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
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