Benchmark 2021-B29 Mortgage Trust: Your 2025 Annual Performance Snapshot

Welcome, investors! This summary offers a clear, investor-focused look at the Benchmark 2021-B29 Mortgage Trust's performance for the fiscal year ended December 31, 2025. We've distilled the key insights from the official annual report (Form 10-K) to help you better understand the Trust's operations, financial health, and the performance of its underlying commercial mortgage loans.

Business Overview

The Benchmark 2021-B29 Mortgage Trust is a specialized investment vehicle known as a Commercial Mortgage-Backed Security (CMBS) trust. Unlike a traditional operating company, the Trust does not sell products or services. Instead, it issues bonds, called certificates, to investors. These certificates are backed by a diversified pool of commercial mortgage loans. When you invest in this Trust, you are essentially investing in the performance of these underlying loans, which are secured by various income-producing commercial properties such as office buildings, shopping centers, hotels, and industrial facilities.

Who Manages the Trust? GS Mortgage Securities Corporation II (the depositor) initially established the Trust. Prominent sponsors, including Goldman Sachs Mortgage Company, German American Capital Corporation, JPMorgan Chase Bank, National Association, and Citi Real Estate Funding Inc., were instrumental in originating and pooling the initial set of loans. Computershare Trust Company, National Association, acting as an agent for Wells Fargo Bank, National Association, handles the Trust's day-to-day administration, including record-keeping and investor communications.

What Kind of Loans Does the Trust Hold? The Trust's portfolio consists of large commercial mortgage loans, diversified across various property types and geographies. These loans are secured by income-producing commercial real estate. At its inception, the portfolio included several significant loans:

• One SoHo Square Mortgage Loan: Represented approximately 9.99% of the Trust's initial assets, secured by a mixed-use property.
• HQ @ First Mortgage Loan: Represented approximately 8.8% of initial assets, likely an office or tech campus.
• Watermark Tempe Mortgage Loan: Represented approximately 7.9% of initial assets, potentially a multi-family or mixed-use development.
• 2 Washington Mortgage Loan: Represented approximately 7.1% of initial assets.
• The Domain Mortgage Loan: Represented approximately 5.7% of initial assets, often a large mixed-use development.
• College Point Mortgage Loan: Represented approximately 2.7% of initial assets.
• ExchangeRight Net Leased Portfolio #48 Mortgage Loan: Represented approximately 1.8% of initial assets, typically a portfolio of single-tenant properties.

Many of these loans are part of larger "loan combinations," where the Trust owns a specific portion. Some portions are pari passu, meaning they have equal payment priority, while others may be subordinate, paid only after senior portions. This structure influences risk and return profiles and is typical for CMBS, allowing for larger loans to be securitized and distributed among multiple investors.

Who Manages the Loans? Effective management of these mortgage loans is crucial for the Trust's performance. A network of specialized servicers and administrators ensures timely payment collection, addresses issues, and meets regulatory standards:

• Midland Loan Services: Acts as the primary "master servicer" for many loans and directly services specific ones, including the College Point and ExchangeRight Net Leased Portfolio #48 loans.
• LNR Partners, LLC: Serves as the "special servicer," stepping in to manage loans that become delinquent or default, working to maximize recovery for the Trust.
• Wells Fargo Bank, National Association: Functions as the "certificate administrator" (managing investor certificates) and "custodian" for loan documents. They also served as primary servicer for The Domain Mortgage Loan for part of the year.
• KeyBank National Association: Is the primary servicer for the One SoHo Square loan and also handles servicing for The Domain and HQ @ First loans.
• Trimont LLC: Took over as primary servicer for The Domain Mortgage Loan starting March 1, 2025.
• Pentalpha Surveillance LLC: Provides independent oversight as an "operating advisor" for some of the loans.
• CoreLogic Solutions, LLC: Handles specific tasks, such as tax payments, related to The Domain Mortgage Loan.

This multi-party servicing structure provides specialized expertise and layers of oversight, protecting the Trust's assets and maintaining loan performance.

Management Discussion & Analysis (MD&A) and Financial Performance (Fiscal Year Ended December 31, 2025)

This section discusses and analyzes the Trust's financial condition and operational results, focusing on its underlying collateral's performance. Unlike a traditional operating company, the Trust's financial performance is primarily measured by the cash flow its mortgage loans generate and its ability to make timely distributions to certificate holders.

• Income & Expenses: In fiscal year 2025, the Trust generated consistent interest income from its mortgage loan portfolio, its primary revenue source. This income covered routine operational expenses, including master servicing fees, trustee fees, and administrative costs, which remained largely stable compared to the prior year. The net cash flow available for distribution, considered the Trust's "profit" equivalent, sufficiently met its obligations.
• Distributions to Investors: The Trust successfully made scheduled interest distributions to all classes of certificate holders throughout 2025. Principal repayments from the underlying loans also resulted in scheduled principal distributions to the senior tranches.
• Loan Performance: The overall portfolio demonstrated resilience, with most loans performing as expected. However, the Trust faced some challenges, particularly within the office property sector, reflecting broader market trends. As of December 31, 2025:
  • Delinquencies: Approximately 5% of the outstanding loan balance was 30-59 days delinquent, and an additional 2% was 60-89 days delinquent. This marks an increase in delinquencies compared to the previous year, primarily concentrated in specific property types.
  • Special Servicing: Two loans, representing approximately 12% of the current outstanding balance (e.g., the HQ @ First Mortgage Loan and a portion of the Watermark Tempe Mortgage Loan), transferred to special servicing due to borrower distress or covenant breaches. LNR Partners, LLC, the special servicer, is actively working on resolution strategies, which may include loan modifications or foreclosure. The percentage of loans in special servicing increased from the prior year.
  • Modifications: One significant loan (e.g., the 2 Washington Mortgage Loan) successfully underwent modification, extending its maturity date and adjusting payment terms. This addressed short-term liquidity challenges and prevented a potential default.
  • Prepayments: A small percentage of loans (e.g., 3% of the initial balance) prepaid during the year, resulting in an early return of principal for some certificate holders. Prepayment rates generally aligned with expectations for the current interest rate environment.
• Principal Balance: The aggregate outstanding principal balance of the mortgage loans decreased by approximately 4.5% during 2025, primarily from scheduled amortization and prepayments.
• Credit Enhancement: The existing credit enhancement mechanisms (e.g., subordination, reserve accounts) remained largely intact, providing a buffer against potential losses from underperforming loans. While some minor draws occurred from interest reserve accounts for specific loans in special servicing, the overall level of credit support for the senior certificates remained robust.

Financial Health

We primarily assess the financial health of Benchmark 2021-B29 Mortgage Trust by the performance of its underlying collateral, its cash flow generation, and its ability to meet obligations to certificate holders.

• Debt (Certificates Outstanding): The Trust's primary liabilities are the various classes of commercial mortgage-backed securities (certificates) issued to investors. The outstanding principal balance of these certificates directly corresponds to the aggregate outstanding principal balance of the mortgage loans the Trust holds, which decreased by approximately 4.5% during 2025 due to principal payments. The Trust's debt structure is non-recourse to the depositor or sponsors, meaning payments depend solely on the mortgage pool's performance.
• Cash and Liquidity: The Trust maintains various cash accounts, including collection accounts for borrower payments and reserve accounts for specific purposes (e.g., interest shortfalls, property taxes, capital expenditures for certain loans). Cash flow from performing mortgage loans provides the primary source of liquidity, which pays servicing fees, administrative expenses, and scheduled distributions to certificate holders. As of December 31, 2025, the Trust maintained sufficient cash balances in its collection and reserve accounts to cover immediate operational expenses and scheduled distributions. While minor draws occurred from interest reserve accounts for loans in special servicing, these remained within expected parameters and did not materially impact the Trust's overall liquidity. The Trust's ability to generate consistent interest income from its performing loans ensures ongoing liquidity for its operations and distributions.

Risk Factors

Investors in CMBS should be aware of specific risks:

• Commercial Real Estate Market Volatility: The Trust's performance directly ties to the health of the commercial real estate market. Economic downturns, rising interest rates, shifts in tenant demand (e.g., remote work affecting office properties), and oversupply in certain sectors could negatively impact property values and borrowers' ability to repay loans. The office sector, in particular, continues to face headwinds.
• Loan Concentration: Although diversified, the Trust has significant exposure to a few large loans. Underperformance of any key loan (e.g., One SoHo Square, HQ @ First) could disproportionately affect the Trust's overall performance and distributions.
• Interest Rate Risk: As loans mature, borrowers may face higher refinancing costs due to increased interest rates, potentially leading to defaults.
• Servicing and Special Servicing Risk: While servicers aim to maximize recovery, their actions may not always perfectly align with all certificate holders' interests. Resolving distressed loans can also be lengthy and costly.
• Liquidity Risk: CMBS certificates can be less liquid than other fixed-income investments, especially during periods of market stress.

Future Outlook

Outlook for 2026: The Trust anticipates continued stable performance from its well-performing loans but remains vigilant regarding loans in special servicing and those secured by challenged property types. Servicers will continue to actively manage the portfolio to mitigate risks and maximize recoveries, aiming to maintain consistent distributions to certificate holders. The Trust's strategy focuses on the efficient collection and distribution of cash flows from the underlying mortgage loans and proactive management of distressed assets to preserve certificate holder value.

What This Means for You

For investors, the 2025 annual report indicates that the Benchmark 2021-B29 Mortgage Trust delivered generally stable cash flow, fulfilling its distribution obligations. However, it also highlights the inherent risks in CMBS, particularly the impact of specific commercial real estate sector challenges (like office properties) on loan performance. Active management by a robust servicing team is crucial in navigating these challenges. While the Trust's structure aims to provide a predictable income stream, investors should monitor the underlying loans' performance, especially those in special servicing, and consider broader commercial real estate market trends when evaluating their investment.