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KBRA Downgrades Four Ratings and Affirms All Other Ratings for COMM 2012-LTRT

6 Feb 2026   |   New York

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KBRA downgrades the ratings of four classes and affirms all other outstanding ratings for COMM 2012-LTRT, a CMBS large loan securitization. The downgrades follow a surveillance review of the transaction and reflect the continued decline in KBRA’s value for the collateral properties, the sponsor’s continuing inability to refinance the loans, the uncertainty surrounding the final resolution of the loans, one of which is in foreclosure, and the ongoing financing challenges facing many mid-tier regional shopping malls. KBRA also considered the potential for interest shortfalls, currently impacting the Class E certificates, to increase while the special servicer works to resolve the loans, as well as principal losses and recoveries from the properties.

The transaction collateral consists of two non-recourse, first lien mortgage loans secured by the fee simple interests in 539,364 sf of Westroads Mall, a 1.1 million sf super-regional mall located in Omaha, Nebraska and 582,332 sf of the Oaks Mall, a 906,832 sf super-regional mall located in Gainesville, Florida. The loans are not cross-collateralized or cross-defaulted and each loan’s sponsor is Brookfield Property Partners. Westroads Mall loan has an outstanding balance of $76.6 million and the Oaks Mall loan has an outstanding balance of $74.0 million, resulting in a combined outstanding principal balance of $150.6 million. Both loans originally matured in October 2022, and each was modified and extended for two years with an extended final maturity in October 2024. Westroads Mall had one additional extension to October 1, 2025. As of the January 2026 remittance period, Westroads’s status is performing matured balloon and Oaks is reported to be in foreclosure.

The loans cannot be extended further. The loan documents specify that in no event may the servicer or the special servicer permit an extension of the maturity date beyond the date that is five years prior to the rated final distribution date of October 1, 2030. If the certificates are not paid off or resolved by the rated final date in October 2030, KBRA will lower its ratings to D (sf).

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. For Westroads Mall, the analysis produced a KNCF of $11.7 million, resulting in a KBRA value of $97.6 million ($182 per sf) and a KLTV of 78.5%. For the Oaks Mall, the analysis produced a KNCF of $7.0 million, resulting in a KBRA value of $46.6 million ($79 per sf) and a KLTV of 158.8%. Based on KBRA’s liquidation value of the Oaks Mall, there is an implied principal loss of approximately $27.6 million to the trust. An appraisal dated November 12, 2025 valued the Oaks Mall at $76.0 million ($129 per sf), a 66.5% decrease from the $227.0 million ($390 per sf) appraised value at closing. The loan was assigned an ARA of $2.9 million in February 2026.

KBRA maintains each loan’s K-LOC status and KPO of Underperform because of the sponsor’s inability to refinance the debt, the decline in the value of both malls since securitization, and the uncertainty regarding the final disposition of the collateral assets.

Details concerning the classes with rating changes are as follows:

  • Class B to B (sf) from BB (sf)
  • Class C to CCC (sf) from B- (sf)
  • Class D to CC (sf) from CCC (sf)
  • Class E to C (sf) from CC (sf)

Details concerning the ratings affirmations are as follows:

  • Class A-2 at A (sf)
  • Class X-A at A (sf)
  • Class X-B at 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.

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