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KBRA Releases Research ? CMBS Loan Performance Trends: June 2023

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the May 2023 servicer reporting period. The delinquency rate among KBRA-rated U.S. commercial mortgage-backed securities (CMBS) decreased 23 basis points (bps) in June to 3.59% from the prior month. The improvement came on the heels of May's sharp rise, one of the largest monthly increases since the figure last peaked in June 2020. Meanwhile, the total delinquent and specially serviced loan rate climbed higher, piercing 6% with a 12-bp month-over-month (MoM) increase.

In June, a total of $2.2 billion CMBS loans were either transferred to specially servicing or became newly delinquent, 61.7% ($1.4 billion) of which were due to imminent or actual maturity default. Office accounts for over one-half of the newly specially serviced and newly delinquent loans, at 50.8% ($1.1 billion), while retail properties came in second at 22% ($488.9 million).

Other key observations of the June 2023 performance data are as follows:

In this report, KBRA provides observations across our $316 billion rated universe of U.S. private label CMBS including conduits, single-asset single borrower (SASB), and large loan (LL) transactions.

Click here to view the report.

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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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