But most of the increase was down to one portfolio loan
For only the fourth time in 4 years, there was an increase in the Trepp CMBS Delinquency Rate.
The June reading was up 18 basis points to 2.84%, although that is 111 basis points below the year-ago rate. The monthly increase was also largely down to one particular portfolio loan.
“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 CMBS delinquency rate for the retail sector was up 14 basis points to 4.44% and retail remains the worst performing property type, but the Innkeepers loan pushed the lodging sector’s rate up 99 basis points to 2.41%.
Multifamily delinquency rate declined five basis points to 2.11%, while office inched up 4 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.
