DBRS Morningstar Finalizes Provisional Ratings on OPG Trust 2021-PORT.

ENPNewswire-October 8, 2021--DBRS Morningstar Finalizes Provisional Ratings on OPG Trust 2021-PORT

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Release date- 07102021 - DBRS, Inc. (DBRS Morningstar) finalized its provisional ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2021-PORT issued by OPG Trust 2021-PORT.

Class A at AAA (sf)

Class X-CP at A (high) (sf)

Class X-NCP at A (high) (sf)

Class B at AA (high) (sf)

Class C at AA (low) (sf)

Class D at A (sf)

Class E at BBB (low) (sf)

Class F at BB (low) (sf)

Class G at B (low) (sf)

All trends are Stable.

The OPG Trust 2021-PORT single-asset/single-borrower transaction is collateralized by the borrower's fee-simple interest in a portfolio of 109 industrial properties totaling more than 14.4 million square feet (sf) across 11 markets in seven states. DBRS Morningstar continues to take a favorable view on the long-term growth and stability of the warehouse and logistics sector, despite the uncertainties and risks that the Coronavirus Disease (COVID-19) pandemic has created across all commercial real estate asset classes. Increased consumer reliance on e-commerce and home delivery during the pandemic has only accelerated pre-pandemic consumer trends, and DBRS Morningstar believes that retail's loss continues to be industrial's gain. The portfolio benefits from both favorable tenant granularity and favorable geographic diversification, both of which contribute to potential cash flow stability over time.

The portfolio is primarily composed of last-mile facilities in urban infill locations with weighted-average (WA) clear heights of 26.5 feet and a WA year built of 1997. The portfolio's WA year generally exceeds the WA year built of recently analyzed industrial portfolios rated by DBRS Morningstar (1992), generally reflecting the newer vintage of properties of the portfolio composition. The average size of properties in the portfolio is 127,544 sf, though properties range broadly in size from 24,030 sf to 535,385 sf. Approximately 44.4% of the portfolio's net operating income is derived from properties between 50,000 sf and 150,000 sf, which further illustrates the last-mile, infill nature of the portfolio. Properties in infill locations tend to have smaller footprints because of the high cost of land, compared with larger distribution facilities that can exceed 1 million sf and are often further away from prominent urban centers.

The portfolio is...

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