Last month saw another increase in CMBS loan losses, according to Trepp.
The losses involved $157.5 million in value across six loans. Total losses ran $128 million, with an average loss severity of 81.27%, the firm wrote. That is compared to February’s volume of $79.7 million on seven loans, with an average loss severity of 47.87%.
Even with the month-over-month increase, the 12-month moving average disposed balance dropped to $171.1 million in March from $193.3 million in February. However, the 12-month moving average loss severity increased from 61.96% in February to 62.97% in March.
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Over the last 12 months, the largest single disposed loan amount in a month was $369.41 million in May 2024, on six loans. That month also had the largest losses incurred: $232.63 million, with a loss severity of 62.97%.
The highest loss severity percentage was in April 2024, with a disposed loan amount of $105.82 million on three obligations and losses of $86.22 million. February 2025 had the lowest losses incurred—$38.17 million—on seven loans with a disposed loan amount of $79.73 million and a loss severity of 47.87%.
The last 12 months saw a total of 188 disposed loans, with the amount totaling $2.05 billion. Losses incurred were $1.29 billion, with a 62.97% loss severity.
If restricted to only loans with a greater than 2% loss severity, the 12 months would include only 108 loans with a disposed loan amount of $1.96 billion and incurred losses of $1.29 billion, with a loss severity of 65.79%.
Across the 12 months with the highest loss severity of 81.47% and the lowest of 55.20% — only counting loans with losses with severities greater than 2% — the 12-month moving average was relatively flat. The high point was 65.97% in September 2024, and the lowest was 62.71% in April and May 2024.
Then there is the 12-month average disposed amounts for loans with losses of at least 2%. The highest of $369.41 million was in May 2024. The lowest was $47.79 million in February 2025. The 12-month average hit a high point of $296.84 million in July 2024, with a low of $163.74 million in March 2025.
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