KBRA Releases Research – CMBS Loan Performance Trends: August 2021

NEW YORK–(BUSINESS WIRE)–#KBRA–Kroll Bond Rating Agency (KBRA) releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the August 2021 servicer reporting period. The August delinquency rate fell to 4.6%, down from 4.9% in July. This is the 14th consecutive month where the rate has declined or was flat from the previous month since peaking in June 2020, at 8.2%.

Lodging and retail recorded the largest decreases in their delinquency rates, to 11.3% from 11.9% and 7.4% from 8%, respectively. Similar to recent months, the decline in lodging delinquencies was sizable, with 26 lodging loans totaling $486.7 million becoming current or resolving. The disposition of six loans totaling $130.7 million contributed to the decline in retail delinquencies. The subject retail loans were resolved with an average loss severity of 44.6%. Multifamily was the only property type that recorded an increase in delinquency. The rate rose to 1.9% from 1.6%, driven by five loans totaling $109.4 million that became newly delinquent. However, all but one of the five were already in special servicing prior to this month’s delinquency.

Click here to view the report.

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• KBRA CMBS Loan Performance Trends: July 2021
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