Performance of securitized commercial mortgages was worse last month. Over the past year, the rate of delinquency on all securitized mortgages has climbed more than 400 basis points — while the ascension was more than 1,000 BPS on just hotel loans.
Loans included in commercial mortgage-backed securities saw delinquency of at least 60 days deteriorate 21 basis points in August, according to Moody’s Investors Service’s Delinquency Tracker released Friday. The index reflects performance on commercial mortgages included in conduit or fusion deals issued since 1998.
Late payments on CMBS loans were 8.10 percent last month, the New York-based ratings agency said. The delinquency rate climbed from 7.89 percent during July and was 446 BPS worse than August 2009.
The figures reflected 285 newly delinquent commercial mortgages in August for $4.7 billion. While more previously delinquent loans — 328 — became current during the latest month, the collective balance of the cured or disposed of mortgages was only $3.7 billion.
In all, 3,909 securitized commercial mortgages for $51.56 billion were delinquent as of last month.
But Moody’s Managing Director Nick Levidy had some good news.
“Delinquency rate increases have moderated over the past three months,” Levidy said.
He cautioned, however, that the rate will continue deteriorating “over the near term, with the potential for an occasional spike given the large reservoir of troubled loans in special servicing.”
Deterioration in the hotel sector continued in August, with the rate of late payments rising to 15.47 percent from 13.91 percent a month earlier. A year earlier, the hotel rate was just 4.97 percent. A single loan, the Innkeepers Portfolio, was $825 million and accounted for 75 percent of delinquent hotel loans last month.
Multifamily late payments jumped 21 BPS from July to 13.45 percent, and loans secured by retail properties saw an 8-basis-point rise to 6.59 percent. Office property defaults were up 7 BPS to 6.11 percent.
Industrial property loans deteriorated 52 BPS to 6.01 percent — “the best performing of the five property types.”
Nevada’s delinquency rate, already the worst of any state, rose another 44 BPS to 25.39 percent in August.
A distant second, Arizona’s rate was up 51 BPS to 14.27 percent. Michigan slipped from No. 2 in July to the third-worst state with a delinquency rate of 14.09 percent.
