Manhattan Bridge Capital, Inc. (LOAN) Bundle
A Brief History of Manhattan Bridge Capital, Inc.
Manhattan Bridge Capital, Inc. (LOAN) has established itself as a key player in the real estate financing sector, primarily focusing on providing secured commercial loans to real estate investors. As of 2024, the company operates with a strong commitment to maintaining its status as a Real Estate Investment Trust (REIT), which it has upheld since its election to this status in 2014.
Financial Performance Overview
For the nine months ended September 30, 2024, Manhattan Bridge Capital reported total revenues of approximately $7,330,000, an increase of $99,000 or 1.4% from $7,231,000 in the same period of 2023. The revenue increase was attributed to higher interest rates on commercial loans, although this was partially offset by a reduction in loans receivable and lower origination fees.
| Financial Metric | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 | Change |
|---|---|---|---|
| Total Revenues | $7,330,000 | $7,231,000 | $99,000 (1.4%) |
| Net Income | $4,285,000 | $4,128,000 | $157,000 (3.8%) |
| General & Administrative Expenses | $1,225,000 | $1,274,000 | ($49,000) (-3.8%) |
| Interest Income from Loans | $6,128,000 | $5,889,000 | $239,000 (4.1%) |
| Origination Fees | $1,201,000 | $1,342,000 | ($141,000) (-10.5%) |
Quarterly Performance Insights
In the third quarter of 2024, the company reported total revenues of approximately $2,313,000, a decrease of $121,000 or 5.0% from $2,434,000 in the same quarter of 2023. The decline was primarily due to reduced origination fees and a drop in loans receivable.
| Quarterly Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $2,313,000 | $2,434,000 | ($121,000) (-5.0%) |
| Net Income | $1,399,000 | $1,446,000 | ($47,000) (-3.3%) |
| General & Administrative Expenses | $380,000 | $377,000 | $3,000 (0.8%) |
Liquidity and Capital Resources
As of September 30, 2024, Manhattan Bridge Capital maintained cash reserves of approximately $168,000, up from $104,000 at the end of 2023. The company reported net cash provided by operating activities amounting to approximately $4,005,000 for the nine months ended September 30, 2024, compared to $4,137,000 for the same period in 2023.
Debt and Credit Facilities
The company has an Amended and Restated Credit and Security Agreement with Webster Business Credit Corporation, which provides a credit line of $32.5 million until February 28, 2026. The interest rate on the outstanding amount was approximately 8.4% as of September 30, 2024.
| Debt Metric | Amount |
|---|---|
| Outstanding Amount under Credit Agreement | $19,170,268 |
| Credit Line Amount | $32,500,000 |
| Interest Rate (including agency fee) | 8.4% |
Shareholder Returns
In 2024, the company declared a cash dividend of $0.115 per share, totaling approximately $1,315,445, payable on October 15, 2024. This reflects Manhattan Bridge Capital's ongoing commitment to return value to its shareholders.
A Who Owns Manhattan Bridge Capital, Inc. (LOAN)
Ownership Structure
As of 2024, Manhattan Bridge Capital, Inc. (LOAN) has a diverse ownership structure that includes both institutional and retail investors. The company has approximately 11,757,058 shares of common stock outstanding.
Major Shareholders
The following table outlines the significant shareholders of Manhattan Bridge Capital, Inc. as of September 30, 2024:
| Shareholder | Type of Ownership | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Assaf Ran (CEO) | Direct Ownership | 704,000 | 5.98% |
| Vanessa Kao (CFO) | Direct Ownership | 288,000 | 2.45% |
| Institutional Investors | Institutional Ownership | Approx. 60% (estimated) | Not Disclosed |
| Retail Investors | Public Ownership | Approx. 35% (estimated) | Not Disclosed |
| Others | Other Holders | Approx. 5% (estimated) | Not Disclosed |
Institutional Ownership
As of September 30, 2024, institutional investors hold a significant portion of Manhattan Bridge Capital's shares. The company has attracted various institutional funds, enhancing its stability and investor confidence. Key institutional investors include mutual funds and pension funds.
Recent Developments
In 2024, Manhattan Bridge Capital initiated a share buyback program, repurchasing a total of 56,294 shares at an aggregate cost of $271,468. This activity reflects the company's strategy to enhance shareholder value and manage its capital structure effectively.
Management Ownership
Management, particularly the CEO and CFO, holds a notable portion of the company's shares, indicating their vested interest in the company's performance. As of September 30, 2024, Assaf Ran owns 704,000 shares, while Vanessa Kao owns 288,000 shares.
Dividend Payments
On July 29, 2024, the company declared a cash dividend of $0.115 per share, amounting to a total of $1,315,445, which was paid on October 15, 2024. This dividend reflects the company's commitment to returning capital to its shareholders.
Financial Summary
The financial performance of Manhattan Bridge Capital, Inc. has remained stable with total revenues for the nine months ended September 30, 2024, amounting to approximately $7,330,000, compared to $7,231,000 for the same period in 2023.
Conclusion of Ownership Analysis
The ownership landscape of Manhattan Bridge Capital, Inc. is characterized by a mix of management, institutional, and retail investors, with ongoing efforts to enhance shareholder value through dividends and stock buybacks.
Manhattan Bridge Capital, Inc. (LOAN) Mission Statement
Company Overview
Manhattan Bridge Capital, Inc. (LOAN) is a New York-based real estate finance company that specializes in originating, servicing, and managing a portfolio of first mortgage loans. The company primarily focuses on providing short-term, secured non-banking loans, often referred to as "hard money" loans, to real estate investors for the acquisition, renovation, and development of residential and commercial properties. As of September 30, 2024, the company had a total loan portfolio valued at approximately $68.71 million, comprising loans for residential, commercial, and mixed-use developments.
Mission Statement
Manhattan Bridge Capital, Inc. aims to provide flexible financing solutions to real estate investors, facilitating their endeavors in property acquisition and development while ensuring a robust return on investment for its shareholders. The mission underscores the commitment to maintaining high-quality loan portfolios secured by first mortgage liens on real estate, accompanied by personal guarantees from borrowers.
Financial Performance Overview
For the nine months ended September 30, 2024, Manhattan Bridge Capital reported total revenues of approximately $7.33 million, reflecting a modest increase of 1.4% from approximately $7.23 million in the same period of 2023. This revenue primarily stemmed from interest income on secured commercial loans, which amounted to approximately $6.13 million, compared to $5.89 million in 2023.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $7,330,000 | $7,231,000 |
| Interest Income | $6,128,000 | $5,889,000 |
| Origination Fees | $1,201,000 | $1,342,000 |
| Net Income | $4,285,000 | $4,128,000 |
| General & Administrative Expenses | $1,225,000 | $1,274,000 |
| Cash | $168,000 | $104,000 |
Loan Portfolio Details
As of September 30, 2024, Manhattan Bridge Capital's loans receivable included the following amounts by category:
| Loan Type | Amount |
|---|---|
| Residential | $59,886,438 |
| Commercial | $7,380,000 |
| Mixed Use | $1,445,000 |
| Total Outstanding Loans | $68,711,438 |
Dividend Policy
Manhattan Bridge Capital adheres to a policy of distributing at least 90% of its REIT taxable income to maintain its status as a Real Estate Investment Trust (REIT). In accordance with this policy, a cash dividend of $0.115 per share was declared, amounting to $1,315,445, payable on October 15, 2024, to shareholders of record as of October 8, 2024.
Credit Facilities
The company has an Amended and Restated Credit Agreement with Webster Business Credit Corporation, providing a credit line of $32.5 million, secured by assignments of mortgages. As of September 30, 2024, the outstanding amount under the credit agreement was approximately $19.17 million, with an interest rate of approximately 8.4%.
Conclusion
The mission statement of Manhattan Bridge Capital, Inc. reflects its strategic focus on real estate financing while ensuring a commitment to shareholders through prudent financial management and a strong loan portfolio.
How Manhattan Bridge Capital, Inc. (LOAN) Works
Business Model
Manhattan Bridge Capital, Inc. operates as a real estate finance company that specializes in originating, servicing, and managing a portfolio of first mortgage loans. The company primarily offers short-term, secured, non-banking loans, often referred to as "hard money" loans, to real estate investors. These loans are generally secured by real estate and accompanied by personal guarantees from borrowers. The loans typically have a term of one year, with options for extensions based on the borrower's request and collateral evaluation.
Financial Performance
For the nine months ended September 30, 2024, Manhattan Bridge Capital reported total revenues of approximately $7,330,000, up from $7,231,000 for the same period in 2023, reflecting an increase of 1.4%. This increase was primarily driven by higher interest rates on commercial loans, partially offset by a reduction in loans receivable and lower origination fees.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $7,330,000 | $7,231,000 |
| Interest Income | $6,128,000 | $5,889,000 |
| Origination Fees | $1,201,000 | $1,342,000 |
| Net Income | $4,285,000 | $4,128,000 |
| General and Administrative Expenses | $1,225,000 | $1,274,000 |
| Interest and Amortization of Deferred Financing Costs | $1,831,000 | $1,856,000 |
Cash Flow
For the nine months ended September 30, 2024, Manhattan Bridge Capital reported net cash provided by operating activities of approximately $4,005,000, compared to $4,137,000 for the same period in 2023. The decrease was attributed to an increase in interest and fees receivable on loans. The net cash provided by investing activities was approximately $4,383,000, compared to $3,697,000 in 2023.
| Cash Flow Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $4,005,000 | $4,137,000 |
| Net Cash Provided by Investing Activities | $4,383,000 | $3,697,000 |
| Net Cash Used in Financing Activities | ($9,912,000) | ($7,805,000) |
Loan Portfolio
As of September 30, 2024, the company's loans receivable included amounts from various years, totaling approximately $68,711,438. The loans are primarily from residential developers, commercial developers, and mixed-use developers.
| Loan Portfolio | Amount |
|---|---|
| Residential Developers | $59,886,438 |
| Commercial Developers | $7,380,000 |
| Mixed-Use Developers | $1,445,000 |
| Total Outstanding Loans | $68,711,438 |
Credit Facilities
Manhattan Bridge Capital maintains a credit line with Webster Business Credit Corporation, providing a total credit line of $32.5 million, secured by mortgages and other collateral. As of September 30, 2024, the outstanding amount under this credit line was approximately $19,170,268 with an interest rate of approximately 8.4%.
Dividends
The company is required to distribute at least 90% of its REIT taxable income to maintain its REIT status. On October 15, 2024, Manhattan Bridge Capital declared and paid a cash dividend of $0.115 per share, totaling approximately $1,315,445.
Stockholder Equity
As of September 30, 2024, the total stockholders' equity was approximately $43,270,919, reflecting an increase from $42,932,706 at the end of the previous year.
| Stockholder Equity Metrics | 2024 | 2023 |
|---|---|---|
| Total Stockholders' Equity | $43,270,919 | $42,932,706 |
| Common Shares Outstanding | 11,757,058 | 11,757,058 |
| Treasury Shares | 318,407 | 316,407 |
How Manhattan Bridge Capital, Inc. (LOAN) Makes Money
Revenue Sources
Manhattan Bridge Capital, Inc. primarily generates revenue through interest income from loans and origination fees associated with its commercial loans. For the nine months ended September 30, 2024, total revenues amounted to approximately $7,330,000, reflecting an increase of 1.4% from $7,231,000 in the same period of 2023.
| Revenue Source | 2024 | 2023 |
|---|---|---|
| Interest Income from Loans | $6,128,000 | $5,889,000 |
| Origination Fees | $1,201,000 | $1,342,000 |
| Total Revenue | $7,330,000 | $7,231,000 |
Loan Portfolio and Operations
The company specializes in short-term secured loans to real estate investors, also known as hard money loans, primarily within the New York metropolitan area, New Jersey, Connecticut, and Florida. As of September 30, 2024, the total outstanding loans amounted to approximately $68,711,438, which includes:
- Residential Developers: $59,886,438
- Commercial Developers: $7,380,000
- Mixed-Use Developers: $1,445,000
The loans are typically secured by real estate collateral and personal guarantees from borrowers. The average loan term is one year, with interest-only payments during the term and a balloon payment at maturity.
Operating Costs and Expenses
Operating costs for the nine months ended September 30, 2024, totaled approximately $3,057,925, compared to $3,131,998 for the same period in 2023. Key components include:
| Expense Type | 2024 | 2023 |
|---|---|---|
| Interest and Amortization of Deferred Financing Costs | $1,831,037 | $1,856,079 |
| General and Administrative Expenses | $1,225,041 | $1,274,267 |
| Total Operating Costs | $3,057,925 | $3,131,998 |
Net Income
The net income for the nine months ended September 30, 2024, was approximately $4,285,200, an increase from $4,128,302 in 2023. This growth is primarily attributed to increased interest income, even as origination fees declined.
| Net Income Metrics | 2024 | 2023 |
|---|---|---|
| Net Income | $4,285,200 | $4,128,302 | Basic Net Income per Share | $0.37 | $0.36 |
Liquidity and Capital Resources
As of September 30, 2024, the company held cash of approximately $168,000, compared to $104,000 at December 31, 2023. Net cash provided by operating activities for the nine months was around $4,005,000, down from $4,137,000 in the previous year.
Debt and Financing
The company utilizes a credit line with Webster Business Credit Corporation. As of September 30, 2024, the outstanding balance on this credit line was approximately $19,170,268, with an interest rate of about 8.4%.
| Debt Metrics | Amount |
|---|---|
| Outstanding Balance on Credit Line | $19,170,268 |
| Interest Rate on Credit Line | 8.4% |
For the nine months ended September 30, 2024, net cash used in financing activities was approximately $9,912,000, reflecting dividend payments of $3,918,000 and a partial repayment of the credit line totaling $5,982,000.
Overall, Manhattan Bridge Capital, Inc. continues to capitalize on its niche in the hard money lending market, leveraging its established portfolio and strategic financing arrangements to generate consistent income.
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Article updated on 8 Nov 2024
Resources:
- Manhattan Bridge Capital, Inc. (LOAN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Manhattan Bridge Capital, Inc. (LOAN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Manhattan Bridge Capital, Inc. (LOAN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.