Press Release|CMBS

KBRA Affirms All Ratings for LIFE 2022-BMR2

15 May 2024   |   New York


KBRA affirms all of its outstanding ratings for LIFE 2022-BMR2, a $2.88 billion CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight worsening in credit metrics in part due to a decline in occupancy since securitization. However, the magnitude of the change in KBRA value and KLTV does not warrant rating changes at this time.

The transaction collateral is a non-recourse, first lien, floating-rate mortgage loan with an initial two-year term and three one-year extension options. The loan requires interest-only payments based on one-month SOFR plus an initial spread of 1.95%. The borrower has entered into an interest rate cap agreement with a strike rate of 5.50% for the initial loan term. The initial loan term expired on May 9, 2024. According to the master servicer, the borrower has provided notice of its intent to exercise the first one-year extension option.

The loan is secured by the borrowers’ fee simple, leasehold, or leased fee interests in 24 assets, including 18 properties with a mix of laboratory and office uses (86.6%), four office properties (11.3%), one land parcel (1.8%), and one multifamily development (0.3%). The assets are primarily leased by life sciences tenants that utilize their space for office and/or laboratory use. The portfolio properties collectively encompass over 5.1 million sf. Occupancy has dropped to 81.0% from 94.0% at securitization.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $205.3 million and a KBRA value of $2.75 billion ($539 per sf). The resulting KLTV is 104.4%, compared to 101.4% at last review and 101.2% at securitization. KBRA maintains a KPO of Perform on the loan.

To access rating and relevant documents, click here.

Click here to view the report.

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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004290

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