U.S. commercial mortgages hit by appraisal cuts: Trepp

NEW YORK (Reuters) - Falling U.S. commercial property values have resulted in appraisal reductions on more than $8 billion in office, retail and apartment building loans in May, more than double that of December, according to Trepp, a firm that tracks commercial mortgage-backed securities.

The average appraisal reduction is 36 percent of the loan balance, it said.

Reductions in appraised values on buildings have resulted in shortfalls of interest payments to investors, including some on bonds protected from the first loss, it said.

(Reporting by Al Yoon; Editing by Theodore d'Afflisio)