The performance of loans included commercial mortgage-backed securities has improved almost every month during the past year. The most recent month was aided by a big decline in the late payment rate on apartment building loans,
The rate of 30-day delinquency on securitized commercial real estate loans was 6.44 percent in April.
CMBS delinquency declined by 10 basis points compared to a month earlier. It was the 11th consecutive month that the rate was lower.
A 259-basis-point improvement from the same point last year has been made by CMBS servicers.
Trepp LLC reported the performance statistics Thursday based on loans it rates.
“Recent improvement in the delinquency rate was driven by a surge in the volume of loan resolutions, including the sizable CWCapital distressed asset sales,” the ratings agency stated in the report. “Over $4.5 billion in loans were resolved in February and March, which accounted for an almost 90-basis-point drop in the rate.”
Securitized multifamily loans made the biggest improvement, falling 39 BPS from March to 9.83 percent.
The next biggest drop came from the lodging sector, with hotel loan delinquency dropping 14 BPS to 6.32 percent.
After that were industrial property loans, with the rate retreating 13 BPS to 8.69 percent.
At 5.65 percent, 30-day delinquency on retail property loans was 6 BPS better than in March.
CMBS loans secured by office buildings were the only loans to see deterioration, with the delinquency rate climbing 9 BPS to 6.82 percent in April.
