Press Release|CMBS
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KBRA Downgrades Five Ratings and Affirms All Other Ratings for LIFE 2022-BMR2

12 May 2026   |   New York

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KBRA downgrades the ratings of five classes and affirms all other ratings for LIFE 2022-BMR2, a $2.88 billion CMBS single-borrower transaction. The downgrades follow a surveillance review of the transaction and reflect the continued decline in KNCF and KBRA value since closing as well as the difficulty the borrower may face refinancing the existing loan at its final maturity in May 2027 without additional equity.

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 a spread of 1.83%. The initial loan term expired on May 9, 2024. The borrower exercised its final one-year extension option extending maturity to May 2027. The borrower entered into an interest rate cap agreement with a strike rate of 5.50% for the extension period, unchanged from the initial term.

The loan is secured by the borrowers’ fee simple, leasehold, or leased fee interests in 24 assets: 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 70.8% 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 $184.3 million and a KBRA value of $2.54 billion ($497 per sf). The resulting KLTV is 113.3%, compared to 108.6% at last review and 101.2% at securitization. KBRA identified the loan as a K-LOC and maintains a KPO of Underperform on the loan.

Details concerning the classes with ratings changes are as follows:

  • Class B to A (sf) from AA- (sf)
  • Class C to BBB (sf) from A- (sf)
  • Class D to BB (sf) to BBB- (sf)
  • Class E to BB- (sf) from BB+ (sf)
  • Class HRR to B (sf) from BB- (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.

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