supplemental information...jed reagan the company 949-640-8780 wells fargo securities, llc highwoods...

SUPPLEMENTAL

INFORMATIONThird Quarter 2015

Page

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

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

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

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

Revenue and Dispositions Detail ……………………………………………………………………………………………………………………………………..4

Capitalization ……………………………………………………………………………………………………………………………………………………………..5

Mortgages and Notes Payable Summary ……………………………………………………………………………………………………………………………….6

Mortgages and Notes Payable Detail ………………………………………………………………………………………………………………………………….7

Portfolio Summary ………………………………………………………………………………………………………………………………………………….8, 9, 10

Occupancy Trends …………………………………………………………………………………………………………………………………………………………11

Office Leasing Statistics...………………………………………………………………………………………………………………………………………….12

Office Leasing Statistics and Rental Rate Comparisons by Market ……………………………………………………………………………………………………………………………..13

Lease Expirations ……………………………………………………………………………………………………………..…………………………………….14

Office Lease Expirations by Market by Year …………………………………………………………………………………………………………………………15

Customer Diversification ……………………………………………………………………………………………………………………………………………16

Same Property Performance ……………………………………………………………………………………………………………………………………….17

Acquisition Activity ………………………………………………………………………………………………………………………………………………….18

Disposition Activity …………………………………………………………………………………………………………………………………………………19

Development Activity ……………………………………………………………………………………………………………………………….……………….20

Land Held for Development …………………………………………………………………………………………………………………………………………21

Unconsolidated Joint Ventures Assets, Debt and Liabilities …………………………………………………………………………………………………………………………22

Unconsolidated Joint Ventures Income……………………………………………………………………………………………………………………………..23, 24

Unconsolidated Joint Ventures Mortgage Debt Detail …………………………………………………………………………………………………………………………25

Joint Ventures Summary, Lease Expirations and Dispositions Activity …………………………………………………………………………………………………………………………26

The information within refers to all Highwoods Properties' wholly-owned entities, except pages 22 to 26, unless noted otherwise. Wholly-owned

entities exclude properties recorded on our Balance Sheet that relate to joint ventures that are consolidated under GAAP. Retail square footage

presented throughout this document excludes 186,000 square feet of basement space at the Country Club Plaza in Kansas City.

All financial information contained in this document is unaudited. In addition, certain matters presented 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, among others, general economic conditions, local real estate

conditions, the timely development and lease-up of properties, and other risks listed at the end of our third quarter earnings 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 due to 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 our third

quarter earnings release.

During the second quarter of 2015, as a result of a third party partner’s irrevocable exercise of a buy-sell provision in the partnership agreement

governing SF Harborview Plaza, LP, such partner’s right to put its 80.0% equity interest back to us became no longer exercisable. Our investment

in this non-core joint venture then qualified for the equity method of accounting. Accordingly, we adjusted the balance sheets and beginning retained

earnings for all prior periods presented in the accompanying financial information to retrospectively apply the equity method of accounting. During

the third quarter of 2015, we sold our 20% interest in the joint venture for $6.9 million.

COVER

Monarch Tower in Atlanta

Acquired September 30, 2015

Table of Contents

TOC

Three Months Ended

9/30/15 9/30/14

Financial:

Revenues 163,736$ 152,629$

Net operating income (NOI) 103,978$ 95,246$

Same property cash NOI growth (excluding term fees) 6.3% -0.4%

Funds from operations per share 0.77$ 0.70$

Weighted average common shares outstanding, diluted 97,661 93,723

Balance Sheet:

Leverage (includes preferred stock) based on gross book assets 45.1% 41.6%

Unencumbered NOI % 85.6% 81.8%

Credit facility availability 210,000$ 325,000$

Bridge facility availability 100,000$ -$

Operations:

Quarter end occupancy 92.6% 91.0%

Office square feet leased 1,077 940

Office GAAP rent growth 1/ 9.6% 3.5%

Average office cash rental rate per square foot for in-place leases 23.36$ 22.08$

Nine Months Ended

9/30/15

Capital Activity:

Acquisition 449,300$

Disposition 38,515$

Development pipeline 521,700$

Pipeline pre-leased percent 72.4%

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

the term related to the previous lease in the same space. Adjustments are made if and to the extent necessary to illustrate the current and prior

deal on a consistent gross lease basis.

Summary (amounts in thousands, except percentages, ratios, and per share amounts)

i

Board of Directors Division Officers

Chuck Anderson Jim Bacchetta

Gene Anderson Vice President, Atlanta

Carlos Evans Rick Dehnert

Ed Fritsch Vice President, Greensboro

David Hartzell, Ph.D. Steve Garrity

Sherry Kellett Vice President, Orlando

Temple Sloan, Jr., Chair Steve Guinn

Vice President, Memphis

Corporate Officers Skip Hill

Vice President, Raleigh

Dan Clemmens Walton Makepeace

Vice President, Chief Accounting Officer Vice President, Richmond

Hugh Esleeck Brian Reames

Treasurer Senior Vice President, Nashville

Ed Fritsch Glenn Stephenson

President, Chief Executive Officer Vice President, Kansas City

Ted Klinck Andy Wisniewski

Executive Vice President, Chief Operating and Vice President, Pittsburgh

Investment Officer Dan Woodward

Carman Liuzzo Vice President, Tampa

Vice President, Investments

Art McCann

Chief Information Officer

Jeff Miller

Senior Vice President, General Counsel

Mark Mulhern

Senior Vice President, Chief Financial Officer

Kevin Penn

Senior Vice President, Strategy and Administration

Randy Roberson

Vice President, Development

Mike Starchville

Vice President, Asset Management

Corporate Information

ii

Research Coverage Corporate Headquarters

Highwoods Properties, Inc.

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

Jamie Feldman Vance Edelson Raleigh, NC 27604

646-855-5808 212-761-0078 919-872-4924

Capital One Securities Oppenheimer & Co. Stock Exchange

Tom Lesnick Steve Manaker NYSE: HIW

571-633-8191 212-667-5950

Investor Relations

Citigroup Global Markets RW Baird Mark Mulhern

Michael Bilerman David Rodgers Senior Vice President, Chief Financial Officer

212-816-1383 216-737-7341 Phone: 919-875-6682

Fax: 919-431-1439

Cowen and Company Stifel Nicolaus [email protected]

James Sullivan John Guinee http://www.highwoods.com/

646-562-1380 443-224-1307

Erin Aslakson Information Request

D.A. Davidson & Co. 443-224-1350 To request a Supplemental Package or Annual Report

Barry Oxford or to be added to our e-mail distribution list, please contact

212-240-9871 SunTrust Robinson Humphrey Investor Relations.

Michael Lewis

Green Street Advisors 212-319-5659

Jed Reagan The Company

949-640-8780 Wells Fargo Securities, LLC Highwoods Properties, headquartered in Raleigh, is a publicly

Brendan Maiorana traded (NYSE:HIW) real estate investment trust (“REIT”) and

Jefferies & Company, Inc. 443-263-6516 a member of the S&P MidCap 400 Index. The Company is a

Jonathan Petersen fully-integrated office REIT that owns, develops, acquires, leases and

212-284-1705 manages properties primarily in the best business districts (BBDs)

of Atlanta, Greensboro, Kansas City, Memphis, Nashville, Orlando,

Pittsburgh, Raleigh, Richmond and Tampa. For more information

about Highwoods Properties, please visit our website at:

www.highwoods.com.

Corporate Information

iii

http://www.highwoods.com/

http://www.highwoods.com/

9/30/15 9/30/14 9/30/15 6/30/15 3/31/15 12/31/14 9/30/14

Rental and other revenues 482,182$ 453,804$ 163,736$ 161,136$ 157,310$ 154,664$ 152,629$

Operating expenses:

Rental property and other expenses 174,549 169,048 59,758 57,278 57,513 56,456 57,383

Depreciation and amortization 156,200 146,895 54,652 51,240 50,308 49,128 48,287

Impairments of real estate assets - 588 - - - - -

General and administrative 29,511 26,973 9,182 8,892 11,437 9,250 7,526

Total operating expenses 360,260 343,504 123,592 117,410 119,258 114,834 113,196

Interest expense:

Contractual 61,783 62,352 20,484 20,857 20,442 19,935 20,962

Amortization of deferred financing costs 2,501 2,270 873 828 800 812 819

Financing obligation 653 301 155 317 181 182 567

64,937 64,923 21,512 22,002 21,423 20,929 22,348

Other income:

Interest and other income 3,475 3,863 1,038 1,199 1,238 1,576 1,054

Losses on debt extinguishment (220) (308) - (220) - - (326)

3,255 3,555 1,038 979 1,238 1,576 728

Income from continuing operations before disposition of investment

properties and activity in unconsolidated affiliates 60,240 48,932 19,670 22,703 17,867 20,477 17,813

Gains on disposition of property 10,581 42,185 7,012 2,412 1,157 2,167 36,238

Gain on disposition of investment in unconsolidated affiliate 4,155 - 4,155 - - - -

Equity in earnings of unconsolidated affiliates 4,367 886 780 1,776 1,811 941 248

Income from continuing operations 79,343 92,003 31,617 26,891 20,835 23,585 54,299

Discontinued operations:

Net gains on disposition of discontinued operations - 384 - - - - -

- 384 - - - - -

Net income 79,343 92,387 31,617 26,891 20,835 23,585 54,299

Net (income) attributable to noncontrolling interests in the Operating Partnership (2,296) (2,813) (918) (782) (596) (729) (1,673)

Net (income) attributable to noncontrolling interests in consolidated affiliates (948) (1,152) (324) (328) (296) (314) (291)

Dividends on Preferred Stock (1,879) (1,881) (626) (626) (627) (626) (627)

Net income available for common stockholders 74,220$ 86,541$ 29,749$ 25,155$ 19,316$ 21,916$ 51,708$

Earnings per Common Share – basic:

Income from continuing operations available for common stockholders 0.79$ 0.96$ 0.31$ 0.27$ 0.21$ 0.24$ 0.57$

Income from discontinued operations available for common stockholders - - - - - - -

Net income available for common stockholders 0.79$ 0.96$ 0.31$ 0.27$ 0.21$ 0.24$ 0.57$

Weighted average Common Shares outstanding - basic 93,996 90,299 94,693 94,055 93,222 92,063 90,668

Earnings per Common Share - diluted:

Income from continuing operations available for common stockholders 0.79$ 0.96$ 0.31$ 0.27$ 0.21$ 0.24$ 0.57$

Income from discontinued operations available for common stockholders - - - - - - -

Net income available for common stockholders 0.79$ 0.96$ 0.31$ 0.27$ 0.21$ 0.24$ 0.57$

Weighted average Common Shares outstanding - diluted 97,003 93,358 97,661 97,049 96,279 95,114 93,723

Dividends declared per Common Share 1.275$ 1.275$ 0.425$ 0.425$ 0.425$ 0.425$ 0.425$

Net income available for common stockholders:

Income from continuing operations available for common stockholders 74,220$ 86,169$ 29,749$ 25,155$ 19,316$ 21,916$ 51,708$

Income from discontinued operations available for common stockholders - 372 - - - - -

Net income available for common stockholders 74,220$ 86,541$ 29,749$ 25,155$ 19,316$ 21,916$ 51,708$

Nine Months Ended Three Months Ended

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

1


9/30/15 9/30/14 9/30/15 6/30/15 3/31/15 12/31/14 9/30/14

Funds from operations:

Net income 79,343$ 92,387$ 31,617$ 26,891$ 20,835$ 23,585$ 54,299$

Net (income) attributable to noncontrolling interests in consolidated affiliates (948) (1,152) (324) (328) (296) (314) (291)

Depreciation and amortization of real estate assets 154,250 144,805 53,978 50,594 49,678 48,460 47,612

Impairments of depreciable properties - 588 - - - - -

(Gains) on disposition of depreciable properties (9,147) (36,279) (6,521) (2,232) (394) (1,523) (36,279)

(Gain) on disposition of investment in unconsolidated affiliate (4,155) - (4,155) - - - -

Unconsolidated affiliates:

Depreciation and amortization of real estate assets 2,412 3,039 835 731 846 875 1,085

Impairment of investment in unconsolidated affiliate - 1,353 - - - - -

(Gains)/losses on disposition of depreciable properties (946) (955) - 125 (1,071) (239) -

Discontinued operations:

(Gains) on disposition of depreciable properties - (384) - - - - -

Funds from operations 220,809 203,402 75,430 75,781 69,598 70,844 66,426

Dividends on Preferred Stock (1,879) (1,881) (626) (626) (627) (626) (627)

Funds from operations available for common stockholders 218,930$ 201,521$ 74,804$ 75,155$ 68,971$ 70,218$ 65,799$

Funds from operations available for common stockholders per share 2.26$ 2.16$ 0.77$ 0.77$ 0.72$ 0.74$ 0.70$

Weighted average shares outstanding 97,003 93,358 97,661 97,049 96,279 95,114 93,723

Additional information:

Funds from operations available for common stockholders per share,

excluding certain items 1/ 2.27$ 2.16$ 0.78$ 0.78$ 0.72$ 0.74$ 0.71$

Funds from operations available for common stockholders,

excluding certain items 1/ 2/ 220,154$ 202,075$ 75,750$ 75,433$ 68,971$ 70,537$ 66,276$

Straight-line rental income (16,495)$ (15,865)$ (5,688)$ (5,243)$ (5,564)$ (5,416)$ (5,717)$

Straight-line rental write-offs related to termination fees 341 280 233 108 - 157 42

Amortization of lease incentives 1,162 1,077 378 422 362 388 327

Depreciation of non-real estate assets 1,619 1,645 561 536 522 530 521

Ground lease straight-line rent expense 310 333 101 104 105 105 109

Share-based compensation expense 5,996 6,179 929 1,201 3,866 760 798

Amortization of deferred financing costs 2,501 2,270 873 828 800 812 819

Amortization of accumulated other comprehensive income 237 237 80 79 78 80 80

Amortization of Harborview financing obligation (541) (1,411) - (111) (430) (394) (18)

Amortization of above/(below) market leases and other adjustments (948) (828) (173) (346) (429) (196) (311)

Non-incremental revenue generating capital expenditures incurred: 3/

Building improvements (16,422) (14,406) (7,124) (6,026) (3,272) (8,054) (4,548)

2nd generation tenant improvements (40,993) (40,282) (13,295) (11,955) (15,743) (15,663) (13,496)

2nd generation lease commissions (17,283) (19,730) (6,313) (4,252) (6,718) (4,052) (2,680)

Common dividends and unit distributions paid (123,450) (118,782) (41,439) (41,200) (40,811) (40,377) (39,680)

1/ Excludes losses on debt extinguishment and property acquisition costs.

2/ Increase or (decrease) to cash flows.

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

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

(d) building improvements that constitute part of the total investment cost disclosed in connection with an acquisition and (e) property

re-developments.

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

2

9/30/15 12/31/14

(as revised)

Assets:

Real estate assets, at cost:

Land 460,111$ 384,301$

Buildings and tenant improvements 4,336,244 3,807,315

Development in process 157,100 205,971

Land held for development 71,997 79,355

5,025,452 4,476,942

Less-accumulated depreciation (1,096,129) (1,024,936)

Net real estate assets 3,929,323 3,452,006

Real estate and other assets, net, held for sale 2,629 1,038

Cash and cash equivalents 5,184 8,832

Restricted cash 19,310 14,595

Accounts receivable, net of allowance of $1,835 and $1,314, respectively 27,576 48,557

Mortgages and notes receivable, net of allowance of $362 and $275, respectively 2,132 13,116

Accrued straight-line rents receivable, net of allowance of $993 and $600, respectively 156,481 142,037

Investments in and advances to unconsolidated affiliates 20,674 50,685

Deferred financing and leasing costs, net of accumulated amortization of $123,463 and $112,804,

respectively 255,849 228,768

Prepaid expenses and other assets, net of accumulated amortization of $15,697 and $14,259,

respectively 43,537 39,489

Total Assets 4,462,695$ 3,999,123$

Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:

Mortgages and notes payable 2,478,753$ 2,071,389$

Accounts payable, accrued expenses and other liabilities 245,953 237,633

Financing obligation 7,402 8,962

Total Liabilities 2,732,108 2,317,984

Commitments and contingencies

Noncontrolling interests in the Operating Partnership 112,768 130,048

Equity:

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

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

share), 29,050 and 29,060 shares issued and outstanding, respectively 29,050 29,060

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

95,329,758 and 92,907,310 shares issued and outstanding, respectively 953 929

Additional paid-in capital 2,579,318 2,464,275

Distributions in excess of net income available for common stockholders (1,002,879) (957,370)

Accumulated other comprehensive loss (6,610) (3,912)

Total Stockholders' Equity 1,599,832 1,532,982

Noncontrolling interests in consolidated affiliates 17,987 18,109

Total Equity 1,617,819 1,551,091

Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity 4,462,695$ 3,999,123$

Consolidated Balance Sheets (dollars in thousands)

3


9/30/15 9/30/14 9/30/15 6/30/15 3/31/15 12/31/14 9/30/14

Revenue Detail:

Rental and other revenues

Contractual rents, net 403,563$ 382,943$ 136,134$ 135,226$ 132,203$ 129,823$ 127,772$

Straight-line rental income, net 16,495 15,865 5,688 5,243 5,564 5,416 5,717

Amortization of lease incentives (1,162) (1,077) (378) (422) (362) (388) (327)

Cost recovery income, net 43,244 38,705 15,501 14,198 13,545 12,568 13,768

Lease termination fees 1,221 1,457 965 176 80 746 953

Fee income 2,953 2,582 872 1,171 910 978 871

Other miscellaneous operating revenues 15,868 13,329 4,954 5,544 5,370 5,521 3,875

482,182$ 453,804$ 163,736$ 161,136$ 157,310$ 154,664$ 152,629$

Dispositions Detail:

Rental and other revenues 3,083$ 19,079$ 89$ 1,289$ 1,705$ 1,970$ 4,952$

Operating expenses:

Rental property and other expenses 985 7,082 25 390 570 738 1,931

Depreciation and amortization 743 5,213 - 276 467 555 683

Impairments of real estate assets - 588 - - - - -

Total operating expenses 1,728 12,883 25 666 1,037 1,293 2,614

Gains on disposition of property 10,581 42,185 7,012 2,412 1,157 2,167 36,238

Total dispositions in continuing operations 11,936$ 48,381$ 7,076$ 3,035$ 1,825$ 2,844$ 38,576$

Revenue and Dispositions Detail (dollars in thousands)

4

9/30/15 6/30/15 3/31/15 12/31/14 9/30/14

Mortgages and Notes Payable (see pages 6 & 7): 2,478,753$ 2,124,028$ 2,089,226$ 2,071,389$ 2,013,824$

Financing Obligation (as revised): 7,402$ 8,962$ 8,962$ 8,962$ 8,962$

Preferred Stock (at liquidation value):

Series A 8 5/8% Cumulative Redeemable 29,050$ 29,050$ 29,050$ 29,060$ 29,077$

Common Shares and Units Outstanding:

Common stock outstanding 95,330 94,118 94,047 92,907 91,270

Noncontrolling interest partnership units 2,910 2,910 2,910 2,937 2,937

Total Common Shares and Units outstanding 98,240 97,028 96,957 95,844 94,207

Stock price at period end 38.75$ 39.95$ 45.78$ 44.28$ 38.90$

Market value of common equity 3,806,800$ 3,876,269$ 4,438,691$ 4,243,972$ 3,664,652$

Total capitalization (as revised) 6,322,005$ 6,038,309$ 6,565,929$ 6,353,383$ 5,716,515$

Capitalization

Capitalization (dollars, shares and units in thousands)

Debt and Financing Obligation

39.3%

Preferred Stock0.5%

Common Equity60.2%

5

Balances Outstanding: 9/30/15 6/30/15 3/31/15 12/31/14 9/30/14

Secured:

Conventional fixed rate 288,623$ 290,101$ 311,502$ 312,868$ 314,506$

Unsecured - Fixed:

Fixed rate bonds and notes 1,125,130 1,124,927 1,124,724 1,124,521 1,124,318

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

Unsecured - fixed total 1,350,130 1,349,927 1,349,724 1,349,521 1,349,318

Unsecured - Floating:

Bank term loan 200,000 200,000 200,000 200,000 200,000

Bank term loan 125,000 125,000 - - -

Bridge facility 250,000 - - - -

Credit facility 2/ 265,000 159,000 228,000 209,000 150,000

Unsecured - floating total 840,000 484,000 428,000 409,000 350,000

Unsecured total 2,190,130 1,833,927 1,777,724 1,758,521 1,699,318

Total 2,478,753$ 2,124,028$ 2,089,226$ 2,071,389$ 2,013,824$

End of Period Weighted Average Interest Rates:

Secured:

Conventional fixed rate 5.83% 5.82% 5.95% 5.95% 5.94%

Unsecured - Fixed:

Fixed rate bonds 5.03% 5.03% 5.03% 5.03% 5.03%

Bank term loan 1/ 2.78% 2.78% 3.43% 3.43% 3.43%

Unsecured - fixed total 4.66% 4.66% 4.77% 4.77% 4.77%

Unsecured - Floating:

Bank term loan 1.40% 1.38% 1.37% 1.36% 1.35%

Bank term loan 1.31% 1.29% - - -

Bridge facility 1.29% - - - -

Credit facility 2/ 1.30% 1.29% 1.28% 1.26% 1.25%

Unsecured - floating total 1.32% 1.33% 1.32% 1.31% 1.31%

Unsecured total 3.38% 3.78% 3.94% 3.96% 4.05%

Weighted Average 3.66% 4.06% 4.24% 4.26% 4.35%

Maturity Schedule

1/ The interest rate on this loan is based on one-month LIBOR plus a spread based on the company's credit rating. Swap agreements effectively

fix one-month LIBOR until January 2019.

2/ Maturity date assumes exercise of two six-month extension options.

3/ All periods exclude annual principal amortization.

Mortgages and Notes Payable Summary (dollars in thousands)

-

100

200

300

400

500

600

2015 2016 2017 2018 2019 2020 2021 2022 2023

To

tal

Deb

t (i

n m

illio

ns)

Secured Debt 3/ Unsecured Debt

Weighted Average Maturity = 3.3 years

$

6

Undepreciated

Secured Loans Loan Book Value of

Effective Maturity Balance Real Estate & Related

Lender Rate Date 9/30/15 Assets Secured

Wells Fargo Bank, N.A. 4.22% Nov-17 113,156$ 224,713$

New York Life Insurance Company 6.88% Jan-16 106,274 217,982

Western-Southern Life Assurance Company 7.50% Aug-16 44,019 73,441

Wells Fargo Bank, N.A. 5.36% Jul-17 19,233 22,300

State Farm Life Insurance 7.65% Feb-16 5,941 16,833

5.83% 288,623 555,269$

Unsecured Bonds

Bonds 5.88% Mar-17 379,515

Bonds 3.36% Jun-21 297,531

Bonds 3.75% Jan-23 248,084

Bonds 7.50% Apr-18 200,000

5.03% 1,125,130

Unsecured Loans

Credit facility 1/ 2/ 1.30% Jan-19 265,000

Bridge facility 1/ 1.29% Mar-16 250,000

Bank term loan 3/ 2.78% Jun-20 225,000

Bank term loan 1/ 1.40% Jan-19 200,000

Bank term loan 1/ 1.31% Jun-20 125,000

1.63% 1,065,000

Total Debt 3.66% 2,478,753$

Secured and Unsecured Debt Fixed and Variable Rate Debt

1/ Floating rate loans based on one-month LIBOR.

2/ Maturity date assumes exercise of two six-month extension options.

3/ This loan maturing June 2020 is swapped to an effective fixed rate of 2.78% until January 2019, including the current spread based on the

company's credit rating.

Mortgages and Notes Payable Detail (dollars in thousands)

Secured11.64%

Unsecured88.36%

Variable33.89%

Fixed66.11%

sort

Bond Covenants as of September 30, 2015

Overall indebtedness (<60%) 48.4%

Secured indebtedness (<40%) 5.6%

Income available for debt service (>1.5x) 4.37x

Total unencumbered assets to unsecured debt (>200%) 208.7%

Agency Rating Outlook Affirmed

S&P BBB Stable 7/29/15

Moody's Baa2 Stable 9/17/14

7

9/30/15 6/30/15 3/31/15 12/31/14 9/30/14

Total In-Service

Rentable Square Footage

Office 27,280,000 25,963,000 25,490,000 25,404,000 24,910,000

Industrial 2,413,000 2,413,000 2,413,000 2,413,000 2,613,000

Retail 835,000 835,000 830,000 779,000 779,000

Total 30,528,000 29,211,000 28,733,000 28,596,000 28,302,000

Occupancy

Office 92.1% 92.4% 91.5% 91.2% 90.6%

Industrial 96.5% 96.4% 96.4% 97.9% 93.0%

Retail 96.0% 94.0% 93.6% 96.1% 95.0%

Total 92.6% 92.8% 91.9% 91.9% 91.0%

Same Property:

Rentable Square Feet

Office 24,243,000 24,243,000 24,243,000 24,243,000 24,243,000

Industrial 2,413,000 2,413,000 2,413,000 2,413,000 2,413,000

Retail 794,000 794,000 794,000 794,000 794,000

Total 27,450,000 27,450,000 27,450,000 27,450,000 27,450,000

Occupancy

Office 92.5% 92.5% 91.3% 91.4% 91.0%

Industrial 96.5% 96.4% 96.4% 97.9% 95.1%

Retail 96.1% 93.6% 93.3% 96.2% 95.1%

Total 93.0% 92.9% 91.8% 92.1% 91.5%

Rentable Square Feet and Occupancy Trend: Total In-Service Office Only

Portfolio Summary

85%

87%

89%

91%

93%

95%

20

21

22

23

24

25

26

27

28

9/30/14 12/31/14 3/31/15 6/30/15 9/30/15

Occu

pan

cy

Sq

uare

Feet

in M

illio

ns

Rentable Square Feet Occupancy

8

Rentable Percentage of Annualized Cash Revenue 1/

Market Square Feet Occupancy Office Industrial Retail Total

Atlanta 5,361,000 91.3% 18.0% - - 18.0%

Raleigh 4,882,000 91.6% 15.6% - - 15.6%

Nashville 3,378,000 99.0% 13.4% - 0.2% 13.6%

Tampa 3,649,000 88.2% 12.4% - - 12.4%

Pittsburgh 2,157,000 96.0% 8.3% - - 8.3%

Kansas City 1,393,000 97.0% 2.5% - 5.1% 7.6%

Memphis 2,226,000 89.9% 7.3% - 0.1% 7.4%

Orlando 1,978,000 84.9% 6.4% - - 6.4%

Richmond 1,940,000 94.5% 5.6% - - 5.6%

Greensboro 3,564,000 95.4% 3.3% 1.8% - 5.1%

Total 30,528,000 92.6% 92.8% 1.8% 5.4% 100.0%

Annualized Cash Revenue by Market 1/

1/ Annualized Cash Revenue is September 2015 cash rental revenue (base rent plus operating expense pass through revenue excluding

straight-line rental income) multiplied by 12.

Portfolio Summary

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Atlanta Raleigh Nashville Tampa Pittsburgh Kansas City Memphis Orlando Richmond Greensboro

sort

9

Percentage Percentage

of Segment of Total

Annualized Annualized

Rentable Cash Cash

Market Square Feet Occupancy Revenue 1/ Revenue 1/

Office

Atlanta 5,361,000 91.3% 19.2% 18.0%

Raleigh 4,882,000 91.6% 16.8% 15.6%

Nashville 3,337,000 99.1% 14.3% 13.4%

Tampa 3,649,000 88.2% 13.4% 12.4%

Pittsburgh 2,157,000 96.0% 9.0% 8.3%

Memphis 2,208,000 89.8% 7.9% 7.3%

Orlando 1,978,000 84.9% 7.0% 6.4%

Richmond 1,940,000 94.5% 6.1% 5.6%

Greensboro 1,151,000 93.1% 3.6% 3.3%

Kansas City 617,000 98.3% 2.7% 2.5%

27,280,000 92.1% 100.0% 92.8%

Industrial

Greensboro 2,413,000 96.5% 100.0% 1.8%

2,413,000 96.5% 100.0% 1.8%

Retail

Kansas City 776,000 96.0% 94.1% 5.1%

Nashville 41,000 94.9% 4.0% 0.2%

Memphis 18,000 100.0% 1.9% 0.1%

835,000 96.0% 100.0% 5.4%

Office Segment: Annualized Cash Revenue by Market 1/



Portfolio Summary

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Atlanta Raleigh Nashville Tampa Pittsburgh Memphis Orlando Richmond Greensboro Kansas City

sort

10

Market Measurement 9/30/15 6/30/15 3/31/15 12/31/14 9/30/14

Atlanta Rentable Square Feet 5,361,000 4,468,000 4,465,000 4,511,000 4,708,000

Occupancy 91.3% 91.2% 89.5% 88.3% 87.2%

Current Properties 1/ 92.2% 91.2% 89.5% 89.2% 88.9%

Greensboro Rentable Square Feet 3,564,000 3,666,000 3,664,000 3,691,000 3,768,000

Occupancy 95.4% 96.0% 95.6% 96.2% 94.0%


Kansas City Rentable Square Feet 1,393,000 1,393,000 1,388,000 1,393,000 1,393,000

Occupancy 97.0% 95.8% 95.6% 97.2% 96.3%


Memphis Rentable Square Feet 2,226,000 2,226,000 2,226,000 2,226,000 1,978,000

Occupancy 89.9% 92.2% 93.0% 92.3% 90.3%


Nashville Rentable Square Feet 3,378,000 3,379,000 3,378,000 3,377,000 3,377,000

Occupancy 99.0% 97.7% 95.3% 96.4% 96.4%


Orlando Rentable Square Feet 1,978,000 1,978,000 1,810,000 1,810,000 1,564,000

Occupancy 84.9% 85.3% 87.6% 88.1% 90.3%


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

Occupancy 96.0% 95.5% 95.5% 94.6% 94.4%


Raleigh Rentable Square Feet 4,882,000 4,882,000 4,583,000 4,370,000 4,362,000

Occupancy 91.6% 92.0% 90.3% 90.1% 90.1%


Richmond Rentable Square Feet 1,940,000 1,940,000 1,940,000 1,939,000 1,873,000

Occupancy 94.5% 91.3% 90.9% 94.6% 93.2%


Tampa Rentable Square Feet 3,649,000 3,122,000 3,122,000 3,122,000 3,122,000

Occupancy 88.2% 90.1% 88.3% 85.2% 83.3%


Total Rentable Square Feet 30,528,000 29,211,000 28,733,000 28,596,000 28,302,000

Occupancy 92.6% 92.8% 91.9% 91.9% 91.0%


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

Occupancy Trends sort

11

Leasing Statistics

Three Months Ended Five Quarter

9/30/15 6/30/15 3/31/15 12/31/14 9/30/14 Average

Leasing Activity:

Square footage of Renewal Deals 843,755 584,764 945,856 733,446 583,261 738,216

Square footage of New Deals (Relets) 233,574 1/ 331,734 1/ 312,697 1/ 233,518 357,159 293,736

Rentable square footage leased 1,077,329 916,498 1,258,553 966,964 940,420 1,031,953

Renewed square footage (% of total) 78.3% 63.8% 75.2% 75.9% 62.0% 71.5%

New Leases square footage (% of total) 21.7% 36.2% 24.8% 24.1% 38.0% 28.5%

Number of lease transactions (signed leases) 118 133 128 111 127 123

Weighted average per rentable square foot

over the lease term:

Base rent 24.44$ 23.98$ 25.24$ 23.00$ 24.10$ 24.15$

Rent concessions (0.43) (0.60) (0.47) (0.35) (0.65) (0.50)

GAAP rent 24.01 23.38 24.77 22.65 23.45 23.65

Tenant improvements (1.87) (2.39) (2.41) (1.95) (2.26) (2.18)

Leasing commissions 2/ (0.66) (0.77) (0.61) (0.46) (0.59) (0.62)

Effective rent after capex 21.48 20.22 21.75 20.24 20.60 20.85

Expense stop (7.02) (7.58) (7.06) (6.54) (6.46) (6.93)

Effective rent after capex and opex 14.46$ 12.64$ 14.69$ 13.70$ 14.14$ 13.92$

Square feet weighted average term in years 4.9 5.0 8.3 5.5 5.3 5.8

Dollar weighted average term in years 4.9 5.1 8.6 5.5 5.4 5.9

Capital Expenditures Related to Above Leasing Activity:

Tenant Improvements:

Total dollars committed under signed leases 12,601,437$ 12,887,452$ 26,256,891$ 12,374,985$ 14,150,026$ 15,654,158$

Rentable square feet 1,077,329 916,498 1,258,553 966,964 940,420 1,031,953

Per rentable square foot 11.70$ 14.06$ 20.86$ 12.80$ 15.05$ 15.17$

Leasing Commissions:

Total dollars committed under signed leases 2/ 4,298,754$ 3,695,145$ 7,125,915$ 2,800,877$ 3,642,058$ 4,312,550$



Total:

Total dollars committed under signed leases 16,900,191$ 16,582,597$ 33,382,806$ 15,175,862$ 17,792,084$ 19,966,708$



1/ Expected occupancy as follows: 25,000 in Q3 '15; 104,000 in Q4 '15; 26,000 in Q1 '16; 6,000 in Q2 '16; 74,000 in Q3 '16.

2/ Excludes internal leasing costs.

Office Leasing Statistics

12

For Three Months Ended September 30, 2015

Leasing Statistics Rentable Lease

Square Feet Average TI's Commissions Rental Previous Percentage

Leased Term Per SF Per SF 1/ Rate Rent Change

Richmond 221,339 6.4 12.37$ 4.75$ 21.54$ 19.69$ 9.4%

Atlanta 198,547 3.0 5.35 1.60 25.28 21.71 16.4%

Raleigh 149,106 5.7 16.22 4.40 22.40 19.35 15.8%

Tampa 107,035 3.7 11.99 2.51 24.80 25.32 -2.1%

Nashville 98,212 3.1 4.10 1.72 24.58 22.08 11.3%

Orlando 96,596 5.8 14.49 5.74 28.17 27.45 2.6%

Memphis 88,964 3.0 10.03 1.97 21.84 20.45 6.8%

Pittsburgh 62,170 10.2 35.13 14.43 28.93 25.04 15.5%

Greensboro 32,713 4.7 4.19 1.87 18.25 16.44 11.0%

Kansas City 22,647 4.2 3.72 6.57 27.02 25.07 7.8%

GAAP Rent Growth 2/ 1,077,329 4.9 11.70$ 3.99$ 24.01$ 21.90$ 9.6%

Cash Rent Growth 3/ 1,077,329 4.9 11.70$ 3.99$ 23.35$ 23.52$ -0.7%

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

1/ Excludes capitalized internal leasing costs, which totaled $938,000.

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

over the term related to the previous lease in the same space. Adjustments are made if necessary to put both the current and prior deal on a

consistent gross lease basis.

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

annualized cash rent psf (including recovery income and rent escalations) related to the previous lease in the same space. Adjustments are

made if necessary to put both the current and prior deal on a consistent gross lease basis.

Office Leasing Statistics and Rental Rate Comparisons by Market

sort

$20.85 $20.72

$21.36

$22.08

$23.36

$19

$20

$21

$22

$23

$24

9/30/11 9/30/12 9/30/13 9/30/14 9/30/15

13

Occupied Percent of Percent of

Rentable Occupied Annualized Average Annualized

Square Feet Rentable Cash Rental Cash

Year Expiring Square Feet Revenue 1/ Rate Revenue 1/

Office

2015 2/ 433,862 1.7% 10,073$ 23.22$ 1.7%

2016 2,131,838 8.5% 49,992 23.45 8.5%

2017 3,036,887 12.1% 74,190 24.43 12.6%

2018 2,585,671 10.3% 60,450 23.38 10.3%

2019 3,309,705 13.2% 77,054 23.28 13.2%

2020 2,641,077 10.5% 71,179 26.95 12.1%

2021 2,210,900 8.8% 49,598 22.43 8.4%

2022 1,251,243 5.0% 26,120 20.88 4.4%

2023 1,426,596 5.7% 29,879 20.94 5.1%

2024 1,528,701 6.1% 37,629 24.62 6.4%

2025 and thereafter 4,575,053 18.1% 100,843 22.04 17.3%

25,131,533 100.0% 587,007$ 23.36$ 100.0%

Total

2015 3/ 528,903 1.9% 10,382$ 19.63$ 1.6%

2016 2,632,559 9.3% 54,300 20.63 8.6%

2017 3,368,922 11.9% 78,248 23.23 12.4%

2018 3,073,477 10.9% 67,380 21.92 10.6%

2019 3,705,403 13.1% 82,444 22.25 13.0%

2020 3,051,332 10.8% 76,049 24.92 12.0%

2021 2,417,108 8.6% 53,723 22.23 8.5%

2022 1,504,279 5.3% 31,751 21.11 5.0%

2023 1,457,502 5.2% 31,693 21.74 5.0%

2024 1,751,352 6.2% 40,868 23.34 6.5%

2025 and thereafter 4,770,890 16.8% 106,267 22.27 16.8%

28,261,727 100.0% 633,105$ 22.40$ 100.0%

Percent of Total Annualized Cash Revenue Expiring by Year

1/ Annualized Cash Revenue is September 2015 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line

rental income) multiplied by 12.

2/ Includes 86,000 square feet of leases that are on a month to month basis, which constitute 0.3% of total annualized revenue.


Note: 2015 and beyond expirations that have been renewed are reflected above based on the renewal expiration date. Expirations include leases

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

Lease Expirations (dollars in thousands)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2015 2/ 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 andthereafter

14

2015 1/ 2016 2017 2018 Thereafter

Atlanta RSF 61,763 327,174 736,554 211,885 3,554,385

% of Total Office RSF 0.2% 1.3% 2.9% 0.8% 14.1%

Annualized Cash Revenue 2/ 1,143$ 8,496$ 18,907$ 5,433$ 79,284$

% of Total Office Annl Cash Rev 0.2% 1.4% 3.2% 0.9% 13.5%

Greensboro RSF 21,944 143,438 238,734 172,460 495,373


Annualized Cash Revenue 2/ 469$ 2,809$ 4,522$ 3,506$ 9,764$


Kansas City RSF 32,139 43,067 106,519 30,726 394,115


Annualized Cash Revenue 2/ 1,081$ 1,160$ 2,618$ 819$ 10,289$


Memphis RSF 19,885 187,206 271,190 250,170 1,254,032




Nashville RSF 13,310 136,916 383,305 383,078 2,391,017




Orlando RSF 40,332 151,239 257,578 212,603 1,018,430




Pittsburgh RSF 39,050 134,103 133,930 126,505 1,636,567




Raleigh RSF 62,172 473,982 258,855 666,085 3,009,044




Richmond RSF 41,546 319,452 327,224 190,690 953,991




Tampa RSF 101,721 215,261 322,998 341,469 2,236,321




Total RSF 433,862 2,131,838 3,036,887 2,585,671 16,943,275







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

15

Percent of Average

Rentable Annualized Annualized Remaining

Square Cash Cash Lease

Top 20 Customers Feet Revenue 1/ Revenue 1/ Term in Years

Federal Government 1,457,229 34,619$ 5.47% 3.9

Metropolitan Life Insurance 637,968 14,822 2.34% 11.7

PPG Industries 356,215 9,050 1.43% 15.6

HCA Corporation 297,909 7,790 1.23% 1.5

EQT Corporation 317,052 7,423 1.17% 9.0

International Paper 299,538 7,046 1.11% 12.1

Healthways 263,598 6,653 1.05% 7.4

Bass, Berry & Sims 195,846 6,290 0.99% 9.3

State of Georgia 318,796 6,018 0.95% 5.2

Lockton Companies 197,981 5,546 0.88% 14.4

Aon 190,683 5,249 0.83% 4.1

Marsh USA 175,390 5,117 0.81% 6.5

Syniverse Technologies 218,678 4,988 0.79% 10.2

AT&T 217,400 4,860 0.77% 3.6

Novelis 168,949 4,849 0.77% 8.9

Vanderbilt University 198,783 4,751 0.75% 5.0

PNC Bank 187,076 4,610 0.73% 11.2

Lifepoint Corporate Services 202,991 4,563 0.72% 13.5

BB&T 245,543 4,500 0.71% 4.3

Morgan Stanley 144,616 4,435 0.70% 4.1

6,292,241 153,179$ 24.20% 7.7

Percent of Annualized Revenue by Industry



Customer Diversification (dollars in thousands)

Professional, Scientific, and Technical Services

23.0%

Finance/Banking13.3%

Health Care and Social Assistance

11.9%

Insurance8.7%

Government/Public Administration

6.8%

Manufacturing6.5%

Real Estate Rental and Leasing

5.0%

Administrative and Support Services

4.2%

Retail Trade4.2%

Information3.3%

Accommodation and Food Services

3.0%

Educational Services2.9%

Telecommunication1.9%

Transportation and Warehousing

1.5%

Energy1.5%

Other Services (except Public Administration)

1.3%Wholesale Trade

1.0%

sort

16

Three months ended

September 30, Dollar Percentage

2015 2014 Change B/(W) Change B/(W)

Rental revenues 1/ 145,715$ 138,688$ 7,027$ 5.1%

Operating expenses (55,572) (53,917) (1,655) (3.1%)

Cash NOI without Term Fees 90,143 84,771 5,372 6.3%

Lease termination fees 2/ 974 11 963 8754.5%

Cash NOI with Term Fees 91,117 84,782 6,335 7.5%

Straight-line rent 2/ 4,482 5,412 (930) (17.2%)

GAAP NOI 95,599$ 90,194$ 5,405$ 6.0%

Average occupancy 92.5% 91.2% 1.4%

Rentable square feet 27,450,000 27,450,000

Nine months ended

September 30, Dollar Percentage

2015 2014 Change B/(W) Change B/(W)

Rental revenues 1/ 435,251$ 410,941$ 24,310$ 5.9%

Operating expenses (163,610) (158,218) (5,392) (3.4%)

Cash NOI without Term Fees 271,641 252,723 18,918 7.5%

Lease termination fees 2/ 1,230 359 871 242.6%

Cash NOI with Term Fees 272,871 253,082 19,789 7.8%

Straight-line rent 2/ 11,370 15,362 (3,992) (26.0%)

GAAP NOI 284,241$ 268,444$ 15,797$ 5.9%

Average occupancy 92.3% 90.3% 2.2%

Rentable square feet 27,450,000 27,450,000

Year to Date: 2015 vs 2014

GAAP NOI Occupancy

Percentage Percentage

Market Change Change

Atlanta 9.9% 6.3%

Greensboro 5.7% 0.2%

Kansas City (0.1%) 1.1%

Memphis 7.6% 3.7%

Nashville 13.5% 3.6%

Orlando (2.2%) (1.1%)

Pittsburgh 9.1% 2.3%

Raleigh (2.5%) (1.7%)

Richmond (2.3%) (1.4%)

Tampa 12.2% 6.4%

5.9% 2.2%

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

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

Same Property Performance (dollars in thousands)

17

Nine Months

Ended Three Months Ended

9/30/15 9/30/15 6/30/15 3/31/15

Occupancy 86.6% 88.2% 73.4% -

Square footage 1,592,000 1,424,000 168,000 -

Gross total investment $449,300 $427,000 $22,300 -

Eola Park Centre

Market Orlando

Submarket CBD

Property type Office

Date acquired June 6, 2015

Occupancy 73.4%

Square footage (1 building) 168,000

Gross total investment 1/ $22,300

Monarch Centre

Market Atlanta

Submarket Buckhead


Date acquired September 30, 2015

Occupancy 88.0%

Square footage (2 buildings) 896,000


SunTrust Financial Centre

Market Tampa

Submarket CBD


Date acquired September 30, 2015

Occupancy 88.5%



1/ Includes $3.0 million of planned near-term building improvements.



Acquisition Activity (dollars In thousands)

18

Nine Months

Ended Three Months Ended

9/30/15 9/30/15 6/30/15 3/31/15

Occupancy 1/ 66.3% 100.0% - 19.2%

Square footage 175,000 102,000 - 73,000

Gross sales price $18,780 $15,300 - $3,480

Highwoods Center I at Tradeport

Market Atlanta


Date sold February 18, 2015

Occupancy 1/ 0.0%


Gross sales price $2,480

3901 Westpoint Boulevard

Market Winston-Salem


Date sold February 27, 2015

Occupancy 1/ 51.9%



799 Hanes Mall Boulevard (US Air)

Market Winston-Salem


Date sold July 23, 2015

Occupancy 1/ 100.0%



1/ As of last reported quarter-end occupancy prior to date of disposition.

Disposition Activity (dollars In thousands)

19

Rentable Anticipated Investment Estimated Estimated

Square Total As Of Pre Completion Stabilization

Office In-Process Market Feet Investment 9/30/15 1/ Leased % Date Date

Laser Spine Institute Tampa 176,000 56,000$ 40,474$ 100.0% 1Q 16 1Q 16

Seven Springs West Nashville 203,000 59,000 31,605 85.6% 3Q 16 1Q 17

Bridgestone Americas 2/ Nashville 514,000 200,000 44,932 98.5% 3Q 17 3Q 17

Riverwood 200 Atlanta 299,000 107,000 13,507 66.2% 2Q 17 2Q 19

Seven Springs II 3/ Nashville 131,000 38,100 2,642 0.0% 2Q 17 3Q 18

1,323,000 460,100$ 133,160$ 79.7%

Office Completed Not Stabilized 4/

GlenLake V Raleigh 166,000 37,000$ 33,316$ 84.3% 1Q 15 2Q 17

Other In-Process

Plaza 211 (Retail) 5/ Kansas City 28,000 17,000$ 9,587$ 0.0% 4Q 15 3Q 16

Enterprise V (Industrial) Greensboro 131,200 7,600 1,952 0.0% 2Q 16 2Q 17

159,200 24,600$ 11,539$ 0.0%

Total Pipeline 1,648,200 521,700$ 178,015$ 72.4%

Bridgestone Americas development project in Nashville

1/ Includes deferred lease commissions, which are not classified as development in process on our consolidated balance sheet.

2/ Includes 8,000 square feet of amenity retail space, which is currently 0% pre-leased; office space is 100% pre-leased.

3/ Recorded in the consolidated balance sheet in land held for development, not development in process.

4/ "Completed not stabilzed" properties are recorded on our consolidated balance sheet in the land and building and tenant improvement

accounts, not development in process.

5/ Investment amounts relating to this redevelopment property include original land and building basis, net of accumulated depreciation, in addition

to the incremental redevelopment costs.

Development Activity (dollars in thousands)

20

Usable

Market Acres Office IndustrialAtlanta 154 75,000 1,934,000 Nashville 2/ 3/ 68 1,400,000 - Raleigh 4/ 61 1,154,000 - Greensboro 37 240,000 356,000 Tampa 5/ 37 813,000 - Richmond 6/ 22 324,000 - Memphis 10 145,000 - Orlando 2 410,000 - Kansas City 1 175,000 -

Core total 392 4,736,000 2,290,000

Non-core total 6/ 85

Total 477

Cost Basis 1/ 2/ 3/ 4/ 5/ 6/ 99,015$

The 477 acres of Development Land has an estimated market value of between $115M to $125M.

1/ Represents approximately $1 billion in total development.

2/ Includes 68 acres and approximately 1.4M square feet currently classified as development in process on our consolidated balance sheet.

3/ Excludes 5 acres and approximately 131k square feet currently classified as land held for development on our consolidated balance sheet.

4/ Includes 11 acres ($3.9 million based on expected gross proceeds) included in property held for sale September 30, 2015.

5/ Includes 33 acres and approximately 460k square feet currently classified as development in process on our consolidated balance sheet.

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

Square Footage Buildout of Core

Development Land 1/

Land Held for Development (dollars in thousands)

sort

21

Venture's Books

Total Total

Joint Venture Own % Assets Debt Liabilities

Highwoods DLF Forum, LLC 25.0% 94,245$ 71,700$ 74,787$

Plaza Colonnade, LLC 50.0% 61,396 53,918 55,808

Highwoods DLF 98/29, LLC 22.8% 25,949 - 1,685

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 11,560 - 279

4600 Madison Associates, LP 12.5% 10,863 8,532 9,658

Concourse Center Associates, LLC 50.0% 10,644 7,125 7,175

Kessinger/Hunter, LLC 26.5% 4,319 - 499

Highwoods KC Glenridge Land, LLC 1/ 39.9% 196 - 7

Highwoods KC Glenridge Office, LLC 1/ 40.0% 119 - 36

Total 219,291$ 141,275$ 149,934$

Highwoods' Share of Joint Venture

Total Total

Joint Venture Own % Assets Debt Liabilities

Highwoods DLF Forum, LLC 25.0% 23,559$ 17,924$ 18,695$

Plaza Colonnade, LLC 50.0% 30,698 26,959 27,904

Highwoods DLF 98/29, LLC 22.8% 5,919 - 384

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 4,963 - 120

4600 Madison Associates, LP 12.5% 1,358 1,067 1,207

Concourse Center Associates, LLC 50.0% 5,322 3,563 3,588

Kessinger/Hunter, LLC 26.5% 1,145 - 132

Highwoods KC Glenridge Land, LLC 1/ 39.9% 78 - 3

Highwoods KC Glenridge Office, LLC 1/ 40.0% 48 - 14

Total 2/ 73,090$ 49,513$ 52,047$

1/ Highwoods KC Glenridge Office, LLC and Highwoods KC Glenridge Land, LLC joint ventures collectively sold their net assets

to an unrelated third party during 2Q '15.

2/ Our share of equity from these tables will not equal investments in and advances to unconsolidated affiliates on the

Consolidated Balance Sheets due to various purchase accounting and related adjustments, which are not reflected in the

joint ventures' stand-alone financial statements.

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

22

Joint Venture Own % Revenue

Operating

Expense Interest Depr/ Amort

Net Income/

(Loss)

Highwoods DLF Forum, LLC 25.0% 3,723$ 1,325$ 439$ 1,091$ 868$

Plaza Colonnade, LLC 50.0% 3,116 1,094 721 683 618

Kessinger/Hunter, LLC 26.5% 1,720 1,116 - 146 458

SF-HIW Harborview Plaza, L.P. 1/ 20.0% 1,292 649 291 410 (58)

Highwoods DLF 98/29, LLC 2/ 22.8% 1,270 920 - 347 3

4600 Madison Associates, LP 12.5% 1,030 588 147 366 (71)

Concourse Center Associates, LLC 50.0% 194 126 47 85 (64)

Highwoods DLF 97/26 DLF 99/32, LP 42.9% - 152 - 65 (217)

Highwoods KC Glenridge Land, LLC 3/ 39.9% - 2 - - (2)

Highwoods KC Glenridge Office, LLC 3/ 40.0% (22) 13 - - (35)

Total 12,323$ 5,985$ 1,645$ 3,193$ 1,500$


Operating


Net Income/

(Loss)

Highwoods DLF Forum, LLC 25.0% 931$ 332$ 110$ 273$ 216$

Plaza Colonnade, LLC 50.0% 1,558 547 360 341 310

Kessinger/Hunter, LLC 26.5% 456 295 - 39 122

SF-HIW Harborview Plaza, L.P. 1/ 20.0% 259 130 58 82 (11)

Highwoods DLF 98/29, LLC 2/ 22.8% 290 210 - 79 1

4600 Madison Associates, LP 12.5% 129 74 18 46 (9)

Concourse Center Associates, LLC 50.0% 97 63 24 42 (32)

Highwoods DLF 97/26 DLF 99/32, LP 42.9% - 65 - 27 (92)

Highwoods KC Glenridge Land, LLC 3/ 39.9% - 1 - - (1)

Highwoods KC Glenridge Office, LLC 3/ 40.0% (9) 5 - - (14)

Total 4/ 5/ 3,711$ 1,722$ 570$ 929$ 490$

1/ We sold our 20% interest in the joint venture to a third party partner in 3Q '15.

2/ We acquired our partner's 77.2% interest in a building in Orlando during 2Q '15. Our portion of the gain on sale was recorded as a reduction to

real estate assets.

3/ Highwoods KC Glenridge Office, LLC and Highwoods KC Glenridge Land, LLC joint ventures collectively sold their net assets to an unrelated

third party during 2Q '15.

4/ Our share of depreciation and amortization from these tables will not equal depreciation and amortization of real estate assets for unconsolidated

affiliates on the Statement of Funds from Operations due to various purchase accounting and related adjustments, which are not reflected in the


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

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

financial statements.

Venture's Books


Unconsolidated Joint Ventures Income Quarter Ended (dollars in thousands)

23

Venture's Books


Operating


Gain/(Loss)

on Sale

Net Income/

(Loss)

Highwoods DLF Forum, LLC 25.0% 11,139$ 3,807$ 1,295$ 3,248$ -$ 2,789$

Plaza Colonnade, LLC 50.0% 9,225 3,081 2,176 2,026 - 1,942

Highwoods DLF 98/29, LLC 1/ 22.8% 5,075 3,161 1,390 1,258 13,696 12,962

Kessinger/Hunter, LLC 26.5% 4,789 3,322 - 438 - 1,029

4600 Madison Associates, LP 12.5% 3,135 1,836 423 1,070 - (194)

SF-HIW Harborview Plaza, L.P. 2/ 20.0% 1,754 870 395 549 - (60)

Highwoods KC Glenridge Office, LLC 3/ 40.0% 1,113 760 - 354 (312) (313)

Concourse Center Associates, LLC 50.0% 613 379 147 262 - (175)

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 134 463 - 213 2,127 1,585

Highwoods KC Glenridge Land, LLC 3/ 39.9% - 4 - - 2,670 2,666

Total 36,977$ 17,683$ 5,826$ 9,418$ 18,181$ 22,231$



Operating


Gain/(Loss)

on Sale

Net Income/

(Loss)

Highwoods DLF Forum, LLC 25.0% 2,785$ 952$ 324$ 812$ -$ 697$

Plaza Colonnade, LLC 50.0% 4,613 1,541 1,088 1,013 - 971

Highwoods DLF 98/29, LLC 1/ 22.8% 1,158 721 317 287 - (167)

Kessinger/Hunter, LLC 26.5% 1,269 880 - 116 - 273

4600 Madison Associates, LP 12.5% 392 230 53 134 - (25)

SF-HIW Harborview Plaza, L.P. 2/ 20.0% 351 174 79 110 - (12)

Highwoods KC Glenridge Office, LLC 3/ 40.0% 445 304 - 142 (125) (126)

Concourse Center Associates, LLC 50.0% 307 190 74 131 - (88)

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 58 199 - 91 1,071 839

Highwoods KC Glenridge Land, LLC 3/ 39.9% - 2 - - 1,066 1,064

Total 4/ 5/ 11,378$ 5,193$ 1,935$ 2,836$ 2,012$ 3,426$

1/ We acquired our partner's 77.2% interest in a building in Orlando during 2Q '15. Our portion of the gain on sale was recorded as a reduction to

real estate assets.

2/ We sold our 20% interest in the joint venture to a third party partner in 3Q '15.

3/ Highwoods KC Glenridge Office, LLC and Highwoods KC Glenridge Land, LLC joint ventures collectively sold their net assets to an unrelated

third party in 2Q '15.

4/ Our share of depreciation and amortization from these tables will not equal depreciation and amortization of real estate assets for unconsolidated

affiliates on the Statement of Funds from Operations due to various purchase accounting and related adjustments, which are not reflected in the


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

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

financial statements.

Unconsolidated Joint Ventures Income Year Ended 12/31/14 (dollars in thousands)Unconsolidated Joint Ventures Income Six Months Ended Unconsolidated Joint Ventures Income Nine Months Ended (dollars in thousands)

24

Loan

Interest Maturity Balance

Joint Venture Own % Lender Rate Date 9/30/15

Plaza Colonnade, LLC 50.0% MetLife 5.72% Jan-17 41,893$

Plaza Colonnade, LLC 50.0% Tax Increment Financing 3.94% Mar-24 12,025

5.32% 53,918

Highwoods DLF Forum, LLC 25.0% Fifth Third Bank 2.09% Nov-18 71,700

4600 Madison Associates, LP 12.5% State Farm 6.85% Apr-18 7,384

4600 Madison Associates, LP 12.5% Partner Loan 1/ 6.85% Apr-18 1,148

Concourse Center Associates, LLC 50.0% Wells Fargo 2.44% Jul-16 7,125

2.58% 87,357

Total/Weighted Average 3.63% 141,275$

Highwoods' share of the above 49,513$

1/ This debt represents an obligation of the joint venture.

Unconsolidated Joint Ventures Mortgage Debt Detail (dollars in thousands)

25

Summary:

Percentage of

Annualized

Rentable Cash

Market Square Feet Occupancy Revenue 2/ 3/

Kansas City 553,000 92.9% 40.5%

Raleigh 635,000 95.0% 28.2%

Richmond 345,000 100.0% 20.0%

Orlando 306,000 72.3% 8.7%

Greensboro 118,000 39.5% 2.6%

Total 1,957,000 88.4% 100.0%

Lease Expirations: Percent of

Rentable Percent of Annualized Average Annualized

Square Feet Rentable Cash Rental Cash

Year Expiring Square Feet Revenue 2/ Rate Revenue 2/

2015 22,762 1.3% 123$ 5.40$ 0.3%

2016 80,828 4.7% 1,975 24.43 4.8%

2017 558,118 32.2% 14,716 26.37 36.1%

2018 100,705 5.8% 2,417 24.00 5.9%

2019 165,609 9.6% 3,613 21.82 8.9%

2020 154,931 8.9% 3,262 21.05 8.0%

2021 44,166 2.6% 896 20.29 2.2%

2022 36,734 2.1% 975 26.54 2.4%

2023 23,880 1.4% 695 29.10 1.7%

2024 315,317 18.2% 4,935 15.65 12.1%

2025 and thereafter 228,052 13.2% 7,156 31.38 17.6%

1,731,102 100.0% 40,763$ 23.55$ 100.0%

Dispositions:

1/ Highwoods' in-service joint venture portfolio consists solely of office properties, including 345,000 square feet of properties in

Richmond owned by a joint venture that is consolidated.



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

4/ Gross sales price includes Highwoods' share only.

5/ Includes $1.4 million for 7 acres of development land.

Joint Ventures Summary, Lease Expirations, and Dispositions Activity 1/ (dollars in thousands)

sort

Date Square Gross Sales

Name Own % Market Sold Footage Occupancy Price 4/

First quarter 2015:

Sand Lake 42.9% Orlando 3/13/15 42,000 85.9% 3,016$

Second quarter 2015:

Glenridge 40.0% Atlanta 6/19/15 186,000 63.9% 9,800$ 5/

Third quarter 2015:

Harborview 20.0% Tampa 9/25/15 205,000 96.0% 6,919$

26

supplemental information...jed reagan the company 949-640-8780 wells fargo securities, llc highwoods...

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