Performance on securitized commercial real estate loans was worse in any month since 2015. Maturing loans and shrinking outstandings were blamed.
Thirty-day delinquency, including foreclosures, on loans included in commercial mortgage-backed securities was 3.14 percent as of April 30.
The last time that CMBS
loan performance was that weak was in December 2015, when the past-due rate worked out to 3.43 percent.
Those statistics were reported Friday by Morningstar Credit Ratings LLC
based on the $760 billion in CMBS it rates.
CMBS delinquency was 3.05 percent as of March 31, 2017, and
2.81 percent as of April 30, 2016.
“A large volume of maturing loans failed to pay off and the balance of the universe of loans shrunk,” Morningstar said.
Delinquency on CMBS loans secured by office buildings led the month-over-month deterioration, climbing 59 basis points from March to 7.20 percent.
However, data from Trepp LLC indicate that the 30-day rate on securitized office building loans plunged 51 BPS in May.
April 2017’s rate on
retail property loans was 5.91 percent, rising 19 BPS from a month earlier.
A 7-basis-point increase from the last report was recorded for CMBS loans secured by industrial properties, with the rate at 5.63 percent as of the end of April.
At 2.04 percent, the 30-day rate on securitized healthcare property loans was just a basis point more than in March.
Moving in the other direction was delinquency on multifamily CMBS loans, which fell a basis point to 0.42 percent.
But hotel mortgage delinquency had the biggest improvement, sinking 32 BPS from the preceding month
to 3.17 percent.
