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Trepp Releases Q1 2022 Life Insurance Commercial Mortgage Returns Report, Revealing Signs of Uncertainty Ahead

·3 min read

Trepp released the Q1 2022 Life Insurance Report which revealed that asset classes in the LifeComps portfolio have been hit with a negative total return.

NEW YORK, June 1, 2022 /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 first quarter 2022 returns report for its life insurance commercial mortgage index. Instantly download the report here: https://www.trepp.com/instantly-access-q1-2022-lifecomps-report

The Trepp LifeComps portfolio has felt the effects of major market events that have occurred since the start of the year. The lingering impact of the pandemic, such as supply chain disruptions and inflation, was only exacerbated by global headlines.

Asset classes in the LifeComps portfolio have been hit with a negative total return in 01 2022. Multifamily properties took the hardest hit, with a -5.33% total return realized in 01. Retail and hotel property loans had a lower realized loss of -3.08% and -3.32%, respectively.

"Office property uncertainty is at the forefront of investors' minds. Office occupancy reported in LifeComps was only 89%, the second lowest to hotels at 46%," said Jennifer Dimaano, Trepp Associate. "Nearly two-thirds of the loans that have been sold in the LifeComps portfolio are comprised of office property loans. Investor sentiment regarding office space remains uncertain as downsizing becomes a growing trend amongst office occupiers."

The LifeComps portfolio depreciated 5.77% in a 12-month change. Despite the depreciation of assets, interest payments are still surpassing the interest that is due. In the upcoming months, interest income will drive total returns.

The LifeComps Commercial Mortgage Loan Index remains the only published benchmark for CRE mortgages based on actual performance data and cash flow collected from participating life insurance companies. Access our report to see the latest findings from this historic performance index: https://www.trepp.com/instantly-access-q1-2022-lifecomps-report

For more information, contact Trepp at press@trepp.com or 212.754.1010. Visit http://www.Trepp.com for more information on LifeComps.

About LifeComps™

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 1997. LifeComps provides a quantifiable investment performance index and serves as a benchmark for privately held commercial real estate mortgages.

About Trepp

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).

Media Contact

Riley Cox, Trepp Inc., 2127541010, press@trepp.com

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SOURCE Trepp Inc.