The overall delinquency rate for U.S. commercial mortgage-backed securities (CMBS) eased slightly in November, marking one of only four months this year in which delinquencies declined, according to a Trepp report. The rate fell to 7.26%, a 20-basis-point decrease from October, as the delinquent balance dropped by $760 million to $43.8 billion, while the outstanding loan balance grew by $5.8 billion to $603.9 billion.
Despite the modest overall improvement, the picture varies across property types. Lodging delinquency rose to 6.17%, up 10 bps, while industrial inched up three bps to 0.67%. Conversely, retail delinquency declined 15 bps to 6.74%, multifamily fell below the 7% threshold to 6.98% and office pulled back eight bps from its all-time high to 11.68%.
Net new delinquencies in November totaled just under $3 billion, offset slightly by $3.1 billion in cures. Retail added $445 million in delinquencies while $198 million returned to performing status, resulting in a net delinquent balance of $247 million. Lodging added a net $170 million, with $460 million in new delinquencies against $290 million cured. Office, multifamily and industrial saw net increases of $88 million, $45 million and $20 million, respectively.
The report notes that some property types, including retail, multifamily and office, experienced a net increase in newly delinquent balances despite declines in overall delinquency rates, mainly due to growth in the overall outstanding loan balance.
If loans beyond their maturity date but current on interest were included, the delinquency rate would rise to 8.81%, down 11 basis points from October. The portion of loans in the 30-day bucket fell to 0.26%, a 21-bps drop, according to the report.
Year-over-year, the overall U.S. CMBS delinquency rate remains elevated, up 86 bps from 6.4% a year ago. The share of seriously delinquent loans now stands at 7%, essentially unchanged from last month. The CMBS 2.0+ segment—which refers to post-financial-crisis securities incorporating enhanced underwriting, disclosure and risk retention standards—saw its rate fall 19 bps to 7.17%. At the same time, seriously delinquent CMBS 2.0+ loans rose slightly to 6.91%.
CMBS 2.0 missed due date figures showed mixed trends across property types. Lodging increased slightly to 6.09% (up nine bps), while multifamily fell to 6.98% (down 14 bps). Office eased to 11.56% (down 10 bps) and retail declined to 6.45% (down 15 bps).
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