The company has been conducting its business at a more measured pace due to current trends
Terra Firma Capital Corporation has announced its financial results for the three- and six-month periods ending June 30.
As of the end of the second quarter, Terra Firma held total assets of $146.2 million and total investments of $123.7 million. The company had total assets under management amounting to $129.9 million, versus $122.3 million as of the end of Q4 2021.
Adjusted net income and comprehensive income remained consistent on an annual basis, at $0.7 million.
“Terra Firma increased its earnings per share from the first quarter by 71% (Q1 2022 - $0.07 to Q2 2022 - $0.12) on an adjusted basis and also experienced a robust quarter in terms of originations having closed $58 million of new commitments,” said Glenn Watchorn, the company’s president and CEO.
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However, Watchorn said that Terra Firma has been conducting its business at a more measured pace due to current volatility.
“The housing market has been in flux given the macro-economic shifts related to inflation and interest rate,” Watchorn said. “As such, homebuilders and land developers have been slowing their acquisitions and the company has been proceeding more cautiously. Nevertheless, with our strong relationships we are well positioned to benefit from them once the market improves.”
As of the end of June, Terra Firma has secured future funding commitments amounting to approximately $131 million, its highest level to date. The company has also secured the required capital in place to finance these future obligations, Watchorn said.
“This should aid Terra Firma in its ability to more fully deploy its balance sheet and increase assets under management even though new originations are expected to slow down during Q3 2022. TFCC’s current institutional fund-raising efforts in combination with the success of its second private investor fund (now with total committed capital amounting to $77 million) and a more fully deployed balance sheet over time will be key factors to the company’s overall growth in the future.”
