With hotel mortgages leading the way, the rate of past-due payments on securitized commercial real estate loans continued falling to a multi-year low. Retail property loans, however, suffered a significant setback.
The rate of 30-day delinquency on loans included in commercial mortgage-backed securities was 3.62 percent as of the end of June.
CMBS
delinquency improved from the previous month, when the 30-day rate was 3.65 percent.
The improvement in CRE loan performance was more significant compared to mid-2014, when the delinquency rate was 4.32 percent.
The delinquency statistics were reported by
Morningstar Credit Ratings LLC based on the $796 billion in CMBS it rates.
The New York-based ratings agency noted that, based on principal balance,
past-due CMBS loans are at their lowest level in nearly six years.
Delinquency on CMBS loans secured by hotels was 3.20 percent, tumbling 18 basis points from May — the biggest improvement of any category.
A 13-basis-point decline left delinquency on securitized industrial property loans at 5.66 percent.
At 1.95 percent as of June, the 30-day rate on multifamily loans included in CMBS was down seven BPS from a month earlier.
Office property loan delinquency was 5.48 percent, slipping two BPS from May.
A one-basis-point increase pushed up the rate on securitized health care property mortgages to 3.06 percent.
Retail property loans saw the worst deterioration, with the 30-day rate jumping 11 BPS to 4.99 percent as of June.
