Highwoods Properties, Inc. · NYSE:HIW
Highwoods Properties — Merger or Acquisition (September 2015)
39 slides from Highwoods Properties's merger presentation, Sep 30, 2015
Slide 1: Enhanced BBD Office Focus
Enhanced BBD Office Focus September 30, 2015
Slide 2: Safe Harbor
SAFE HARBOR Certain matters in this presentation are forward-looking statements within the meaning of the federal securities laws, such as the following: the planned sale of all or substantially all of the Company’s wholly-owned Country Club Plaza (“Plaza”) assets and expected pricing and impact wit
Slide 3: Rocket Pitch: Buy, Buy, Sell
ROCKET PITCH BUY BUY SELL Monarch Plaza & Monarch Tower SunTrust Financial Centre Country Club Plaza Buckhead Atlanta CBD Tampa Kansas City ENHANCED BBD OFFICE FOCUS ENHANCED BBD OFFICE FOCUS // 3
Slide 4: Key Highlights
KEY HIGHLIGHTS ACCRETIVE GROWTH VALUE ADD CLEAR FUNDING PLAN • Cap Rate Arbitrage • Occupancy Upside • Short Term Bridge Facility • Earnings Accretive • Rent Growth • No Additional Equity • CAD Accretive • Operating Synergies • Leverage Neutral SIMPLIFIES STRENGHTHENS BBD OFFICE FRANCHISE TAX EFFICI
Slide 5: Monarch Centre, Buckhead (Atlanta)
MONARCH CENTRE BUCKHEAD (Atlanta)
Slide 6: Monarch Centre: Strategic Investment
MONARCH CENTRE NEXT DOOR NEIGHBORS to SYNERGIES One Alliance Center & Two Alliance Center Superior Buckhead Location • 3 Points of Signaled Access • Direct Connectivity to GA 400 and Peachtree Road • Immediate Proximity to Ritz Carlton, Lenox Square & Phipps Plaza LOCATION . LOCATION . LOCATION. STR
Slide 7: Monarch Centre $303M Overview
MONARCH CENTRE $303M OVERVIEW Market Atlanta Monarch Tower Submarket Buckhead Delivered 1997 Square Feet 896,000 Square Feet 528,000 Occupancy at Closing 88% Stories 25 Occupancy with Known 80% Near-Term Move-Outs Floor Plates 18,000 - 23,000 SF Parking 2.7/1,000 Sustainability LEED Silver • Alterat
Slide 8: Monarch Centre
Monarch Centre // MONARCH CENTRE// 8
Slide 9: Common area visuals
Common area visuals Monarch Centre // MONARCH CENTRE// 9
Slide 10: Monarch Centre
Monarch Centre // MONARCH CENTRE// 10
Slide 11: Buckhead Environment Statistics
TOP 10 AFFLUENT U.S. COMMUNITIES ROBB REPORT 140,000 WALKABLE 24/7 NO DEVELOPMENT SITES 3 MARTA RAIL ENVIRONMENT REMAINING STATIONS DAYTIME POPULATION 82,000 RES IDENTS 300+ RESTAURANTS $2B 5,275 $32M THE FINANCIAL ANNUAL RETAIL SALES HOTEL NEW MARTA ROOMS PEDESTRIAN BRIDGE DISTRICT OF ATLANTA 250 1
Slide 12: Three Points of Signaled Access
Three Points of Signaled Access 1 2 3 N Monarch Centre // 12
Slide 13: Monarch Centre Area Map
Lenox square BRIDGE Monarch Plaza Two Alliance Center Three Alliance Center Late 2016 Monarch Tower One Alliance Center Phipps plaza The Domain at Phipps Plaza 319 Luxury Residences Early 2016 Early 2016 N Monarch Centre // 13
Slide 14: SunTrust Financial Centre, Tampa CBD
SUNTRUST FINANCIAL CENTRE TAMPA CBD SUNTRUST FINANCIAL CENTRE // 14
Slide 15: SunTrust Financial Centre: Strategic Investment
SUNTRUST FINANCIAL CENTRE STRATEGIC INVESTMENT PARTICIPATE IN CBD 40%BELOW DEVELOPMENT SITE ADJACENT RESURGENCE REPLACEMENT CITY BLOCK COST 1 ACRE 77% Occupancy with Known Near-Term Move-outs Highwoodtizing UPSIDE $9.1M of Planned Improvements MOST RECOGNIZABLE WELL LOCATED TROPHY UNRIVALED 360° VIE
Slide 16: SunTrust Financial Centre $124M Overview
SUNTRUST FINANCIAL CENTRE $124M OVERVIEW Market Tampa Submarket CBD Delivered 1992 Square Feet 528,000 Stories 35 Typical Floor Plate 20,000 SF Occupancy at Closing 89% Occupancy with Known Near-Term Move-Outs 77% 1.5/1,000 Parking 540 Embedded Parking 245 in Adjacent Deck/Lot Conference and Fitness
Slide 17: SunTrust Financial Centre
SUNTRUST FINANCIAL CENTRE // 17
Slide 18: SunTrust Financial Centre
SunTrust Financial Centre SUNTRUST FINANCIAL CENTRE // 18
Slide 19: SunTrust Financial Centre
SunTrust Financial Centre SUNTRUST FINANCIAL CENTRE // 19
Slide 20: Tampa CBD
TAMPA CBD $5B PUBLIC & PRIVATE INVESTMENTS PLANNED 20% DAYTIME WORKFORCE INCREASE SINCE 2012 4M+ EVENTS/PERFORMANCES ATTENDEES RESIDENTIAL UNITS 12 + 2.6 MILE PARKS RIVERWALK 1,500+ 1,100+ UNDER 5,100+ $100M INVESTED SINCE 2012 CONSTRUCTION PLANNED 10 2 MUSEUMS & ART GALLERIES PERFORMING ARTS CENTER
Slide 21: SunTrust Financial Centre Location
SUNTRUST FINANCIAL CENTRE AMALIE ARENA CONVENTION CENTER RIVERWALK USF MEDICAL SCHOOL ONE HARBOUR PLACE SUNTRUST FINANCIAL CENTRE // 21
Slide 22: SunTrust Financial Centre Transaction Overview
SUNTRUST FINANCIAL CENTRE TRANSACTION OVERVIEW Investment $126.1M $124.1M Building ($235/SF) Development Land (1 city block) $2.0M Below Replacement Cost 35% Year One GAAP Cap Rate 6.9% SUNTRUST FINANCIAL CENTRE // 22
Slide 23: Country Club Plaza, Kansas City
COUNTRY CLUB PLAZA KANSAS CITY Country Club Plaza //
Slide 24: Established in 1922: A Landmark Destination
ESTABLISHED IN 1922 LONGEST LIFE OF ANY PLANNED SHOPPING CENTER IN THE COUNTRY THE FIRST MASTER-PLANNED SUBURBAN SHOPPING a CENTER IN THE U.S. WORLD'S FIRST SHOPPING CENTER DESIGNED TO ACCOMMODATE CUSTOMERS ARRIVING BY CAR …A LANDMARK DESTINATION 24
Slide 25: Plaza Home to Many Local and National Events
T H E P LA Z A I S H O M E TO M A N Y LO C A L A N D N AT I O N A L E V E N TS 250K+ 200K+ PLAZA ART FAIR VISITORS PLAZA LIGHTS VISITORS 1920S SPANISH-INFLUENCED ARCHITECTURE A N N U A LY A N N U A LY 39 STATUES, MURALS & TILE MOSAICS 12M+ K N O W N B Y M A N Y A S “RODEO DRIVE OF THE MIDWEST” SHOPP
Slide 26: Country Club Plaza Overview
COUNTRY CLUB PLAZA* OVERVIEW Market Kansas City Submarket Midtown/Plaza Established 1922 Square Feet In-Service: Retail 776,000 Office 617,000 Redevelopment: Retail 28,000 Occupancy In-Service: Retail 94% Office 99% Redevelopment: Retail 0% (Underway) Customers Retail 129 Office 97 Parking Spaces 5,
Slide 27: Gateway for top brands
Gateway for top brands. COUNTRY CLUB PLAZA // 27
Slide 28: Nee.
~ Nee. qEnn AAR it Tan)
Slide 29: jpn na pussys
jpn na 123 pussys
Slide 30: Slide 30
Slide 31: Country Club Plaza
COUNTRY CLUB PLAZA // 31
Slide 32: Country Club Plaza
COUNTRY CLUB PLAZA // 32
Slide 33: The Mechanics
THE MECHANICS ENHANCED BBD OFFICE FOCUS
Slide 34: New Bridge Facility
CLEAR FUNDING PLAN NEW BRIDGE FACILITY DEMONSTRATED SUPPORT FROM BANK PARTNERS COMPETITIVE PRICING $350M $250M $100M LIBOR PLUS 110 TOTAL OUTSTANDING AVAILABLE SIX-MONTH TERM SIX-MONTH EXTENSION OPTION THE MECHANICAL // 34
Slide 35: Existing Revolver
CLEAR FUNDING PLAN EXISTING REVOLVER AMPLE LIQUIDITY TO FUND WORKING CAPITAL AND DEVELOPMENT LIBOR PLUS 110 $475M $265M $210M TOTAL OUTSTANDING AVAILABLE SYNDICATE BANKS THE MECHANICAL // 35
Slide 36: ATM Issuance
CLEAR FUNDING PLAN ATM ISSUANCE AUGUST 7 – AUGUST 20 $49.7M NET PROCEEDS $41.89 1.2M PER SHARE SHARES AVERAGE PRICE THE MECHANICAL // 36
Slide 37: Enhanced BBD Office Focus
ENHANCED BBD OFFICE FOCUS // 37
Slide 38: Enhanced BBD Office Focus
Enhanced BBD Office Focus // 38
Slide 39: Development | Acquisition | Leasing | Asset Management | NYSE: HIW
DEVELOPMENT | ACQUISITION | LEASING | ASSET MANAGEMENT | NYSE: HIW
Highwoods Properties — Merger or Acquisition (September 2015) on 6ix