KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the June 2022 servicer reporting period. The delinquency rate trended up 15 basis points (bps) to 3.01% in June. This is only the second month-over-month (MoM) increase since the delinquency rate reached a COVID-era peak of 8.2% in June 2020. The rate’s future movement is uncertain given the inflationary environment and rising interest rates, but these pressures appear poised to forestall further meaningful improvement over the next several months.

Retail (5.56%; +44 bps), mixed-use (3.78%; +22 bps), and industrial (0.32%; +22 bps) each recorded monthly increases north of 20 bps. Some larger-balanced loans that were previously delinquent this year, but current in May, reappeared in the 30-day bucket this month. However, despite the increase in delinquent loans, the combined percentage of delinquent and specially serviced loans fell 20 bps in June to 4.64%.

Click here to view the report.

Related Publications

• CMBS Servicing and Modifications During COVID: A Two-Year View
• CMBS Trend Watch: May 2022
• CMBS Loan Performance Trends: May 2022
• Property Capitalization Rates in CMBS: A Modest Rise Ahead?

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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