Terra Property Trust, Inc. reported a net loss of $37.2 million for the fiscal year ending December 31, 2024, a significant improvement from the net loss of $56.9 million recorded in the previous year. The company's total revenues decreased to $49.7 million from $67.9 million in 2023, primarily driven by a $17.9 million decline in interest income, which fell to $38.3 million due to a reduction in the weighted average principal balance of performing loans and an increase in suspended interest income accrual on non-performing loans. Real estate operating revenue also saw a slight decrease, totaling $10.7 million compared to $11.1 million in 2023.
In terms of operational changes, Terra Property Trust made strategic adjustments to its loan portfolio, resulting in a net loan portfolio of $274.6 million as of December 31, 2024, down from $456.5 million the previous year. The company invested $57.2 million in new loans while receiving $216.1 million in repayments, leading to a net repayment of $16.9 million. The company also reported a provision for credit losses of $16.6 million, a decrease from $45.5 million in 2023, reflecting improved credit quality and management of non-performing loans.
The company’s real estate holdings include eight industrial buildings with a net carrying value of $125.3 million, down from $129.8 million in 2023. Terra Property Trust's equity investments in a limited partnership and joint ventures increased significantly, with a carrying value of $106.8 million as of December 31, 2024, compared to $37.2 million the previous year. This growth was attributed to increased investments and improved performance in the underlying assets.
Looking ahead, Terra Property Trust anticipates funding approximately $18.7 million in unfunded commitments to borrowers over the next twelve months. The company has extended the maturity of its revolving line of credit and repurchase agreements, ensuring sufficient liquidity to meet its obligations. The management remains focused on optimizing its loan portfolio and enhancing operational efficiencies to navigate the evolving market conditions.