NEW YORK--(BUSINESS WIRE)--KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the May 2022 servicer reporting period. Driven by a drop in delinquencies across all major property categories, the decline in the overall rate accelerated after a 19-basis point (bp) drop in April and no change in March. This is the first time the rate has fallen below 3% since peaking at 8.2% in June 2020.
Retail (5.12%) and mixed-use (3.56%) reported the most significant month-over-month (MoM) delinquency reductions (down 60 bps and 46 bps, respectively), followed by industrial (0.1%, -23 bps). The resolution, modification, and change in payment status on several regional mall loans helped the retail sector lead the MoM decline for the first time. Notable mall loans include the $152.2 million Mall St. Matthew, which was modified and extended, and the real estate owned (REO) Southland Mall, which formerly secured a $67.5 million loan, and was disposed of without a loss.
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