HIGHWOODS PROPERTIES, INC.HIW

HIGHWOODS PROPERTIES, INC. Leases Disclosure

10-KFiled Feb 10, 20262 min read
Leases
Information as Lessor

We recognized rental and other revenues related to operating lease payments of $788.6 million, $811.6 million and $819.9 million, of which variable lease payments were $66.2 million, $75.3 million and $72.9 million, during the years ended December 31, 2025, 2024 and 2023, respectively. The following table sets forth the undiscounted cash flows for future minimum base rents to be received from customers for leases in effect as of December 31, 2025 for our consolidated properties:
2026$694,049 
2027680,593 
2028628,443 
2029575,487 
2030508,740 
Thereafter1,832,647 
$4,919,959 

Information as Lessee

We have office assets encompassing 1.2 million rentable square feet subject to operating ground leases in Nashville, Orlando, Raleigh and Tampa with a weighted average remaining term of 50 years. Rental payments on these leases are adjusted periodically based on either the CPI or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective leases. Changes in the CPI are not estimated as part of our
measurement of straight-line rental expense. We recognized $2.4 million, $2.6 million and $2.6 million of ground lease expense during the years ended December 31, 2025, 2024, and 2023, respectively, and we paid $2.4 million, $2.5 million and $2.4 million in cash during 2025, 2024 and 2023, respectively.

The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on operating ground leases as of December 31, 2025 and a reconciliation of those cash flows to the operating lease liability as of December 31, 2025:

2026$2,121 
20272,172 
20282,226 
20292,067 
20302,125 
Thereafter64,112 
74,823 
Discount(47,679)
Lease liability$27,144 

Historical Timeline

Fiscal YearFiled
2025Feb 10, 2026Showing above
2024Feb 11, 2025
2023Feb 6, 2024
2022Feb 7, 2023
2021Feb 8, 2022
2020Feb 9, 2021
2019Feb 4, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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