KBRA Assigns Preliminary Ratings to CONE 2026-DFW3

NEW YORK--(BUSINESS WIRE)--KBRA announces the assignment of preliminary ratings to seven classes of CONE 2026-DFW3, a CMBS single-borrower securitization. The collateral for the transaction is a $1.05 billion non-recourse, first-lien mortgage loan. The fixed-rate loan is expected to have a five-year term and require monthly interest-only payments. The loan will be secured by the borrowers’ fee simple interests in two, adjacent purpose-built data center assets and one excess land parcel located in Allen, Texas approximately 30 miles north of the Dallas CBD. In total, the portfolio contains a gross building area (GBA) of approximately 472,099 sf, of which 190,091 sf is raised floor area and provides 76.5 megawatts (MW) of capacity. As of December 2025, the portfolio was 99.8% leased to 35 unique tenants.

KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction.

The results of our analysis yielded a KBRA net cash flow (KNCF) for the subject of approximately $88.6 million, which is 9.3% below the issuer’s NCF, and a KBRA value of approximately $1.09 billion, which is 30.5% below the appraiser’s as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 96.1%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the properties, and legal documentation review.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• CMBS: North American CMBS Property Evaluation Methodology
• CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1014705