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KBRA: CMBS Delinquencies Have Ebbed for 14 Consecutive Months
Kroll Bond Rating Agency (KBRA) said the CMBS delinquency rate slipped 30 basis points to 4.6% from a month earlier. This is the 14th consecutive month where the rate has declined or was flat from the previous month since peaking in June 2020 at 8.2%, said KBRA.
Lodging and retail recorded the largest decreases in their delinquency rates, to 11.3% from 11.9% and 7.4% from 8%, respectively. Similar to recent months, the decline in lodging delinquencies was sizable, with 26 lodging loans totaling $486.7 million becoming current or resolving.
The disposition of six loans totaling $130.7 million contributed to the decline in retail delinquencies. The subject retail loans were resolved with an average loss severity of 44.6%.
Multifamily was the only property type that recorded an increase in delinquency. The rate rose to 1.9% from 1.6%, driven by five loans totaling $109.4 million that became newly delinquent. However, all but one of the five were already in special servicing prior to this month’s delinquency, according to KBRA.
- ◦Financing
