KBRA Releases Research – CMBS Loan Performance Trends: March 2021 Update

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the March 2021 servicer reporting period. The March delinquency rate held steady, at 5.9%, compared to February.

It was a mixed performance by property type. In March, the lodging delinquency rate increased to 17.2% versus 16.7% in the previous month. However, the delinquent and specially serviced rate among lodging loans actually decreased to 21.6% from 21.9%. Multifamily and office also recorded increases in their delinquency rate, to 3.3% from 2.2% and 1.5% from 1.3%, respectively. The increases were driven by a couple of larger newly delinquent New York City loans. Among the other property types, retail showed the largest drop in delinquency rate, which fell 60 basis points (bps) to 8.1%.

In the report, we also provide the conduit delinquency rate by property type for the larger metropolitan statistical areas (MSA) and compare those figures with rates reported six months ago. The overall conduit delinquency rate fell 80 bps to 7.1% over the last six months. However, not all MSAs trended lower, with New York and Chicago recording the highest increase in their delinquency rates (150 bps to 9.6% and 120 bps to 12.1%, respectively). Atlanta and Miami fared better, recording the biggest improvement in their delinquency rates (240 bps to 5.5% and 180 bps to 8.7%). Further, a breakdown by property type showed two notable lodging delinquency rate changes—New York City (rising to 44% from 23.8%) and Atlanta (down to 13.7% from 25.5%) over the six-month period.

Click here to view the report.

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KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.