| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.44 | 444 |
| Intrinsic value (DCF) | 4.92 | 10 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 19.22 | 328 |
Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) is a specialized real estate finance company operating as a mortgage REIT (Real Estate Investment Trust). Focused on short-term, secured loans, the company serves real estate investors in key markets, including the New York metropolitan area (New Jersey, Connecticut) and Florida. Its business model revolves around originating, servicing, and managing first mortgage loans, primarily secured by real estate collateral and backed by personal guarantees. As a REIT, Manhattan Bridge Capital benefits from tax advantages by distributing at least 90% of taxable income to shareholders, making it an attractive income-generating investment. The company’s niche focus on non-banking loans for property acquisition, renovation, and enhancement positions it uniquely in the private lending space. With a disciplined underwriting approach and a localized market strategy, LOAN provides essential capital to real estate investors while mitigating risk through collateralization. Headquartered in Great Neck, New York, the firm has built a reputation for reliability in the competitive private lending sector.
Manhattan Bridge Capital (LOAN) presents a compelling opportunity for income-focused investors, given its REIT structure and consistent dividend payouts (currently $0.46 per share). The company’s low beta (0.32) suggests lower volatility relative to the broader market, appealing to risk-averse investors. However, its small market cap (~$59M) and concentrated geographic exposure (NY metro/Florida) introduce liquidity and regional economic dependency risks. The firm’s high net income margin (~58%) reflects efficient operations, but rising interest rates could pressure borrower demand. With minimal capital expenditures and strong operating cash flow coverage, LOAN maintains financial flexibility, though its elevated debt-to-equity ratio warrants monitoring. Investors should weigh its attractive yield against sector-wide risks like real estate market cyclicality.
Manhattan Bridge Capital competes in the private real estate lending market, differentiating itself through hyper-localized underwriting and a streamlined loan process for short-term financing needs. Its competitive advantage lies in its nimble structure, allowing quicker decision-making compared to traditional banks, and its focus on smaller loan sizes (typically under $3M), which larger REITs often overlook. The company’s deep regional expertise in the NY metro and Florida markets provides an edge in assessing collateral value and borrower credibility. However, its lack of diversification beyond these regions limits growth scalability. Unlike larger mortgage REITs, LOAN does not engage in agency MBS (e.g., Annaly Capital), reducing interest rate sensitivity but also capping upside during refinancing booms. Its non-banking status allows flexible lending criteria, but this also exposes it to higher default risks versus institutional lenders. Competitively, LOAN’s personalized service and speed are strengths, but its limited capital base restricts its ability to compete for larger deals dominated by private equity-backed lenders.