Quarterly securitizations of commercial real estate loans have moved sharply higher over the past year. Transactions secured by hotels led an improvement in delinquency.
Issuance of commercial mortgage-backed securities came to 34 transactions for a total of $20.37 billion in the first-quarter, soaring from 15 transactions for $11.12 billion a year prior.
Most of the gain was due to a surge in single-asset, single-borrower transactions, with securitizations of these deals leaping to $9.62 billion from just $2.94 billion one year earlier.
The results were included in
CMBS: Strong Start to 2018; Retail Risks Likely to Loom from Morningstar Credit Ratings LLC.
Thirty-day delinquency on CMBS sank to 2.32 percent in February 2018 from 2.43 percent the preceding month and 3.04 percent in the same month last year.
The ratings agency said it expects delinquency to remain below 3 percent.
Last month’s
rate was 2.48 percent on hotel CMBS, plunging from January by 59 basis points — the most of any property type. Delinquency on securitized office building loans tumbled 23 BPS to 4.99 percent as of Feb. 28, while the rate dropped 10 BPS on retail property loans to 5.59 percent. Multifamily delinquency of 0.31 percent was 3 BPS better than the preceding month.
A 2-basis-point increase in the 30-day rate for healthcare property loans left delinquency at 1.77 percent last month, and the rate on industrial properties jumped 19 BPS to 4.59 percent.
