The real estate mogul should have no problem paying back his loans in the short term. But come 2024, when he might be running for president again, things could get dicey.
Donald Trump’s business owes an estimated $1.3 billion, nearly $200 million more than it did when he left office. But that doesn’t mean that he’s under more financial pressure. In fact, Trump’s balance sheet is in better shape today than it was months ago.
The reason: Earlier this year, JPMorgan Chase helped loan $1.2 billion against a San Francisco office complex in which Trump holds a 30% minority interest. As a limited partner, Trump would not be personally liable for that debt in the event of a default. But it still has a huge effect on his finances. In fact, the new loan allowed Trump and his business partner, publicly traded Vornado Realty Trust, to pay back their previous debt against the building, which was due last month, and extract about $616 million in cash.
In other words, the refinancing increased the debt on the property but also provided its owners with more liquidity. If Trump received 30% of the cash-out, the deal would have boosted his liquid holdings from an estimated $110 million to nearly $300 million.
That cash could come in handy over the next couple of years. In September 2022, Trump has another loan coming due, this one worth $100 million on property he owns outright—the commercial space inside Trump Tower. Theoretically, Trump could refinance that loan as well. The real estate is worth an estimated $275 million, so a bank should be willing to offer a fresh $100 million against it. Even if the former president can’t find a firm to refinance Trump Tower, he should be able to pay the money back with his own funds.
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