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New words:
AA, AAA, ACL, ascribed, Ave, baseline, BGO, bore, California, Centennial, chosen, citing, claim, conceptual, conveyed, corroborate, corroborated, corruption, costly, County, CSC, cyber, cybersecurity, database, deny, distract, downgrade, downgraded, easily, emphasizing, encompassed, expedient, Fitch, forecast, forensic, gradually, ground, hypothetical, intensity, land, landlord, length, LGD, logistic, Los, meaningful, misappropriation, Monica, notch, Ocean, opposed, optimistic, outlined, oversee, PD, pessimistic, plausible, polarization, political, pose, posed, proprietary, quantify, Realty, reevaluated, regression, reliance, reset, resolve, riskier, Santa, Sarah, scenario, Schwarzschild, sovereign, stolen, styled, subscribe, suspected, threat, tighten, transparency, turmoil, turnover, unadjusted, unreliable, unwilling, upgrade, user, venture, vintage, VOE, webpage
Removed:
accrue, accumulated, anticipation, arose, assignment, budgetary, buying, calculate, charged, combination, commonly, composition, consistently, convertible, credited, difficulty, disallowed, estimation, excise, exclusively, existed, fifteenth, formally, grouping, health, hierarchical, identifying, imposition, instituting, JV, Kingdom, liquidation, mailed, nondeductible, opted, pandemic, partial, participated, placement, preclude, precluded, proposed, put, recapitalization, receiving, recession, repositioning, reputable, resumption, reviewing, school, seeking, shorter, show, substitute, sudden, tender, tendered, transferred, treat, treated, undistributed, validly, withdrawn
Financial report summary
?Risks
- Our loan portfolio is concentrated in a limited number of industries and borrowers, which may subject us to a risk of significant loss if there is a downturn in a particular industry in which we are concentrated or if one of our larger borrowers encounters financial difficulties.
- Inflation in the U.S. has accelerated in recent years and is currently expected to continue at an elevated level in the near-to medium-term, which may have an adverse impact on the valuation of our investments.
- Terra REIT may change our operating policies, objectives or strategies without prior notice, and the effects of such a change may be adverse.
- Our ability to achieve our investment objectives depends on Terra REIT’s and Terra REIT Advisors’ ability to manage and support our investment process. If Terra REIT were to lose any members of its senior management team, our ability to achieve our investment objectives could be significantly harmed.
- We may make strategic non-real estate-related investments that align with our investment objectives and criteria.
- Because our business model depends to a significant extent upon relationships with real estate and real estate-related industry participants, investment banks and commercial banks, the inability of Terra REIT or Terra REIT Advisors to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business.
- We may face increasing competition for investment opportunities, which could delay deployment of our capital, reduce returns and result in losses.
- Changes in laws or regulations governing our operations or the operations of our business partners may adversely affect our business or cause us to alter our business strategy.
- We may experience fluctuations in our quarterly results.
- The CECL accounting standard requires us to make certain estimates and judgments, which may be difficult to determine and may have a material adverse effect on our financial condition and results of operations.
- Our ability to maintain the security of customer, associate, third-party or company information could have an impact on our reputation and our results.
- We are subject to environmental, social and governance (“ESG”) risks that could adversely affect our reputation, business,
- Terra REIT Advisors and its affiliates, including some of Terra REIT’s directors, face conflicts of interest caused by compensation arrangements with us and our affiliates, which could result in actions that are not in our best interests.
- There may be conflicts of interest related to obligations Terra REIT Advisors has to our affiliates and to other clients.
- The time and resources that individuals employed by Terra REIT Advisors and its affiliates devote to us may be diverted, and we may face additional competition due to the fact that individuals employed by Terra REIT Advisors are not prohibited from raising money for or managing another entity that makes the same types of investments that we target.
- A covenant breach by any of our borrowers may harm our operating results.
- We may not realize gains from our preferred equity investments.
- A lack of liquidity in certain of our investments may adversely affect our business.
- We may not have the funds or ability to make additional funding in our loan investments.
- Our real estate-related loans may be impacted by unfavorable real estate market conditions, which could decrease the value of our investments.
- Our real estate-related loans will be subject to interest rate fluctuations that could reduce our returns as compared to market interest rates.
- Delays in liquidating defaulted mortgage loans could reduce our investment returns.
- Returns on our real estate-related loans may be limited by regulations.
- Foreclosures create additional ownership risks that could adversely impact our returns on mortgage investments.
- The mezzanine loans in which we may invest would involve greater risks of loss than senior loans secured by income-producing real properties.
- Our commercial real estate-related loans, commercial real estate-related debt securities and select commercial real estate equity investments will be subject to the risks typically associated with real estate.
- Risks of cost overruns and non-completion of the construction or renovation of the properties underlying loans we make or acquire may materially adversely affect our investment.
- Our investments in commercial real estate-related loans are subject to changes in credit spreads.
- Investments in non-conforming or non-investment grade rated loans or securities involve greater risk of loss.
- Investments that are not U.S. government insured involve risk of loss.
- We have no established investment criteria limiting the geographic concentration of our investments in commercial real estate-related loans, commercial real estate-related debt securities and select commercial real estate equity investments. If our investments are concentrated in an area that experiences adverse economic conditions, our investments may lose value and we may experience losses.
- We may invest in adjustable rate mortgage loans, which may entail greater risks of default to lenders than fixed rate mortgage loans.
- Prepayments can adversely affect the yields on our investments.
- Hedging against interest rate exposure may adversely affect our earnings, limit our gains or result in losses, which could adversely affect cash available for distribution to Terra REIT and its stockholders and principal and interest payments on our outstanding notes.
- Hedging instruments often are not traded on regulated exchanges or guaranteed by an exchange or its clearing house and involve risks and costs.
- Our investments in debt securities and preferred equity securities will be subject to the specific risks relating to the particular issuer of the securities and may involve greater risk of loss than secured debt financings.
- Declines in the market values of our investments may adversely affect periodic reported results of operations and credit availability, which may reduce our earnings and, in turn, cash available for principal and interest payments on the notes.
- With respect to mortgaged properties, options and other purchase rights may affect value or hinder recovery.
- If we overestimate the value or income-producing ability or incorrectly price the risks of our investments, we may experience losses.
- The leases on the properties underlying our investments may not be renewed on favorable terms.
- A borrower’s form of entity may cause special risks or hinder our recovery.
- We may be exposed to environmental liabilities with respect to properties to which we take title.
- Changes in interest rates may affect our cost of capital
- Covenants in our debt agreements may restrict our operating activities and adversely affect our financial condition, operating results and cash flows.
- If we did not qualify as a REIT during the REIT Period, we will be subject to tax as a regular corporation and could face a substantial tax liability on our income earned during the REIT Period.
- Future recessions, downturns, disruptions or instability could have a materially adverse effect on our business.
- Disruptions in the financial and banking sectors may adversely impact our access to capital and our cost of borrowing, which could adversely affect us, our business or our results of operations.
- Continued concerns over U.S. fiscal and political policy could, among other things, lead to future downgrade of the U.S. government's sovereign credit rating and contribute to a U.S. economic slowdown, which could have a material adverse effect on our business, financial condition and results of operations.
- Cybersecurity risk and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of the security, confidentiality, or integrity of our company, employee, customer or third-party confidential information and/or damage to our reputation or business relationships, any of which could negatively impact our financial results.
- As a public company, we are subject to regulations not applicable to private companies, such as provisions of the Sarbanes-Oxley Act. Efforts to comply with such regulations involves significant expenditures, and non-compliance with such regulations may adversely affect us.