U.S. CMBS Delinquency Rate Plummets in June Marking First Consecutive Month Drop Since Credit Crisis Began in 2008

All Major Property Types Except Office Improve

NEW YORK--(BUSINESS WIRE)--Trepp, LLC, the leading provider of CMBS and commercial mortgage information, analytics and technology to the global securities and investment management industry, released today its June 2011 U.S. CMBS Delinquency Report (available at http://www.trepp.com).

“The elimination of these troubled loans from the pool reduced the delinquency rate by about 28 basis points. The remaining loans in the index actually saw delinquencies rise about five basis points leading to a net reduction of 23 basis points overall.”

The U.S. CMBS delinquency rate fell significantly in June with the percentage of loans 30+ days delinquent, in foreclosure or REO declining 23 basis points to 9.37%. The decrease marked the first time since the credit crisis began in 2008 that the CMBS delinquency rate fell for two consecutive months. The value of delinquent loans is now $59.3 billion.

“The rate reduction was driven primarily by a sharp spike in loans being resolved with losses, rather than delinquent loans actually curing,” said Manus Clancy, Managing Director of Trepp. "The elimination of these troubled loans from the pool reduced the delinquency rate by about 28 basis points. The remaining loans in the index actually saw delinquencies rise about five basis points leading to a net reduction of 23 basis points overall.”

The Office sector delinquency rate climbed 12 basis points in June - the only major property type to see a rate increase - but remains the best performing major property type at 7.35%. The Retail delinquency rate fell 12 basis points to 7.82%. The Lodging delinquency rate plunged 150 basis points and now stands at 13.87%. The Industrial delinquency rate fell 28 basis points in June, retreating modestly after months of sharp increases, to 11.68%. The Multifamily delinquency rate fell 23 basis points, but remains the worst major property type with a rate of 16.48%.

For additional details, request the U.S. CMBS Delinquency Report at http://www.trepp.com. For daily CMBS and bank trading ideas, credit events and commentary, register for TreppWire or follow us on Twitter.

About Trepp, LLC

Trepp, LLC is the leading provider of CMBS and commercial mortgage information, analytics and technology to the global securities and investment management industries. Trepp provides primary and secondary market participants with the tools and insight they need to increase their operational efficiencies, information transparency and investment performance. For more information visit www.trepp.com.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6784567&lang=en