Fri, May 9, 9:01 PM (45 days ago)
**Terra Income Fund 6, LLC (TFSA) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1.89M (Q1 2024: $2.18M), a decrease of $0.29M. - **Net Loss:** $2.28M (Q1 2024: $3.06M), an improvement of $0.78M. - **Operating Income:** $0.55M (Q1 2024: $0.36M), an increase of $0.18M. - **Interest Income:** $1.88M (Q1 2024: $2.16M), a decrease of $0.28M. - **Operating Expenses:** $1.34M (Q1 2024: $1.82M), a decrease of $0.48M. - **Profit Margins:** Operating margin improved to 28.8% (Q1 2024: 16.4%). - **Cash Flow:** Net cash used in operating activities was $0.28M (Q1 2024: $0.03M outflow). - **Earnings Changes:** Net loss improved by $0.78M due to lower operating expenses and interest expenses. **Key Metrics & Trends:** - **Loan Portfolio:** Total loans of $46.66M (Q1 2024: $45.90M), with a weighted-average coupon rate of 19.33%. - **Equity Investments:** $35.48M (Q1 2024: $36.29M) in two joint ventures. - **Debt:** $36.87M in unsecured notes payable (Q1 2024: $36.52M) and $18.86M obligation under participation agreement (Q1 2024: $18.17M). - **Liquidity:** $4.16M in cash and cash equivalents (Q1 2024: $3.01M). **Uncertainties & Future Operations:** - **Economic Conditions:** Sensitivity to economic downturns, interest rates, and real estate market fluctuations. - **Credit Risk:** Exposure to borrower defaults and decreased recovery rates. - **Leverage:** Use of financial leverage to enhance returns on equity. - **Future Financing:** Intention to refinance or repay $38.38M in senior notes due in 2026. - **Participation Agreement:** $18.7M obligation maturing within the next 12 months. **Management's Discussion:** - **Operating Results:** Improved net loss due to lower operating expenses and interest expenses. - **Financial Condition:** Primarily generates cash from interest, dividends, and fees; uses cash for targeted assets and expenses. - **Critical Accounting Policies:** Use of estimates for allowance for credit losses and fair value measurements. **Conclusion:** Terra Income Fund 6, LLC showed improved financial performance in Q1 2025, with a reduced net loss and increased operating income. The company faces uncertainties related to economic conditions, credit risk, and future financing. Management continues to focus on generating stable income and enhancing returns on equity.