The performance of securitized commercial real estate loans improved last month after rising for the first time in nearly a year. Industrial property delinquency was down most.
As of April 30, delinquency of at least 30 days on loans that are included in commercial mortgage-backed securities worked out to 4.36 percent.
Thirty-day CMBS delinquency improved 19 BPS points compared to one month prior — when the rate deteriorated for the first time since June 2017.
Compared to the same date last year, delinquency has plummeted 116 BPS.
Trepp LLC, which reported the loan performance data, indicated that last month’s rate was the lowest since May 2016, when the rate was previously reported at 4.35 percent.
The latest improvement came as “distressed legacy loans continue to be resolved away,” the New York-based ratings agency said.
Faring best last month were CMBS loans secured by industrial properties, with the rate plummeting 78 BPS from March to 4.53 percent.
A 37-basis-point month-over-month decline left lodging delinquency at 2.98 percent as of April 30.
Securitized office building loans saw a 23-basis-point decline from a month earlier to 5.57 percent.
At 2.26 percent, the 30-day rate on multifamily CMBS loans was 13 BPS lower than in March and the best-performing property category.
Only retail properties had an increase in delinquency: 2 BPS to 5.97 percent.
