NEW YORK--(BUSINESS WIRE)--U.S. CMBS delinquencies climbed slightly higher last month largely due to a shrinking index denominator, according to the latest results from Fitch Ratings.
Loan delinquencies rose three basis points (bps) in September to 3.18% from 3.15% a month earlier. Resolutions of $541 million edged out new delinquencies of $511 million. However, delinquencies rose overall due to a $9 billion portfolio runoff that significantly exceeded Fitch-rated new issuance volume of $5 billion from six transactions in August.
The largest resolution was the $51.9 million Merritt Square Mall asset (MSCI 2006-IQ11), a 478,040 sf regional mall located in Merritt Island, FL, which became real-estate owned in June 2016. The largest new delinquency, which contributed to the majority of the 13-bp increase in the office delinquency rate, was the $68.75 million Dulles Executive Plaza loan (BSCMS 2006-TOP24).
Current and previous delinquency rates by property type are as follows:
--Retail: 4.77% (from 4.79% in August);
--Office: 4.68% (from 4.55%);
--Hotel: 3.88% (from 3.85%);
--Multifamily: 0.79% (from 0.79%);
--Industrial: 4.17% (from 4.05%);
--Mixed Use: 3.94% (from 4.01%);
--Other: 0.75% (from 0.72%).
Additional details on the 10 largest loans prepaid during the open period this quarter is available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends', which also contains recent rating actions and an overview of newly released CMBS research, including Fitch presales and Focus reports. The link below enables market participants to sign up to receive future issues of the E-newsletter:
Additional information is available at www.fitchratings.com.
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