The delinquent status of the Extended Stay America loan was a large contributor to a 129 basis-point (bp) increase in overall U.S. commercial mortgage-backed securities (CMBS) delinquencies last month to 6%, according to Fitch Ratings in its weekly U.S. CMBS newsletter.
‘While the Extended Stay loan is a significant contributor to the increase in delinquencies, a steady up-tick in all property types will lead to continued increases in the months ahead,’ says managing director Susan Merrick. ‘Even without the classification of the Extended Stay loan as delinquent, the Index would have increased to 5.1 percent instead of six percent.’
For the fifth month running, each of the five main property types saw an increase in delinquencies. Delinquency rates for those properties compared to last month are as follows:
- Office: 3.06% (versus 2.66%);
- Hotel: 16.44% (versus 9.13%);
- Retail: 4.94% (versus 4.25%);
- Multifamily: 8.33% (versus 7.54%); and
- Industrial: 3.73% (versus 3.57%).
Additional information on Fitch's monthly delinquency results is available in its e-newsletter, titled ‘U.S. CMBS Market Trends."
SOURCE: Fitch Ratings