(NEW YORK, NY -- Trepp, LLC, the leading provider of
information, analytics and technology to the CMBS, commercial real estate and
banking markets, released its June 2013 U.S. CMBS Delinquency Report today
(available at http://www.trepp.com/knowledge/research).
The Trepp CMBS
Delinquency Rate posted its lowest level in almost three years in June. The
42-basis-point drop was the second biggest one-month improvement since Trepp
began publishing the monthly rate in the fall of 2009.
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| Manus Clancy |
The delinquency rate for U.S. commercial real estate loans
in CMBS was 8.65% in June. This was the first time the rate has dropped below
9% since November 2010 and the lowest percentage since October 2010.
Loan resolutions
have been the main driver behind the delinquency rate improvement so far in
2013. June was no exception with over a billion dollars in loan resolutions, up
sharply from May’s total of $858 million.
While the removal of these loans from the delinquent
category placed a fair amount of downward pressure on the rate, this was
completely negated by June’s newly delinquent loans, which were approximately
half the total posted in May.
The high number of
loans that cured in June, totaling well over two billion dollars, helped spur
the month-over-month improvement. One large office loan that had been listed as
late last month was marked as current again this month, having been modified at
the end of May. That status change alone contributed a 13 basis points drop in
the delinquency rate.
“The plunge in the
delinquency rate was indicative of continued strength in the commercial real
estate markets,” said Manus Clancy, senior managing director of Trepp.
“However, by the end
of June, investors were asking themselves if this is it for the time being.
“With interest rates and CMBS spreads rising sharply in
June, two of the big drivers of the CRE gains were removed. Over the next six
months, investors will get a good sense of just how enduring the gains of the last
12 months might be.”
For a complete copy of the company’s news release, please
contact:
Great Ink Communications
Eric Gerard, Lindsay Church
212-741-2977
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