BENCHMARK 2021-B23 MORTGAGE TRUST Annual Report - How They Did This Year

I’m putting together a plain-English guide to help you understand how the BENCHMARK 2021-B23 MORTGAGE TRUST performed. Think of this as a "cheat sheet" to help you decide if this investment fits your goals, without the confusing Wall Street jargon.

1. What does this trust do?

This isn't a typical company that makes products. It is a pool of 66 commercial mortgage loans worth about $1.15 billion. These loans are backed by 115 properties across the U.S., including office buildings, retail centers, hotels, and industrial sites. When you buy into this trust, you receive monthly payments from the interest and principal collected from these property owners.

2. Financial performance

The trust acts as a tax-neutral pass-through vehicle. For the year ending December 31, 2025, it paid out about $58.2 million in interest to investors. The trust uses a "waterfall" payment structure: senior investors (Class A) get paid first, followed by others. Independent auditors confirmed that the manager, Wells Fargo Bank, correctly distributed all collected money to the right investors.

3. Major wins and changes: The "Changing of the Guard"

The biggest news this year is a shift in the companies hired to manage these loans to better handle risks as property values change. In early 2025, the trust handed off key roles to new firms:

• 360 Spear: Torchlight Loan Services took over as the special manager in March 2025. They now provide closer oversight of the $160 million loan for this San Francisco office building.
• The Grace Building & 711 Fifth Avenue: These two major properties, representing over $250 million in loans, moved to Trimont LLC for day-to-day management in March 2025.

By hiring specialists like Torchlight, the trust is taking a proactive approach to handle loan issues and protect your investment.

4. Financial health and stability

The formal report for the period ending March 2026 confirms that the original legal "rulebook" remains in place. These contracts, signed with major institutions like JPMorgan Chase, ensure your payments are protected by law. Currently, the trust has a debt service coverage ratio of 2.15x. This means the properties earn more than double the income needed to cover their mortgage payments.

5. Key risks

The main risks are commercial real estate trends and interest rates. The trust has large loans tied to high-profile assets like the MGM Grand, Mandalay Bay, and the Grace Building.

• Refinancing Risk: As loans come due between 2026 and 2028, owners may struggle to refinance at today’s higher interest rates.
• Occupancy Risk: Hybrid work trends could lower income for office buildings like the Grace Building. If tenants leave, property income could drop, which might impact the value of certain bond classes.

6. Future outlook

The trust is in a "maintenance phase." The focus for the next year is how well the new managers handle loans that show signs of stress.

How to use this information: To stay informed, keep an eye on monthly reports for any loans moved to "special servicing," which signals that a borrower is struggling. Your investment’s stability largely depends on property owners keeping occupancy above 85%. If you are looking for a steady income stream, monitor these occupancy levels and the performance of the new management firms as they navigate the upcoming refinancing window.