Thirteen days before he was elected president in 2016, Donald Trump spoke at the grand opening of the Trump International Hotel in Washington, D.C., accompanied by his children Don Jr., Ivanka and Eric.
For a 75-year-old billionaire, Donald Trump doesnt seem to have passed down much of his fortune to his children. Many tycoons give away their empires early, not just because its a nice thing to do, but also because it helps to spare their kids from a massive estate tax when they die. A review of documents suggests that in the Trump family, however, the heirs dont hold ownership stakes in any of their fathers major assets, except one: The Trump International Hotel in Washington, D.C.
The three eldest Trump childrenDon Jr., Eric and Ivankaall seem to have 7.5% interests in a lease on the property. Unfortunately for them, the asset has been performing poorly, losing so much money that one of Donald Trumps holding companies has had to inject additional cash to prop up the business, according to an analysis of financial statements that the House Committee on Oversight and Reform released last week. Representatives for the Trump family did not respond to a request for comment.
The heirs are partly to blame. Ivanka first identified the property as a potential investment opportunity. With her fathers support, the family decided to get involved, securing a deal in 2013 to lease the building from the federal government by promising that they would spend $200 million on the place.
Spend they did. Deutsche Bank provided $170 million of financing, and by August 31, 2017, the Trump Organizations financial statements listed $193 million for building improvements, $18 million for furniture and equipment, $5 million for operating supplies and $100,000 for tenant improvements, according to the House documents. Total tally: $216 million.
Don Jr. worked on leasing retail spaces, and Eric helped look after the operation, but things did not go well. Sure, plenty of lobbyists and foreign officials stopped by for drinks, but the financial performance was a mess. In the year ending August 31, 2018, operating profits (measured as earnings before interest, taxes, depreciation and amortization) were just $900,000, according to an analysis of the House documents. Net losses amounted to $13 million. One of Donald Trumps holding companies had to shift $4 million into the hotel to support the business. Twelve months after that, the small operating profit turned into a loss of $2 million, and the business bled $18 million on a net basis. Donald Trumps holding company, therefore, had to pump another $9 million into the hotel.
The following year, when Covid struck, things got even worse. Operating losses dropped to $9 million, and net losses hit $22 million. Donald Trumps holding company had to pony up an additional $11 million to stabilize the business, according to a review of the documents. At this point, the Trump family had invested an estimated $240 million$170 million of which came from Deutsche Bank and $70 million that seems to have come straight from the familys pockets.
Bad news, given that plenty of people dont think the place is worth $240 million. After speaking with seven real estate experts, Forbes estimated last month that the property was worth $173 million. Assuming the Trumps havent paid any of the principal back on their loan, that means their equity amounts to just $3 million, $67 million less than the amount of cash the family apparently invested into the place before August 2020. In other words, the only major asset where the Trump kids appear to have serious stakes looks like a rotten deal.
Or perhaps, looked like a rotten deal. On Tuesday, the Wall Street Journal reported that the former presidents family is in advanced discussions to sell its right to the hotel for a whopping $370 million or more. Some industry insiders questioned the credibility of that report, given the sky-high price. But if such a sale actually goes through, all of the financial problems that the hotel has caused for the Trumps would suddenly wash away.
The kids apparent 7.5% interestswhich would be worth just $225,000 after debt at a $173 million valuationwould grow to an estimated $15 million apiece. Thats a lot of money for Eric and Don Jr., who Forbes estimated were each worth $25 million in 2019. Its also a fair chunk of change for Ivanka, who shares a fortune estimated at $375 million with her husband, Jared Kushner, heir to a separate real estate dynasty.
Donald Trumpthe richest of them all, with an estimated $2.5 billion fortunewould receive the largest payday. His estimated 77.5% interest would amount to just $2 million after debt at a $173 million valuation, but it would balloon to $155 million if the place were valued at $370 million. That would surely be enough to convince the former president that the last four years of financial problems, not to mention ethical headaches, were all worth it in the end.
Go here to read the rest:
Trump's Kids Went Into A Terrible Deal With Their Dad. They Might All Get Bailed Out - Forbes
- 'Donald Trump Did This': How to Beat MAGA on Border Security - The Bulwark - April 29th, 2024 [April 29th, 2024]
- Potential Trump running mate JD Vance and Donald Trump Jr. have become so close that they text or talk on a 'nearly ... - Business Insider - April 29th, 2024 [April 29th, 2024]
- Trump Second Term: How the World and U.S. Allies Can Prepare for the Election - Foreign Policy - April 29th, 2024 [April 29th, 2024]
- Poll: Biden and Trump supporters sharply divided by the media they consume - NBC News - April 29th, 2024 [April 29th, 2024]
- Master Calendar of Trump Court Dates: Criminal and Civil Cases - Just Security - April 29th, 2024 [April 29th, 2024]
- Donald Trump's Sleepy, Sleazy Criminal Trial - The New Yorker - April 29th, 2024 [April 29th, 2024]
- Trump, GOP seize on campus protests to depict chaos under Biden - The Washington Post - April 29th, 2024 [April 29th, 2024]
- UK briefing: How Donald Trump plans to survive hush money trial with his campaign intact newsletter - The Guardian - April 29th, 2024 [April 29th, 2024]
- Opinion | We Are Talking About the Manhattan Case Against Trump All Wrong - The New York Times - April 29th, 2024 [April 29th, 2024]
- Election 2024: Biden jokes, Trump still leads and updates from the Sunday shows. - The New York Times - April 29th, 2024 [April 29th, 2024]
- Donald Trump Pans White House Correspondents' Dinner: 'Colin Jost BOMBED' - The Daily Beast - April 29th, 2024 [April 29th, 2024]
- Trump's Trial Could Bring a Rarity: Consequences for His Words - The New York Times - April 29th, 2024 [April 29th, 2024]
- Donald Trump Bemoans Really Bad WHCD, Biden & Colin Jost After All Mock Much Indicted Ex-POTUS - Deadline - April 29th, 2024 [April 29th, 2024]
- The Supreme Court's epic failure in dealing with Trump's cases - The Hill - April 29th, 2024 [April 29th, 2024]
- Donald Trump: In America's most important swing state, a key Biden group wants to hand the presidency to Trump. - Slate - April 29th, 2024 [April 29th, 2024]
- Donald Trump Is Being Ritually Humiliated in Court - The New Yorker - April 29th, 2024 [April 29th, 2024]
- Joe Biden trails Donald Trump in new national poll on 2024 election - USA TODAY - April 29th, 2024 [April 29th, 2024]
- Amid Cases on Abortion and Trump, Roberts Reflects on Supreme Court's Work - The New York Times - April 29th, 2024 [April 29th, 2024]
- Donald Trump Is Used to the Finer Things in Life. At the Courthouse, 'He's Miserable.' - The Wall Street Journal - April 29th, 2024 [April 29th, 2024]
- How Trumps Rhetoric at Rallies Has Escalated - The New York Times - April 29th, 2024 [April 29th, 2024]
- The Supreme Court Appears Poised to Protect the Presidencyand Donald Trump - The New Yorker - April 29th, 2024 [April 29th, 2024]
- The Supreme Court seems divided over Donald Trump's immunity - The Economist - April 29th, 2024 [April 29th, 2024]
- John Dean Says 1 Thing 'Keeping Me On The Edge Of My Seat' In Trump Trial - Yahoo! Voices - April 29th, 2024 [April 29th, 2024]
- Five Moments That Have Defined Donald Trump's Trial So Far - The New York Times - April 29th, 2024 [April 29th, 2024]
- How Trumps trial is playing, politically - The Washington Post - April 29th, 2024 [April 29th, 2024]
- Opinion | The Ukraine aid vote helps, but U.S. allies complacency would be unwise - The Washington Post - April 29th, 2024 [April 29th, 2024]
- Hey, SCOTUS your hypocrisy is showing - The Hill - April 29th, 2024 [April 29th, 2024]
- Bill Barr Is Happy to Debase Himself for Donald Trump Again Mother Jones - Mother Jones - April 29th, 2024 [April 29th, 2024]
- The Supreme Court is likely to place Donald Trump above the law in its immunity case - Vox.com - April 29th, 2024 [April 29th, 2024]
- RFK is openly gunning for Trump voters now and Republicans are starting to worry - Salon - April 29th, 2024 [April 29th, 2024]
- Trump Pushes Immigration Conspiracy Theories and Mass Deportations - The New York Times - February 5th, 2024 [February 5th, 2024]
- Nikki Haley makes surprise appearance on SNL, mocking Donald Trump and Joe Biden - NPR - February 5th, 2024 [February 5th, 2024]
- Trump feud with UAW reaches fever pitch - The Hill - February 5th, 2024 [February 5th, 2024]
- Donald Trump tightens his grip on GOP, bolsters ties with Mike Johnson - USA TODAY - February 5th, 2024 [February 5th, 2024]
- 1/31/24 - 2024 Matchups: Biden Opens Up Lead Over Trump In Head-To-Head, Quinnipiac University National Poll ... - Quinnipiac University Poll - February 5th, 2024 [February 5th, 2024]
- Here's how 2 sentences in the Constitution rose from obscurity to ensnare Donald Trump - Yahoo News - February 5th, 2024 [February 5th, 2024]
- Donald Trump floats tariff of more than 60% on imports from China and denies it would start a trade war - Fortune - February 5th, 2024 [February 5th, 2024]
- Jeffries on House Republicans: Wholly owned subsidiaries of Donald Trump - The Hill - February 5th, 2024 [February 5th, 2024]
- Ex-DOJ Official Says He's 'Now At The Freakout Stage' Over 1 Donald Trump Case - Yahoo News - February 5th, 2024 [February 5th, 2024]
- Nikki Haley to GOP: Let's wait to see if Donald Trump is convicted - USA TODAY - February 5th, 2024 [February 5th, 2024]
- Why Supreme Court appeal will be no 'open mic night' for Donald Trump - USA TODAY - February 5th, 2024 [February 5th, 2024]
- Nikki Haley hits Donald Trump during 'SNL' sketch ahead of SC primary - USA TODAY - February 5th, 2024 [February 5th, 2024]
- Donald Trump's legal fees are draining his campaign funds - The Economist - February 5th, 2024 [February 5th, 2024]
- Donald Trump Mentions These Names When Asked About Vice Presidential Picks - NDTV - February 5th, 2024 [February 5th, 2024]
- Trump's lead over Biden may be smaller than it looks - The Economist - February 5th, 2024 [February 5th, 2024]
- Tory rising star described Donald Trump as 'refreshing' - The Independent - February 5th, 2024 [February 5th, 2024]
- Joe Biden v Donald Trump - where contest will be won and lost - BBC.com - February 5th, 2024 [February 5th, 2024]
- Donald Trump's fed trial on election interference postponed from March - USA TODAY - February 5th, 2024 [February 5th, 2024]
- Inside Trump's growing influence over congressional Republicans - POLITICO - POLITICO - February 5th, 2024 [February 5th, 2024]
- Federal judge postpones Trump's March 4 election interference trial - NPR - February 5th, 2024 [February 5th, 2024]
- Trump Says He Would Not Reappoint Powell as Fed Chair if Elected - Bloomberg - February 5th, 2024 [February 5th, 2024]
- I Prosecuted Donald Trump and Won. Here's How It's Done. - The Daily Beast - February 5th, 2024 [February 5th, 2024]
- Donald Trump Loses London Case Against Ex-MI6 Spy Over Kremlin Dossier - Bloomberg - February 5th, 2024 [February 5th, 2024]
- After Speedy Start, Appeals Court Slows Down on Trump Immunity Decision - The New York Times - February 5th, 2024 [February 5th, 2024]
- Donald Trump and UAW President Shawn Fain exchange barbs: 'Get rid of this dope' - USA TODAY - February 5th, 2024 [February 5th, 2024]
- Donald Trump dispels rumors that he reached out to RFK Jr for VP: Never happened - Fox News - February 5th, 2024 [February 5th, 2024]
- How Donald Trump Got Disqualified From The Ballot And His Entire Candidacy Wound Up Before The Supreme Court - HuffPost - February 5th, 2024 [February 5th, 2024]
- Trump Says Nikki Haley Is Unlikely to Be His Running Mate - The New York Times - January 20th, 2024 [January 20th, 2024]
- Donald Trump Goes From Calm To Indignant In Newly Released Deposition Video Of Civil Fraud Lawsuit - HuffPost - January 20th, 2024 [January 20th, 2024]
- Trump: Haley 'probably ... is not going to be chosen as the vice president' - POLITICO - January 20th, 2024 [January 20th, 2024]
- Trump returns to New Hampshire as primary nears - The Washington Post - January 20th, 2024 [January 20th, 2024]
- Boris Johnson: Trump's return could be 'big win for the world' - POLITICO Europe - January 20th, 2024 [January 20th, 2024]
- Zelenskyy invites Trump to Kyiv POLITICO - POLITICO Europe - January 20th, 2024 [January 20th, 2024]
- 'New Hampshire Is Close to a Make-or-Break for Keeping the Nomination Out of Donald Trump's Hands.' - POLITICO - January 20th, 2024 [January 20th, 2024]
- Trump's pitch in New Hampshire is more about Nikki Haley as he hopes for big win - NPR - January 20th, 2024 [January 20th, 2024]
- Donald Trump's tax cuts would add to American growthand debt - The Economist - January 20th, 2024 [January 20th, 2024]
- Donald Trump's populism is turning off corporate donors - The Economist - January 20th, 2024 [January 20th, 2024]
- Why DeSantis Says Trump's Romp in Iowa Is Actually a Sign of His Weakness - The New York Times - January 20th, 2024 [January 20th, 2024]
- The GOP Is Already Clashing Over Trump's VP Pick - POLITICO - January 20th, 2024 [January 20th, 2024]
- There is still a way to stop Donald Trump but time is running out - The Guardian - January 20th, 2024 [January 20th, 2024]
- The Davos Consensus: Donald Trump Will Win Re-Election - The New York Times - January 20th, 2024 [January 20th, 2024]
- Maine Secretary of State to Appeal Ruling on Her Decision to Exclude Trump From Ballot - The New York Times - January 20th, 2024 [January 20th, 2024]
- Vice President Harris says she's 'scared as heck' that Donald Trump could win - The Associated Press - January 20th, 2024 [January 20th, 2024]
- What is the point of coming second to Donald Trump? - The Economist - January 20th, 2024 [January 20th, 2024]
- Thousands Sign Christian Petition Urging Bishops Not to Back Donald Trump - Newsweek - January 20th, 2024 [January 20th, 2024]
- Why Donald Trump Is Facing E. Jean Carroll in Court a Second Time - The New York Times - January 20th, 2024 [January 20th, 2024]
- Donald Trump Claims He Will Never Allow Creation of CBDC in the US if Reelected - Yahoo Finance - January 20th, 2024 [January 20th, 2024]
- Keller @ Large: What Donald Trump's win in Iowa means for the presidential race - CBS Boston - January 20th, 2024 [January 20th, 2024]
- Donald Trump tries to twist felony charges, lawsuits after Iowa win - USA TODAY - January 20th, 2024 [January 20th, 2024]
- Donald Trump Just Incriminated Himself on Truth Social: Legal Analyst - Newsweek - January 20th, 2024 [January 20th, 2024]