KBRA Assigns Preliminary Ratings to Pembroke Property Finance 3 DAC
17 Jan 2025 | London
KBRA UK (KBRA) is pleased to announce the assignment of preliminary ratings to six classes of Pembroke Property Finance 3 DAC, a €343.6 million multi-borrower CMBS securitisation collateralised by 110 loans secured by 234 properties. The loans are part of 68 different risk groups, and each risk group may contain one or more loans to a related borrower.
The collateral properties are located throughout the Republic of Ireland, with a concentration in Dublin (41.7%). The pool has exposure to most major property types, with five types representing more than 10.0% of the pool balance: retail (25.2%), industrial (20.9%), hotel (20.7%), multifamily (14.4%), and office (13.4%). The loans have principal balances ranging from €12,672 to €19.7 million, with an average size of €3.1 million.
KBRA analysed this transaction primarily using our European CMBS Rating Methodology, which includes our evaluation of the underlying collateral properties' financial and operating performance, to determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value. On an aggregate basis, KNCF was 24.5% less than the issuer cash flow. KBRA capitalisation rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 41.9% less than third party appraisal values. The pool has an in-trust KLTV of 104.9%.
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