New U.S. commercial mortgage-backed securities delinquencies in April were $747 million, a number that is notable because it marks the first drop below $1 billion since February 2009, according to a Fitch Ratings index report released Monday.
“The last time new delinquencies were lower was in October 2008, when they came in at $548 million,” Fitch said in a press release. In February 2009, new delinquencies were $980 million.
The percentage of delinquencies dropped 19 basis points in April to 7.44% from 7.63% the previous month, according to Fitch.
“With many large assets having now made their way through the foreclosure process, CMBS delinquencies stand to drop further, sometimes sharply, as those assets are sold,” said Mary MacNeill, Fitch managing director.
“Resolutions of $1.5 billion outpaced new additions to the index by nearly two-to-one,” the company said. “However, Fitch-rated
The share of real estate owned assets hit a record high as 45% of total delinquencies by balance, with loans greater than $100 million 57% of unpaid balances.
Industrial delinquencies in April were 9.82%, down from 9.41% the previous month; office delinquencies were 8.39%, down from 8.5% the previous month; and multifamily delinquencies were 8.38%, down from 8.91% the previous month.
However, hotel and retail delinquencies rose a bit, with the former at 8.01% compared to 7.71% the previous month; and the latter at 7.1% compared to 7.09% the previous month.
