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

DBRS has today confirmed all classes of Multifamily Mortgage Pass-Through Certificates Series 2012-K18 issued by FREMF 2012-K18 Mortgage Trust 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 1.8% of collateral reduction since issuance as a result of amortization, with all of the original 75 loans remaining in the pool. The weighted-average debt service coverage ratio (DSCR) and weighted-average debt yield for the transaction is currently 1.4 times (x) and 9.7%, 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 largest 15 loans in the pool have experienced positive cash flow growth since issuance, reflected in a weighted-average 15.7% improvement over the DBRS underwritten figures.

There is currently one loan on the watchlist, representing 1.2% of the pool balance. EnVision Apartments (Prospectus ID#31, 1.2% of the current pool balance) is secured by a student housing property located near the University of Akron. The loan has been watchlisted for a low DSCR. According to servicer commentary, the borrower has developed a strategy to attract more serious tenants, such as upperclassmen and graduate students, in an effort to limit turnover at the property.

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 watchlist loan and the largest 15 loans in the pool. The April 2014 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.