NEW YORK, NY – Trepp, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its June 2019 US CMBS Delinquency Report.
The Trepp CMBS Delinquency Rate saw a rare increase in June, although the number comes with a footnote. The June reading increased 18 basis points to 2.84%. The spike represents only the fourth monthly increase over the last two years. The delinquency rate is down 111 basis points year over year.
“The Innkeepers portfolio loan behind the $754 million single-borrower CLNS 2017-IKPR deal showed up as a non-performing loan that was past its maturity,” said Trepp Senior Managing Director, Manus Clancy. “However, the loan has three embedded one-year extension options that servicer watchlist notes indicate that the borrower is exercising and we expect the loan to appear as current again next month. If the Innkeepers loan had been reported as current, the June delinquency rate would have been 2.68% - a two basis point increase month over month.”
The retail delinquency rate climbed 15 basis points to 4.44% and remains the worst performing major property type. The lodging delinquency reading jumped 99 basis points, as a result of the Innkeepers loan, to 2.41%. Multifamily delinquency rate declined five basis points to 2.11%, while office inched up four basis points to 3.02%.
The CMBS 2.0+ delinquency rate climbed 22 basis points to 0.96% in June, with the percentage of 2.0+ loans that are seriously delinquent up 20 basis points from May to 0.84%. CMBS 1.0 delinquency rate was 44.60% in May, an increase of 23 basis points. The percentage of 1.0 debt that is seriously delinquent was also 44.60%, as there were no legacy loans marked as exactly 30 days delinquent.
The full report can be accessed at Trepp.com