KBRA Releases Single-Borrower SFR Performance Snapshot
17 May 2018 - 3:24AM
Business Wire
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%.
For further details, please see a copy of the report, entitled
Single-Borrower SFR: Performance Snapshot, published at
www.kbra.com.
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About KBRA and KBRA
Europe
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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Kroll Bond Rating AgencyAnalytical Contacts:Daniel Tegen,
646-731-2429Directordtegen@kbra.comorAkshay Maheshwari,
646-731-2394Associate Directoramaheshwari@kbra.comorNitin Bhasin,
CFA, 646-731-2334Senior Managing Directornbhasin@kbra.comorKeith
Kockenmeister, 646-731-2349Senior Managing
Directorkkockenmeister@kbra.com