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HGI Capital Dumps Empire State Realty Trust Stake
8 Dec
Summary
- HGI Capital Management sold all its ESRT shares.
- The stake was valued at an estimated $4 million.
- ESRT stock has underperformed the S&P 500.
New York City-based HGI Capital Management completed a full divestment of its holdings in Empire State Realty Trust (ESRT) during the third quarter. The investment firm sold its entire position of 494,696 shares, an exit estimated to be worth $4 million based on average quarterly pricing. This strategic move reduced HGI Capital's previously held stake, which constituted 5.4% of its total assets under management.
Empire State Realty Trust, known for owning iconic properties like the Empire State Building, has faced market headwinds. As of November 14, ESRT shares were trading at $6.75, reflecting a substantial decrease of approximately 38% over the preceding year. This performance starkly contrasts with the S&P 500's gain of 13% during the same period, highlighting significant underperformance.
HGI Capital's remaining portfolio, valued at $36.4 million across 21 positions as of September 30, is now led by holdings in EQIX, CBRE, FR, DLR, and HD. The firm's decision to exit ESRT underscores broader market trends affecting commercial real estate investment trusts, particularly those heavily concentrated in specific urban markets.
