MacKenzie Realty Capital, Inc. (MKZR) AI Stock Analysis

• Market Cap: $18.02M
• Dividend Yield: 52.17%
• Average Volume (3M): 36.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 25.64
• Revenue Growth: 38.79%
• EPS Growth: -167.80%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Diversified
• EPS (TTM): -1.51
• Shares Outstanding: 15,672,603
• 10 Day Avg. Volume: 33,019
• 30 Day Avg. Volume: 36,463
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 10.81
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 32.54
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

MacKenzie Realty Capital, Inc.'s overall score reflects significant financial challenges, highlighted by persistent net losses and high leverage. Technical indicators suggest bearish momentum, while the high dividend yield offers potential appeal but is counterbalanced by sustainability concerns given the current financial state. Recent corporate events show efforts to stabilize the company's financial position, providing a slightly positive outlook amidst the challenges.

MacKenzie Realty Capital, Inc. Business Overview & Revenue Model

Company Description

MacKenzie Realty Capital, Inc. (MKZR) is a real estate investment company primarily focused on providing capital solutions to small and middle-market companies. It engages in the acquisition, ownership, and management of a diversified portfolio of real estate assets, including properties and loans. The company operates within the real estate and financial services sectors, aiming to generate stable returns through its investments.

How the Company Makes Money

MacKenzie Realty Capital, Inc. generates revenue primarily through the acquisition and management of real estate assets and loans. The company earns income from property leases, interest payments on loans, and capital gains from the sale of appreciated assets. Additionally, MKZR may engage in strategic partnerships and joint ventures to enhance its investment portfolio and revenue streams. The company's earnings are significantly influenced by its ability to identify lucrative investment opportunities and effectively manage its real estate holdings.

MacKenzie Realty Capital, Inc. Financial Statement Overview

Summary

MacKenzie Realty Capital, Inc. is facing financial challenges, with significant losses and high leverage. Revenue growth is a positive highlight, but profitability remains a concern, with negative margins and rising debt levels. The cash flow situation shows some improvement with a transition to positive free cash flow, but consistent operational inefficiencies and high leverage suggest increased financial risk.

Income Statement

The income statement reveals a challenging financial performance with consistent net losses over the years. The TTM shows a net loss of $18.8M, indicating a deteriorating net profit margin. Revenue growth, however, was positive at 37.1% from the previous year, but this was not enough to offset the high EBIT losses. The gross profit margin improved in the TTM, but negative EBIT and EBITDA margins highlight significant operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively high debt-to-equity ratio, increasing from 0.71 to 1.90, indicating a rising financial leverage which could pose a risk. Stockholders' equity has decreased significantly over the period examined. The equity ratio has declined, reflecting increased total liabilities relative to assets. Despite this, the company maintains a substantial asset base, although it is heavily leveraged.

Cash Flow

Cash flow analysis reveals volatility with improving free cash flow in the TTM, moving from negative to positive, which is a positive sign. However, the operating cash flow to net income ratio is weak due to persistent net losses, covering only a portion of the operational cash needs. The free cash flow to net income ratio shows that despite net losses, the company managed to generate some positive free cash flow.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2020
Income Statement		Total Revenue
15.74M	15.11M	10.37M	8.73M
	Gross Profit
5.99M	3.07M	1.49M	5.59M
	EBIT
-9.92M	-19.87M	-16.61M	3.47M
	EBITDA
2.05M	8.68M	11.18M	3.47M
	Net Income Common Stockholders
-12.08M	-4.10M	4.56M	-11.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.85M	17.24M	7.40M	8.96M
	Total Assets
233.09M	213.16M	182.56M	104.17M
	Total Debt
118.50M	94.94M	69.43M	0.00
	Net Debt
106.64M	77.70M	62.03M	-8.96M
	Total Liabilities
125.14M	102.15M	78.34M	941.04K
	Stockholders Equity
82.36M	98.91M	97.85M	103.23M
Cash Flow		Free Cash Flow
-595.52K	-6.62M	4.62M	-1.73M
	Operating Cash Flow
-595.52K	-6.62M	4.62M	-1.73M
	Investing Cash Flow
-1.30M	15.31M	-32.16M	0.00
	Financing Cash Flow
-3.17M	451.00K	28.79M	9.41M

MacKenzie Realty Capital, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKZR, the sentiment is Negative. The current price of 2.13 is above the 20-day moving average (MA) of 1.20, above the 50-day MA of 1.47, and below the 200-day MA of 2.60, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 31.44 is Neutral, neither overbought nor oversold. The STOCH value of 9.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKZR.

MacKenzie Realty Capital, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDV	66 Neutral	$147.38M	75.12	1.56%	7.90%	-4.13%	79.39%
Sector *	60 Neutral	$2.81B	11.31	0.21%	8508.38%	6.19%	-15.39%
FVR	53 Neutral	$208.49M	―	-0.37%	1.81%	―	―
MDRR	47 Neutral	$20.80M	489.71	0.20%	2.04%	-3.42%	89.29%
SQFT	47 Neutral	$8.92M	―	-66.17%	4.02%	10.38%	-430.18%
GIPR	42 Neutral	$8.85M	―	-79.15%	29.16%	27.91%	29.34%
MKZR	39 Underperform	$18.02M	―	-23.71%	52.17%	38.79%	-167.80%

MacKenzie Realty Capital, Inc. Corporate Events

MacKenzie Realty Capital Enters Forbearance Agreement with Bank

On March 25, 2025, MacKenzie Realty Capital, Inc. entered into a Forbearance Agreement with First Northern Bank of Dixon to address the maturity default of its Main Street West office building property loan. This agreement includes a forbearance payment and aims to prevent foreclosure, securing the property’s future as the Napa Innovation Center. Additionally, MacKenzie completed a refinancing of its Hollywood property, replacing a high-interest construction loan with a lower-rate CMBS loan, significantly boosting cash flow. These strategic financial moves underscore MacKenzie’s commitment to maintaining and enhancing its property portfolio, benefiting stakeholders by stabilizing and potentially increasing returns.

MacKenzie Realty Capital Announces Quarterly Dividends

On April 12, 2025, MacKenzie Realty Capital, Inc. announced its intention to mail letters to its Series A and B preferred stockholders, followed by letters to common stockholders on April 25, 2025. The company declared a regular quarterly common dividend of $0.05 for the period ending March 31, 2025, to be paid on or about April 25, 2025. Additionally, the company issued a quarterly Series A preferred share dividend, with varying amounts based on the date shareholders were accepted into the fund. These announcements underscore MacKenzie’s ongoing efforts to reward investor confidence and highlight its positive market engagement.

MacKenzie Realty Capital Announces Securities Purchase Agreement

On February 28, 2025, MacKenzie Realty Capital, Inc. announced a securities purchase agreement with an institutional investor, involving a registered direct offering and a concurrent private placement, expected to close on March 3, 2025. The offering, priced at $1.71 per share, is anticipated to generate approximately $4.8 million in gross proceeds, which MacKenzie plans to use for capital expenditures, strategic payments, and general corporate purposes, potentially impacting its financial positioning and growth strategy.