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KBRA Upgrades Three Ratings and Affirms All Other Ratings for ILPT 2019-SURF

20 Feb 2026   |   New York

Contacts

KBRA upgrades the ratings of classes B, C, and HRR, and affirms all other ratings for ILPT 2019-SURF, a $390.0 million CMBS single-borrower transaction. The rating actions follow a surveillance review of the transaction, which has exhibited improved performance since securitization as evidenced by higher KNCF and lower KLTV. The rating changes and affirmations also reflect the location of the underlying properties near Honolulu International Airport and Honolulu Harbor, as well as the portfolio’s strong historical occupancy.

The transaction collateral is a $390.0 million portion of a $650.0 million non-recourse, first lien mortgage loan secured by the borrower’s leased fee interests in approximately 9.3 million sf of land underlying 177 predominantly industrial properties, and its fee simple interests in eight industrial properties (295,388 sf) and one surface parking lot (30,000sf). All of the assets are located in Honolulu, Hawaii. The loan sponsor is Industrial Logistics Properties Trust (Nasdaq: ILPT), a REIT formed in 2017 to own and lease industrial and logistics properties throughout the U.S.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced KNCF of $73.7 million and a KBRA value of $1.1 billion ($117 per sf). KBRA revised its KPO to Outperform from Perform due to improved performance as a result of base rent increases.

Details concerning the classes with ratings changes are as follows:

  • Class B to AAA (sf) from AA+ (sf)
  • Class C to AAA (sf) from AA- (sf)
  • Class HRR to AA (sf) from A+ (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

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 www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1013590