8-K: MacKenzie Realty Capital Announces Quarterly Dividends and Progress Towards NYSE-American Listing

MacKenzie Realty Capital has declared regular quarterly dividends for common and preferred shareholders and is continuing its pursuit of a NYSE-American listing.

Summary

• MacKenzie Realty Capital, Inc. has announced its regular quarterly dividend for the period ended June 30, 2024, at $0.125 per common share.
• The company will pay the common dividend on or about July 26, 2024.
• Dividends for Series A and Series B preferred shares for the quarter ending September 30, 2024, have also been declared.
• Series A preferred shareholders will receive $0.375 per share, and Series B preferred shareholders will receive $0.75 per share for the quarter ending September 30, 2024.
• The company is still pursuing a listing on the NYSE-American once a trading history and public float is demonstrated.
• MacKenzie has transitioned to a new transfer agent, Securities Transfer Corporation (STC).
• The company has broken ground on a new development called Aurora at Green Valley and is raising funds through a private placement with a 14% preferred return.

Sentiment

Score: 7

Explanation: The sentiment is positive due to the declaration of regular dividends and the pursuit of a NYSE-American listing. However, the lack of guarantees and the volatility of the OTCQX trading temper the overall optimism.

Positives

• The company is paying regular quarterly dividends to both common and preferred shareholders.
• The company is actively pursuing a listing on the NYSE-American, which could increase visibility and liquidity.
• MacKenzie has commenced a new development project, Aurora at Green Valley, indicating growth and investment.
• The company is offering a 14% preferred return for the private placement related to the Aurora at Green Valley development.

Negatives

• The company's stock trading on the OTCQX has been sporadic and volatile with low trading volume.
• There is no guarantee that the company will be listed on the NYSE-American.
• The company cannot provide guidance on the potential share price or timing of the NYSE-American listing.
• The company cannot guarantee that a stock buyback plan will be implemented.

Risks

• The company's forward-looking statements are subject to risks and uncertainties, including economic conditions, market demand, and competitive factors.
• The company's trading volume on the OTCQX is low and volatile, which could impact share price.
• There is no guarantee that the company will be able to achieve a listing on the NYSE-American.
• The company's stock buyback plan is not guaranteed and may not be implemented.

Future Outlook

The company intends to continue paying regular dividends and is actively pursuing a listing on the NYSE-American. They are also focused on new development projects and raising capital through private placements.

Management Comments

• We are excited about the interest we have received in MRC from investors and the investment opportunities we have encountered.
• We believe your confidence in us will be rewarded.

Industry Context

This announcement reflects a company in the real estate investment sector focused on generating income for investors through dividends and pursuing growth through new developments and a potential exchange listing. The company's focus on preferred returns and private placements is common in the real estate development industry.

Comparison to Industry Standards

• The dividend yields for MacKenzie's preferred shares are relatively high compared to typical REITs, which often offer yields in the 3-6% range for common stock and slightly higher for preferred stock.
• The 14% preferred return for the Aurora at Green Valley private placement is significantly higher than typical returns for publicly traded real estate investments, reflecting the higher risk associated with private placements and development projects.
• Companies like American Tower (AMT) and Crown Castle (CCI) are examples of publicly traded REITs with established trading histories and lower dividend yields, while private real estate funds often offer higher returns but with less liquidity and transparency.
• The pursuit of a NYSE-American listing is a common goal for companies seeking to increase their visibility and access to capital, similar to other companies that have transitioned from the OTC market to a major exchange.

Stakeholder Impact

• Shareholders will receive regular dividend payments.
• Shareholders may benefit from a potential NYSE-American listing.
• Investors in the private placement will receive a 14% preferred return.
• The company's employees may benefit from the company's growth and development.

Next Steps

• The company will continue to pursue a listing on the NYSE-American.
• The company will continue to pay monthly dividends to Series A and B preferred shareholders.
• The company will continue to develop the Aurora at Green Valley project.
• The company will file its Annual Report on Form 10-K in late September.

Key Dates

Keywords

dividends, preferred stock, common stock, NYSE-American, listing, stock buyback, real estate development, private placement, OTCQX, Securities Transfer Corporation