Past due payments on securitized commercial real estate loans turned lower as the wall of maturities subsided. The improvement was led by industrial loans.
The rate of 30-day delinquency on loans that are contained in commercial mortgage-backed securities
wound up at 3.04 percent as of the end of July.
That was a 15-basis-point improvement over the previous month. Compared to the same month last year, CMBS delinquency has fallen 8 BPS.
Morningstar Credit Ratings LLC reported the data based on the $753 billion in CMBS it rates.
The ratings agency said CMBS delinquency now stands near its peak as fewer securitized commercial mortgages expected to default at maturity have diminished. In addition,
resolutions remain high, and issuance has picked up — raising the denominator for calculating the rate.
CMBS loans secured by industrial properties had a 5.47 percent delinquency rate as of July 31, tumbling from the previous month by 21 BPS — the biggest month-over-month decline of any property type.
An 18-basis-point decline from June left the rate on securitized multifamily loans at 0.43 percent.
At 6.71 percent as of the most-recent date, delinquency on
office CMBS loans was down 4 BPS.
A 4-basis-point increase on healthcare property delinquency left the rate at 2.08 percent as of the latest month.
Retail property loans in CMBS had a 6.37 percent delinquency rate of of July 31, worsening by 5 BPS.
The most severe increase in delinquency was with securitized hotel loans: 31 BPS to 3.61 percent.
