We all know that Donald Trump is a very rich businessman, but how much does he really ‘weigh?’ Is he worth $3 billion, or fantastic $10 billion?
Donald John Trump – the Republican celebrity presidential candidate – has claimed to be worth more than $10 billion! That’s a sort of claim that news writers find hard to withstand when it comes from someone contending the highest office in the country.
Is this a true account of his real estate wealth? Let’s see what official sources claim to oppose the statement of the future U.S. statesman.
If we are to trust an analysis that included the candidate’s 92-page personal financial disclosure form, his wealth is rounding $2.9 billion. An analysis by the Bloomberg Billionaires Index, based in part on a 92-page personal financial disclosure form made public last week, revealed a portfolio dominated by golf courses and skyscrapers.
Trump has vaulted to the top of some polls in the crowded field of Republican contenders hoping to be in office in the White House next year. His comments against illegal immigration and Senator John McCain’s status as a Vietnam War hero have attracted public attention and curiosity —and renewed the focus on his many and varied claims to the size of his own wealth.
The volume of Donald Trump’s fortune is derived from real-estate holdings that include a partnership with Vornado Realty Trust in Manhattan’s 1290 Sixth Ave. and 555 California St. in San Francisco, resorts such as the Mar-a-Lago and Trump Doral resorts in Florida, and Trump Tower on Fifth Avenue in New York, according to the Bloomberg index. Other properties include Turnberry in Scotland and Doonbeg in Ireland, both golf courses.
How has this fortune been estimated? Well, the Bloomberg index values the real estate based on income it currently produces. Trump’s retail spaces could fetch higher rents if vacated and leased to new tenants at prevailing rates. It does not value Trump’s brand beyond accounting for cash held in accounts for his licensing deals and business partnerships. However, Trump’s own estimations include much higher values for his brand.
Hope Hicks, a Trump spokeswoman, declined to comment on the subject. Mr. Trump said that they did not know what they were talking about in an interview with CNN on Tuesday evening.
What did Iowa event bring forth?
During a campaign rally in Iowa on Saturday, Trump said critics had doubted whether he would run for office because of the financial disclosure requirements.
They said that he was probably not as well-off as people are inclined to think. But then it turned out he was much richer than he was believed to be. Only last month, Trump released a summary of his net worth as of June 30, 2014, which calculated his fortune at $8.7 billion, including $3.3 billion for the value of his name.
Bloomberg Billionaires Index
For your info, the Bloomberg Billionaires Index is a daily ranking of the world’s biggest fortunes. It uses a standardized approach to value the assets owned by the world’s wealthiest people. The analysis included a review of the personal financial disclosure Trump verified, signed and filed that was made public by the Federal Election Commission. The document provides top-line information on cash, marketable securities and airplanes, offering further clarity on assets.
The federal disclosure does not require Mr. Trump to list real estate that is only for his own use, nor other personal property such as art or clothing.
What is the disclosure range?
The federal form requires disclosures of value ranges rather than specific sums. The government does not mandate how to assess real estate fortune. Trump valued many properties in excess of $50 million—which is the highest category on the form.
The Bloomberg analysis is based on purchase dates, square-footage figures, rental, occupancy and capitalization rates, operating margins, valuation ratios, leasehold arrangements and other mortgage data. The information was drawn from Trump-affiliated websites, documents filed with New York City and property consultants including Real Capital Analytics Inc., CBRE Group Inc., DTZ Holdings Plc., Faith Hope Consolo at Douglas Elliman Real Estate and Larry Hirsh at Golf Property Analysts.
How much do royalties and fees add to Donald Trump’s wheel of fortune?
We are aware of the fact that there may be additional assets that the analysis does not include. The federal disclosure lists 11 entities without values or incomes, and those are not included in the calculation. Trump’s disclosed revenue range of $32 million to $55 million from royalties; television, management fees, model commissions, restaurants and beauty pageants are accounted for as cash too.
The following is a list of Trump’s assets, as valued by the Bloomberg index:
The 30% stake in the 2 office buildings that are majority-owned by Vornado is valued at a combined $640 million net of debt.
Trump’s golf and resort properties are valued at a combined $570 million, based on price-to-sales ratios for similar properties. Trump said last month that these holdings are worth $2 billion based on the June 2014 figures, without disclosing his methodology.
1.A leasehold at 40 Wall St. in New York is valued at $550 million before debt. Trump purchased the lease, which expires in 2059, for $10 million in 1995, according to property records. He has the option of extending it through 2194.
2. Trump Tower is valued at $490 million, before debt. That includes Trump’s 30,000 square-foot (2,787 square meter) penthouse apartment, and the building’s offices and retail spaces, including the Gucci store, which is valued at $250 million. It doesn’t include the building’s condominiums, which Trump has sold, and are accounted for as cash.
3. A leasehold at New York’s 6 East 57th St., which houses Niketown, is valued at $470 million. Trump paid an annual rent of $125,000 for the building through 2008. The following year, it jumped to 6 percent of the property’s fair market value, leaving room for Trump to negotiate his rent, said Charles McDowell, owner of London-based Charles McDowell Property Consultants.
4. Trump has also developed several condominium buildings in Manhattan, and still owns some unsold storage space in the basements of these buildings. He owns unsold condominiums, including full-floor units at 502 Park Ave. that are valued at $200 million. One of those apartments sold for $21 million this month.
5. About $300 million in cash, securities and aircraft, based on the maximum value for each account and security provided in the federal disclosure.
6. The index subtracts $350 million total in liabilities, mostly mortgages on marquee properties such as Trump Tower, 40 Wall St. and Trump Doral.
The real estate mogul turned ‘presidential hopeful’ when he disagreed with The Forbes 400 estimates of his net worth for decades. Here it is:
Real Time Net Worth As of 6/10/16: $4.5 Billion
2015 Forbes 400 Net Worth: $4.5 Billion
Source of wealth: television, real estate
Self-Made Score: 5
Residence: New York City, NY
Citizenship: United States
Marital Status: Married
Education: Bachelor of Arts / Science, University of Pennsylvania
Donald Trump on Forbes Lists:
• #324 Billionaires (2016)
o #113 in United States
o #405 in 2015
• #72 Powerful People (2015)
• #121 Forbes 400 (2015)
• #30 Celebrity 100 (2013)
Back in September, Forbes estimated Donald Trump net worth at $4.5 billion, but Trump said he was worth much more than that. Fortune magazine even built a calculator claiming that readers could use it to estimate their own net worth using “The Donald’s math.”
It is worth noting that Trump once estimated his “brand” at net worth of $3 billion. Although this is not hard cash [or any other tangible asset for that matter], there is a certain good value in it.
In July, Bloomberg News put a value of $2.9 billion on Trump’s wealth, and the reality TV star said that the founder of the media empire, Michael Bloomberg, may have told them to do it because he always wanted to do what he was doing. We think that means ‘run for president,’ but perhaps Mr. Trump was suggesting that Bloomberg only wanted to be a real-estate developer and a popular reality TV star.
When Donald J. Trump and his 4 brothers inherited their father’s real-estate business in 1974, the company was valued at an estimated $200 million. Trump’s share would have been worth $40 million. According to Vox.com, if Trump had invested that $40 million in an S&P 500 index fund in 1974, and reinvested all the dividends, not cash out and paid no fees, by August of 2015 he would have been worth $3.4 billion.
The Associated Press reckons that if Trump had invested $200 million in an index fund in 1988 (a Forbes estimate of Trump’s value at the time), Trump would be worth $13 billion today. A similar calculation using an S&P calculator figures he would be worth $11.3 billion after fees and taxes.
What math does Donald Trump use to calculate his own net worth?
In a deposition he gave in a 2006 lawsuit, he explained the issue in this way:
Question: Let me just understand that a little bit. Let’s talk about net worth for a second. You said that the net worth goes up and down based upon your own feelings?
Answer: Yes, even my own feelings, as to where the world is, where the world is going, and that can change rapidly from day to day. Then you have a September 11th, and you don’t feel so good about yourself and you don’t feel so good about the world and you don’t feel so good about New York City. Then you have a year later, and the city is as hot as a pistol. Even months after that it was a different feeling. So yeah, even my own feelings affect my value to myself.
Question: When you publicly state what you are worth, what do you base that number on?
Answer: I would say it is my general attitude at the time that the question may be asked. And as I say, it varies.
Business insider’s Point Of View
Donald Trump – Republican presidential front-runner – said on Monday, during a CNN interview, that he does not believe that the former New York City Mayor Michael Bloomberg (I) reported net worth is roughly $37 billion, as estimated by Forbes
Trump also said that Bloomberg’s financial data and news company were overvalued and far more unstable than the real-estate empire on which he has built his fortune.
He said that it was a technology company: if someone came in with a better machine than him, people would stop using his machine. With that, he was referencing Bloomberg terminals, the systems that provide users with real-time news and financial data.
Trump said he did not even know why other companies had not come up with a better machine. They come up in such a competitive world, but for some reason they haven’t come up with a better machine. I don’t know. Maybe because he was the late mayor of New York?
Mr. Michael Bloomberg is reportedly mulling a run as an independent candidate on a centrist, technocratic platform. He reportedly may jump into the race if Trump clinches the Republican nomination and U.S. Senator Bernie Sanders (I-Vermont) becomes the Democratic nominee.
Trump, on Monday, reiterated to CNN comments from last weekend, saying that he would love to square off against Bloomberg in a theoretical general-election matchup. He used to think of him as of a good friend, but, however, he doesn’t any longer!
Donald Trump’s personal riches were the subject of some scrutiny last year before the billionaire disclosed his finances. In July, he lashed out at Bloomberg News and the former mayor after the media organization ran an analysis asserting Trump’s net worth at just under $3 billion — far less than Mr. Trump had claimed on financial-disclosure statements. Trump implied that Bloomberg may have asked his reporters to underestimate Trump’s net worth because he is green with envy.
Indeed, Donald Trump’s uncompromising longshot campaign for the Republican nomination for president is looking less unrealistic after big wins in early primaries in New Hampshire and South Carolina.
Up-to-date, Trump has spent only $18 million of his $4.5 billion fortune on his run. All in all, his campaign has raised merely $25 million.
The Big Apple: Nobody has ever bet enough on the winning horse…
Mr. Donald J. Trump is definitely a man of ‘presidential substance.’ You will agree that his real estate turnover [that is the annual sales volume net of all discounts and sales taxes] has a sporting chance to lead to Obama’s handover of his presidential authority.
And one more thing: If Trumps wins the presidential close race, he certainly won’t have any housing problems!
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