Despite deterioration in the lodging and industrial sectors, the performance of securitized commercial real estate loans improved last month. New issuance and apartment loan performance played a role in the improvement.
The 60-day delinquency rate on loans included in commercial mortgage-backed securities ended November at 8.17 percent.
The rate improved from October, when 8.29 percent of CMBS loans were at least two months past-due.
CMBS delinquency, which is based on transactions that are rated by Fitch Ratings, has been lower for six consecutive months. Last month’s rate was the lowest level since November 2010, when delinquency was 7.96 percent..
In November 2011, the CMBS delinquency rate was 8.41 percent.
Fitch explained that $1.5 billion in delinquent loans were cured, more than the $1.3 billion in newly delinquent loans.
Also helping the latest results was a surge in new issuance.
Fitch reported the addition of $6.6 billion to its rated portfolio — the highest month for Fitch-rated issuance in five years. Portfolio runoff was $4.6 billion.
Multifamily loans had the biggest impact on last month’s performance, with delinquency falling to 9.92 percent from 10.45 percent in October.
Late payments on securitized office property loans were 8.63 percent, lower than the prior month’s 8.72 percent rate.
Also improving was the delinquency rate on retail property loans, which declined to 7.28 percent from 7.35 percent.
After tumbling 66 basis points in October, delinquency on hotel loans jumped 25 BPS to finish November at 9.83 percent.
The other category to deteriorate in November was industrial property loans, which saw delinquency climb 12 BPS to 8.88 percent. Industrial loan delinquency had been down 27 BPS in October.
