Manhattan Bridge Capital (LOAN) is a hard-money mortgage REIT with a balance sheet dominated by a single asset class: short-term first-mortgage loans to real estate developers in the New York metro area and Florida. As of March 31, 2026, total assets were $64.3M against total liabilities of $21.1M, producing GAAP book equity of $43.1M. Under a liquidation lens, the recovery picture is favorable relative to most going concerns because the primary asset — loans receivable net of deferred fees ($61.9M, 96% of total assets) — is collateralized first-mortgage paper carrying no allowance for credit losses and zero historical loss rate. Applying a conservative 90% haircut to the loan book (reflecting forced-sale discount on real estate collateral disposition risk and the presence of overdue loans originally due 2020-2025 totaling approximately $33.2M gross) yields approximately $55.7M recoverable from loans. Interest receivable ($1.8M) at 90% adds $1.6M. Cash ($0.18M) and restricted cash ($0.02M) recover at par. Other assets ($0.10M) and deferred financing costs ($0.12M) are written to zero under liquidation. The ROU asset ($0.09M) is zeroed. Total haircut asset recovery approximates $57.5M. Against face-value liabilities of $21.1M — comprising lines of credit ($19.4M), dividends payable ($1.3M), operating lease liability ($0.10M), AP/accrued ($0.19M), and loan holdback ($0.16M) — net recovery to equity is approximately $36.4M, or roughly $3.19 per share on 11.4M shares outstanding. MFFAIS reports LLV/OLV at $56.0M, consistent with a less-severe loan haircut assumption. Since December 31, 2025, gross loans increased $1.9M (from $60.2M to $61.9M net), financed primarily by a $1.8M net draw on the Webster Credit Line (from $11.6M to $13.4M outstanding). Total line of credit balance rose from $17.6M to $19.4M as the Valley Credit Line ($6.0M) remained flat. The Webster Credit Line was amended March 24, 2026 extending maturity to February 28, 2029, removing the near-term refinancing risk that existed at December 31, 2025 (prior maturity was February 28, 2026, briefly extended to March 31, 2026). The overdue loan tail remains the primary recovery risk: approximately $33.2M in principal was originally due in 2020 through 2025 and remains on extension; management reports all borrowers are current on interest and executing extension agreements, but no impairment is accrued. Filing discusses the CECL zero-allowance determination in the 10-K (prior filing) but does not separately tag an allowance for credit losses balance in XBRL in this 10-Q, consistent with the nil reserve position.
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