NEW YORK — U.S. CMBS delinquencies marginally improved in April. The Trepp CMBS Delinquency Rate ticked down one basis point in April, following an unchanged rate in March. The delinquency rate for U.S. commercial real estate loans in CMBS is now 5.57 percent, 87 basis points lower than a year ago.
Trepp’s research shows that more than $700 million in loans were cured last month, while CMBS loans that were previously delinquent but paid off either at par or with a loss totaled almost $600 million.
Removing these previously distressed assets from the numerator of the delinquency calculation helped move the rate down by 11 basis points. Almost $1.9 billion in loans were defeased in April, not including loans from agency deals.
In the last two years, the delinquency rate has fallen 21 times. In April, $1.35 billion in loans became newly delinquent, which put 26 basis points of upward pressure on the delinquency rate.
The Numbers
The percentage of loans seriously delinquent (60+ days delinquent, in foreclosure, REO, or nonperforming balloons) is now 5.44 percent, three basis points higher for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 5.90 percent — up two basis points from March.
There are currently $29.5 billion in delinquent loans. This number excludes loans that are past their balloon date but are current on their interest payments.
To give a historical perspective, one year ago, the U.S. CMBS delinquency rate was 6.44 percent. Six months ago, the rate was 6.14 percent.
One year ago, the rate of loans seriously delinquent was 6.25 percent. Six months ago, the rate of loans seriously delinquent was 5.93 percent.
Property Type Analysis
The industrial delinquency rate increased 15 basis points to 7.83 percent. The lodging delinquency rate improved two basis points to 4.18 percent. Lodging remains the best performing major property type, according to Trepp.
The multifamily delinquency rate moved up 19 basis points to 8.92 percent. Trepp notes that apartment loans remain the worst performing among the major property types.
The office delinquency rate increased five basis points to 6.11 percent. The delinquency rate for retail loans shed six basis points to 5.45 percent.
New York-based Trepp is a provider of information, analytics and technology to the CMBS, commercial real estate and banking markets.
— Danielle Everson