Lineage, Inc. (LINE) is a REIT operating the world's largest temperature-controlled warehouse network. Under a liquidation lens, the recovery posture is deeply negative and structurally so. MFFAIS computes a cash liquidation value of approximately negative $9.5B, liquid liquidation value of approximately negative $8.6B, and operating liquidation value of approximately negative $8.4B as of Q1 2026. These figures are consistent with what the balance sheet supports: total assets of $19.0B against total liabilities of $10.0B yields book equity of approximately $9.1B (including noncontrolling interests), but liquidation haircuts on the dominant PP&E and intangible asset base collapse recoverable value well below the face-value liability stack. PP&E net book value is $11.3B — applying a 50-70% recovery rate yields $5.6B–$7.9B, a reduction of $3.4B–$5.7B from book. Goodwill of $3.4B and finite-lived intangibles net $1.1B carry zero recovery under the liquidation lens, eliminating another $4.5B. On the liability side, total debt stands at $6.3B face value with a weighted average maturity of approximately 3.2 years assuming extension options. Finance lease obligations add $1.3B in face-value liabilities ($2.2B undiscounted), and operating lease liabilities add $648M. These do not extinguish on windup. The company paid off the MetLife Real Estate Notes ($160M) in January 2026 and borrowed $354M net on revolving lines during Q1 2026, incrementally increasing the revolving credit exposure. Gross interest expense increased 40% YoY to $84M for the quarter, reflecting higher average debt balances from New Senior Unsecured Notes issued in 2025 plus reduced hedge coverage as legacy swaps matured. The effective hedged rate rose from 2.8% to 3.7% YoY. The filing discloses a material weakness in IT general controls (program change management and user access controls) carried over from the December 31, 2025 10-K; this does not directly affect the balance sheet but introduces control-environment risk relevant to reliance on reported numbers. Accumulated deficit stands at negative $2.6B. Revenue remaining performance obligation is $1.7B, indicating contractual storage and services commitments that generate future cash but are not liquidation assets. The filing discusses performance obligations and insurance receivables ($14M outstanding) in the narrative but these are reflected in AR and other current assets rather than separately tagged balance-sheet items of independent materiality.
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