MacKenzie Realty Capital, Inc.

The Operating Partnership’s subsidiary, Main Street West, had a loan with First Northern Bank of Dixon (the “Prior Lender”) that matured on November 1, 2024. Despite attempts to negotiate an extension, the parties were unable to reach an agreement. As a result, Main Street West defaulted under the terms of the note. The Prior Lender initiated foreclosure proceedings and filed a notice of default, and on January 28, 2025, the court appointed a receiver. On March 25, 2025, the Company entered into the Forbearance, Settlement, and Release Agreement (the “Forbearance Agreement”) with the Prior Lender and as part of the Forbearance Agreement, the Company paid down $5 million on the loan and took control of the property from the receiver in April 2025. The loan from the Prior Lender was paid off on June 6, 2025, with a new loan from EverTrust Bank. See Note 10 in the consolidated financial statements included in this report for additional information regarding the Main Street West Office Building, the foreclosure proceedings, and the Forbearance Agreement.