A CRED iQ Preliminary Analysis

DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE

Deal Overview

The BMO 2024-5C6 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of approximately $675.2 million. The deal is jointly managed by prominent financial institutions BMO, Citigroup, Deutsche Bank, SG Americas, Goldman Sachs, and UBS. The deal is collateralized by 32 loans and secured by 46 properties across a variety of sectors, including multifamily, office, and retail. The strategic geographic distribution of these properties ensures balanced exposure across major markets, thereby reducing regional risks and enhancing overall portfolio stability. The deal’s conservative underwriting practices are reflected in its weighted average loan-to-value (LTV) ratio of 58.7%, and the weighted average mortgage interest rate is 6.67%, which provides attractive returns for investors.

Key Metrics

The loan pool for BMO 2024-5C6 is structured to include a mix of amortizing and interest-only loans, with 3.9% of the mortgage pool having scheduled amortization, ensuring gradual principal repayment and enhanced cash flow stability. The remaining 96.1% of the pool consists of interest-only payments throughout the loan term, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.62x, signifying strong cash flow relative to debt obligations and underscoring the financial robustness of the underlying properties. Moreover, the weighted average net operating income (NOI) debt yield of 11.3% highlights the high earning potential of the assets, further reinforced by rigorous underwriting standards.

Geography & Property Types

A key strength of the BMO 2024-5C6 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Multifamily properties, including garden, mid-rise, independent living, and student housing subtypes constitute 28.9% of the total balance, while office properties account for 23.5% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Boston, and Miami further mitigates risk by reducing exposure to regional economic downturns.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

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