Shares of MacKenzie Realty Capital, Inc. (MKZR Quick QuoteMKZR - Free Report) have lost 1.5% since the company reported its earnings for the quarter ended June 30, 2026. This compares with the S&P 500 Index’s 1.3% gain over the same time frame. Over the past month, the stock has lost 11.2% against the S&P 500’s 0.7% rise.

MacKenzie’s Earnings Snapshot

For the fiscal year ended June 30, 2026, MacKenzie reported net revenues of $20 million, down 9.3% from the comparable prior-year period. Net loss narrowed to $14.1 million from $23.9 million, while net operating loss narrowed to $15.6 million from $23.5 million. Basic and diluted net loss attributable to common stockholders was $9.54 per share compared with $18.66 per share a year earlier.

Commercial segment revenues were $13.1 million, down 19.2% from $16.2 million in fiscal 2025, while residential segment revenues increased 17.8% to $6.9 million from $5.9 million. The commercial segment recorded a net loss of $5.1 million compared with $13.1 million, while the residential segment’s net loss was $3.3 million compared with $2.9 million.

MKZR’s Other Key Business Metrics

MacKenzie ended fiscal 2026 with total assets of $235.3 million, including $212.7 million of net real estate assets and $3.5 million of cash and cash equivalents as of June 30, 2026. Mortgage notes payable were $131.9 million, while the line of credit stood at $10 million and notes payable totaled $3.9 million. Total liabilities were $156.1 million.

Cash used in operating activities was $3.3 million for fiscal 2026 compared with $1.7 million in fiscal 2025. MKZR also used $9.14 million in investing activities, including $9.15 million invested in real estate assets. Financing activities included $22.8 million of borrowings under mortgage notes payable and $11.7 million of mortgage repayments.

MacKenzie’s Management Commentary

President and CEO Robert Dixon said the annual results were in line with MKZR’s internal expectations despite the decline in revenues. Management highlighted the reductions in both operating loss and net loss and said MacKenzie remains focused on growth initiatives while maintaining financial discipline.

Factors Influencing MKZR’s Results

The revenue decline primarily reflected $3 million of lease termination income recognized in fiscal 2025, which created a tougher year-over-year comparison. The commercial segment also recorded a $1.7 million impairment loss on assets held for sale in fiscal 2026 compared with a $9.5 million impairment loss in the prior year.

Operating expenses fell 21.7% to $35.6 million from $45.5 million. Interest expense remained a significant cost at $9.9 million compared with $8.5 million in fiscal 2025, while depreciation and amortization declined 20% to $9.1 million from $11.4 million. The substantial reduction in the prior-year impairment burden helped narrow the overall operating loss despite lower revenues.

MacKenzie’s Other Developments

MacKenzie’s board temporarily suspended the Preferred Share Repurchase Program to give the company greater flexibility while evaluating strategic alternatives presented by financial adviser Maxim Group LLC, including potential reverse takeovers. Management said exchanges of preferred shares for common stock had contributed to selling pressure on the common shares, potentially complicating negotiations around strategic transactions. The board expects to reassess the repurchase program, although MKZR cautioned that there is no assurance that a strategic transaction will be completed.