MacKenzie Realty Capital Halts Preferred Share Repurchases as It Weighs Reverse Takeovers
The REIT says swapping preferred shares for common stock has weighed on its share price and could complicate negotiations on any deal its adviser brings forward.
October 1, 2026
MacKenzie Realty Capital, Inc. has temporarily suspended its Preferred Share Repurchase Program, a move its board says will leave the Nasdaq-listed REIT better positioned to act on any strategic transaction brought to it by its financial advisor, Maxim Group LLC. The company disclosed the suspension on September 30, 2026, alongside results for its fiscal year ended June 30, 2026.
Why the Board Hit Pause
Under the program, MacKenzie has been issuing common stock to preferred holders in exchange for their preferred shares. The board said those issuances have added selling pressure on the common stock, and it believes that pressure would make negotiating a potential strategic transaction more difficult.
MacKenzie said it is exploring strategic transactions such as reverse takeovers and continues to review alternatives presented by Maxim. In December 2025, the company announced a strategic review aimed at narrowing the gap between its share price and the value of its assets. In a reverse takeover, a private company typically combines with a listed company as a route to the public markets. The company cautioned that there is no assurance any transaction will result. It also said it does not plan to provide further updates on the review unless required by law. The board expects to reassess the repurchase program in due course but did not give a timeline.
What It Means for Preferred Holders
For investors in MacKenzie's preferred series, the suspension closes the exchange route into the listed common stock for now. The announcement does not address preferred dividends. In April, the company declared quarterly dividends across its Series A, Series B and Series C preferred shares.
Fiscal 2026 Results
MacKenzie's losses narrowed for the year even as revenue declined:
- Net revenues: $20.01 million, down 9% from $22.06 million in fiscal 2025
- Net operating loss: $15.61 million, a 33% improvement from $23.46 million
- Net loss: $14.13 million, a 41% improvement from $23.97 million
CEO and President Robert Dixon attributed the revenue decline primarily to roughly $3.0 million of lease termination income recognized in the prior year. He said the annual results were in line with internal expectations. He added that the company remains focused on its growth initiatives while maintaining financial discipline, which he believes will create value over the long term.
About MacKenzie
Founded in 2013, MacKenzie is a West Coast-focused REIT that intends to invest at least 80% of its total assets in real property and up to 20% in illiquid real estate securities. It targets a roughly even split between multifamily and boutique Class A office properties. Its current portfolio includes interests in five multifamily properties, eight office properties and one multifamily development.
