Terra Property Trust Outlines Plans to Repay Senior Notes

The company highlights $200 million in debt repayments as it navigates high-rate commercial real estate landscape.

October 17, 2025

Debt Repayment Plans Take Center Stage

Terra Property Trust is moving ahead with plans to reduce its outstanding debt. The company intends to repay its 6.00% Senior Notes due June 30, 2026, and will also facilitate the repayment of 7.00% Senior Notes issued by its subsidiary, Terra Income Fund 6, LLC, due March 31, 2026.

To get there, the company is tapping into several financing channels—loan repayments, asset sales, capital distributions, and both debt and equity capital sources. Management discussed this strategy in recent conversations with potential investors, highlighting the steps taken to improve financial stability in a challenging market.

The commercial real estate sector continues to face pressure from elevated interest rates. In response, Terra has adjusted its approach. Over the past three fiscal years ending September 30, 2025, the company repaid around $200 million across various financing lines. That capital came from across the balance sheet, and it’s part of a broader shift toward more conservative leverage compared to others in the mortgage REIT space.

Focus on Financial Flexibility

This steady pullback on debt signals a deliberate effort to manage risk, increase flexibility, and keep the business prepared for changing conditions. The company’s focus isn’t just on cutting obligations—it’s on doing it in a way that maintains operational strength.

The updates shared through this disclosure reflect a clear focus on balance sheet discipline. As Terra works to stay agile in today’s interest rate environment, its capital strategy continues to lean on diversified sources and targeted repayment plans. Investors following the space should take note: Terra’s approach is measured, strategic, and clearly aimed at long-term positioning.