Terra Income Fund 6 Reports Decline in Revenues but Improves Net Loss and Reduces Expenses

Company Overview
Terra Income Fund 6, LLC operates under the ticker TFSA on the New York Stock Exchange (NYSE). The company is focused on generating risk-adjusted returns through real estate-related investments, primarily debt instruments. As of March 31, 2025, the company had a total net asset value of $114.8 million.

Financial Highlights
- Total assets: $114,821,822 (Mar 31, 2025) vs. $115,902,944 (Dec 31, 2024)
- Total liabilities: $56,210,279 (Mar 31, 2025) vs. $55,080,526 (Dec 31, 2024)
- Member's capital: $58,611,543 (Mar 31, 2025) vs. $60,822,418 (Dec 31, 2024)

Income Statement Insights
- **Revenues:** - Interest income: $1,879,883 (Q1 2025) vs. $2,164,276 (Q1 2024), a decline of $284,393
- Total revenues: $1,890,383 (Q1 2025) vs. $2,180,608 (Q1 2024), a decrease of $290,225
- **Expenses:** - Total operating expenses: $1,344,105 (Q1 2025) vs. $1,823,712 (Q1 2024), representing a decrease of $479,607
- Provision for credit losses: $769,936 (Q1 2025) vs. $824,348 (Q1 2024), down by $54,412
- **Net loss:** - $2,275,238 for Q1 2025, an improvement compared to a net loss of $3,058,870 for Q1 2024, showing a reduction of $783,632

Positive Aspects
- Significant reduction in net loss compared to the prior year.
- Decrease in operating expenses, primarily driven by lower asset management and reimbursement fees to Terra REIT.

Negative Aspects
- Decline in interest income is a concern as it reflects a decrease in the loan portfolio's average principal balance.
- Continued losses from equity interests in unconsolidated investments, down to $807,953 (Q1 2025) from $1,187,179 (Q1 2024).

Capital Management
- Cash and cash equivalents rose to $4,164,931 (Mar 31, 2025) from $3,008,449 (Dec 31, 2024). - Total principal balance of loans held for investment increased to $19,449,510 (Mar 31, 2025) from $18,575,895 (Dec 31, 2024).

Loan Performance
- Loans held for investment net of allowance for credit losses:
- Mar 31, 2025: $19,449,510
- Dec 31, 2024: $18,575,895
- Credit losses allowance from non-performing loans increased to $16,479,141 from $15,523,156.

Future Outlook
- Terra LLC's management remains cautious about market conditions affecting future performance, particularly in real estate.
- Efforts to further optimize liquidity and manage risks will be essential given the economic headwinds.