Donald Trump lost nearly one-third of his reported fortune in the final year of his presidency according to a study by Bloomberg.
His net worth has dropped to $2.3bn from $3bn as the Covid-19 pandemic has hit hardest at the industries in which he has the greatest investments — offices, hotels, and resorts branded with his name.
Four divisive years in the White House, two impeachments, and a violent insurrection that saw the US Capitol stormed by pro-Trump rioters have severely damaged his brand and business relationships.
Research for the Bloomberg Billionaire’s Index took in financial disclosures, loan documents, revelations from court documents, and interviews with former executives and industry analysts to establish the current state of the former president’s empire.
The findings are somewhat bleak, with just under $600 million in loans due over the next four years, half guaranteed by him personally.
Three-quarters of Mr Trump’s net worth comes from commercial real estate and the pandemic has seen central business districts deserted as companies told workers to stay home.
Ruth Colp-Haber, who runs office consultant Wharton Property Advisors, says that the former president faces a “triple-whammy” from the pandemic, the Capitol riot, and an aging portfolio of properties.
“These are the businesses you don’t want to be in right now,” she told Bloomberg.
The value of his stakes in office towers in New York and San Francisco is down, and the Art Deco tower at 40 Wall St in Lower Manhattan has halved in value since 2016 to $277m, with tenants considering leaving, and broker Cushman Wakefield having cut ties with Trump after the Capitol riot.
Retail rents on Fifth Avenue have dropped 32 per cent from a 2018 peak, which is bad news for Mr Trump’s Midtown property Trump Tower, where residents looking to sell have had to offer steep price cuts.
His resorts and hotels have seen income drop 42 per cent, and the properties carry a heavy debt burden — $330m, guaranteed by Mr Trump. Half of that amount is from a loan for the Trump International Hotel in Washington, DC, one-third for his Miami golf course, and the rest tied to the Chicago hotel. Lender Deutsche Bank has said it will no longer do business with him.
The Washington hotel was put up for sale in 2019 for more than $500m, but offers in excess of $350m are believed to have been rejected, with analysts saying the price is unrealistic.
Discover more from Today Headline
Subscribe to get the latest posts to your email.