Highwoods Properties Provides 2007 FFO Guidance.

Revises 2006 FFO Guidance Upward

Will Release Fourth Quarter and Year End 2006 Financial and Operating Results - February 14, 2007

Conference Call - Thursday, February 15 at 11:00 a.m.

RALEIGH, N.C. -- Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, today announced guidance for Funds from Operations ("FFO") for full year 2007 and revised FFO guidance upward for full year 2006.

2007 Funds from Operations Outlook

For 2007, the Company expects FFO per diluted share to be in the range of $2.40 to $2.65. This estimate reflects management's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, operating and general and administrative expenses, interest rates, land sale gains, and the potential impact of development deliveries and property dispositions and acquisitions. This estimate assumes 62.5 million diluted shares outstanding and excludes any gains or impairments associated with potential depreciable property dispositions, as well as any one-time, non-recurring charges or credits that may occur during the year. Factors that could cause actual 2007 FFO results to differ materially from Highwoods' current expectations are discussed below and are also detailed in the Company's 2005 Annual Report on Form 10-K.

Management's outlook for 2007 is based on the following operating assumptions:

                    Low     High
Year End Occupancy  91.0%   92.5%
SS GAAP NOI Growth  1.5%    2.5%
G&A             $34.5M  $36.0M
Termination Fees    $1.0M   $3.0M
Land Sale Gains     $5.0M   $16.0M
Dispositions        $100M   $150M
Acquisitions        $10M    $30M

In 2007, the Company also expects to start between $100 million and $200 million of new development and deliver approximately $153 million of completed development projects.

2006 Funds from Operations Outlook

Based on a review of preliminary 2006 operational results, the Company now expects 2006 full-year FFO per diluted share, as adjusted, to be between $2.45 and $2.47, based on 61.3 million diluted shares. This estimate includes land sale gains of approximately $12.0 million, or $0.20 per diluted share (of which approximately $7.0 million, or $0.11 per diluted share, occurred in the fourth quarter), and $1.6 million of income, or $0.03 per diluted share, from the settlement in the fourth quarter of a prior year tenant bankruptcy claim. This FFO estimate excludes: 1) $0.04 per diluted share for impairment on depreciable assets, 2) $0.03 per diluted share for preferred stock redemption charge, and 3) $0.03 per diluted share for debt extinguishment charges. These preliminary 2006 adjusted FFO results are subject to change and are not audited. Factors that could cause final adjusted 2006 FFO results to differ materially from Highwoods' current expectations are discussed below and are also detailed in the Company's 2005 Annual Report on Form 10-K.

Fourth Quarter and Year End 2006 Financial and Operating Results Conference Call

The Company will release unaudited financial results and operating statistics for the fourth quarter and full year of 2006 on Wednesday, February 14, after the market closes. A conference call will be held the next day, Thursday, February 15, at 11:00 a.m. Eastern time.

For US/Canada callers, dial [phone] and international callers dial [phone]. A live listen-only Web cast can be accessed through the Company's Web site at www.highwoods.com under the "Investor Relations" section.

Telephone, Web and Pod cast replays will be available two hours after the completion of the call. The telephone replay will be available for one week beginning at 2:00 p.m. Eastern time. Dial-in numbers for the replay are [phone] US/Canada, [phone] international. The conference ID is 6119737.

Non-GAAP Information

We believe that FFO and FFO per share are beneficial to management and investors and are important indicators of the performance of any equity REIT. Because FFO and FFO per share calculations exclude such factors as depreciation and amortization of real estate assets and gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful life estimates), they facilitate comparisons of operating performance between periods and between other REITs. Our management believes that historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. As a result, management believes that the use of FFO and FFO per share, together with the required GAAP presentations, provide a more complete understanding of our performance relative to our competitors and a more informed and appropriate basis on which to make decisions involving operating, financing and investing activities.

FFO and FFO per share as disclosed by other REITs may not be comparable to our calculation of FFO and FFO per share as described below. FFO and FFO per share are non-GAAP financial measures and therefore do not represent net income or net income per share as defined by GAAP. Net income and net income per share as defined by GAAP are the most relevant measures in determining our operating performance because FFO and FFO per share include adjustments that investors may deem subjective, such as adding back expenses such as depreciation and amortization.

Furthermore, FFO per share does not depict the amount that accrues directly to the stockholders' benefit. Accordingly, FFO and FFO per share should never be considered as alternatives to net income or net income per share as indicators of our operating performance.

The calculation of FFO as defined by the National Association of Real Estate Investment Trusts is as follows:

* Net income (loss) computed in accordance with GAAP;

* Less dividends to holders of preferred stock and less excess of preferred stock redemption cost over carrying value;

* Plus depreciation and amortization of assets uniquely significant to the real estate industry;

* Less gains, or plus losses, from sales of depreciable operating properties (but excluding impairment losses) and excluding items that are classified as extraordinary items under GAAP;

* Plus or minus adjustments for unconsolidated partnerships and joint ventures (to reflect funds from operations on the same basis); and

* Plus or minus adjustments for depreciation and amortization and gains/(losses) on sales and minority interest related to discontinued operations.

In calculating FFO, the Company also adds back minority interest in the income from its operating partnership, which we believe is consistent with standard industry practice for REITs that operate through an UPREIT structure. The Company believes that it is important to present FFO on an as-converted basis since all of the operating partnership units are redeemable on a one-for-one basis for shares of the Company's common stock.

Certain matters discussed in this press release, such as expected 2006 operational results and the related assumptions underlying our expected operational results, are forward-looking statements within the meaning of the federal securities laws. These statements are distinguished by use of the words "will", "expect", "intends" 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; unwaived defaults, if any, under our debt instruments could result in an acceleration of some of our outstanding debt; speculative development by others could result in excessive supply of office properties relative to customer demand; we may not be able to lease or re-lease space quickly or on as favorable terms as old leases; unexpected difficulties in obtaining additional capital to satisfy our future cash needs or unexpected increases in interest rates would increase our debt service costs; and others detailed in the Company's 2005 Annual Report on Form 10-K and subsequent SEC reports.

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 September 30, 2006, the Company owned or had an interest in 414 in-service office, industrial and retail properties encompassing approximately 34.9 million square feet. Highwoods also owns 798 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, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our Web site at www.highwoods.com.