A huge drop in delinquency on healthcare property loans and improved performance on loans backed by office properties supported a reduction in overall delinquency on securitized commercial real estate loans. Industrial property loans continue to be a problem.
As of May 31, the 30-day delinquency rate on CRE loans that are included in commercial mortgage-backed securities was 6.706 percent.
CMBS performance improved from a month earlier, when loans that were past due at least one month accounted for 6.736 percent of all CMBS loans.
The delinquency rate has tumbled from May 2012, when it stood at 8.533 percent.
The statistics are based on the $740.34 billion in CMBS rated by Morningstar Credit Ratings LLC.
The latest level of late payments reflected $49.65 billion in delinquent loans — the lowest level since $47.8 billion in February 2010. The amount of past-due loans was up from $49.24 in April but down from $60.30 billion in the same month last year.
Healthcare property loans turned in the best improvement: 180 basis points. The healthcare 30-day rate landed at 4.4 percent.
Next were with loans secure by office buildings, with the 30-day rate dropping 20 BPS to 9.4 percent.
A 10-basis-point improvement from April on multifamily loans left delinquency at 3.8 percent last month.
Also dropping 10 BPS was delinquency on hotel properties, which finished May at 7.3 percent.
No month-over-month change was registered for retail property loan delinquency, which was 6.8 percent.
On industrial property loans, the delinquency rate shot up to 12.3 percent from 11.5 percent a month earlier — the worst performance of any category.
