MacKenzie Realty Capital, Inc. 8-K

What Happened

• MacKenzie Realty Capital, Inc. (MKZR) filed an 8-K on Jan 9, 2026 reporting that on Jan 8, 2026 it formed a wholly owned subsidiary, MacKenzie Apartment Communities, Inc. (“MAC”), and contributed all of MKZR’s multifamily properties and a development project to MAC in exchange for 1,852,481 shares of MAC (a 1:1 ratio with MKZR’s outstanding shares).
• The MAC Board approved an estimated net asset value (NAV) of MAC common stock equal to $18.10 per share on a fully diluted basis as of Jan 1, 2026. The board used third‑party appraisals (as of Mar 31, 2025) and internal assumptions to calculate NAV.

Key Details

• Number of MAC shares used in the calculation (fully diluted): 1,852,481.
• Estimated NAV per share (accepted Jan 8, 2026): $18.10.
• Valuation inputs: independent real estate advisory appraisals as of Mar 31, 2025 (primarily income capitalization / DCF and market approaches); MAC used these appraised values without adjustment for year‑end 2025.
• Aurora at Green Valley (newly constructed multifamily property) was valued by MAC at total construction cost: $28.63 million (includes $1.6M land purchase in 2022); the appraisal firm was not involved in this specific valuation.

Why It Matters

• The move separates MKZR’s multifamily assets into a dedicated subsidiary and provides investors with a board‑approved NAV estimate ($18.10/share) that MKZR can reference when communicating portfolio value.
• This NAV is an estimate based on specific appraisal dates and methodologies and is not a market price, guaranteed sale value, or recommendation to buy or sell MKZR or MAC shares. The filing warns the estimate may differ materially from prices on an exchange or proceeds in a sale or liquidation and that values can change over time.