Executive Summary

Q4 2024 GAAP net loss was $15.6M, or $0.64 per share, driven primarily by reductions in interest income from non-performing loans and higher non-cash CECL reserves; depreciation and amortization were $2.3M, and the monthly cash dividend was maintained at $0.19 per share .
Credit provisioning increased materially QoQ: CECL reserve charge of $12.9M ($0.53/share) vs. a CECL reserve reversal of $0.7M in Q3 2024 and a $2.6M charge in Q2 2024, reflecting portfolio stress and workout dynamics .
Portfolio KPIs remained relatively stable: weighted average gross coupon ~13.1% and net of leverage ~15.2%, with 96% of loans floating rate; leverage (Debt/Equity) was 1.76x, and NPLs declined to four loans vs. six at 12/31/2023, indicating some progress on workouts even as CECL rose in Q4 .
No formal quantitative guidance was provided; management reiterated liquidity strategy paths (direct listing, IPO, strategic transactions) and noted amendments to financing facilities in early 2025, which may serve as catalysts for investor sentiment as workouts progress .

What Went Well and What Went Wrong

What Went Well

Non‑performing loans reduced to four by year end (approx. 50% decrease vs. 12/31/2023), suggesting traction in workout processes and improved loan performance mix .
Portfolio yields held: weighted average gross interest rate ~13.1% and net of leverage ~15.2% in Q4, supporting baseline earning power once cash interest collections normalize .
Distribution stability: monthly cash dividend of $0.19 per share was maintained in Q4 (consistent through the year), signaling commitment to income continuity .

Management quote: “GAAP Net loss of $15.6MM or $0.64/share... The loss was driven primarily by reductions in interest income as a result of non-performing loans, as well as non-cash charges ($12.9MM incremental CECL reserves)” .

What Went Wrong

Earnings deterioration: Q4 net loss rose sharply to $15.6M vs. $7.8M in Q3 and $7.5M in Q2, with a significant CECL build, underscoring ongoing credit stress and suspended interest collections .
Estimate context unavailable: no Wall Street consensus EPS/revenue estimates found via S&P Global for quarterly comparison, limiting beat/miss framing (S&P Global estimates unavailable).
Revenue disclosure limited in furnished materials: quarter-specific revenue figures were not disclosed in the Q4 8‑K presentation, constraining margin analysis versus prior periods .

Financial Results

Core P&L and Per-Share Metrics

Metric	Q2 2024	Q3 2024	Q4 2024
Net Loss ($USD Millions)	$7.5	$7.8	$15.6
Diluted EPS ($)	$(0.31)	$(0.32)	$(0.64)
Depreciation & Amortization ($USD Millions)	$2.4	$2.3	$2.3
CECL Reserve (Charge)/Reversal ($USD Millions)	$2.6 (charge)	$(0.7) (reversal)	$12.9 (charge)
Monthly Dividend per Share ($)	$0.19	$0.19	$0.19

Notes: Quarter-specific revenue/margin detail was not disclosed in the Q4 8‑K presentation .

Portfolio KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Loan Portfolio Principal Balance ($USD Millions)	$415	$313	$317
Floating Rate Loans (% of Principal)	96%	95%	96%
Weighted Avg Gross Interest Rate (%)	13.02%	13.1%	13.1%
Weighted Avg Net Interest Rate (after leverage) (%)	15.3%	15.0%	15.2%
Leverage (Debt/Equity) (x)	1.75	1.5	1.76
Non-Performing Loans (count)	6	4	4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Monthly Cash Dividend per Share ($)	Q4 2024	$0.19 (maintained)	$0.19 (maintained)	Maintained
Liquidity Strategy (qualitative)	2024–2025	Paths: direct listing, IPO, strategic transactions	Paths reiterated; ongoing facility amendments in early 2025	Maintained/updated facilities

No quantitative revenue/margin/tax guidance ranges were provided in the Q4 materials .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Macro/CRE transaction activity	MREITs defensive; prolonged tightening cycle; difficult deployment	Cap rates expanded; spreads tight; continued defensive posture	Fed cautious; surging Treasury yields; CRE activity depressed	Unchanged/Challenged
Credit reserves and NPLs	CECL charge $2.6M; NPLs decreased to 6 from 8	CECL reversal $0.7M; NPLs down to 4	CECL charge $12.9M; NPLs ~50% lower vs. 12/31/2023; 4 loans at YE	Mixed: lower NPLs, higher Q4 reserves
Portfolio yields/leverage	13.02% gross; 15.3% net; leverage 1.75x	13.1% gross; 15.0% net; leverage 1.5x	13.1% gross; 15.2% net; leverage 1.76x	Stable yields; leverage up QoQ
Liquidity strategy	Direct listing/IPO/strategic transactions outlined	Strategy reiterated	Strategy reiterated; slide on potential future liquidity transactions	Ongoing
Financing facilities	UBS repaid; Goldman facility amendments (2024)	Continued focus on financing flexibility	Further amendments: Goldman extended to 2027; revolver extended to 6/30/2025	Incremental improvement
Distributions	102 consecutive monthly distributions	105 consecutive monthly distributions	108 consecutive monthly distributions	Consistent

Management Commentary

Prepared remarks emphasize earnings drivers: “The loss was driven primarily by reductions in interest income as a result of non-performing loans, as well as non-cash charges ($12.9MM incremental CECL reserves)” .
Dividend reaffirmation: “Maintained our Distribution. Paid (monthly) cash dividend of $0.19/share in Q4 2024” .
Liquidity pathways reiterated: direct listing, IPO, strategic transactions (e.g., WMC‑type merger), or converting into a traditional non‑traded REIT with a share repurchase plan .
Portfolio structure and risk posture: 96% floating rate, weighted average gross interest rate ~13.1% and net ~15.2%; leverage at 1.76x .

Q&A Highlights

No public third-party earnings call transcript was available for Q4 2024; the company furnished a webcast and an investor presentation but did not provide a transcript in filings. As such, Q&A details, analyst themes, and clarifications cannot be assessed from primary sources .

Estimates Context

S&P Global consensus estimates for quarterly EPS and revenue were not available for Terra Property Trust (no active estimates found). Consequently, a beat/miss vs. Wall Street estimates cannot be determined (S&P Global estimates unavailable).
Given the lack of consensus, investors should focus on internal trend comparisons (QoQ and YoY via annual disclosures) and portfolio KPIs to calibrate forward earning power .

Key Takeaways for Investors

Q4 earnings deterioration reflects larger CECL provisioning amid ongoing workout activity; watch the cadence of NPL resolutions and interest accrual resumption to restore net interest income .
Portfolio earning power remains intact on a gross basis (~13.1% coupons; ~15% net of leverage), but suspended interest and reserves are the binding constraints on reported GAAP results; normalization is the core medium‑term driver .
Liquidity strategy remains multi‑path (direct listing/IPO/strategic deals); facility amendments in early 2025 (Goldman extension to 2027; revolver extension) reduce near‑term refinancing risk and support runway for strategic actions .
Distribution maintained at $0.19/month in Q4, consistent with prior quarters; sustainability hinges on workout outcomes and financing costs .
Progress on NPL reduction (four loans by YE) is encouraging; however, the magnitude of Q4 CECL suggests the path may be uneven—monitor case‑specific recovery developments and asset sales .
With no external estimate coverage, internal KPI tracking (NPL counts, CECL changes, coupon trends, leverage) and facility covenant headroom become the primary tools for positioning. Near‑term trading likely reacts to additional workout disclosures and any strategic transaction updates .
Year‑over‑year context: 2024 total revenues fell to $49.7M from $67.9M and net loss improved to $37.2M from $56.9M, reflecting fewer impairments but continued credit costs—reinforces the importance of portfolio re‑risking and resolution pace .

Terra Property Trust, Inc. (TPTA)·Q4 2024 Earnings Summary