Surprisingly, net operating incomes on almost all yearly vintages of CMBS loans are now near or above underwritten financial levels, according to recent CMBS research.
With the April CMBS bondholder remittance reports came the first big wave of full-year, year-end 2012 property financial data, bringing the percentage of loans reporting to around 30% of the fixed-rate conduit universe, according to Marielle Jan de Beur, managing director and head of Structured Products Research CMBS and Real Estate Research for Wells Fargo Securities.
Based on the loans that have reported year-end 2012 financials, NOI growth was strong in 2012 rising 4.5% on average. For the 2010 and 2011 vintages about 30% of the loans reporting year-end 2012 financials are showing lower NOI than was underwritten. The 2012 vintage is showing a higher percentage, with around 40% of the loans having lower NOI compared to the underwritten amount.
Read more...Damage Undone: Net Incomes for CMBS Property Rebounding to Pre-Recession Levels - CoStar Group