MeritValue

MacKenzie Realty Capital, Inc.

MKZRdata completeness 88%6 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'gainsOnRealEstateSales'

The thesis, from the filings

MacKenzie Realty Capital, Inc. earns about -13% on equity, and has bought back 88% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2020FY 2022FY 2023FY 2024FY 2025
Revenue—$10.4M1$15.1M2$15.7M3$22.1M3
Net income−$11.7M4$4.28M5−$3.69M6−$11.2M7−$24M7
Operating cash flow−$1.73M8$4.62M9−$6.62M10−$595,51711−$1.69M11
Capital expenditure—————
Free cash flow (derived)—————
Total debt—$19.6M12—$117.3M13$135.3M14
Cash & equivalents$8.96M15$7.4M16$17.2M17$11.9M18$3.79M18
Diluted shares12.2M13.3M13.3M1.3M1.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$408.56
your share of equity
Profit it earned you last year
−$163.61
Free cash flow it threw off
—
Debt you’d be carrying
$923.75

10 shares is a claim on $408.56 of net worth that earned you −$163.61 last year, against $923.75 of debt.

iii. Is this a good business?
Moat signal · return on equity
-13% avg · 5y
FY20 —FY22 4%FY23 -4%FY24 -14%FY25 -40%

It earned an average -13% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−88% shares · 5y

Share count is down 88% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 590% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0
DCF · Growth Exit 10Y
not applicable
REIT — real-estate depreciation is an accounting charge on assets that generally appreciate, so it inflates free cash flow and depresses reported earnings and book value at the same time. Every model here reads one of those, and none is a fair base. FFO/AFFO is the applicable measure — see the FFO capitalisation model, which values REITs from it.
DCF · Growth Exit 5Y
not applicable
REIT — real-estate depreciation is an accounting charge on assets that generally appreciate, so it inflates free cash flow and depresses reported earnings and book value at the same time. Every model here reads one of those, and none is a fair base. FFO/AFFO is the applicable measure — see the FFO capitalisation model, which values REITs from it.
Earnings Power Value
not applicable
business development company / RIC — reported earnings are dominated by unrealised marks on private holdings, and a RIC must distribute ~90% of income so it cannot retain earnings to compound. Capitalising them would be meaningless, not merely imprecise. Price/NAV is the applicable lens.
FFO · Capitalized
not applicable
business development company / RIC — reported earnings are dominated by unrealised marks on private holdings, and a RIC must distribute ~90% of income so it cannot retain earnings to compound. Capitalising them would be meaningless, not merely imprecise. Price/NAV is the applicable lens.
Graham Number
not applicable
business development company / RIC — reported earnings are dominated by unrealised marks on private holdings, and a RIC must distribute ~90% of income so it cannot retain earnings to compound. Capitalising them would be meaningless, not merely imprecise. Price/NAV is the applicable lens.

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0001140361-23-045708 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0001140361-24-042226 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0001140361-25-036540 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K/A · period ending 2020-06-30 · accession 0001140361-21-038993 (ProfitLoss)
  5. 10-K · period ending 2022-06-30 · accession 0001140361-23-045708 (ProfitLoss)
  6. 10-K · period ending 2023-06-30 · accession 0001140361-24-042226 (ProfitLoss)
  7. 10-K · period ending 2024-06-30 · accession 0001140361-25-036540 (ProfitLoss)
  8. 10-K/A · period ending 2020-06-30 · accession 0001140361-21-038993 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-06-30 · accession 0001140361-23-045708 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-06-30 · accession 0001140361-24-042226 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-06-30 · accession 0001140361-25-036540 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2022-06-30 · accession 0001140361-22-034979 (LongTermDebt)
  13. 10-K · period ending 2024-06-30 · accession 0001140361-24-042226 (LongTermDebt)
  14. 10-K · period ending 2025-06-30 · accession 0001140361-25-036540 (LongTermDebt)
  15. 10-K/A · period ending 2020-06-30 · accession 0001140361-21-038993 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-06-30 · accession 0001140361-23-045708 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-06-30 · accession 0001140361-24-042226 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-06-30 · accession 0001140361-25-036540 (CashAndCashEquivalentsAtCarryingValue)