Trepp released the Q1 2022 Life Insurance Report which revealed that asset classes in the LifeComps portfolio were impacted by a negative total return.
NEW YORK, June 1, 2022 /PRNewswire-PRWeb/ — Trepp, a leading provider of data, information and technology solutions for the structured finance, commercial real estate and banking markets, has released the Performance Report of the first quarter of 2022 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 since the start of the year. The lingering impact of the pandemic, such as supply chain disruptions and inflation, has only been exacerbated by global headlines.
Asset classes in the LifeComps portfolio were hit by a negative total return in 01 2022. Multifamily properties were the hardest hit, with a total return of -5.33% achieved in 01. Commercial real estate and hotel loans posted a lower realized loss of -3.08% and -3.32%, respectively.
“Uncertainty in office real estate is at the forefront of investor concerns. Reported office occupancy in LifeComps was just 89%, second lowest after hotels at 46%,” said Jennifer Dimano, partner of Trepp. “Almost two-thirds of the loans that have been sold in LifeComps’ portfolio are made up of office property loans. Investor sentiment regarding office space remains uncertain as downsizing becomes a growing trend among office occupiers .”
The LifeComps portfolio has depreciated by 5.77% in 12 months. Despite asset depreciation, interest payments still exceed interest due. Over the next few months, interest income will boost total returns.
The LifeComps Commercial Mortgage Index remains the only published benchmark for CRE mortgages based on actual performance data and cash flows collected from participating life insurance companies. Access our report to see the latest results for this historical performance index: https://www.trepp.com/instantly-access-q1-2022-lifecomps-report
The LifeComps™ Commercial Mortgage Index is the only published benchmark for the private commercial mortgage market based on actual mortgage loan cash flow and performance data that has been collected quarterly from life insurance companies participants since 1997. LifeComps provides a quantifiable index of investment performance and serves as a benchmark for commercial real estate mortgages held by individuals.
Trepp, founded in 1979, is the leading provider of data, information and technology solutions for the structured finance, commercial real estate and banking markets. Trepp provides primary and secondary market players with the solutions and analytics they need to increase operational efficiency, information transparency and investment performance. From its offices in New York, San Franciscoand London, Trepp offers its clients products and services to support trading, research, risk management, monitoring and portfolio management. Trepp’s subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is 100% owned by Daily Mail and General Trust (DMGT).
Riley CoxTrepp Inc., 2127541010, [email protected]
SOURCE Trepp Inc.