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

• Market Cap: $6.92M
• Dividend Yield: 86.42%
• Average Volume (3M): 36.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 29.57
• Revenue Growth: 26.56%
• EPS Growth: -20.97%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -2.97
• Shares Outstanding: 1,966,400
• 10 Day Avg. Volume: 34,796
• 30 Day Avg. Volume: 36,301
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -5.81
• Enterprise Value/Market Cap: 21.71
• Enterprise Value/Revenue: 11.06
• Enterprise Value/Gross Profit: -67.62
• Enterprise Value/Ebitda: 170.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $4.00 ▲(11.11% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily constrained by weak financial performance (sharp revenue decline, deep losses, negative cash flow) and increased leverage. Technicals also remain bearish with the stock trading below key moving averages and negative MACD. Valuation is hard to support on earnings due to losses, and while the very high dividend yield and strategic initiatives provide some support, they are offset by elevated risk and added debt financing.

Positive Factors

Dedicated Apartment Subsidiary

Creating a wholly owned apartment subsidiary concentrates multifamily assets into a standalone vehicle and sets an initial NAV, improving transparency and unlocking structural optionality. It enables clearer asset-level performance measurement, targeted financing, and potential future monetization paths such as refinancing, dispositions or a spin-off.

Adviser Fee Realignment

Amending the advisory fee structure reduces pay-for-transaction costs and ties manager compensation to AFFO, better aligning incentives with shareholders. Eliminating acquisition/financing/disposition fees removes recurring related-party cost leakage and can sustainably improve margins and capital allocation discipline over the medium term.

Capital Raising Flexibility

Having an active ATM program and access to secured notes provides durable financing optionality. Equity and short-term credit channels allow management to fund acquisitions, shore up liquidity, or de-lever without relying solely on operations, reducing immediate refinancing pressure and supporting strategic execution.

Negative Factors

Elevated Leverage

Total debt has risen materially and debt-to-equity approaching ~2.8 signals a weakened capital structure. Higher leverage increases interest and principal service obligations, reduces flexibility for opportunistic investments, raises refinancing and covenant risk, and can force asset sales or dilutive raises under stress.

Persistent Negative Cash Flow

Negative operating and free cash flows indicate the business is burning cash despite some sequential improvement. Continued cash outflows limit ability to internally fund growth or distributions, heighten reliance on external financing, and increase liquidity risk if capital markets tighten or covenants bind over the medium term.

Sharp Revenue Decline & Losses

A nearly 50% revenue decline and deeply negative margins undermine sustainable earnings power and FFO generation. Large net losses reduce retained capital for reinvestment, weaken ability to support dividends from operations, and diminish resilience to cyclical headwinds absent structural revenue recovery or cost transformation.

MacKenzie Realty Capital, Inc. Business Overview & Revenue Model

Company Description

MacKenzie Realty Capital, Inc. (MKZR) is a publicly traded real estate investment trust (REIT) focused on investing in a diversified portfolio of real estate assets, including residential, commercial, and industrial properties. The company aims to generate long-term value for its shareholders through strategic acquisitions, property management, and value-added development projects. MKZR leverages its expertise in real estate markets to identify and capitalize on investment opportunities, delivering attractive returns while maintaining a commitment to sustainable practices.

How the Company Makes Money

MacKenzie Realty Capital generates revenue primarily through rental income from its portfolio of properties, which includes leasing residential units, commercial spaces, and industrial facilities. Additionally, the company may earn income from property management fees and service charges related to the management of its assets. A significant portion of its earnings is derived from capital appreciation of its real estate holdings as the value of properties increases over time. The company may also engage in strategic partnerships with local real estate firms and developers to enhance its investment capabilities and expand its portfolio, contributing further to its revenue streams.

MacKenzie Realty Capital, Inc. Financial Statement Overview

Summary

Overall financial quality is weak: TTM revenue declined sharply (~-46.9% YoY) with deeply negative profitability, operating/free cash flow are negative, and leverage has risen materially (debt-to-equity ~2.80), increasing balance-sheet and liquidity risk.

Income Statement

Profitability has deteriorated materially in TTM (Trailing-Twelve-Months): revenue fell sharply (about -46.9% year over year) and margins are deeply negative (gross, EBITDA, EBIT, and net), resulting in a large net loss. While the business showed stronger revenue growth and occasional positive net income in earlier annual periods (notably 2022), the recent trend points to weakening operating performance and limited earnings stability.

Balance Sheet

The balance sheet shows elevated leverage and worsening capital structure. Total debt rose versus prior annual periods and debt-to-equity increased to ~2.80 in TTM (Trailing-Twelve-Months) (from ~0.71 in 2022 and ~0.96 in 2024), which reduces financial flexibility. Equity remains positive, but returns on equity are negative in recent periods, signaling that the current asset base is not generating adequate shareholder returns.

Cash Flow

Cash generation is currently weak: operating cash flow and free cash flow are negative in TTM (Trailing-Twelve-Months), following negative cash flow in the most recent annual periods as well. Although free cash flow improved versus the prior period (positive growth rate off a low base), the company is still burning cash, which can pressure liquidity—particularly alongside higher leverage.

Breakdown	TTM	Sep 2025	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	13.59M	22.06M	15.11M	10.37M	4.48M	8.73M
Gross Profit	-2.22M	-7.39M	3.07M	1.49M	-1.46M	5.59M
EBITDA	880.02K	5.84M	8.68M	11.18M	1.80M	3.47M
Net Income	-22.38M	-23.97M	-4.10M	4.56M	264.16K	-11.73M
Balance Sheet
Total Assets	238.05M	235.99M	213.16M	182.56M	138.55M	104.17M
Cash, Cash Equivalents and Short-Term Investments	4.34M	3.79M	17.24M	7.40M	4.83M	8.96M
Total Debt	147.58M	137.27M	94.94M	69.43M	39.53M	0.00
Total Liabilities	152.02M	142.45M	102.15M	78.34M	41.19M	941.04K
Stockholders Equity	51.81M	59.86M	98.91M	97.85M	97.11M	103.23M
Cash Flow
Free Cash Flow	-7.80M	-1.69M	-6.62M	4.62M	970.78K	-1.73M
Operating Cash Flow	-7.80M	-1.69M	-6.62M	4.62M	970.78K	-1.73M
Investing Cash Flow	-14.47M	-19.12M	2.36M	-32.16M	-21.22M	0.00
Financing Cash Flow	19.79M	11.85M	451.00K	28.79M	13.85M	9.41M

MacKenzie Realty Capital, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 3.6 is below the 20-day moving average (MA) of 3.84, below the 50-day MA of 4.18, and below the 200-day MA of 5.44, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 8.83 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MDV	63 Neutral	$153.71M	35.61	0.37%	8.15%	-0.59%	-160.22%
MDRR	48 Neutral	$29.49M	-6.48	-18.66%	2.06%	-0.05%	-150.66%
MKZR	46 Neutral	$6.92M	-0.37	-33.51%	86.42%	26.56%	-20.97%
GIPR	40 Underperform	$2.30M	-0.44	-904.27%	―	-4.77%	23.08%
SQFT	40 Underperform	$4.10M	-1.26	-26.78%	―	-2.79%	72.36%

MacKenzie Realty Capital, Inc. Corporate Events

MacKenzie Realty Capital Adds New Secured Promissory Note

On June 11, 2025, MacKenzie Realty Capital, Inc. entered into a Note Purchase Agreement with Streeterville Capital, LLC for up to $3.27 million in secured promissory notes, under which it later issued two material notes to fund purchases of non-traded REIT securities through a tender offer. The company issued a $545,000 secured promissory note on August 1, 2025 (Secured Note #2) and a $1,635,000 secured promissory note on January 15, 2026 (Secured Note #3), both carrying original issue discounts and maturing 18 months after the respective purchase price dates, together representing a significant financing commitment that supports MacKenzie Realty Capital’s strategy of expanding its holdings in non-traded REITs while increasing its debt obligations to Streeterville Capital.

The most recent analyst rating on (MKZR) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on MacKenzie Realty Capital, Inc. stock, see the MKZR Stock Forecast page.

MacKenzie Realty Capital Declares Quarterly Series A Dividends

On January 15, 2026, MacKenzie Realty Capital, Inc. informed its Series A, B and C preferred stockholders that the board had approved regular dividends for the quarter ending March 31, 2026, and detailed the payment of the quarterly Series A preferred share dividend to shareholders of record as of December 31, 2025. Series A investors admitted by October 1, 2025 will receive $0.375 per share (a 6% annualized rate), with proportionally reduced amounts for those admitted on November 1 and December 1, while an additional Series A dividend of $0.125 per month has been approved for holders of record on January 31, February 28 and March 31, 2026, payable in April. The company also released its 2025 per‑share dividend allocation for federal income tax purposes, showing that the $1.50 per share paid over 2025 to Series A holders is treated entirely as a return of capital, information that helps investors and their tax advisers understand the income characterization of these distributions and underscores MRC’s ongoing commitment to providing predictable cash flows to preferred shareholders.

The most recent analyst rating on (MKZR) stock is a Sell with a $4.00 price target. To see the full list of analyst forecasts on MacKenzie Realty Capital, Inc. stock, see the MKZR Stock Forecast page.

MacKenzie Realty Amends ATM Equity Offering Agreement

On January 7, 2026, MacKenzie Realty Capital, Inc. amended its existing at-the-market equity offering arrangement with Maxim Group LLC, under which the company may sell up to $20 million of its common stock from time to time. The amendment sets new termination triggers for the distribution agreement, specifying that it will end upon the earlier of the full issuance and sale of the authorized common shares, a 15-day written notice of termination by either party, or July 15, 2027, with any share sales conducted under the company’s already effective shelf registration statement, providing a structured framework for ongoing capital raising activities.

The most recent analyst rating on (MKZR) stock is a Sell with a $4.50 price target. To see the full list of analyst forecasts on MacKenzie Realty Capital, Inc. stock, see the MKZR Stock Forecast page.

MacKenzie Realty Forms Apartment Subsidiary, Sets Initial NAV

On January 1, 2026, MacKenzie Realty Capital, Inc. contributed all of its multifamily assets and a development project to a new, wholly owned subsidiary, MacKenzie Apartment Communities, Inc., establishing MAC as a stand-alone vehicle focused on developing and owning West Coast multifamily properties while remaining entirely owned by MacKenzie. As of January 8, 2026, MAC’s board set an initial estimated net asset value of $18.10 per share, based on March 31, 2025 appraisals of four stabilized properties and construction cost for the newly built Aurora at Green Valley, with a disclosed valuation range of roughly $16.46 to $19.95 per share, while emphasizing that this NAV is a point-in-time estimate subject to market shifts and may differ from any eventual trading or transaction prices, leaving MacKenzie shareholders with potential optionality over future capital-raising or structural moves involving the new subsidiary.

The most recent analyst rating on (MKZR) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on MacKenzie Realty Capital, Inc. stock, see the MKZR Stock Forecast page.

MacKenzie Realty Capital Revises Advisory Management Fee Structure

On December 29, 2025, MacKenzie Realty Capital, Inc.’s board unanimously approved, effective January 1, 2026, an amendment to its advisory management agreement with MacKenzie Real Estate Advisers, LP that revises the firm’s fee structure. The changes set a base management fee at 1.25% of gross assets under management (excluding depreciation and amortization), replace the subordinated incentive fee with a quarterly bonus management fee equal to 5% of adjusted funds from operations, eliminate the acquisition fee, and establish a rolling five-year term with specified fees for non-renewal or termination without cause; unlike many non-traded and smaller public REIT peers, the company will no longer pay acquisition, debt financing, or disposition fees to its adviser, potentially lowering transaction-related costs and altering incentives for both the adviser and shareholders.

The most recent analyst rating on (MKZR) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on MacKenzie Realty Capital, Inc. stock, see the MKZR Stock Forecast page.

MacKenzie Realty Capital Reviews Multi-Family Portfolio Strategy

On December 12, 2025, MacKenzie Realty Capital announced a strategic review of its multi-family portfolio to enhance shareholder value. The company believes the net asset value of this portfolio significantly exceeds its market capitalization and is exploring options to align its share price more closely with the intrinsic value of its assets.

The most recent analyst rating on (MKZR) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on MacKenzie Realty Capital, Inc. stock, see the MKZR Stock Forecast page.

MacKenzie Realty Capital Reports Q1 2025 Financial Results

On November 18, 2025, MacKenzie Realty Capital reported its financial results for the first quarter ending September 30, 2025. The company experienced a decrease in net revenues by 8.3% compared to the same period in 2024, while its net operating loss and net loss both showed significant reductions. The Aurora at Green Valley project is now over 50% leased, with construction completed, indicating positive leasing activity. Despite the decline in revenue, the company is optimistic about achieving funds from operations profitability in the coming year, with a focus on growth initiatives and financial discipline.

The most recent analyst rating on (MKZR) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on MacKenzie Realty Capital, Inc. stock, see the MKZR Stock Forecast page.