MacKenzie Realty Capital, Inc. reported a net loss of $9.59 million for the six months ended December 31, 2025, compared to a net loss of $13.42 million for the same period in 2024. The company's revenue from rental, reimbursements, and other property income decreased to $9.13 million from $12.98 million year-over-year. This decline was primarily attributed to early lease terminations at key properties, including the Satellite Place Office Building and Main Street West Office Building. Operating expenses also decreased significantly, from $24.98 million in 2024 to $17.33 million in 2025, largely due to the absence of impairment losses that had impacted the previous year’s results.
In terms of financial position, total assets increased slightly to $238.05 million as of December 31, 2025, from $235.99 million at the end of June 2025. This increase was driven by a rise in cash and cash equivalents, which grew to $4.34 million from $3.63 million. However, total liabilities also rose to $152.02 million, up from $142.45 million, primarily due to increased mortgage notes payable, which reached $129.91 million, reflecting additional borrowings to fund ongoing projects, including the construction of the Aurora at Green Valley.
Strategically, MacKenzie Realty Capital has been active in expanding its portfolio. The company completed the construction of the Aurora at Green Valley, a multi-family residential community, which began leasing in August 2025. Additionally, the company has listed the Woodland Corporate Center for sale, classifying it as an asset held for sale. The company also restructured its investment strategy by contributing its multi-family portfolio into a newly formed entity, MacKenzie Apartment Communities, to allow for separate evaluation of its commercial and residential assets.
Operationally, the company reported a total of 1,906,580 shares of common stock outstanding as of December 31, 2025, following a 1-for-10 reverse stock split effective August 4, 2025. The company’s employee headcount remained stable, and it continues to focus on maintaining high occupancy rates across its properties, with several properties reporting occupancy levels above 90%. The company’s outlook remains cautious, with management noting potential challenges from rising interest rates and economic conditions that could impact future performance and investment opportunities.
Looking ahead, MacKenzie Realty Capital aims to leverage its existing assets and explore new investment opportunities while managing its debt levels prudently. The company plans to continue its strategy of investing in real estate assets and may consider additional financing options to support growth initiatives. However, management has acknowledged the potential for market volatility and economic downturns to affect operations and investment returns.
About MacKenzie Realty Capital, Inc.
MacKenzie Realty Capital, Inc. is a Maryland-based REIT focused on acquiring and managing real estate assets across the U.S. It invests primarily in commercial properties, real estate securities, and debt, emphasizing value-add and opportunistic strategies. The company operates through subsidiaries and joint ventures, generating income from property rentals, real estate investments, and related securities, with a core focus on capital appreciation and income for shareholders.
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