Terra Property Trust, Inc. has released its Q1 2025 results, reporting a GAAP net loss of $1.3 million or $0.05 per share. This loss was driven primarily by reductions in interest income due to non-performing loans and non-cash charges, including $2.1 million in incremental CECL reserves. The company also realized $2.5 million of default interest on full repayment of a loan that was on non-accrual status.
The company's MREITs remain in defensive mode, unable to raise capital accretively, leading to protracted workouts, increased reserves, and dividend cuts. The average quarterly originations for MREITs have decreased, and the CMREIT P/BV ratio has declined.
Terra Property Trust's portfolio consists of 20 assets with a diverse mix of investment structures, property types, and investment profiles. The company has a leverage ratio of 1.59 and has reduced non-performing loans through payoffs by approximately $150 million.
In terms of liquidity considerations, Terra Property Trust voluntarily registered its common stock with the SEC to enhance visibility and transparency and improve its ability to pursue potential liquidity transactions, including a direct listing, IPO, or strategic transactions to add scale.
As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $18.28. For more information, read the company's full 8-K submission here.
