Highwoods Properties reported second-quarter earnings late Thursday that beat Wall Street estimates as the company leased more than a million square feet of office space in the quarter.
The Raleigh real estate investment trust reported funds from operations, a profitability measure for REITs, of 70 cents per share for the quarter, compared with the 69 cents per share the company reported in the second quarter of 2012.
That beat the consensus of Wall Street analysts by a penny. Highwoods adjusted its funds from operations guidance for the year from $2.68 to $2.81 per share to $2.76 to $2.84 per share. CEO Ed Fritsch said in a statement that the increase was a result of Highwoods announcement earlier this week that it has acquired its joint venture partner’s 60 percent interest in five Orlando office buildings for $113.3 million.
Highwoods, the Triangle’s largest office landlord, also increased its acquisitions outlook for the year, to between $400 million and $550 million.
The company acquired nearly $350 million in office properties during the first half of the year while selling $68.4 million in assets and announcing nearly $60 million in new development projects.
The company ended the quarter with an occupancy rate of 90 percent, down from 90.7 percent a year ago.
Highwoods shares closed Thursday at $37.20, up 16 cents. The stock is up 11 percent this year.