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Trump's Net Worth Drops $1 Billion As Coronavirus Infects The President's Business
Source: Forbes
Trump’s Net Worth Drops $1 Billion As Coronavirus Infects The President’s Business
We valued the president at $3.1 billion a month ago. Now he’s worth $2.1 billion. Here’s why.
Dan Alexander Forbes Staff
Money & Politics
To approximate how much the coronavirus affected the president’s fortune, we looked at changes in the price of stocks similar to each segment of his business. Commercial real estate was clearly down, with shares of several companies, including Boston Properties and Vornado Realty Trust, plunging an average of 37% from March 1, 2020, to March 18, 2020, the date we calculated fortunes for the billionaires list. Similar decreases dragged down the value of hospitality companies, apartment owners and golf businesses. Using those declines as a guide, we applied discounts to Trump’s precoronavirus numbers, then reviewed the changes with industry experts.
The bottom line: a net worth valuation of $2.1 billion—a drop of $1 billion in less than a month. That will surely change again, as every index performs like an electrocardiogram. But, says New York City real estate broker Eric Anton, “The analysis, it’s as good as any other way I can think of.”
The core of Trump’s empire, which the president still owns but his sons Eric and Don Jr. run on a day-to-day basis, remains tied up in commercial real estate holdings. Before the coronavirus disrupted everything, those properties were worth an estimated $1.9 billion after deducting debt. By March 18, 2020, that was down to an estimated $1.2 billion. Part of the problem: Trump owns 125,000 square feet of retail real estate near Fifth Avenue in Manhattan, typically a bustling retail corridor. Today, it’s a virtual ghost town. Office space doesn’t seem like a safe investment these days either, especially if America’s work-from-home experiment proves to be successful.
In addition to commercial holdings, the president owns more than 500 residential units across the country. The shutdown happened so quickly that there is still not much data on home sales, making it hard to determine what anything is worth. “Purchasers are unlikely to make their largest financial investment of their life through a virtual tour,” says Jonathan Miller, a New York residential real estate expert. Public markets, however, point to declining values. Stock prices of five apartment owners dropped by more than one third, on average, from March 1, 2020, to March 18, 2020.
-snip-
We valued the president at $3.1 billion a month ago. Now he’s worth $2.1 billion. Here’s why.
Dan Alexander Forbes Staff
Money & Politics
To approximate how much the coronavirus affected the president’s fortune, we looked at changes in the price of stocks similar to each segment of his business. Commercial real estate was clearly down, with shares of several companies, including Boston Properties and Vornado Realty Trust, plunging an average of 37% from March 1, 2020, to March 18, 2020, the date we calculated fortunes for the billionaires list. Similar decreases dragged down the value of hospitality companies, apartment owners and golf businesses. Using those declines as a guide, we applied discounts to Trump’s precoronavirus numbers, then reviewed the changes with industry experts.
The bottom line: a net worth valuation of $2.1 billion—a drop of $1 billion in less than a month. That will surely change again, as every index performs like an electrocardiogram. But, says New York City real estate broker Eric Anton, “The analysis, it’s as good as any other way I can think of.”
The core of Trump’s empire, which the president still owns but his sons Eric and Don Jr. run on a day-to-day basis, remains tied up in commercial real estate holdings. Before the coronavirus disrupted everything, those properties were worth an estimated $1.9 billion after deducting debt. By March 18, 2020, that was down to an estimated $1.2 billion. Part of the problem: Trump owns 125,000 square feet of retail real estate near Fifth Avenue in Manhattan, typically a bustling retail corridor. Today, it’s a virtual ghost town. Office space doesn’t seem like a safe investment these days either, especially if America’s work-from-home experiment proves to be successful.
In addition to commercial holdings, the president owns more than 500 residential units across the country. The shutdown happened so quickly that there is still not much data on home sales, making it hard to determine what anything is worth. “Purchasers are unlikely to make their largest financial investment of their life through a virtual tour,” says Jonathan Miller, a New York residential real estate expert. Public markets, however, point to declining values. Stock prices of five apartment owners dropped by more than one third, on average, from March 1, 2020, to March 18, 2020.
-snip-
Read more: https://www.forbes.com/sites/danalexander/2020/04/02/trumps-net-worth-drops-1-billion-as-coronavirus-infects-the-presidents-business/#51eb6622727d
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