			0.3	%			0.2	%			0.7	%			1.5	%
Orlando		RSF					0				0				0				0				0
		% of Total Office RSF					0.0	%			0.0	%			0.0	%			0.0	%			0.0	%
		Annualized Cash Revenue		3/		$	—			$	—			$	—			$	—			$	—
		% of Total Office Annl Cash Rev					0.0	%			0.0	%			0.0	%			0.0	%			0.0	%
Piedmont Triad		RSF					149,261				51,715				16,079				31,471				248,526
		% of Total Office RSF					0.8	%			0.3	%			0.1	%			0.2	%			1.4	%
		Annualized Cash Revenue		3/		$	2,746			$	1,017			$	273			$	616			$	4,652
		% of Total Office Annl Cash Rev					0.8	%			0.3	%			0.1	%			0.2	%			1.3	%
Raleigh		RSF					183,639				217,328				53,827				176,760				631,554
		% of Total Office RSF					1.0	%			1.2	%			0.3	%			1.0	%			3.5	%
		Annualized Cash Revenue		3/		$	3,739			$	4,967			$	1,039			$	3,581			$	13,326
		% of Total Office Annl Cash Rev					1.1	%			1.4	%			0.3	%			1.0	%			3.8	%
Richmond		RSF					69,410				92,724				40,716				84,777				287,627
		% of Total Office RSF					0.4	%			0.5	%			0.2	%			0.5	%			1.6	%
		Annualized Cash Revenue		3/		$	1,271			$	1,840			$	789			$	1,712			$	5,612
		% of Total Office Annl Cash Rev					0.4	%			0.5	%			0.2	%			0.5	%			1.6	%
Tampa		RSF					38,985				59,512				13,443				246,591				358,531
		% of Total Office RSF					0.2	%			0.3	%			0.1	%			1.4	%			2.0	%
		Annualized Cash Revenue		3/		$	980			$	1,241			$	334			$	5,528			$	8,083
		% of Total Office Annl Cash Rev					0.3	%			0.4	%			0.1	%			1.6	%			2.3	%
Other		RSF					9,463				0				0				6,166				15,629
		% of Total Office RSF					0.1	%			0.0	%			0.0	%			0.0	%			0.1	%
		Annualized Cash Revenue		3/		$	270			$	—			$	—			$	121			$	391
		% of Total Office Annl Cash Rev					0.1	%			0.0	%			0.0	%			0.0	%			0.1	%
Total		RSF					643,744				676,746				259,287				815,505				2,395,282
		% of Total Office RSF					3.6	%			3.8	%			1.5	%			4.6	%			13.4	%
		Annualized Cash Revenue		3/		$	13,148			$	14,040			$	5,246			$	17,036			$	49,470
		% of Total Office Annl Cash Rev					3.7	%			4.0	%			1.5	%			4.8	%			14.0	%

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

2/ Includes 144,000 square feet of leases that are on a month to month basis or 0.8% of total annualized revenue.

3/ Annualized Cash Revenue is March, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 20 03/31/08

Industrial Lease Expirations by Market by Quarter

Dollars in thousands

						Three Months Ended
						6/30/08 1/				9/30/08				12/31/08				3/31/09				Total
Atlanta		RSF					223,335				115,423				0				134,212				472,970
		% of Total Industrial RSF					3.7	%			1.9	%			0.0	%			2.2	%			7.8	%
		Annualized Cash Revenue		2/		$	1,245			$	668			$	—			$	864			$	2,777
		% of Total Industrial Annl Cash Rev					4.0	%			2.1	%			0.0	%			2.7	%			8.8	%
Kansas City		RSF					0				0				0				1,756				1,756
		% of Total Industrial RSF					0.0	%			0.0	%			0.0	%			0.0	%			0.0	%
		Annualized Cash Revenue		2/		$	—			$	—			$	—			$	20			$	20
		% of Total Industrial Annl Cash Rev					0.0	%			0.0	%			0.0	%			0.1	%			0.1	%
Piedmont Triad		RSF					81,662				8,899				79,760				285,688				456,009
		% of Total Industrial RSF					1.4	%			0.1	%			1.3	%			4.7	%			7.6	%
		Annualized Cash Revenue		2/		$	439			$	88			$	516			$	1,425			$	2,468
		% of Total Industrial Annl Cash Rev					1.4	%			0.3	%			1.6	%			4.5	%			7.8	%
Total		RSF					304,997				124,322				79,760				421,656				930,735
		% of Total Industrial RSF					5.1	%			2.1	%			1.3	%			7.0	%			15.4	%
		Annualized Cash Revenue		2/		$	1,684			$	756			$	516			$	2,309			$	5,265
		% of Total Industrial Annl Cash Rev					5.3	%			2.4	%			1.6	%			7.3	%			16.6	%

1/ Includes 81,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/ Annualized Cash Revenue is March, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 21 03/31/08

Office Lease Expirations by Market by Year 1/

Dollars in thousands

						2008 2/				2009				2010				2011				Thereafter
Atlanta		RSF					219,344				136,645				85,097				309,730				1,438,804
		% of Total Office RSF					1.2	%			0.8	%			0.5	%			1.7	%			8.1	%
		Annualized Cash Revenue		3/		$	4,391			$	2,112			$	1,679			$	6,551			$	26,873
		% of Total Office Annl Cash Rev					1.2	%			0.6	%			0.5	%			1.9	%			7.6	%
Greenville		RSF					19,883				60,122				55,528				238,161				402,137
		% of Total Office RSF					0.1	%			0.3	%			0.3	%			1.3	%			2.3	%
		Annualized Cash Revenue		3/		$	385			$	1,013			$	938			$	4,591			$	6,598
		% of Total Office Annl Cash Rev					0.1	%			0.3	%			0.3	%			1.3	%			1.9	%
Kansas City		RSF					75,395				108,273				127,031				96,009				349,672
		% of Total Office RSF					0.4	%			0.6	%			0.7	%			0.5	%			2.0	%
		Annualized Cash Revenue		3/		$	1,563			$	2,159			$	3,380			$	2,224			$	8,526
		% of Total Office Annl Cash Rev					0.4	%			0.6	%			1.0	%			0.6	%			2.4	%
Memphis		RSF					130,432				174,360				183,752				159,207				549,257
		% of Total Office RSF					0.7	%			1.0	%			1.0	%			0.9	%			3.1	%
		Annualized Cash Revenue		3/		$	2,809			$	3,521			$	3,861			$	3,144			$	10,779
		% of Total Office Annl Cash Rev					0.8	%			1.0	%			1.1	%			0.9	%			3.1	%
Nashville		RSF					138,621				589,639				477,255				485,259				1,334,691
		% of Total Office RSF					0.8	%			3.3	%			2.7	%			2.7	%			7.5	%
		Annualized Cash Revenue		3/		$	2,781			$	12,051			$	9,706			$	9,415			$	27,550
		% of Total Office Annl Cash Rev					0.8	%			3.4	%			2.8	%			2.7	%			7.8	%
Orlando		RSF					0				11,482				80,521				106,313				108,235
		% of Total Office RSF					0.0	%			0.1	%			0.5	%			0.6	%			0.6	%
		Annualized Cash Revenue		3/		$	—			$	266			$	1,848			$	2,331			$	1,656
		% of Total Office Annl Cash Rev					0.0	%			0.1	%			0.5	%			0.7	%			0.5	%
Piedmont Triad		RSF					217,055				147,058				234,100				378,048				722,934
		% of Total Office RSF					1.2	%			0.8	%			1.3	%			2.1	%			4.1	%
		Annualized Cash Revenue		3/		$	4,035			$	2,426			$	3,734			$	5,399			$	11,409
		% of Total Office Annl Cash Rev					1.1	%			0.7	%			1.1	%			1.5	%			3.2	%
Raleigh		RSF					454,794				438,888				361,816				587,992				1,527,654
		% of Total Office RSF					2.6	%			2.5	%			2.0	%			3.3	%			8.6	%
		Annualized Cash Revenue		3/		$	9,745			$	9,010			$	6,960			$	11,988			$	27,616
		% of Total Office Annl Cash Rev					2.8	%			2.6	%			2.0	%			3.4	%			7.8	%
Richmond		RSF					202,850				201,315				245,058				396,291				988,845
		% of Total Office RSF					1.1	%			1.1	%			1.4	%			2.2	%			5.6	%
		Annualized Cash Revenue		3/		$	3,900			$	3,949			$	4,655			$	7,344			$	17,728
		% of Total Office Annl Cash Rev					1.1	%			1.1	%			1.3	%			2.1	%			5.0	%
Tampa		RSF					111,940				394,197				495,969				92,919				1,291,615
		% of Total Office RSF					0.6	%			2.2	%			2.8	%			0.5	%			7.3	%
		Annualized Cash Revenue		3/		$	2,554			$	8,882			$	13,060			$	2,105			$	29,614
		% of Total Office Annl Cash Rev					0.7	%			2.5	%			3.7	%			0.6	%			8.4	%
Other		RSF					9,463				6,785				30,981				1,580				19,317
		% of Total Office RSF					0.1	%			0.0	%			0.2	%			0.0	%			0.1	%
		Annualized Cash Revenue		3/		$	270			$	131			$	786			$	55			$	571
		% of Total Office Annl Cash Rev					0.1	%			0.0	%			0.2	%			0.0	%			0.2	%
Total		RSF					1,579,777				2,268,764				2,377,108				2,851,509				8,733,161
		% of Total Office RSF					8.9	%			12.7	%			13.3	%			16.0	%			49.0	%
		Annualized Cash Revenue		3/		$	32,433			$	45,520			$	50,607			$	55,147			$	168,920
		% of Total Office Annl Cash Rev					9.2	%			12.9	%			14.3	%			15.6	%			48.0	%

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

2/ Includes 144,000 square feet of leases that are on a month to month basis or 0.8% of total annualized revenue.

3/ Annualized Cash Revenue is March, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 22 03/31/08

Industrial Lease Expirations by Market by Year

Dollars in thousands

						2008 1/				2009				2010				2011				Thereafter
Atlanta		RSF					338,758				333,368				316,221				498,719				1,398,951
		% of Total Industrial RSF					5.6	%			5.5	%			5.2	%			8.3	%			23.2	%
		Annualized Cash Revenue		2/		$	1,912			$	2,202			$	1,839			$	2,821			$	7,447
		% of Total Industrial Annl Cash Rev					6.0	%			6.9	%			5.8	%			8.9	%			23.4	%
Kansas City		RSF					0				1,756				0				0				0
		% of Total Industrial RSF					0.0	%			0.0	%			0.0	%			0.0	%			0.0	%
		Annualized Cash Revenue		2/		$	—			$	20			$	—			$	—			$	—
		% of Total Industrial Annl Cash Rev					0.0	%			0.1	%			0.0	%			0.0	%			0.0	%
Piedmont Triad		RSF					170,321				853,071				511,991				391,607				1,210,871
		% of Total Industrial RSF					2.8	%			14.2	%			8.5	%			6.5	%			20.1	%
		Annualized Cash Revenue		2/		$	1,043			$	4,220			$	2,551			$	1,555			$	6,166
		% of Total Industrial Annl Cash Rev					3.3	%			13.3	%			8.0	%			4.9	%			19.4	%
Total		RSF					509,079				1,188,195				828,212				890,326				2,609,822
		% of Total Industrial RSF					8.4	%			19.7	%			13.7	%			14.8	%			43.3	%
		Annualized Cash Revenue		2/		$	2,955			$	6,442			$	4,390			$	4,376			$	13,613
		% of Total Industrial Annl Cash Rev					9.3	%			20.3	%			13.8	%			13.8	%			42.8	%

1/ Includes 81,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/ Annualized Cash Revenue is March, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 23 03/31/08

Customer Diversification 1/

March 31, 2008

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		1,604,241		$	30,657		7.23	%		8.1
AT&T		879,690			15,038		3.54	%		2.9
Price Waterhouse Coopers		358,611			9,699		2.29	%		2.1
State of Georgia		367,986			7,678		1.81	%		2.3
Healthways		282,668			6,275		1.48	%		13.6
T-Mobile USA		207,517			5,639		1.33	%		5.7
Metropolitan Life Insurance		267,787			5,362		1.26	%		9.7
Lockton Companies		156,255			4,275		1.01	%		6.9
Volvo		262,940			3,995		0.94	%		4.9
Syniverse Technologies		198,750			3,949		0.93	%		8.6
BB&T		238,595			3,839		0.90	%		4.7
Fluor Enterprises		209,474			3,729		0.88	%		3.9
SCI Services 3/		162,784			3,620		0.85	%		9.3
Vanderbilt University		144,161			2,889		0.68	%		7.5
Jacobs Engineering Group		181,794			2,858		0.67	%		7.5
Lifepoint Corporate Services		129,217			2,593		0.61	%		3.3
Icon Clinical Research		110,909			2,475		0.58	%		5.4
Wachovia		109,553			2,465		0.58	%		2.9
Talecris Biotherapeutics		122,870			2,372		0.56	%		4.3
HCA Physician Services		130,599			2,287		0.54	%		5.8
		6,126,401		$	121,694		28.67	%		6.1

By Industry
Category		Percent of Annualized Cash Revenue 2/
Professional, Scientific, and Technical Services		20.0	%
Finance/Banking		9.9	%
Government/Public Administration		9.6	%
Insurance		9.1	%
Retail Trade		7.7	%
Health Care and Social Assistance		6.5	%
Manufacturing		6.4	%
Wholesale Trade		6.1	%
Telecommunication		5.8	%
Real Estate Rental and Leasing		4.2	%
Information		3.3	%
Administrative and Support Services		2.9	%
Accommodation and Food Services		2.7	%
Transportation and Warehousing		2.3	%
Other Services (except Public Administration)		2.1	%
Educational Services		1.5	%
		100.0	%

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

2/ Annualized Cash Revenue is March, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

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

Highwoods Properties, Inc. 24 03/31/08

Same Property Performance 1/

Dollars and Square Feet in thousands

		Three months ended March 31,								Percentage Change
		2008				2007
Rental revenues 2/		$	101,143			$	98,643			2.5	%
Operating expenses			(36,784	)			(36,020	)		-2.1	%
			64,359				62,623			2.8	%
Straight line rent			519				691			-24.9	%
			64,878				63,314			2.5	%
Lease termination fees			1,900				38			4900.0	%
Net operating income		$	66,778			$	63,352			5.4	%
Average occupancy			90.7	%			90.4	%		0.3	%
Rentable square feet			25,597				25,597

		First Quarter: 2008 vs 2007
Market		NOI 3/ Percentage Change			Occupancy Percentage Change
Atlanta		-0.1	%		-0.2	%
Greenville		8.5	%		2.8	%
Kansas City		-5.4	%		-1.3	%
Memphis		3.3	%		2.4	%
Nashville		7.5	%		3.7	%
Orlando		-5.8	%		-3.5	%
Piedmont Triad		-1.9	%		-3.3	%
Raleigh		6.0	%		4.9	%
Richmond		7.0	%		4.2	%
Tampa		2.5	%		-3.6	%
		2.5	%		0.3	%

1/ Excludes properties held for sale at 3/31/08 which constituted 131,000 rentable square feet.

2/ Excludes straight line rents and lease termination fees.

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

Highwoods Properties, Inc. 25 03/31/08

Disposition Activity

Dollars in thousands

Name		Market		Type 1/		Date Sold		Square Footage		Occupancy			Gross Sales Price
First quarter 2008:
Parkway Medical		Kansas City		O		02/15/08		30,000		81.4	%		$	6,050
First quarter totals								30,000		81.4	%		$	6,050

1/ The letter “O” represents Office.

Highwoods Properties, Inc. 26 03/31/08

Development Activity

Dollars in thousands

Property In - Process		Market		Type 1/		Rentable Square Feet		Anticipated Total Investment			Investment @ 03/31/08				Pre Leased %			Estimated Completion Date			Estimated Stabilization Date
Office:
FAA		Atlanta		O		100,000		$	18,071		$	2,605			100	%		2Q 09			2Q 09
Jackson FBI		Jackson, MS		O		110,000			31,713			3,950			100	%		1Q 09			1Q 09
Comcast		Memphis		O		62,000			9,449			5,740			100	%		3Q 08			3Q 08
Cool Springs IV		Nashville		O		153,000			27,597			14,721			6	%		3Q 08			1Q 10
RBC Plaza 2/		Raleigh		O		292,000			76,056			54,937			65	%		4Q 08			4Q 09
Total or Weighted Average						717,000		$	162,886		$	81,953			66	%
											$	Weighted	%		68	%
For Sale Development:
RBC Plaza Condominiums 3/ 4/		Raleigh		RC		139 Units		$	42,380		$	19,491			139 Contracts			4Q 08			2Q 09
								$	42,380		$	19,491
Industrial:
River Point IV		Atlanta		I		200,000		$	10,435		$	1,101			50	%		1Q 09			2Q 10
						200,000		$	10,435		$	1,101			50	%
In-Process Total or Weighted Average 4/						917,000		$	215,701		$	102,545			62	%
											$	Weighted	%		67	%
Completed Not Stabilized 5/
Office:
Centregreen V		Raleigh		O		98,000		$	15,662		$	12,132			51	%		1Q 08			3Q 09
Glenlake VI		Raleigh		O		122,000			24,448			18,864			57	%		1Q 08			3Q 09
North Shore Commons II		Richmond		O		96,000			14,855			12,830			59	%		1Q 07			2Q 08
Highwoods Baycenter I		Tampa		O		208,000			42,024			39,877			85	%		3Q 07			4Q 08
Total or Weighted Average						524,000		$	96,989		$	83,703			67	%
											$	Weighted	%		68	%
Industrial:
Newpoint V		Atlanta		I		263,000		$	12,947		$	12,290			88	%		2Q 07			2Q 08
Enterprise II		Piedmont Triad		I		418,000			17,222			16,110			72	%		4Q 06			4Q 08
						681,000		$	30,169		$	28,400			78	%
											$	Weighted	%		79	%
Completed Not Stabilized Total or Weighted Average						1,205,000		$	127,158		$	112,103			73	%
											$	Weighted	%		71	%
Grand Total or Weighted Average						2,122,000		$	342,859		$	214,648			69	%
											$	Weighted	%		68	%
Placed in Service
Property		Market		Type 1/		Rentable Square Feet		Anticipated Total Investment			Investment @ 03/31/08				Pre Leased %			Occ %			In-Service Date
Cordoba 5/		Kansas City		O		46,000		$	6,700		$	6,647			84	%		84	%		3/1/08
Glenlake IV		Raleigh		O		158,000			27,311			25,264			81	%		81	%		3/1/08
Berkshire		Orlando		O		99,000			15,096			15,006			100	%		100	%		2/1/08
hhgregg ®		Piedmont Triad		R		30,000			5,125			4,748			100	%		100	%		3/1/08
Total or Weighted Average						333,000		$	54,232		$	51,665			89	%		89	%
											$	Weighted	%		88	%		88	%

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

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

3/ In January 2007 the Company executed a Joint Venture agreement for this development. The Company has a 93% interest and consolidates this Joint Venture.

The investment amounts shown represent the Company’s 93% share.

4/ As of 3/31/08, all units are under contract. Condo units and numbers are not part of In-Process Total or Weighted Average for SF & Pre-Leasing percentage.

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

Highwoods Properties, Inc. 27 03/31/08

Development Land

March 31, 2008

Dollars in thousands

Market		Usable Acres		Total Estimated Market Value
Atlanta		224		$	25,101
Raleigh		190			43,524
Greensboro		47			12,484
Baltimore		39			10,300
Richmond		33			8,289
Tampa		26			15,877
Nashville		16			7,859
Memphis		15			3,620
Orlando		15			16,031
Winston-Salem		10			2,138
Kansas City		1			2,100
Total 1/2/		616		$	147,323

1/ Developable square footage on core land holdings, which constitute 475 of the total 616 acres, is approximately 4.9 million of office space and 2.5 million of industrial space.

2/ Includes 40 acres ($10.7 million based on expected gross proceeds) included in property held for sale at March 31, 2008.

Highwoods Properties, Inc. 28 03/31/08

Acquisition Activity

Dollars in thousands

Name		Market		Type		Date Acquired		Square Footage		Total Cost
First quarter 2008:
None

Highwoods Properties, Inc. 29 03/31/08

Unconsolidated Joint Ventures Assets, Debt and Liabilities

March 31, 2008

Dollars in thousands

							Venture’s Books
Joint Venture		Type 1/		Own %			Total Assets			Debt			Total Liabilities
Board of Trade Investment Co.		O		49.0	%		$	7,581		$	—		$	829
Dallas County Partners I, LP		O/ I		50.0	%			32,167			49,093			51,950
Dallas County Partners II, LP		O		50.0	%			14,300			16,194			17,414
Dallas County Partners III, LP		O		50.0	%			19			—			32
Fountain Three		O/I R		50.0	%			24,981			32,796			34,576
RRHWoods, LLC		O/ M		50.0	%			86,587			81,426			85,090
Kessinger/Hunter, LLC		—		26.5	%			7,401			—			253
4600 Madison Associates, LP		O		12.5	%			18,170			13,332			13,852
Highwoods DLF 98/29, LP		O		22.8	%			150,554			75,518			80,308
Highwoods DLF 97/26 DLF 99/32, LP		O		42.9	%			101,967			55,580			59,107
Concourse Center Associates, LLC		O		50.0	%			13,461			8,855			9,059
Plaza Colonnade, LLC		O/R		50.0	%			72,254			66,235			67,212
Highwoods KC Glenridge Office, LP		O		40.0	%			22,097			16,500			17,148
Highwoods KC Glenridge Land, LP		O		40.0	%			779			—			102
Highwoods KC Orlando, LLC		O		40.0	%			204,616			141,357			149,315
Highwoods DLF Forum, LLC		O		25.0	%			2,002			—			—
Total							$	758,936		$	556,886		$	586,247
							Highwoods’ Share of Joint Venture
Joint Venture		Type 1/		Own %			Total Assets			Debt			Total Liabilities
Board of Trade Investment Co.		O		49.00	%		$	3,715		$	—		$	406
Dallas County Partners I, LP		O/ I		50.00	%			16,084			24,547			25,975
Dallas County Partners II, LP		O		50.00	%			7,150			8,097			8,707
Dallas County Partners III, LP		O		50.00	%			10			—			16
Fountain Three		O/I /R		50.00	%			12,491			16,398			17,288
RRHWoods, LLC		O/ M		50.00	%			43,294			40,713			42,545
Kessinger/Hunter, LLC		—		26.50	%			1,961			—			67
4600 Madison Associates, LP		O		12.50	%			2,271			1,667			1,732
Highwoods DLF 98/29, LP		O		22.81	%			34,341			17,226			18,318
Highwoods DLF 97/26 DLF 99/32, LP		O		42.93	%			43,774			23,860			25,375
Concourse Center Associates, LLC		O		50.00	%			6,731			4,428			4,530
Plaza Colonnade, LLC		O/R		50.00	%			36,127			33,118			33,606
Highwoods KC Glenridge Office, LP		O		40.00	%			8,839			6,600			6,859
Highwoods KC Glenridge Land, LP		O		40.00	%			312			—			41
Highwoods KC Orlando, LLC		O		40.00	%			81,846			56,543			59,726
Highwoods DLF Forum, LLC		O		25.0	%			501			—			—
Total 2/							$	299,447		$	233,197		$	245,191

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

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

Highwoods Properties, Inc. 30 03/31/08

Unconsolidated Joint Ventures Income

For the Three Months Ended March 31, 2008

Dollars in thousands

					Venture’s Books
Joint Venture		Own %			Revenue			Operating Exp			Interest			Depr/Amort			Net Income/ (Loss)
Board of Trade Investment Co.		49.00	%		$	581		$	407		$	—		$	145		$	29
Dallas County Partners I, LP		50.00	%			2,876			1,744			776			472			(116	)
Dallas County Partners II, LP		50.00	%			1,803			815			420			216			352
Dallas County Partners III, LP		50.00	%			48			58			—			1			(11	)
Fountain Three		50.00	%			2,397			1,022			533			485			357
RRHWoods, LLC		50.00	%			4,465			2,604			975			1,023			(137	)
Kessinger/Hunter, LLC		26.50	%			4,118			3,598			—			151			369
4600 Madison Associates, LP		12.50	%			1,245			590			233			395			27
Highwoods DLF 98/29, LP		22.80	%			4,705			1,529			1,275			1,276			625
Highwoods DLF 97/26 DLF 99/32, LP		42.93	%			4,219			1,382			1,076			805			956
Concourse Center Associates, LLC		50.00	%			491			129			161			78			123
Plaza Colonnade, LLC		50.00	%			2,478			921			967			547			43
Highwoods KC Glenridge Office, LP		40.00	%			827			374			209			154			90
Highwoods KC Glenridge Land, LP		40.00	%			—			2			—			—			(2	)
Highwoods KC Orlando, LLC		40.00	%			8,273			3,256			1,862			1,905			1,250
Highwoods DLF Forum, LLC		25.00	%			—			—			—			—			—
Total					$	38,526		$	18,431		$	8,487		$	7,653		$	3,955
					Highwoods’ Share of Joint Venture
Joint Venture		Own %			Revenue			Operating Exp			Interest			Depr/Amort			Net Income/ (Loss)
Board of Trade Investment Co.		49.00	%		$	285		$	199		$	—		$	71		$	15
Dallas County Partners I, LP		50.00	%			1,438			872			388			236			(58	)
Dallas County Partners II, LP		50.00	%			902			408			210			108			176
Dallas County Partners III, LP		50.00	%			24			29			—			1			(6	)
Fountain Three		50.00	%			1,199			511			267			243			178
RRHWoods, LLC		50.00	%			2,233			1,302			488			512			(69	)
Kessinger/Hunter, LLC		26.50	%			1,091			953			—			40			98
4600 Madison Associates, LP		12.50	%			156			74			29			49			4
Highwoods DLF 98/29, LP		22.81	%			1,073			349			291			291			142
Highwoods DLF 97/26 DLF 99/32, LP		42.93	%			1,811			593			462			346			410
Concourse Center Associates, LLC		50.00	%			246			65			81			39			61
Plaza Colonnade, LLC		50.00	%			1,239			461			484			274			20
Highwoods KC Glenridge Office, LP		40.00	%			331			150			84			62			35
Highwoods KC Glenridge Land, LP		40.00	%			—			1			—			—			(1	)
Highwoods KC Orlando, LLC		40.00	%			3,309			1,302			745			762			500
Highwoods DLF Forum, LLC		25.00	%			—			—			—			—			—
Total 1/ 2/					$	15,337		$	7,269		$	3,529		$	3,034		$	1,505

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

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

Highwoods Properties, Inc. 31 03/31/08

Joint Ventures Long-Term Debt Detail 1/

Dollars in thousands

Joint Venture		Own %			Lender		Interest Rate			Maturity Date		Loan Balance 03/31/08
Dallas County Partners I, LP		50.0	%		Massachusetts Mutual Life Ins. Co.		6.19	%		Aug-18		$	41,857
Dallas County Partners I, LP		50.0	%		Thrivent		8.45	%		Aug-10			1,577
Dallas County Partners I, LP		50.0	%		Regions		6.30	%		Jun-14			3,465
Dallas County Partners I, LP		50.0	%		Sun Life		5.92	%		Feb-16			1,036
Dallas County Partners I, LP		50.0	%		Bankers Trust		8.00	%		Jul-11			1,158
							6.31	%					49,093
Dallas County Partners II, LP		50.0	%		Principal Life Insurance Company		10.19	%		Jun-13			16,194
Fountain Three		50.0	%		Massachusetts Mutual Life Ins. Co.		6.19	%		Aug-18			16,707
Fountain Three		50.0	%		Thrivent		6.01	%		Oct-10			3,692
Fountain Three		50.0	%		Thrivent		6.01	%		Apr-09			3,692
Fountain Three		50.0	%		Lehman Brothers		8.02	%		Jul-09			3,479
Fountain Three		50.0	%		Thrivent		7.00	%		Sep-12			5,226
							6.47	%					32,796
RRHWoods, LLC		50.0	%		Industrial Revenue Bonds /2		2.75	%		Nov-15			23,000
RRHWoods, LLC		50.0	%		Bank of America		6.80	%		Sep-12			26,365
RRHWoods, LLC		50.0	%		Industrial Revenue Bonds /2		2.66	%		Sep-15			6,000
RRHWoods, LLC		50.0	%		Industrial Revenue Bonds /2		2.67	%		Nov-15			5,500
RRHWoods, LLC		50.0	%		Massachusetts Mutual Life Ins. Co.		6.19	%		Aug-18			4,622
RRHWoods, LLC		50.0	%		Massachusetts Mutual Life Ins. Co.		5.85	%		Mar-16			8,480
RRHWoods, LLC		50.0	%		UNUM Life Insurance Company		5.67	%		Mar-17			3,994
RRHWoods, LLC		50.0	%		Regions		6.30	%		Jun-14			3,465
							4.86	%					81,426
Plaza Colonnade, LLC		50.0	%		Met Life		5.72	%		Jan-17			48,120
Plaza Colonnade, LLC		50.0	%		Tax Incremental Financing		5.38	%		Mar-10			1,818
Plaza Colonnade, LLC		50.0	%		Tax Incremental Financing		6.00	%		Mar-16			4,394
Plaza Colonnade, LLC		50.0	%		Tax Incremental Financing		5.90	%		Mar-24			11,903
							5.76	%					66,235
4600 Madison Associates, LLC		12.5	%		State Farm		6.85	%		Apr-18			13,332
Highwoods DLF 98/29, LP		22.8	%		USG Annuity & Life Company		6.78	%		Apr-11			47,868
Highwoods DLF 98/29, LP		22.8	%		Goldman Sachs		6.11	%		Jul-17			27,650
Highwoods DLF 97/26 DLF 99/32, LP		42.9	%		Massachusetts Mutual Life Ins. Co.		7.66	%		May-12			55,580
Concourse Center Associates, LLC		50.0	%		Lincoln National Life Insurance Co.		6.95	%		Jul-10			8,855
Highwoods KC Orlando, LLC		40.0	%		Met Life		5.21	%		Jul-14			141,357
Highwoods KC Glenridge Office		40.0	%		Wachovia		4.84	%		Jun-14			16,500
							6.07	%					311,142
							6.02	%				$	556,886
Highwoods’ share of the above												$	233,197

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

2/ Floating rate loan based on market rates.

Highwoods Properties, Inc. 32 03/31/08

Joint Ventures Portfolio Summary

As of March 31, 2008

Summary by Location:
							Percentage of Annualized Cash Revenue Highwoods’ Share Only 1/
Market		Rentable Square Feet		Occupancy			Office			Industrial			Retail			Multi-Family			Total
Des Moines 2/		2,505,000		91.4	%		28.7	%		4.3	%		1.0	%		3.2	%		37.2	%
Orlando		1,854,000		90.9	%		28.6	%		—			—			—			28.6	%
Atlanta		835,000		95.0	%		12.8	%		—			—			—			12.8	%
Kansas City		714,000		83.0	%		8.4	%		—			—			—			8.4	%
Richmond		413,000		100.0	%		5.0	%		—			—			—			5.0	%
Piedmont Triad		364,000		96.9	%		3.2	%		—			—			—			3.2	%
Tampa		205,000		98.8	%		2.0	%		—			—			—			2.0	%
Raleigh		178,000		100.0	%		1.6	%		—			—			—			1.6	%
Charlotte		148,000		100.0	%		0.7	%		—			—			—			0.7	%
Other		110,000		100.0	%		0.5	%		—			—			—			0.5	%
Total 3/		7,326,000		92.4	%		91.5	%		4.3	%		1.0	%		3.2	%		100.0	%

1/ Annualized Cash Revenue is March, 2008 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.

Highwoods Properties, Inc. 33 03/31/08

Joint Ventures Lease Expirations

March 31, 2008

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
2008		1,039,632		15.4	%		$	17,876		$	17.19		13.4	%
2009		690,678		10.2	%			14,439			20.91		10.8	%
2010		779,510		11.5	%			14,885			19.10		11.2	%
2011		983,984		14.5	%			19,780			20.10		14.8	%
2012		551,037		8.1	%			11,488			20.85		8.6	%
2013		1,069,233		15.9	%			20,537			19.21		15.4	%
2014		494,312		7.3	%			11,111			22.48		8.3	%
2015		656,932		9.7	%			12,042			18.33		9.0	%
2016		101,873		1.5	%			1,386			13.61		1.0	%
2017		236,693		3.5	%			5,949			25.13		4.5	%
2018 and thereafter		162,270		2.4	%			3,959			24.40		3.0	%
		6,766,154		100.0	%		$	133,452		$	19.72		100.0	%

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

2/ Annualized Cash Revenue is March, 2008 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Highwoods Properties, Inc. 34 03/31/08

Joint Venture Acquisition and Disposition Activity

Dollars in thousands

Acquisitions

Name

Market

Type

Date Acquired

Square Footage

Total Cost

First quarter 2008:

None

Dispositions

Name

Market

Type

Date Sold

Square Footage

Occupancy

Gross Sales Price

First quarter 2008:

None

Highwoods Properties, Inc. 35 03/31/08