Terra Income Fund 6, LLC SEC 10-Q Report

Terra Income Fund 6, LLC, a company specializing in real estate-related investments, has released its Form 10-Q report for the second quarter of 2025. The report provides a detailed overview of the company's financial performance and operational highlights for the three and six months ended June 30, 2025. This summary highlights the key financial metrics and business activities that have shaped the company's recent performance.

Financial Highlights

Total Revenue: Terra Income Fund 6, LLC reported total revenue of $1.86 million for the three months ended June 30, 2025, reflecting an increase of $0.09 million compared to the same period in 2024. This increase was primarily due to an increase in the weighted average principal balance of the promissory note receivable. For the six months ended June 30, 2025, total revenue was $3.75 million, a decrease of $0.20 million compared to the same period in 2024, primarily due to a decrease in the weighted average principal balance of gross loans.

Operating Income: The company reported operating income of $0.51 million for the three months ended June 30, 2025, a decrease of $0.25 million compared to the same period in 2024. This decline was mainly due to an increased provision for credit losses. For the six months ended June 30, 2025, operating income was $1.06 million, a decrease of $0.06 million compared to the same period in 2024, reflecting a decrease in operating expenses.

Net Loss: Terra Income Fund 6, LLC reported a net loss of $(2.23) million for the three months ended June 30, 2025, an increase in loss by $0.25 million compared to the same period in 2024. This was primarily due to increased interest expense from obligations under a participation agreement. For the six months ended June 30, 2025, the net loss was $(4.51) million, a decrease in loss by $0.53 million compared to the same period in 2024, reflecting improved performance in equity interest in unconsolidated investments.

Business Highlights

Portfolio Summary: Terra LLC's portfolio consists of three loan investments secured by office, mixed-use, and multifamily properties. The largest loan investment represents approximately 87.3% of the principal balance of the total net loan investments.

Geographical Performance: The loan portfolio is geographically concentrated in California and New York, with California representing 66.9% and New York 33.1% of the total carrying value as of June 30, 2025.

Equity Interest in Unconsolidated Investments: Terra LLC holds equity interests in two joint ventures that own real estate properties, with a total carrying value of $34.7 million as of June 30, 2025.

Promissory Note Receivable: Terra LLC has a revolving promissory note receivable with Terra REIT, with an outstanding amount of $47.2 million as of June 30, 2025. The note bears interest at the Prime Rate and matures on March 31, 2027.

Future Outlook: Terra LLC plans to continue originating, investing in, and managing a diverse portfolio of real estate-related investments to generate stable income streams. The company may also make strategic non-real estate-related investments that align with its investment objectives.

Cost Sharing Agreement: Terra LLC has a cost-sharing agreement with Terra REIT, effective October 1, 2022, under which it reimburses Terra REIT for its allocable portion of management and transaction fees and operating expenses.

Impact of Economic Conditions: Terra LLC's portfolio is concentrated in a limited number of industries and borrowers, making it susceptible to downturns in specific sectors. The company monitors economic conditions closely to mitigate potential impacts on its financial position and results of operations.

SEC Filing: Terra Income Fund 6, LLC [ TFSA ] - 10-Q - Aug. 18, 2025