The performance of securitized commercial real estate loans was slightly worse, though the outlook is stable. But late payments on industrial property loans soared.
Delinquency on loans that are part of commercial mortgage-backed securities of at least 30 days, including foreclosures, concluded March 2017
at 3.05 percent.
That turned out to be just a basis point more than at the end of the previous month. Still, it was the fourth consecutive month that CMBS delinquency deteriorated.
Those details were delivered Tuesday by Morningstar Credit Ratings LLC based on the performance of $766 billion in CMBS loans that it rates.
Past-due payments on securitized CRE loans, though, were up significantly from the same month last year, when the rate was 2.83 percent.
“We are cautiously optimistic,” the ratings agency stated. “While the delinquency rate rose 22 basis points from a year ago, March marked the ninth straight month the delinquency rate hovered near 3 percent, and Morningstar Credit Ratings LLC expects the rate to continue to moderate as an increase in the volume of newly delinquent loans, many of which will default at or near maturity, will be offset by payoffs and liquidations.”
On CMBS loans secured by industrial properties, the 30-day rate was 5.56 percent, soaring from February 2017 by 68 basis points — the worst month-over-month deterioration of any property type.
A 50-basis-point increase from a month earlier left the rate on hotel loans at 3.49 percent as of March 31.
Delinquency on securitized retail property loans concluded the most-recent month at 5.72 percent, rising 20 BPS from February.
Healthcare property delinquency was 2.03 percent, up 2 BPS from the last report.
But on multifamily loans, delinquency retreated 7 BPS to 0.43 percent.
An even bigger improvement was made on CMBS loans secured by office buildings, with he 30-day rate falling 10 BPS to 6.61 percent.
