Business Context and Reporting Period
Company: Manhattan Bridge Capital, Inc. (LOAN)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: June 30, 2026
Business Overview: A New York-based real estate finance company specializing in short-term, secured, non-banking ("hard money") loans to real estate investors for acquisition, renovation, and development in the New York metropolitan area and Florida. The Company operates as a Real Estate Investment Trust (REIT).
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Total Revenue | $2,045,203 | $4,112,847 |
| Net Income | $1,152,647 | $2,426,971 |
| Net Income Per Share (Basic/Diluted) | $0.10 | $0.21 |
| Loans Receivable (Net) | $61,772,768 (as of June 30, 2026) | N/A |
| Total Assets | $63,993,524 (as of June 30, 2026) | N/A |
| Total Liabilities | $21,004,561 (as of June 30, 2026) | N/A |
| Lines of Credit Outstanding | $19,309,466 (as of June 30, 2026) | N/A |
| Cash and Restricted Cash | $256,547 (as of June 30, 2026) | N/A |
| Operating Cash Flow (6 Months) | N/A | $2,691,773 |
Material Changes vs. Prior Period
- Revenue Decline: Total revenue decreased 13.2% ($310,000) for the three months ended June 30, 2026, compared to the same period in 2025. The six-month revenue decreased 11.1% ($516,000). Management attributes this to lower interest rates and origination fees due to increased market competition, despite higher loan origination volumes.
- Net Income Decline: Net income decreased 18.4% ($260,000) for the quarter and 12.9% ($359,000) for the six months compared to the prior year periods. This was primarily driven by lower revenue, partially offset by reduced interest expense.
- Expense Reduction: Interest and amortization of deferred financing costs decreased 21.1% for the quarter and 20.5% for the six months, driven by lower average borrowings and lower SOFR rates.
- Expense Increase: General and administrative expenses increased 13.0% for the quarter and 3.9% for the six months, primarily due to higher payroll, legal, and appraisal costs.
- Loan Portfolio Growth: Loans receivable increased from $60.2 million at December 31, 2025, to $61.8 million at June 30, 2026.
Guidance, Outlook, Risks, and Unusual Items
- Outlook: Management believes current market dynamics, specifically supply-and-demand imbalances for small real estate loans, present opportunities for selective origination. They expect working capital requirements to increase over the next 12 months as they pursue growth.
- Liquidity: The Company maintains two primary credit facilities: a $32.5 million line with Webster/Flushing (maturity extended to Feb 2029) and a $10.0 million line with Valley National Bank (maturity Dec 2027). As of June 30, 2026, total outstanding borrowings were approximately $19.3 million.
- Risk - Delinquency: One borrower with an aggregate outstanding principal of approximately $935,000 (secured by two Florida properties) became delinquent on interest payments for approximately three months. The Company has engaged foreclosure counsel. Management believes the collateral value substantially exceeds the principal balance and has not recorded an allowance for credit losses.
- Unusual Items: The Company granted approximately $85,000 in discretionary payoff and refinancing credits to borrowers during the quarter (approx. $91,000 for the six months) in connection with negotiated payoffs.
- Dividends: A cash dividend of $0.11 per share ($1,256,806 total) was declared and paid on July 15, 2026.
Investor Verification Checklist
- Delinquency Status: Verify the status of the $935,000 Florida loan delinquency and the progress of foreclosure proceedings.
- Revenue Quality: Assess the impact of discretionary payoff credits ($91,000 for six months) on net revenue and future pricing power.
- Interest Rate Sensitivity: Monitor the impact of SOFR fluctuations on the Company's cost of funds versus loan yields, given the floating-rate nature of their credit lines.
- Concentration Risk: Confirm that no single borrower exceeds 10% of the total loan portfolio (management states this is currently the case).
- Covenant Compliance: Verify continued compliance with financial covenants under the Webster and Valley credit lines, particularly regarding portfolio composition limits (e.g., loans outstanding >30 months capped at 17.5%).