MacKenzie Realty Narrows Quarterly Loss

Despite lower revenue year over year, the REIT halved its net operating loss and surpassed 50% leasing at its latest multifamily project.

November 19, 2025

Financial Performance Signals Shift

MacKenzie Realty Capital is pushing forward. In its latest results for the first quarter of fiscal 2026, the REIT posted a net operating loss of $3.49 million—cut by more than half from the $7.4 million loss recorded in the same quarter last year. Revenues came in at $4.54 million, slightly below the prior year, but the improvement in the bottom line signals that the company’s operational reset is gaining traction.

The company also reported a net loss of $3.05 million. On a funds from operations (FFO) basis, losses widened to $1.93 million from $0.58 million, but that number doesn’t tell the full story. After adjusting for depreciation, unrealized gains, and other one-time or non-cash items, the adjusted FFO (AFFO) landed at negative $1.72 million—still a setback, but one that follows a clear path toward stabilization.

Aurora at Green Valley Hits Major Milestone

Meanwhile, the company hit a major milestone at its Aurora at Green Valley development. Construction is done, certificates of occupancy are in hand, and more than half of the units are already leased. Momentum on the leasing side is strong, and the project is now generating real activity that feeds into the company’s operating base.

Strategic Outlook Remains Focused

Leadership noted that while year-over-year comparisons still show losses, the quarter-over-quarter trends are moving in the right direction. The company expects to return to FFO profitability in 2026 and continues to execute on growth plans while keeping a close eye on financial discipline.

MacKenzie’s portfolio remains West Coast-focused, targeting a balanced mix of multifamily and boutique office properties. The REIT currently holds interests in five multifamily assets, eight office buildings, and one new multifamily development—Aurora.

Performance Metrics That Go Beyond GAAP

The company also emphasized how it evaluates performance. While GAAP figures are important, metrics like FFO and AFFO provide a clearer lens into operating trends. These adjustments help investors understand what’s recurring, what’s temporary, and how the business is really moving.

MacKenzie’s first quarter tells a story of transition—less about where it’s been, more about where it’s headed. With Aurora leasing up and operating losses narrowing, the company is positioning itself for a stronger financial profile in the quarters ahead.