Terra Property Trust, Inc. Files Q1 2024 10-Q Report

TL;DR

<b>Terra Property Trust, Inc. has submitted its Q1 2024 10-Q filing, detailing financial performance and operational status as of March 31, 2024.</b>

AI Summary

Terra Property Trust, Inc. (TPTA) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. Terra Property Trust, Inc. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31st. The report was filed on May 13, 2024. The company's principal business address is 805 Third Avenue, New York, NY 10022.

Why It Matters

For investors and stakeholders tracking Terra Property Trust, Inc., this filing contains several important signals. This 10-Q filing provides investors with a quarterly update on Terra Property Trust's financial health, including its assets, liabilities, and equity, allowing for assessment of performance trends. The detailed financial information in this report is crucial for understanding the company's current operational standing and its ability to manage its real estate investment portfolio.

Risk Assessment

Risk Level: low — Terra Property Trust, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Monitor future filings for trends in loan portfolio performance and any changes in equity structure.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly filing)
• 2024-05-13 — Filing Date (Date the report was submitted)
• 12/31 — Fiscal Year End (Annual fiscal year closing date)
• 6798 — SIC Code (Standard Industrial Classification for Real Estate Investment Trusts)

Key Players & Entities

• Terra Property Trust, Inc. (company) — Filer
• 2024-03-31 (date) — Period of Report
• 2024-05-13 (date) — Filed as of Date
• 805 THIRD AVENUE (address) — Business Address
• New York (location) — Business Address City
• 10022 (postal_code) — Business Address Zip
• 212-754-5100 (phone_number) — Business Phone
• 001-40496 (other) — SEC File Number

FAQ

Industry Context

Terra Property Trust, Inc. operates within the Real Estate Investment Trusts (REITs) sector, focusing on investments in real estate-related assets.

Regulatory Implications

The company is subject to SEC regulations for public companies, including the requirement to file quarterly reports (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Analyze the company's loan portfolio and any related party transactions disclosed.
3. Compare Q1 2024 performance against previous quarters and the same period in 2023.

Key Dates

• 2024-05-13: 10-Q Filing — Submission of the quarterly report for the period ending March 31, 2024.
• 2024-03-31: Quarter End Date — The reporting period for the 10-Q filing.

Year-Over-Year Comparison

This filing is a standard quarterly report (10-Q) and does not provide comparative data within the header information itself; such comparisons would be found within the body of the report.

Key Financial Figures

• $0.01 — nge Act of 1934: Class B Common Stock, $0.01 par value per share Indicate by check

Filing Documents

• tpt-20240331.htm (10-Q) — 1942KB
• tpt-amendmenttomanagementa.htm (EX-10.1) — 39KB
• tmpiidraft5thamendmentex102.htm (EX-10.2) — 113KB
• exhibit103continuingguaran.htm (EX-10.3) — 91KB
• gs_mavik-firstamendmenttom.htm (EX-10.4) — 61KB
• ubs-terraxamendmentno1topr.htm (EX-10.5) — 24KB
• ubs-terraxwaiverletterex106.htm (EX-10.6) — 21KB
• tpt33124ex311.htm (EX-31.1) — 14KB
• tpt33124ex312.htm (EX-31.2) — 13KB
• tpt33124ex32.htm (EX-32) — 12KB
• image_0.jpg (GRAPHIC) — 28KB
• 0001674356-24-000019.txt (&nbsp;) — 11636KB
• tpt-20240331.xsd (EX-101.SCH) — 63KB
• tpt-20240331_cal.xml (EX-101.CAL) — 101KB
• tpt-20240331_def.xml (EX-101.DEF) — 494KB
• tpt-20240331_lab.xml (EX-101.LAB) — 674KB
• tpt-20240331_pre.xml (EX-101.PRE) — 641KB
• tpt-20240331_htm.xml (XML) — 2132KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements: Consolidated Balance Sheets as of March 31, 202 4 (unaudited) and December 31, 202 3 2 Consolidated Statements of Operations and Comprehensive (Loss) Income for the three months ended March 31, 202 4 and 202 3 (unaudited) 3 Consolidated Statements of Changes in Equity for the three months ended March 31, 202 4 and 202 3 (unaudited) 4 Consolidated Statements of Cash Flows for the three months ended March 31, 202 4 and 202 3 (unaudited) 5

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 50

Controls and Procedures

Item 4. Controls and Procedures 51

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 51

Risk Factors

Item 1A. Risk Factors 52

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 52

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 51

Other Information

Item 5. Other Information 52

Exhibits

Item 6. Exhibits 52

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Terra Property Trust, Inc. Consolidated Balance Sheets March 31, 2024 December 31, 2023 (Unaudited) Assets Cash and cash equivalents $ 17,914,875 $ 10,674,475 Restricted cash 4,097,364 3,954,986 Cash held in escrow by lender 4,541,731 4,907,316 Marketable securities 3,174,690 4,961,879 Loans held for investment, net of allowance for credit losses of $ 58,055,856 and $ 56,749,498 377,169,978 417,913,773 Loans held for investment acquired through participation, net of allowance for credit losses of $ 687,939 and $ 226,527 38,089,285 38,558,485 Equity investment in unconsolidated investments 42,525,905 37,171,326 Real estate owned, net ( Note 5 ) Land, building and building improvements, net 125,948,852 126,724,333 Lease intangible assets, net 8,534,578 9,869,364 Interest receivable 8,014,178 6,537,368 Due from related parties 1,092,348 655,263 Other assets 9,090,039 8,811,583 Total assets $ 640,193,823 $ 670,740,151 Liabilities and Equity Liabilities: Unsecured notes payable, net $ 118,872,834 $ 118,380,897 Secured financing agreements, net 258,749,238 290,525,313 Obligations under participation agreements ( Note 7 ) 15,137,755 — Interest reserve and other deposits held on investments 4,097,364 3,954,986 Lease intangible liabilities, net ( Note 5 ) 6,014,031 6,838,875 Due to Manager ( Note 7 ) 2,381,620 4,183,293 Interest payable 1,408,314 1,575,463 Accounts payable and accrued expenses 1,654,112 2,405,749 Unearned income 455,497 314,260 Other liabilities 935,168 907,507 Total liabilities 409,705,933 429,086,343 Commitments and contingencies ( Note 9 ) Equity: Preferred stock, $ 0.01 par value, 50,000,000 shares authorized and none issued — — Class A Common Stock, $ 0.01 par value, 450,000,000 shares authorized and no shares issued, as of both March 31, 2024 and December 31, 2023 — — Class B Common Stock, $ 0.01 par value, 450,000,000 shares authorized and 24,336,424 and 24,336,033 shares

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) March 31, 2024 Note 1. Business Terra Property Trust, Inc. ( and, together with its consolidated subsidiaries, the "Company" or "Terra Property Trust") is a real estate investment trust ("REIT") that originates, invests in and manages a diverse portfolio of real estate and real estate-related assets. The Company was incorporated under the Maryland General Corporation Law on December 31, 2015. The Company focuses primarily on commercial real estate credit investments, including first mortgage loans, subordinated loans (including B-notes, mezzanine and preferred equity) and credit facilities throughout the United States. The Company's loans finance the acquisition, development or recapitalization of high-quality commercial real estate in the United States . The Company focuses on middle market loans in the approximately $ 10 million to $ 50 million range, which in the Company's experience have been subject to less competition, offer higher risk-adjusted returns than larger loans with similar risk metrics and facilitate portfolio diversification . The Company may also make strategic real estate equity and non-real estate-related investments that align with its investment objectives and criteria . On January 1, 2016, Terra Secured Income Fund 5, LLC ("Terra Fund 5"), the Company's then parent, contributed its consolidated portfolio of net assets to the Company pursuant to a contribution agreement in exchange for shares of the Company's common stock. Upon receipt of the contribution of the consolidated portfolio of net assets from Terra Fund 5, the Company commenced its operations on January 1, 2016. On March 2, 2020, the Company engaged in a series of transactions pursuant to which the Company issued an aggregate of 4,574,470.35 shares of its common stock in exchange for the settlement of an aggregate of $ 49.8 million of participation interests in loans held by the Company, cash of $ 25.5 million and other w

View Full Filing

View this 10-Q filing on SEC EDGAR