LOAN

Manhattan Bridge Capital is a tiny ($53M cap), tightly-run REIT that originates short-term first-mortgage 'hard money' loans (9%–12.5% fixed) to real-estate investors around NYC metro and Florida. The quality of the business shows in the numbers: 59% net margin, 58.8% operating margin, liabilities/equity of just 0.45x, and a management team that, per the MD&A, has made 1,340+ loans since 2007 and 'never foreclosed on a property' (the lone 2023 foreclosure suit was paid off in full within months). Loans are personally guaranteed and typically capped at 75% LTV on acquisitions. This is a conservative, cash-generative lender, not a speculative one — and at 10.4x earnings and ~1.2x book (equity $43.1M / 11.4M shares ≈ $3.78), it is priced like the stable income vehicle it is.

The problem is that the franchise is quietly shrinking, not growing. Revenue fell 10.6% to $8.67M in FY2025 and is now below both FY2023 ($9.80M) and FY2024 ($9.69M); net income slid 8.6% to $5.11M and EPS to $0.45. The MD&A itself flags the core constraint — 'our loan origination activities, revenues and profits are limited by available funds' and 'if we do not increase our working capital, we will not be able to grow.' Total assets shrank 7.4% and the company even sold a $250K loan at face in September 2025, consistent with a portfolio that is contracting rather than being redeployed at scale despite $22.6M of available credit-line capacity.