The sale of distressed assets was behind a big drop last month in delinquency on loans included in commercial mortgage-backed securities. Performance improvement was greatest on industrial property loans.
The rate of 30-day delinquency on securitized commercial real estate loans was 6.78 percent in February.
CMBS delinquency fell from January, when the rate was 7.25 percent. It was the ninth month in a row that CMBS delinquency was lower.
The late payment rate was 9.42 percent in the same month last year.
Trepp LLC, which reported the statistics, said it had been expecting a big drop in CMBS delinquency for some time now.
“That reduction took place in February, driven by the continued CWCapital distressed asset sales,” the report stated. “With roughly $3 billion in CMBS loans and properties out for bid, the removal of these loans from the roster of delinquent assets would send the CMBS delinquency rate spiraling lower.”
The biggest improvement was made on CMBS loans secured by industrial properties, with the 30-day rate tumbling 131 BPS from January to 9.28 percent.
The delinquency rate on lodging loans sank 73 BPS to 6.62 percent in February.
After that were office loans, with 30-day delinquency falling 57 BPS to 7.23 percent last month.
Next was delinquency on retail loans — declining 36 BPS to 5.77 percent during the most recent month.
Multifamily delinquency moved down 32 BPS to 10.35 percent in February.
