Fitch: CMBS Late Pays Fall Broadly

The U.S. CMBS Loan Delinquency Index declined 4 basis points in February to 1.23%, marking the first time in several years that delinquencies in all four major property types fell simultaneously, Fitch Ratings has reported.The rating agency said declines are often the result of resolutions through asset sales of real estate owned properties that result in losses. In the office and multifamily sectors, the amount of new defaults was slightly below the amount of resolved delinquents, Fitch reported, whereas in the industrial and retail sectors the declines resulted largely from the resolution of larger loans. The 16% decline in the dollar balance of industrial loans was largely due to the resolution of two industrial properties in North Carolina, both of which involved selling properties at significant losses. A similar pattern emerged in the retail sector, where Fitch attributed a 7% decline to the sale of several large loans that were REO properties. Hotel delinquencies, which have improved steadily over the past year, rose 3.6%.