Terra Income Fund 6, LLC Files 2023 Annual Report on Form 10-K

TL;DR

<b>Terra Income Fund 6, LLC has filed its annual report for the fiscal year ending December 31, 2023.</b>

AI Summary

Terra Income Fund 6, LLC (TFSA) filed a Annual Report (10-K) with the SEC on March 15, 2024. Terra Income Fund 6, LLC filed its 2023 Form 10-K on March 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Maryland (MD). Its business and mailing address is 205 West 28th Street, 12th Floor, New York, NY 10001. The SIC code for the company is 6798 (Real Estate Investment Trusts).

Why It Matters

For investors and stakeholders tracking Terra Income Fund 6, LLC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial performance, operations, and risk factors for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's financial health, strategic direction, and potential risks.

Risk Assessment

Risk Level: medium — Terra Income Fund 6, LLC shows moderate risk based on this filing. The company operates in the real estate investment trust sector, which can be subject to market fluctuations and interest rate risks, as indicated by the various loan and interest rate data points in the filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand the company's exposure to market and interest rate changes.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-15 — Filing Date (Date of submission)
• 000-55429 — SEC File Number (SEC registration number)
• 24755899 — Film Number (SEC processing number)

Key Players & Entities

• Terra Income Fund 6, LLC (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-15 (date) — Filing date
• 0001577134 (company) — Central Index Key
• 6798 (industry_code) — Standard Industrial Classification
• MD (state) — State of Incorporation
• 212-753-5100 (phone_number) — Business phone number
• Terra Income Fund 6, Inc. (company) — Former company name

FAQ

Industry Context

The company operates as a Real Estate Investment Trust (REIT), a sector focused on owning, operating, or financing income-producing real estate.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material financial and operational information.

What Investors Should Do

1. Analyze the company's financial statements for the fiscal year ended December 31, 2023.
2. Review the business address and contact information provided in the filing.
3. Identify any disclosed risk factors related to the real estate investment trust industry.

Year-Over-Year Comparison

This is the initial 10-K filing for the period ending December 31, 2023, as indicated by the filing date of March 15, 2024.

Key Financial Figures

• $34.8 million — On February 10, 2021, Terra BDC issued $34.8 million in aggregate principal amount of 7.00%
• $3.6 million — ed the option to purchase an additional $3.6 million of the notes. Interest on the notes is
• $0.001 — r any shares of common stock, par value $0.001 per share, of Terra BDC ("Terra BDC Com
• $0.01 — ignated Class B Common Stock, par value $0.01 per share, of Terra REIT ("Class B Comm
• $14.38 — lder would otherwise be entitled by (y) $14.38. Pursuant to the terms of the transact
• $25.0 million — e for a delayed draw term loan of up to $25.0 million. Additionally, the investment advisory
• $11.9 billion — derlying this capital was approximately $11.9 billion based on appraised values as of the clo
• $3 million — our investments generally range between $3 million and $50 million, our investments ultima
• $50 m — generally range between $3 million and $50 million, our investments ultimately are a

Filing Documents

• tfsa-20231231.htm (10-K) — 1791KB
• tif6123123exhibit311.htm (EX-31.1) — 11KB
• tif6123123exhibit312.htm (EX-31.2) — 11KB
• tif6123123exhibit32.htm (EX-32.1) — 8KB
• 0001577134-24-000009.txt (&nbsp;) — 10319KB
• tfsa-20231231.xsd (EX-101.SCH) — 63KB
• tfsa-20231231_cal.xml (EX-101.CAL) — 108KB
• tfsa-20231231_def.xml (EX-101.DEF) — 422KB
• tfsa-20231231_lab.xml (EX-101.LAB) — 682KB
• tfsa-20231231_pre.xml (EX-101.PRE) — 560KB
• tfsa-20231231_htm.xml (XML) — 1813KB

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 21

Cybersecurity

Item 1C. Cybersecurity 21

Properties

Item 2. Properties 21

Legal Proceedings

Item 3. Legal Proceedings 21

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 22 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22

[Reserved]

Item 6. [Reserved] 22

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 31

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 32

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 32

Controls and Procedures

Item 9A. Controls and Procedures 32

Other Information

Item 9B. Other Information 33

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 33 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 33

Executive Compensation

Item 11. Executive Compensation 33

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 33

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 33

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 34 PART IV

Exhibits and financial Statement Schedules

Item 15. Exhibits and financial Statement Schedules 35

Form 10-K Summary

Item 16. Form 10-K Summary 36

Signatures

Signatures 37 i SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Some of the statements in this Annual Report on Form 10-K of Terra Income Fund 6, LLC ("Terra LLC"), a wholly owned subsidiary of Terra Property Trust, Inc. ("Terra REIT") and the successor of Terra Income Fund 6, Inc. ("Terra BDC"), constitute forward-looking statements because they relate to future events or our future performance or financial condition. On October 1, 2022, pursuant to an Agreement and Plan of Merger, dated as of May 2, 2022, Terra BDC merged with and into Terra LLC, with Terra LLC continuing as the surviving entity of the merger (the "Merger"). In this report, as context requires, "we," "us" and "our" refer to Terra BDC prior to the Merger and its successor, Terra LLC, after the Merger. The forward-looking statements contained in this Annual Report on Form 10-K may include, but are not limited to, statements as to: our expected financial performance and operating results; our ability to achieve the expected synergies, cost savings and other benefits from the Merger; risks associated with achieving expected synergies, cost savings and other benefits from the Merger; the availability of attractive risk-adjusted investment opportunities in our target asset class and other real estate-related investments that satisfy our objectives and strategies; the origination or acquisition of our targeted assets, including the timing of originations or acquisitions; volatility in our industry, interest rates and spreads, the debt or equity markets, the general economy or the real estate market specifically, whether the results of market events or otherwise; changes in our investment objectives and business strategy; the availability of strategic non-real estate investment opportunities; the availability of financing on acceptable terms or at all; the performance and financial condition of our borrowers; changes in interest rates and the market value of our assets; borrower defaul

Business

Item 1. Business. Overview Terra Income Fund 6, LLC ("Terra LLC") was formed as a Delaware limited liability company on April 29, 2022 as a wholly owned subsidiary of Terra Property Trust, Inc. ("Terra REIT"). On October 1, 2022, pursuant to an Agreement and Plan of Merger, dated as of May 2, 2022 (as amended, the "Merger Agreement"), Terra Income Fund 6, Inc. ("Terra BDC") merged with and into Terra LLC, with Terra LLC continuing as the surviving entity of the merger (the "Merger"). Subsequent to the Merger, Terra LLC became the successor of Terra BDC and assumed all of Terra BDC's rights and obligations. The former members of Terra BDC's board of directors (the "Terra BDC Board") joined the board of directors of Terra REIT. Terra LLC does not have a board of directors and Terra REIT is the sole and managing member of Terra LLC. As context requires, "we," "us" and "our" refer to Terra BDC prior to the Merger and its successor, Terra LLC, after the Merger. Terra BDC was a Maryland corporation, formed on May 15, 2013 and commenced operations on June 24, 2015. Terra BDC elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act") until it withdrew its election on September 29, 2022. Terra BDC was an externally managed, non-diversified, closed-end management investment company that initially elected to be taxed for federal income tax purposes as a regulated investment company ("RIC") until December 31, 2018, when it changed its tax election from taxation as a RIC to taxation as a real estate investment trust ("REIT"). Terra BDC elected to be taxed as a REIT under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), commencing with its short taxable year beginning October 1, 2018 and ending December 31, 2018. Concurrent with the change in its tax election, Terra BDC changed its fiscal year end from September 30 to December 31 to satisfy the REIT requirements under the Co

View Full Filing

View this 10-K filing on SEC EDGAR