MacKenzie Realty Capital, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. Total real estate assets, net, increased to $203.04 million from $189.60 million as of June 30, 2024. Total assets rose to $243.53 million, up from $233.09 million, while total liabilities also increased to $141.50 million from $125.14 million. Consequently, total stockholders’ equity decreased to $73.45 million from $82.36 million.
For the three months ended September 30, 2024, the company generated revenue of $4.95 million, a notable increase from $3.56 million in the same period of 2023. This growth in revenue was primarily attributed to the acquisition of three office buildings: Green Valley Executive Center, One Harbor Center, and Green Valley Medical Center. However, total operating expenses surged to $12.39 million from $5.82 million year-over-year, leading to an operating loss of $7.44 million, compared to a loss of $2.26 million in the prior year. The net loss for the quarter was $7.41 million, up from $4.21 million in 2023, with net loss attributable to common stockholders reaching $8.14 million, compared to $4.60 million in the previous year.
The company’s cash flow from operating activities improved to $644,359 from $517,066 in the same quarter of 2023. However, the net decrease in cash and cash equivalents was $1.11 million, with cash and cash equivalents totaling approximately $11.97 million at the end of the period.
Strategically, MacKenzie Realty Capital has been active in acquisitions, including the consolidation of Green Valley Medical Center, which added $13.62 million in fair value of assets. The company also listed Hollywood Apartments for sale in August 2024, indicating a shift in its asset management strategy.
The company’s financial management includes a focus on maintaining its REIT status, which allows it to avoid federal income taxes by distributing at least 90% of its taxable income. As of September 30, 2024, the company had raised approximately $119.10 million from common stock offerings and $18.56 million from Series A preferred stock.
Overall, while revenue growth was evident, the substantial increase in operating expenses and net losses highlighted challenges in profitability amid ongoing strategic developments.
About MacKenzie Realty Capital, Inc.
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