Cousins Properties (CUZ) is a Sun Belt office REIT with total assets of $9.09B and total liabilities of $4.55B as of March 31, 2026, producing book equity of $4.53B. Under a liquidation lens, recovery to equity is deeply negative. The MFFAIS CLV/LLV/OLV is consistently reported at -$3.82B, reflecting the structural asymmetry of the liquidation framework applied to this asset class. The dominant asset is real estate: net rental properties of $8.25B (gross $10.21B less $1.96B accumulated depreciation) plus $24M held-for-sale. Applying a 50-70% haircut to the gross PP&E base produces recoverable value well below face-value liabilities. Intangible assets of $184M (inclusive of $1.7M goodwill) receive zero recovery. Equity method investments of $214M in unconsolidated JVs receive a haircut commensurate with underlying real estate values. On the liability side, total debt at face value is $3.80B (long-term debt carrying value $3.77B), with the credit facility at $206.5M drawn, four public unsecured senior note tranches totaling $1.9B, two term loans at $500M aggregate, and four private placement tranches at $750M. Approximately 87% of consolidated debt is fixed-rate. The $500M 4.875% senior notes issued February 2026 materially increased the debt stack from the prior year-end position. Operating lease liabilities of $50M and deferred revenue (ContractWithCustomerLiability) of $298M and $248M in accounts payable/accrued liabilities and other liabilities stand at face value in wind-up. A $36.6M operating property impairment was recognized in Q1 2026 (zero in Q1 2025), confirming at least one asset's carrying value exceeded fair value—this directionally validates the liquidation haircut assumption. Cash is minimal at $6.3M. Deferred rent receivables of $278M receive a partial haircut under liquidation as they represent non-cash straight-line accruals unlikely to be recoverable from tenants at face value in a wind-up. The filing discusses the $150M partial repayment of the 2021 Term Loan and $90M share repurchase in Q1 2026, both of which reduced equity but were funded by the $500M February 2026 notes issuance, net increasing the liability stack. Unfunded tenant improvement and construction commitments of $178.8M represent future cash obligations not fully reflected on-balance-sheet. The $334.1M of unconsolidated JV third-party debt carries non-recourse carve-out guarantees, creating contingent exposure not captured in the consolidated liability stack.
▼ Community Notes