It looks like the fourth quarter CAD (53 cents) did not cover the dividend. A cut this year is probably unavoidable. The substantially lower FFO forecast for 2003 means that full year CAD will be substantially lower that the $2.72 for 2002. The earnings report seems to have both positives and negatives. Other than the CAD, other negatives include lower operating income from existing properties. Rentals are being turned over at lower rates and the Worldcom and US Airways situations are still unresolved.
There are some positive points. The company seems to think that they've seen a bottom in their markets and lease activity in the fourth quarter was the highest in awhile. In addition debt has decreased and the company has some cash to redeploy from sale of properties.
Keep in mind the trouble from worldcom & u s air was priced in the end of 2002...no doubt resulting in the dip.
Also as these tentants are replaced(i think we're already seeing this in improved leases this qrt.)HIW will be paying a HIGHER dividend because of increased R.E. values reflecting in higher rents. Be sure this won't happen at once.
I'll be back. But in closing I'll remind you of the three MAIN things when investing in Real Estate...LOCATION, LOCATION, LOCATION. Do you know what the 'sun-belt' is? Anyway I'll be back.