Macerich (MAC) presents a deeply negative liquidation posture as of March 31, 2026. MFFAIS reports a cash liquidation value of approximately -$4.73B, consistent with the structural arithmetic: total reported assets of $8.19B face aggressive liquidation haircuts while $5.68B in reported liabilities remain at face value. The dominant asset is PP&E (net book value $6.67B, gross $9.25B before $2.58B accumulated depreciation). Applying a 50-70% recovery haircut to the net PP&E yields $3.33B-$4.67B of realizable value, well below the consolidated debt stack of $4.85B in secured mortgage debt alone. Equity method investments in unconsolidated JVs carry a book value of $700M; recovery is uncertain and subject to underlying JV leverage ($1.56B at MAC's pro rata share). Cash of $182M recovers at par; AR net of allowances ($125.8M) recovers at ~90-95%. Deferred charges and intangibles ($319M) receive a 0% haircut under liquidation. The liability stack is anchored by $4.85B in secured debt (tagged as SecuredDebt/LongTermDebt), a $900M revolving facility ($100M drawn at quarter-end), $352.6M in other accrued liabilities, $129.5M in AP/accrued liabilities, and $65.1M in operating lease obligations ($113.2M undiscounted). Two loans are in default as of the filing date: the $300M non-recourse Santa Monica Place loan (defaulted April 2024, property in receivership) and the $76.5M pro-rata share loan at Twenty Ninth Street (in default February 2026, under negotiation with lender). These defaults create contingent liability exposure and operational complexity that would complicate an orderly liquidation. Key change since the prior filing (10-K for FY2025): Q1 2026 saw (1) $211.5M repayment of the Vintage Faire Mall loan at maturity, partially funded by $100M revolver draw; (2) the revolving credit facility upsized to $900M and extended to March 2030; (3) $65.5M of ATM equity proceeds, diluting the share base but improving liquidity; and (4) a subsequent Annapolis Mall acquisition ($272M total, $150M revolver-funded) that added PP&E and debt post-quarter-end. The filing discloses $6.45B total pro-rata debt (consolidated + JV share), making the equity recovery gap wider than the consolidated balance sheet suggests. Intangible assets embedded in DeferredCostsAndOtherAssets ($319M gross) carry zero liquidation value. Net deferred tax asset ($30.2M) embedded in deferred charges is unrecoverable in liquidation. The accumulated deficit of -$3.86B signals persistent GAAP losses driven primarily by D&A of ~$83M/quarter, masking modestly positive operating cash flow ($77.4M in Q1 2026). Equity recovery to common in a liquidation scenario is negative under any realistic PP&E haircut applied against the consolidated debt stack.
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