More borrowers on securitized commercial real estate loans made on-time monthly payments last month, with industrial property owners making the biggest improvement.
Loans that are part of commercial mortgage-backed securities had a 30-day delinquency rate of 3.65 percent in May.
Turns out that the balance of CMBS loans past due at least a month was less during May than in any other month in nearly six years.
Morningstar Credit Ratings LLC delivered the data Monday.
The ratings agency based its findings on the $792 billion in CMBS it rates.
The previous month, a 3.75 percent delinquency rate was in place, while it stood at 4.32 percent as of May 2014.
Last month’s biggest improvement was made on securitized industrial property loans, with the 30-day rate sinking 36 basis points from April to 5.79 percent.
Next were hotel loans, which saw 30-day delinquency decline 20 BPS to 3.38 percent.
Past-due loans accounted for 2.02 percent of all securitized multifamily loans, 11 BPS better than in May.
After that were office property loans, with the rate of late payments dropping 10 BPS to 5.50 percent.
But loan performance deteriorated on health-care property loans, with the 30-day rate rising three BPS to 3.05 percent.
A
four-basis-point increase was recorded for loans on retail property loans, which finished the month with a 4.88-percent rate.
