Why One Real Estate Fund Dumped Its $4 Million Stake in This Iconic NYC Office REIT

3 weeks ago 18

Jonathan Ponciano, The Motley Fool

Mon, December 8, 2025 astatine 5:20 AM CST 5 min read

New York City-based HGI Capital Management sold 494,696 shares of Empire State Realty Trust successful the 3rd quarter, reducing its presumption by astir $4 million.
The transaction represented 11.0% of HGI Capital’s reported 13F assets nether management.
The determination marked a afloat exit for HGI Capital, which reported holding nary Empire State shares astatine quarter-end.
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On November 14, New York City-based HGI Capital Management disclosed it afloat exited its presumption successful Empire State Realty Trust (NYSE:ESRT), selling 494,696 shares for an estimated $4 cardinal during the 3rd quarter.

According to a filing with the Securities and Exchange Commission dated November 14, HGI Capital Management sold each 494,696 shares of Empire State Realty Trust (NYSE:ESRT) during the 3rd quarter. The estimated worth of the involvement exited was $4 cardinal based connected mean quarterly pricing. The fund’s reported assets nether absorption totaled $36.4 cardinal crossed 21 positions arsenic of September 30.

HGI Capital's Empire State Realty Trust presumption was antecedently 5.4% of AUM.

Top holdings aft the filing:

NASDAQ: EQIX: $2.4 cardinal (6.6% of AUM)
NYSE: CBRE: $2.3 cardinal (6.3% of AUM)
NYSE: FR: $2 cardinal (5.6% of AUM)
NYSE: DLR: $2 cardinal (5.5% of AUM)
NYSE: HD: $2 cardinal (5.5% of AUM)

As of November 14, shares of Empire State Realty Trust were priced astatine $6.75, down astir 38% implicit the past twelvemonth and good underperforming the S&P 500, which is up 13% successful the aforesaid period.

Metric

Value

Revenue (TTM)	$766.2 million
Net income (TTM)	$39.1 million
Dividend yield	2.1%
Price (as of marketplace adjacent Friday)	$6.75

Empire State Realty Trust owns, manages, and operates a diversified portfolio of bureau and retail properties, including the Empire State Building and different assets successful Manhattan and the greater New York metropolitan area.
The institution generates gross chiefly done leasing bureau and retail space, with a concern exemplary focused connected spot acquisition, repositioning, and operational ratio arsenic a existent property concern spot (REIT).
It caters to a wide scope of commercialized tenants, retailers, and businesses seeking premium bureau and retail locations successful high-demand municipality markets.

Empire State Realty Trust is simply a starring REIT specializing successful bureau and retail properties wrong the New York metropolitan area, astir notably the Empire State Building. The institution leverages a large, diversified spot portfolio and a absorption connected vigor ratio and indoor biology prime to pull high-profile tenants. Its standard and strategical positioning successful premier municipality locations supply a competitory vantage successful the commercialized existent property sector.