MacKenzie Realty Capital Preferred Stock Losses & Investor Claims
MacKenzie Realty Capital has reportedly suspended the share repurchase program for its nontraded preferred stock, according to SEC filings. The White Law Group is investigating potential claims on behalf of investors who bought MacKenzie Realty Capital preferred shares through a financial advisor. Here’s what changed and what your options may be. If you suffered losses, our FINRA arbitration attorneys offer a free consultation.
MacKenzie Realty Capital Suspends Preferred Stock Repurchases
On September 30, 2026, MacKenzie Realty Capital said it has temporarily suspended repurchases of its Series A, Series B, and Series C preferred stock. The company said it is reviewing potential strategic transactions, including reverse takeovers. Its financial adviser, Maxim Group LLC, brought those options to the board. The company said the board expects to reassess the repurchase program “in due course.”
Why This Matters for MacKenzie Realty Capital Preferred Stockholders
MacKenzie’s preferred shares do not trade on any exchange. The company has said it does not plan to list them. That left the repurchase program as the main way for preferred holders to sell. With it suspended, many investors may have no clear way to get their money out.
Why MacKenzie Stopped the Repurchases
MacKenzie paid for repurchased preferred shares with new common stock, not cash. The board concluded that issuing that common stock added selling pressure on the company’s Nasdaq-listed shares. According to the company, that pressure would make it harder to negotiate a strategic transaction.
In the fiscal year ended June 30, 2026, MacKenzie repurchased 92,836 Series A preferred shares at average prices of $22.80 to $24.89 per share. It also repurchased 6,067 Series B preferred shares. All of these were settled in common stock.
How MacKenzie Sold Its Preferred Stock
MacKenzie sells its preferred stock through a Regulation A offering. Regulation A lets a company raise money with lighter SEC disclosure requirements than a full registered offering. Arete Wealth Management LLC serves as dealer manager. It sells the shares through other broker-dealers and to investors in advisory accounts.
MacKenzie Realty Capital’s Financial Picture
MacKenzie reported a net loss of $14.13 million for fiscal 2026, down 41% from a $23.97 million loss the year before. The company reported total assets of $235.3 million as of June 30, 2026. MacKenzie suspended its common stock dividend in May 2025 to preserve liquidity, and that suspension remains in effect. The company is still paying preferred dividends, including a 6% annualized Series A dividend for the quarter ended September 30, 2026.
As of September 28, 2026, MacKenzie had 2,774,688 common shares outstanding. It also had 754,060 Series A, 125,876 Series B, and 60,559 Series C preferred shares outstanding. The market value of common stock held by non-affiliates was about $7.2 million as of December 31, 2025.
Nasdaq Listing and Reverse Stock Split
MacKenzie hired Maxim Group in August 2024 to advise on strategic planning and a possible uplisting. The company’s common stock began trading on the Nasdaq Capital Market in November 2024. After receiving a Nasdaq deficiency notice for its low share price, MacKenzie announced a 1-for-10 reverse stock split in July 2025 and completed it in August 2025. Maxim also serves as sales agent for the company’s at-the-market common stock offering.
Background on MacKenzie Realty Capital
MacKenzie Realty Capital is a California-based real estate investment trust founded in 2013. It invests mainly in West Coast multifamily housing and what it calls boutique Class A office properties. Its portfolio includes eight office properties, five multifamily properties, and one multifamily development held through its subsidiary, MacKenzie Apartment Communities Inc. The company has also long bought shares of other nontraded REITs through tender offers.
MacKenzie has a history of liquidity limits. It suspended an earlier repurchase program in May 2020, citing market disruption from the Covid-19 pandemic. In November 2020, shareholders voted to end its status as a business development company so it could focus on real estate.
MacKenzie Realty Capital Investor Claims
Nontraded preferred stock is often illiquid, high-risk, and sold with high commissions. Those commissions can give advisors a reason to recommend these products to investors they don’t fit. The White Law Group is investigating whether broker-dealers properly recommended MacKenzie Realty Capital preferred stock to their clients.
Class Action vs. Individual FINRA Arbitration
For investors with losses over $100,000, an individual FINRA arbitration claim is often the better option. Class actions tend to suit large groups of investors with small losses. Individual recoveries in a class action are often much smaller.
Contact The White Law Group
If you are concerned about your investment in MacKenzie Realty Capital, call (888) 637-5510 for a free consultation, or contact us online. Learn more about how our FINRA arbitration attorneys help investors recover losses.
The White Law Group is a national securities fraud law firm with offices in Chicago and Seattle. The firm represents investors in FINRA arbitration claims throughout the country.
Frequently Asked Questions
1. How do I file a claim to recover money invested in MacKenzie Realty Capital?
Most investors pursue these claims through FINRA arbitration rather than court. Most brokerage account agreements typically include a pre-dispute arbitration clause, which many retail investors don’t know exists. Arbitration can still result in a monetary recovery from the brokerage firm.
2. What is an unsuitable recommendation, and why does it matter for MacKenzie preferred stock?
An advisor must have a reasonable basis to believe an investment fits your age, income, net worth, risk tolerance, and goals. Illiquid products like nontraded preferred stock may not fit investors who need access to their money. If an advisor recommended it anyway, you may have a claim.
3. Can the brokerage firm be held responsible for my losses?
Yes, in some cases. Brokerage firms must research the products they sell and supervise their advisors. A firm that skipped those steps may be liable for your losses.
