Hotel Issuance Drives Down CMBS Delinquencies: Fitch









The U.S. commercial-mortgage backed security delinquency rate fell again in April, fueled by strong new issuance, according to Fitch’s latest index.

The dollar balance of late-pays fell from $17.8 billion in March to $17.75 billion.

Loan delinquencies dropped six basis points from 4.73% in March to 4.67% in April.

The delinquency drop came largely from the high volume of Fitch-rated new issuance in March eight transactions totaling $9 billion and thereby a rise in the index denominator.

Hotel loans, totaling $4.4 billion, mostly via single-borrower transactions, led the high volume of Fitch-rated new issuance in March that drove the delinquency rate down. Eight transactions totaling $9 billion showed a rise in the index denominator.

In April, portfolio runoff totaled $5.2 billion; in March, $5.1 billion.

New CMBS delinquencies finished April at $376 million, up from $357 million in March.

The largest new delinquency, $29 million, was reported as a nonperforming matured balloon loan.

The delinquency rate for hotel loans fell to 5.53% in April from 6.13% in March; for retail, 5.41% down from 5.46%; industrial, 5.29% from 5.57%; multifamily, 5.19% from 5.21%; office, 5% unchanged; mixed use, 2.59% from 2.69%; and for remaining loans 1.21% from 1.17%.

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