Terra Property Trust, Inc. reported significant financial changes in its third quarter and nine-month results for 2024 compared to the same periods in 2023. As of September 30, 2024, total assets decreased to $546.8 million from $670.7 million at the end of 2023. The company’s cash and cash equivalents increased to $21.2 million, up from $10.7 million, while loans held for investment saw a substantial decline to $243.5 million from $417.9 million.
Total revenues for Q3 2024 were $12.2 million, down from $17.1 million in Q3 2023. For the nine months ended September 30, 2024, total revenues were $38.4 million, compared to $52.9 million in the prior year. Interest income also fell sharply, with Q3 2024 reporting $9.4 million versus $12.7 million in Q3 2023, and a nine-month total of $30.0 million compared to $44.2 million in 2023. This decline was attributed to a decrease in the weighted average principal balance of performing loans and an increase in suspended interest income accrual on non-performing loans.
Despite the revenue decline, Terra Property Trust reported an operating income of $6.6 million for Q3 2024, a significant improvement from an operating loss of $20.7 million in Q3 2023. The net loss for Q3 2024 was $7.8 million, an improvement from a net loss of $17.5 million in the same quarter of the previous year. For the nine-month period, the net loss was $21.5 million, down from $36.2 million in 2023.
The company’s total liabilities decreased to $340.6 million from $429.1 million at the end of 2023, with unsecured notes payable slightly increasing to $119.9 million. The accumulated deficit grew to $(238.5 million) from $(203.0 million) at the end of 2023, while total equity decreased to $206.2 million from $241.7 million.
Strategically, Terra Property Trust has been focusing on managing its loan portfolio, which included a significant repayment of a $65 million senior loan in August 2024, resulting in a loss of $5.6 million. The company also reported a commitment to fund up to $50 million for a limited partnership interest in the Mavik Real Estate Special Opportunities Fund, LP.
Overall, while Terra Property Trust faced challenges with revenue and net losses, it demonstrated improved operating income and a strategic focus on managing its loan portfolio and investments.
About Terra Property Trust, Inc.
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