KBRA announces the assignment of preliminary ratings to six classes of VTR 2025-STEM, a CMBS single-borrower securitization.

The collateral for the transaction is a $475.0 million fixed rate, interest-only mortgage loan. The fixed loan has a four-year term and requires monthly interest-only payments based on an assumed interest rate of 5.75%. The loan is secured by the borrower’s fee simple interest in the Drexel Health Science Building and The Assembly properties. The portfolio assets have a combined 811,025 sf of space, which includes 455,079 sf of office and laboratory space at Drexel Health Science Building, and 355,946 sf of laboratory, R&D and office space at The Assembly property. Drexel Health Science Building (52.0% of Allocated Loan Amount) is located in Philadelphia, Pennsylvania, approximately two miles west of the city’s CBD. The Assembly (48.0%) is located in Pittsburgh, Pennsylvania, approximately two miles east of the city’s CBD, and consists of two attached life science buildings with an adjacent parking garage. As of September 2025, the portfolio was 100.0% leased to four unique tenants.

KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our North American CMBS Property Evaluation Methodology and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction and its ESG Global Rating Methodology, to the extent deemed applicable.

The results of our analysis yielded a KBRA net cash flow (KNCF) for the portfolio of approximately $42.0 million, which is 13.0% below the issuer’s NCF, and a KBRA value of approximately $494.4 million, which is 30.6% below the appraiser’s aggregate as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 96.1%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• CMBS: North American CMBS Property Evaluation Methodology
• CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011377

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