MacKenzie Realty Capital, Inc.

The Operating Partnership’s subsidiary, Main Street West, LP (“Main Street West”), had a loan from First Northern Bank of Dixon that matured on November 1, 2024. Despite attempts to negotiate an extension, an agreement could not be reached. As a result, Main Street West is currently in default under the note terms. The bank initiated foreclosure proceedings and filed a notice of default, and on January 28, 2025, a receiver was appointed by the court. On March 25, 2025, the Company entered into the Forbearance, and Indemnity Agreement with the Lender with a fixed default interest rate. As part of the Forbearance Agreement, the Company paid down $5 million on the loan and took control of the property from the receiver. Subject to performance by the Company, the Lender agreed to forbear until the forbearance termination date of September 30, 2025, from taking any further foreclosure actions. As of March 31, 2025, the outstanding balance on the loan was $10.46 million. See Note 10 – Mortgage Notes Payable, Notes Payable and Debt Guaranty in the consolidated financial statements included in this report for additional information regarding the Main Street West property, the foreclosure proceedings, and the related Forbearance Agreement.