MacKenzie Realty Capital Reports $4.09 Million Net Loss, Improved from Previous Year

MacKenzie Realty Capital, Inc. reported a net loss of $4.09 million for the three months ended September 30, 2025, a significant improvement compared to a net loss of $8.14 million during the same period in 2024. The company's revenue from rental, reimbursements, and other property income decreased to $4.54 million, down from $4.95 million year-over-year. This decline was primarily attributed to early lease terminations at the Satellite Place Office Building and Main Street West properties, which offset gains from the acquisition of Green Valley Medical Center in August 2024. The basic and diluted net loss per share attributable to common stockholders was $(2.20), compared to $(6.10) in the prior year.

Total operating expenses for the quarter were $8.03 million, down from $12.39 million in the previous year, largely due to the absence of an impairment loss recorded in 2024. The company incurred $2.20 million in depreciation and amortization, slightly lower than the $2.28 million reported in the prior year. Interest expenses increased to $2.02 million from $1.89 million, reflecting higher borrowing costs associated with the company's financing activities. The overall reduction in operating expenses contributed to the narrower loss for the quarter.

In terms of strategic developments, MacKenzie Realty Capital has been actively expanding its portfolio. The company completed the construction of the Aurora at Green Valley, a multi-family residential community, which began leasing activities in August 2025. Additionally, the company has been involved in various financing activities, including a $10 million revolving line of credit agreement and the issuance of preferred stock, which raised approximately $688,000 during the quarter. As of September 30, 2025, the company had total assets of $241.69 million, an increase from $235.99 million at the end of the previous quarter.

Operationally, MacKenzie Realty Capital's properties showed mixed performance. The company owned nine commercial properties and five residential properties, with varying occupancy rates. As of September 30, 2025, the occupancy rate for the commercial properties averaged around 70%, while the residential properties had a higher average occupancy of approximately 90%. The company continues to face challenges in the competitive real estate market, particularly with rising interest rates and inflation impacting operational costs and rental income.

Looking ahead, MacKenzie Realty Capital aims to leverage its existing portfolio and pursue new investment opportunities, particularly in distressed real estate assets. The company plans to maintain its focus on generating income and capital appreciation while navigating the current economic landscape. Management has indicated that they will continue to evaluate market conditions and adjust their strategies accordingly to enhance shareholder value.