NEW YORK, May 1, 2012 — Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets, released its April 2012 U.S. CMBS Delinquency Report today (available at http://www.trepp.com/knowledge/research).
The delinquency rate for U.S. commercial real estate loans in CMBS rose 12 basis points in April to 9.80%. The value of delinquent loans is now $59.3 billion.
Loans that were newly delinquent — about $3.8 billion in total — put upward pressure on the rate of about 64 basis points. In addition, the increase in the delinquency rate was driven by a big increase in office loans, as all other major property types improved in April. The office delinquency rate is up 82 basis points to a new all-time high of 10.23% — the first time the office rate has ever hit double digits.
Following two months of relatively modest loan loss resolutions ($1 billion or less), special servicers picked up steam in April with over $1.4 billion in loss resolutions in the month. The removal of these loans from the delinquent loan category attributed about 24 basis points of downward pressure on the delinquency rate.
Loans that were cured put further downward pressure on the rate of 33 basis points. Retail delinquencies dropped 26 basis points to 7.98% and remained the best performing major property type.
"Delinquencies are up and that is not really a big surprise. With the 2007 five-year loans reaching their maturity, we expected that many would find refinancing hard to come by. The good news is that the 2007 originations were heavily weighted toward the first half of the year. While the next few months could be bumpy, there should be sunnier skies for the delinquency rate later in the year," said Manus Clancy, senior managing director at Trepp.
Chart: www.ereleases.com/pic/Trepp-Delinquency-Chart-April-2012.jpg
For additional details, request the April U.S. CMBS Delinquency Report at http://www.trepp.com. For daily CMBS and bank trading ideas, credit events and commentary, register for TreppWire or follow us on Twitter.
About Trepp, LLC
Trepp, LLC is the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the tools and insight they need to increase their operational efficiencies, information transparency and investment performance. For more information, visit www.trepp.com.
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