Terra Property Trust Files Q2 2025 10-Q

TL;DR

**Terra Property Trust (TPT) Q2 2025 10-Q filed. Shows loan portfolio and related party data. TPT is a REIT.**

AI Summary

Terra Property Trust, Inc. filed its 10-Q for the period ending June 30, 2025. The filing details financial information for the second quarter of 2025, including data on loans held for investment and related party transactions. The company's fiscal year ends on December 31st.

Why It Matters

This filing provides investors with an update on Terra Property Trust's financial health and operational activities for the second quarter of 2025, impacting investment decisions.

Risk Assessment

Risk Level: medium — As a real estate investment trust, Terra Property Trust is subject to market fluctuations and interest rate risks inherent in the real estate sector.

Key Numbers

• 2025 Q2 — Reporting Period (Financial results for the second quarter of 2025 are detailed.)
• 12/31 — Fiscal Year End (Indicates the end of the company's annual financial reporting cycle.)

Key Players & Entities

• Terra Property Trust, Inc. (company) — Filer of the 10-Q
• 20250630 (date) — End of the reporting period
• 20250818 (date) — Filing date
• 805 THIRD AVENUE (address) — Company's business and mailing address
• 212-754-5100 (phone_number) — Company's business phone number

FAQ

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-20250630.htm (10-Q) — 2219KB
• exhibit101tpt-secondamendm.htm (EX-10.1) — 22KB
• tpt63025ex311.htm (EX-31.1) — 13KB
• tpt63025ex312.htm (EX-31.2) — 13KB
• tpt63025ex32.htm (EX-32) — 11KB
• 0001674356-25-000025.txt ( ) — 12188KB
• tpt-20250630.xsd (EX-101.SCH) — 64KB
• tpt-20250630_cal.xml (EX-101.CAL) — 97KB
• tpt-20250630_def.xml (EX-101.DEF) — 490KB
• tpt-20250630_lab.xml (EX-101.LAB) — 764KB
• tpt-20250630_pre.xml (EX-101.PRE) — 666KB
• tpt-20250630_htm.xml (XML) — 2381KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements: Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024 2 Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2025 and 2024 (unaudited) 3 Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2025 and 2024 (unaudited) 4 Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (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 36

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 52

Controls and Procedures

Item 4. Controls and Procedures 53

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 54

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 54

Other Information

Item 5. Other Information 54

Exhibits

Item 6. Exhibits 54

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Terra Property Trust, Inc. Consolidated Balance Sheets June 30, 2025 December 31, 2024 (Unaudited) Assets Cash and cash equivalents $ 5,928,733 $ 8,578,456 Restricted cash 1,238,731 2,937,959 Cash held in escrow 25,576,658 7,448,611 Available-for-sale debt securities 1,191,299 963,178 Real estate assets held for sale 27,037,500 — Loans held for investment, net of allowance for credit losses of $ 49,564,614 and $ 45,381,465 175,053,810 233,571,416 Loans held for investment acquired through participation, net of allowance for credit losses of $ 152,153 and $ 759,991 23,116,267 41,077,729 Equity interest in unconsolidated investments 107,171,843 106,816,146 Real estate owned, net ( Note 5 ) Land, building and building improvements, net 75,706,644 123,597,789 Lease intangible assets, net 3,844,085 5,641,030 Interest receivable 6,820,077 5,440,620 Due from related parties 1,217,344 859,267 Other assets 5,446,846 5,886,858 Total assets $ 459,349,837 $ 542,819,059 Liabilities and Equity Liabilities: Unsecured notes payable, net $ 121,526,268 $ 120,424,100 Secured financing agreements, net 138,649,716 205,718,782 Obligations under participation agreements ( Note 7 ) 19,799,722 18,177,106 Interest reserve and other deposits held on investments 1,238,731 2,937,959 Lease intangible liabilities, net ( Note 5 ) 2,381,355 3,902,416 Due to Manager ( Note 7 ) 1,133,336 1,597,552 Interest payable 1,301,829 1,350,384 Accounts payable and accrued expenses 3,931,332 2,189,486 Unearned income 277,706 127,485 Other liabilities 583,760 667,723 Total liabilities 290,823,755 357,092,993 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 June 30, 2025 and December 31, 2024 — — Class B Common Stock, $ 0.01 par value, 450,000,000 shar

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) June 30, 2025 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 wo

View Full Filing

View this 10-Q filing on SEC EDGAR