KBRA Assigns Ratings to BMO 2025-C12
12 Jun 2025 | New York
KBRA is pleased to announce the assignment of ratings to 16 classes of BMO 2025-C12, a $640.8 million CMBS conduit transaction collateralized by 36 commercial mortgage loans secured by 80 properties. The collateral properties are located throughout 30 MSAs, of which the three largest are New York (18.4% of pool balance), Dallas - Fort Worth (10.5%) and Portland (10.0%). The pool has exposure to most major property types, with six types representing more than 10.0% of the pool balance: retail (35.7%), office (14.1%), mixed-use (13.0%), multifamily (12.3%), self storage (12.1%), and other (10.0%). The loans have in-trust principal balances ranging from $2.7 million to $64.0 million for the largest loan in the pool, Washington Square (10.0%), a 1.0 million sf portion of a 1.2 million sf, super-regional mall located in Portland, Oregon. The five largest loans, which also include 32 Old Slip - Leased Fee (10.0%), La Gran Plaza (10.0%), Dadeland Centre I & II (8.0%), and Cape Cod Mall (6.9%), represent 44.8% of the initial pool balance, while the top 10 loans represent 63.6%.
KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of the underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our North American CMBS Property Evaluation Methodology. On an aggregate basis, KNCF was 12.6% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 39.3% less than third party appraisal values. The pool has an in-trust KLTV of 87.7% and an all-in KLTV of 89.2%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan that are then used to assign our credit ratings.
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