KBRA Affirms All Ratings For MHP 2021-STOR

KBRA affirms all outstanding ratings for MHP 2021-STOR, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight improvement in performance since securitization but also a decline since last review. However, the magnitude of the change in KNCF and KLTV does not warrant rating adjustments at this time.

The transaction is secured by a $468.0 million first-lien whole mortgage loan backed by a portfolio of 57 self-storage properties with 4.0 million sf of space that operate under the Extra Space Storage brand. The floating-rate, interest-only loan has an initial term of two years and allows for three one-year extension options. The borrowers may release properties and pay down the mortgage loan but have not done so to date. The sponsor recently exercised its second option and extended the loan to July 9, 2025.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $30.2 million and a KBRA value of $355.2 million ($89 per sf). The resulting in-trust KLTV is 131.8%, compared to 121.1% at last review and 138.6% at securitization. KBRA maintains a KPO of Perform on the loan.

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