A big improvement in hotel loan performance helped pull the rate of past-due payments on securitized commercial real estate loans to the lowest level in nearly three years. Industrial loans, however, saw substantial deterioration.
Thirty-day delinquency on CRE loans that are part of commercial mortgage-backed securities was 7.228 percent as of the end of last month. It was the best delinquency level since April 2010, when the rate was 6.910 percent.
The 30-day rate of late payments on commercial mortgages during January was 7.319 percent.
The data from Morningstar Credit Ratings LLC indicates that an even bigger decline has occurred compared to a year earlier, when CMBS delinquency stood at 8.001 percent.
“The movement in both delinquent unpaid balance and percentage continues to be impacted by the size and amount of loan liquidations, modifications, extensions and resolutions reported on a monthly basis,” the ratings agency stated. “These items, along with continued new issuance growth, should lead to a further decline in delinquency levels throughout 2013.”
The delinquency rate reflected $52.14 billion in delinquent CMBS loans as of Feb. 28, less than $52.55 billion the previous month and $57.47 billion at the same point in the previous year.
Morningstar said it rated $721.42 billion in overall CMBS as of Feb. 28.
Hotel CMBS loans played the biggest role in last month’s improvement, with the 30-day rate on such mortgages plunging 120 basis points from January to 8.0 percent.
Also lower was delinquency on securitized loans backed by healthcare properties, with a 40-basis-point drop leaving the 30-day rate at 12.4 percent in the latest report. Still, healthcare loans had the worst rate of any category.
A 10-basis-point improvement in multifamily mortgage delinquency left the February past-due rate at 4.7 percent — the lowest of any category.
Retail property delinquency was also down 10 BPS, to 7.2 percent as of Feb. 28.
Loans secured by office properties saw a 20-basis-point bump, leaving the office rate at 10.0 percent.
Delinquency on loans secured by industrial properties surged 160 BPS, landing the rate of late payments at 11.7 percent last month.
