SUPPLEMENTAL INFORMATION Second Quarter 2017 Table of Contents - - PDF document

SUPPLEMENTAL INFORMATION

Second Quarter 2017

Page Summary and Corporate Information……………………………………………………………………………………………………………………………. i, ii, iii Consolidated Statements of Income……………………………………………………………………………………………………………………………………………. 1 Funds from Operations and Additional Information……………………………………………………………………………………………………………….. 2 Consolidated Balance Sheets……………………………………………………………………………………………………………………………………….. 3 Revenue Detail; Discontinued Operations Detail……………...………………………………………………………………………………………………………………………………….. 4 Capitalization and Debt-to-EBITDA…………………………………………………………………………………………………………………………………………………………….. 5 Mortgages and Notes Payable Summary………………………………………………………………………………………………………………………………. 6 Mortgages and Notes Payable Detail…………………………………………………………………………………………………………………………………. 7 Portfolio Summary…………………………………………………………………………………………………………………………………………………. 8, 9, 10 Occupancy Trends………………………………………………………………………………………………………………………………………………………… 11 Office Leasing Statistics...…………………………………………………………………………………………………………………………………………. 12 Office Leasing Statistics and Rental Rate Comparisons by Market………………………………………………………………………………………… 13 Office Lease Expirations……………………………………………………………………………………………………………..……………………………………. 14 Office Lease Expirations by Market by Year………………………………………………………………………………………………………………………… 15 Customer Diversification…………………………………………………………………………………………………………………………………………… 16 Same Property Performance………………………………………………………………………………………………………………………………………. 17 Disposition Activity………………………………………………………………………………………………………………………………………………… 18 Development Activity……………………………………………………………………………………………………………………………….………………. 19 Land Held for Development………………………………………………………………………………………………………………………………………… 20 Joint Venture Financial Information and Summary………………………………………………………………………………………………………………………… 21 The information within refers to all Highwoods Properties' wholly-owned entities unless noted otherwise. Wholly-owned entities include properties classified as both continuing operations and discontinued operations and exclude properties recorded on our Balance Sheet that relate to joint venture investments that are consolidated under GAAP. All financial information contained in this document is unaudited. In addition, certain matters presented in this supplemental, including estimates

• f net operating income, pre-leasing commitments and the cost, timing and stabilization of announced development projects, are forward-looking

statements within the meaning of the federal securities laws. 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, general economic conditions, local real estate conditions, the timely development and lease-up of properties, and other risks listed at the end of our second quarter earnings release and detailed from time to time in the Company’s SEC reports. Highwoods assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events. This supplemental also includes non-GAAP financial measures, such as funds from operations (FFO), earnings before interest, taxes, depreciation and amortization (EBITDA) and net operating income (NOI). Definitions of FFO, EBITDA and NOI and an explanation of management's view of the usefulness and risks of FFO, EBITDA and NOI can be found towards the end of our second quarter earnings release. COVER MetLife Global Technology Campus Raleigh, NC

Table of Contents

TOC

Three Months Ended 6/30/17 6/30/16 Financial: Revenues 177,283 $ 166,860 $ Net operating income (NOI) 118,429 $ 109,345 $ Same property cash NOI growth 5.3% 4.5% Funds from operations per share 0.90 $ 0.82 $ Weighted average common shares outstanding, diluted 105,386 100,628 Balance Sheet: Leverage (includes preferred stock) based on gross book assets 35.3% 37.5% Debt-to-EBITDA 4.56x 5.13x Debt plus preferred stock-to-EBITDA 4.62x 5.20x Unencumbered NOI % 95.8% 92.8% Credit facility availability 364,000 $ 192,000 $ Operations: Quarter end occupancy 92.7% 92.5% Office square feet leased 575 907 Office GAAP rent growth 1/ 15.1% 15.4% Average office cash rental rate per square foot for in-place leases 24.41 $ 23.80 $ Six Months Ended 6/30/17 Investment Activity: Building dispositions 13,000 $ Development pipeline 439,980 $ Pipeline pre-leased % 71.8%

1/ GAAP rent growth is calculated by comparing average cash rent psf over the term (GAAP rent) of the new lease to the average cash rent psf over the term related to the previous lease in the same space. Adjustments are made if and to the extent necessary to illustrate the current and prior deal on a consistent gross lease basis.

Summary (amounts in thousands, except percentages, ratios, and per share amounts)

i

Board of Directors Division Officers

Chuck Anderson Jim Bacchetta Gene Anderson Vice President, Atlanta Carlos Evans Rick Dehnert Ed Fritsch Vice President, Greensboro David Hartzell, Ph.D. Steve Garrity Sherry Kellett Vice President, Orlando Temple Sloan, Jr., Chair Steve Guinn Vice President, Memphis

Corporate Officers

Skip Hill Vice President, Raleigh Dan Clemmens Walton Makepeace Vice President, Chief Accounting Officer Vice President, Richmond Hugh Esleeck Brian Reames Vice President, Treasurer Senior Vice President, Nashville Ed Fritsch Andy Wisniewski President, Chief Executive Officer Vice President, Pittsburgh Ted Klinck Dan Woodward Executive Vice President, Chief Operating and Vice President, Tampa Investment Officer Carman Liuzzo Senior Vice President, Investments Brendan Maiorana Senior Vice President, Finance and Investor Relations Art McCann Vice President, Chief Information Officer Jeff Miller Executive Vice President, General Counsel and Secretary Mark Mulhern Executive Vice President, Chief Financial Officer Randy Roberson Senior Vice President, Development Mike Starchville Senior Vice President, Asset Management

Corporate Information

ii

Research Coverage Corporate Headquarters

Highwoods Properties, Inc. Bank of America/Merrill Lynch Morgan Stanley 3100 Smoketree Court, Suite 600 Jamie Feldman Sumit Sharma Raleigh, NC 27604 646-855-5808 212-761-7567 919-872-4924 BTIG RW Baird

Stock Exchange

Tom Catherwood David Rodgers NYSE: HIW 212-738-6140 216-737-7341

Investor Relations

Capital One Securities Stifel Nicolaus Brendan Maiorana Chris Lucas John Guinee Senior Vice President, Finance and Investor Relations 571-633-8151 443-224-1307 Phone: 919-431-1529 Ryan Wineman Erin Aslakson Fax: 919-431-1439 571-633-8414 443-224-1350 Brendan.Maiorana@highwoods.com http://www.highwoods.com/ Citigroup Global Markets SunTrust Robinson Humphrey Michael Bilerman Michael Lewis

Information Request

212-816-1383 212-319-5659 To request a Supplemental Package or Annual Report Emmanuel Korchman

• r to be added to our e-mail distribution list, please contact

212-816-1382 Investor Relations. D.A. Davidson & Co. Barry Oxford

The Company

212-240-9871 Highwoods Properties, headquartered in Raleigh, is a publicly traded (NYSE:HIW) real estate investment trust (“REIT”) and Green Street Advisors a member of the S&P MidCap 400 Index. The Company is a Jed Reagan fully-integrated office REIT that owns, develops, acquires, leases and 949-640-8780 manages properties primarily in the best business districts (BBDs)

• f Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh,

Jefferies & Company, Inc. Raleigh, Richmond and Tampa. For more information about Jonathan Petersen Highwoods Properties, please visit our website at: 212-284-1705 www.highwoods.com.

Corporate Information

iii

6/30/17 6/30/16 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Rental and other revenues 346,691 $ 331,719 $ 177,283 $ 169,408 $ 167,646 $ 166,269 $ 166,860 $ Operating expenses: Rental property and other expenses 116,250 115,095 58,854 57,396 57,370 58,620 57,515 Depreciation and amortization 111,961 108,811 55,816 56,145 58,406 52,923 55,317 General and administrative 20,540 19,464 9,050 11,490 8,826 9,863 8,327 Total operating expenses 248,751 243,370 123,720 125,031 124,602 121,406 121,159 Interest expense: Contractual 32,368 38,389 15,345 17,023 17,031 17,722 18,674 Amortization of debt issuance costs 1,649 1,801 809 840 861 844 811 34,017 40,190 16,154 17,863 17,892 18,566 19,485 Other income: Interest and other income 1,248 1,051 564 684 454 833 534 Gains on debt extinguishment 826

• 826
• 2,074

1,051 1,390 684 454 833 534 Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates 65,997 49,210 38,799 27,198 25,606 27,130 26,750 Gains on disposition of property 5,332 10,258

• 5,332

647 3,902 5,861 Equity in earnings of unconsolidated affiliates 1,710 2,202 755 955 783 2,808 917 Income from continuing operations 73,039 61,670 39,554 33,485 27,036 33,840 33,528 Discontinued operations: Income from discontinued operations

• 4,097
• Net gains on disposition of discontinued operations
• 414,496
• 418,593
• Net income

73,039 480,263 39,554 33,485 27,036 33,840 33,528 Net (income) attributable to noncontrolling interests in the Operating Partnership (1,931) (13,950) (1,043) (888) (720) (926) (939) Net (income) attributable to noncontrolling interests in consolidated affiliates (599) (622) (299) (300) (312) (319) (314) Dividends on Preferred Stock (1,246) (1,253) (623) (623) (624) (624) (627) Net income available for common stockholders 69,263 $ 464,438 $ 37,589 $ 31,674 $ 25,380 $ 31,971 $ 31,648 $ Earnings per Common Share – basic: Income from continuing operations available for common stockholders 0.68 $ 0.60 $ 0.37 $ 0.31 $ 0.25 $ 0.32 $ 0.32 $ Income from discontinued operations available for common stockholders

• 4.19
• Net income available for common stockholders

0.68 $ 4.79 $ 0.37 $ 0.31 $ 0.25 $ 0.32 $ 0.32 $ Weighted average Common Shares outstanding - basic 102,109 97,010 102,475 101,738 100,733 98,973 97,648 Earnings per Common Share - diluted: Income from continuing operations available for common stockholders 0.68 $ 0.60 $ 0.37 $ 0.31 $ 0.25 $ 0.32 $ 0.32 $ Income from discontinued operations available for common stockholders

• 4.18
• Net income available for common stockholders

0.68 $ 4.78 $ 0.37 $ 0.31 $ 0.25 $ 0.32 $ 0.32 $ Weighted average Common Shares outstanding - diluted 105,026 99,992 105,386 104,661 103,640 101,939 100,628 Dividends declared per Common Share 0.880 $ 0.850 $ 0.440 $ 0.440 $ 1.225 $ 0.425 $ 0.425 $ Net income available for common stockholders: Income from continuing operations available for common stockholders 69,263 $ 58,110 $ 37,589 $ 31,674 $ 25,380 $ 31,971 $ 31,648 $ Income from discontinued operations available for common stockholders

• 406,328
• Net income available for common stockholders

69,263 $ 464,438 $ 37,589 $ 31,674 $ 25,380 $ 31,971 $ 31,648 $ Six Months Ended Three Months Ended

Consolidated Statements of Income (amounts in thousands, except per share amounts)

1

Six Months Ended Three Months Ended 6/30/17 6/30/16 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Funds from operations: Net income 73,039 $ 480,263 $ 39,554 $ 33,485 $ 27,036 $ 33,840 $ 33,528 $ Net (income) attributable to noncontrolling interests in consolidated affiliates (599) (622) (299) (300) (312) (319) (314) Depreciation and amortization of real estate assets 110,591 107,477 55,116 55,475 57,753 52,303 54,680 (Gains) on disposition of depreciable properties (5,332) (8,915)

• (5,332)
• (5,861)

Unconsolidated affiliates: Depreciation and amortization of real estate assets 1,394 1,491 732 662 751 736 749 (Gains) on disposition of depreciable properties

• (331)
• (1,842)
• Discontinued operations:

(Gains) on disposition of depreciable properties

• (414,496)
• Funds from operations

179,093 164,867 95,103 83,990 85,228 84,718 82,782 Dividends on Preferred Stock (1,246) (1,253) (623) (623) (624) (624) (627) Funds from operations available for common stockholders 177,847 $ 163,614 $ 94,480 $ 83,367 $ 84,604 $ 84,094 $ 82,155 $ Funds from operations available for common stockholders per share 1.69 $ 1.64 $ 0.90 $ 0.80 $ 0.82 $ 0.82 $ 0.82 $ Weighted average shares outstanding 105,026 99,992 105,386 104,661 103,640 101,939 100,628 Additional information: 1/ 2/ Gains on debt extinguishment (826) $

• $

(826) $

• $
• $
• $
• $

Property acquisition costs

• 751
• Straight-line rental income

(15,203) (13,378) (9,085) (6,118) (5,328) (5,140) (6,786) Straight-line rental write-offs related to termination fees 42 334 42

• 1

210

• Amortization of lease incentives

840 1,101 443 397 405 273 390 Depreciation of non-real estate assets 1,114 1,081 571 543 525 495 514 Ground lease straight-line rent expense 200 192 99 101 101 105 95 Share-based compensation expense 4,837 4,550 1,054 3,783 839 862 994 Amortization of debt issuance costs 1,649 1,801 809 840 861 844 811 Amortization of accumulated other comprehensive (income)/loss (129) 158 (112) (17) 80 80 79 Amortization of above/(below) market leases and other adjustments (1,185) (2,280) (778) (407) (802) (693) (1,678) Non-incremental revenue generating capital expenditures incurred: 3/ Building improvements (13,313) (10,753) (6,948) (6,365) (16,900) (12,549) (7,173) 2nd generation tenant improvements (23,493) (23,507) (11,558) (11,935) (13,920) (14,078) (10,931) 2nd generation lease commissions (7,356) (9,435) (4,300) (3,056) (6,130) (7,028) (5,429) Common dividends and unit distributions paid (92,447) (84,735) (46,281) (46,166) (43,837) (43,177) (42,622) 1/ Includes those properties classified as discontinued operations. 2/ Increase or (decrease) to cash flows. 3/ Excludes capital expenditures (a) incurred within 12 months prior to the disposition date for buildings sold, (b) related to first generation leases and leases with respect to vacant space in acquired buildings, (c) building improvements that are recoverable from future operating cost savings, (d) building improvements that constitute part of the total investment cost disclosed in connection with an acquisition and (e) property re-developments.

Funds from Operations and Additional Information (amounts in thousands, except per share amounts)

2

6/30/17 12/31/16 Assets: Real estate assets, at cost: Land 470,185 $ 474,375 $ Buildings and tenant improvements 4,374,143 4,313,373 Development in-process 245,593 279,602 Land held for development 82,326 77,355 5,172,247 5,144,705 Less-accumulated depreciation (1,163,778) (1,134,103) Net real estate assets 4,008,469 4,010,602 Real estate and other assets, net, held for sale 54,543

• Cash and cash equivalents

13,346 49,490 Restricted cash 20,612 29,141 Accounts receivable, net of allowance of $376 and $624, respectively 15,701 17,372 Mortgages and notes receivable, net of allowance of $88 and $105, respectively 6,750 8,833 Accrued straight-line rents receivable, net of allowance of $205 and $692, respectively 185,632 172,829 Investments in and advances to unconsolidated affiliates 15,243 18,846 Deferred leasing costs, net of accumulated amortization of $147,744 and $140,081, respectively 205,256 213,500 Prepaid expenses and other assets, net of accumulated amortization of $21,517 and $19,904, respectively 34,947 40,437 Total Assets 4,560,499 $ 4,561,050 $ Liabilities, Noncontrolling Interests in the Operating Partnership and Equity: Mortgages and notes payable, net 2,005,038 $ 1,948,047 $ Accounts payable, accrued expenses and other liabilities 200,981 313,885 Liabilities held for sale 1,122

• Total Liabilities

2,207,141 2,261,932 Commitments and contingencies Noncontrolling interests in the Operating Partnership 143,646 144,802 Equity: Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 28,905 and 28,920 shares issued and outstanding, respectively 28,905 28,920 Common Stock, $.01 par value, 200,000,000 authorized shares; 103,236,237 and 101,665,554 shares issued and outstanding, respectively 1,032 1,017 Additional paid-in capital 2,926,128 2,850,881 Distributions in excess of net income available for common stockholders (770,101) (749,412) Accumulated other comprehensive income 6,046 4,949 Total Stockholders' Equity 2,192,010 2,136,355 Noncontrolling interests in consolidated affiliates 17,702 17,961 Total Equity 2,209,712 2,154,316 Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity 4,560,499 $ 4,561,050 $

Consolidated Balance Sheets (dollars in thousands)

3

Six Months Ended Three Months Ended 6/30/17 6/30/16 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Continuing Operations Revenue Detail: Rental and other revenues Contractual rents, net 290,519 $ 276,190 $ 146,990 $ 143,529 $ 144,109 $ 140,943 $ 138,958 $ Straight-line rental income, net 15,203 13,441 9,085 6,118 5,328 5,140 6,786 Cost recovery income, net 26,105 25,261 13,355 12,750 10,930 12,539 12,672 Lease termination fees 219 1,958 203 16 3 350 20 Other miscellaneous operating revenues 14,645 14,869 7,650 6,995 7,276 7,297 8,424 346,691 $ 331,719 $ 177,283 $ 169,408 $ 167,646 $ 166,269 $ 166,860 $ Discontinued Operations: Rental and other revenues

• $

8,484 $

• $
• $
• $
• $
• $

Operating expenses: Rental property and other expenses

• 3,334
• General and administrative
• 1,388
• Total operating expenses
• 4,722
• Interest expense
• 85
• Other income
• 420
• Income from discontinued operations
• 4,097
• Net gains on disposition of discontinued operations
• 414,496
• Total income from discontinued operations
• $

418,593 $

• $
• $
• $
• $
• $

Revenue Detail; Discontinued Operations Detail (dollars in thousands)

4

6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Mortgages and Notes Payable (see pages 6 & 7): 2,005,038 $ 2,042,486 $ 1,948,047 $ 1,901,066 $ 2,082,207 $ Preferred Stock (at liquidation value): Series A 8 5/8% Cumulative Redeemable 28,905 $ 28,905 $ 28,920 $ 28,920 $ 28,935 $ Common Shares and Units Outstanding: Common stock outstanding 103,236 102,018 101,666 100,204 98,571 Noncontrolling interest partnership units 2,833 2,837 2,839 2,840 2,867 Total Common Shares and Units outstanding 106,069 104,855 104,505 103,044 101,438 Stock price at period end 50.71 $ 49.13 $ 51.01 $ 52.12 $ 52.80 $ Market value of common equity 5,378,759 $ 5,151,526 $ 5,330,800 $ 5,370,653 $ 5,355,926 $ Total capitalization 7,412,702 $ 7,222,917 $ 7,307,767 $ 7,300,639 $ 7,467,068 $ Debt-to-EBITDA: Net income 39,554 $ 33,485 $ 27,036 $ 33,840 $ 33,528 $ Interest expense 16,154 17,863 17,892 18,566 19,485 Depreciation and amortization 55,816 56,145 58,406 52,923 55,317 Equity in earnings of unconsolidated affiliates (755) (955) (783) (2,808) (917) Gains on debt extinguishment (826)

• Gains on disposition of property
• (5,332)

(647) (3,902) (5,861) EBITDA 109,943 $ 101,206 $ 101,904 $ 98,619 $ 101,552 $ Annualized EBITDA 1/ 439,772 $ 404,824 $ 407,616 $ 394,476 $ 406,208 $ Mortgages and notes payable, net (Debt) 2,005,038 $ 2,042,486 $ 1,948,047 $ 1,901,066 $ 2,082,207 $ Preferred stock 28,905 28,905 28,920 28,920 28,935 Debt plus preferred stock 2,033,943 $ 2,071,391 $ 1,976,967 $ 1,929,986 $ 2,111,142 $ Debt-to-EBITDA 2/ 4.56x 5.05x 4.78x 4.82x 5.13x Debt plus preferred stock-to-EBITDA 3/ 4.62x 5.12x 4.85x 4.89x 5.20x 1/ Annualized EBITDA is EBITDA multiplied by four. 2/ Debt at quarter-end divided by annualized EBITDA. 3/ Debt plus preferred stock at quarter-end divided by annualized EBITDA.

Capitalization and Debt-to-EBITDA (dollars, shares and units in thousands)

5

Balances Outstanding: 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Secured: Conventional fixed rate 99,856 $ 127,358 $ 128,204 $ 129,013 $ 130,001 $ Unsecured - Fixed: Fixed rate bonds and notes 1,042,966 1,042,692 1,126,145 1,125,942 1,125,739 Bank term loan 1/ 225,000 225,000 225,000 225,000 225,000 Bank term loan 2/ 50,000

• Unsecured - fixed total

1,317,966 1,267,692 1,351,145 1,350,942 1,350,739 Unsecured - Floating: Bank term loan 200,000 200,000 200,000 200,000 200,000 Bank term loan 125,000 125,000 125,000 125,000 125,000 Bank term loan 150,000 200,000 150,000 75,000

• Bank term loan

10,000

• Credit facility 3/

111,000 131,000

• 28,000

283,000 Unsecured - floating total 596,000 656,000 475,000 428,000 608,000 Unsecured total 1,913,966 1,923,692 1,826,145 1,778,942 1,958,739 Total 2,013,822 $ 2,051,050 $ 1,954,349 $ 1,907,955 $ 2,088,740 $ Total Net of Debt Issuance Costs 2,005,038 $ 2,042,486 $ 1,948,047 $ 1,901,066 $ 2,082,207 $ End of Period Weighted Average Interest Rates: Secured: Conventional fixed rate 4.00% 4.35% 4.35% 4.35% 4.35% Unsecured - Fixed: Fixed rate bonds 4.37% 4.37% 5.03% 5.03% 5.03% Bank term loan 1/ 2.78% 2.78% 2.78% 2.78% 2.78% Bank term loan 2/ 2.79%

• Unsecured - fixed total

4.04% 4.09% 4.66% 4.66% 4.66% Unsecured - Floating: Bank term loan 2.25% 1.98% 1.82% 1.72% 1.66% Bank term loan 2.22% 1.99% 1.77% 1.62% 1.55% Bank term loan 2.16% 1.89% 1.72% 1.62%

• Bank term loan

2.32%

• Credit facility 3/

2.19% 1.99%

• 1.62%

1.55% Unsecured - floating total 2.21% 1.96% 1.77% 1.67% 1.59% Unsecured total 3.47% 3.36% 3.91% 3.94% 3.70% Weighted Average 3.49% 3.42% 3.94% 3.97% 3.74% Maturity Schedule 1/ The interest rate on this loan is based on one-month LIBOR plus a spread based on the company's credit rating. Swap agreements effectively fix one-month LIBOR until January 2019. 2/ The interest rate on this loan is based on one-month LIBOR plus a spread based on the company's credit rating. Swap agreements effectively fix one-month LIBOR until January 2022. 3/ Maturity date assumes exercise of two six-month extension options. 4/ All periods exclude annual principal amortization.

Mortgages and Notes Payable Summary (dollars in thousands)

• 50

100 150 200 250 300 350 400 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total Debt (in millions)

Secured Debt 4/ Unsecured Debt

Weighted Average Maturity = 4.6 years $

6

Undepreciated Secured Loans Loan Book Value of Effective Maturity Balance Real Estate & Related Lender Rate Date 6/30/17 Assets Secured Allianz Life Insurance Company 4.00% May-29 99,856 $ 147,793 $ Unsecured Bonds Bonds 3.36% Jun-21 298,288 Bonds 1/ 3.78% Mar-27 296,134 Bonds 3.75% Jan-23 248,544 Bonds 7.50% Apr-18 200,000 4.37% 1,042,966 Unsecured Loans Bank term loan 2/ 2.78% Jun-20 225,000 Bank term loan 3/ 2.25% Jan-19 200,000 Bank term loan 3/ 2.16% Jan-22 150,000 Bank term loan 3/ 2.22% Jun-20 125,000 Credit facility 3/ 4/ 2.19% Jan-19 111,000 Bank term loan 5/ 2.79% Jan-22 50,000 Bank term loan 3/ 2.32% Aug-18 10,000 2.39% 871,000 Total Debt 3.49% 2,013,822 $ Total Net of Debt Issuance Costs 2,005,038 $ Secured and Unsecured Debt Fixed and Variable Rate Debt 1/ Rate includes the impact of the swaps that were settled for $7.3 million upon issuance of the bonds. 2/ This loan maturing June 2020 is swapped to an effective fixed rate of 2.78% until January 2019, including the current spread based on the company's credit rating. 3/ Floating rate loans based on one-month LIBOR. 4/ Maturity date assumes exercise of two six-month extension options. 5/ This loan maturing January 2022 is swapped to an effective fixed rate of 2.79%, including the current spread based on the company's credit rating.

Mortgages and Notes Payable Detail (dollars in thousands)

Secured 5.0% Unsecured 95.0% Variable 29.6% Fixed 70.4%

Bond Covenants as of June 30, 2017 Overall indebtedness (<60%) 37.7% Secured indebtedness (<40%) 1.9% Income available for debt service (>1.5x) 5.89x Total unencumbered assets to unsecured debt (>200%) 270.1% Agency Rating Outlook Affirmed S&P BBB Stable 7/21/17 Moody's Baa2 Stable 1/6/17

7

6/30/17 3/31/17 12/31/16 9/30/16 6/30/16

Total In-Service

Rentable Square Feet Office 27,805,000 27,292,000 27,002,000 27,080,000 26,836,000 Industrial 2,544,000 2,413,000 2,413,000 2,413,000 2,413,000 Retail 59,000 59,000 59,000 59,000 59,000 Total 30,408,000 29,764,000 29,474,000 29,552,000 29,308,000 Occupancy Office 92.9% 92.4% 92.9% 92.2% 92.0% Industrial 90.8% 96.7% 95.6% 98.4% 98.4% Retail 100.0% 100.0% 100.0% 93.0% 93.0% Total 92.7% 92.7% 93.1% 92.7% 92.5%

Same Property:

Rentable Square Feet Office 26,505,000 26,505,000 26,505,000 26,505,000 26,505,000 Industrial 2,413,000 2,413,000 2,413,000 2,413,000 2,413,000 Retail 59,000 59,000 59,000 59,000 59,000 Total 28,977,000 28,977,000 28,977,000 28,977,000 28,977,000 Occupancy Office 92.9% 92.6% 93.0% 92.6% 92.0% Industrial 95.8% 96.7% 95.6% 98.4% 98.4% Retail 100.0% 100.0% 100.0% 93.0% 93.0% Total 93.1% 92.9% 93.3% 93.1% 92.6% Rentable Square Feet and Occupancy Trend: Total In-Service Office Only

Portfolio Summary

85% 87% 89% 91% 93% 95% 20 21 22 23 24 25 26 27 28 29 6/30/16 9/30/16 12/31/16 3/31/17 6/30/17 Occupancy Square Feet in Millions Rentable Square Feet Occupancy

8

Rentable Percentage of Annualized Cash Revenue 1/ Market Square Feet Occupancy Office Industrial Retail Total Atlanta 5,239,000 92.3% 19.3%

• 19.3%

Raleigh 5,262,000 93.3% 18.1%

• 18.1%

Nashville 4,094,000 95.7% 14.1%

• 0.2%

14.3% Tampa 3,822,000 93.1% 14.1%

• 14.1%

Pittsburgh 2,162,000 93.9% 8.5%

• 8.5%

Memphis 2,148,000 89.1% 7.3%

• 0.1%

7.4% Orlando 1,977,000 87.4% 6.9%

• 6.9%

Richmond 1,942,000 95.1% 5.9%

• 5.9%

Greensboro 3,695,000 91.7% 3.4% 1.9%

• 5.3%

Kansas City 67,000 91.2% 0.2%

• 0.2%

Total 30,408,000 92.7% 97.8% 1.9% 0.3% 100.0%

Annualized Cash Revenue by Market 1/ 1/ Annualized Cash Revenue is June 2017 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Portfolio Summary

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Atlanta Raleigh Nashville Tampa Pittsburgh Memphis Orlando Richmond Greensboro Kansas City

9

Percentage Percentage

• f Segment
• f Total

Annualized Annualized Rentable Cash Cash Market Square Feet Occupancy Revenue 1/ Revenue 1/ Office Atlanta 5,239,000 92.3% 19.7% 19.3% Raleigh 5,262,000 93.3% 18.4% 18.1% Nashville 4,053,000 95.7% 14.4% 14.1% Tampa 3,822,000 93.1% 14.4% 14.1% Pittsburgh 2,162,000 93.9% 8.7% 8.5% Memphis 2,130,000 89.0% 7.5% 7.3% Orlando 1,977,000 87.4% 7.1% 6.9% Richmond 1,942,000 95.1% 6.1% 5.9% Greensboro 1,151,000 93.7% 3.5% 3.4% Kansas City 67,000 91.2% 0.2% 0.2% 27,805,000 92.9% 100.0% 97.8% Industrial Greensboro 2,544,000 90.8% 100.0% 1.9% 2,544,000 90.8% 100.0% 1.9% Retail Nashville 41,000 100.0% 68.9% 0.2% Memphis 18,000 100.0% 31.1% 0.1% 59,000 100.0% 100.0% 0.3% Office Segment: Annualized Cash Revenue by Market 1/

1/ Annualized Cash Revenue is June 2017 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Portfolio Summary

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Atlanta Raleigh Nashville Tampa Pittsburgh Memphis Orlando Richmond Greensboro Kansas City

10

Market Measurement 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Atlanta Rentable Square Feet 5,239,000 5,239,000 5,239,000 5,317,000 5,317,000 Occupancy 92.3% 92.0% 92.1% 91.7% 91.2% Current Properties 1/ 92.3% 92.0% 92.1% 92.4% 91.9% Greensboro Rentable Square Feet 3,695,000 3,564,000 3,564,000 3,564,000 3,564,000 Occupancy 91.7% 95.6% 94.8% 96.5% 96.7% Current Properties 1/ 95.1% 95.6% 94.8% 96.5% 96.7% Kansas City Rentable Square Feet 67,000 67,000 67,000 67,000 67,000 Occupancy 91.2% 95.6% 95.6% 95.6% 95.6% Current Properties 1/ 91.2% 95.6% 95.6% 95.6% 95.6% Memphis Rentable Square Feet 2,148,000 2,148,000 2,226,000 2,226,000 2,226,000 Occupancy 89.1% 89.6% 89.9% 90.9% 91.5% Current Properties 1/ 89.1% 89.6% 89.5% 90.6% 91.1% Nashville Rentable Square Feet 4,094,000 3,581,000 3,379,000 3,379,000 3,379,000 Occupancy 95.7% 94.2% 99.6% 99.5% 99.0% Current Properties 1/ 95.3% 94.8% 99.6% 99.5% 99.0% Orlando Rentable Square Feet 1,977,000 1,977,000 1,977,000 1,977,000 1,977,000 Occupancy 87.4% 87.7% 88.2% 87.0% 87.5% Current Properties 1/ 87.4% 87.7% 88.2% 87.0% 87.5% Pittsburgh Rentable Square Feet 2,162,000 2,162,000 2,162,000 2,162,000 2,162,000 Occupancy 93.9% 94.4% 93.8% 92.2% 91.6% Current Properties 1/ 93.9% 94.4% 93.8% 92.2% 91.6% Raleigh Rentable Square Feet 5,262,000 5,262,000 5,096,000 5,096,000 4,852,000 Occupancy 93.3% 92.5% 92.7% 90.8% 91.9% Current Properties 1/ 94.3% 93.8% 94.0% 92.1% 91.9% Richmond Rentable Square Feet 1,942,000 1,942,000 1,942,000 1,942,000 1,942,000 Occupancy 95.1% 95.0% 94.6% 94.2% 92.9% Current Properties 1/ 95.1% 95.0% 94.6% 94.2% 92.9% Tampa Rentable Square Feet 3,822,000 3,822,000 3,822,000 3,822,000 3,822,000 Occupancy 93.1% 92.0% 90.9% 90.8% 88.9% Current Properties 1/ 93.1% 92.0% 90.9% 90.8% 88.9% Total Rentable Square Feet 30,408,000 29,764,000 29,474,000 29,552,000 29,308,000 Occupancy 92.7% 92.7% 93.1% 92.7% 92.5% Current Properties 1/ 93.2% 93.0% 93.3% 93.1% 92.6%

1/ Only includes properties that were owned and in-service for all periods shown.

Occupancy Trends

11

Leasing Statistics

Three Months Ended Five Quarter 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Average Leasing Activity: Square footage of Renewal Deals 390,661 509,122 460,308 594,326 661,722 523,228 Square footage of New Deals (Relets) 184,807 1/ 205,984 266,025 273,067 245,193 235,015 Rentable square footage leased 575,468 715,106 726,333 867,393 906,915 758,243 Renewed square footage (% of total) 67.9% 71.2% 63.4% 68.5% 73.0% 69.0% New Leases square footage (% of total) 32.1% 28.8% 36.6% 31.5% 27.0% 31.0% Number of lease transactions (signed leases) 101 112 105 99 131 110 Weighted average per rentable square foot

• ver the lease term:

Base rent 26.85 $ 27.60 $ 27.52 $ 27.31 $ 25.14 $ 26.88 $ Rent concessions (0.46) (0.33) (0.56) (0.39) (0.57) (0.46) GAAP rent 26.39 27.27 26.96 26.92 24.57 26.42 Tenant improvements (2.73) (2.50) (2.89) (2.86) (2.44) (2.68) Leasing commissions 2/ (0.72) (0.66) (0.96) (0.84) (0.74) (0.78) Effective rent after capex 22.94 24.11 23.11 23.22 21.39 22.96 Expense stop (8.73) (8.83) (9.11) (8.61) (8.42) (8.74) Effective rent after capex and opex 14.21 $ 15.28 $ 14.00 $ 14.61 $ 12.97 $ 14.22 $ Square feet weighted average term in years 5.8 5.0 6.0 7.0 5.4 5.9 Dollar weighted average term in years 6.1 5.3 6.2 7.2 5.6 6.1 Capital Expenditures Related to Above Leasing Activity: Tenant Improvements: Total dollars committed under signed leases 9,848,716 $ 11,106,993 $ 14,808,837 $ 20,521,494 $ 13,738,272 $ 14,004,862 $ Rentable square feet 575,468 715,106 726,333 867,393 906,915 758,243 Per rentable square foot 17.11 $ 15.53 $ 20.39 $ 23.66 $ 15.15 $ 18.47 $ Leasing Commissions: Total dollars committed under signed leases 2/ 2,732,249 $ 2,694,254 $ 4,961,541 $ 5,827,656 $ 4,219,120 $ 4,086,964 $ Rentable square feet 575,468 715,106 726,333 867,393 906,915 758,243 Per rentable square foot 4.75 $ 3.77 $ 6.83 $ 6.72 $ 4.65 $ 5.39 $ Total: Total dollars committed under signed leases 12,580,965 $ 13,801,247 $ 19,770,378 $ 26,349,150 $ 17,957,392 $ 18,091,826 $ Rentable square feet 575,468 715,106 726,333 867,393 906,915 758,243 Per rentable square foot 21.86 $ 19.30 $ 27.22 $ 30.38 $ 19.80 $ 23.86 $ 1/ Expected occupancy as follows: 31,000 in Q2 '17; 80,000 in Q3 '17; 74,000 in Q4 '17. 2/ Excludes internal leasing costs.

Office Leasing Statistics

12

For Three Months Ended June 30, 2017 Leasing Statistics Rentable Lease Square Feet Average TI's Commissions Rental Previous Percentage Leased Term Per SF Per SF 1/ Rate Rent Change Tampa 95,973 7.8 24.38 $ 8.71 $ 31.52 $ 26.46 $ 19.1% Greensboro 86,990 3.8 7.74 1.73 21.22 18.85 12.6% Richmond 69,728 3.7 9.92 2.62 23.56 20.50 14.9% Orlando 68,934 5.4 19.27 5.04 27.60 25.75 7.2% Atlanta 67,119 5.8 18.67 4.91 25.45 19.50 30.5% Memphis 65,255 7.0 17.97 3.88 27.18 24.52 10.8% Raleigh 51,100 5.8 14.35 5.20 24.35 21.55 13.0% Nashville 47,058 6.4 18.19 4.54 30.17 26.24 15.0% Pittsburgh 23,311 8.7 34.37 6.61 26.61 24.58 8.3% GAAP Rent Growth

2/

575,468 5.8 17.11 $ 4.75 $ 26.39 $ 22.93 $ 15.1% Cash Rent Growth

3/

575,468 5.8 17.11 $ 4.75 $ 25.07 $ 24.82 $ 1.0% Average Office Cash Rental Rates for All In-Place Leases as of:

1/ Excludes capitalized internal leasing costs, which totaled $610,000. 2/ GAAP rent growth is calculated by comparing average cash rent psf over the term (GAAP rent) of the new lease to the average cash rent psf

• ver the term related to the previous lease in the same space. Adjustments are made if necessary to put both the current and prior deal on a

consistent gross lease basis. 3/ Cash rent growth is calculated by comparing beginning annualized cash rent psf (after rent concessions burn off) under the new lease to ending annualized cash rent psf (including recovery income and rent escalations) related to the previous lease in the same space. Adjustments are made if necessary to put both the current and prior deal on a consistent gross lease basis.

Office Leasing Statistics and Rental Rate Comparisons by Market

$21.25 $21.95 $22.95 $23.80 $24.41 $19 $20 $21 $22 $23 $24 $25 6/30/13 6/30/14 6/30/15 6/30/16 6/30/17

13

Occupied Percent of Percent of Rentable Occupied Annualized Average Annualized Square Feet Rentable Cash Rental Cash Year Expiring Square Feet Revenue 1/ Rate Revenue 1/ 2017 2/ 1,364,834 5.3% 35,826 $ 26.25 $ 5.7% 2018 2,812,160 10.9% 69,720 24.79 11.1% 2019 3,376,372 13.0% 84,283 24.96 13.4% 2020 2,938,032 11.4% 78,641 26.77 12.5% 2021 2,796,412 10.8% 67,978 24.31 10.8% 2022 2,031,838 7.9% 47,503 23.38 7.5% 2023 1,777,107 6.9% 43,135 24.27 6.8% 2024 1,776,216 6.9% 46,687 26.28 7.4% 2025 1,071,046 4.1% 30,968 28.91 4.9% 2026 1,259,462 4.9% 31,140 24.72 4.9% 2027 and thereafter 4,623,612 17.9% 94,483 20.43 15.0% 25,827,091 100.0% 630,364 $ 24.41 $ 100.0% Percent of Total Annualized Cash Revenue Expiring by Year 1/ Annualized Cash Revenue is June 2017 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12. 2/ Includes 102,000 square feet of leases that are on a month to month basis, which constitute 0.4% of total annualized revenue. Note: 2017 and beyond expirations that have been renewed are reflected above based on the renewal expiration date. Expirations include leases related to completed not stabilized development properties and exclude leases related to developments in-process.

Office Lease Expirations (dollars in thousands)

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

2017 2/ 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 and thereafter

14

2017 1/ 2018 2019 2020 Thereafter Atlanta RSF 410,092 444,096 568,702 617,099 2,796,785 % of Total RSF 1.6% 1.7% 2.2% 2.4% 10.8% Annualized Cash Revenue 2/ 12,035 $ 11,648 $ 14,904 $ 16,581 $ 68,969 $ % of Total Annl Cash Rev 2.0% 1.9% 2.5% 2.7% 10.8% Greensboro RSF 100,352 172,774 100,958 132,543 572,145 % of Total RSF 0.3% 0.7% 0.4% 0.5% 2.2% Annualized Cash Revenue 2/ 2,013 $ 3,597 $ 2,601 $ 2,399 $ 11,196 $ % of Total Annl Cash Rev 0.3% 0.6% 0.4% 0.4% 1.8% Kansas City RSF 42,025 2,448 5,423 11,560 % of Total RSF 0.2% 0.0% 0.0% 0.0% 0.0% Annualized Cash Revenue 2/ 936 $ 62 $ 133 $

• $

267 $ % of Total Annl Cash Rev 0.1% 0.0% 0.0% 0.0% 0.0% Memphis RSF 45,498 294,154 347,275 190,222 1,019,184 % of Total RSF 0.2% 1.1% 1.3% 0.7% 4.1% Annualized Cash Revenue 2/ 966 $ 7,234 $ 8,295 $ 4,981 $ 25,547 $ % of Total Annl Cash Rev 0.2% 1.1% 1.3% 0.8% 4.1% Nashville RSF 102,201 350,633 442,836 464,001 2,518,536 % of Total RSF 0.4% 1.4% 1.7% 1.8% 9.7% Annualized Cash Revenue 2/ 2,706 $ 8,918 $ 11,563 $ 11,941 $ 55,819 $ % of Total Annl Cash Rev 0.4% 1.5% 1.7% 1.9% 8.8% Orlando RSF 147,277 236,948 265,161 204,182 875,007 % of Total RSF 0.6% 0.9% 1.0% 0.8% 3.5% Annualized Cash Revenue 2/ 4,759 $ 6,078 $ 6,612 $ 5,216 $ 22,095 $ % of Total Annl Cash Rev 0.8% 1.0% 1.0% 0.8% 3.6% Pittsburgh RSF 64,516 73,140 118,030 73,293 1,702,490 % of Total RSF 0.2% 0.3% 0.5% 0.3% 6.7% Annualized Cash Revenue 2/ 1,860 $ 2,055 $ 2,986 $ 4,462 $ 43,728 $ % of Total Annl Cash Rev 0.3% 0.3% 0.5% 0.7% 7.1% Raleigh RSF 96,645 695,745 753,836 352,844 3,010,713 % of Total RSF 0.4% 2.7% 2.9% 1.4% 11.6% Annualized Cash Revenue 2/ 1,997 $ 14,713 $ 18,098 $ 9,565 $ 71,721 $ % of Total Annl Cash Rev 0.3% 2.3% 2.9% 1.5% 11.3% Richmond RSF 232,716 216,054 194,632 215,078 987,843 % of Total RSF 0.9% 0.8% 0.8% 0.8% 3.7% Annualized Cash Revenue 2/ 5,776 $ 4,464 $ 4,226 $ 4,614 $ 19,113 $ % of Total Annl Cash Rev 0.9% 0.7% 0.7% 0.7% 3.0% Tampa RSF 123,512 326,168 579,519 688,770 1,841,430 % of Total RSF 0.5% 1.3% 2.2% 2.7% 7.1% Annualized Cash Revenue 2/ 2,778 $ 10,951 $ 14,865 $ 18,882 $ 43,439 $ % of Total Annl Cash Rev 0.4% 1.7% 2.4% 3.0% 6.8% Total RSF 1,364,834 2,812,160 3,376,372 2,938,032 15,335,693 % of Total RSF 5.3% 10.9% 13.0% 11.4% 59.4% Annualized Cash Revenue 2/ 35,826 $ 69,720 $ 84,283 $ 78,641 $ 361,894 $ % of Total Annl Cash Rev 5.7% 11.1% 13.4% 12.5% 57.3% 1/ Includes 102,000 square feet of leases that are on a month to month basis, which constitute 0.4% of total annualized revenue. 2/ Annualized Cash Revenue is June 2017 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Office Lease Expirations by Market by Year (dollars in thousands)

15

Percent of Average Rentable Annualized Annualized Remaining Square Cash Cash Lease Top 20 Customers Feet Revenue 1/ Revenue 1/ Term in Years Federal Government 1,412,377 34,588 $ 5.37% 3.8 Metropolitan Life Insurance 661,060 16,824 2.61% 9.8 PPG Industries 356,215 9,734 1.51% 13.8 EQT Corporation 319,269 7,542 1.17% 7.3 Healthways 263,598 7,038 1.09% 5.7 International Paper 278,444 6,789 1.05% 11.4 Bass, Berry & Sims 198,966 6,581 1.02% 7.6 Willis Towers Watson 239,506 6,308 0.98% 4.7 State of Georgia 318,506 6,240 0.97% 3.7 American General Life 173,834 5,777 0.90% 9.6 Aon 190,683 5,630 0.87% 2.4 Novelis 168,949 5,602 0.87% 7.2 Marsh USA 168,394 5,520 0.86% 4.7 PNC Bank 187,076 5,333 0.83% 9.4 Vanderbilt University 251,415 5,324 0.83% 3.3 Syniverse Technologies 218,678 4,923 0.76% 9.3 Lifepoint Corporate Services 202,991 4,809 0.75% 11.8 Morgan Stanley 144,616 4,784 0.74% 2.3 Laser Spine Institute 176,089 4,726 0.73% 15.3 AT&T 197,826 4,595 0.71% 2.1 6,128,492 158,667 $ 24.62% 7.0

Percent of Annualized Revenue by Industry

1/ Annualized Cash Revenue is June 2017 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

Customer Diversification (dollars in thousands)

Professional, Scientific, and Technical Services 25.7% Finance/Banking 13.7% Health Care and Social Assistance 13.4% Insurance 9.0% Manufacturing 7.0% Government/Public Administration 6.7% Real Estate Rental and Leasing 4.8% Administrative and Support Services 3.9% Educational Services 2.8% Telecommunication 2.6% Information 2.6% Accommodation and Food Services 1.7% Transportation and Warehousing 1.6% Energy 1.5% Other Services (except Public Administration) 1.3% Wholesale Trade 1.0% Retail Trade 0.7%

16

Three months ended June 30, Dollar Percentage 2017 2016 Change B/(W) Change B/(W) Rental revenues 1/ 161,497 $ 156,164 $ 5,333 $ 3.4% Operating expenses (56,495) (56,445) (50) (0.1%) Cash NOI 1/ 105,002 99,719 5,283 5.3% Lease termination fees 2/ 203 20 183 915.0% Cash NOI with Term Fees 3/ 105,205 99,739 5,466 5.5% Straight-line rent and other non-cash adjustments 4/ 2,988 5,848 (2,860) (48.9%) GAAP NOI 108,193 $ 105,587 $ 2,606 $ 2.5% Average occupancy 93.0% 92.8% 0.2% Rentable square feet 28,977,000 28,977,000 Six months ended June 30, Dollar Percentage 2017 2016 Change B/(W) Change B/(W) Rental revenues 1/ 319,388 $ 309,590 $ 9,798 $ 3.2% Operating expenses (112,115) (112,906) 791 0.7% Cash NOI 1/ 207,273 196,684 10,589 5.4% Lease termination fees 2/ 219 1,958 (1,739) (88.8%) Cash NOI with Term Fees 3/ 207,492 198,642 8,850 4.5% Straight-line rent and other non-cash adjustments 4/ 7,571 11,339 (3,768) (33.2%) GAAP NOI 215,063 $ 209,981 $ 5,082 $ 2.4% Average occupancy 92.8% 92.7% 0.1% Rentable square feet 28,977,000 28,977,000 Year to Date: 2017 vs 2016 GAAP NOI Occupancy Percentage Percentage Market Change Change Atlanta 0.8% (0.8%) Greensboro 2.9% (0.8%) Kansas City (6.8%) (2.2%) Memphis (0.0%) (1.3%) Nashville (4.2%) (5.0%) Orlando 14.2% 1.1% Pittsburgh 5.1% 2.1% Raleigh 1.6% 1.8% Richmond 7.3% 1.6% Tampa 5.6% 3.9% 2.4% 0.1%

1/ Excludes straight-line rents, lease termination fees, adjustments related to amortization of acquired above and below market leases and amortization of lease incentives. 2/ Straight-line rent write-offs related to lease terminations are reflected here as a reduction of lease termination fees. 3/ Excludes straight-line rents, adjustments related to amortization of acquired above and below market leases and amortization of lease incentives. 4/ Includes adjustments related to amortization of acquired above and below market leases and amortization of lease incentives.

Same Property Performance (dollars in thousands)

17

Six Months Ended 6/30/17 Occupancy 1/ 100.0% Square feet 78,000 Gross sales price $13,000 ThyssenKrupp Market Memphis Property type Office Number of properties 1 Date sold February 22, 2017 Occupancy 1/ 100.0% Square feet 78,000 Gross sales price $13,000 1/ As of last reported quarter-end occupancy prior to date of disposition.

Disposition Activity (dollars In thousands)

18

Rentable Anticipated Investment Estimated Estimated Square Total As Of Pre Completion Stabilization Office In-Process Market Feet Investment 1/ 6/30/17 1/ Leased % Date Date 5000 CentreGreen Raleigh 166,500 40,850 $ 27,594 $ 26.0% 3Q 17 3Q 19 Virginia Urology Richmond 87,000 29,140 4,095 100.0% 3Q 18 3Q 18 751 Corporate Center Raleigh 89,700 21,850 2,661 35.3% 4Q 18 4Q 20 MetLife III 2/ 3/ Raleigh 219,000 64,500 5,718 100.0% 2Q 19 2Q 21 Virginia Springs I 2/ 4/ Nashville 109,000 34,300 4,782 33.8% 2Q 19 3Q 20 Mars Petcare - Ovation Nashville 223,700 96,200 9,086 100.0% 3Q 19 3Q 19 894,900 286,840 $ 53,936 $ 71.7% Industrial In-Process Enterprise IV Greensboro 128,000 8,040 $ 3,763 $ 62.5% 1Q 18 4Q 18 Office Completed Not Stabilized 5/ Occupancy Riverwood 200 Atlanta 299,000 107,000 $ 93,923 $ 79.9% 72.9% 2Q 17 2Q 19 Seven Springs II Nashville 134,700 38,100 30,240 63.0% 63.0% 2Q 17 3Q 18 433,700 145,100 $ 124,163 $ 74.6% 69.8% Total Pipeline 1,456,600 439,980 $ 181,862 $ 71.8% Office Placed in Service Bridgestone Americas 6/ Nashville 514,000 200,000 $ 187,729 $ 100.0% 98.5% Industrial Placed in Service Enterprise V Greensboro 131,200 7,600 $ 6,494 $ 0.0% 0.0% MetLife Global Technology Campus in Raleigh, NC 1/ Includes deferred lease commissions, which are not classified as development in-process on our consolidated balance sheet. 2/ Recorded on our consolidated balance sheet in land held for development, not development in-process. 3/ Pre-lease of 100% contains a required take down of one floor in Q1 '20 and one floor in Q1 '21. 4/ This development was announced July 2017. 5/ "Completed not stabilized" properties are recorded on our consolidated balance sheet in the land and building and tenant improvement accounts, not development in-process. 6/ Includes 7,000 square feet of amenity retail space.

Development Activity(dollars in thousands)

19

Market Acres Office Industrial Nashville 2/ 3/ 61 1,273,000

• Raleigh 4/

36 976,000

• Tampa

37 813,000

• Greensboro

30 240,000 220,500 Richmond 5/ 13 200,000

• Memphis

10 145,000

• Orlando

2 410,000

• Atlanta

1 175,000

• Core total

190 4,232,000 220,500 Non-core total 196 Total 386 Cost Basis 1/ 2/ 3/ 4/ 5/ 95,113 $ The 386 acres of Development Land has an estimated market value of between $105M to $110M.

Virginia Springs I development project in Nashville 1/ Represents approximately $1.1 billion in total development. 2/ Includes 54 acres and approximately 1.2 million square feet currently classified as development in-process on our consolidated balance sheet. 3/ Excludes 7 acres to be used to develop a 109 thousand square foot, 33.8% pre-leased office building that is currently classified as land held for development on our consolidated balance sheet. 4/ Excludes 6 acres to be used to develop a 219 thousand square foot, 100% pre-leased build-to-suit office building that is currently classified as land held for development on our consolidated balance sheet. 5/ Excludes 13 acres of development land owned by a 50% consolidated joint venture with a total cost basis of $3.3 million.

Square Footage Buildout of Core Development Land 1/

Land Held for Development (dollars in thousands)

20

Unconsolidated Joint Venture Financial Information:

Venture's Books Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Joint Venture Own % Revenue NOI Revenue NOI Highwoods DLF Forum, LLC 25.0% 2,994 $ 1,911 $ 6,506 $ 4,292 $ Plaza Colonnade, Tenant-in-Common 50.0% 3,108 1,996 6,231 4,062 Kessinger/Hunter & Company, LC 26.5% 1,687 561 3,197 1,014 Highwoods DLF 98/29, LLC 22.8% 1,668 1,134 2,988 1,940 Highwoods DLF 97/26 DLF 99/32, LP 42.9% 442 314 824 602 Total 9,899 $ 5,916 $ 19,746 $ 11,910 $ Venture's Books As of June 30, 2017 Total Total Joint Venture Own % Assets Debt Liabilities Highwoods DLF Forum, LLC 25.0% 94,446 $ 71,408 $ 74,420 $ Plaza Colonnade, Tenant-in-Common 50.0% 55,548 63,988 66,323 Kessinger/Hunter & Company, LC 26.5% 2,759

• 184

Highwoods DLF 98/29, LLC 22.8% 30,292

• 3,338

Highwoods DLF 97/26 DLF 99/32, LP 42.9% 14,628

• 2,724

Total 197,673 $ 135,396 $ 146,989 $

Summary of Joint Ventures:

Percentage of Joint Venture Annualized Rentable Cash Market Square Feet Occupancy Revenue 1/ 2/

Kansas City

292,000 99.5% 47.3%

Richmond 3/

345,000 100.0% 25.4%

Raleigh

635,000 50.1% 13.9%

Orlando

306,000 100.0% 13.4%

Total

1,578,000 79.8% 100.0% 1/ Annualized Cash Revenue is June 2017 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12. 2/ Annualized Cash Revenue is based on Highwoods' share only. 3/ This joint venture is consolidated.

Unconsolidated Joint Ventures Income Year Ended 12/31/14 (dollars in thousands) Unconsolidated Joint Ventures Income Six Months Ended Joint Venture Financial Information and Summary (dollars in thousands)

21