Forbes

Trump’s Debts Come Due

-

On January 20, President Trump will leave office—and return home to oceans of red ink.

On January 20, 2021, President Trump will go back to being Businessma­n Trump. He’ll still have plenty to keep himself busy. At the top of the to-do list: figuring out how his businesses will pay off more than $1 billion in debt coming due from 2021 to 2025. Expect a series of big-money deals that will enable Trump to draw cash from his estimated $3.7 billion in assets. 2021

555 California Street | San Francisco CREDITOR: Unclear • DEBT: Est. $162 million

Trump owns 30% of this Bay Area building alongside publicly traded Vornado Realty

Trust, which has a 70% controllin­g share of the project. On an August earnings call, Vornado CEO Steven Roth suggested the partners could replace their current $541 million loan with a

$1.5 billion one. Doing so would increase Trump’s debt load in the long term while presumably allowing him to extract more than $250 million of cash upfront. That, in turn, could give him some breathing room to pay back other loans.

2022

Trump Tower | New York

CREDITOR: Ladder Capital • DEBT: $100 million

Trump has been paying only interest since he borrowed this money in 2012. The $100 million balance comes due September 6, 2022.

1290 Avenue of the Americas | New York

CREDITOR: Unclear • DEBT: $285 million

In partnershi­p with Vornado, Trump also owns 30% of this Sixth Avenue skyscraper. Vornado is exploring whether to sell or refinance both assets they share with Trump, but the current market has complicate­d things. Vornado’s CEO admitted in November that the properties might not yield the sort of pricing he had originally hoped.

2023

Trump National Doral | Miami

CREDITOR: Deutsche Bank • DEBT: Est. $125 million

Deutsche Bank extended $125 million to Trump in Miami, in addition to roughly $170 million in Washington, D.C., and $45 million in Chicago.

All three properties are in trouble. No wonder the German bank is reportedly looking to ditch Trump.

2024

Trump Internatio­nal Hotel | Washington, D.C.

CREDITOR: Deutsche Bank • DEBT: Est. $170 million

During the 2016 campaign, Trump liked to boast about the fact that he had secured a lease to the government-owned Old Post Office: “Maybe I’m a good negotiator—who knows?” But it looks as though the Obama administra­tion, which struck the agreement, actually got the better of Trump. The government ended up with a guaranteed $3 million a year in annual rent, while Trump got stuck with a hotel that appears to be bleeding money.

Trump Internatio­nal Hotel & Tower | Chicago

CREDITOR: Deutsche Bank • DEBT: Est. $45 million

Profits at the president’s Chicago hotel plunged after he got into politics, with net operating income dropping from $16.6 million in 2015 to $1.8 million in 2018, according to documents obtained by the Washington Post.

Trump Plaza | New York

CREDITOR: Ladder Capital • DEBT: $13 million

The president controls retail space, a garage and two brownstone­s near Third Avenue in Manhattan, which he has leased to various tenants, including his own presidenti­al campaign.

2025

40 Wall Street | New York

CREDITOR: Ladder Capital • DEBT: $138 million

Two weeks after launching his 2016 run, Trump borrowed $160 million against his tower in Manhattan’s Financial District. The building has been underperfo­rming. But given that the property is still worth more than twice the value of the loan, Trump’s lenders should be safe here. Safer, certainly, than Deutsche Bank.

 ??  ??
 ??  ??
 ??  ??
 ??  ??
 ??  ??
 ??  ??
 ??  ??
 ??  ??
 ??  ??

Newspapers in English

Newspapers from United States