Mar-a-Lago has quadrupled since Donald Trump’s presidency, could the money-making property stop him from selling DJT stock?

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Mar-a-Lago has quadrupled since Donald Trump’s presidency, could the money-making property stop him from selling DJT stock?

Former President Donald Trump will be free to sell his stake in Trump Media & Technology Group Corp (NASDAQ:DJT) soon, but he may not have to due to the success of his Mar-a-Lago club.

What happened: Trump’s club and residence, Mar-a-Lago, has made headlines for years and was one of 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 in 1985.

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Mar-a-Lago was valued at $18 million to $27 million by an appraiser 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 because it is a unique property.

While the $1 billion price tag is high, a new report sheds light on just how much money Trump’s famous estate 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 through increased membership fees, political fundraisers and other events hosted such as weddings.

In 2023, the club took in around $40 million, which is double what the club did in 2019, before the COVID-19 pandemic put a hold on events. The figure is also triple what Mar-a-Lago did in 2014, before Trump began his political career.

The report says Mar-a-Lago brought in $90 million during Trump’s four years as president of the United States. The three years after Trump left the White House brought in $105 million in business.

In addition to rising revenues, annual costs to operate Mar-a-Lago have mostly remained 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 profit from 2023.

“This is actually the best year we’ve ever had at Mar-a-Lago,” one manager told Forbes.

The club currently limits membership to 500, who pay annual dues estimated at $15,000. Initiation fees are $700,000 and could reach $1 million soon, with Forbes saying the club has started a waiting list with all 500 seats filled.

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Why it’s important: Trump’s political rise and past history as president have helped increase the club’s notoriety, as well as demand for memberships and hosting events at the Florida property.

Since Trump owns 100 percent of the club, the growing profits could help the former president with his mounting legal costs and his 2024 election campaign. That could be potentially good news for Trump Media & Technology Group shareholders.

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 retain control, as Benzinga previously reported.

The decision on whether or not to sell some or all of its stake comes as shares of the social media company, which owns the Truth Social network that Trump frequently posts to, have hit new lows since the SPAC merger was completed in March 2024.

The stock sale could further depress Trump Media & Technology Group’s share price, while freeing up additional capital for Trump to use in his election battle against Kamala Harris.

Trump’s stake is about $2.2 billion, based on a price of $19.51 at the time of writing.

Shares of Trump Media & Technology Group 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 cap of $8 billion and Trump’s net worth rose to $6.4 billion, the stock fell quickly after its 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 an earlier New York court ruling and has spent hundreds of millions on legal fees related to several court cases.

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