Press Release|CMBS
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KBRA Affirms All Ratings for EQUS 2021-EQAZ

31 Oct 2025   |   New York

Contacts

KBRA affirms ratings for all classes of EQUS 2021-EQAZ, a CMBS single-borrower transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an improvement in KLTV since last review driven by release of eight properties in September 2025; however, this is offset by the remaining collateral experiencing a slight decline in KNCF and KBRA value per square foot since KBRA’s last ratings change in November 2024.

The floating-rate loan was originally structured with an initial two-year term with three one-year extension options and a fully extended maturity date of October 2026. The final extension option has been exercised with the next maturity being October 2026.

At issuance, the transaction was secured by an $805.9 million first-lien whole mortgage loan backed by the borrower's fee simple interests in 73 industrial properties and leasehold interest in one industrial property. The portfolio encompassed 7.3 million sf with properties located in the Phoenix MSA (60 properties, 90.0% of loan amount) and the Tucson MSA (14, 10.0%). In September 2025, eight Phoenix collateral properties ($103.9 million, 12.9% of the issuance ALA) were released at the net sales price of $165.1 million. The transaction is currently secured by a $640.7 million mortgage loan backed by fee simple interests in 65 industrial properties and leasehold interest in one industrial property. The portfolio encompasses 6.4 million sf with properties located in the Phoenix MSA (52 properties, 88.5% of loan amount) and the Tucson MSA (14, 11.5%).

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $46.2 million and a KBRA value of $576.1 million ($90 per sf). The resulting in-trust KLTV is 111.2%, down from 116.9% at last review and 142.2% at securitization. KBRA maintains the KPO of Outperform on the loan.

To access ratings and relevant documents, click here.

Click here to view the report.

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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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