DBRS Morningstar Monthly Highlights - July Remittance
DBRS Morningstar is pleased to resume the Monthly Highlights report, which covers CMBS market activity and performance for conduit and SASB loans (excluding agency loans). In July:-- The delinquency rate set another postpandemic low, edging down eight basis points (bps) to 5.68%.
-- The delinquency rate has declined for 13 consecutive months and is down 409 bps from a year ago.
-- The special-servicing unpaid principal balance (UPB) and special-servicing rate fell to postpandemic lows of $44.8 billion and 8.02%, respectively, but sit well above postcrisis lows of $13.41 billion and 2.59% set in February 2020.
-- The payoff rate of maturing CMBS loans rose 8.6 percentage points to 55.9% in July from 47.3% in June but has remained below 60% since February because of maturing hotel and retail loans that face steep refinancing hurdles.
-- The year-to-date payoff rate stands at 53.1%, slightly ahead of 2020’s 48.6% payoff rate. More than $3.7 billion is scheduled to mature through the end of the year and we expect the payoff rate to finish the year between 50% and 55%, based on depressed cash flow for many hotels and retail properties.
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