Borrowers on securitized commercial real estate loans did a better job of keeping up with their payments. Lodging loans saw the most improvement.
The rate of delinquency on loans included in commercial mortgage-backed securities was 3.77 percent in March.
Turns out that the level of past-due payments on CMBS loans based on the loan balances was at the lowest level in more than five years.
The latest rate was a nine-basis-point improvement over the previous month and 100 BPS better than in the same month last year.
The performance metrics were based on
$783 billion in CMBS rated by Morningstar Credit Ratings LLC.
“Morningstar Credit Ratings, LLC maintains our expectation that the declining trend experienced over the past three years will continue through the remainder of this year,” the report stated.
Much of the concern about maturing CMBS loans has dissipated as
loans have been successfully refinanced.
March’s biggest improvement came from hotel loans, with the 30-day rate sinking 34 BPS to 3.69 percent.
Health-care property loan delinquency tumbled 12 BPS to 3.02 percent.
At 2.10 percent, multifamily delinquency was nine BPS better than in February.
Also declining nine BPS was delinquency on securitized office property loans, which finished March at 5.69 percent.
Delinquency on retail property loans, however, worsened
— inching up two BPS to 4.86 percent.
The most deterioration was with CMBS loans on industrial properties, with the 30-day rate jumping 26 BPS to 6.47 percent in March.
