Terra Income Fund 6, LLC reported its financial results for the third quarter and nine months ended September 30, 2024, revealing significant changes in its financial position compared to the previous fiscal period. As of September 30, 2024, the company had total assets of $118.1 million, a decrease from $124.3 million at the end of 2023. Total liabilities increased slightly to $51.6 million from $50.9 million, while total equity fell to $66.5 million from $73.4 million.

The company’s interest income for the three months ended September 30, 2024, was $1.9 million, down from $2.3 million in the same period in 2023. For the nine months, interest income decreased to $5.8 million from $7.8 million year-over-year. Asset management and servicing fees also declined, totaling $238.7 thousand for the third quarter compared to $408.7 thousand in 2023, and $906.4 thousand for the nine months, down from $1.3 million.

Operating income showed improvement, reaching $726.5 thousand for the third quarter, a turnaround from a loss of $(379.9) thousand in the same period last year. However, the net loss for the third quarter was $(1.9) million, an improvement from $(2.4) million in 2023. For the nine months, the net loss increased significantly to $(6.9) million from $(1.4) million in the prior year.

The company’s loan portfolio saw substantial changes, with loans held for investment net of allowance for credit losses dropping to $21.5 million from $60.5 million at the beginning of the year. Loans held for investment through participation interests also decreased to $16.2 million from $17.9 million. The total carrying value of loans was reported at $37.7 million, down from $78.3 million at the end of 2023.

The provision for credit losses for the third quarter was $524.5 thousand, significantly lower than $1.7 million in the same period last year. The allowance for credit losses increased by $0.7 million due to the adoption of ASU 2016-13, which requires recognition of expected credit losses.

In terms of cash flow, the company reported net cash used in operating activities of $(673.2) thousand for the nine months ended September 30, 2024, compared to cash provided of $1.9 million in the same period in 2023. However, net cash provided by investing activities was $4.1 million, down from $9.7 million in the previous year.

Overall, Terra Income Fund 6, LLC's financial performance reflects a challenging environment, with declines in revenue and net losses, despite some operational improvements and strategic adjustments in its loan portfolio.