MacKenzie Realty (MKZR) swings to positive FFO and AFFO on 27% revenue growth

Rhea-AI Filing Summary

MacKenzie Realty Capital reported much stronger results for the fiscal third quarter ended March 31, 2026. Net revenues rose to $5.4 million, up 27% from $4.3 million a year earlier. Net loss narrowed sharply to $1.0 million from $6.1 million.

The company moved back into positive cash-based performance measures, posting FFO of $308,040 versus negative $3.2 million and AFFO of $537,514 versus negative $2.3 million. Aurora at Green Valley is now stabilized and over 90% leased, and a CNL Healthcare investment generated a $521,718 profit, with related debt repaid.

Positive

• Return to positive FFO and AFFO: FFO improved from negative $3.2 million to positive $308,040 and AFFO from negative $2.3 million to positive $537,514 for the quarter.
• Strong revenue growth with sharply lower loss: Net revenues rose 27% to $5.4 million while net loss narrowed 84% from $6.1 million to $1.0 million.
• Stabilized key property and successful opportunistic investment: Aurora at Green Valley is now over 90% leased, and the CNL Healthcare investment produced a $521,718 profit with the related loan repaid.

Negative

• Company remains unprofitable on a GAAP basis: Despite major improvement, MacKenzie still reported a quarterly net loss of $985,784.
• Non-GAAP dependence: Positive FFO and AFFO rely on adjustments such as adding back $2.1 million of depreciation and other non-cash items, so traditional earnings remain weak.

Insights

REIT and earnings analyst

MacKenzie swings FFO and AFFO to positive with stronger leasing and investment gains.

MacKenzie Realty Capital shows a clear operating rebound this quarter. Net revenues increased to $5.4 million, a 27% rise, while net loss shrank from $6.1 million to $1.0 million as expenses and non-cash items weighed less on results.

Cash-oriented performance turned around: funds from operations improved from negative $3.2 million to positive $308,040, and AFFO improved from negative $2.3 million to positive $537,514. Aurora at Green Valley becoming stabilized and over 90% leased supports recurring income.

The company also realized a $521,718 profit on CNL Healthcare Properties shares funded by a $1.0 million Streeterville Capital borrowing, which has been repaid. Future filings for periods after March 31, 2026 will show whether these improvements are sustainable across the broader portfolio.

8-K Event Classification

2 items: 8.01, 9.01

2 items

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net revenues: $5.4 million Net loss: $985,784 FFO: $308,040 +5 more

8 metrics

Net revenues $5.4 million Quarter ended March 31, 2026; up from $4.3 million in 2025

Net loss $985,784 GAAP net loss for quarter ended March 31, 2026, vs. $6,093,080 in 2025

FFO $308,040 Funds from operations for quarter ended March 31, 2026, vs. -$3,165,005 in 2025

AFFO $537,514 Adjusted funds from operations for quarter ended March 31, 2026, vs. -$2,292,466 in 2025

Aurora at Green Valley leasing Over 90% leased Property described as stabilized and over 90% leased

CNL Healthcare investment profit $521,718 Profit from CNL Healthcare Properties shares funded by $1 million Streeterville loan

Depreciation and amortization add-back $2,114,736 Non-cash depreciation and amortization added back in FFO for Q1 2026

Unrealized investment gain $820,912 Unrealized gain adjustment in FFO reconciliation for three months ended March 31, 2026

Key Terms

Funds from Operations, Adjusted Funds from Operations, NAREIT, straight-line rent, +2 more

6 terms

Funds from Operations financial

"Funds from Operations (“FFO”) – The Company believes that funds from operations (“FFO”), as defined in accordance with the definition used by the National Association..."

Funds from operations (FFO) measures the cash a real estate-focused company generates from its core property operations by adjusting net income to add back non-cash expenses like building depreciation and removing one-time gains or losses from property sales. Investors use FFO like a household’s monthly take-home pay—it's a clearer view of ongoing cash available to pay dividends, maintain properties and fund growth than raw accounting profit.

Adjusted Funds from Operations financial

"The Company defines AFFO as FFO excluding the impact of straight-line rent, above-/below-market leases, amortization of loan fees..."

Adjusted funds from operations is a financial measure that shows how much cash a real estate company generates from its property operations, excluding certain non-recurring items and accounting adjustments. It helps investors understand the company’s true cash flow ability to pay dividends or fund growth. This figure offers a clearer picture of ongoing financial performance by removing irregular or one-time factors that can distort regular income.

NAREIT financial

"FFO, as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts (“NAREIT”), and adjusted funds from operations..."

Nareit is an organization that represents companies and investors involved in real estate investment trusts (REITs), which are companies that own and manage income-producing properties like shopping centers, apartments, or office buildings. It helps promote understanding and support for REITs, which can provide investors with regular income and a way to invest in real estate without buying property directly.

straight-line rent financial

"AFFO excluding the impact of straight-line rent, above-/below-market leases, amortization of loan fees, mark-to-market debt adjustments..."

An accounting method that spreads the total rent cost or rental income evenly across the full lease period, so each reporting period shows the same amount even if actual cash payments vary (for example, due to free months or stepped increases). For investors, straight-line rent matters because it smooths earnings and can hide timing differences between cash flow and reported profit, affecting measures like operating income and the apparent stability of a landlord’s or tenant’s finances—think of turning a lumpy payment schedule into a steady monthly subscription on the books.

mark-to-market debt adjustments financial

"AFFO excluding the impact of straight-line rent, above-/below-market leases, amortization of loan fees, mark-to-market debt adjustments..."

Aurora at Green Valley financial

"announced its Aurora at Green Valley is now stabilized and over 90% leased."

Earnings Snapshot

Net revenues: $5.4 million

Q3 2026

Net revenues $5.4 million +27% YoY

Net loss $985,784 improved from $6,093,080 loss YoY

FFO $308,040 improved from -$3,165,005 YoY

AFFO $537,514 improved from -$2,292,466 YoY

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Understanding 8-K Material Events →

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

(Amendment No. 1)

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report

(Date of earliest event reported)

May 15, 2026

MACKENZIE REALTY CAPITAL INC.

 (Exact name of registrant as specified in its charter)

Maryland		000-55006		45-4355424
(State of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

89 Davis Road, Suite 100 Orinda, California		94563
(Address of principal executive offices)		(Zip Code)

(925) 631-9100

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value	MKZR	Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Explanatory Note

This Amendment No. 1 to the Current Report on Form 8-K (the "Original Filing") that was originally filed with the Securities and Exchange Commission on May 15, 2026 is being filed in order to fix the hyperlink to Exhibit 99.1 within the filing. All other information in the Original Filing remains the same and has not been changed.

Item 8.01 Other Events.

On May 15, 2026, we announced financial results for the 3^rd fiscal quarter ended March 31, 2026. A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

The filing of the attached press release is not an admission as to the materiality of any information therein. The information contained in the release is summary information that is intended to be considered in the context of more complete information included in our filings with the U.S. Securities and Exchange Commission (the “SEC”) and other public announcements that we have made and may make from time to time by press release or otherwise. We undertake no duty or obligation to update or revise the information contained in this press release, although we may do so from time to time as our management believes is appropriate. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosures.

Forward-Looking Statements

This Current Report on Form 8-K may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, our ability to remain financially healthy, and our expected future growth prospects. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory,” “focus,” “work to,” “attempt,” “pursue,” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. For a further discussion of factors that could cause our future results, performance, or transactions to differ significantly from those expressed in any forward-looking statement, please see the section titled “Risk Factors” in annual reports on Form 10-K and quarterly reports on Form 10-Q that we file with the Securities and Exchange Commission from time to time.

Item 9.01 Financial Statements and Exhibits.

Exhibits

Exhibit Number	Description
99.1	Press Release issued May 15, 2026
104	Cover Page Interactive Data File (embedded within the Inline XBRL document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MACKENZIE REALTY CAPITAL, INC.
	(Registrant)
Date: May 18, 2026	By:	/s/ Robert Dixon
		Robert Dixon
		President

2026-05-15 0001550913 false 0001550913 2026-05-15 2026-05-15

NEWS RELEASE

FOR IMMEDIATE RELEASE

MacKenzie Realty Capital Reports Third Quarter 2026 Financial Results and Stabilization of Development

Orinda, Calif., (May 15, 2026) – MacKenzie Realty Capital, Inc. (Nasdaq: MKZR) (“MacKenzie” or the “Company”) today announced its financial results for the fiscal quarter ended March 31, 2026, and announced its Aurora at Green Valley is now stabilized and over 90% leased.  

Key Financial Highlights:

Operating Results for the Quarter Ended March 31, 2026:

• Net revenues for quarter ended March 31, 2026, were $5.4 million, an increase of 27% from $4.3 million in the same period of 2025.
• Net operating loss was $2.5 million, as compared to a net operating loss of $5.8 million in the same period of 2025, a 57% reduction.
• Net loss was $1.0 million, compared to a $6.1 million loss in the same period of 2025, an 84% reduction.
• The Company had a positive $308,040 of funds from operations (“FFO”) for the quarter compared to negative $3.2 million in the same period of 2025. The net loss of $1.0 million was offset by $2.1 million in depreciation expense, and $0.8 million of unrealized gains from investments.
• Further, adding back straight-line rent adjustments, amortization of below market lease rent, amortization of loan fees, and mark-to-market debt adjustments, the adjusted FFO (“AFFO”) was a positive $537,514 for the fiscal quarter compared to negative $2.3 million for the same period in 2025.  
• Aurora at Green Valley is now stabilized and over 90% leased. 
• As reported on March 6, 2026, the Company borrowed $1 million from Streeterville Capital (“Streeterville”) to purchase 219,959.104 shares of CNL Healthcare Properties, Inc. for $1,000,814 in advance of a merger with Sonida Senior Living (“SNDA”).  The merger closed on schedule and we received a total of $1,562,125 in cash and shares which we sold for a profit of $521,718.  We paid down the loan to Streeterville.

Robert Dixon, CEO and President of MacKenzie Realty Capital, stated, “The quarterly results were in line with our internal expectations, and we are pleased with return to FFO profitability. We remain focused on successfully executing our growth initiatives while maintaining financial discipline which we believe will deliver sustained value creation over the long term.”

“We are particularly pleased that our revenues continue to grow and that we have returned to FFO and AFFO profitability” concluded Mr. Dixon.

Non-GAAP Financial Measures

Reconciliations, definitions and important discussions regarding the usefulness and limitations of FFO and AFFO, the Non-GAAP Financial Measures used in this release, can be found below.

About MacKenzie Realty Capital, Inc. 

MacKenzie, founded in 2013, is a West Coast-focused REIT that intends to invest at least 80% of its total assets in real property, and up to a maximum of 20% of its total assets in illiquid real estate securities.  We intend for the real property portfolio to be approximately 50% multifamily and 50% boutique class A office. The current portfolio includes interests in 5 multifamily properties and 8 office properties plus 1 multifamily development.

For more information, please contact MacKenzie at (800) 854-8357. Please visit our website at: http://www.mackenzierealty.com

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, our ability to remain financially healthy, and our expected future growth prospects. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory,” “focus,” “work to,” “attempt,” “pursue,” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. For a further discussion of factors that could cause our future results, performance, or transactions to differ significantly from those expressed in any forward-looking statement, please see the section titled “Risk Factors” in annual reports on Form 10-K and quarterly reports on Form 10-Q that we file with the Securities and Exchange Commission from time to time. 

89 Davis Road, Suite 100 • Orinda, California 94563 • Toll-Free (800) 854-8357 • Local (925) 631-9100 • www.mackenzierealty.com

Funds from Operations (“FFO”) – The Company believes that funds from operations (“FFO”), as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts (“NAREIT”), and adjusted funds from operations (“AFFO”) are important non-GAAP supplemental measures of our operating performance. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. FFO is defined as net income, computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization. The Company defines AFFO as FFO excluding the impact of straight-line rent, above-/below-market leases, amortization of loan fees, mark-to-market debt adjustments, and certain non-recurring items such as consulting and marketing fees and stock issued as part of our listing efforts. We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and makes comparisons of operating results among REITs more meaningful. We consider FFO and AFFO to be useful measures for reviewing comparative operating and financial performance because, by excluding the applicable items listed above, FFO and AFFO can help investors compare our operating performance between periods or as compared to other companies. We also use AFFO as the basis for computing the quarterly bonus management fee payable to our Real Estate Adviser under the Advisory Management Agreement, as amended effective January 1, 2026. While FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity or operating performance. FFO and AFFO also do not consider the costs associated with capital expenditures related to our real estate assets nor do they purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define AFFO differently than we do.

The following table reconciles our calculations of FFO and AFFO for the three months ended March 31, 2026 and 2025, to net loss the most directly comparable GAAP financial measure, for the same periods:

Three Months Ended:								March 31, 2026		March 31, 2025
Net loss (GAAP Basis)								(985,784)		(6,093,080)
Adjustment for non-cash transactions:
		depreciation and amortization						2,114,736		2,634,617
		impairment loss						-		-
		unrealized loss (gain)						(820,912)		293,458
			FFO					$308,040		$(3,165,005)
Adjustments for:
		Straight line rent adjustment						(11,043)		170,715
		Amortization of below market lease rent						(30,221)		(58,045)
		Amortization of loan fees and Debt mark-to-market						270,738		759,869
			AFFO					$537,514		$(2,292,466)

FAQ

How did MacKenzie Realty Capital (MKZR) perform in the quarter ended March 31, 2026?

MacKenzie Realty Capital reported net revenues of $5.4 million and a net loss of $985,784. Revenue grew 27% from $4.3 million, while net loss narrowed significantly from $6.1 million in the same period of 2025.

Did MacKenzie Realty Capital (MKZR) return to positive FFO and AFFO in Q3 2026?

Yes, MacKenzie generated positive FFO of $308,040 and positive AFFO of $537,514. This compares with negative FFO of $3.2 million and negative AFFO of $2.3 million in the quarter ended March 31, 2025.

What drove the improvement in MacKenzie Realty Capital’s net loss for Q3 2026?

Net loss improved to $985,784 from $6.1 million, helped by higher revenues and lower negative non-cash impacts. The quarter included $2.1 million of depreciation and $820,912 of unrealized investment gains that offset operating losses.

What is the status of MacKenzie Realty Capital’s Aurora at Green Valley property?

Aurora at Green Valley is now considered stabilized and over 90% leased. This high occupancy level supports stronger recurring rental income and was highlighted as a key operational milestone for the quarter ended March 31, 2026.

How did MacKenzie Realty Capital’s CNL Healthcare investment affect results?

MacKenzie borrowed $1 million to buy CNL Healthcare Properties shares ahead of a merger with Sonida Senior Living. The position generated total proceeds of $1,562,125, resulting in a $521,718 profit and allowing repayment of the Streeterville Capital loan.

How does MacKenzie Realty Capital define and use FFO and AFFO?

MacKenzie follows the NAREIT definition of FFO, adding back real estate depreciation and amortization to GAAP net income. AFFO further adjusts for straight-line rent, above/below market leases, loan fees and certain non-recurring items, and is used to assess operating performance and compute a quarterly bonus management fee.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 31.4 KB

Other Documents

• EX-101 INLINE XBRL TAXONOMY EXTENSION - SCHEMA 3.0 KB
• EX-101 INLINE XBRL TAXONOMY EXTENSION - LABEL LINKBASE 19.5 KB
• EX-101 INLINE XBRL TAXONOMY EXTENSION - PRESENTATION LINKBASE 10.7 KB