BMO 2023-5C2 Mortgage Trust Annual Report - How They Did This Year

I’m putting together a plain-English guide to help you understand how the BMO 2023-5C2 Mortgage Trust performed this past year. Think of this as a "cheat sheet" to help you decide if this fits your investment goals.

1. What does this trust do?

The BMO 2023-5C2 Mortgage Trust is a collection of 48 commercial mortgage loans. It started with a total value of about $875.6 million. Think of it as a large bucket holding loans for office buildings, retail centers, and self-storage facilities. You buy certificates that represent different levels of risk and reward. In return, you receive monthly payments from the interest and principal paid by the property owners.

2. Financial health

This is a passive investment that relies on the Debt Service Coverage Ratio (DSCR) and Loan-to-Value (LTV) ratios to track health. The current LTV ratio is 58.4%, which provides a cushion if property values fluctuate.

As of March 1, 2025, Trimont LLC serves as the master servicer for two key properties: 11 West 42nd Street and Short Pump Town Center. The master servicer is responsible for collecting payments, tracking property finances, and managing the loan process.

3. Major properties and sector exposure

The trust manages several "pari passu" loans, meaning the trust holds a senior portion of a larger loan alongside other investors.

Key properties in the portfolio include:

• Scottsdale Gilbert Retail Portfolio: $34.0 million balance (3.9% of the pool).
• 11 West 42nd Street: $21.0 million balance (2.4% of the pool).
• Short Pump Town Center: $20.0 million balance (2.3% of the pool).

The office sector currently makes up 28% of the total pool. These properties are sensitive to shifts in hybrid work trends and interest rate changes as their loans reach maturity.

4. Key risks

The trust faces standard real estate risks, such as property vacancies or reduced income. Additionally, there is a civil lawsuit filed in February 2026 involving the trustee, Wilmington Trust.

Because the trust utilizes multiple servicers, the efficiency of loan workouts or foreclosures is a factor. If a loan requires special servicing, the associated fees are deducted directly from the trust's cash flow, which can impact the amount available for monthly payouts.

5. Future outlook

The trust is currently in a "maintenance" phase, focused on collecting payments and monitoring loan maturity dates between 2028 and 2033. To stay informed, monitor future filings regarding the properties listed above. If these properties fall behind on payments or are transferred to special servicing, it may directly affect your income distributions.

Note: This report is based on the 2025 annual filing. Performance depends entirely on the borrowers' ability to meet their loan obligations.