Manhattan Bridge Capital, Inc.

What they do

The company originates short-term, secured, non-banking loans (hard money loans) to real estate investors for property acquisition, renovation, rehabilitation, or development. Loans typically have a maximum initial term of 12 months, bear fixed interest rates of 9% to 12.5%, and are secured by first mortgage liens, personally guaranteed by the borrower's principals. The company qualifies as a REIT and must distribute at least 90% of its taxable income to shareholders annually.

Revenue drivers

• Interest income from first mortgage loans — Primary revenue source; loans bear fixed interest rates typically 9% to 12.5%, with some agreements allowing prime plus 3.0% on the outstanding balance.
• Origination fees and points — The company typically charges origination fees or points ranging from 0% to 2% of the original principal amount, plus underwriting and funding fees.
• Renewal and extension fees — When loans are renewed or extended, the company generally receives additional points and other fees, contributing to recurring revenue.

Recent performance

In 2025, annual revenue was $8.7 million and net income was $5.1 million, with diluted EPS of $0.45. Operating cash flow was $4.9 million. Recent quarterly revenue has been steady: $2.0 million (Q3 2025), $2.0 million (Q4 2025), $2.1 million (Q1 2026), and $2.0 million (Q2 2026). As of June 30, 2026, total assets were $64.0 million, total liabilities $21.0 million, and shareholder equity $43.0 million.

Strategy

Management's stated objective is to grow the loan portfolio while preserving capital and generating attractive risk-adjusted returns through dividends. The company focuses on selectively originating first mortgage loans in the New York metropolitan area and Florida, leveraging its expertise and disciplined credit culture. A principal source of new transactions is repeat business from prior customers and referrals, supplemented by leads from banks and brokers. The CEO dedicates significant time to new business development.

Risks

• Limited available funds — Loan origination activities, revenues, and profits are limited by the availability of funds, which could constrain growth.
• Competitive real estate lending market — The company faces competition in the real estate lending market, which could pressure loan terms and margins.
• Borrower default risk — A borrower with an aggregate outstanding principal balance of approximately $935,000 secured by two Florida properties became delinquent in Q2 2026, and foreclosure proceedings may be necessary; no allowance was recorded as collateral value is believed to exceed the balance.
• Interest rate and collateral valuation risk — The company could be adversely affected by overestimating loan yields or collateral values and by interest rate fluctuations, which may impact borrowing costs and portfolio performance.

Outlook

Management sees opportunities from the supply-and-demand imbalance for relatively small real estate loans, believing these market conditions should persist for years. They intend to continue selectively originating high-quality first mortgage loans while managing the portfolio to protect capital. The company will monitor the delinquent Florida loan and the foreclosure process each reporting period, but current collateral values are believed to be sufficient.