Fitch: Net Operating Income Up for All U.S. CMBS Property Types; Hotel Slowing

NEW YORK--()--Net operating income (NOI) for properties within Fitch-rated U.S. CMBS multiborrower deals increased 3% year-over-year in 2015, according to recent findings by Fitch Ratings. This compares to 3.2% of NOI growth in 2014, 2.5% in 2013 and 2.5% in 2012. Year-over-year NOI increases for the major property types from 2014 to 2015 were as follows:

--Multifamily: 5.4% (compared to 3.8% from 2013 to 2014);

--Hotel: 5.1% (8.1%);

--Industrial: 2.8% (1.4%);

--Retail: 1.5% (2.1%);

--Office: 1.1% (1.5%).

Multifamily NOI growth was driven by strong performance in Texas (574 loans totaling $7.34 billion), California (464 loans; $6.64 billion), and Florida (261 loans; $3.81 billion), which reported NOI gains of 6.4%, 8.2%, and 7.6%, respectively. North Dakota reported the largest double digit NOI decline, at over 18%, largely due to the impact of low oil prices.

Hotel properties also led NOI growth, though they have done so at a slower pace compared to last year reflective of the sector reaching its peak in many regional markets. NOI improved by 13% for California (118 loans totaling $2.26 billion) and by nearly 8% for Florida (77 loans; $1.44 billion); however, New York (66 loans; $1.50 billion) and Texas (94 loans; $1.41 billion) reported NOI declines of nearly 6% and 7%, respectively.

Additional information 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: 'http://pages.fitchemail.fitchratings.com/CMBSMktOptin/'

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Contacts

Fitch Ratings
Mary MacNeill
Managing Director
+1-212-908-0785
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004
or
Melissa Che
Director
+1-212-612-7862
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Mary MacNeill
Managing Director
+1-212-908-0785
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004
or
Melissa Che
Director
+1-212-612-7862
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com