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Terra Income Fund 6 LLC 7.00% Notes due 2026 (TFSA) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's financial performance, including a net loss of $12.5 million for the year, compared to a net loss of $5.6 million in the previous year. The increase in net loss is attributed to a higher provision for credit losses and increased interest expense related to obligations under participation agreements.
Interest income decreased to $7.6 million from $10.2 million in the prior year, primarily due to a decrease in the weighted average principal balance of gross loans.
The company reported a provision for credit losses of $6.0 million, primarily due to a decline in the estimated recoverable amount on a non-performing subordinated loan.
Operating expenses totaled $9.1 million, slightly down from $9.3 million in the previous year, with asset management and servicing fees contributing $1.1 million.
Terra Income Fund 6 LLC's loan portfolio, as of December 31, 2024, consisted of three loans with a total carrying value of $30.4 million, primarily in mixed-use, office, and multifamily properties.
The company also holds equity interests in two joint ventures, with a total carrying value of $36.3 million as of December 31, 2024.
Cash used in operating activities was $0.2 million, while cash used in investing activities was $3.0 million, primarily due to funding under a promissory note receivable.
Cash provided by financing activities was $2.9 million, mainly due to proceeds from obligations under participation agreements.
The filing includes a discussion of the company's business strategy, focusing on originating and managing a diverse portfolio of real estate-related investments to generate stable income streams.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Terra Income Fund 6 LLC 7.00% Notes due 2026 annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.