ORINDA, Calif., Nov. 18, 2025 (GLOBE NEWSWIRE) -- MacKenzie Realty Capital, Inc. (Nasdaq: MKZR) (“MacKenzie” or the “Company”) today announced its financial results for the first quarter ended September 30, 2025 and announced its Aurora at Green Valley is now over 50% leased. Key Financial Highlights:Operating Results for the Quarter Ended September 30, 2025: Net revenues for quarter ended September 30, 2025, were $4.54 million, a decrease of 8.3% from $4.95 million in the same period of 2024.Net operating ...

Financial Data and Key Metrics Changes - The company's core FFO was negative $10.5 million for Q3 2025, compared to negative $11.5 million in the prior year, indicating a slight improvement [17] - Overall net operating income (NOI) was $7 million, down from $9.8 million in the previous quarter [6][7] - The company reported a negative FFO of $11.1 million, or negative $14.75 per diluted share, compared to negative $28.4 million in the prior year [17] Business Line Data and Key Metrics Changes - Office segment NOI decreased to $5 million in Q3 2025 from $5.4 million in Q3 2024, primarily due to lower rental revenues and occupancy declines [14][15] - Hotel NOI was $850,000 in Q3 2025, down from $1 million in the prior year, impacted by renovation disruptions [16] - Multifamily segment NOI increased to $792,000 in Q3 2025 from $508,000 in the prior year, driven by lower real estate taxes [16] Market Data and Key Metrics Changes - Multifamily occupancy at 701 South Hudson improved to approximately 81% from 68% at the end of the second quarter [9] - San Francisco experienced a third-quarter rent growth of 5.2%, the strongest year-over-year growth rate since 2015 [11] - The office portfolio was 73.6% leased at the end of Q3 2025, with a notable increase to 86.6% when excluding one Oakland property [12] Company Strategy and Development Direction - The company is focused on strengthening liquidity and balance sheet while growing its multifamily business [4] - A definitive agreement was made to sell the lending business for approximately $44 million, considered a non-core asset [5] - The company aims to benefit from a recovering commercial real estate market, supported by lower interest rates and increased office leasing activity [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving cash flow in 2026, driven by office leasing activity, hotel renovations, and multifamily performance [8] - The company believes headwinds from COVID are largely behind, with return-to-office trends creating positive momentum [12] - Management anticipates meaningful opportunities for multifamily NOI growth through rising rents and improved occupancy [11] Other Important Information - Barry Berlin, the CFO, will step down following the sale of the lending division, with Brandon Hill set to assume the role [8] - The company is nearing completion of an $11 million renovation at the Sheraton Grand Sacramento, funded through various sources [12] Q&A Session Summary - There were no questions during the Q&A session, leading to the conclusion of the conference [21]

Core Insights - FRP Holdings, Inc. reported a net income decrease of 51% for Q3 2025, primarily due to legal expenses related to the acquisition of Altman Logistics, despite higher mining royalties and improved results in joint ventures [5][6][22] - The company aims to focus on long-term earnings and NOI growth by leasing industrial and commercial vacancies and advancing development projects in key markets [4][6] Financial Performance - Net income for Q3 2025 was $662,000, down from $1,361,000 in Q3 2024, with adjusted net income up $281,000 excluding Altman acquisition expenses [7][22] - Pro rata NOI decreased by 16% to $9.5 million compared to $11.3 million in the same quarter last year, primarily due to a one-time $1.9 million catch-up payment received in Q3 2024 [5][8] - Total revenues for Q3 2025 increased by 1.3% to $10.775 million, driven by a 15.3% increase in mining royalty and rents [7][17] Segment Performance - The Multifamily segment's pro rata NOI decreased by 3% to $4.57 million, impacted by higher uncollectable revenue and increased operating costs [9][11] - The Industrial and Commercial segment experienced a 25% decrease in NOI due to tenant eviction and lease expirations, with total revenues down 15.5% [15][22] - The Mining Royalty Lands segment saw a 15.3% increase in revenue to $3.689 million, but net operating income decreased by 26% due to a significant drop in unrealized revenues [17][22] Strategic Developments - The company entered a joint venture with Strategic Real Estate Partners to develop two warehouses in Florida, indicating a strategic move to expand its industrial real estate footprint [5][6] - The acquisition of Altman Logistics is seen as a critical step for scaling operations and entering new growth markets, particularly in Florida and New Jersey [6][22] Nine-Month Highlights - For the first nine months of 2025, net income was $2.95 million, down 40.9% from $4.77 million in the same period last year, largely due to $2 million in acquisition expenses [21][22] - Total revenues for the nine months increased by 2.2% to $31.931 million, with lease revenue slightly declining by 2.1% [21][22]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was flat at $251 million compared to Q3 2024, while FFO decreased to $0.34 per share and AFFO decreased to $52 million due to increased interest expenses outpacing operational contributions [10] - Same-property cash NOI increased by 3.5%, with multifamily showing a strong increase of 6.8% and office increasing by 2.6% [10] Business Line Data and Key Metrics Changes - Office leasing activity included 215 leases covering 840,000 sq ft, with approximately 200,000 sq ft being new leases, reflecting a slowdown in the latter half of the quarter [9] - Same-property cash NOI for the entire portfolio increased by 3.5%, driven by strong performance in the multifamily segment [10] Market Data and Key Metrics Changes - The multifamily segment in the company's portfolio did not experience the slowdown seen in other parts of LA County, with same-store cash NOI increasing almost 7% year-over-year [4] - Office rental rates and concessions remained steady, with the average office leasing cost at $5.63 per sq ft per year, below the average for other office REITs [9] Company Strategy and Development Direction - The company is focusing on expanding its multifamily portfolio, with two development projects in Brentwood and Westwood expected to add over 1,000 premium units [5] - Plans are in place to convert an existing office tower to apartments and build a new residential building, with construction expected to begin in 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the fourth quarter's office leasing, noting that the slowdown in leasing activity was temporary [4] - The company continues to receive significant property tax refunds, which are expected to impact future financial performance, although the timing remains unpredictable [10] Other Important Information - The company refinanced almost $1.2 billion of debt at competitive rates, extending debt maturities and improving financial flexibility [5][6] - Management highlighted the importance of maintaining a strong tenant base and high renewal rates, with tenant retention above the long-term average of 70% [4] Q&A Session Summary Question: What did not materialize in the new leasing plan? - Management noted a general slowdown without being able to pinpoint specific markets or buildings, but indicated that the slowdown appeared temporary and leasing activity had picked up in October [14] Question: Are there considerations for stock buybacks or pruning the portfolio? - Management remains confident in both office and residential portfolios and is focused on growth rather than stock buybacks or asset sales [17] Question: Is the $74 million office expense a good run rate? - Management indicated that the $74 million includes both one-time and ongoing expenses, making it difficult to determine a clear run rate [22][23] Question: What industries are leasing well? - Management identified government as a weak sector, while most other sectors are performing well, with some optimism about UCLA's future leasing potential [26] Question: How will acquisitions be funded given the current stock price? - Management emphasized the use of positive cash flow and financing options, rather than issuing stock, to fund acquisitions [31] Question: What is the timeline for residential development projects? - Management indicated that several sites could be ready for development by the end of 2026, but emphasized the need to complete current projects first [39] Question: What opportunities exist with the upcoming Olympics? - Management noted that local improvements are being made in anticipation of the Olympics, which could enhance the area and benefit the company [58][59] Question: What is the status of leasing activity at Studio Plaza? - Management reported strong leasing activity at Studio Plaza, with various tenants showing interest and some already paying rent [61]

Financial Data and Key Metrics Changes - For Q3 2025, normalized FFO attributable to common shareholders was $29.6 million, or $0.29 per diluted share, slightly above expectations and four-year guidance [22] - FFO attributable to common shareholders was $20.2 million, or $0.20 per diluted share, while AFFO came in at $19 million, or $0.19 per diluted share [22] - Same-store NOI for the portfolio increased 1% on a GAAP basis, with total liquidity for the quarter at $141 million [22][23] Business Line Data and Key Metrics Changes - The retail segment showed quarterly declines in same-store NOI, decreasing 0.9% on a GAAP basis and 2.5% on a cash basis, reflecting temporary downtime from tenant bankruptcies [23] - The office segment maintained exceptional occupancy levels at 96.5%, with strong renewal spreads at 21.6% on a GAAP basis and 8.9% on a cash basis [24] - The multifamily portfolio held occupancy at 94.2%, with effective lease tradeouts averaging 2.3% for the quarter [16][24] Market Data and Key Metrics Changes - Retail fundamentals remain supportive, with vacancy rates close to record lows and new supply constrained [9] - Foot traffic across retail centers rose 13% compared to the prior quarter, indicating strong consumer engagement [10] - National average rents increased only 0.6% year-over-year, while stabilized multifamily properties outperformed this trend with 0.9% year-over-year rent growth [16][17] Company Strategy and Development Direction - The company is focused on simplifying the business and driving operational excellence, with a strategic shift away from reliance on fee income towards higher-quality recurring property-level earnings [6][9] - The strategic foundation is centered on quality, optimizing property-level performance, and delivering reliable results [8] - The company aims to enhance balance sheet quality and proactively manage capital, including capital recycling opportunities [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic actions completed this year and the potential for sustained growth and long-term shareholder value creation [6][8] - The company anticipates initial returns on backfill efforts beginning in Q4 2025, with full economics and over 20% rent growth expected by mid-2027 [24] - Management remains focused on value creation through disciplined execution and intentional capital allocation [20] Other Important Information - The company has aligned its 2025 guidance with a planned reduction in fee income to better highlight the strength of recurring property earnings [6] - The AFFO payout ratio stands at 74.9%, indicating alignment between operating cash flows and the restructured dividend [23] - The company is engaged with lending partners to navigate upcoming debt maturities and maintain financial flexibility [26] Q&A Session Summary Question: Insights on the acquisition of Solis Gainesville and its impact on Everly's occupancy - Management indicated that the acquisition strategy aims to leverage synergies between the two assets, expecting a going-in cap rate at or above the cost of capital [30] Question: Status of the Kennesaw, Georgia loan and its future - Management stated that the Kennesaw asset does not fit the core strategy and is likely to be sold [31] Question: Plans for upcoming redevelopment opportunities - Management noted that while there are attractive projects, none are expected to start in the near term as they focus on captive projects [34] Question: Thoughts on recycling assets and reducing leverage - Management is consistently evaluating asset sales and capital allocation to maximize opportunity costs [36] Question: Discussion on interest rate swaps and their impact on AFFO - Management explained that they are transitioning to long-term fixed-rate debt to reduce reliance on derivatives [38] Question: Future dividend growth expectations - Management indicated that dividend growth will be approached conservatively, with increases tied to responsible cash flow management [43] Question: Plans for the $95 million term loan due next May - Management is exploring various options for refinancing or repaying the loan, including engaging with lending partners [45] Question: Status of Allied Harbor Point's stabilization - Management confirmed that Allied Harbor Point is materially close to stabilization, with careful management to avoid market cannibalization [47]

Financial Performance - Core FFO attributable to common shares was $9.1 million, or $0.15 per diluted share for the three months ended September 30, 2025[14] - Annualized NOI decreased 3.8% quarter over quarter, totaling $232.9 million, excluding certain assets[14] - Same Store NOI decreased 6.7% for the three months ended September 30, 2025[14] - Net Debt to Annualized Adjusted EBITDA was 12.6x as of September 30, 2025[15] Portfolio Operations - Multifamily portfolio was 89.1% leased and 87.2% occupied as of September 30, 2025[14] - Same Store multifamily portfolio was 93.1% leased and 92.2% occupied[18] - Office portfolio was 77.6% leased and 75.7% occupied as of September 30, 2025[14] - 182,000 square feet of office space was leased with a weighted average lease term of 4.3 years[8] Capital Allocation - 26.8 million shares were repurchased this year at an average price of $16.52 per share, totaling $443.1 million[12] - Since 2020, 83.6 million shares have been repurchased at an average price of $18.79 per share, totaling $1.6 billion[12]

Core Points - NexPoint Real Estate Finance, Inc. is scheduled to host a conference call on October 30, 2025, at 11:00 a.m. ET to discuss its third quarter 2025 financial results [1] - The conference call will be accessible via phone and online, with a replay available for 60 days after the call [2][3] - The company plans to issue a press release with the financial results before the market opens on the same day [3] Company Overview - NexPoint Real Estate Finance, Inc. is a publicly traded REIT listed on the NYSE under the symbols "NREF" and "NREF-PRA" [4] - The company focuses on originating, structuring, and investing in various financial instruments including first-lien mortgage loans, mezzanine loans, preferred equity, and multifamily properties [4]

Core Viewpoint - The article discusses the best dividend stocks in the REIT sector, highlighting their defensive nature during market volatility and the importance of predictable cash flows [1][2]. Industry Overview - REITs are primarily domestic and less exposed to international commerce, making them a defensive investment during market dislocations due to their lease-driven income and strong margins [1]. - The predictable earnings of REITs have historically resulted in good returns, particularly attractive during market volatility [2]. - Various real estate segments may be impacted differently by economic factors such as tariffs, with industrial real estate facing challenges from economic slowdowns and supply chain issues [2]. Market Activity - The office market, which suffered during the pandemic, is showing signs of recovery, with a 42% year-over-year increase in transaction volume, reaching $25.9 billion in the first half of the year [3]. Methodology - The article's methodology involved scanning a database of nearly 1,000 hedge funds to identify REIT companies that pay regular dividends, narrowing down to 12 companies popular among elite funds [5]. Company Highlights - **Universal Health Realty Income Trust (NYSE: UHT)**: Focuses on healthcare properties, owns 76 properties across 21 states, reported an operating cash flow of $909 million, and has a dividend yield of 7.59% as of October 1 [8][9][11]. - **Arbor Realty Trust, Inc. (NYSE: ABR)**: A mortgage REIT focusing on multifamily properties, has stable long-term cash flows, offers a quarterly dividend of $0.30 per share, and has a dividend yield of 10.75% as of October 1 [12][14]. - **Innovative Industrial Properties, Inc. (NYSE: IIPR)**: Specializes in cannabis-related facilities, has 108 properties across 19 states, offers a quarterly dividend of $1.90 per share, and has a dividend yield of 13.75% as of October 1 [15][18].

Core Insights - Douglas Emmett (DEI) reported revenue of $252.43 million for the quarter ended June 2025, marking a year-over-year increase of 2.7% and exceeding the Zacks Consensus Estimate of $251.14 million by 0.52% [1] - The company's earnings per share (EPS) for the same period was $0.37, a significant increase from $0.06 a year ago, aligning with the consensus EPS estimate [1] Revenue Breakdown - Total multifamily revenues reached $49.62 million, surpassing the average estimate of $48.48 million by analysts, reflecting a year-over-year change of 6.6% [4] - Total office revenues amounted to $202.81 million, slightly above the average estimate of $201.8 million, with a year-over-year increase of 1.8% [4] Stock Performance - Over the past month, shares of Douglas Emmett have returned -3.3%, contrasting with the Zacks S&P 500 composite's increase of 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Armada Hoffler reported normalized FFO of $0.25 per diluted share, consistent with expectations and guidance [22][23] - Same store NOI increased by 1.4% on a GAAP basis and 0.3% on a cash basis [23] - AFFO came in at $18.4 million or $0.18 per diluted share, reflecting alignment between operating cash flows and restructured dividend [23][27] Business Line Data and Key Metrics Changes - Office occupancy remained high at 96.3% with positive re-leasing spreads of 11.7% [5] - Retail occupancy was reported at 94.2% with renewal spreads of 10.8% [5] - Multifamily occupancy experienced a modest dip to 94%, attributed to seasonal turnover and macroeconomic pressures [17] Market Data and Key Metrics Changes - The retail portfolio successfully backfilled former big box vacancies with higher credit retailers, achieving a weighted average rent increase of 33% [9] - The office portfolio remains essentially full at 96% occupancy, with minimal vacancy and strong demand for remaining space [12][13] - Recent trends indicate a shift in demand from traditional office spaces to amenity-rich environments, with 54% of Fortune 100 companies returning to fully in-office work [14] Company Strategy and Development Direction - The company is focused on transitioning away from reliance on fee income towards higher quality recurring property-level earnings [6][8] - Armada Hoffler aims to enhance its balance sheet and financial flexibility through strategic debt management, including a recent $115 million private placement [8][24] - The company is committed to maintaining a high-performing portfolio and optimizing property-level performance through operational excellence [5][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's ability to deliver consistent NOI growth and reaffirmed full-year guidance [6][28] - The company is well-positioned to benefit from continued execution across its portfolio, particularly in retail leasing and office occupancy [21] - Management acknowledged potential headwinds in the market but emphasized the strength of the balance sheet to mitigate risks [33] Other Important Information - The company is actively evaluating opportunities within its real estate financing platform, including potential acquisitions of high-quality multifamily assets [19][20] - The AFFO payout ratio stands at 77.8%, indicating a disciplined approach to capital allocation [27] Q&A Session Summary Question: Can you provide details on potential scenarios that would lead to achieving the lower or upper end of the guidance range? - Management believes the guidance range is appropriate, with upside potential from the leasing of the Allied asset and slight increases in construction guidance [32][33] Question: What is the expected downtime for the vacated WeWork office floor? - Management indicated that it is early in the process, with some interest in the space, but it is too early to determine the exact timeline for leasing [37][38] Question: What are the cap rate expectations for multifamily asset acquisitions and dispositions? - Management expects cap rates around 6% for multifamily acquisitions and mid-sixes for the disposition of a fully leased asset [40][42] Question: How are you thinking about upcoming maturities of loans? - Management has extended the TD term loan for another twelve months and is exploring options for the Everly loan, with flexibility in the current market [45][46] Question: What is the strategy for potential strategic dispositions over the next six to twelve months? - Management is reviewing assets for potential sales, focusing on opportunities where market dislocation can be leveraged for growth [51][52]