An improvement in the performance of securitized commercial real estate loans backed by office buildings was enough to offset deterioration in every other category.
Loans that were delinquent at last 30 days accounted for 5.47 percent of all loans that are included in commercial mortgage-backed securities as of May 31.
Late payments on securitized CRE loans were down from 5.52 percent as of April 30, when the delinquency rate had risen for three consecutive months.
But CMBS delinquency has deteriorated since May 31, 2016, when the rate was 4.35 percent.
Trepp LLC reported the performance data on Thursday.
“After hitting a post-crisis low in February 2016, the reading has consistently climbed over the past year as loans from 2006 and 2007 have reached their maturity dates and have not been paid off via refinancing,” Trepp said. “The rate had moved up in 12 of the last 14 months before the May reading.”
The month-over-month improvement was solely the result of falling delinquency on CMBS loans secured by office buildings. The 30-day rate plunged 51 basis points from April to 7.46 percent.
A 16-basis-point rise in delinquency on securitized multifamily loans left the rate at 2.82 percent as of May 31, 2017.
Delinquency climbed 20 BPS from a month earlier to 3.42 percent on lodging loans and 6.50 percent on retail loans.
At 7.37 percent, the past-due rate on securitized industrial property loans was 22 BPS worse than the preceding month.
