Terra Income Fund 6 Reports Q2 2025 Financial Results with Increased Net Loss

Terra Income Fund 6, LLC reported its financial results for the second quarter of 2025, revealing a net loss of $2.23 million, compared to a net loss of $1.98 million in the same period last year. For the first half of 2025, the company recorded a net loss of $4.51 million, an improvement from a loss of $5.04 million in the first half of 2024. Total revenues for the second quarter increased to $1.86 million from $1.78 million year-over-year, driven primarily by a rise in interest income, which reached $1.85 million, up from $1.77 million. However, total revenues for the six months ended June 30, 2025, decreased to $3.75 million from $3.96 million in the prior year.

The company's total assets as of June 30, 2025, amounted to $114.04 million, a slight decrease from $115.90 million at the end of 2024. Notably, cash and cash equivalents dropped significantly to $295,426 from $3.01 million. Loans held for investment increased to $20.43 million from $18.58 million, while loans held for investment acquired through participation decreased to $10.13 million from $11.81 million. The equity interest in unconsolidated investments also saw a decline, falling to $34.72 million from $36.29 million.

Operationally, Terra Income Fund 6, LLC has been active in managing its loan portfolio, which now consists of 47.68 million in principal balance across various property types, including mixed-use and office properties. The company reported a provision for credit losses of $843,748 for the second quarter, significantly higher than the $226,279 recorded in the same quarter of 2024. This increase reflects a decline in the estimated recoverable amount on a non-performing subordinated loan. The company also reported a loss from equity interest in unconsolidated investments of $760,495 for the second quarter, an improvement from a loss of $963,371 in the prior year.

Looking ahead, Terra Income Fund 6, LLC remains focused on its investment strategy, which includes originating, investing in, and managing a diverse portfolio of real estate-related investments. The company has indicated that it will continue to monitor market conditions and borrower performance closely, as these factors could significantly impact its financial results. The company’s management expressed optimism about future investment opportunities, although they acknowledged the potential risks associated with market volatility and borrower defaults.