Terra Property Trust, Inc. 8-K

What Happened

• Terra Property Trust, Inc. furnished preliminary financial and operating information on January 9, 2026 (filed on Form 8‑K Jan 12, 2026) for the quarter and year ended December 31, 2025. The company reported a substantial reduction in outstanding debt and provided estimated leverage ratios, but noted its consolidated financial statements for the period are not yet available and these figures are unaudited and subject to change.

Key Details

• Outstanding debt reduced from $439 million as of December 31, 2022 to estimated $186 million as of December 31, 2025.
• In November 2025 the company had $28.9 million in promissory notes outstanding; on November 7, 2025 the borrower refinanced a multifamily loan and Terra received $39.0 million, which was used to fully repay those promissory notes.
• Cash and cash equivalents were $33.0 million as of December 31, 2025 (preliminary).
• Estimated debt-to-equity ratio as of December 31, 2025: 1.15–1.25x; estimated net debt-to-equity: 0.95–1.05x. Figures are preliminary, unaudited and may change pending period‑end close and audit.

Why It Matters

• For investors tracking Terra’s quarterly results and balance sheet strength, the company’s announced debt reduction and cash position indicate a move to more conservative leverage amid a higher interest rate environment.
• The estimates are preliminary and not audited—final consolidated financial statements may differ materially—so investors should view these numbers as interim guidance until the audited results are released.
• The filing was furnished under Regulation FD (not “filed” for certain legal incorporation purposes), meaning the information was disclosed but the company disclaims incorporation by reference into other filings unless explicitly stated.