- What The CMBS delinquency rate was flat in January month over month
- Why Only two loans were delinquent in the period
- What next Nine modified loans are coming due through April
The January delinquency rate for all outstanding securitized loans in Canada was unchanged from the prior month at 1.3%, Morningstar DBRS said in a new report.
The outstanding universe comprised 416 loans from 17 deals with a total value of $3.38bn. Only two loans — with a total balance of $45.1m — were delinquent. They were each securitized in REAL-T 2019-1.
The larger loan, with a balance of $34m, is backed by an office property in Edmonton. Morningstar noted that a forbearance agreement was executed in June 2024 extending the loan to 2026. The servicer also confirmed that interest shortfalls continue to accumulate.
The other delinquent loan, worth $11m, is secured by a retail asset in Terrebonne, Qué. The servicers are working with the borrower on a payment plan to service the debt and bring the account current, Morningstar said.
Eight loans were due to mature in January. Three were paid off at maturity, four remain outstanding and one was prepaid. According to the report, the largest loan that was not repaid is worth $12.6m and was securitized in CCMOT 2022-5. The next largest loan, in REAL-T 2021-1, is worth $10.5m.
Morningstar identified nine modified loans that are coming due in the 90 days after the end of January. Two have balances above $10m: a $10.7m loan on a self-storage facility in Ottawa (REALT 2014-1), and a $10.2m loan backed by the Hilton Mississauga Meadowvale (REALT 2015-1).
