NEW YORK–(BUSINESS WIRE)–#KBRA–KBRA assigns preliminary rankings to eight lessons of Progress Residential 2022-SFR5 (Progress 2022-SFR5) single-family rental pass-through certificates.
Progress 2022-SFR5 is a single-borrower, single-family rental (SFR) securitization that can be collateralized by a $632.3 million mortgage secured by first precedence mortgages on 2,273 income-producing single-family houses. The fixed-rate mortgage requires curiosity funds solely over its five-year time period. The topic transaction would be the 24th KBRA-rated securitization issued by Progress Residential.
The underlying single-family rental properties are situated in or close to 25 Core Based mostly Statistical Areas (CBSAs) throughout 12 states. The highest-three CBSAs signify 45.8% of the portfolio and embrace Atlanta (24.5%), Jacksonville (11.3%), and Las Vegas (10.0%). The combination BPO worth of the underlying houses is $748.3 million, yielding an LTV of 84.5%. KBRA adjusted the BPOs, which yielded an mixture worth of $710.9 million, which represents a 5.0% haircut to the nominal BPO worth. The ensuing LTV primarily based on KBRA’s adjusted BPO worth was 88.9%.
KBRA utilized its U.S. Single-Household Rental Securitization Methodology to judge the transaction. The methodology leverages parts of KBRA’s industrial mortgage-backed securities and residential mortgage-backed securities standards resulting from the truth that the collateral underlying an SFR transaction has each industrial and residential traits. Because the properties generate a money movement stream from tenant rental funds, CMBS methodologies have been used to find out the mortgage’s chance of default. To find out loss given default, KBRA assumed the underlying collateral properties can be liquidated within the residential property market.
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Additional info on key credit score issues, sensitivity analyses that think about what components can have an effect on these credit score rankings and the way they may result in an improve or a downgrade, and ESG components (the place they’re a key driver behind the change to the credit standing or score outlook) might be discovered within the full score report referenced above.
An outline of all considerably materials sources that have been used to organize the credit standing and data on the methodology(ies) (inclusive of any materials fashions and sensitivity analyses of the related key score assumptions, as relevant) utilized in figuring out the credit standing is on the market within the Data Disclosure Type(s) situated right here.
Data on the that means of every score class might be situated right here.
Additional disclosures regarding this score motion can be found within the Data Disclosure Type(s) referenced above. Further info relating to KBRA insurance policies, methodologies, score scales and disclosures can be found at www.kbra.com.
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Fred Perreten, Managing Director
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Akshay Maheshwari, Senior Director
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Samuel O’Connell, Analyst (Lead Analyst)
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Keith Kockenmeister, Senior Managing Director (Ranking Committee Chair)
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