Terra Income Fund 6 Reports $2.3 Million Net Loss, Improved from Previous Year

Terra Income Fund 6, LLC reported a net loss of $2.3 million for the three months ended March 31, 2025, a significant improvement compared to a net loss of $3.1 million during the same period in 2024. The company’s total revenues decreased to $1.89 million from $2.18 million year-over-year, primarily driven by a decline in interest income, which fell to $1.88 million from $2.16 million. This decrease was attributed to a reduction in the weighted average principal balance of gross loans, although it was partially offset by increased interest income from a promissory note receivable.

In terms of operational performance, Terra Income Fund 6 saw a reduction in operating expenses, which totaled $1.34 million for the first quarter of 2025, down from $1.82 million in the prior year. Notably, asset management and servicing fees paid to Terra REIT decreased significantly from $390,058 to $204,067, reflecting a lower allocation of management fees due to a decrease in total funds under management. The provision for credit losses remained relatively stable, with a slight decrease from $824,348 to $769,936.

The company’s total assets as of March 31, 2025, were reported at $114.8 million, a slight decline from $115.9 million at the end of 2024. Loans held for investment increased to $19.4 million from $18.6 million, while loans held for investment acquired through participation decreased to $10.9 million from $11.8 million. The equity interest in unconsolidated investments also saw a decline, falling to $35.5 million from $36.3 million. The company’s total liabilities increased to $56.2 million from $55.1 million, primarily due to an increase in unsecured notes payable.

Looking ahead, Terra Income Fund 6 remains focused on its investment strategy, which includes originating, investing in, and managing a diverse portfolio of real estate-related investments. The company is also evaluating opportunities for geographic expansion and potential acquisitions that align with its investment objectives. The management expressed optimism about achieving attractive risk-adjusted returns, despite the challenges posed by market conditions and borrower performance. The company continues to monitor its credit loss estimates and operational metrics closely to navigate the evolving economic landscape.