European CMBS Maturity Repayment Index changed only marginally during September on the back of full and partial redemptions totaling EUR140.9 million($187mn).
According to Fitch Ratings the repayment index increased to 41.7% from 41.1% in the previous month, with only two loans reached their maturity dates during the month.
Two of the four loans scheduled to mature in September were fully redeemed well ahead of their respective maturity dates, one through a prepayment (Grosvenor Chaussee d'Antin, FCC NACREA) and the other through a repurchase by the originator (Loan 4589, Morrigan CMBS 1), explained Fitch analysts.
Both of the other loans that reached their maturity dates - Henderson 2 (Weiterstadt), EuroProp (EMC-VI) and Brisk, Victoria Funding (EMC-III) - failed to meet their payment obligations. The former is in a one-month standstill period, while the latter has been transferred to special servicing for workout.
"While both redemptions have had a positive effect on the Index, their impact is exaggerated due to the small number of loans that matured during the month," explained Fitch analysts.
This trend should be reversed in October, when 31 loans are scheduled to reach either a first or an extended maturity date. "This is consistent with the deterioration in the Index observed earlier in the year following the months of January, April and July, when a large number of loans also matured," said Fitch.