Office market weakness and vacancy
A large part of the portfolio is tied to office properties, which the company says the market discounts because of widespread vacancies.
- Scope
- Office assets and lease renewals
- Materiality
- high
MacKenzie Realty Capital, Inc.
MacKenzie Realty Capital, Inc. is a U.S.-based REIT that invests primarily in real estate assets and, to a lesser extent, in securities of real estate-related companies. The portfolio is managed by affiliated advisers and is built around opportunistic, value-add, and invest-to-own transactions, with income coming from rents, investment income, and related fees.
−54,5 %
−108,7 %
+40,2 %
| % | |
|---|---|
| Owned real estate assets | 55% Office, retail, apartment and other income-producing properties held for rent and appreciation. |
| Real estate securities | 20% Equity and debt securities of U.S. real estate companies, including non-traded REITs. |
| Rental and property income | 20% Lease revenue, reimbursements and other income generated from tenant occupancy. |
| Fees and investment income | 5% Interest, dividends and transaction-related fees from investments and securities. |
The company does not sell to end consumers in the usual sense; its economic counterparties are tenants, real estate...
- Commercial tenantsprimary
Businesses leasing office and retail space, such as wine wholesalers, restaurants and local service firms, to generate recurring rent.
- Multifamily tenantsprimary
Residents leasing apartment units in the multifamily portfolio, supporting stable occupancy and rental cash flow.
- Real estate sponsors and operatorssecondary
Owners and developers that receive capital through direct property acquisitions, mezzanine loans or convertible preferred structures.
- Real estate securities issuerssecondary
Non-traded REITs, small-cap REITs and other real estate entities whose securities are purchased at discounts to NAV.
The business is overwhelmingly U.S.-focused, with properties and securities tied to domestic real estate markets...
- •U.S.-centric portfolio and securities exposure
- •California operating footprint through subsidiary and property assets
- •New York-related investment activity through MacKenzie NY 2
- •Local market occupancy and rent trends drive cash flow
- •No meaningful non-U.S. operating footprint disclosed
MacKenzie is focused on buying real estate and real estate-related securities at discounts to estimated value, then...
01
Acquire discounted real estate assetsshort-term
Buying below value is the core source of upside and income generation.
02
Reposition and improve existing propertiesmedium-term
Renovation, redevelopment and lease-up can lift rents and asset value.
03
Use real estate securities to enhance cash flowmedium-term
Securities purchases and tender offers can supplement distributions and liquidity.
The company is exposed to property-level vacancy, lease rollover and valuation risk because its cash flow depends on...
Property valuation and refinancing risk
Returns depend on buying below value and later realizing appreciation; higher rates or weaker cap rates can reduce NAV and financing flexibility.
- Scope
- Value-add and distressed assets
- Materiality
- high
Rescission claims from dividend reinvestment program sales
The company disclosed a possible securities-law defect in prior DRIP issuances that could lead to repurchase obligations.
- Scope
- Potential investor claims and statutory interest
- Materiality
- high
External management and advisory fees
The company is externally managed by affiliates, so fees and related-party arrangements affect costs and incentives.
- Scope
- Operating expenses and capital allocation
- Materiality
- medium
Cybersecurity and data exposure
Tenant, adviser and internal systems are increasingly technology-dependent, raising operational and privacy risk.
- Scope
- Operations and tenant relationships
- Materiality
- medium
Straight-line rental revenue recognition
Can create differences between cash collections and reported rental income
Lease incentives and tenant improvements
Affects rental revenue, deferred rent receivable and property economics
Fair value measurement of investments
Can materially affect unrealized gains/losses and NAV
Use of estimates and valuation judgments
Can change reported asset values and earnings volatility
: 28.4.2026