Mackenzie Realty Capital Inc's Business Segments

MacKenzie Realty Capital, Inc., incorporated in Maryland in 2012, is a real estate investment trust (REIT) focused on investing primarily in real estate assets. The company operates through its subsidiaries and is externally managed by MacKenzie Capital Management, LP, with advisory services provided by affiliates MCM Advisers, LP and MacKenzie Real Estate Advisers, LP. Its investment strategy primarily targets real estate assets and, to a lesser extent, illiquid or non-traded debt and equity securities issued by U.S. companies owning commercial real estate, including non-traded REITs, small-cap publicly traded REITs, and real estate partnerships and LLCs. MacKenzie Realty Capital owns and operates real estate assets through its operating partnership, MacKenzie Realty Operating Partnership, LP, and holds interests in joint ventures such as Madison-PVT Partners LLC and PVT-Madison Partners LLC, which own residential apartment buildings in Oakland, California. The company has issued common and preferred stock, with various offerings and amendments filed with the SEC. Its common stock trades on the Nasdaq Capital Market under the ticker symbol MKZR. MacKenzie Realty Capital also manages preferred stock offerings through Regulation A and shelf registration statements to raise capital for its operations and investments.

The registrant operates through two primary reportable segments: commercial and residential. These segments encompass activities related to acquiring, owning, developing, and managing income-producing real estate properties. Internal management and reporting are structured around these segments. The investment committee, led by the Chief Executive Officer and serving as the Chief Operating Decision Maker (CODM), evaluates segment performance and allocates resources primarily based on the company's net income or loss. Effective January 1, 2026, following a portfolio reorganization and the formation of MAC, the CODM began separately evaluating the commercial and residential real estate portfolios, resulting in the current two-segment reporting structure. Revenue for both segments is primarily derived from rental and other property income, while segment net loss includes direct segment costs. Certain expenses not directly attributable to the segments—such as asset management fees to related parties, administrative cost reimbursements to related parties, directors’ fees, and transfer agent cost reimbursements to related parties—are recorded in a corporate/other category. The CODM also reviews consolidated asset information and capital expenditures. The registrant’s operations and customers are exclusively within the United States, with no property or equipment located outside the country. Additionally, the registrant maintains a real estate-related debt and equity securities investment portfolio, which is not considered a reportable segment under ASC 280.