MacKenzie Realty Capital Reports $11.64 Million Net Loss, Organizational Changes and Revenue Decline

MacKenzie Realty Capital, Inc. reported a net loss of $11.64 million for the nine months ended March 31, 2026, a significant improvement compared to a net loss of $20.33 million for the same period in the previous year. The company's revenue from rental, reimbursements, and other property income decreased to $14.57 million from $17.26 million year-over-year. The decline in revenue was primarily attributed to early lease terminations and a reduction in occupancy rates in some commercial properties. Despite the decrease in revenue, the company experienced a reduction in total operating expenses, which fell to $25.27 million from $35.08 million, largely due to lower depreciation and amortization expenses.

In terms of strategic developments, MacKenzie Realty Capital underwent a significant organizational change by contributing its multi-family residential properties to a newly formed entity, MacKenzie Apartment Communities, Inc. (MAC), effective January 1, 2026. This move aims to allow investors to evaluate the performance of the commercial and residential portfolios separately. As of March 31, 2026, the company reported total assets of $239.44 million, up from $235.99 million as of June 30, 2025, driven by new investments and the capitalization of construction costs at the Aurora at Green Valley project.

Operationally, the company reported a total of 2,164,158 shares of common stock outstanding as of March 31, 2026, following a reverse stock split that took effect in August 2025. The company also noted an increase in its mortgage notes payable, which rose to $130.17 million from $120.42 million, reflecting additional borrowings to fund property acquisitions and development projects. The occupancy rates for its commercial properties stood at 66%, while residential properties reported an occupancy rate of 88%, indicating a stable demand for its real estate assets.

Looking ahead, MacKenzie Realty Capital expressed cautious optimism regarding its future performance, emphasizing the importance of maintaining liquidity and flexibility in its investment strategy amid a challenging economic environment characterized by rising interest rates and inflation. The company plans to continue leveraging its existing assets while exploring new investment opportunities, particularly in the multi-family sector, to enhance shareholder value. The management remains committed to meeting its REIT distribution requirements to avoid federal income taxes, which will be a key focus in the upcoming fiscal periods.