- What The delinquency or special servicing rate for CMBS loans in Canada edged down to 1.58% in July
- Why Three loans were delinquent and in special servicing as of July
- What next Seven modified loans are maturing in the coming 90 days
The rate of Canadian conduit CMBS loans in delinquency or special servicing ticked down to 1.58% in July from 1.8% a month earlier, Morningstar DBRS said in a new report.
By comparison, the delinquency or special servicing rate in the U.S. was 6.24% in July.
Of the outstanding universe of 476 loans in 18 deals, three loans were delinquent and in special serving in July.
Two of those loans were from a 2019 offering (REAL-T 2019-1). The larger, with an outstanding balance of $34.3m, is backed by WSP Place, an office property in Edmonton.
Morningstar said that after making partial payments toward the amount owed on Sept. 1, 2023, the borrower did not pay in the following three months. The subservicer is following up for outstanding payments.
The other loan, known as the Group Guzzo retail loan, has an outstanding balance of $11.2m. It’s secured by an unanchored retailed property in Terrebonne, Que. According to the report, the special and primary servicers are working with the borrower on a payment plan to service the debt and bring the account current.
The final loan, with a balance of $16.4m, was securitized in a 2022 deal (CCMOT 2022-5). The loan, which is more than 121 days delinquent, is backed by the CALM Building, a mixed-used property in Québec. The servicer is paying advances for the loan, according to Morningstar.
Looking ahead, seven modified loans are maturing in the coming 90 days, the largest of which has an outstanding balance of $22.4m and is in forbearance. Backed by the Portage Place retail centre in Peterborough, Ont., the loan was securitized in IMSCI 2016-7.
Eleven loans were paid off in the July reporting period, the rating agency reported.
Morningstar also noted that of the seven loans scheduled to mature in July, four were paid off. Those that did not pay off include the $16.4m CALM loan, as well as a loan on a Toronto retail property with an outstanding balance of $4.3m, securitized in REAL-T 2020-1. The latter was the month’s only modification and was slated to mature on Aug. 1.
A loan with a $2.4m outstanding balance on Parkside Office, securitized in CMLSI 2014-1, also did not pay off as scheduled on July 1.
