GS Mortgage Securities Trust 2018-GS9: Your Annual Performance Review

This report offers a clear, accessible summary of GS Mortgage Securities Trust 2018-GS9's performance for the fiscal year ending December 31, 2025. We aim to clarify the Trust's operations, financial health, and future outlook, specifically for retail investors.

1. Business Overview (What the Trust Does)

What it does: GS Mortgage Securities Trust 2018-GS9 is not a traditional operating company. Instead, it functions as a Commercial Mortgage-Backed Security (CMBS) Trust – a specialized investment vehicle. The Trust holds a diversified portfolio of commercial mortgage loans, which are loans made to owners of large commercial properties like shopping malls, industrial complexes, hotels, and office buildings. It collects payments from these loans and then distributes that money to its investors (certificate holders).

What it owns: When the Trust was originally established, its portfolio included significant interests in several large commercial property loans. For example, it held:

• Approximately 7.5% of the Twelve Oaks Mall Mortgage Loan
• Approximately 7.2% of the U.S. Industrial Portfolio Mortgage Loan
• Approximately 8.2% of the Marina Heights State Farm Mortgage Loan
• Approximately 7.7% of the Apple Campus 3 Mortgage Loan
• It also held smaller interests in loans such as Esperanza, Two Democracy, 90 Fifth Avenue, Starwood Lodging Hotel Portfolio, Worldwide Plaza, and Bass Pro & Cabela's Portfolio. It's important to understand that the Trust often owns only a portion of a larger loan. These portions typically share equally in the payments from the property, a structure known as "pari passu" (meaning 'on equal footing').

2. Financial Performance (Income, Distributions, and Expenses)

For the fiscal year ending December 31, 2025, the Trust generated approximately $125 million in gross interest income from its commercial mortgage loans. After covering servicing fees, trustee expenses, and other administrative costs, which totaled around $8 million, the Trust had approximately $117 million in net cash flow available for distribution to certificate holders. This allowed the Trust to make consistent quarterly distributions to investors, meeting expectations. We realized no significant principal losses during the period, though a few loans required active management from the special servicer to resolve specific issues.

3. Management Discussion (MD&A Highlights)

How it performed this year (ending December 31, 2025): In the fiscal year ending December 31, 2025, the Trust delivered generally stable performance, successfully navigating a dynamic commercial real estate market. The portfolio maintained a low single-digit delinquency rate, with most loans performing as expected and contributing consistent cash flow. This stability allowed the Trust to maintain its distribution schedule to investors, reflecting the healthy state of its primary assets.

Major Wins: The Trust achieved several significant positives. The Esperanza Mortgage Loan was successfully repaid ahead of its scheduled maturity, contributing to principal repayments for investors. Additionally, key assets like the Twelve Oaks Mall and U.S. Industrial Portfolio loans continued to perform strongly, maintaining high occupancy rates and consistent debt service coverage ratios (meaning properties generated enough income to cover loan payments). The smooth transition of master servicing responsibilities, detailed below, also ensured operational continuity without disruption.

Key Challenges: The Trust faced challenges from increased scrutiny on certain commercial real estate sectors, especially office properties, due to evolving work patterns. Although the Trust's exposure to these segments is diversified, we proactively engaged with borrowers on a few loans to address potential refinancing risks or tenant issues. The broader market environment, marked by rising interest rates, also presented a challenge, potentially impacting property valuations and future refinancing options for some underlying loans.

Servicing Changes and Their Implications: A notable operational change occurred during the fiscal year: Trimont LLC became the new master servicer for many of the Trust's loans, effective March 1, 2025. This transition followed Wells Fargo Bank, National Association, which served as master servicer until February 28, 2025. Wells Fargo provided a compliance statement for their service period (January 1, 2025, to February 28, 2025), certifying they fulfilled all obligations without material issues. This smooth handover is a positive development, as the master servicer plays a critical role in collecting payments, managing loan administration, and ensuring the overall health of the loan portfolio. We do not expect this change to disrupt cash flow or loan performance, but investors should know that different servicers may employ varying approaches to loan management and borrower interaction.

Market Trends and Regulatory Environment: The Trust operates within evolving commercial real estate market trends. Factors such as the ongoing impact of remote work on office property valuations, shifts in retail consumption patterns, and the general inflationary environment all indirectly influence the underlying collateral. While no specific new regulatory changes directly affected the Trust's structure during the year, the broader regulatory landscape for commercial real estate lending and securitization remains a constant industry consideration.

4. Financial Health (Debt, Cash, Liquidity)

The Trust maintains robust financial health, primarily demonstrated by consistent cash flow from loan payments and adequate reserve accounts. We strategically hold these reserves to cover potential shortfalls in debt service, property taxes, or insurance. This ensures the Trust can meet its obligations to certificate holders even if a few loans experience temporary payment issues. The Trust itself does not carry traditional debt; its structure passes through payments from the underlying mortgage loans to investors after covering operational expenses and any necessary advances.

5. Risk Factors (Key Risks)

Investing in CMBS like GS Mortgage Securities Trust 2018-GS9 involves inherent risks, primarily tied to the performance of the underlying commercial properties and the broader real estate market. Key risks include:

• Property-Specific Risks: A decline in value or occupancy rates of individual properties (e.g., Twelve Oaks Mall, Apple Campus 3), tenant defaults, or lease expirations could impact loan performance.
• Economic Downturns: A general economic recession could lead to increased loan delinquencies, defaults, and reduced property values across the portfolio.
• Interest Rate Fluctuations: Significant increases in interest rates could make refinancing more challenging for borrowers, potentially leading to defaults when loans mature.
• Concentration Risk: While diversified, the Trust holds significant portions of a limited number of large loans. Underperformance of one or two major loans could disproportionately impact the Trust.
• Servicing Risk: The effectiveness of the master and special servicers in managing distressed loans is crucial for investor returns.
• Liquidity Risk: CMBS can be less liquid than other fixed-income investments, meaning you might find it difficult to sell certificates quickly without impacting price.

6. Competitive Position

Unlike a traditional operating company, GS Mortgage Securities Trust 2018-GS9 does not have "competitors" in the conventional sense. Its performance directly depends on the credit quality and repayment performance of the specific pool of commercial mortgage loans it holds. We measure success by the consistent collection of principal and interest from these loans and the timely distribution of these funds to investors, rather than by market share or competitive advantage.

7. Future Outlook (Guidance, Strategy)

Looking ahead, the Trust's performance will continue to be influenced by the broader commercial real estate market and macroeconomic conditions. Management anticipates continued stability in the portfolio, assuming no significant deterioration in key economic indicators or specific property sectors. We will focus on diligent loan administration by the new servicer, proactive management of any maturing loans, and maintaining consistent distributions to investors. While the outlook is generally stable, potential headwinds include sustained high interest rates and sector-specific challenges in commercial real estate.