- What The delinquency rate for securitized loans fell last month
- Why The loan on a retail property was paid off
- What next Nine modified loans are coming due within 90 days
The delinquency rate for securitized loans in Canada dropped to 1.3% in December 2024 from 1.9% the prior month, Morningstar DBRS reported.
The drop came as a $26.9m loan on a retail property in Peterborough, Ont., known as Portage Place, was paid off. The debt had been securitized in the IMSCI 2016-7 offering.
As of December, the outstanding universe comprised 421 loans from 17 deals with a balance of $3.44bn. Just two loans with a balance of $45.1m were delinquent.
One of the loans, with a current balance of $34.1m, backs an office property in Edmonton. The other, worth $12.8m, is secured by a retail property in Terrebonne, Qué. Both are more than 121 days delinquent and were securitized in the REAL-T 2019-1 deal.
Morningstar said that nine modified loans are coming due in the next 90 days.
The largest, with an initial balance of $17.5m and a current balance of $16m, is the Regency of Lakefield Retirement loan, secured by an apartment property in Lakefield, Ont. It was securitized in REAL-T 2020-1. The loan was modified on Sept. 1 and was slated to mature on Dec. 1, 2024.
The Portage Place loan was the largest of the eight loans paid off in December. The next largest was the 1015 Golf Links Road loan, with an initial balance of $19.2m and securitized in REALT 2014-1, followed by the 480 Hespeler Road loan ($15.5m, REALT 2016-2), the Markham Town Square loan ($13.95m, IMSCI 2015-6) and the Iona Plaza Mississauga ($12.5m, CMLSI 2014-1).
Of the nine loans slated to mature in December, two were paid off at maturity, six are outstanding and one was prepaid.
