Terra Property Trust, Inc. reported a net loss of $9.2 million for the three months ended June 30, 2025, compared to a loss of $7.5 million for the same period in 2024. For the six months ended June 30, 2025, the company recorded a net loss of $10.5 million, an improvement from a loss of $13.7 million in the prior year. Total revenues for the second quarter of 2025 were $8.6 million, down from $11.2 million in the same quarter of 2024, primarily due to a decrease in interest income, which fell to $6.6 million from $8.4 million year-over-year. The decline in revenues was attributed to a reduced weighted average principal balance of performing loans.
In terms of operational changes, Terra Property Trust's total assets decreased to $459.3 million as of June 30, 2025, down from $542.8 million at the end of 2024. The company's loans held for investment also saw a significant reduction, dropping to $175.1 million from $233.6 million. The decrease in assets and loans was influenced by repayments and the sale of real estate assets, including an industrial building sold for $13.8 million, which resulted in a net loss on sale of $2.1 million. The company also recorded an impairment charge of $3.4 million related to two industrial buildings classified as held for sale.
Terra Property Trust's equity interest in unconsolidated investments remained stable, with a carrying value of $107.2 million as of June 30, 2025, compared to $106.8 million at the end of 2024. The company reported income from equity interests of $2.3 million for the second quarter of 2025, an increase from $1.7 million in the same quarter of the previous year. This growth was primarily driven by improved performance from its equity interest in the Mavik Real Estate Special Opportunities Fund.
Looking ahead, Terra Property Trust anticipates maintaining sufficient liquidity to fund approximately $9.4 million in unfunded commitments over the next twelve months. The company plans to manage its obligations under participation agreements, which totaled $19.8 million as of June 30, 2025, through repayments from corresponding investments. The company is also exploring various liquidity transactions, including a potential direct listing of its Class A Common Stock on a national exchange, although no assurances can be made regarding the success of these initiatives.
About Terra Property Trust, Inc.
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