MacKenzie Realty Capital Offers to Repurchase Shares at $9.00
February 18, 2019 | James Sprow | Blue Vault
MacKenzie Realty Capital Inc. is offering to buy back 411,893.49 of its common shares at $9 apiece. In its Q4 2018 financial statement, it reported a net asset value per share of $9.79 as of December 31, 2018, down from the net asset value per share of $10.07 as of June 30, 2018.
MacKenzie Realty Capital, Inc. is a non-diversified, closed-end investment company that has elected to be regulated as a business development company (“BDC”). It commenced its IPO in January 2014 of 5,000,000 shares, concluding the offering in October 2016. It commenced a subsequent public offering of 15,000,000 shares that was declared effective in December 2016. As of December 31, 2018, the Company has raised approximately $95.0 million from the public offerings, including proceeds from the Company’s dividend reinvestment plan (“DRIP”) of approximately $6.6 million. Of the shares issued by the Company in exchange for the total capital raised as of December 31, 2018, approximately $4.4 million worth of shares have been repurchased under the Company’s share repurchase program.
As of December 31, 2018, the Company had investments in traded companies totaling $13.94 million in fair value, and shares of nontraded companies totaling $34.52 million in fair value. It had 22 LP interests with a total fair value of $47.22 million.
In terms of fair value, the Company’s investment in shares of KBS REIT II, a nontraded REIT, made up over 9.1% of its total $95.7 million investment portfolio fair value. The fair value per share of its investment in KBS REIT II was $4.04. It also had 3.9% of its total portfolio fair value invested in Phillips Edison & Company at an average fair value per share of $9.16. It also held 20.2 million shares of Highlands REIT with an average fair value of $0.18 per share.
Sources: SEC, Blue Vault
The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.