Executive Summary
MacKenzie Realty Capital Inc (MKZR) reported QQ1 2024 results showing meaningful top-line progress but substantial profitability headwinds. Revenue rose year-over-year by approximately 39% to $4.95 million, supported by a higher asset base and recurring revenue streams, yet the quarter delivered a net loss of $7.81 million, underscored by an EBITDA shortfall of $3.24 million and a sizable other expense line of $8.58 million. The operating loss of $7.44 million and negative operating margin of roughly -1.50% reflect a cost structure heavily influenced by financing costs and non-cash/depreciation charges, rather than a conventional property-level impairment alone. The company still generated positive operating cash flow of about $0.52 million, but investing and financing activities led to a net cash decline of ~$3.46 million in the quarter, leaving cash and cash equivalents plus short-term investments at roughly $34.2 million as of 2024-09-30.
Key Performance Indicators
QoQ: -183.47% | YoY:-229.74%
QoQ: -171.05% | YoY:-80.42%
QoQ: -181.11% | YoY:-74.29%
Key Insights
Revenue: $4.95M; YoY +39.11%, QoQ +9.57%. Gross Profit: $2.23M; YoY +60.98%, QoQ +19.54%. Operating Income: -$7.44M; YoY -229.74%, QoQ -183.47%. Net Income: -$7.81M; YoY -80.42%, QoQ -171.05%. EPS: -$0.61; YoY -74.29%, QoQ -181.11%. EBITDA: -$3.24M; EBITDARatio: -0.653x. Liquidity: Current ratio 4.91, Quick ratio 4.91, Cash ratio 1.49. Leverage: Long-term debt $97.70M; Total debt $97.70M; Debt to capitalization 0.644; Debt/Equity 1.81. Profitability: Net margin -1.58%, Gross margin 45.0%, Operat...
Financial Highlights
Revenue: $4.95M; YoY +39.11%, QoQ +9.57%. Gross Profit: $2.23M; YoY +60.98%, QoQ +19.54%. Operating Income: -$7.44M; YoY -229.74%, QoQ -183.47%. Net Income: -$7.81M; YoY -80.42%, QoQ -171.05%. EPS: -$0.61; YoY -74.29%, QoQ -181.11%. EBITDA: -$3.24M; EBITDARatio: -0.653x. Liquidity: Current ratio 4.91, Quick ratio 4.91, Cash ratio 1.49. Leverage: Long-term debt $97.70M; Total debt $97.70M; Debt to capitalization 0.644; Debt/Equity 1.81. Profitability: Net margin -1.58%, Gross margin 45.0%, Operating margin -1.50%. Cash Flow: Net cash from operations $0.52M; Free cash flow $0.52M; Net change in cash -$3.46M; Cash at period end $14.68M. Valuation/Market: Price-to-book 0.63x; Price-to-sales 9.35x; Dividend yield 4.12% (dividend payout ratio negative due to net loss).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.95M |
39.11% |
9.57% |
| Gross Profit |
2.23M |
60.98% |
19.54% |
| Operating Income |
-7.44M |
-229.74% |
-183.47% |
| Net Income |
-7.81M |
-80.42% |
-171.05% |
| EPS |
-0.61 |
-74.29% |
-181.11% |
Key Financial Ratios
operatingProfitMargin
-150.3%
operatingCashFlowPerShare
$0.05
freeCashFlowPerShare
$0.05
dividendPayoutRatio
-24.4%
Management Commentary
No earnings call transcript data was provided in the dataset. As a result, there are no management quotes available to extract or group by themes (strategy, operations, market conditions). If transcript text becomes available, a thematic synthesis with context and significance will be included.
Forward Guidance
There is no explicit forward guidance disclosed for the coming quarters in QQ1 2024. Given the current mix of revenue growth with material financing costs and substantial non-cash expenses, management commentary (if provided in subsequent filings or calls) would be critical to assess near-term refinancings, occupancy trends, and asset-level performance. Our view: guidance, if issued, is likely to hinge on stabilizing occupancy, refinancing terms, and cost containment; absent clear targets, investors should monitor occupancy, debt maturities, interest rates, and potential asset sales or impairment considerations.