Highwoods Properties Inc (NYSE:HIW) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 11:00 am ET

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Highwoods Properties Inc (NYSE:HIW) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] And we have a question from Rob Stevenson from Janney. Please go ahead.

Analyst
Robert Stevenson

Good morning, guys. How are you guys thinking about the potential for additional dispositions beyond what you guys have just talked about in the back half of the year? Have you guys thought about putting more under the market if the rhetoric on making changes to 1031 exchanges continues to grow? Are you pretty much comfortable with that? Is -- with what you are -- where you are now? Is that a situation where you need to identify some acquisitions or developments for use of capital? How you guys -- help me understand how you guys are thinking about the back-end of 2020 and into 2021 on that front?

Executive
Ted Klinck

Hey, Rob, it's Ted. So, as we mentioned, we sold $23 million in early July. We've got another $72 million of properties that are under contract. And then we do have additional assets that are in various stages of marketing. So, if you add all those together, that's about the high-end of our guidance, we're about $150 million or so. And historically, in any typical year, we're in that $100 million to $150 million of dispo range. So, I'd say, this is going to be somewhat of a typical year for us, is sort of the way we look at it.

Executive
Mark Mulhern

Rob, the only thing I'd add -- it's Mark. We've got some flexibility from a tax perspective. So, we don't necessarily need to do all 1031 exchanges on that. We've got some room and an ability to manage some of that. With respect to the -- maybe future 1031, I think it's a little too early to speculate on that. We really haven't gone through and analyzed maybe the impacts of that going into 2021 just yet.

Operator
Operator

Thank you. We have a question from Dave Rodgers from Baird. Please go ahead.

Analyst
David Rodgers

Yeah. I was wondering if you guys can update us on where that activity or utilization is on the buildings, whether through parking or key fob swipes. And, I guess, maybe trying to get a better sense on when you will have visibility on kind of that new leasing volume? Where do you think those numbers get to -- need to get to here in the near term to start to see that speculative leasing pick up a bit?

Executive
Ted Klinck

Sure. Dave, it's Ted. I'll start, maybe Brian and Brendan may jump in. In terms of building utilization, we track that weekly. Every Tuesday or Monday night or Tuesday morning we get a report from all of our divisions. And that's -- it's somewhat subjective and that we're looking at the paid parking buildings are easy because we can check swipe in, swipe out from a parking standpoint. But otherwise, it's counting cars in the parking lot and walk in the buildings. But on average, depending on the market, it's -- I'd say, 20% to 30% utilized our buildings today and that really --