{"id":1004494942,"date":"2020-11-23T07:22:38","date_gmt":"2020-11-23T15:22:38","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004494942"},"modified":"2020-11-23T07:22:38","modified_gmt":"2020-11-23T15:22:38","slug":"life-company-commercial-mortgage-returns-stabilize-trepp","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/","title":{"rendered":"Life Company Commercial Mortgage Returns Stabilize: Trepp"},"content":{"rendered":"
\"\"<\/a>

Image by Gerd Altmann via Pixabay.com<\/em><\/p><\/div>\n

Commercial mortgage investments held by life insurance companies saw a 1.71 percent total return in the third quarter, according to the latest LifeComps Report from Trepp.<\/p>\n

\n

READ ALSO<\/strong>: CMBS Deals Continue in Face of Uncertainty<\/a><\/p>\n

\n

The change (1.00 percent from income and 0.71 percent from appreciation) marks a noteworthy fall from the 4.58 percent return seen in the second quarter. Still, the total return in the third quarter was higher than in the first quarter (-1.00 percent), or the fourth quarter of 2019 (0.55 percent).<\/p>\n

After two consecutive quarters with large swings in returns, the volatility in valuations caused by the pandemic appears to have receded, according to Russell Hughes, head of data consortia initiatives at Trepp.<\/p>\n

\u201cWhile interest rates remain near record lows, the persistence of credit concerns continue to dampen appreciation returns,\u201d Hughes added.<\/p>\n

Regarding those credit concerns, the overall commercial mortgage delinquency rate was unchanged from the second quarter, at 0.06 percent. \u201cLenders are continuing to grant deferrals and forbearance,\u201d the report noted.<\/p>\n

\"\"<\/a>

Russell Hughes, Vice President of Product Management – Banking, Trepp. Image courtesy of Trepp<\/em><\/p><\/div>\n

In the third quarter, commercial mortgages totaling an outstanding balance of $3.9 billion had $33 million in interest capitalized. This was a small increase from the second quarter, when loans with an outstanding balance of $3.7 billion had $31 million in interest capitalized.<\/p>\n

Of the major property types, multifamily predictably performed best over the past 12 months, with a total return of 7.18 percent, followed by industrial at 6.48 percent and office at 5.77 percent. Unsurprisingly, mortgage returns on retail properties trailed substantially, at 3.52 percent, and lodging mortgages were for practical purposes at zero, just 0.01 percent, also over the past 12 months.<\/p>\n

The LifeComps Index tracks about 7,500 active loans with an aggregate principal balance of $149 billion. The weighted average duration is 5.29 years, and the average reported loan-to-value is 50 percent.<\/p>\n

Some additional context <\/h2>\n

As of year-end 2019, U.S. life insurers held commercial mortgage assets (not including mortgage-backed securities) totaling $555 billion, or 7.3 percent of the industry\u2019s total assets of more than $7.5 trillion, according to the American Council of Life Insurers (based on data compiled from the National Association of Insurance Commissioners).<\/p>\n

By comparison, the U.S. life insurance industry\u2019s investments in actual real estate totaled only about $41.5 billion, or 0.5 percent of the total.<\/p>\n

Read the full report by Trepp Inc.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Credit concerns continue to dampen appreciation, according to the firm\u2019s latest index. <\/p>\n","protected":false},"author":882,"featured_media":1004479957,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,45527,23891,21742],"tags":[48950,35305],"class_list":["post-1004494942","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-keyword-optimized","category-national","category-latest","tag-coronavirus","tag-trepp-inc"],"acf":[],"yoast_head":"\nLife Company Commercial Mortgage Returns Stabilize: Trepp - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Life Company Commercial Mortgage Returns Stabilize: Trepp\" \/>\n<meta property=\"og:description\" content=\"Credit concerns continue to dampen appreciation, according to the firm\u2019s latest index.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-23T15:22:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Business-finance-abstract.-Image-by-Gerd-Altmann-via-Pixabay.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/\",\"name\":\"Life Company Commercial Mortgage Returns Stabilize: Trepp - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Business-finance-abstract.-Image-by-Gerd-Altmann-via-Pixabay.jpg\",\"datePublished\":\"2020-11-23T15:22:38+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Business-finance-abstract.-Image-by-Gerd-Altmann-via-Pixabay.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Business-finance-abstract.-Image-by-Gerd-Altmann-via-Pixabay.jpg\",\"width\":800,\"height\":620,\"caption\":\"Image by Gerd Altmann via Pixabay.com\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Life Company Commercial Mortgage Returns Stabilize: Trepp\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\",\"name\":\"Scott Baltic\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96\",\"caption\":\"Scott Baltic\"},\"description\":\"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Life Company Commercial Mortgage Returns Stabilize: Trepp - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/","og_locale":"en_US","og_type":"article","og_title":"Life Company Commercial Mortgage Returns Stabilize: Trepp","og_description":"Credit concerns continue to dampen appreciation, according to the firm\u2019s latest index.","og_url":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2020-11-23T15:22:38+00:00","og_image":[{"width":800,"height":620,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Business-finance-abstract.-Image-by-Gerd-Altmann-via-Pixabay.jpg","type":"image\/jpeg"}],"author":"Scott Baltic","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/","url":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/","name":"Life Company Commercial Mortgage Returns Stabilize: Trepp - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Business-finance-abstract.-Image-by-Gerd-Altmann-via-Pixabay.jpg","datePublished":"2020-11-23T15:22:38+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Business-finance-abstract.-Image-by-Gerd-Altmann-via-Pixabay.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Business-finance-abstract.-Image-by-Gerd-Altmann-via-Pixabay.jpg","width":800,"height":620,"caption":"Image by Gerd Altmann via Pixabay.com"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/life-company-commercial-mortgage-returns-stabilize-trepp\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Life Company Commercial Mortgage Returns Stabilize: Trepp"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Business-finance-abstract.-Image-by-Gerd-Altmann-via-Pixabay.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004494942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/882"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004494942"}],"version-history":[{"count":5,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004494942\/revisions"}],"predecessor-version":[{"id":1004495095,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004494942\/revisions\/1004495095"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004479957"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004494942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004494942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004494942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}