Thanks to a 270-basis-point leap in past-due payments on securitized hotel loans, overall delinquency on securitized commercial real estate loans was worse.
Late payments of at least 30 days on commercial mortgage-backed securities were 8.533 percent in May.
The CMBS rate climbed from 8.190 percent as of April 30. It was also worse than 8.350 percent on May 31, 2011.
Morningstar Credit Ratings LLC, which provided the statistics, indicated that the aggregate balance of delinquent CMBS loans rose to $60.30 billion from the prior month’s total of $58.37 billion. During the same month last year, $62.37 billion in securitized commercial mortgages were past due.
“Despite the overall increase in delinquent unpaid balance, a net decrease in three of the five delinquency categories was noted in May 2012, as only the 30-day and 90+-day categories showed an increase,” the report stated. “Delinquent activity in May 2012 was also affected by a very active month for liquidations, which totaled $1.57 billion across 191 loans, at an average severity of 50.9 percent.”
The ratings agency said that total outstanding CMBS diminished to $706.7 billion last month from $712.64 billion at the end of April. Outstandings amounted to $746.87 billion at the same point last year.
Last month’s worst-performing property type was industrial, with delinquency on loans secured by industrial properties climbing 50 BPS from April to 12.0 percent.
Hotel loans saw the biggest increase: 270 BPS. The surge left the sector with an 11.8 percent delinquency rate.
Office property mortgages deteriorated 40 BPS to finish June at 10.0 percent.
Late payments on retail property loans rose 20 BPS to 7.8 percent.
The best performing categories were loans backed by healthcare and multifamily properties — both with delinquency rates of 6.9 percent. While healthcare delinquency didn’t move from April, multifamily delinquency was down from 7.2 percent.
