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KBRA Releases Research - CMBS Loan Performance Trends: May 2024KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the May 2024 servicer reporting period. The delinquency rate among KBRA-rated CMBS in May increased slightly to 4.71%, up 4 basis points (bps) from April. Similarly, the total delinquent and specially serviced loan rate (distress rate) increased 16 bps to 8.45%. While most property types experienced an increase in distress rate month-over-month (MoM), office took a slight reprieve with a 28-bp drop to 11.26% after four consecutive months of increases. The decrease was mostly due to the return of One Market Plaza ($850 million in OMPT 2017-1MKT) to the master servicer after the loan was modified, the terms of which included an maturity extension and principal paydown. CMBS loans totaling $2.2 billion contributed to the increase in the distress rate this reporting period, with over two-thirds (67%, $1.5 billion) stemming from imminent or actual maturity default. The office sector experienced the highest volume of newly distressed loans (35.6%, $784.5 million), followed by mixed-use (27.9%, $615.3 million) and retail (23.3%, $513.5 million). Other key observations of the May 2024 performance data are as follows:
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About KBRA KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA's ratings can be used by investors for regulatory capital purposes in multiple jurisdictions. Doc ID: 1004473
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