Performance improved last month on loans included in commercial mortgage-backed securities thanks to apartment loan delinquency.
Loans that were delinquent at least 30 days or in the foreclosure process represented 2.86 percent of all CMBS loans as of June 30.
The level of delinquency
on CMBS loans improved compared to a month previous, when the 30-day rate came in at 2.91 percent.
Past-due payments on securitized commercial real estate loans also were better than in June 2015, when the rate stood at 3.62 percent.
Morningstar
Credit Ratings LLC reported the statistics based on the nearly $800 billion in CMBS that it rates.
On just delinquency of between 30 and 59 days, the rate was approximately 0.37 percent, up for the second consecutive month from 0.36 percent as of May 31, 2016. The deterioration was due, in large part, to maturity defaults.
Multifamily had the best month-over-month performance of any CMBS loan type, with the rate falling 6 basis points from May to 0.59 percent.
A 2-basis-point decline left delinquency on securitized healthcare property loans at 2.44 percent as of the end of last month.
The 30-day rate on industrial property loans included in CMBS was up
3 BPS from May to 4.43 percent.
Delinquency on office building loans worsened by 5 BPS to 5.44 percent in June.
Retail property loans had a 30-day rate of 5.11 percent, 12 BPS worse than a month previous.
Securitized hotel loans saw a whopping 24-basis-point rise in late payments to 3.02 percent as of last month.
