Highwoods Properties, Inc. (NYSE:HIW) Q1 2023 Earnings Call Transcript

Peter Abramowitz: Ted mentioned possibly some opportunities on the acquisition side. I know there’s nothing in your guidance, and maybe it’s kind of looking a little bit further out. Could you just quantify how we should think about what you’re targeting in terms of your returns on those? I know there’s not a ton of deal activity in the market today on the financing side. So cost of capital isn’t totally clear. But just wondering if you can kind of quantify your return hurdles if you do start to get active.

Ted Klinck: Yes. I think you said we’re really not looking at anything right now. We’re being patient, trying to replenish our dry powder, get some dispose over the goal line. So I think we’re going to be patient and the bar has definitely been raised whether it be obviously development or acquisitions. So I don’t think we’ve had the cost of capital discussion because we don’t have our pencils are sorted down on the acquisition side right now. And there are a whole lot of assets that are out there right now. And we’re — what we’ve got is our well-developed wish list that we’re tracking are — actually I said there are a couple of assets that are out there we’re tracking that would be good proxy for pricing if and when they trade. But right now, we’re sort of sitting back and waiting. We think there may be better opportunities a little bit down the road versus today. So I really don’t have an answer for you on the cost of capital question.

Operator: And we have no further questions on the phone line.

Ted Klinck: Well, I want to thank you, everybody, for being on your — on the line today. Thanks for your interest in Highwoods. And we look forward to seeing many of you at NAREIT in June. Thanks so much.

Operator: And that concludes today’s call. We thank you for your participation and ask you to please disconnect your lines.