Fitch: U. S. CMBS Delinquencies Up Sharply
OREANDA-NEWS. U. S. CMBS delinquencies rose for a third straight month, according to the latest index results from Fitch Ratings.
Loan delinquencies increased 20 basis points (bps) in June to 3.18% from 2.98% a month earlier. The sharp increase was chiefly due to the addition of three loans, each greater than $100 million. Further, the portfolio runoff of $5.7 billion also exceeded Fitch-rated new issuance volume of $5 billion from seven transactions in May, causing a decrease in the index denominator. The largest new delinquencies were the Skyline Portfolio ($474.6 million within Fitch-rated transactions), the $136.3 million JQH Hotel Portfolio and the $101.5 million Southern Hills Mall.
Relative to the new delinquencies in June, the largest resolutions were substantially smaller in balance and were all less than $40 million. The largest resolutions included the $38.1 million Severance Town Center, the $37.5 million Capital Plaza, and the $35.8 million Steeplegate Mall.
Current and previous delinquency rates by property type are as follows:
--Retail: 4.64% (from 4.56% in May);
--Office: 4.59% (from 4.15%);
--Hotel: 4.22% (from 3.47%);
--Multifamily: 0.83% (from 0.87%);
--Industrial: 4.13% (from 3.41%);
--Mixed Use: 3.94% (from 4.08%);
--Other: 0.79% (from 0.79%).
Additional information is available in Fitch's weekly e-newsletter, 'U. S. CMBS Market Trends', which also contains recent rating actions and an overview of newly released CMBS research, including Fitch presales and Focus reports. The link below enables market participants to sign up to receive future issues of the E-newsletter:
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