DBRS Confirms All Classes of FREMF 2012-K18 Mortgage Trust, Series 2012-K18

DBRS has today confirmed all classes of FREMF 2012-K18 Mortgage Trust, Series 2012-K18 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class X1 at AAA (sf)
-- Class X2-A at AAA (sf)
-- Class B at A (sf)

The trends on all classes are Stable.

The pool consists of 75 fixed-rate loans secured by 79 multifamily properties. The transaction has experienced 0.7% of collateral reduction since issuance as a result of amortization, with all of the original 75 loans remaining in the pool. The pool benefits from strong origination practices and strong sponsorship, with many borrowers being repeat borrowers of Freddie Mac. There are currently no loans on the watchlist or in special servicing. As of the March 2013 remittance, loans representing 71.1% of the pool balance are reporting partial or full-year 2012 financials. The weighted-average debt service coverage ratio (DSCR) and weighted-average debt yield for these loans are 1.57x and 9.48%, respectively. In comparison, the weighted-average DBRS DSCR and the weighted-average DBRS debt yield at issuance were 1.39x and 8.5%, respectively.

The pool is relatively concentrated by size, compared to other ten-year K-series transactions, with the largest 15 loans representing 46.9% of the current pool balance; however, the pool is considered quite diverse in terms of geographic location. Twelve states are represented in the largest 15 loans. The weighted-average DSCR and debt yield for these loans is 1.80x and 9.4%, respectively, as of the most recent 2012 reporting period. The weighted-average occupancy rate for these loans is 94.0%.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction, including details on the remaining loans in the pool. The April 2013 Monthly Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.