Terra Property Trust Reports $9.1M Net Loss

By Hao Liu • Thursday, September 04 15:38 • Permanent Link

Terra Property Trust, Inc. (TPT) released its second-quarter 2025 results, reporting a GAAP net loss of $9.1 million or $0.38 per share, driven primarily by reductions in interest income due to non-performing loans and non-cash charges. Depreciation and amortization, including unconsolidated investments, amounted to $1.7 million or $0.07 per share.

The company maintained its distribution for 114 consecutive months and paid a monthly cash dividend of $0.10 per share in Q2 2025. Additionally, TPT set aside a CECL reserve of $1.4 million or $0.06 per share.

As of June 30, 2025, TPT's portfolio comprised 18 assets, with a diversification of 55% in value-add deals, 30% in industrial properties, and 15% in pre-development. The company's leverage ratio stood at 1.54, and it reduced its debt by approximately $165 million (40%) since December 31, 2023. Moreover, TPT reported that 95% of its $245 million loan portfolio was floating rate, with a weighted average interest rate of 13.8% gross and 15.0% net of leverage.

In terms of originations, TPT's average quarterly originations for commercial mortgage REITs (MREITs) were reported to be in decline, with a P/BV ratio ranging from 0.2x to 0.6x from 2019 to 2024. The company's strategy involves primarily focusing on commercial real estate credit investments, with loan sizes ranging from $10 million to $50 million and a duration of 2 to 5 years.

TPT also provided information on its liquidity considerations, noting its voluntary registration of common stock with the SEC to improve visibility and transparency for potential future liquidity transactions, including a direct listing, IPO, or strategic transactions to add scale.

The company's press release also highlighted its market overview, including the economic sentiment, Fed's cautious rate cutting, and subdued CRE transaction activity. The release did not provide a direct comparison with the previous period's metrics. As a result of these announcements, the company's shares have moved 0.04% on the market, and are now trading at a price of $23.49. For more information, read the company's full 8-K submission here.

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