Former President Donald Trump’s golf resorts in Florida have become the primary income source for the Trump Organization, amidst financial challenges faced by his other businesses.
What Happened: A recent Reuters report reveals a shift in the Trump family business focus. A decade ago, the golf courses and resorts were a financial burden on the Trump Organization, which primarily profited from real estate. However, the tables have turned with the golf and resort business now accounting for about 80% of the company’s cash flow.
The Trump Organization, owned by Trump, is projected to generate approximately $80 million in cash after operating expenses this year, with annual revenues exceeding $600 million, according to Reuters. This is the first detailed estimate of Trump’s projected 2024 income as he vies for the presidency in November’s election.
Despite the golf business’s success, the Trump Organization faces over $530 million in court judgments and interest against Trump, his family members in senior roles, and his companies. The organization is also grappling with a weak commercial real estate market in New York and the uncertainty of the presidential race outcome.
Eric Trump, who runs the family business, responded to the reported projections, stating, “The Trump Organization is the strongest it has ever been.” However, he did not comment directly on the financial estimates or other specifics.
Trump’s wealth is largely tied up in his majority stake in Trump Media & Technology Group Corp DJT, owner of social media platform Truth Social. Despite a significant drop in stock value, the company still has a market capitalization of about $4.5 billion, with Trump’s stake worth approximately $2.5 billion as of Monday.
The crown jewel of Trump’s business is the Mar-a-Lago Club in Palm Beach, which is estimated to generate $24 million in cash in 2024. Three nearby golf-focused properties are also thriving, with revenue increasing post-Covid. The rise in golf-related cash flow underscores Trump’s popularity among affluent Americans, particularly in Florida, a stronghold of his Make America Great Again movement.
Why It Matters: Trump’s financial situation has been a topic of interest, especially with his bid for the presidency in the upcoming elections.
Recent reports have revealed that Trump holds between $1 million and $5 million in cryptocurrencies. He has also earned significant amounts from endorsements and book royalties, as disclosed in his latest financial disclosure.
However, Trump also faces over $50 million in legal liabilities, as revealed in his financial disclosure. Furthermore, the stock of Trump Media & Technology Group has hit new lows since its public debut on Tuesday, as reported by Benzinga.
Price Action: On Wednesday, Trump Media & Technology Group shares shot up 13% to $24.20 in the regular session and rose 1.45% in the after-hours trading to $24.55, according to data from Benzinga Pro.
Image via Shutterstock
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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