Morgan Stanley Bank of America Merrill Lynch Trust 2015-C25 Annual Report

I am here to help you understand the latest report for the Morgan Stanley Bank of America Merrill Lynch Trust 2015-C25.

This is not a typical company like Apple. It is a Commercial Mortgage-Backed Security (CMBS) Trust. Think of it as a vault holding a collection of loans for commercial properties, such as office buildings and retail centers. Investors buy "slices" of this vault to collect interest as property owners pay back their loans. As of December 31, 2025, the trust holds about $684.2 million in loans. This is down from the original $1.08 billion in 2015, reflecting ten years of loan repayments.

1. How the trust works

The trust collects mortgage payments from property owners and passes that cash to you. It does not earn "profit" like a standard business. Its health depends entirely on whether property owners pay on time. The trust currently pays an average interest rate of about 3.85% to bondholders.

The trust recently updated its operations. On March 1, 2025, Trimont LLC replaced Wells Fargo as the master servicer. They now oversee the remaining 42 active loans. Additionally, Computershare Trust Company took over corporate trust services from Wells Fargo. These changes affect the day-to-day management of the loans, not the performance of the buildings themselves.

2. Major wins and challenges

The trust relies on a few "heavy hitters" that make up a large portion of the pool:

• Herald Center: ~9.8% of the trust ($67.05M).
• 261 Fifth Avenue: ~9.3% of the trust ($63.63M).
• Roosevelt New Orleans Waldorf Astoria: ~7.0% of the trust ($47.89M).
• Coastal Equities Retail Portfolio: ~5.1% of the trust ($34.89M).

These four properties make up 31.2% of the total pool. If one struggles, it significantly impacts your investment. No single owner represents more than 10% of the pool, which helps spread out the risk. As of year-end 2025, the delinquency rate is 2.4%, mostly due to retail properties struggling with occupancy.

3. Key risks

• Concentration: The trust relies on a few large properties. A vacancy at the Herald Center or lower tourism at the Roosevelt New Orleans could reduce monthly payments to lower-rated slices.
• Legal Noise: The trustee, U.S. Bank, faces lawsuits regarding its role in other mortgage trusts. While they deny wrongdoing, legal battles involving your money managers create potential distractions and risks.
• Special Servicing: Teams like LNR Partners and Rialto Capital manage loans that go bad. Currently, $18.5 million in loans are in "special servicing," meaning they are in default or near it. This is a safety net, but it highlights that the trust is managing potential losses.

4. Future outlook

In 2026, the focus will be on operational stability and resolving the loans in special servicing. Watch for updates on the major properties listed above. Their ability to pay off their loans—many due within 24 months—is the main driver of your returns. The trust is now in its "harvest" phase, focusing on the orderly collection of the remaining loans.

Note: This report covers the fiscal year ending December 31, 2025. When evaluating your position, prioritize monitoring the status of the top four properties, as their performance is the primary indicator of the trust's overall health.