The board of MacKenzie Realty Capital, a publicly registered non-traded business development company, has approved the suspension of the company’s share repurchase program, effective immediately. The board made no charges to the company’s dividend reinvestment program.
“The virus and countermeasures have disrupted markets for assets owned and sought by the company, prompting a decline in the value of such assets,” the company said in a filing with the Securities and Exchange Commission. “Under these circumstances, the board determined that the company and its stockholders are best served by retention of cash, thereby allowing the company to capitalize on opportunities to acquire assets at attractive prices.”
MacKenzie purchases shares of illiquid investments, such as non-traded real estate investment trusts, directly from investors in unsolicited tender offers at prices lower than the estimated net asset value per share. According to their website, the company currently has six open tender offers for non-traded REIT shares, including Moody Nation REIT II, Cole Office & Industrial REIT (CCIT II), KBS REIT II, Hines Global REIT, Inventrust Properties, and Carter Validus Mission Critical REIT II.
MacKenzie Capital Management LP and its affiliates have been in the business of purchasing illiquid real estate securities, both in open market transactions and by means of tender offers, since 1982. The firm claims to have acquired more than $170 million in such securities for affiliated portfolios over the last 10 years. MacKenzie Realty Capital is advised by MCM Advisers LP.