Recent developments include analyst coverage initiation with a neutral recommendation, insider buying activity, a strategic portfolio review announcement, and reported decreases in quarterly losses.

• Zacks initiated coverage of MacKenzie Realty Capital with a neutral recommendation in July 2026 [N1].
• Insider buying reports throughout 2025 and 2026 indicate ongoing insider confidence in the company [N2][N5][N6][N7][N8].
• The company’s shares surged 20.73% following a strategic portfolio review announcement in December 2025 [N3].
• MacKenzie Realty Capital reported a decrease in Q1 loss in November 2025 [N4].

The company’s disciplined investment approach targeting value-add and opportunistic real estate assets in demographically attractive markets may create opportunities for capital appreciation and stable cash flow. The reorganization of its multi-family portfolio into a dedicated entity could enhance operational focus and unlock value. Insider buying activity and strategic portfolio reviews indicate management’s commitment to value creation. The company’s ability to raise capital through public offerings and preferred stock issuances supports its growth and investment activities. Its niche strategy of acquiring discounted non-traded REIT shares may provide additional income streams and potential for profit upon liquidation or sale.

The company reported a net loss of $14.13 million for the fiscal year ended June 30, 2026, and negative earnings per share, indicating ongoing profitability challenges. Liquidity ratios are not fully disclosed, and cash reserves are limited relative to the net loss. The company’s reliance on external management and advisory fees may impact net returns. Market conditions affecting mid-market real estate and non-traded securities could adversely affect asset values and cash flow. The company’s share repurchase program and capital raising activities may dilute existing shareholders. Regulatory and operational risks inherent in real estate investment trusts and the complexity of its organizational structure may pose challenges.

MacKenzie Realty Capital’s moat is derived from its specialized focus on mid-market real estate assets and its ability to source off-market and opportunistic investments that may be less accessible to larger institutional investors. Its external management by experienced affiliates provides access to investment expertise and operational capabilities. The company’s strategy to acquire majority interests in properties or entities allows consolidation and control, potentially enhancing value creation. Additionally, its niche investment in non-traded real estate securities at discounts to net asset value offers a unique source of cash flow and potential appreciation. The company’s established relationships and investment team experience contribute to its competitive positioning in its targeted markets.

• Market Risk: Exposure to fluctuations in real estate market values and rental income, particularly in mid-market commercial and residential properties.
• Liquidity Risk: Limited disclosed liquidity ratios and cash reserves relative to net losses may constrain operational flexibility.
• Operational Risk: Dependence on external management and advisory firms for investment decisions and asset management.
• Regulatory Risk: Compliance with REIT regulations and securities laws, including potential impacts from changes in tax or securities regulations.
• Concentration Risk: Geographic concentration primarily in California markets may increase vulnerability to regional economic downturns.

• MacKenzie Realty Capital, Inc. is a Maryland corporation incorporated in 2012 and elected to be treated as a REIT under Subchapter M of the Internal Revenue Code.
• The company commenced operations in February 2013 and has a fiscal year-end of June 30.
• It is externally managed by MacKenzie Capital Management, LP under a turnkey administration agreement effective January 1, 2021.
• The company’s investment adviser affiliates provide advisory services for real estate asset acquisition and divestiture under agreements with management fees and bonus fees based on assets and funds from operations.
• The company’s strategy focuses primarily on investing in real estate assets, with up to 20% of its portfolio in illiquid or non-traded debt and equity securities issued by U.S. companies owning commercial real estate.
• In 2026, the company reorganized its real estate operations by separating its multi-family residential portfolio into a newly formed entity, MacKenzie Apartment Communities, Inc. (MAC), which it wholly owns.
• The company owns various commercial and residential real estate properties through subsidiaries and partnerships, including office, multi-family, and mixed-use properties primarily in California.
• MacKenzie Realty Capital completed a 1-for-10 reverse stock split in August 2025, reducing outstanding common shares from approximately 16.7 million to 1.67 million.
• As of June 30, 2026, the company raised approximately $125.76 million from common stock public offerings and additional proceeds from preferred stock offerings and dividend reinvestment plans.
• The company has a share repurchase program and has repurchased millions of dollars in common and preferred stock as of June 30, 2026.
• The company’s investment objective is to generate current income and capital appreciation through acquisition of real estate assets and related debt and equity investments.
• Investment strategies include value-add, opportunistic, and invest-to-own approaches targeting mid-market properties with potential for capital appreciation and cash flow.
• The company targets majority interests in properties or companies owning properties to consolidate financial statements, with non-controlling interests intended to be less than 20% of the portfolio.
• The investment team uses a multi-step process for acquisition including deal origination, evaluation, and acquisition, often sourcing off-market transactions.
• Financial snapshot as of June 30, 2026, shows cash and equivalents of $3.52 million, net loss of $14.13 million, and basic and diluted EPS of -$9.54 per share.
• Liquidity ratios are not fully disclosed but cash and equivalents are reported from SEC filings for the fiscal year ended June 30, 2026.
• The company is registered under Section 12(b) of the Securities Exchange Act and files periodic reports including 10-K, 10-Q, and 8-K.
• Recent news includes a neutral coverage initiation by Zacks in July 2026, insider buying reports throughout 2025 and 2026, a strategic portfolio review announcement in December 2025, and a reported decrease in Q1 loss in November 2025.