HIW Q1 profit drop

What happened: On April 29, 2026, Highwoods Properties Inc. (HIW) and American Assets Trust, Inc. (AAT) reported their Q1 earnings. HIW's profit dropped to $31.36 million, or $0.29 per share, from $97.44 million, or $0.91 per share, in Q1 2025. AAT's profit also fell to $5.13 million, or $0.08 per share, from $42.54 million, or $0.70 per share, in the same period last year.

Market impact: The earnings misses by both REITs, which focus on office and industrial properties, suggest a slowdown in the commercial real estate sector. This could impact other REITs and companies with significant exposure to office and industrial properties. Investors may reassess valuations and demand for these assets, potentially leading to a repricing of stocks in the sector.

What to watch next: On May 15, 2026, Prologis Inc. (PLD) and Equinix Inc. (EQIX) are set to report their Q1 earnings. These companies' results will provide further insight into the health of the industrial real estate market. Additionally, the Q1 GDP growth rate, due on April 28, 2026, could offer clues about the broader economic backdrop, which may influence demand for commercial real estate.