Following an increase of more than 30 basis points in September, past-due payments on securitized commercial real estate loans retreated 7 BPS last month. But the rate remains elevated compared to a year ago. Apartment delinquency was last month’s worst performer, while late payments on hotel loans were lower.
The rate of 60-day delinquency on loans included in commercial-mortgage backed securities was 9.29 percent in October. Late payments improved from the prior month, when the rate increased 35 BPS from August to 9.36 percent.
The findings were based on Moody’s Investors Service’s Delinquency Tracker. The ratings agency said that CMBS delinquency has exceeded 9 percent for each of the last 10 months.
Loans that became newly delinquent last month totaled approximately $2.5 billion. Half were backed by properties located in either California, Georgia or Texas. Six of the 10-biggest newly past-due loans were secured by either office or retail properties in Georgia or Texas.
October’s delinquency rate was worse than 8.39 percent during October 2010.
CMBS loans in special servicing accounted for 12.10 percent of all securitized CRE loans, lower than 12.13 percent in September.
Multifamily delinquency was 15.6 percent — the highest of any property type. The multifamily rate deteriorated from around 15 percent in September.
The second-worst rate was on hotel loans, which fell to 13.9 percent from the previous month’s 14.81 percent.
Two deals for $3.2 billion were securitized during October, while $6.3 billion in CMBS were eliminated. The activity brought total outstanding CMBS issuances to $591.6 billion.
