- What Three CMBS loans were delinquent at the end of October, Morningstar DBRS found
- Why A loan on an Ontario retail property failed to pay off at maturity
- What next Six other loans matured on Oct. 1 that were not paid off
The delinquency rate for all outstanding securitized loans in Canada ticked up to 1.9% in October from 1.2% the month prior, Morningstar DBRS reported.
As of the end of October, there were 446 outstanding loans from 17 transactions totaling $3.62bn. Three of those loans – one each in Alberta, Ontario and Quebec – were delinquent.
The Ontario delinquency stems from a matured nonperforming loan on a retail property in Peterborough. The loan, known as Portage Place, secured in the IMSCI 2016-7 offering, had an issuance trust balance of $26.9m and a current balance of $22.2m.
It was modified in July 2020 and matured on Oct. 1. The property was fully occupied at the end of 2023 and had net cash flow of $3.1m, translating to a debt-service coverage ratio of 1.72x.
Six other loans matured on Oct. 1 that were not paid off. The second largest after Portage Place is the 1015 Golf Links Road loan, secured by a retail property in Ancaster, Ont. The issuance balance was $19.2m, and the current balance is $15.3m. The debt was secured in REALT 2014-1.
The other loans that were not paid off are: 480 Hespeler Road loan in REAL-T 2016-2, Spring Garden Place loan in CMLSI 2014-1, Newmarket Plaza loan in REALT 2014-1, Chateau Ste-Marie multifamily loan in REALT 2020-1 and 320 Yonge Street in REALT 2014-1.
