Dec. 19 (Bloomberg) -- Delinquencies on industrial-property loans that were packaged into commercial mortgage-backed securities rose to a 22-year high amid a decline in rental income from warehouses, Standard & Poor’s said.
The delinquency rate for U.S. industrial CMBS as of Sept. 30 was 12.05 percent, the New York-based rating company said today in a statement. Net operating income has fallen at 47 percent of properties used as collateral for industrial CMBS since the securities were issued, S&P said.
Delinquencies began rising in 2008 as U.S. gross domestic product contracted for four consecutive quarters, according to S&P. Industrial properties are the only segment of CMBS where delinquencies are at historic highs, S&P said today.
“It is our view that the growing volume of maturing loans, paired with declining NOI for many, will prevent industrial delinquencies from improving in the first half of 2012,” Larry Kay, an S&P analyst, said in the statement.
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