Apr 05 - U.S. CMBS delinquencies rose for the first time since last summer, according to the latest index results from Fitch Ratings.
Late-pays climbed 13 basis points (bps) to 8.43% from 8.30% a month earlier. Helping to drive the increase was the continued underperformance of the $360 million Solana loan, now officially classified as 60-days delinquent. Prior to March, overall delinquencies had declined every month after hitting a high water mark of 9.01% in July of last year.
Office loan delinquencies, as expected, are continuing their steady upward trajectory following a 31 bp increase to 7.99%. Late-pays on industrial CMBS also rose (37 bps) and are now the second-highest delinquency rate among all property types (behind multifamily) at 10.91%.
In contrast, performance for hotel CMBS is continuing to turn for the better, with delinquencies falling another 40 bps to 10.35%.
Current and prior month delinquency rates for each of the major property types are as follows:
--Multifamily: 12.61% (from 13.30% in February);
--Industrial: 10.91% (from 10.54%);
--Hotel: 10.35% (from 10.75%);
--Office: 7.99% (from 7.68%);
--Retail: 7.23% (from 7.15%).
Additional information is available in Fitch’s weekly e-newsletter, ‘U.S. CMBS Market Trends’, which also contains recent rating actions and an overview of newly released CMBS research, including Fitch presales and Focus reports. The link below enables market participants to sign up to receive future issues of the E-newsletter: