The performance of securitized commercial real estate loans improved last month, with mortgages secured by retail properties leading the way.
Delinquency of at least 30 days on loans that are included in commercial mortgage-backed securities
came in at 2.90 percent as of Sept. 30.
The rate of past-due payments declined 5 basis points versus one month previous. Compared to a year previous,
the rate has plunged 59 BPS.
Morningstar Credit Ratings LLC reported the performance data based on the $795 billion in CMBS it rates.
The ratings agency said securitized CRE loans on transactions issued between 2012 and 2015 has not exceeded 0.04 percent.
Helping to pull down the overall rate were retail CMBS loans, with the 30-day rate falling 9 BPS from August to 5.38 percent.
An 8-basis-point month-over-month decline on securitized industrial property loans left the rate at 4.59 percent as of the end of last month.
Multifamily delinquency was 0.53 percent, 4 BPS better than a month earlier.
At 5.69 percent, delinquency on office building loans was 3 BPS less than as of Aug. 31 2016.
The rate of late payments on healthcare property loans was 2.54 percent as of Sept. 20, up 3 BPS from the prior report.
Hotel loan delinquency jumped 12 BPS from August to 3.12 percent.
