CRE Loans are About to Get Real

  • According data provided by Evercore ISI, CRE loans that fund malls, warehouses, offices and other business properties make up to 22% of banks’ portfolios. 17% of those properties are for non owner-occupied properties. Large banks have showed that an average of 2% of their CRE lending portfolio has had loan-loss allowances.

  • Data from Trepp showed that in June, 10% of CMBS loans were past due, just shy of the 2012 peak. However, July dropped slightly landing at 9.6%. 

  • Fifth Third Bancorp told analysts last month that 16% of their commercial mortgage portfolio had received 90-day payment deferrals, however, none of the those borrowers had asked for a second deferral.

  • M&T bank said that requests for forbearance in the second quarter didn’t increase from the first quarter.  Here were the collection rates in their portfolio:

  • 95% at industrial properties

  • 90% at multifamily properties

  • 50% at retail properties (up from 30% in April)

#Covid19 #Loans #CMBS #Trepp

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