Identity of Trump’s creditors is no mystery | Donald Trump News
When President Donald Trump appeared at an NBC town hall Thursday night, moderator Savannah Guthrie asked a question that has been raised a lot over the past two weeks.
“Who do you owe $ 421 million to,” Guthrie asked, citing a recent New York Times article on Trump’s tax returns that said the bonds would mature within the next four years.
The idea that his creditors are a mystery has become something of a meme in the wake of the newspaper’s report that lenders are often not identified on tax returns.
But the identity of Trump’s lenders has been known for half a decade. In 2015, then-candidate Trump filed his first personal financial disclosure with the U.S. government. It lists the debt-burdened properties, the names of the companies that issued the loans, the due dates and a range of debt value.
Additionally, since loans are mortgages, they exist in public records, with county registrars, and in some cases, in commercial mortgage-backed securities.
The majority of Trump’s liabilities can primarily be grouped into three groups: loans issued against its office buildings by commercial real estate lender Ladder Capital; loans issued by Deutsche Bank AG against relatively risky properties such as its Washington hotel and Doral Resort; and loans contracted by Vornado Realty Trust on two office towers in which it holds minority interests. Most of the other loans are older and smaller.
The $ 421 million figure cited by The Times is a personally guaranteed subset of at least $ 600 million in loans that Trump’s company owes. On top of that, around $ 450 million in debt is tied to its 30% stake in the Vornado office towers.
Some of the loans were sold as commercial mortgage-backed securities and are now owned by a large number of other investors – some of whom cannot be easily identified. They typically include pension funds, insurance companies, hedge funds, and other institutional investors.
Given the fragmented nature of the ownership of this debt, it is unlikely that even the Trump organization would know about these investors or contact them about the loans. If problems arise with the debt, communications are usually made through an intermediary called a loan officer.
Many loans will mature in the next few years, but Trump, whose previous career included a series of bankruptcies, likely has some flexibility.
When he refinanced Trump Tower in 2012 with a $ 100 million loan, it was valued at $ 480 million. A refinancing of 40 Wall St. in 2015 secured a loan of $ 160 million on a valuation of $ 540 million.
This left both properties with relatively low leverage for Manhattan real estate, suggesting either newly learned financial conservatism on Trump’s part or disgust on the part of Ladder Capital, Trump’s second-largest lender after Deutsche. Bank.
An August valuation of buildings by the Bloomberg Billionaires Index, based on current net income and going cap rates, was less optimistic, putting them at $ 365 million and $ 375 million, respectively. But until the pandemic wreaks havoc on office values, properties could carry a lot more debt, if Trump needed it.
Because Trump made the historic decision to retain ownership of his businesses, and because the government’s record was self-declared, critics and professional ethicists have long feared that Trump may have other unstated responsibilities that could pose questions. conflicts or even a risk to national security. But no such liability materialized.
At one point, Trump updated a disclosure to reflect money owed to Michael Cohen, his former personal attorney, who paid adult film actress Stormy Daniels to prevent her from going public with the affair allegations. with Trump.