US CMBS delinquency rate ticks up in April

The US CMBS delinquency rate inched up a single basis point in April to 4.23 percent following a 7 bps jump in March.

The US CMBS delinquency rate inched up a single basis point in April to 4.23 percent following a 7 bps jump in March, according to Trepp. 

The modest two-month rise follows a more than 100 bps plunge that occurred in January and February combined, with a 20 bps drop in February followed by trepp-logoan 82 bps in January that was largely due to the payoff of the $3 billion Stuyvesant Town-Peter Cooper Village loan.

The rate is now 134 bps lower than the year-ago level and 94 bps lower since the beginning of the year. (The all-time high was 10.34 percent in July 2012). There are currently $21.2 billion in delinquent loans, excluding loans that are past their balloon date, but are current on interest payments.

In April, CMBS loans that were previously delinquent but paid off with a loss or at par totaled about $450 million, pushing the rate down 9 bps; and over $600 million in loans were cured, pushing it down an additional 12 bps. But about $1.1 billion in loans became newly delinquent, putting 21 bps of upward pressure on the rate.

The percentage of loans seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 4.13 percent, up 7 bps for the month.

The industrial delinquency rate inched up four basis points to 5.95 percent; the office rate jumped seven basis points to 5.30 percent; the retail rate dipped 13 bps to 5.20 percent; the lodging rate moved up 11 basis points to 2.87 percent; the multifamily delinquency rate fell two basis points to 2.32 percent, remaining the best performer following the Stuy Town declines..

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