Past-due payments on securitized commercial real estate loans were lower last month and have plummeted by more than 200 basis points over the past year. The decline in delinquency was helped along by big improvements on loans secured by healthcare and industrial properties.
Loans included in commercial mortgage-backed securities had a 30-day delinquency rate of 6.427 percent in June.
The level of CMBS delinquency improved from one month earlier, when the 30-day rate was 6.706 percent.
The delinquency rate has plunged from the same month last year, when it came in at 8.484 percent.
The performance data was reported by Morningstar Credit Ratings LLC based on the $737.05 billion in CMBS it rates.
The $47.37 billion in delinquent Morningstar-rated CMBS as of June was the lowest level since January 2010’s $45.9 billion.
Last month’s biggest improvement was from CMBS loans secured by healthcare properties, with the 30-day rate dropping from 4.4 percent in May to 3.9 percent.
Also delivering a solid improvement were mortgages backed by industrial properties, which had a delinquency rate of 11.9 percent — 40 BPS better than the previous month.
Retail loans saw delinquency decline to 6.5 percent from 6.8 percent.
A 20-basis-point drop was recorded for multifamily loans, which closed out June with a 3.6 percent delinquency rate, and office property loans, which ended last month at 9.2 percent.
The only category to experience deterioration was the hotel sector, with the 30-day rate on hotel loans jumping to 8.0 percent from the previous month’s 7.3 percent.
