Key Financial Highlights:Operating Results for the Quarter Ended September 30, 2025:
Net revenues for quarter ended September 30, 2025, were $4.54 million, a decrease of 8.3% from $4.95 million in the same period of 2024.
Net operating loss was $3.49 million, as compared to a net operating loss of $7.4 million in the same period of 2024, a decrease of 53%.
Net loss was $3.05 million, compared to a $7.41 million loss in the same period of 2024.
The Company had negative $1.93 million of funds from operations ("FFO") for the quarter compared to negative $0.58 million in the same period of 2024. The net loss of $3.05 million was adjusted for $2.2 million in depreciation expense and $1.08 million of unrealized gain from investments. Further, adding back straight line rent adjustments, amortization of below market lease rent, amortization of loan fees, and unusual or one-time transactions such as marketing share issuances related to our listing, the adjusted FFO ("AFFO") would be negative $1.72 million for the quarter compared to negative $0.47 million for the same period in 2024.
Construction at Aurora at Green Valley is now complete. The clubhouse and the three residential buildings have been completed with certificates of occupancy issued, and leasing activity has been robust, with the buildings now over 50% leased.
Robert Dixon, CEO and President of MacKenzie Realty Capital, stated, "The quarterly results were in line with our internal expectations, and we are pleased with the trajectory toward FFO profitability next year. While compared to the same period last year, the results do not show improvement, there is improvement compared to the last quarter, supporting our contention that we are on the right track. We remain focused on successfully executing our growth initiatives while maintaining financial discipline which we believe will deliver sustained value creation over the long term."
Non-GAAP Financial Measures
Reconciliations, definitions and important discussions regarding the usefulness and limitations of the Non-GAAP Financial Measures used in this release can be found below.
About MacKenzie Realty Capital, Inc. MacKenzie, founded in 2013, is a West Coast-focused REIT that intends to invest at least 80% of its total assets in real property, and up to a maximum of 20% of its total assets in illiquid real estate securities. We intend for the real property portfolio to be approximately 50% multifamily and 50% boutique class A office. The current portfolio includes interests in 5 multifamily properties and 8 office properties plus 1 multifamily development.
For more information, please contact MacKenzie at (800) 854-8357. Please visit our website at: http://www.mackenzierealty.com
Forward-Looking StatementsThis press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, our ability to remain financially healthy, and our expected future growth prospects. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target," "trajectory," "focus," "work to," "attempt," "pursue," or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. For a further discussion of factors that could cause our future results, performance, or transactions to differ significantly from those expressed in any forward-looking statement, please see the section titled "Risk Factors" in annual reports on Form 10-K and quarterly reports on Form 10-Q that we file with the Securities and Exchange Commission from time to time.
89 Davis Road, Suite 100 • Orinda, California 94563 • Toll-Free (800) 854-8357 • Local (925) 631-9100 • www.mackenzierealty.com
Funds from Operations ("FFO"), The Company believes that funds from operations ("FFO"), as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts ("NAREIT"), and adjusted funds from operations ("AFFO") are important non-GAAP supplemental measures of our ...
