First Industrial Realty Trust (FR) is a self-administered industrial REIT operating 420 properties across 19 states with 70.9 million square feet of GLA as of March 31, 2026. Under a liquidation lens, the recovery posture is structurally negative, consistent with MFFAIS CLV/LLV/OLV all at approximately -$3.56B. The dominant asset is real estate: gross investment property of roughly $6.38B at cost (land $1.86B plus buildings/improvements $4.32B plus development-in-process $207M), offset by accumulated depreciation of $1.22B, yielding a net book value of approximately $5.16B. Applying a 50-70% liquidation haircut to that net book value produces an estimated asset recovery in the range of $2.58B-$3.61B before other items. Total liabilities stand at $2.92B face value, which under the liquidation lens remain at full face. Gross debt excluding issuance costs is $2.58B, comprised of $9.2M secured, $1.44B unsecured notes, $993M unsecured term loans, and $124M drawn on the revolving credit facility. The liability stack is long-duration but concentrated: $274K matures in the next 12 months, $131M in Year 2 (2028), $390M in Year 3, $724M in Year 4, $675M in Year 5, and $661M thereafter. No near-term maturity cliff, but the aggregate face value of the debt is the primary driver of the deeply negative equity recovery. A material event this quarter was the reclassification of a Phoenix ground lease to a sales-type lease, generating a $109M accounting gain; the underlying sale is expected to close June 2026 and would produce actual cash proceeds, providing a modest positive delta to liquidation value that is not yet in the balance sheet. In January 2026, the company refinanced its term loans: the $425M facility was extended to January 2030 and the $300M facility was increased to $375M and extended to January 2029. This adds $75M to the face liability stack versus the prior period (December 31, 2025 10-K). Prepaid and other assets of $352M includes derivative assets ($9M net) and deferred costs. Deferred rent receivables of $184M and straight-line rent assets would face near-zero liquidation recovery. Non-controlling interest of $93M reduces equity available to the common. Operating lease ROU assets of $19M are offset by a matching liability of $19M. The construction commitment of $57.3M remaining to be funded on four active development projects represents an off-balance-sheet obligation that would not extinguish in a wind-up. Weighted average interest rate rose to 4.21% for Q1 2026 versus 4.03% in Q1 2025, increasing carrying cost of the liability stack. The filing discusses the sales-type lease gain and construction commitments in MD&A but these are appropriately captured in XBRL-tagged items. G&A included $5.6M of one-time proxy defense costs which do not affect liquidation posture.
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