MacKenzie Suspends Nontraded Preferred Repurchases Amid Strategic Review
MacKenzie Realty Capital Inc. (Nasdaq: MKZR) has temporarily suspended the share repurchase program for its nontraded preferred stock while it reviews potential strategic transactions, including reverse takeovers, the California-based real estate investment trust said Sept. 30.
MacKenzie sells its Series A, Series B, and Series C preferred stock through a Regulation A offering, with Arete Wealth Management LLC serving as dealer manager and selling through other broker-dealers and to investors in advisory accounts. Unlike the company’s common stock, the preferred shares are not listed on an exchange, and MacKenzie has said it does not intend to list them, leaving the repurchase program as the primary liquidity option for holders.
The company settles repurchases under the program by issuing common stock instead of cash. According to MacKenzie, the board concluded that those issuances “resulted in additional selling pressure” on MacKenzie’s Nasdaq-listed common stock that “would make the negotiation of any potential strategic transaction more difficult.”
MacKenzie said it continues to review strategic alternatives brought to it by its financial adviser, Maxim Group LLC, and that the board expects to reassess the repurchase program “in due course.”
During the fiscal year ended June 30, MacKenzie repurchased 92,836 shares of its Series A preferred stock at average prices ranging from $22.80 to $24.89 per share, along with 6,067 shares of Series B preferred stock, all settled in common stock. As of Sept. 28, the company had 2,774,688 common shares outstanding, along with 754,060 Series A, 125,876 Series B, and 60,559 Series C preferred shares.
Maxim has worked with MacKenzie since August 2024, when the firm was engaged to advise on strategic planning, a potential uplisting, and other measures to enhance shareholder value, according to MacKenzie. MacKenzie’s common stock began trading on the Nasdaq Capital Market in November 2024, and the company effected a 1-for-10 reverse stock split in August 2025. Maxim is also the sales agent for the company’s at-the-market common stock offering program. The aggregate market value of MacKenzie’s common stock held by non-affiliates was about $7.2 million as of Dec. 31, 2025.
The suspension comes as MacKenzie reported a narrower loss for fiscal 2026. The net loss narrowed 41% to $14.13 million from $23.97 million.
MacKenzie suspended its common stock dividend in May 2025, saying it needed to preserve liquidity, and that suspension remains in effect. The company has continued to declare dividends on its preferred shares, including a 6% annualized Series A dividend for the quarter ended Sept. 30.
MacKenzie, founded in 2013, invests primarily in West Coast multifamily and what it describes as boutique Class A office properties and has long purchased shares of nontraded REITs through tender offers. Its portfolio includes interests in eight office properties, along with five multifamily properties and one multifamily development held through its wholly owned subsidiary, MacKenzie Apartment Communities Inc. The company reported total assets of $235.3 million as of June 30.
MacKenzie is externally managed by MacKenzie Capital Management LP.
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