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Mar-a-Lago Profits Quadruple Since Donald Trump’s Presidency, Could Money-Making Property Keep Him From Selling DJT Stake?
Former President Donald Trump will be free to sell his stake in Trump Media & Technology Group Corp (NASDAQ:DJT) soon, but he might not have to thanks to the success of his Mar-a-Lago club.
What Happened: Trump’s Mar-a-Lago club and residence has made headlines for years and was one of the many talking points during a civil fraud case against the former president.
Trump purchased the 1100 S. Ocean Boulevard property in Palm Beach, Florida for a reported $7 million to $8 million back in 1985.
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Mar-a-Lago was valued at $18 million to $27 million by an assessor and valued at $24.15 million by Zillow. An expert who spoke on behalf of Trump’s team during the civil trial said the property could be sold for $1 billion to the likes of Bill Gates or Elon Musk as it is a one-of-a-kind property.
While the $1 billion price tag is high, a new report sheds light on how much money Trump’s famous property is making.
A Forbes report said profits at Mar-a-Lago have quadrupled since Trump left the White House in 2021. Among the ways the club makes money are rising membership dues, political fundraisers and other hosted events like weddings.
In 2023, the club took in around $40 million, which is double what the club made in 2019 before the COVID-19 pandemic put a damper on events. The figure is also triple what Mar-a-Lago made in 2014 before Trump started his political career.
The report says Mar-a-Lago brought in $90 million in the four years Trump was serving as the president of the United States. The three years after Trump left the White House have brought in $105 million in business.
Along the growing revenue, the annual costs to run Mar-a-Lago have mostly stayed in the $12 million to $16 million range. The profit margin went from 9% in 2011 to 60% in 2023 according to the report, with $22 million in 2023 profit.
“It is actually the best year we’ve ever had at Mar-a-Lago,” a manager told Forbes.
The club currently caps members at 500, who pay annual dues estimated at $15,000. Initiation fees are $700,000 and could rise to $1 million soon, with Forbes said the club has started a waiting list with all 500 spots filled.
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Why It’s Important: Trump’s political rise and past history as a president has helped boost the notoriety of the club and also the demand for memberships and to host events at the Florida property.
With Trump owning 100% of the club, the rising profits could help the former president with his mounting legal costs and 2024 election campaign. This could be potential good news for shareholders of Trump Media & Technology Group.
Trump owns 114,750,000 shares of the media company he co-founded, representing 64.9% of the company. By the end of September, Trump will be able to sell his stake in the company and maintain control, as Benzinga previously reported.
The decision of whether or not he will sell a portion or his entire stake comes as the social media stock, which owns the Truth Social network Trump frequently posts on, has hit new lows since completing a SPAC merger in March 2024.
The sale of the shares could lead to a further decline in the share price of Trump Media & Technology Group shares, while also freeing up additional capital for Trump to use in his election battle against Kamala Harris.
Trump’s stake is worth around $2.2 billion based on a price of $19.51 at the time of writing.
Trump Media & Technology Group shares opened for trading at $70.90 on March 26 when its long-awaited SPAC merger with Digital World Acquisition was completed.
While the company had a market capitalization of $8 billion and Trump's net worth soared to $6.4 billion, the stock quickly fell after the public debut and has fallen in recent weeks after Trump was found guilty of 34 counts of falsifying business records.
Trump faces a $355 million fine from a previous ruling in a New York court, and has spent hundreds of millions on legal fees related to several court cases.
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This article Mar-a-Lago Profits Quadruple Since Donald Trump's Presidency, Could Money-Making Property Keep Him From Selling DJT Stake? originally appeared on Benzinga.com