Dive Brief:
- Like some of its larger peers, small REIT MacKenzie Realty Capital has initiated a strategic review of its multifamily portfolio to enhance shareholder value, according to a Dec. 12 news release.
- “We believe the net asset value of our multifamily portfolio alone greatly exceeds our market capitalization,” Robert Dixon, CEO and president of MacKenzie, said in the release. “We are evaluating options with the goal of getting our share price to more closely reflect the intrinsic value of our assets.”
- The Orinda, California-based firm has five multifamily properties and one development site. It also owns eight office properties. MacKenzie didn’t reply to a request for comment from Multifamily Dive.
Dive Insight:
MacKenzie, founded in 2013, is a West Coast-focused REIT that aims to invest at least 80% of its total assets in real property and up to 20% in illiquid real estate securities. The firm intends for the real property portfolio to be approximately 50% multifamily and 50% boutique class.
Though much smaller than other publicly traded companies, the REIT shares the same issues as its larger peers — its stock is trading at a discount to its assets.
Other REITs have taken similar actions over the past year.
In November, Centerspace confirmed that its board of trustees initiated a review of the REIT’s strategic alternatives. The board, with the support of its independent financial and legal advisors, will consider a range of options, including a sale, merger and other business combinations.
Centerspace, which owns more than 12,000 units, said there is no assurance the review will result in a transaction or other strategic change. The Minneapolis-based REIT has not set a timetable for the review process and has not made any decisions regarding potential strategic alternatives, per the release.
Also in November, Aimco announced the targeted marketing and sale of its remaining assets as it concludes its strategic review process, according to a press release. As part of that process, it went under contract to sell a seven-property portfolio in Chicago to LaTerra Capital Management, in partnership with Respark Residential, for $455 million, earlier this week.
In August, Elme Communities took the first step toward liquidating the company by selling a 19-asset portfolio to Atlanta-based investor, developer and manager Cortland Partners for $1.6 billion in cash.
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