Deteriorating performance on loans secured by hotel properties led the delinquency rate higher on commercial mortgage-backed securities. While late payments also increased on loans secured by office buildings and apartments, one type of commercial property saw an improvement.
Delinquency on securitized commercial mortgages was 5.73 percent in February, a report today from Moody’s Investors Service said. Delinquency rose 31 basis points from January.
The findings were based on Moody’s Delinquency Tracker, which tracks all outstanding loans in U.S. conduit and fusion deals done since 1998.
Moody’s Managing Director Nick Levidy called the increase “relatively mild” compared to the average 44 basis point increase over the past five months.
The increase was led by an 82 basis point surge in hotel delinquency. Hotel delinquency now stands at 10.64 percent.
The multifamily rate rose 59 BPS to 9.36 percent, office delinquency increased 45 BPS to 3.98 percent and late payments on industrial properties jumped 40 BPS to 4.28 percent.
Delinquency on retail property loans, however, improved 2 BPS to 5.22 percent. It was the first decline in retail delinquency since November 2007. But the improvement was largely the result of 45 loans for $780 million that either became current, were worked out or disposed of during February.
