Commercial mortgage backed securities grew in profitability forthe ninth straight year in 2019, according to a new report fromFitch Ratings, but that streak is bound to come to an end in 2020because of the widespread impacts of the coronavirus crisis.
The property-level net operating income for loans securitized inFitch-ranked CMBS grew an average of 2.0% in the last calendaryear, following growth rates of 1.9% in 2018 and 2.0% in 2017. Yetominous signs were already on the horizon for the hotel sector,where NOI began a decline in 2019, and retail, where growth wasclose to zero.
Hotels saw their NOI dip by 3.1% last year, following a 0.2%decline in 2018. But they were an outlier in a larger universe thatsaw 60% of properties that reported financials in both 2018 and2019 increase NOI.
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Dan Packel
Dan Packel is an editor on the Business of Law desk at ALM. He writes a weekly briefing for Law.com, "The Law Firm Disrupted," on change and innovation in the legal marketplace. He is based in Philadelphia. Contact him at [email protected]. On Twitter at @packeld
