Late payments on securitized commercial real estate loans were significantly higher last month, and balloon-payment defaults were behind the deterioration.
The 30-day delinquency rate on loans that are included in commercial mortgage-backed securities worked out to 4.60 percent during the month of June.
Delinquency deteriorated from a month earlier, when the rate was 4.35 percent. The rate has risen each month
since February, when it was 4.15 percent.
Trepp LLC, which provided the statistics, previously reported a 30-day CMBS rate of 5.45 percent for June 2015.
“Of note is the percentage of loans that were classified as ‘non-performing loans that were past their balloon date,'” Trepp stated. “That number jumped 14 basis points in June. These would be loans that reached their maturity date and did not pay off or make an interest payment to satisfy the debt service.”
Retail CMBS loans saw the worst month-over-month deterioration, with the 30-day rate jumping 36 BPS to 5.72 percent.
Close behind were CMBS loans secured by lodging properties, with the rate of late payments rising 31 BPS to 3.27 percent.
A 25-basis-point increase from May left securitized office building loan delinquency at 5.76 percent.
Industrial property loans had a past-due rate of 5.95 percent, 23 BPS worse than in the prior report.
At 2.35 percent as of June, multifamily delinquency was off 1
basis point from the previous month.
