Trepp data reported by CRE Daily on October 26 shows $3.04B across 130 performing Agency floating-rate apartment loans in Texas with DSCR below 1.0x. That is 25.3% of performing floating-rate balance, at a 0.77x weighted average.
Loans packaged in 2021 and 2022 account for 87.5% of delinquent floater dollars. Their delinquency rate is 11.33%, versus 1.35% for other vintages. Floating-rate loans are 21.3% of Texas Agency apartment balance but account for 55.8% of its $1.35B delinquent balance.
The reported average coupon is 5.74% for floaters overall, versus 4.66% for fixed-rate debt. Of 28 delinquent floaters, only 15 report coverage; all 15 are below 1.0x, averaging 0.72x. Texas holds $150.10B of securitized apartment debt, second to California.
Sub-1.0x coverage means reported property income is below debt service. It does not establish delinquency: these 130 loans remain performing. Vintage concentration is a risk indicator, but the report does not establish its causes. Reserves or new capital may cover an income gap; failure to meet payments can lead to default. Maturity and extension terms, property rents and occupancy were not reported.
Key Takeaways
- The reported Texas data shows higher delinquency in 2021–22 floating-rate vintages; it does not establish that geography or other property risks are irrelevant.
- $3.04B across 130 performing Agency floaters has sub-1.0x DSCR, representing 25.3% of performing balance.
- Delinquency and weak coverage measure different populations. Maturities, extension terms, rents and occupancy remain unreported.
CRE Daily — Texas floating-rate apartment loans, October 26, 2026 (Trepp data as reported) · https://www.credaily.com/newsletters/texas/issue/a-quarter-of-texas-floating-rate-apartment-loans-cant-cover-their-debt/
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