March 21–With hotel loans leading the way, the past-due rate on securitized commercial real estate loans fell to the lowest level since 2009.
The 30-day delinquency rate on loans backing commercial mortgage-backed securities was 4.957 percent as of February.
The last time that CMBS delinquency was less than 5 percent was in November 2009, when the rate was 4.71 percent. The rate has improved for nine consecutive months and has been lower 21 of the past 26 months.
In January, the 30-day rate was 5.315 percent, while is t was 7.228 percent in February 2013.
The performance statistics were based on the $748.08 billion in CMBS rated by Morningstar Credit Ratings LLC.
“While roughly $2.2 billion in newly delinquent loans were reported with the February 2014 remittance, a much higher $4.45 billion in loan resolutions (including loan payoffs, liquidations, and returns to performing status) were also reported,” the ratings agency said.
By the end of this year, Morningstar predicts that the 30-day rate will be “well below 4 percent.”
The biggest improvement was made on hotel loans, with the 30-day rate falling 100 basis point from January to 5.4 percent.
An 80-basis-point decline was reported for industrial loans, which had a delinquency rate of 9.9 percent last month.
Next were office loans, with the 30-day rates falling 60 BPS from a month earlier to 6.9 percent.
After that were retail property loans, which saw delinquency drop 30 BPS to 5.4 percent in February, and healthcare property loans, which had a similar decline to 9.1 percent.
Multifamily was the only category to experience deterioration, with the 30-day delinquency rate on multifamily loans rising 10 BPS to 3.0 percent.
