GS Mortgage Securities Trust 2016-GS3 Annual Report - How They Did This Year

This report looks at the first parts of the annual filing (Form 10-K) for GS Mortgage Securities Trust 2016-GS3. It covers the fiscal year ending December 31, 2025. We want to explain how this trust is set up and what assets it holds. This will help you understand this investment better.

What is GS Mortgage Securities Trust 2016-GS3?

This isn't a typical company like Apple or Coca-Cola. It's a trust. Goldman Sachs Mortgage Company, part of the Goldman Sachs financial group, created it. The trust holds many commercial mortgage loans. The "2016" in its name means it started in 2016. This trust is a Commercial Mortgage-Backed Security, or CMBS. This is a common way to package loans for investors. Goldman Sachs Mortgage Company put these loans into the trust.

These are loans to businesses, secured by their income-generating properties. Think of office buildings, shopping centers, hotels, or factories. The trust owns these loans. It's like a special company that just holds these property loans. The trust itself usually doesn't pay corporate income tax. Instead, profits and losses go directly to its investors. When you invest here, you're essentially investing in the money from those mortgage payments. Investors buy "certificates" from the trust. These certificates give you a share of the payments from the loans. The total original value of the loans put into the trust formed the basis for these certificates.

What's in the Trust's "Wallet"? (The Loans They Hold)

This trust holds parts of several large commercial mortgage loans. We call these "mortgage assets" or "collateral." The trust's main asset is this group of commercial mortgage loans. For example, some of the biggest loans mentioned in this report (based on their value when the trust started in 2016) include:

• 10 Hudson Yards Mortgage Loan (around 8.2% of the original pool)
• 540 West Madison Mortgage Loan (around 8.1% of the original pool)
• U.S. Industrial Portfolio Mortgage Loan (around 8.0%)
• The Falls Mortgage Loan (around 6.6%)
• Hamilton Place Mortgage Loan (around 6.1%)
• Panorama Corporate Center Mortgage Loan (around 5.5%)
• Embassy Suites Portland Airport Mortgage Loan (around 2.8%)
• Residence Inn and SpringHill Suites North Shore Mortgage Loan (around 2.0%)

These percentages show each loan's original value compared to the trust's total original loan pool. If a few loans are very large, the trust relies heavily on those specific properties or borrowers. These loans often combine with others. This trust might own a piece alongside other investors or trusts. This setup is called "loan participation" or "pari passu," meaning "on equal footing." It means the trust holds one part of a bigger mortgage loan. Other trusts or investors hold the other parts. This spreads risk for the original lender. But the trust's performance depends on how the entire larger loan performs.

Who's Managing These Loans?

This trust only holds loans, so other companies manage them. This report lists a team of "servicers" who handle different tasks. This multi-company setup is typical for CMBS deals. It ensures expert oversight as loans perform.

• Midland Loan Services: They are the main "master servicer" for many loans. A master servicer handles daily tasks. This includes collecting payments, managing accounts, inspecting properties, and reporting to the administrator. They mostly manage loans that are performing well.
• Rialto Capital Advisors, LLC: They act as a "special servicer" for most loans. They step in if a loan gets into trouble. A special servicer manages loans that are late, defaulted, or at risk. Their job is to negotiate changes, handle foreclosures, or find other ways to get money back for investors.
• Wells Fargo Bank, National Association: They serve as the "certificate administrator" and "custodian" for many loans. Wells Fargo also managed the 10 Hudson Yards loan until March 1, 2025. As administrator, Wells Fargo calculates and sends payments to investors. They also prepare investor reports and handle tax matters. As custodian, they hold the original loan documents and collateral. Their role for the 10 Hudson Yards loan changed on March 1, 2025.
• Trimont LLC: They became the main servicer for the 10 Hudson Yards loan on March 1, 2025. They also special service the 540 West Madison loan. This change for a big loan like 10 Hudson Yards (8.2% of the original pool) is a key update. It shifts who manages a large part of the trust's assets day-to-day.
• Other companies are also mentioned. Pentalpha Surveillance LLC is an operating advisor. LNR Partners, LLC is a special servicer for some loans. CoreLogic Solutions, LLC handles tax payments. Computershare Trust Company, National Association (CTCNA) helps Wells Fargo. The operating advisor watches over the special servicer. This protects the interests of investors with lower-priority certificates. LNR Partners handling some special servicing shows a varied approach to troubled loans. CoreLogic manages tax payments. CTCNA's help shows how complex these trusts are to run.

It's a complex system. Many different parties ensure these mortgage loans are collected and managed well. This layered structure provides checks and balances. It ensures different investor groups are represented. It also makes sure loan performance is watched and managed carefully, especially during tough times.

Can I Buy Stock in This Trust?

No, you can't buy shares like you would in a regular company. This report clearly says no investments are registered for trading on stock exchanges. CMBS certificates are debt, not company ownership. They are usually issued in different "slices" or classes. These slices have varying levels of priority and risk/reward. Credit rating agencies often rate them (e.g., AAA, AA, A, BBB, BB, B, unrated). These certificates are mostly traded directly between big investors. Think of pension funds, insurance companies, and asset managers. They are not typically sold to individual investors on public stock markets.