KBRA Releases Single-Borrower SFR Performance Snapshot
NEW YORK--(BUSINESS WIRE)--May 16, 2018--Kroll Bond Rating Agency (KBRA) releases a performance snapshot for the KBRA-rated universe of outstanding single-borrower, single-family rental (SFR) securitizations. The 25 securitizations covered in the report have an outstanding principal balance of $14.9 billion, of which $14.1 billion is represented by 145 securities that have been rated by KBRA. None of the securities issued in connection with these transactions have experienced interest shortfalls or principal losses.
As of March 2018, five SFR operators own more than 180,000 homes, of which 91,934 are included in the 25 securitizations covered in the report. KBRA performed the monitoring utilizing information obtained from the trustee and servicer for each deal to determine the performance metrics of the underlying collateral. The process also leveraged information from third-party sources including CoreLogic and RentRange. The credit and portfolio metrics were compiled using various sources, which included April 2018 remittance reports and detailed property-level data files provided by the servicer.
The publication also provides key takeaways, including the following:On average the transactions have experienced 21 months of seasoning, which ranged from one to 43 months. Contractual rental rates (rent per property) have increased by 7.2%, on average, across all of the outstanding transactions since issuance. The current vacancy rate across all portfolios range from 2.3% to 7.2%, with an average of 4.4%. Tenant retention rates have averaged 70.2% across all outstanding transactions. Home price appreciation, as measured using zip code-level CoreLogic Home Price Index (HPI) data, have appreciated by 14.0%, on average, since the issuance of the respective deals. Loan-to-value (LTV) ratios across all transactions have continued to decline since the issuance average of 73.7% to a current implied LTV of 64.7%.
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
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CONTACT: Kroll Bond Rating Agency
Daniel Tegen, 646-731-2429
Akshay Maheshwari, 646-731-2394
Nitin Bhasin, CFA, 646-731-2334
Senior Managing Director
Keith Kockenmeister, 646-731-2349
Senior Managing Director
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: Kroll Bond Rating Agency
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PUB: 05/16/2018 01:24 PM/DISC: 05/16/2018 01:24 PM