owns/ manages income-producing commercial real estate payout > 90% of income in dividend no...
TRANSCRIPT
• Owns/ manages income-producing commercial real estate
• Payout > 90% of Income in Dividend
• No corporate taxes
• > 75% of Assets Real Estate
• >100 Shareholders
REIT 101
Source: NAREIT
FinanceAnalysis
Internal/External Reporting
Capital (Debt/Equity) Raising
DevelopmentArchitectureEngineeringConstructionProject Management
InvestmentsAcquisition Sourcing
UnderwritingTransaction Structuring
Dispositions
Asset Mgmt/OperationsLeasing
Property ManagementConstruction
'05 '06 '07 '08 '09 '10 '11 '12 '13
$356M
$241
$144
$57
$89
$125
$20
$158
$286
$1.5B Dispositions
HIW Dispositions 7.0% Cap Rate
Portfolio
'05 '06 '07 '08 '09 '10 '11 '12 '13
$4M $11 $9 $43 $25
$65
$309 $296
$549
$1.3B Acquisitions
HIW Acquisitions 8.0% GAAP Cap Rate
Portfolio
Source: REIS and HIW Public Filings
HIW Development Announcements
'05 '06 '07 '08 '09 '10 '11 '12 '13
$78M
$362
$127
$54
$4 $13
$72
$8
$206
$924M Development
Announcements
9.7% GAAP Yield
Portfolio
Source: REIS and HIW Public Filings
HIW DispositionsHIW Acquisitions
'05 '06 '07 '08 '09 '10 '11 '12 '13 $-
$100
$200
$300
$400
$500
$600
$-
$50
$100
$150
$200
$106B
$144
$212
$59
$17 $47
$66 $81 $84
$4M $11 $9 $43 $25 $65
$309 $296
$549
$356M
$241
$144
$57
$89
$125
$20
$158
$286
US Transactions
Portfolio
Sold when others were buying
Acquired as market improved
Phases are 1-3 years
• Stabilizing fundamentals
• Improving demand • Strong demand • Demand peaks • Recession
• Declining interest rates
• Rental growth • Strong rental growth • Construction continues
• Increasing vacancy
• Capital Scarcity • Improving capital availability
• Accelerating construction
• Rents turn down • Construction stops
• No new construction • Limited new construction
• Plentiful capital availability
• Capital remains available
• Capital unavailable
Phase FourPeak
Phase FiveDownturn
Five Phases of the Real Estate Cycle
Phase OneStabilization
Phase TwoGrowth
Phase ThreeMaturity
Peak Demand
WE ARE HERE
Source: Resource Real Estate Global Property Securities – Feb 2014
Real Estate Trends
Source: REIS and HIW Public Filings
JLL Office Cycle Clock
Peaking Falling
Rising Bottoming
12
3
6
9
Real Estate Trends
JLL Office Cycle Clock Q2 ‘14
Peaking Falling
Rising BottomingOffice
Retail
Industrial
Multi-Family
Landlord Favorable Tenant Favorable
Real Estate Trends
JLL Office Cycle Clock Q2 ‘14
Peaking Falling
Rising Bottoming
Baltimore, Detroit, Hampton Roads, Kansas City, Sacramento
New York, Portland
Cleveland, Minneapolis, Orange County, Phoenix
Charlotte, Chicago, Cincinnati, Fairfield County, Fort Lauderdale, San Antonio, St. Louis, Westchester County
New Jersey
West Palm Beach
Columbus, Long Island, Orlando, Washington, DC
Houston, San Francisco, Silicon Valley
Dallas, San Francisco Peninsula
Miami, Milwaukee, Oakland-East Bay, Philadelphia, Raleigh-Durham, Richmond, San Diego
Austin, Pittsburgh,Seattle-Bellevue
Atlanta, Indianapolis, Jacksonville
Boston, Denver
Real Estate Trends
Source: Wells Fargo Securities Commercial Real Estate Chartbook Q214(Reis, Inc., RCA Analytics, IHS Global Insight, U.S. Dept. of Labor and Wells Fargo Securities, LLC)
Real Estate Trends