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CRE Finance World, Summer 2012

CMBS Collateral Performance: Inside the Numbers Chart 6 Chart 8 is the last chart and shows the forward demand of maturing CMBS loans. This one incorporates all of the modifications and extensions Trepp has captured through April 30, 2012. There is still $60 billion of loans to retire this year, with comparable amounts due in 2013 and 2014. Chart 8 U.S. CMBS Maturity Schedule by Property Type Our last two charts look at the size of the financing demands which could face the CMBS market going forward. Chart 7 is the cumulative backlog of outstanding loans. The chart represents the percent of each month’s loan maturities which were Pulling the evidence together, the current collateral performance still outstanding as of March 31, 2012. After dipping slightly in reinforces what we have heard from borrowers and lenders. The the middle of 2011, the level has escalated steeply over the last 3 system continues to process the high volume of distressed assets quarters. Much of the increase is attributable to delinquent loans which are the result of the asset value bubble which burst in 2007. of the 2006 and 2007 vintages, which reached their maturities or The problems of 2011 seem to have passed, and many market par- their final extension options have expired. ticipants are seeing improvement in the competitiveness of CMBS lending. The recovery continues to be slow, and concentrated in Chart 7 the coastal markets. Historical Maturity Backlog (excluding loans with extension options) CRE Finance World Summer 2012 40


CRE Finance World, Summer 2012
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