As a public REIT in an evolving office sector, Highwoods Properties, Inc. (NYSE: HIW) has continued its strategy of shedding underutilized resources to access capital. This year, Highwoods shed 42 acres of land for $16.5 million. It will report a $12.4 million gain on the transaction, enabling the company to narrow its funds from operations guidance for 2007 to between $2.53 and $2.65 per share. Ed Fritsch, president and CEO of Highwoods, says this is a strategy the REIT has been practicing since 2005.

"We undertook a new strategic plan in 2005 with a number of initiatives, one of them to improve the quality of our portfolio," Fritsch says. "We wanted to sell the non-core assets, both land and holdings, and begin using the proceeds for office development."

Fritsch says the company has sold approximately $600 million worth of buildings and $75 million worth of land since 2005, and has started more than $450 million worth of development. "We've basically been selling the fat to build the muscle."

Fritsch calls Highwoods' formula a win-win scenario. "We've had an exceptional shareholder return that's the result of our long-term investors understanding our strategy. We'll continue to execute a strategy that's proven effective and beneficial to our shareholders."