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

SUPPLEMENTAL INFORMATION

Third 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, Summary and Disposition Information………………………………………………………………………………………………………………………… 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 third 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 third quarter earnings release. COVER Bridgestone Americas HQ Nashville

Table of Contents

TOC

Three Months Ended 9/30/17 9/30/16 Financial: Revenues 180,185 $ 166,269 $ Net operating income (NOI) 118,951 $ 107,649 $ Same property cash NOI growth 3.4% 6.6% Funds from operations per share 0.86 $ 0.82 $ Weighted average common shares outstanding, diluted 106,145 101,939 Balance Sheet: Leverage (includes preferred stock) based on gross book assets 34.7% 34.6% Debt-to-EBITDA 4.46x 4.82x Debt plus preferred stock-to-EBITDA 4.52x 4.89x Unencumbered NOI % 96.2% 92.8% Credit facility availability 403,000 $ 447,000 $ Operations: Quarter end occupancy 92.1% 92.7% Office square feet leased 1,104 867 Office GAAP rent growth 1/ 11.3% 20.7% Average office cash rental rate per square foot for in-place leases 24.53 $ 24.22 $ Nine Months Ended 9/30/17 Investment Activity: Building dispositions 105,668 $ Development pipeline 439,980 $ Pipeline pre-leased % 74.2%

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 Jefferies & Company, Inc. 3100 Smoketree Court, Suite 600 Jamie Feldman Jonathan Petersen Raleigh, NC 27604 646-855-5808 212-284-1705 919-872-4924 BTIG Janney Montgomery Scott

Stock Exchange

Tom Catherwood Robert Stevenson NYSE: HIW 212-738-6140 646-840-3217

Investor Relations

Capital One Securities Morgan Stanley Brendan Maiorana Chris Lucas Sumit Sharma Senior Vice President, Finance and Investor Relations 571-633-8151 212-761-7567 Phone: 919-431-1529 Fax: 919-431-1439 Citigroup Global Markets RW Baird Brendan.Maiorana@highwoods.com Michael Bilerman David Rodgers http://www.highwoods.com/ 212-816-1383 216-737-7341 Emmanuel Korchman

Information Request

212-816-1382 Stifel Nicolaus To request a Supplemental Package or Annual Report John Guinee

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

D.A. Davidson & Co. 443-224-1307 Investor Relations. Barry Oxford 212-240-9871 SunTrust Robinson Humphrey Michael Lewis

The Company

Green Street Advisors 212-319-5659 Highwoods Properties, headquartered in Raleigh, is a publicly Jed Reagan traded (NYSE:HIW) real estate investment trust (“REIT”) and 949-640-8780 a member of the S&P MidCap 400 Index. The Company is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs)

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

Raleigh, Richmond and Tampa. For more information about Highwoods Properties, please visit our website at: www.highwoods.com.

Corporate Information

iii

9/30/17 9/30/16 9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 Rental and other revenues 526,876 $ 497,988 $ 180,185 $ 177,283 $ 169,408 $ 167,646 $ 166,269 $ Operating expenses: Rental property and other expenses 177,484 173,715 61,234 58,854 57,396 57,370 58,620 Depreciation and amortization 168,934 161,734 56,973 55,816 56,145 58,406 52,923 Impairments of real estate assets 1,445

• 1,445
• General and administrative

29,787 29,327 9,247 9,050 11,490 8,826 9,863 Total operating expenses 377,650 364,776 128,899 123,720 125,031 124,602 121,406 Interest expense: Contractual 48,763 56,111 16,395 15,345 17,023 17,031 17,722 Amortization of debt issuance costs 2,445 2,645 796 809 840 861 844 51,208 58,756 17,191 16,154 17,863 17,892 18,566 Other income: Interest and other income 1,806 1,884 558 564 684 454 833 Gains on debt extinguishment 826

• 826
• 2,632

1,884 558 1,390 684 454 833 Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates 100,650 76,340 34,653 38,799 27,198 25,606 27,130 Gains on disposition of property 25,181 14,160 19,849

• 5,332

647 3,902 Equity in earnings of unconsolidated affiliates 6,757 5,010 5,047 755 955 783 2,808 Income from continuing operations 132,588 95,510 59,549 39,554 33,485 27,036 33,840 Discontinued operations: Income from discontinued operations

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

132,588 514,103 59,549 39,554 33,485 27,036 33,840 Net (income) attributable to noncontrolling interests in the Operating Partnership (3,502) (14,876) (1,571) (1,043) (888) (720) (926) Net (income) attributable to noncontrolling interests in consolidated affiliates (914) (941) (315) (299) (300) (312) (319) Dividends on Preferred Stock (1,869) (1,877) (623) (623) (623) (624) (624) Net income available for common stockholders 126,303 $ 496,409 $ 57,040 $ 37,589 $ 31,674 $ 25,380 $ 31,971 $ Earnings per Common Share – basic: Income from continuing operations available for common stockholders 1.23 $ 0.92 $ 0.55 $ 0.37 $ 0.31 $ 0.25 $ 0.32 $ Income from discontinued operations available for common stockholders

• 4.16
• Net income available for common stockholders

1.23 $ 5.08 $ 0.55 $ 0.37 $ 0.31 $ 0.25 $ 0.32 $ Weighted average Common Shares outstanding - basic 102,489 97,669 103,237 102,475 101,738 100,733 98,973 Earnings per Common Share - diluted: Income from continuing operations available for common stockholders 1.23 $ 0.92 $ 0.55 $ 0.37 $ 0.31 $ 0.25 $ 0.32 $ Income from discontinued operations available for common stockholders

• 4.16
• Net income available for common stockholders

1.23 $ 5.08 $ 0.55 $ 0.37 $ 0.31 $ 0.25 $ 0.32 $ Weighted average Common Shares outstanding - diluted 105,402 100,645 106,145 105,386 104,661 103,640 101,939 Dividends declared per Common Share 1.320 $ 1.275 $ 0.440 $ 0.440 $ 0.440 $ 1.225 $ 0.425 $ Net income available for common stockholders: Income from continuing operations available for common stockholders 126,303 $ 90,081 $ 57,040 $ 37,589 $ 31,674 $ 25,380 $ 31,971 $ Income from discontinued operations available for common stockholders

• 406,328
• Net income available for common stockholders

126,303 $ 496,409 $ 57,040 $ 37,589 $ 31,674 $ 25,380 $ 31,971 $ Nine Months Ended Three Months Ended

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

1

Nine Months Ended Three Months Ended 9/30/17 9/30/16 9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 Funds from operations: Net income 132,588 $ 514,103 $ 59,549 $ 39,554 $ 33,485 $ 27,036 $ 33,840 $ Net (income) attributable to noncontrolling interests in consolidated affiliates (914) (941) (315) (299) (300) (312) (319) Depreciation and amortization of real estate assets 166,862 159,780 56,271 55,116 55,475 57,753 52,303 (Gains) on disposition of depreciable properties (25,181) (8,915) (19,849)

• (5,332)
• Unconsolidated affiliates:

Depreciation and amortization of real estate assets 1,923 2,227 529 732 662 751 736 (Gains) on disposition of depreciable properties (4,617) (2,173) (4,617)

• (1,842)

Discontinued operations: (Gains) on disposition of depreciable properties

• (414,496)
• Funds from operations

270,661 249,585 91,568 95,103 83,990 85,228 84,718 Dividends on Preferred Stock (1,869) (1,877) (623) (623) (623) (624) (624) Funds from operations available for common stockholders 268,792 $ 247,708 $ 90,945 $ 94,480 $ 83,367 $ 84,604 $ 84,094 $ Funds from operations available for common stockholders per share 2.55 $ 2.46 $ 0.86 $ 0.90 $ 0.80 $ 0.82 $ 0.82 $ Weighted average shares outstanding 105,402 100,645 106,145 105,386 104,661 103,640 101,939 Additional information: 1/ 2/ Gains on debt extinguishment (826) $

• $
• $

(826) $

• $
• $
• $

Property acquisition costs

• 751
• 751

Straight-line rental income (24,643) (18,518) (9,440) (9,085) (6,118) (5,328) (5,140) Straight-line rental write-offs related to termination fees 407 544 365 42

• 1

210 Amortization of lease incentives 1,284 1,374 444 443 397 405 273 Depreciation of non-real estate assets 1,684 1,576 570 571 543 525 495 Ground lease straight-line rent expense 296 297 96 99 101 101 105 Share-based compensation expense 5,764 5,412 927 1,054 3,783 839 862 Amortization of debt issuance costs 2,445 2,645 796 809 840 861 844 Amortization of accumulated other comprehensive (income)/loss (240) 238 (111) (112) (17) 80 80 Amortization of above/(below) market leases and other adjustments (1,950) (2,973) (765) (778) (407) (802) (693) Non-incremental revenue generating capital expenditures incurred: 3/ Building improvements (22,459) (23,302) (9,146) (6,948) (6,365) (16,900) (12,549) 2nd generation tenant improvements (38,709) (37,585) (15,216) (11,558) (11,935) (13,920) (14,078) 2nd generation lease commissions (11,773) (16,463) (4,417) (4,300) (3,056) (6,130) (7,028) Common dividends and unit distributions paid (139,117) (127,912) (46,670) (46,281) (46,166) (43,837) (43,177) 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

9/30/17 12/31/16 Assets: Real estate assets, at cost: Land 488,013 $ 474,375 $ Buildings and tenant improvements 4,605,061 4,313,373 Development in-process 58,578 279,602 Land held for development 76,969 77,355 5,228,621 5,144,705 Less-accumulated depreciation (1,196,642) (1,134,103) Net real estate assets 4,031,979 4,010,602 Cash and cash equivalents 4,864 49,490 Restricted cash 47,761 29,141 Accounts receivable, net of allowance of $504 and $624, respectively 18,027 17,372 Mortgages and notes receivable, net of allowance of $80 and $105, respectively 6,789 8,833 Accrued straight-line rents receivable, net of allowance of $324 and $692, respectively 194,639 172,829 Investments in and advances to unconsolidated affiliates 23,523 18,846 Deferred leasing costs, net of accumulated amortization of $145,814 and $140,081, respectively 202,814 213,500 Prepaid expenses and other assets, net of accumulated amortization of $22,341 and $19,904, respectively 30,070 40,437 Total Assets 4,560,466 $ 4,561,050 $ Liabilities, Noncontrolling Interests in the Operating Partnership and Equity: Mortgages and notes payable, net 1,966,398 $ 1,948,047 $ Accounts payable, accrued expenses and other liabilities 227,575 313,885 Total Liabilities 2,193,973 2,261,932 Commitments and contingencies Noncontrolling interests in the Operating Partnership 147,451 144,802 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), 28,892 and 28,920 shares issued and outstanding, respectively 28,892 28,920 Common Stock, $.01 par value, 200,000,000 authorized shares; 103,248,940 and 101,665,554 shares issued and outstanding, respectively 1,032 1,017 Additional paid-in capital 2,924,048 2,850,881 Distributions in excess of net income available for common stockholders (758,484) (749,412) Accumulated other comprehensive income 5,910 4,949 Total Stockholders' Equity 2,201,398 2,136,355 Noncontrolling interests in consolidated affiliates 17,644 17,961 Total Equity 2,219,042 2,154,316 Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity 4,560,466 $ 4,561,050 $

Consolidated Balance Sheets (dollars in thousands)

3

Nine Months Ended Three Months Ended 9/30/17 9/30/16 9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 Continuing Operations Revenue Detail: Rental and other revenues Contractual rents, net 437,372 $ 417,133 $ 146,853 $ 146,990 $ 143,529 $ 144,109 $ 140,943 $ Straight-line rental income, net 24,643 18,581 9,440 9,085 6,118 5,328 5,140 Cost recovery income, net 39,860 37,800 13,755 13,355 12,750 10,930 12,539 Lease termination fees 1,452 2,308 1,233 203 16 3 350 Other miscellaneous operating revenues 23,549 22,166 8,904 7,650 6,995 7,276 7,297 526,876 $ 497,988 $ 180,185 $ 177,283 $ 169,408 $ 167,646 $ 166,269 $ 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

9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 Mortgages and Notes Payable (see pages 6 & 7): 1,966,398 $ 2,005,038 $ 2,042,486 $ 1,948,047 $ 1,901,066 $ Preferred Stock (at liquidation value): Series A 8 5/8% Cumulative Redeemable 28,892 $ 28,905 $ 28,905 $ 28,920 $ 28,920 $ Common Shares and Units Outstanding: Common stock outstanding 103,249 103,236 102,018 101,666 100,204 Noncontrolling interest partnership units 2,831 2,833 2,837 2,839 2,840 Total Common Shares and Units outstanding 106,080 106,069 104,855 104,505 103,044 Stock price at period end 52.09 $ 50.71 $ 49.13 $ 51.01 $ 52.12 $ Market value of common equity 5,525,707 $ 5,378,759 $ 5,151,526 $ 5,330,800 $ 5,370,653 $ Total capitalization 7,520,997 $ 7,412,702 $ 7,222,917 $ 7,307,767 $ 7,300,639 $ Debt-to-EBITDA: Net income 59,549 $ 39,554 $ 33,485 $ 27,036 $ 33,840 $ Interest expense 17,191 16,154 17,863 17,892 18,566 Depreciation and amortization 56,973 55,816 56,145 58,406 52,923 Equity in earnings of unconsolidated affiliates (5,047) (755) (955) (783) (2,808) Gains on debt extinguishment

• (826)
• Impairments of real estate assets

1,445

• Gains on disposition of property

(19,849)

• (5,332)

(647) (3,902) EBITDA 110,262 $ 109,943 $ 101,206 $ 101,904 $ 98,619 $ Annualized EBITDA 1/ 441,048 $ 439,772 $ 404,824 $ 407,616 $ 394,476 $ Mortgages and notes payable, net (Debt) 1,966,398 $ 2,005,038 $ 2,042,486 $ 1,948,047 $ 1,901,066 $ Preferred stock 28,892 28,905 28,905 28,920 28,920 Debt plus preferred stock 1,995,290 $ 2,033,943 $ 2,071,391 $ 1,976,967 $ 1,929,986 $ Debt-to-EBITDA 2/ 4.46x 4.56x 5.05x 4.78x 4.82x Debt plus preferred stock-to-EBITDA 3/ 4.52x 4.62x 5.12x 4.85x 4.89x 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: 9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 Secured: Conventional fixed rate 99,421 $ 99,856 $ 127,358 $ 128,204 $ 129,013 $ Unsecured - Fixed: Fixed rate bonds and notes 1,043,239 1,042,966 1,042,692 1,126,145 1,125,942 Bank term loan 1/ 225,000 225,000 225,000 225,000 225,000 Bank term loan 2/ 50,000 50,000

• Unsecured - fixed total

1,318,239 1,317,966 1,267,692 1,351,145 1,350,942 Unsecured - Floating: Bank term loan 3/ 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 150,000 150,000 200,000 150,000 75,000 Bank term loan 10,000 10,000

• Credit facility 4/

72,000 111,000 131,000

• 28,000

Unsecured - floating total 557,000 596,000 656,000 475,000 428,000 Unsecured total 1,875,239 1,913,966 1,923,692 1,826,145 1,778,942 Total 1,974,660 $ 2,013,822 $ 2,051,050 $ 1,954,349 $ 1,907,955 $ Total Net of Debt Issuance Costs 1,966,398 $ 2,005,038 $ 2,042,486 $ 1,948,047 $ 1,901,066 $ End of Period Weighted Average Interest Rates: Secured: Conventional fixed rate 4.00% 4.00% 4.35% 4.35% 4.35% Unsecured - Fixed: Fixed rate bonds 4.37% 4.37% 4.37% 5.03% 5.03% Bank term loan 1/ 2.78% 2.78% 2.78% 2.78% 2.78% Bank term loan 2/ 2.79% 2.79%

• Unsecured - fixed total

4.04% 4.04% 4.09% 4.66% 4.66% Unsecured - Floating: Bank term loan 3/ 2.44% 2.25% 1.98% 1.82% 1.72% Bank term loan 2.34% 2.22% 1.99% 1.77% 1.62% Bank term loan 2.34% 2.16% 1.89% 1.72% 1.62% Bank term loan 2.34% 2.32%

• Credit facility 4/

2.33% 2.19% 1.99%

• 1.62%

Unsecured - floating total 2.37% 2.21% 1.96% 1.77% 1.67% Unsecured total 3.54% 3.47% 3.36% 3.91% 3.94% Weighted Average 3.57% 3.49% 3.42% 3.94% 3.97% 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/ Loan was extended on October 18, 2017 and the new maturity date is November 2022. 4/ Loan was extended on October 18, 2017 and the new maturity date assuming exercise of two six-month extension options is January 2023. 5/ 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 5/ Unsecured Debt

Weighted Average Maturity = 4.4 years $

6

Undepreciated Secured Loans Loan Book Value of Effective Maturity Balance Real Estate & Related Lender Rate Date 9/30/17 Assets Secured Allianz Life Insurance Company 4.00% May-29 99,421 $ 147,716 $ Unsecured Bonds Bonds 3.36% Jun-21 298,396 Bonds 1/ 3.78% Mar-27 296,234 Bonds 3.75% Jan-23 248,609 Bonds 7.50% Apr-18 200,000 4.37% 1,043,239 Unsecured Loans Bank term loan 2/ 2.78% Jun-20 225,000 Bank term loan 3/ 4/ 2.44% Jan-19 200,000 Bank term loan 3/ 2.34% Jan-22 150,000 Bank term loan 3/ 2.34% Jun-20 125,000 Credit facility 3/ 5/ 2.33% Jan-19 72,000 Bank term loan 6/ 2.79% Jan-22 50,000 Bank term loan 3/ 2.34% Aug-18 10,000 2.51% 832,000 Total Debt 3.57% 1,974,660 $ Total Net of Debt Issuance Costs 1,966,398 $ 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/ Loan was extended on October 18, 2017 and the new maturity date is November 2022. 5/ Loan was extended on October 18, 2017 and the new maturity date assuming exercise of two six-month extension options is January 2023. 6/ 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 28.2% Fixed 71.8% Bond Covenants as of September 30, 2017 Overall indebtedness (<60%) 37.0% Secured indebtedness (<40%) 1.9% Income available for debt service (>1.5x) 6.17x Total unencumbered assets to unsecured debt (>200%) 275.5% Agency Rating Outlook Affirmed S&P BBB Stable 7/21/17 Moody's Baa2 Stable 1/6/17

7

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

Total In-Service

Rentable Square Feet Office 27,068,000 27,805,000 27,292,000 27,002,000 27,080,000 Industrial 2,544,000 2,544,000 2,413,000 2,413,000 2,413,000 Retail 59,000 59,000 59,000 59,000 59,000 Total 29,671,000 30,408,000 29,764,000 29,474,000 29,552,000 Occupancy Office 92.2% 92.9% 92.4% 92.9% 92.2% Industrial 91.6% 90.8% 96.7% 95.6% 98.4% Retail 100.0% 100.0% 100.0% 100.0% 93.0% Total 92.1% 92.7% 92.7% 93.1% 92.7%

Same Property:

Rentable Square Feet Office 25,767,000 25,767,000 25,767,000 25,767,000 25,767,000 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 28,239,000 28,239,000 28,239,000 28,239,000 28,239,000 Occupancy Office 92.1% 93.3% 93.0% 93.6% 93.1% Industrial 96.5% 95.8% 96.7% 95.6% 98.4% Retail 100.0% 100.0% 100.0% 100.0% 93.0% Total 92.5% 93.5% 93.3% 93.8% 93.6% 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 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 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 5,244,000 88.4% 18.8%

• 18.8%

Raleigh 5,011,000 93.9% 18.2%

• 18.2%

Tampa 3,822,000 94.1% 14.9%

• 14.9%

Nashville 4,094,000 95.8% 14.6%

• 0.2%

14.8% Pittsburgh 2,162,000 92.4% 8.7%

• 8.7%

Orlando 1,976,000 88.2% 7.1%

• 7.1%

Memphis 1,655,000 93.9% 6.4%

• 0.1%

6.5% Greensboro 3,695,000 92.2% 3.5% 2.0%

• 5.5%

Richmond 1,945,000 90.0% 5.4%

• 5.4%

Kansas City 67,000 28.8% 0.1%

• 0.1%

Total 29,671,000 92.1% 97.7% 2.0% 0.3% 100.0%

Annualized Cash Revenue by Market 1/ 1/ Annualized Cash Revenue is September 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 Tampa Nashville Pittsburgh Orlando Memphis Greensboro Richmond Kansas City

9

Percentage Percentage

• f Segment
• f Total

Annualized Annualized Rentable Cash Cash Market Square Feet Occupancy Revenue 1/ Revenue 1/ Office Atlanta 5,244,000 88.4% 19.1% 18.8% Raleigh 5,011,000 93.9% 18.6% 18.2% Tampa 3,822,000 94.1% 15.3% 14.9% Nashville 4,053,000 95.8% 15.0% 14.6% Pittsburgh 2,162,000 92.4% 8.9% 8.7% Orlando 1,976,000 88.2% 7.3% 7.1% Memphis 1,637,000 93.8% 6.5% 6.4% Richmond 1,945,000 90.0% 5.6% 5.4% Greensboro 1,151,000 93.5% 3.6% 3.5% Kansas City 67,000 28.8% 0.1% 0.1% 27,068,000 92.2% 100.0% 97.7% Industrial Greensboro 2,544,000 91.6% 100.0% 2.0% 2,544,000 91.6% 100.0% 2.0% 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 September 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 Tampa Nashville Pittsburgh Orlando Memphis Richmond Greensboro Kansas City

10

Market Measurement 9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 Atlanta Rentable Square Feet 5,244,000 5,239,000 5,239,000 5,239,000 5,317,000 Occupancy 88.4% 92.3% 92.0% 92.1% 91.7% Current Properties 1/ 88.4% 92.3% 92.0% 92.1% 92.4% Greensboro Rentable Square Feet 3,695,000 3,695,000 3,564,000 3,564,000 3,564,000 Occupancy 92.2% 91.7% 95.6% 94.8% 96.5% Current Properties 1/ 95.6% 95.1% 95.6% 94.8% 96.5% Kansas City Rentable Square Feet 67,000 67,000 67,000 67,000 67,000 Occupancy 28.8% 91.2% 95.6% 95.6% 95.6% Current Properties 1/ 28.8% 91.2% 95.6% 95.6% 95.6% Memphis Rentable Square Feet 1,655,000 2,148,000 2,148,000 2,226,000 2,226,000 Occupancy 93.9% 89.1% 89.6% 89.9% 90.9% Current Properties 1/ 93.9% 92.7% 93.5% 93.6% 94.4% Nashville Rentable Square Feet 4,094,000 4,094,000 3,581,000 3,379,000 3,379,000 Occupancy 95.8% 95.7% 94.2% 99.6% 99.5% Current Properties 1/ 95.5% 95.3% 94.8% 99.6% 99.5% Orlando Rentable Square Feet 1,976,000 1,977,000 1,977,000 1,977,000 1,977,000 Occupancy 88.2% 87.4% 87.7% 88.2% 87.0% Current Properties 1/ 88.2% 87.4% 87.7% 88.2% 87.0% Pittsburgh Rentable Square Feet 2,162,000 2,162,000 2,162,000 2,162,000 2,162,000 Occupancy 92.4% 93.9% 94.4% 93.8% 92.2% Current Properties 1/ 92.4% 93.9% 94.4% 93.8% 92.2% Raleigh Rentable Square Feet 5,011,000 5,262,000 5,262,000 5,096,000 5,096,000 Occupancy 93.9% 93.3% 92.5% 92.7% 90.8% Current Properties 1/ 93.8% 93.9% 93.0% 93.9% 92.3% Richmond Rentable Square Feet 1,945,000 1,942,000 1,942,000 1,942,000 1,942,000 Occupancy 90.0% 95.1% 95.0% 94.6% 94.2% Current Properties 1/ 90.0% 95.1% 95.0% 94.6% 94.2% Tampa Rentable Square Feet 3,822,000 3,822,000 3,822,000 3,822,000 3,822,000 Occupancy 94.1% 93.1% 92.0% 90.9% 90.8% Current Properties 1/ 94.1% 93.1% 92.0% 90.9% 90.8% Total Rentable Square Feet 29,671,000 30,408,000 29,764,000 29,474,000 29,552,000 Occupancy 92.1% 92.7% 92.7% 93.1% 92.7% Current Properties 1/ 92.4% 93.4% 93.1% 93.6% 93.4%

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

Occupancy Trends

11

Leasing Statistics

Three Months Ended Five Quarter 9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 Average Leasing Activity: Square footage of Renewal Deals 910,118 390,661 509,122 460,308 594,326 572,907 Square footage of New Deals (Relets) 193,911 1/ 184,807 1/ 205,984 266,025 273,067 224,759 Rentable square footage leased 1,104,029 575,468 715,106 726,333 867,393 797,666 Renewed square footage (% of total) 82.4% 67.9% 71.2% 63.4% 68.5% 71.8% New Leases square footage (% of total) 17.6% 32.1% 28.8% 36.6% 31.5% 28.2% Number of lease transactions (signed leases) 98 101 112 105 99 103 Weighted average per rentable square foot

• ver the lease term:

Base rent 26.15 $ 26.85 $ 27.60 $ 27.52 $ 27.31 $ 27.09 $ Rent concessions (0.34) (0.46) (0.33) (0.56) (0.39) (0.42) GAAP rent 25.81 26.39 27.27 26.96 26.92 26.67 Tenant improvements (2.61) (2.73) (2.50) (2.89) (2.86) (2.72) Leasing commissions 2/ (0.83) (0.72) (0.66) (0.96) (0.84) (0.80) Effective rent after capex 22.37 22.94 24.11 23.11 23.22 23.15 Expense stop (8.29) (8.73) (8.83) (9.11) (8.61) (8.71) Effective rent after capex and opex 14.08 $ 14.21 $ 15.28 $ 14.00 $ 14.61 $ 14.44 $ Square feet weighted average term in years 4.8 5.8 5.0 6.0 7.0 5.7 Dollar weighted average term in years 5.2 6.1 5.3 6.2 7.2 6.0 Capital Expenditures Related to Above Leasing Activity: Tenant Improvements: Total dollars committed under signed leases 15,747,390 $ 9,848,716 $ 11,106,993 $ 14,808,837 $ 20,521,494 $ 14,406,686 $ Rentable square feet 1,104,029 575,468 715,106 726,333 867,393 797,666 Per rentable square foot 14.26 $ 17.11 $ 15.53 $ 20.39 $ 23.66 $ 18.06 $ Leasing Commissions: Total dollars committed under signed leases 2/ 4,717,077 $ 2,732,249 $ 2,694,254 $ 4,961,541 $ 5,827,656 $ 4,186,555 $ Rentable square feet 1,104,029 575,468 715,106 726,333 867,393 797,666 Per rentable square foot 4.27 $ 4.75 $ 3.77 $ 6.83 $ 6.72 $ 5.25 $ Total: Total dollars committed under signed leases 20,464,467 $ 12,580,965 $ 13,801,247 $ 19,770,378 $ 26,349,150 $ 18,593,241 $ Rentable square feet 1,104,029 575,468 715,106 726,333 867,393 797,666 Per rentable square foot 18.54 $ 21.86 $ 19.30 $ 27.22 $ 30.38 $ 23.31 $ 1/ Expected occupancy as follows: 12,000 in Q3 '17; 144,000 in Q4 '17; 26,000 in Q1 '18 and 12,000 in Q2 '18. 2/ Excludes internal leasing costs.

Office Leasing Statistics

12

For Three Months Ended September 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 Atlanta 369,117 1.8 5.09 $ 1.94 $ 22.23 $ 20.60 $ 7.9% Richmond 158,700 4.3 12.43 3.42 22.47 19.78 13.6% Raleigh 147,700 6.8 31.75 5.40 24.73 21.25 16.4% Tampa 127,493 8.5 22.60 8.66 32.67 28.28 15.5% Orlando 98,729 7.7 21.36 7.00 31.26 29.94 4.4% Nashville 88,054 5.9 13.63 4.69 29.57 25.33 16.7% Greensboro 58,889 5.9 10.54 4.49 29.52 26.47 11.5% Pittsburgh 43,135 3.3 4.24 3.75 27.63 24.58 12.4% Memphis 12,212 3.7 17.32 2.04 23.44 21.70 8.0% GAAP Rent Growth

2/

1,104,029 4.8 14.26 $ 4.27 $ 25.81 $ 23.18 $ 11.3% Cash Rent Growth

3/

1,104,029 4.8 14.26 $ 4.27 $ 24.49 $ 24.71 $

• 0.9%

Average Office Cash Rental Rates for All In-Place Leases as of:

1/ Excludes capitalized internal leasing costs, which totaled $708,000. 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

$21.36 $22.08 $23.36 $24.22 $24.53 $19 $20 $21 $22 $23 $24 $25 9/30/13 9/30/14 9/30/15 9/30/16 9/30/17

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/ 612,855 2.5% 14,712 $ 24.01 $ 2.4% 2018 2,555,397 10.2% 63,502 24.85 10.4% 2019 3,221,752 12.9% 80,696 25.05 13.2% 2020 2,925,185 11.7% 78,943 26.99 12.9% 2021 2,471,409 9.9% 62,426 25.26 10.2% 2022 2,320,877 9.4% 55,293 23.82 9.0% 2023 1,777,889 7.1% 44,477 25.02 7.3% 2024 1,806,829 7.2% 48,348 26.76 7.9% 2025 1,237,325 5.0% 34,258 27.69 5.6% 2026 1,208,279 4.8% 31,363 25.96 5.1% 2027 and thereafter 4,809,223 19.3% 97,944 20.37 16.0% 24,947,020 100.0% 611,962 $ 24.53 $ 100.0% Percent of Total Annualized Cash Revenue Expiring by Year 1/ Annualized Cash Revenue is September 2017 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12. 2/ Includes 41,000 square feet of leases that are on a month to month basis, which constitute 0.2% 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 142,460 433,624 563,588 645,966 2,852,218 % of Total RSF 0.6% 1.7% 2.3% 2.6% 11.5% Annualized Cash Revenue 2/ 3,714 $ 11,510 $ 14,201 $ 17,303 $ 70,787 $ % of Total Annl Cash Rev 0.6% 1.9% 2.3% 2.9% 11.4% Greensboro RSF 51,891 141,102 102,111 134,342 646,764 % of Total RSF 0.2% 0.6% 0.4% 0.5% 2.6% Annualized Cash Revenue 2/ 1,096 $ 2,450 $ 2,653 $ 2,556 $ 13,132 $ % of Total Annl Cash Rev 0.2% 0.4% 0.4% 0.4% 2.3% Kansas City RSF 2,448 5,423 11,560 % of Total RSF 0.0% 0.0% 0.0% 0.0% 0.0% Annualized Cash Revenue 2/

• $

63 $ 133 $

• $

272 $ % of Total Annl Cash Rev 0.0% 0.0% 0.0% 0.0% 0.0% Memphis RSF 25,421 259,790 218,696 125,881 905,938 % of Total RSF 0.1% 1.0% 0.9% 0.5% 3.7% Annualized Cash Revenue 2/ 625 $ 6,612 $ 5,454 $ 3,649 $ 23,543 $ % of Total Annl Cash Rev 0.1% 1.1% 0.9% 0.6% 3.8% Nashville RSF 45,736 333,745 435,852 454,065 2,612,277 % of Total RSF 0.2% 1.3% 1.7% 1.8% 10.4% Annualized Cash Revenue 2/ 1,226 $ 8,625 $ 11,459 $ 11,722 $ 58,713 $ % of Total Annl Cash Rev 0.2% 1.4% 1.8% 1.9% 9.5% Orlando RSF 75,089 256,487 259,546 213,137 937,580 % of Total RSF 0.3% 1.0% 1.0% 0.9% 3.8% Annualized Cash Revenue 2/ 2,312 $ 6,602 $ 6,480 $ 5,481 $ 23,573 $ % of Total Annl Cash Rev 0.4% 1.1% 1.1% 0.9% 4.0% Pittsburgh RSF 46,364 118,030 99,758 1,734,735 % of Total RSF 0.0% 0.2% 0.5% 0.4% 7.0% Annualized Cash Revenue 2/ 85 $ 1,353 $ 2,988 $ 5,156 $ 44,719 $ % of Total Annl Cash Rev 0.0% 0.2% 0.5% 0.8% 7.3% Raleigh RSF 52,801 619,923 748,970 353,981 2,930,036 % of Total RSF 0.2% 2.5% 3.0% 1.4% 11.8% Annualized Cash Revenue 2/ 1,160 $ 13,133 $ 18,154 $ 9,797 $ 72,087 $ % of Total Annl Cash Rev 0.2% 2.1% 3.0% 1.6% 11.8% Richmond RSF 125,902 166,979 190,017 212,797 1,055,846 % of Total RSF 0.5% 0.7% 0.8% 0.9% 4.2% Annualized Cash Revenue 2/ 2,500 $ 3,531 $ 4,156 $ 4,508 $ 19,350 $ % of Total Annl Cash Rev 0.4% 0.6% 0.7% 0.7% 3.2% Tampa RSF 93,555 294,935 579,519 685,258 1,944,877 % of Total RSF 0.4% 1.2% 2.3% 2.7% 7.7% Annualized Cash Revenue 2/ 1,994 $ 9,623 $ 15,018 $ 18,771 $ 47,933 $ % of Total Annl Cash Rev 0.3% 1.6% 2.5% 3.1% 7.8% Total RSF 612,855 2,555,397 3,221,752 2,925,185 15,631,831 % of Total RSF 2.5% 10.2% 12.9% 11.7% 62.7% Annualized Cash Revenue 2/ 14,712 $ 63,502 $ 80,696 $ 78,943 $ 374,109 $ % of Total Annl Cash Rev 2.4% 10.4% 13.2% 12.9% 61.1% 1/ Includes 41,000 square feet of leases that are on a month to month basis, which constitute 0.2% of total annualized revenue. 2/ Annualized Cash Revenue is September 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 34,044 $ 5.47% 3.8 Metropolitan Life Insurance 661,060 16,871 2.71% 9.5 PPG Industries 356,215 9,727 1.56% 13.6 EQT Corporation 319,269 7,544 1.21% 7.0 Healthways 263,598 7,038 1.13% 5.4 International Paper 278,444 6,789 1.09% 11.2 Bass, Berry & Sims 201,588 6,581 1.06% 7.3 State of Georgia 320,449 6,343 1.02% 4.3 American General Life 173,834 5,777 0.93% 9.3 Novelis 168,949 5,687 0.91% 6.9 Aon 190,683 5,630 0.90% 2.1 Marsh USA 177,382 5,537 0.89% 4.5 PNC Bank 187,076 5,336 0.86% 9.2 Vanderbilt University 251,415 5,327 0.86% 3.0 Syniverse Technologies 218,678 4,923 0.79% 9.1 Lifepoint Corporate Services 202,991 4,809 0.77% 11.5 Laser Spine Institute 176,089 4,726 0.76% 15.0 AT&T 197,826 4,698 0.75% 1.8 HDR Engineering 126,075 4,302 0.69% 2.0 BB&T 229,666 4,245 0.68% 3.3 6,113,664 155,934 $ 25.04% 6.8

Percent of Annualized Revenue by Industry

1/ Annualized Cash Revenue is September 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 25.8% Health Care and Social Assistance 13.5% Finance/Banking 13.0% Insurance 9.4% Manufacturing 7.0% Government/Public Administration 6.8% Real Estate Rental and Leasing 4.8% Administrative and Support Services 3.9% Educational Services 2.8% Information 2.7% Telecommunication 2.7% Accommodation and Food Services 1.7% Transportation and Warehousing 1.6% Energy 1.4% Other Services (except Public Administration) 1.4% Retail Trade 0.8% Wholesale Trade 0.7%

16

Three months ended September 30, Dollar Percentage 2017 2016 Change B/(W) Change B/(W) Rental revenues 1/ 159,332 $ 155,006 $ 4,326 $ 2.8% Operating expenses (56,941) (56,014) (927) (1.7%) Cash NOI 1/ 102,391 98,992 3,399 3.4% Lease termination fees 2/ 1,233 229 1,004 438.4% Cash NOI with Term Fees 3/ 103,624 99,221 4,403 4.4% Straight-line rent and other non-cash adjustments 4/ 2,140 3,225 (1,085) (33.6%) GAAP NOI 105,764 $ 102,446 $ 3,318 $ 3.2% Average occupancy 92.9% 93.4% (0.5%) Rentable square feet 28,239,000 28,239,000 Nine months ended September 30, Dollar Percentage 2017 2016 Change B/(W) Change B/(W) Rental revenues 1/ 473,083 $ 459,519 $ 13,564 $ 3.0% Operating expenses (166,517) (166,426) (91) (0.1%) Cash NOI 1/ 306,566 293,093 13,473 4.6% Lease termination fees 2/ 1,448 2,182 (734) (33.6%) Cash NOI with Term Fees 3/ 308,014 295,275 12,739 4.3% Straight-line rent and other non-cash adjustments 4/ 9,476 14,320 (4,844) (33.8%) GAAP NOI 317,490 $ 309,595 $ 7,895 $ 2.6% Average occupancy 93.2% 93.3% (0.1%) Rentable square feet 28,239,000 28,239,000 Year to Date: 2017 vs 2016 GAAP NOI Occupancy Percentage Percentage Market Change Change Atlanta 2.8% (1.3%) Greensboro 2.9% (0.8%) Kansas City (17.9%) (10.3%) Memphis (1.3%) (1.1%) Nashville (4.0%) (4.7%) Orlando 11.2% 1.3% Pittsburgh 4.7% 1.6% Raleigh 1.3% 0.9% Richmond 2.9% 0.2% Tampa 7.8% 4.1% 2.6% (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

Nine Months Ended 9/30/17 Occupancy 1/ 80.8% Square feet 823,000 Gross sales price $90,950 ThyssenKrupp Market Memphis Property type Office Number of buildings 1 Date sold February 22, 2017 Occupancy 1/ 100.0% Square feet 78,000 Gross sales price $13,000 Situs I, II, III Market Raleigh Property type Office Number of buildings 3 Date sold September 8, 2017 Occupancy 1/ 80.4% Square feet 157,000 Gross sales price $25,550 Parkwest I, II Market Raleigh Property type Office Number of buildings 2 Date sold September 8, 2017 Occupancy 1/ 85.5% Square feet 95,000 Gross sales price $13,400 Southwind Market Memphis Property type Office Number of buildings 7 Date sold September 14, 2017 Occupancy 1/ 77.0% Square feet 493,000 Gross sales price $39,000 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/ 9/30/17 1/ Leased % Date Date Virginia Urology Richmond 87,000 29,140 $ 11,036 $ 100.0% 3Q 18 3Q 18 751 Corporate Center Raleigh 89,700 21,850 5,352 35.3% 4Q 18 4Q 20 MetLife III 2/ Raleigh 219,000 64,500 8,911 100.0% 2Q 19 2Q 21 Virginia Springs I 3/ Nashville 109,000 34,300 5,120 33.8% 2Q 19 3Q 20 Mars Petcare - Ovation Nashville 223,700 96,200 12,234 100.0% 3Q 19 3Q 19 728,400 245,990 $ 42,653 $ 82.1% Occupancy Office Completed Not Stabilized 4/ as of 9/30/17 Riverwood 200 Atlanta 299,000 107,000 $ 98,686 $ 80.6% 74.6% 2Q 17 2Q 19 Seven Springs II Nashville 134,700 38,100 33,698 63.0% 63.0% 2Q 17 3Q 18 5000 CentreGreen Raleigh 166,500 40,850 32,093 45.9% 33.8% 3Q 17 3Q 19 600,200 185,950 $ 164,477 $ 67.0% 60.7% Industrial Completed Not Stabilized 4/ Enterprise IV Greensboro 128,000 8,040 $ 7,027 $ 62.5% 62.5% 3Q 17 4Q 18 Total Pipeline 1,456,600 439,980 $ 214,157 $ 74.2% Mars Petcare Site in Nashville 1/ Includes deferred lease commissions, which are not classified as development in-process on our consolidated balance sheet. 2/ Pre-lease of 100% contains a required take down of one floor in Q1 '20 and one floor in Q1 '21. 3/ Recorded on our consolidated balance sheet in land held for development, not development in-process. 4/ "Completed not stabilized" properties are recorded on our consolidated balance sheet in the land and building and tenant improvement accounts, not development in-process.

Development Activity(dollars in thousands)

19

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

• Tampa

37 813,000

• Raleigh

36 976,000

• Greensboro

30 240,000 220,500 Richmond 4/ 13 200,000

• Orlando

2 410,000

• Atlanta

1 175,000

• Core total

180 4,087,000 220,500 Non-core total 205 Total 385 Cost Basis 1/ 2/ 3/ 4/ 94,764 $ The 385 acres of Development Land has an estimated market value of between $105M to $110M.

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 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 1/:

Venture's Books Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Joint Venture Own % Revenue NOI Revenue NOI Plaza Colonnade, Tenant-in-Common 50.0% 3,231 $ 2,053 $ 9,462 $ 6,115 $ Highwoods DLF Forum, LLC 25.0% 1,781 867 8,287 5,159 Kessinger/Hunter & Company, LC 26.5% 1,690 640 4,887 1,654 Total 6,702 $ 3,560 $ 22,636 $ 12,928 $ Venture's Books As of September 30, 2017 Total Total Joint Venture Own % Assets Debt Liabilities Plaza Colonnade, Tenant-in-Common 50.0% 56,436 $ 63,695 $ 66,831 $ Highwoods DLF Forum, LLC 25.0% 95,262 32,266 36,491 Kessinger/Hunter & Company, LC 26.5% 3,395

• 327

Highwoods DLF 98/29, LLC 22.8% 33,904

• 54

Total 188,997 $ 95,961 $ 103,703 $

Summary of Joint Ventures:

Percentage of Joint Venture Annualized Rentable Cash Market Square Feet Occupancy Revenue 2/ 3/

Kansas City

292,000 99.5% 52.7%

Richmond 4/

345,000 100.0% 28.4%

Raleigh

635,000 49.1% 18.9%

Total

1,272,000 74.5% 100.0%

Disposition Activity:

1/ Excludes joint ventures sold during the year. 2/ Annualized Cash Revenue is September 2017 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12. 3/ Annualized Cash Revenue is based on Highwoods' share only. 4/ This joint venture is consolidated. 5/ Gross sales price includes Highwoods' share only.

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

Date Square Gross Sales Name Own % Market Sold Footage Occupancy Price 5/ Third quarter 2017: Highwoods DLF 98/29, LLC 22.8% Orlando 7/31/17 227,000 100.0% 8,330 $ Highwoods DLF 97/26 DLF 99/32, LP 42.9% Orlando 7/31/17 79,000 100.0% 6,388 2017 totals: 306,000 100.0% 14,718 $

21