Mackenzie Realty Stock Price, News & Analysis

MacKenzie Realty Capital, Inc. (MKZR) is a real estate investment trust (REIT) that reports a single operating segment focused on income-producing real estate properties. According to available disclosures, its activities are related to investing in real estate and real estate-related assets. The company is incorporated in Maryland and its sector classification is Real Estate Investment Trusts.

Information provided indicates that MacKenzie Realty Capital, Inc. is associated with real estate investment management and real estate securities. Disclosures state that it is a real estate investment manager that utilizes an approach to real estate securities and has specialized in discounted real estate securities and asset management. The company is based in Orinda, California.

Corporate structure and governance

MacKenzie Realty Capital, Inc. is organized as a Maryland corporation and files reports with the U.S. Securities and Exchange Commission under Commission File Number 000-55006. The company holds annual meetings of stockholders, where stockholders vote on the election of directors and the ratification of its independent registered public accounting firm. A definitive proxy statement describes the process for voting, record dates, quorum requirements and the role of the Board of Directors in soliciting proxies.

Stockholders of MacKenzie Realty Capital, Inc. vote on the election of directors to serve until the next annual meeting and on the ratification of the selection of Baker Tilly US, LLP (also referenced as Baker Tilly, LLP) as the independent registered public accounting firm for specified fiscal years. The proxy materials explain that each share of common stock entitles the holder to one vote and outline how stockholders may vote by mail, telephone or in person at the annual meeting.

Real estate focus and multi-family portfolio

Company filings describe a focus on income-producing real estate properties and real estate-related assets. MacKenzie Realty Capital, Inc. has disclosed a multi-family portfolio and a development project. In an 8-K filing, the company reported the creation of a wholly owned subsidiary, MacKenzie Apartment Communities, Inc. (MAC). MacKenzie Realty Capital, Inc. contributed all of its multi-family properties and its development project to MAC in exchange for shares of MAC common stock.

The company reported that an independent third-party real estate advisory firm was engaged to estimate the fair value of certain real estate properties. The advisory firm’s work involved estimating the value of real estate and real estate-related assets using approaches such as discounted cash flow analysis of projected net operating income and market-based comparisons where appropriate. The firm’s report was provided to MacKenzie Realty Capital, Inc. and was subject to assumptions and limiting conditions described in that report.

MacKenzie Apartment Communities, Inc. (MAC)

According to an 8-K filing, MacKenzie Realty Capital, Inc. created MacKenzie Apartment Communities, Inc. as a wholly owned subsidiary. The filing states that MacKenzie Realty Capital, Inc. contributed all of its multi-family properties and its development project to MAC in exchange for shares of MAC. The Board of Directors of MAC approved an estimated net asset value (NAV) per share for MAC common stock as of a specified date, using a methodology based on the fair value of real estate and other assets, less the fair value of total liabilities.

The MAC Board described its methodology for estimating the value of MAC’s real estate assets, including reliance on the appraisal firm’s valuations as of a prior date and the use of construction cost for a newly constructed multifamily property, Aurora at Green Valley. The filing explains that the estimated per share value for MAC is based on net asset value and does not reflect enterprise value or potential premiums or discounts that could arise if MAC shares were listed on a national securities exchange or if MAC or its assets were sold.

Communications with stockholders

Filings show that MacKenzie Realty Capital, Inc. communicates with its stockholders through press releases, letters and proxy materials. The company has reported mailing letters to Series A, B and C preferred stockholders and has furnished press releases as exhibits to Form 8-K filings. These communications have included information about strategic reviews of the multi-family portfolio, the creation of MAC, tender offers involving real estate investment trusts, and financial results for specified periods.

The company’s filings emphasize that certain information furnished under Regulation FD or in press releases is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and is intended to be considered in the context of more complete information in its SEC filings and other public announcements.

Stockholder meetings and voting

MacKenzie Realty Capital, Inc. holds annual meetings of stockholders at its offices in Orinda, California. Proxy materials describe the agenda for these meetings, which has included the election of directors and the ratification of the independent registered public accounting firm. The materials explain how stockholders of record and beneficial owners can vote, how proxies can be authorized and revoked, and how broker non-votes and abstentions are treated for quorum and voting purposes.

The company’s proxy statement also describes that the Board of Directors recommends that stockholders vote in favor of the director nominees and in favor of the ratification of the selection of Baker Tilly US, LLP as the independent registered public accounting firm for specified fiscal years. The proxy materials provide additional detail on the mechanics of the annual meeting, including record dates, quorum thresholds and vote requirements for each proposal.

Regulatory reporting and disclosures

As a reporting company, MacKenzie Realty Capital, Inc. files periodic and current reports with the SEC, including Forms 8-K and proxy statements. Its 8-K filings have covered topics such as financial results for fiscal years and quarters, strategic reviews of its multi-family portfolio, tender offers related to real estate investment trusts, the formation of MacKenzie Apartment Communities, Inc., and communications with preferred stockholders.

These filings provide investors with information about the company’s real estate investment activities, corporate actions and governance processes. They also describe the limitations of certain estimates, such as the estimated NAV per share of MAC, and caution that such estimates are based on assumptions and conditions at a point in time and may differ from values realized in transactions or trading prices on an exchange.