New York-based HGI Capital Management sold its 150,618 shares in Kite Realty Group Trust, resulting in a net position change of $3.4 million. The company’s top holdings now include EQIX, CBRE, FR, DLR, and HD. KRG shares are priced at $22.64, down 16% over the past year.

HGI Capital Management fully exited its position in Kite Realty Group Trust during the third quarter, reducing assets by $3.4 million. The move comes as the fund is reducing its U.S. equity holdings. KRG operates a diversified portfolio of shopping centers and reported positive operating results in the latest quarter.

Kite Realty Group Trust, a leading retail-focused REIT, saw HGI Capital Management fully exit its position during the third quarter. The company manages a portfolio of shopping centers and reported growth in funds from operations and net operating income in the latest quarter. Despite operational gains, KRG shares remain down over 70% from highs a decade ago.

HGI Capital Management’s exit from Kite Realty Group Trust reflects a broader shift away from office and retail REITs. Despite positive operating results, KRG shares are significantly below previous highs. The move raises questions about the future returns of structurally challenged real estate investments.

HGI Capital Management’s exit from Kite Realty Group Trust during the third quarter highlights a significant shift in the fund’s holdings. KRG’s positive operating results in the latest quarter were not enough to offset years of equity value erosion. The move reflects a broader trend away from underperforming real estate investments.

Read more at Yahoo Finance: What This Major Exit Signals for Investors