InsightfulValue
← Home

Highwoods Properties
Highwoods Properties

Real estate / REIT Offices


Risks
1. Concentration Risk: Highwoods Properties has a fairly large portfolio focused on office, industrial, and retail properties in select markets, which means its investment performance in any one market can have a disproportionate effect on its overall portfolio.

2. Interest Rate Risk: As a REIT, most of Highwoods Properties’ revenue comes from rental income which are linked to interest rates. Therefore, if there is a sudden increase in interest rates, it could result in reduced tenant demand for Highwoods’ properties which would, in turn, lead to a decrease in revenue.

3. Market Risk: The biggest risk associated with Highwoods Properties’ strategy is that of the overall market in the regions where it is invested. Local economic changes in a given area could lead to declines in occupancy and rental income. Additionally, changes in demand for certain types of properties could lead to overvaluation and increasing competition.

© 2024 - 2025 InsightfulValue.com. All rights reserved. Legal