One of former President Donald Trump’s most historically successful assets — the skyscraper at 40 Wall Street — had a rough year.
Revenue at the building hit $27.7 million in the nine months through Sept. 30, according to Bloomberg News, citing loan data for the property. Looking at the annualized data, that would be the equivalent of an 11 percent drop year-over-year.
And its debt service coverage ratio has declined, going from 1.67 times in 2019 to 1.24 times in 2020, signaling possible difficulties in having the cash to cover its debt. The $137 million loan on the building, which is sponsored by Donald Trump, has been on a watch list since November due to pandemic-related revenue decline.
Occupancy was 87.3 percent as of Oct. 27, and some tenants have been offered concessions to stay on. But that may not be enough to keep certain companies in the building: After the Jan. 6 attack on the U.S. Capitol, the Girl Scouts’ New York City chapter was reportedly exploring its options to break the 15-year lease it signed in 2014.
Overall, the Trump Organization’s revenue fell by 38 percent in 2020, with its hotels and golf clubs losing money due to the pandemic. (Mar-a-Lago, the company’s club in Palm Beach, Florida, was the outlier, with a revenue increase of 13 percent.)
Trump’s company has more than $300 million in loans that will come due in the next few years, and several businesses have recently cut ties with the business in the wake of the Jan. 6 riot.
The building at 40 Wall Street isn’t actually owned by former President Donald Trump; he merely leased it for a term of up to 200 years. The building’s actual owners are a group of obscure, wealthy Germans, a TRD investigation revealed.
[Bloomberg News] — Sasha Jones