Here are 1-2 brief analogies for Mackenzie Realty Capital (MKZR):

• Blackstone for niche, distressed real estate investments.
• Like a Business Development Company (BDC) such as Ares Capital (ARCC), but focused exclusively on distressed real estate assets and debt.

• Fractional Real Estate Investments: Mackenzie Realty Capital acquires and manages ownership stakes in portions of various real estate properties.
• Opportunistic Real Estate Investments: The company identifies, acquires, and manages non-traditional or time-sensitive real estate assets for income and potential capital appreciation.

Mackenzie Realty Capital (MKZR) is a mortgage Real Estate Investment Trust (REIT) that invests in distressed mortgage loans and real estate assets. While their investment portfolio includes commercial properties and loans, a significant portion of their asset base includes residential mortgage loans and directly owned single-family homes. Given the diversified nature of their investments and the unfeasibility of identifying specific named major corporate customers in the traditional sense for a REIT of this type, Mackenzie Realty Capital primarily serves a broad base of individuals as borrowers and tenants across its residential portfolio.

The up to three categories of customers that Mackenzie Realty Capital serves are:

• Homeowners (Residential Mortgage Borrowers): Individuals who have taken out mortgage loans on residential properties, whether for primary residences or as individual real estate investors, and whose loans are held or serviced by Mackenzie Realty Capital. This category includes borrowers of both performing and distressed residential mortgage loans within MKZR's portfolio.
• Residential Tenants: Individuals who lease single-family homes or other residential units that are directly owned and managed by Mackenzie Realty Capital as part of its real estate portfolio.
• Individual Property Buyers: Individuals who purchase single-family homes or other residential properties from Mackenzie Realty Capital, especially those acquired through foreclosure or as part of their distressed asset acquisition and disposition strategy.

Robert E. Dixon, Chief Executive Officer and President
Mr. Dixon has served as the Chief Executive Officer and President of MacKenzie Realty Capital, Inc. since 2012. He also holds the positions of Managing Director and Chief Investment Officer for MacKenzie and its Adviser, MacKenzie Real Estate Advisers, LP and MCM Advisers, LP, an entity that has specialized in discounted real estate securities for over 30 years. He is an integral part of the company's investment team, overseeing all aspects of the investment process. Mr. Dixon has consistently increased his ownership stake in the company through various stock purchases.

Angche Sherpa, Chief Financial Officer and Treasurer
Mr. Sherpa serves as the Chief Financial Officer and Treasurer of MacKenzie Realty Capital, Inc. (also referred to as Principal Accounting Officer). He is a member of the company's investment team. Mr. Sherpa has also purchased shares of the company's common stock.

Charles Patterson, Chairman, General Counsel and Secretary
Mr. Patterson holds the titles of Chairman, General Counsel, and Secretary for MacKenzie Realty Capital, Inc.. He is also noted as the founder of MacKenzie Realty Capital, which was established on January 25, 2012.

Glen Fuller, Chief Operating Officer
Mr. Fuller is the Chief Operating Officer of MacKenzie Realty Capital, Inc.. He is also a member of the company's investment team.

Jeri Bluth, Chief Compliance Officer
Ms. Bluth serves as the Chief Compliance Officer for MacKenzie Realty Capital, Inc..

The key risks to Mackenzie Realty Capital (MKZR) primarily revolve around its financial health, the illiquid nature of its investments, and the broader real estate market conditions.

1. High Leverage and Financial Instability: Mackenzie Realty Capital exhibits significant financial challenges, including a high debt-to-equity ratio of 2.26, negative net profit and EBIT margins, and a negative return on equity. The company has struggled with profitability, as evidenced by ongoing losses, negative operating cash flows, and a Q3 2025 net loss of $6.1 million. This high leverage and the inability to generate sufficient cash from core operations pose risks to the company's financial stability and its capacity to invest in growth or manage economic downturns. Furthermore, the company suspended its common stock dividend in May 2025 to preserve cash and maintain financial flexibility.
2. Illiquidity of Investments and Valuation Discrepancies: A core aspect of Mackenzie Realty Capital's strategy involves investing in illiquid real estate securities and private placements, which inherently carry a high degree of business and financial risk. These illiquid investments, particularly "level three" categories, are difficult to value accurately due to the lack of quoted prices, relying instead on management's estimations. This illiquidity has led to significant discrepancies between the company's reported Net Asset Value (NAV) and the price at which its shares trade in the secondary market. As of December 31, 2022, the NAV was $7.38 per share, a 26% decrease from the initial offering price of $10, with shares recently selling for $5.65. In 2024, the reported NAV was $7.75 per share, while secondary market shares traded under $6.00. The suspension of share repurchase and dividend reinvestment programs also reflects challenges related to liquidity and investor access to funds.
3. Real Estate Market Headwinds: As a real estate investment trust (REIT), Mackenzie Realty Capital is significantly exposed to the volatility and challenges within the commercial and residential real estate sectors. The broader real estate market, especially the office sector, faces macroeconomic headwinds. Key sensitivities include inflation, which can impact property values and operational costs, and fluctuating interest rates, which significantly influence REIT valuations and the cost of the company's high debt obligations.

1. Impact of Remote and Hybrid Work Models on Commercial Office Real Estate

The widespread and sustained adoption of remote and hybrid work arrangements has fundamentally altered the demand for traditional commercial office space. This ongoing shift is leading to increased office vacancies, downward pressure on rental rates, and declining valuations for office properties in many markets. For Mackenzie Realty Capital, which acquires, manages, and sells commercial real estate, significant exposure to the office sector could result in impaired asset values, reduced rental income, and challenges in identifying profitable new opportunistic investments within this segment. This threat is analogous to the paradigm shift that impacted industries like Blockbuster (physical media rental) or Research in Motion (smartphone usage patterns), where a fundamental change in how a product or service is consumed or utilized directly erodes the core business.

2. Emergence of Fractional Real Estate Ownership and Tokenization Platforms

New technological platforms, often leveraging blockchain technology, are facilitating fractional ownership of real estate assets. These platforms allow individual investors to purchase small, often tokenized, shares of properties, potentially offering greater liquidity, lower entry barriers, and more transparent pricing compared to traditional real estate investment vehicles. As a non-traded REIT, Mackenzie Realty Capital typically targets individual investors and is characterized by limited liquidity for its shares. The rise of these alternative investment platforms could attract potential investors away from traditional non-traded REITs, making MKZR's offerings less competitive due to perceived higher fees, less transparency, or lack of liquidity. This parallels the disruption seen with Netflix versus Blockbuster or Uber versus traditional taxis, where a new model provides a more accessible, efficient, or desirable way for consumers to access a market or service.

Mackenzie Realty Capital (MKZR) operates primarily as a Real Estate Investment Trust (REIT) with a focus on real property investments and real estate credit investments in the United States.

Addressable Markets:

• U.S. Commercial Real Estate Market: The U.S. commercial real estate market was valued at approximately $22.5 trillion as of the fourth quarter of 2023.
• U.S. Commercial Real Estate Debt Market: The total commercial real estate debt outstanding in the U.S. was $5.9 trillion as of the fourth quarter of 2023.
• U.S. Listed REITs (Equity Market Capitalization): U.S. listed REITs have an equity market capitalization of more than $1.4 trillion.
• U.S. Mortgage REIT Industry (Equity Market Capitalization): The REIT - Mortgage industry in the U.S. has a combined market capitalization of $76.04 billion.
• Preferred Equity in Real Estate: null

Mackenzie Realty Capital (MKZR) is expected to drive future revenue growth over the next 2-3 years through several key strategies centered around its real estate investment trust (REIT) operations.

1. Expansion through the Development of New Multi-Family Residential Communities: The company is actively engaged in the construction and development of new residential properties. For example, the Aurora at Green Valley in Fairfield, California, a 72-unit multi-family residential community, is progressing on schedule and is anticipated to enhance the company's residential portfolio. Additionally, MacKenzie Realty Capital is preparing to launch the Blue Ridge project, which will consist of 84 luxury multi-family units. The completion and subsequent leasing of these developments are expected to significantly contribute to future rental and reimbursement revenues. The Aurora at Green Valley development was reported as 31% leased as of September 30, 2025.
2. Strategic Acquisitions of Real Estate Assets, Including Distressed Properties and New Office Buildings: Mackenzie Realty Capital employs an investment strategy focused on acquiring real estate assets at a discount to their net asset value, with an emphasis on value-add and opportunistic investments. This includes expanding its investment strategy to incorporate distressed real properties, aiming to extract unrealized value. Recent financial reports have indicated that increases in rental and reimbursement revenues have been attributed to the acquisition of new office buildings, signaling a continued focus on expanding its commercial real estate portfolio through strategic purchases.
3. Generating Rental Income from an Expanding Portfolio of Commercial and Residential Properties: As a REIT, MacKenzie Realty Capital's primary source of revenue is rental income from its diverse portfolio of properties. The company owns and manages commercial real estate properties and residential apartment buildings. With the ongoing completion of new multi-family developments and strategic acquisitions of additional commercial properties, the rental income generated from an enlarged and optimized portfolio is a fundamental driver of sustained revenue growth.

Share Repurchases

No specific dollar amount of share repurchases made or authorized to be made in the future by Mackenzie Realty Capital (MKZR) was readily available in the provided information for the last 3-5 years. A "Buyback Yield" of -10.21% was noted, which can indicate repurchases but does not provide a dollar value or authorization.

Share Issuance

• Shareholders of Mackenzie Realty Capital were substantially diluted in the past year.
• The company announced a 1-for-10 reverse stock split, which became effective around August 2025, reducing the number of outstanding shares.

Inbound Investments

• MacKenzie Realty Capital's adviser, CEO, and affiliates acquired $1,541,889.00 in company stock around August 2025, leading to an ownership of over 6% of the outstanding shares.

Outbound Investments

• Mackenzie Realty Capital, a West Coast-focused REIT, aims to invest at least 80% of its total assets in real property and up to 20% in illiquid real estate securities.
• The company made significant acquisitions of real estate assets, with reported amounts (in millions USD) of -$18.9 in FY2025, -$10.24 in FY2024, -$18.7 in FY2023, -$63.24 in FY2022, and -$28.62 in FY2021.
• The current portfolio includes interests in 4 multifamily properties and 8 office properties, alongside 2 multifamily developments.

Capital Expenditures

• For Mackenzie Realty Capital, a REIT, the primary capital expenditures are reflected in its acquisition of real estate assets. The company acquired real estate assets amounting to -$18.9 million in FY2025, -$10.24 million in FY2024, -$18.7 million in FY2023, -$63.24 million in FY2022, and -$28.62 million in FY2021.
• These capital expenditures are focused on expanding its portfolio of real property, which includes multifamily and boutique class A office properties.
• The company also reported the completion of development projects around FY2025, indicating capital allocated towards new real estate developments.