Donald Trump is still facing financial troubles as he owes over $540 million in legal penalties from various cases in New York. The former president’s cash on hand is estimated to be less than the amount he owes. Trump’s real estate empire is also not a source of immediate liquidity, as his most valuable properties are controlled by others. The CEO of Vornado Realty Trust, Steven Roth, holds the majority stake in Trump’s two valuable towers, making it unlikely for Vornado to buy out Trump without putting undue pressure on its cash reserves.
Analysts believe that Vornado would only consider buying out Trump’s stakes at a discounted price, similar to a previous deal with department store shares three decades ago. If Vornado were to acquire Trump’s stakes at below-market value, they could potentially sell them to other investors to recoup their investment. However, the limited buyer pool for noncontrolling interests in office real estate and the lingering effects of the Covid-19 pandemic on the market could impact the potential sale price.
If Vornado decides not to buy out Trump, he could explore other options to raise cash. One possibility is selling his $6.2 billion in stock in the Trump Media and Technology Group, the parent company of Truth Social, which is currently locked up. The stock is set to be released in September, around the same time that the fraud appeal arguments in Trump’s case are expected to begin. If Trump is able to hold onto his stock until then, he could potentially sell it to raise the necessary funds without having to navigate the complexities of his real estate holdings.
The situation is further complicated by Trump’s history of debt problems and dealing with legal challenges. If he is unable to secure the necessary liquidity through the sale of his stock or a potential buyout by Vornado, he may need to explore other avenues to come up with the cash. However, the limited options available for selling noncontrolling interests in office real estate and the uncertain market conditions pose challenges for Trump to raise the funds he needs.
Despite the challenges Trump faces in securing liquidity to address his legal penalties, there is potential for a resolution if he can navigate the complexities of his real estate holdings and capitalize on the opportunity to sell his stock in the Trump Media and Technology Group. The outcome of the fraud appeal arguments and Vornado’s decision on buying out Trump will play a significant role in determining his financial future. With the clock ticking on his stock release and the impending legal proceedings in New York, Trump’s financial troubles are far from over.
