Fitch Affirms GAHR 2015-NRF
KEY RATING DRIVERS
The affirmations reflect the relatively stable performance and strong occupancy of the assets in the pool. Fitch reviewed the September 2015 OSARs and rent rolls, which was the most recently available financial performance information for the collateral.
The collateral consists of a diverse pool of 214 properties, consisting of 142 medical office buildings, 58 healthcare properties NNN-leased to third party operators, and 14 healthcare properties (skilled nursing facilities, senior housing, and long term acute care hospitals) subject to operating leases that are tied directly to free cash flow from the underlying operations (RIDEA Properties). The properties are located in 31 states.
Since issuance, one property has been released resulting in pay down of \\$5.4 million to the senior classes. Occupancy remains stable for the overall pool. Medical office properties, which comprise 56% of the pool on a square foot basis, had a servicer reported Sept. 2015 occupancy of 90.2% compared with an issuance level of 91.5%. All other properties remain 100% leased to single tenant occupants, per the servicer.
Fitch expects to review the transaction again when year-end 2015 financial statements become available.
The Rating Outlook for all classes remains Stable. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics.
Additional information on rating sensitivity is available in the report 'GAHR Commercial Mortgage Trust 2015-NRF' (Feb. 3, 2015), available at www.fitchratings.com.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following classes:
--\\$440.6 million A-FL1 'AAAsf'; Outlook Stable;
--\\$148.6 million class A-FL2 'AAAsf'; Outlook Stable;
--\\$119 million class A-FX 'AAAsf'; Outlook Stable;
--\\$321.5 class X-FX* at 'AAsf'; Outlook Stable;
--\\$202.4 million class B-FX at 'AAsf'; Outlook Stable;
--\\$151.2 million class C-FX at 'Asf'; Outlook Stable;
--\\$192.2 million class D-FX at 'BBB-sf'; Outlook Stable;
--\\$215.5 million class E-FX at 'BB-sf'; Outlook Stable;
--\\$180 million class F-FX at 'B-sf'; Outlook Stable.
*Interest only class.
Fitch does not rate classes X-EXT and G-FX.