NEW YORK CITY—The upward trend in CMBS delinquencies continued in February after taking a breather the month before, Trepp LLC said Friday. The late-pay rate for securitized commercial mortgages ticked upward by 13 basis points to 5.31%. It's the 10th monthly increase in delinquencies over the past 12 months.
Trepp cites loans from 2006 and 2007 reaching their maturity dates without refinancing. The late-pay rate for CMBS is now 116 bps higher than the year-ago period.
“Loan delinquencies remain on the upswing as the wave of maturities continues to run its course,” says senior managing director Manus Clancy. “Since a large amount of maturing debt is backed by collateral with eroded credit quality, the number of loans with missed maturity payments will continue to push the rate up.”
Over $2.3 billion in CMBS loans became newly delinquent in February, the second straight month in which that total exceeded $2 billion. About $1.3 billion in CMBS loans that were previously delinquent paid off with a loss or at par during the month. Over $850 million in loans were cured in February.
Office represented the largest portion of new delinquencies last month, a status reflected by the size of the sector's delinquency increase. evidenced by the sector's reading. Office late-pays rose by 54 bps to 7.65%, the largest increase of all major property types.
The retail sector underwent the biggest improvement last month, with the late-pay rate dropping by 17 bps to 5.93%. Multifamily, which continues to be the best performing property type, improved by 14 bps, while lodging delinquencies fell by 13 bps to 3.43%. Industrial improved by eight bps to 5.94%
Trepp cites loans from 2006 and 2007 reaching their maturity dates without refinancing. The late-pay rate for CMBS is now 116 bps higher than the year-ago period.
“Loan delinquencies remain on the upswing as the wave of maturities continues to run its course,” says senior managing director Manus Clancy. “Since a large amount of maturing debt is backed by collateral with eroded credit quality, the number of loans with missed maturity payments will continue to push the rate up.”
Over $2.3 billion in CMBS loans became newly delinquent in February, the second straight month in which that total exceeded $2 billion. About $1.3 billion in CMBS loans that were previously delinquent paid off with a loss or at par during the month. Over $850 million in loans were cured in February.
Office represented the largest portion of new delinquencies last month, a status reflected by the size of the sector's delinquency increase. evidenced by the sector's reading. Office late-pays rose by 54 bps to 7.65%, the largest increase of all major property types.
The retail sector underwent the biggest improvement last month, with the late-pay rate dropping by 17 bps to 5.93%. Multifamily, which continues to be the best performing property type, improved by 14 bps, while lodging delinquencies fell by 13 bps to 3.43%. Industrial improved by eight bps to 5.94%
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