MeritValue

Terra Property Trust, Inc.

TPTSdata completeness 88%7 fiscal years on file
The thesis, from the filings

Terra Property Trust, Inc. earns about -14% on equity, but has diluted owners by 25% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$46.7M1$56.6M2$67.9M3$49.7M4$35.4M4
Net income−$12.4M5−$6.95M6−$56.9M7−$37.2M8−$27.8M8
Operating cash flow$4.11M9$403,76810$8.61M11−$3.26M12$1.91M12
Capital expenditure—$013$132,50614$014—
Free cash flow (derived)—$403,76810$8.48M11−$3.26M12—
Total debt$294M15$438.8M16$408.9M17$326.1M18$178.9M19
Cash & equivalents$35.8M20$28.6M21$10.7M22$8.58M23$33.2M23
Diluted shares19.5M20.7M24.3M24.3M24.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$60.18
your share of equity
Profit it earned you last year
−$11.43
Free cash flow it threw off
—
Debt you’d be carrying
$73.49

10 shares is a claim on $60.18 of net worth that earned you −$11.43 last year, against $73.49 of debt.

iii. Is this a good business?
Moat signal · return on equity
-14% avg · 5y
FY21 -5%FY22 -2%FY23 -24%FY24 -20%FY25 -19%

It earned an average -14% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+25% shares · 5y

Share count is up 25% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 39% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$403,768
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$403,768
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001674356-23-000005 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001674356-24-000009 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001674356-25-000007 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001674356-26-000009 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001674356-23-000005 (ProfitLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001674356-24-000009 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001674356-25-000007 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001674356-26-000009 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001674356-23-000005 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001674356-24-000009 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001674356-25-000007 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001674356-26-000009 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-12-31 · accession 0001674356-24-000009 (PaymentsForCapitalImprovements)
  14. 10-K · period ending 2023-12-31 · accession 0001674356-25-000007 (PaymentsForCapitalImprovements)
  15. 10-K · period ending 2021-12-31 · accession 0001674356-22-000008 (LongTermDebt)
  16. 10-K · period ending 2022-12-31 · accession 0001674356-23-000005 (LongTermDebt)
  17. 10-K · period ending 2023-12-31 · accession 0001674356-24-000009 (LongTermDebt)
  18. 10-K · period ending 2024-12-31 · accession 0001674356-25-000007 (LongTermDebt)
  19. 10-K · period ending 2025-12-31 · accession 0001674356-26-000009 (LongTermDebt)
  20. 10-K · period ending 2021-12-31 · accession 0001674356-23-000005 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2022-12-31 · accession 0001674356-24-000009 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2023-12-31 · accession 0001674356-25-000007 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2024-12-31 · accession 0001674356-26-000009 (CashAndCashEquivalentsAtCarryingValue)