8-K: MacKenzie Realty Capital Announces Auditor Change Following Moss Adams Merger with Baker Tilly

MacKenzie Realty Capital, Inc. has appointed Baker Tilly US, LLP as its new independent registered public accounting firm, succeeding Moss Adams LLP, due to a merger between the two accounting firms.

Summary

• MacKenzie Realty Capital, Inc. (the "Company") announced on June 9, 2025, a change in its independent registered public accounting firm.
• Moss Adams LLP, the Company's previous auditor, merged with Baker Tilly US, LLP, effective June 3, 2025, leading to Moss Adams' resignation.
• The Audit Committee of the Company's Board of Directors approved the appointment of Baker Tilly US, LLP as the successor auditor.
• Moss Adams' audit reports for the fiscal years ended June 30, 2024, and June 30, 2023, did not contain any adverse opinions, disclaimers, or qualifications.
• There were no disagreements with Moss Adams on accounting principles, financial statement disclosure, or auditing scope/procedure during the years ended June 30, 2024, and 2023, or the subsequent interim period through June 9, 2025.
• No reportable events requiring disclosure pursuant to Item 304(a)(1)(v) of Regulation S-K occurred.
• The Company did not consult with Baker Tilly regarding accounting principles or audit opinions prior to their appointment, nor were there any disagreements or reportable events discussed.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. While an auditor change can sometimes signal issues, this filing clearly states the change is due to a merger and explicitly confirms no disagreements or adverse opinions, which is a positive sign of a smooth transition and good corporate governance.

Positives

• The transition of the independent registered public accounting firm was a result of a merger between the previous auditor and the new auditor, indicating a non-contentious change.
• Moss Adams LLP's audit reports for the years ended June 30, 2024, and 2023, were unqualified, with no adverse opinions or disclaimers.
• There were no disagreements on accounting principles or auditing procedures with the former auditor, Moss Adams LLP, prior to their resignation.
• The Company did not have any reportable events with Moss Adams LLP, indicating a clean audit history with the outgoing firm.

Risks

• While the change is due to a merger and appears smooth, any change in a company's independent auditor inherently carries a minor risk of disruption to financial reporting processes or a learning curve for the new firm, though the document indicates no such issues.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding the Company's financial performance or strategic direction, focusing solely on the change in its independent registered public accounting firm.

Management Comments

• Robert Dixon, President of MacKenzie Realty Capital, Inc., signed the Form 8-K, affirming the Company's compliance with SEC requirements regarding the disclosure of the auditor change.

Industry Context

Changes in a company's independent auditor are a common occurrence in the financial industry, often driven by mergers and acquisitions among accounting firms, or by companies seeking new audit services. This specific change is a direct result of a merger between two prominent accounting firms, Moss Adams and Baker Tilly, which is a significant event within the auditing profession. Such transitions are closely monitored by investors for any signs of underlying financial issues or disagreements, though in this case, the filing explicitly states no such issues were present.

Comparison to Industry Standards

• The process followed by MacKenzie Realty Capital, including the approval by the Audit Committee and the explicit confirmation of no disagreements or reportable events with the outgoing auditor, aligns with standard corporate governance practices and SEC regulations (e.g., Item 304(a) of Regulation S-K) for auditor changes.
• The merger of Moss Adams and Baker Tilly is a notable consolidation within the accounting industry, similar to other large-scale mergers seen among 'Big Four' and other national accounting firms, which often necessitate client transitions.

Corporate Governance

Stakeholder Impact

• Shareholders: The change in auditor, being a result of a merger and without any reported disagreements, should not negatively impact investor confidence in the integrity of the Company's financial statements.
• Employees: No direct impact on employees is indicated by this administrative change.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated.

Next Steps

• Baker Tilly US, LLP will now serve as the independent registered public accounting firm for MacKenzie Realty Capital, Inc. for future financial audits.

Key Dates

Keywords

MacKenzie Realty Capital, MKZR, SEC filing, Form 8-K, auditor change, independent registered public accounting firm, Moss Adams LLP, Baker Tilly US LLP, corporate governance, financial reporting, audit committee, public company