Fitch: U.S. CMBS Delinquencies Stable in July
Loan delinquencies moved just one basis point lower in July to 4.53% from 4.54% a month earlier. The dollar balance of late-pays fell $70 million to $17.10 billion from $17.17 billion in June.
July resolution and delinquency activity was low, with resolutions of just $485 million edging out new delinquencies of $455 million. This compares with $780 million of resolutions and $876 million of new delinquencies in June. Fitch-rated new issuance volume of $5.1 billion in June (five transactions) was outpaced by $5.7 billion in portfolio runoff, causing a decrease in the index denominator.
The largest new delinquency in July was the $54.6 million 2 Rockledge Centre loan (BACM 2006-2), which failed to pay off at its July 1, 2015 maturity date. Meanwhile, the largest resolution reported last month was the originally $67.5 million Green Oak Village Place loan (BACM 2007-5), which was modified in June.
Current and previous delinquency rates by property type are as follows:
--Retail: 5.41% (from 5.44% in June);
--Hotel: 5.34% (from 5.20%);
--Multifamily: 4.90% (from 5%);
--Industrial: 4.87% (from 4.65%);
--Office: 4.73% (from 4.69%);
--Mixed Use: 3.61% (from 3.68%);
--Other: 1.12% (from 1.15%).
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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