MacKenzie Realty Capital Reports $14.1 Million Net Loss for Fiscal Year Ending June 30, 2026

MacKenzie Realty Capital, Inc. reported a net loss of $14.1 million for the fiscal year ending June 30, 2026, compared to a loss of $24 million in the previous year. The company's total revenue decreased to $19.36 million from $22.06 million, primarily due to a significant drop in rental income from its commercial properties, particularly the Satellite Place Office Building, which experienced a $3.59 million decline attributed to lease termination income recognized in the prior fiscal year. The company generated $13.07 million in rental and reimbursements from its nine commercial properties, down from $16.17 million in the previous year, while rental income from its five residential properties increased to $6.94 million, up from $5.89 million, largely due to the completion and leasing of the Aurora at Green Valley project.

In terms of operational changes, MacKenzie Realty Capital underwent a strategic reorganization effective January 1, 2026, separating its multi-family residential portfolio from its commercial real estate investments. This reorganization involved contributing several residential properties to a newly formed entity, MacKenzie Apartment Communities, Inc. (MAC), in exchange for shares in MAC. The company also amended its Advisory Management Agreement, reducing the base management fee to 1.25% of gross assets under management and introducing a bonus management fee based on adjusted funds from operations (AFFO). This change aims to align the interests of the advisers with those of the shareholders.

As of June 30, 2026, MacKenzie Realty Capital owned nine commercial properties and five residential properties, with an average occupancy rate of 65% for commercial properties and 90% for residential properties. The company reported a total of 2,774,688 shares of common stock and various series of preferred stock outstanding. The company has also raised approximately $125.76 million from public offerings of common stock and $19.90 million from Series A preferred stock offerings, among other capital-raising activities. However, it has suspended its common stock dividend since May 2025 to preserve liquidity amid economic uncertainties.

Looking ahead, MacKenzie Realty Capital faces challenges due to rising interest rates and inflation, which could impact its ability to finance acquisitions and manage operating costs. The company plans to fund future investments through a combination of cash on hand, net cash from operations, and proceeds from preferred equity offerings. The management remains focused on generating income and capital appreciation through real estate investments, while also evaluating potential acquisitions of distressed properties to enhance returns. The company’s ability to maintain its REIT status and meet distribution requirements will be critical in navigating the current economic landscape.