Net worth outweighs $ 1 billion as coronavirus infects president’s business

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We valued the president at $ 3.1 billion a month ago. Now it’s worth $ 2.1 billion. Here’s why.

^To approximately to what extent the coronavirus has affected the president’s fortune, we have examined the variations in share prices similar to each segment of his business. Commercial real estate is clearly falling, with shares of several companies, including Boston Properties and Vornado Realty Trust, plunging on average by 37% from March 1, 2020 to March 18, 2020, the date on which we calculated the fortunes for the list billionaires. Similar declines have resulted in a decline in the value of hospitality companies, apartment owners and golf companies. Using these drops as a guide, we applied discounts to the numbers of Trumps precoronavirus, and then reviewed the changes with industry experts.

Conclusion: a net valuation of $ 2.1 billion, a drop of $ 1 billion in less than a month. This will surely change again, as each index works like an EKG. But, says New York real estate broker Eric Anton, analyzing it is as good as any other way of thinking.

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The heart of the Trumps empire, which the president still owns but which his sons Eric and Don Jr. run daily, remains tied to commercial real estate assets. Before the coronavirus disrupted everything, these properties were worth about $ 1.9 billion after deducting debt. By March 18, 2020, that figure had dropped to around $ 1.2 billion. Part of the problem: Trump has 125,000 square feet of retail space near Fifth Avenue in Manhattan, usually a busy trade corridor. Today it is a virtual ghost town. Office space also doesn’t seem like a safe investment these days, especially if the homework experience in America turns out to be successful.

COMMERCIAL REAL ESTATE

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Commercial and office space in New York and San Francisco

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In addition to commercial assets, the President owns over 500 residential units across the country. The shutdown happened so quickly that there is still not a lot of data on home sales, making it difficult to determine what something is worth. Buyers are unlikely to make their biggest financial investment of their lives with a virtual tour, says Jonathan Miller, an expert in residential real estate in New York. Public markets, however, indicate a decline in values. The stock prices of five apartment owners fell by more than a third, on average, from March 1, 2020 to March 18, 2020.

RESIDENTIAL REAL ESTATE

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Over 500 units in five states

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The situation is even more serious for Trumps host establishments. The Trump Organization had tried to sell its hotel in Washington, D.C., but these plans are now on hold. Company presidents have laid off more than 550 employees, according to the Washington Post.

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HOSPITALITY DETENTIONS

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Hotel in Washington, D.C., and resort in Miami

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At a press conference at the White House in March, President Trump answered a question about the effect of the coronavirus on his business: I am very under-indebted and everything, so it’s good. Not necessarily at the D.C. Hotel or the Miami Presidents Golf, however. Deutsche Bank gave Trump $ 170 million to renovate the Trump International Hotel and an additional $ 125 million for Trump National Doral in Miami, which generated $ 9.7 million in profits in 2018 (measured as profit before interest, taxes, depreciation and amortization). It sounds very effective, says hotel analyst Dan Wasiolek.

HOTEL LICENSE AND MANAGEMENT

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Branding and management offers in Hawaii, Uruguay, India and elsewhere

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The impact on the Trumps golf course portfolio largely depends on how long the coronavirus keeps the economy closed. The good news for golf investors is that it is easy to socially distance yourself from links. The bad news is that expensive clubs do not tend to perform well during a recession. The first thing that is cut from the diet is the golf budget, says Jeff Davis, general manager of the golf brokerage company Fairway Advisors. The value of Trumps’ business, estimated to be around $ 271 million in early March, fell about 20%.

GOLF COURSE

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Ten American golf clubs, three European properties

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Mar-a-Lago, the president’s most famous club, may be holding up better than the rest of his clubs, even if it made the headlines for hosting people who later tested positive for the club. coronavirus. This is because Mar-a-Lago is valued more as a billionaire trophy than as a business in operation, which seems to be protecting the impact of the current downturn.

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TROPHIES AND OTHER PROPERTIES

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Mar-a-Lago, Trump Tower penthouse, Trump Winery and other assets

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The best performing part of the presidents’ portfolio is its cash flow. The President has long since disposed of his assets and is now safely holding approximately $ 160 million in cash accounts. It looked like a bad investment in recent years, when the stock market skyrocketed and the president missed the earnings. But today, a flat return is an excellent return.

CASH

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Amid all the gloom, there is still room for optimism. End of Wednesday, the stock market had increased by 3% since Forbes had calculated his net worth two weeks earlier. Said Joel Paige, a station operator who once ran Doral, before Trump bought the property: I guess it’s just going to be a hiccup for him.

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