The delinquency rate1 among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) in June decreased to 7.3% from 7.4% in May. The total delinquent plus current but specially serviced loan rate (collectively, the distress rate) also decreased 31 basis points (bps) to 10.6%. After last month’s 204-bp increase in the distress rate, mixed-use saw a 419-bps decrease following the modification of the JPMCC 2022-NLP Portfolio loan.
In June, CMBS loans totaling $1.6 billion were newly added to the distress rate, of which 47.5% ($771 million) comprised imminent or actual maturity default. The office sector experienced the highest volume of newly distressed loans (47.6%, $772.5 million), followed by retail (19.9%, $322.4 million), and lodging (9.8%, $158.6 million).
In this report, KBRA provides observations across our $338 billion rated universe of U.S. private label CMBS including conduits, SASB, and large loan (LL) transactions.
Key…