US CMBS delinquency rate drops another 20bps in February

The US CMBS delinquency rate dropped another 20 basis points in February after plunging 82 bps in January, according to Trepp.

The US CMBS delinquency rate dropped another 20 basis points in February after plunging 82 bps in January, according to Trepp.

The rate is now 4.15 percent, 143 basis points lower than the year-ago level. The all-time high was 10.34 percent in July 2012.

In February, CMBS loans that were previously delinquent but paid off — with a loss or at par — totaled over $930 million, pushing the rate down 18 bps; and more than $1.05 billion in loans were cured, which knocked off another 21 basis points.

About $1 billion in loans became newly delinquent, however, putting 20 basis points of upward pressure on the rate.

The percentage of loans seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 4.06 percent, 10 basis points lower on the month. There are currently $21 billion in delinquent loans, excluding loans past their balloon date but current on interest payments.

The industrial delinquency rate fell 10 bps to 5.86 percent; the lodging delinquency rate dropped 22 bps to 2.60 percent; the multifamily delinquency rate inched up six basis points to 2.37 percent; the office delinquency rate improved 26 basis points to 4.98 percent; and the retail delinquency rate dipped 15 bps to 5.47 percent.

The rate fell dramatically last month thanks in large part to the payoff of the $3 billion Stuyvesant Town-Peter Cooper Village loan, which sent the rate plunging 597 basis points in January from 8.28 to 2.31 percent. The multifamily remains the best performer following that payoff.

SHARE