Highwoods Properties Inc. HIW reported first-quarter 2016 funds from operations (“FFO”) of 82 cents per share, which beat the Zacks Consensus Estimate by 3 cents. Further, the bottom line improved 10 cents year over year. Results reflected a strong same-property net operating income (“NOI”) growth.Total revenue for the quarter rose 13.5% year over year to $164.9 million. However, the top line missed the Zacks Consensus Estimate of $166 million.Quarter in DetailHighwoods leased 902,000 square feet of second-generation office space during the quarter. Occupancy increased 80 basis points (bps) year over year to 92.7%, while same property cash net operating income (“NOI”) rose 3.7% year over year.During first-quarter 2016, Highwoods sold majority of its wholly owned Country Club Plaza assets for $660 million. Also, the company sold $17 million worth other non-core assets during the quarter. As of Mar 31, 2016, Highwoods had $3.3 million of cash and cash equivalents, down from $5 million as of Dec 31, 2015.2016 OutlookHighwoods has reaffirmed its 2016 FFO outlook of $3.18–$3.30. The Zacks Consensus Estimate of $3.24 falls within this range.Our ViewpointImproving revenues from operating properties promise bright prospects for the company. In particular, Highwoods has been focusing on shifting its portfolio mix toward high-growth Sun Belt markets, where long-term favorable demographic trends are expected to drive above-average job growth.However, a large development pipeline exposes the company to higher construction costs, lease-up risks and entitlement delays. Moreover, increasing competition in the space restricts its ability to command relatively higher rents.Highwoods currently carries a Zacks Rank #3 (Hold).We now look forward to other REITs that are scheduled to release first-quarter 2016 results next week. These include General Growth Properties, Inc GGP, Taubman Centers, Inc. TCO and Vornado Realty Trust VNO.Note: Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TAUBMAN CENTERS (TCO): Free Stock Analysis Report GENL GRWTH PPTY (GGP): Free Stock Analysis Report HIGHWOODS PPTYS (HIW): Free Stock Analysis Report VORNADO RLTY TR (VNO): Free Stock Analysis Report To read this article on Zacks.com click here.