NEW YORK, Sept. 15, 2021 /PRNewswire-PRWeb/ -- Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets has released the second quarter 2021 returns report for its life insurance commercial mortgage index. Instantly download the report here: https://www.trepp.com/instantly-access-q2-2021-lifecomps-report.
Commercial mortgage investments held by life insurance companies posted a positive total return of 2.29% in the second quarter of 2021. After a relatively slow decline in the last three quarters, the positive total return can be attributed to the significant increase in reported loan values, rising to 1.28% in Q2 from -1.77% in Q1.
"With the economy running hot, the market anticipates changes impacting consumer wages and ramifications on commercial real estate investments, said Jennifer Dimaano, Trepp Data Analyst. "The more prolonged impact of structural changes from COVID-19 on CRE investments remains unclear, but as the economy reopens, the market looks to be heading toward normalcy in the near term."
Over 12-month returns, lodging properties performed best with a total return of 6.47% as summer travel resumed in Q2.
Office property charge-offs declined from the Q1 balance of $1.5 million, signaling the beginning of a return to the office. Cumulative charge-offs on the portfolio loans increased $3.5 million from Q1 2021 to Q2 2022 compared to other commercial property loans
Approximately 8,000 active loans are in the LifeComps™ Index, with an aggregate principal balance of $155 billion. The weighted average duration is 5.19 years. To see the full report, click here: https://www.trepp.com/instantly-access-q2-2021-lifecomps-report.
The LifeComps™ Commercial Mortgage Loan Index is the only published benchmark for the private commercial mortgage market based on actual mortgage loan cash flow and performance data which has been collected quarterly from participating life insurance companies since 1966. LifeComps provides a quantifiable investment performance index and serves as a benchmark for privately held commercial real estate mortgages.
Trepp, founded in 1979, is the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York, San Francisco, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT).
Hayley Keen, Trepp, 2127541010, firstname.lastname@example.org