MacKenzie Realty Capital Reports FY2026 Loss, Debt Covenant Breach, and $18M Credit Line Expansion
MKZR sits 65% above its 52-week low of $0.83 on light trading volume (0.1× avg).
Summary
MacKenzie Realty Capital's FY2026 10-K discloses a $14.1M net loss, a debt covenant violation on its Satellite Place mortgage, and a subsequent $8M expansion of its PRES credit line to $18M. The board has temporarily suspended the Preferred Share Repurchase Program while exploring strategic transactions such as reverse takeovers.
Updated with a GlobeNewswire report · What changed
Updates
· GlobeNewswire — Board temporarily suspended the Preferred Share Repurchase Program while exploring strategic transactions such as reverse takeovers.
· SEC 8-K — Net revenues were $20.01M, net operating loss $15.61M, and net loss $14.13M for FY2026.
Key Events · Earnings and Guidance · MKZR
-
New · · GlobeNewswire
Preferred Share Repurchase Program Temporarily Suspended
The board temporarily suspended the Preferred Share Repurchase Program while exploring strategic transactions such as reverse takeovers.
-
FY2026 Net Loss of $14.1M
Net loss attributable to common stockholders was $19.1M, or $9.54 per share, on total revenue of $20.0M. AFFO loss widened to $3.47M from $0.57M in FY2025.
-
Debt Covenant Violation on Satellite Place Mortgage
The company was not in compliance with the debt service coverage ratio on its $5.8M MacKenzie Satellite mortgage, causing the balance to be reclassified as due within FY2027.
-
PRES Line of Credit Expanded to $18M
On September 28, 2026, the revolving line of credit with Patterson Real Estate Services LP was increased from $10M to $18M at a 10% fixed rate, maturing December 31, 2027.
-
Additional Streeterville Notes Issued
In August 2026, the company issued Notes #5 and #6 ($547,500 each) and a $1.37M Collateral Note to fund NHP tender offer purchases and a short sale, adding to high-cost secured debt.
Analysis · MKZR · Real Estate & Construction
The annual report reveals a $14.1M net loss and a debt service coverage ratio covenant violation on the MacKenzie Satellite mortgage, forcing a $5.8M loan balance into the current maturity bucket. The company responded by expanding its PRES line of credit from $10M to $18M on September 28, 2026, and issuing additional high-cost Streeterville notes in August 2026. The covenant breach and reliance on expensive, short-duration financing to bridge liquidity are material red flags for a company with only $3.8M in cash and $148.5M in total debt. The board has temporarily suspended the Preferred Share Repurchase Program while exploring strategic transactions such as reverse takeovers.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 36.6% of the 1045 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.62%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, MKZR was trading at $1.37 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $3.1M. The 52-week trading range was $0.83 to $6.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.