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Wednesday, 10 July 2019

CMBS Universe Sees Continued Improvement in Delinquency in June

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Commercial Real Estate Direct Staff Report 

A total of $13.4 billion of CMBS loans, or 2.85 percent of the $469.1 billion universe, was more than 30-days late with their payments last month. That's unchanged from May.  

But because the size of the overall CMBS universe has shrunk, to $469.1 billion from $472.5 billion, the percentage of loans that are more than 30-days late now stands at 2.84 percent, up from 2.66 percent in May

But one large CMBS 2.0 loan, a $754 million mortgage against a portfolio of 47 hotels with 6,089 rooms owned by the former Innkeepers USA, was classified last month as being delinquent as it hadn't been retired by its June maturity. Nonetheless, the loan, securitized through Morgan Stanley Capital I Inc., 2017-IKPR, has three available extension options and the first is in the process of being exercised, according to servicer notes compiled by Trepp LLC.  

The portfolio last year operated at a 77 percent occupancy level and generated $81.3 million of net cash flow, which is nearly 2.5 times the amount needed to fully service the loan, whose coupon is pegged to Libor plus 225.4 percent. 

If that loan is excluded, the health of the CMBS 2.0 universe, which is comprised of loans securitized since 2010, has improved, as the volume of delinquent loans would have been $3.55 billion, or 0.79 percent of the total 2.0 universe. The legacy universe, which totals $20.3 billion of loans, down from $20.7 billion in May, includes $9.1 billion of delinquents, down from $9.2 billion a month earlier. 

Comments? E-mail Orest Mandzy, or call him at (267) 327-4281. 

 

 



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Additional Info

  • Syndicate to Realpoint: No
  • Subject: CMBS - non-deal specific (CMBS-G), Commercial MBS (CMBS)
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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