It has been years since the delinquency rate on securitized commercial mortgages has been this low. The latest month saw stellar performance on loans backed by hotel properties.
Out of the $721.34 billion in commercial mortgage-backed securities rated by Morningstar Credit Ratings LLC, $54.47 billion was at least 30 days’ delinquent as of Dec. 31, 2012.
Delinquent CMBS were down from $55.20 billion as of Nov. 30 and have been lower for six consecutive months. There were $59.18 billion in CMBS past-due as of Dec. 31, 2011.
The 30-day CMBS rate fell to 7.552 percent last month — the lowest level at least since May 2010, when the rate was 7.270 percent.
“This ratio, however, remains over 26 times the Morningstar recorded low point of 0.283 percent in June 2007,” the report states.
In November, the rate was 7.774 percent, while it was 8.151 percent in December 2011.
Leading the improvement were CMBS loans backed by hotels, which tumbled 100 basis points from November to 10.3 percent.
A 30-basis point decline left the rate on retail CMBS at 7.1 percent.
With a 20-basis-point improvement each, industrial delinquency finished 2012 at 10.1 percent and the multifamily rate was 5.2 percent.
No change in delinquency on healthcare or office CMBS loans made the categories December’s worst performers, leaving the healthcare rate at 6.4 percent and the office rate at 9.9 percent.
