CMBS Delinquencies Dropped in February

Delinquencies on loans that back commercial mortgage securities fell for the second consecutive month in February, to their lowest level in a year, according to a report published Monday.

Real estate loans that make up commercial mortgage-backed securities that were delinquent by at least 30 days or in foreclosure fell to 9.42% for the month, 15 basis points lower than January and 29 basis points fewer than December, says the report by Trepp, a New York-based data firm.

The delinquency rate has fallen 92 basis points since peaking at 10.34% in July, according to Trepp.

The percentage of loans that were delinquent by at least 60 days or in foreclosure fell 15 basis points from January, to 8.96%.

However, the rate of delinquencies on loans backed by industrial properties rose 47 basis points in February from a month earlier, to 11.79%, while the delinquency rate for office buildings increased 15 basis points, to 10.63%.

Delinquencies for loans backed by hotel properties fell 169 basis points, to 10.08%, while the delinquency rate for apartment buildings fell 16 basis points, to 13.27%. The delinquency rate for retail properties was 7.79%, unchanged from January.

There are roughly $51.8 billion in delinquent loans that underpin commercial mortgage-backed securities, according to Trepp. The total excludes loans that are past their balloon date but current on their interest payments.