Highwoods Properties Announces $162 Million in Secured Financing Commitments

Business Wire, June 02, 2009

Prepays Secured Loan for $107 Million

RALEIGH, N.C. -- Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, today announced that it has obtained two fully executed loan commitments:

• $115.0 million, 6.5-year secured loan provided by New York Life Insurance Company at a fixed rate of 6.875%, secured by a pool of ten assets in Nashville, Raleigh and Tampa.
• $47.3 million, 7-year secured loan arranged by RBC Capital Advisors at a fixed rate of 7.5%, secured by the office portion of RBC Plaza in Raleigh.

Both loans are subject to definitive documentation and customary conditions and are expected to close within the next 60 days. The proceeds will be used to repay debt and for general corporate purposes.

Ed Fritsch, president and chief executive officer of Highwoods, stated, “We are very pleased with these loan commitments, which will further fortify our already healthy balance sheet, enhance our liquidity and position Highwoods to take advantage of future growth opportunities.”

The Company has also prepaid in full a secured loan for $107 million, which carried a rate of 7.8% and was originally scheduled to mature in November 2009. There were no prepayment penalties.

About the Company

Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. At March 31, 2009, the Company owned or had an interest in 382 in-service office, industrial and retail properties encompassing approximately 35.4 million square feet. Highwoods also owned 580 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Missouri, Mississippi, North Carolina, South Carolina, Tennessee and Virginia.

Certain matters discussed in this press release, such as the terms and timing of anticipated financing activity, are forward-looking statements within the meaning of the federal securities laws. These statements are distinguished by use of the words "will", "expect", "intend" and words of similar meaning. 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, the following: the financial condition of our customers could deteriorate; speculative development by others could result in excessive supply of properties relative to customer demand; development, acquisition, reinvestment, disposition or joint venture projects may not be completed as quickly or on as favorable terms as anticipated; we may not be able to lease or re-lease space as quickly as anticipated or on as favorable terms as old leases; difficulties in obtaining additional capital to satisfy our future cash needs or increases in interest rates could adversely impact our ability to fund important business initiatives and increase our debt service costs; our Southeastern and Midwestern markets may suffer declines in economic growth; our banking and joint venture partners may suffer financial difficulties that adversely impact their ability to satisfy their contractual obligations to us; and others detailed in the Company’s 2008 Annual Report on Form 10-K and subsequent SEC reports.