Late payment on securitized commercial mortgages reversed course in September and resumed a climb that began in March, according to Trepp.
The delinquency rate for U.S. commercial real estate loans in CMBS is now 4.78%, an increase of 10 basis points from August.
The September jump represents the sixth time in the last seven months that the rate has increased after falling to a multi-year low of 4.15% in February. The rate is 50 basis points lower than the year-ago level and 39 basis points lower since the beginning of the year.
The all-time high was 10.34% in July 2012.
In September, CMBS loans that were previously delinquent but paid off with a loss or at par totaled about $850 million. Removing these previously distressed assets from the numerator of the delinquency calculation helped move the rate down by 17 basis points. Almost $500 million in loans were cured last month, which helped push delinquencies lower by another nine basis points. However, almost $1.3 billion in loans became newly delinquent in September, which put 28 basis points of upward pressure on the delinquency rate. A reduction in the denominator due to the maturation of performing loans accounted for the remainder of the difference.
The percentage of seriously delinquent loans (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 4.67%, up nine basis points for the month.
Loans on office buildings are the worst performers; delinquencies in this sector rose 30 basis points in September to 6.33%.The retail delinquency rate added eight basis points, reaching 5.89%. The industrial delinquency rate dropped 29 basis points to 5.28%. Late payments on hotels and other lodging properties increased 10 basis points to 3.25%.
Apartment loans are the best performing major property types, as they have been all year. The multifamily delinquency rate decreased five basis points to 2.33%.