Donald J. Trump Statement 0! Financial Condition June 2004 CONFIDENTIAL 112000051479 3660a ?mm-uni. Weiser momma summatm Moi-teem!? 1mm; T6 5154331103 51!- ?[1233 MM COMPILATION RE PORT To Donald J. Tmmp: .a We how compiled the accompanying statement of ?nancial condition of Donald J. Tnnop us of June 30. 2604311 oceardanoo with Statomonts on Standaxds for Ammtiog and BMW Smrices issued by the American Institute ofCoIti?od Public Accountants. A oompilotioo is limited to presenting in the form of ?nancial infomtion that is the of the indimdual whose ?nancial 31111wa are prosootod. We how: not audited or roviewod the oocompaoying of ?nancial condition and, accordingly, do not express an opinion or any othcs? form of assistance on it. However. We did become aware of certain departures: from generally amounting principles that an: dwmibed in. the following Paragraphs. Gmorally accounting p?ociplcs require that in onlor to re?ect amounts to be remitted in the future It co?mztod current values the rights must he non-forfeitohlc, ?xed and dotmoinablo and not moire any ?mtre ouvim A3 diScusozod in Notes 4 and 5. servers! of the: values hove boon based on future intervals um. in ammo instances. are not [or ?xed or dotonninable amounts and, in some instazmos. are based on perfonummo of ?lm services. (homily accepted amounting ?rinoiplos Inquire that, with mpoct to out: ciaocly held busioocs entity. smnmoriwd Mommtion about 3.39613. liabilities and rcoults of operations for the moot concur year be discloocd in the ?nancial In addition, the meal w?matod value of each closely held laminar. should be recorded as a not (mots not of liabilities). Lastly. tho ownomhip puocotngos of each closely held should be The accompanying stotmnent of ?tmncial condition duos not include the monitor! monm?zod disotoouros and report: some closely hold boom cntitio: in a mono? that separately states 310% mot: and liabilities and states certain cash positions separately from thcir minted operating entity and (low not disclose Mr. Tnonp'o 0mm]: in Main closely held buoinmm Goomlly accepted nocotm?ng priociploo roqu'uc that tho motor ofno minim bearing depooits in exchange for rights or privileges bu moonlod at tho Value oftho tinbitity. As discussod in Note 4. tho [amt value of tho liability for nonvintomt bee?ng deposits received as a condition of membaship in club facilitioo has not been included in the :ocompuoying stateroom. of ?nancial condition .Mm-Wig cormoornmL TRODUQM 480 3661a Weiser Generally p?nciplw Inquire that mm] ?nancial a provision for cummt income taxes as we? as cs?maiud income taxes on the batman: 1h: cs?maled mqut valucs of mats and the as?mated cunwt amowts of liabilitics and their tax bases. The accompanying of ?nancial condition don not include such The cEecis of the Ram generally accounting principlw as described above have Because the Sigii?cancc and pervasiveuess of the tinnitus discussad above: make it dil?cull to assess their impact on it: stagnant of ?nancial condition. users of this ?nancial Santana-at should meagnize but they might di?cmnl :0me about the ?nmcinl condition of Donald J. had access to a revised mm of ?nancial condition prepared in conformity with awcpted accounting principlw. m. 12% CERTIFIED PUBLIC ACCOUNTANTS Iachuccws, NX 29. 2004 3662a CONFIDENTIAL 712000051451 Wm r) STATEMENT OF FINANCIAL CONDITION JUNE 30. 2004 (ScoAccouounts? Compilation Report) ASSETS Cash Escrow and mo dqftosits Wk: socuxitics - Trump Hotel: Casim Rosalia. Inc. Res} and Trump Tower 725 Fifth Avenue, Now York, Now York NECEIOWN East 57th Strut. New York; Now York 40 Wall Shoot -Ncw Yetk, Now York Club facilities -Now York. Florida, Now Jenny and California The Trump Wo?d Tom: at United Nations Plaza - Now Yoda Now York 100 Comm Park South Now Yo?c, Now You: Trump Plaza. Conunomial and minimal midm?al portions - Now York. Now York: Trump Palaoo, Tannp Pm and ParoEast Condominium. Commercial portions Now York. New York Tum? Hots! and Toworv On: Central Park Wool. Now Yank. Now York Pmpa?os undo: Wostc?hcator Comty.?Now Yozk Palmomhipa and joint woman (not of related debt}: Trump - Uppu Wost Side, Now York. New York Wasth?vcmo Pageants Avenuo ~Ncw York. Now York Trump Grands-s Ocean Rosort and Rwidcnow - Sunny Isles, Florida Chicago Pxopzr?osundcr in conjunction with othurs Other mots Total 050313 5 156,000,000 1 6.700.000 72.800300 349,400,000 213,400,000 410,000.000 560300.000 52.000000 40.100000 26,600,000 0,400,000 10,300,000 102000.000 1,204,000,000 12,500,000 133,000,000 4,590,000 259.000.000 90,000,000 ?191100.539 The accompanying note: an an {mogul part of this ?nanchl statcmant. 3663a CONFIDENTIAL 13000051402 o5.- LIABEITIES AND NET WORTH .?ccotmts payable and mod expanses Deposits payable Loans payabtc on ml and operating pmper?cs: relaxed to Tawny Tower Stunned lease bonds Loans to 40 Wall SiItct Loans related to crab Ewiti?cs Loans related to World Tomenitad Na?ow Plaza Lom minted to the commie! and residential portions of Plaza. NW Yuri: Loan related to cammarcial portions of Palace. Trump Pam and Trump Pm: East Condominiums Loan mind to Trump Intuua?onn! Hotel and Town Loans related to propw?cs under if: Comm Nuw Yoda Mortgages and loans payable; secured by othcr assets Commitments and condugcnciw Nd: worth Total liabilities and not worth 3664a 6.600.000 5.200.003 32,400,000 83.100.000 15:.000300 64,600,000 41,400,000 9.300.000 5,600,000 4,500,000 3.000.000 54mm; 420,200,000 CONFIDEWAL 13000051483 . .. M. DONALD J. TRUMP TO STATEMENT OF FINANCIAL CONDITION (Ste Accountants' Companion Report) BASIS or omourmom The 5131:111th of ?mncial condition consists oftho assets and liabilities of Donald J. Tmmp. Assets are stated at their ootimolod canon: Yahoo and liabilitlcs at their m?mntod tomcat amounts using voxious valuation mom Such valuation methods include, but on: not limited to, the use of appraisals capitalization of anticipated earnings, recent solos and offers and mstimatcs of current values as dotao?ncd by Mr. In with his associates and. to scam Minnow, outside Considcrablo judgment :5 mommy to market data and develop the relatod estimatco of current value. Accordingly, the estimates proseutod heroin are not occossax?y indicativc of tho amounts that could be realized upon the disposition of the assets oftho rotated liabilities, Tho usc of different maxim assumptions audio: estimation methodologico may have a motorist! effect on the wtimotod 'otmont value amounts. Gmomlly accepted accounting principles requires that ?nancial stalcmutls includc a provision for comm iocomc taxes as Well as estimatod moomo mm on the batman the estimated current valuos of assets and the estimated omen! amounts of liabilitios and their to: boson. 'Iltc ot' fumnciol condition duos not include such provisions Comm potsonol mots and liabilitlos, such as automobiles, pasonol and household affects and pamonl payoblcs have not boon re?ected the stateroom. . Emmi to generally accepted accounting principles, those ?nancial stamenls do not ro?cot the: value of Donald J. Tmmp?a worldwide reputation. What attachod to a no! property interest or gaming Valium. Mr. Wp?s name conveys a high dogma of quality and pm?tability; His persona rises to tho level ofan internationally brood mm. This pros?gc sig??cantly the value of the properties re?ected in those statements. as Well as that of his futon: projects. For the selling prices of condominium units at Trump Towa. The World Tower at United Notions Plaza and Trump Intunatlonal Hotel and Town? tho been recorded at the highest known lcvols per squaro foot. The goodwill attached to tho Tramp name has signi?oant ?nancial who that has not been m?cctod tn the. prcparatfon ofthis statement. CASH: Cash'represeots amounts hold by Donald J. Trump personally and mounts in opmting militia used for Working capitol, dob: amine and other busincss puxpodco. CO 3665a 3Q IN MARKETABLE SECURITIES (COMINTJEDJ: -Sinm: wandpxior to June 30. 2004. Mr. Trump had pumhasod 2,066,000 shows of the conunon stock on the 0pm maxkct. effect oflhc above :s was ofJum: 30. 2004 Donald 3. Tuna}: has bene?cial ownunl?p of 25 H679 610 shame of? the publicly hold enumeration, Hotcls 3r. Casino Resorts. Inc. 11133 ownership position is more ?tlly as follows: The 36.6% Ihnitod [ownership interest in Trump Hotels Casino Rooms Holdings. LP. is convcm?bic in whole: or in part into 131.918.7223 shares of Trump Hotels at. Casino Resorts. Inc. Note that the 1.000 Class shows now owned by Mr. has Voting power equivalent to the Ming power of the 13,918, 723 :30an sham but tho voting poww- of tho Class 13 Stock could to pmponionutciy diminished as voting common ohms are issued pumnnt to the: conversion rights. - 9.960.737 shares amend by Mr. Trump inchding the 7.394.737 sum of common stock which Mr. Trump acquired in July of 2003 upon the exchange of his [.500 shares of Series A Preferred Stock. .. - The beneficial includes 1.800.000 shares that Mr. has the right to acquire pumm to options described above, Mr. has also purchased bows issued by Trump Cosind Holdings, LLC With apar value and nominal value of815.000.000 as 13me 30. 2004. Those bonds providc an intmt min of I 1.625% per annum in be paid Manually and an additional 6% in the form of?paym?nt in 16 notos. Th: bounds mature in the yes; 2010. 011 June 30. 2004 the quoted market vain: of each share of Trump Hotels 8: Casino mus. Inc. was $2.42. The value asc?bod to Mr 'I?rump? owncmi?p Wurst: In tho publicly held company was derived Imed on that value multiplied by the number of stores which he e??cc?vbly owned on June 30 2004. Th: value of his bonds. $15,000. 000. was then addcd to that number to obtain tho value of those socmitios, 371800.000. This value: in subjoct to change.? it is based upon magic: conditions. 111: quoted market valor: ofcach sham of Tmnip Hotels 8: Casino Resorts. Inc. on September? 29. 2004 was 3 .75 . 3666a .. ?H?UH?(?li??vi -. an .1, A. CONFIDENTIAL ?1008051485 1 .: .4. REAL AND OPERATING PROPERTIES: Donald J. Trump wholly owns mo! and operating propcxtioo. Estimation value: oflhe and rotated debt are dam-sound on va?ons hm as described below. Trump Tower Donald J. Trump is My the oworrof 100% of tho equity intoxmts in the entities that own and operate in: mania! and mini! of the 53 ?oor mixcd~use property known a: Tatum Town. The propody also contains residential condominiums that on: owned by the memo. The communist! and mtni! mm of tho property on: located at 725 Fifth Menu: between East 56" and East 57" Streets in Now York City. It 1m boon dwe?bod as New York's most famous coxucmgomry building and thin] moot visited nth-action with in exam of4.5 million visitors annually. Trump Tower stands as a symbol of quality and success and is uncqnaled in tho quality of its retail. professional of?ce and point: condomix?mo spaco. Dosigncd by mowncd architect Dot Scott. this 68 ?oorbronzo glans and polishcd brass structure on Fi?h Avonno boasts 178.000 square foot ofcommcmiul space and 114.000 squat: foot of retail Spoon. Tho con?mting of the retail Space has manly boo) dunorn'tmtod when 1 world famous {mm dramatically expanded its space in tho property tlnough the you 2023 at rental rates which one among the highest in the. world. Un?t the construction of Tommy Worid Tower at United Nations Plaza, Trump Tower was the tallest residential building and concrete structure ih Tho estimated entrant voluo of $349,400,000 is based upon the of Mr. ?rump in conjunction with his associates and outside professionals of recent sales of comparable pmper?ts. Mr. Trump's Moms: in this has boon pchged os collatcm! with mood to a loan payable. As of June 30, 2004 tho amount of this debt was $32,400,000. The note matures on February 1, 2013 and beam interns! at the Into of7.36%. Roads in the amotmt of 52,524.000 how boon coorowcd pmant to the terms of this loan. This asset is re?ected in this ?nancial stoicmwt under 1h: caption?Escww and room: deposits." NIKETOWN Donald J. Tnunp is clumsily the owner of100% of the entity that is the lessee with moon: to two long-two ground leasehold estates mla?ogto [and and building: located betwocn Fi?h and Madison Avenue: and on 57111 Stroct in Now York City. On 8. 1994. the premisos were knee! to NIKE Retail Services, Inc. The NIKETOWN Mail store is a single building with ?ve ?oors containing approximately 65.000 square feet. NIKE Rotail Sowiccs, Inc. charactc?m its NKETOWN stores as high~pro?lc atom dcoignod to showcase NIKE products. The buiiding hos'dircct access to both tho 'n'ump Tower Atrium and the IBM Thong)? Block Amado. 3667a CONFIDENTIAL TRUE 0051436 ?12? 5-s- 4. REAL AND OPERATING mo 931mm (common WTOWN (Continued) The property is loosed to NIKE Retail Sw?ccs, Inc. for a term that will om! on May 31, 2017. -The lessee will then have the option to extend the lease for three ?ve-year terms beyond that date. Mr. ?I'mmp's mm in this property'both as loose: and tensor have been assigned to a. new utility?. which Iias used those lights to more bonds whidt. as of Juno 30, 2004, We?: in the amount of 583,100,000. Those an: 7.125% mm! lease bonds that axe dooignod to be self-mnorttzing through scheduled payments the last of which will take place on June 1. 20?. The bond an: ?Resigned to be satisfied by the mh?mum rental payments underthe termsof the NIKE tease. The mom Value of $212,400,000 re?ects the net imcoeds wi?ch Mr. Trump in conjunction with his associates and outside professionals mcpoct to be domed by him from rental activities {mutant to the lease desoxibed- above as well as the residual vatue oftho property. Sectoity deposits in the form of U5. Tummy Securities in the amount of 87,200,000 have been morowed pursuant to the toms ofthese mgcments, This asset is re?ected in this ?nancial statement under the caption E'Escrow amt meme deposits.? 40 Wall Strut-t OnNovunber 30, 1995. orienting which is wholly owned by Donald J. Tnonp,become the lessee made: a long-tom: gmuzud [ease for the property at 40 Walt Street in New York City. This is a 72-story tower of 1.3 million sthare feet. Mr. Trump has xeetomd this property to its position as domtovm Manhattan's omit-r of?ce building. The cot?anatodomreot vatue of 8410900000 is based upon an evaluation made by Mr. in conjunction with his associates and outside professionals of lenses that have been signed or are currently the 511th of negotiation and the prom: vetoe- of the maxim cash ?ow to be domed thehttilding's operations as won as its miduol vatue. Some ofthe major tenoots are American m, CNA humane; Countywide- hammer: and on.af?liate of Bear Steam: 8: Co. In the evaluation of this property provision was nude for ground rent paymento when forecasting the anticipated cash ?ow. The property is may subject to two mortgages payable to Wuchovia Securities. Ono mortgage is in the amotmt of $140,000,000 as of June 30, 2004. It is due on 3:11th 9.2005. Iriteroet is at 2.55% more than the Into known as the Inndon Extortion}: Offering Rate am! at Juno 30. 2004 was 3.788893. The other mortgage is in the Mount as oqune 30. 2004. It is due on September 9, 2005. 3668a CONFIDENTIAL TR000051487 02?. IW. :4 .meWW .- 4. .5. REAL AND OPERATING PROPERTIES (COW): 40 Want! Street (Continued) Inlerost ism 15% more than the rate known as the London Intc?bank Offoiog Rate and at June 30. 2004 was $238814. hands in tho amount of have been mod mount to the {arms of those loans. This asset is rc?octod in this ("modal under the. caption ?Escrow and move deposits?. Club Bunnie? Mr. Trump has ooqulrcd curtain ma?a; for the purpose ofdovdop?mg than into club ?lm'liliw. Several of thus: clubs will also contain to?dontial units which he will 15:11:: no! to others or sell outright. The ouant value of $560,000,000 is based on on men: of the cash ?ow that is expected to b: dmivod from club and rental operations or sale of midwife] units anon- subtracting tho caimarod costs to be owned. That assessment was prepared by Mr. Trump working in with his associates and out-doc professionals. mommy; moo. Mr. acquired this in 1985 and tronsfmod ownership 10 awholly ?ou'tcd liab?ity company in [99.5. It is? now an exclusive private club. Ono condition of mcmbeml?p is the contribution of non- booting dcpooits that do not toqufoc repayment until thirty years o?cr roccipt and than only upon a mantra: mignn?on. The foot that Mr. Tnnop will 11:19: the use of loose ?mds for that period without cost and that tho mum: ofmpoymeot will most likelybc a rcplaocmcm mmhus?l?p has lot! him to value this liability at mo. Through June 30, 2004 these deposits amounted to $26,264,000. The tool ownui by [he Club is the subject of a mortgage payable that had a balance a! June 30. 2604 of $15,300,000 and boom an tale of 8.50%. This mortgage will mom on April 25, 2010. Funds in the amount of$259.000 havobccu escrowod pursuant to the tum: orthis loan. This assol is m?octod in this ?nancial 513mm! undo: the: caption ?Escrow and mom: deposits." Emma gm i3 Briamlii'EMangr. [jaw Yo; Mr. Trump. though a who?)! owned mtity. acquixod Brio: Hall Country Club. B?ucli?' Manor. New York for $8,500,000. Trump Nanonal Golf Club opmod for play on July I. 2002. Conslmu?on of a 42.000 squam foot cIubhousc is under way and will in the spring ?I?hrochondrod amboing Ono condition of is the conoibotion of homing 3669a TR000051486 it d. "or. REAL AND OPERATING PROPERTIES (CONTINUED): Club Facilities (Continued) Two National GolfCiob in Biinreli??Manor. New YoMContinucd) deposits that do not who repayment until thirty years otter receipt and than only upon a membexe resignation. The foot that Mr. will have the use of these limos for that period without cost and that the some of repayment will meet likely be a replacement membership has led him to value this liability at zom. Though lane 30. 2004 time deposits amounted to $20,143,000. The real property owned by the Club is the subject of a mortgage payable that had a balance due at June 30. 2004 of $6,200,000 and beats on interest rate of 1.5% above the prime rate. At Inna 30. 2004, the rate was 5.50%. This mortgage will mum: on February 28, 2011. In addition to the Golf Club, this prope?y will contain 87 luxury condominilnn units. '?tese will consist of 1.6 townhouses and 71 units in two mtdoise buildings. Selling prices range ?om 31.150000 to 511450.000 with mga?td to tho townhouse units and $500 to $835 per square that with regent to units in the mid-rise building: The Attorney General of the State of New Yoda has accepted the oondominium plan not! sales have begun. As of June 30. 2004 there were eight open signed contracts for townhouses and two townhouse: h?ad been delivered. Deposits the mount of 51.930 000 have been received Rom unit pnretmsem and are re?ected' on this ?nancial statement as a liability under the caption Deposits payable. International Golf Club in Palm Beach Counts. Elation My. Trump, Huang]: 1: owned entity, acquired a long-tetra leasehold interest in land that he developed into a ?nal elm golf come along with a 45,000 square foot Sim-111m clubhouae which is cunently in operation. Five hundred and ?fty membetsl?ps are being o?'ered. One oondidon of membetship is the contribution of non-interest beating deposits that do not require repaymmt until thirty years after receipt and then only upon a moraines tesignntion. The m: that Mr. Trump will have - the usebfthooc ?elds for that period without cost at! that the source of repayment will most likely be'a replacement melon-ordain: has led him to value this liability at zero. "though J1me30. 2004 these deposits amounted to 531.662.000. Suf?cient land is minor lease and Mr. ?l?mtnp will he constructing an additional nine? hole came at this facility. The real owned by the Club is the subject of a mortgage payable that had a balance at June 30, 2004 of 87. 800000 and beats on rate of 1% ohm: the prime rate. At June 30. 2004.411: rate was 5.003.. This mortgage will mature on FebmaryZB 201! Funds in the amount of $140,000 have been escrowed with the county with regazd to this property. This same! is re?ected in this ?nancial statement under the caption ?Escmw and mew: emails.? 3670a 73090051439 .u'uu-u- are mama's-Jury; .. .. AM .- 4. .3- REAL AND OPERATING (CONTINUED): Club Facilitios (Continued) gm 1&1; Golgglub in Palo; Vndg. Califomjg Mr. Trump. through a wholly owned entity, acquitcd It proputy that he is developing into a golf course and club on the blu?lt oftht: soutitcm moot point of the Paton Peninsula in Calitbmia. Once completed this club will he lotown as National Golf Club I Lo: Angcics. Tho oourao. dosignod by Pcto Dye. reunites panoramic views of the Paci?c Ocean and Catalina Island from every holc. A world class driving rang: will also be availablo Th: clubhouse boasts ?ne dining in two Zagat rated mst'amnts a plum lounge, but and bonquct facility which can host spacial wants for up to 350 poople. In addition to tho Club, Ocean Trails is presently zoned for 49 home. sites with unparalleled ocean and golf com-s: view; Thu: will in: developed into homes which will sell for juice: that range from 55.000.000 to $9,000,000. Them-wilt also be 150 golfvillas which will be rented at rates that will range from 51.00010 $1.500 per night. Tho tool property owned by the Club is tho subject of a mortgage payable that bad a balance at June 30, 2004 of 320 ?00,000 and ham on interest rote of 793. This moxtgago willmaturoon it 2004 Funds in the mount of825?.000 have been pursuant to the terms ofthis loan. This mat is rc?cctod in this ?nancial undcr the caption ?Escrow and mo dqmsits.? National Gol?Clnb in New Jase? Mr Tonnp, though a wholly owned entity, acquired opwperty consisting of580 new that has been dotclopcd into a world-class golf mum: and club tn Now Juscy. Tho Club is designed by Tom Fozio and opened tn the sumo: of 2004. Mombmhip positions are being oft?md at $175. 000 but will reach a love] ??5225 000 over time. This ma oflhe Club can commotion 300 too-robots. Tho Club's pmpotty will also accommodate a second golfcotuso with facilities for 300 additional wombat. 'Ihcre will also be 18 cottages available for rental by members. In addition to the golf course, members luvotbc use of an Olympic sized swimming pool and an equation center. Ont: condition of membership is the contribution of non-intmt booting doposits that do not roquito repayment until thiny you: alter mocipt and then only upon a mom migration. Ibo that that Mr. Trump will have the use of mods for that poriod without cost and that the some ol? will most likely be a replacement has led him to value this liability at zero. Through Jun: 30. 2004 thus: dtposils mnotmtod to $22,175,000. 3671a couFmeunnL 4. -9- . REAL AND OPERATING PRO PERTIES (CONTINUED): Club Facilities (Continued) alioml (30! oh in ow onlinucd Dcposits in the amount of $380,000 have boon received ?om potm?al 111:1an and are re?ected in this ?nancial statement a: a liability under the caption Deposits payable." The real property owned by tho Club is the subjoct oftwo mortgages payable. One had a balance at June 30, 2004 of $11,300,000 and boom an inmost rats of 1% above tho prim: rate but will but at least 5. Th: c??oolivo 1an at J'tmc 30 2004 was 5 590.1105 mortgage will mom: on Foomaty 28 2.01! The other mortgage is in Favor of the: persons ?om wliom the properly Was 30un The mortgage had a balance at Juno 30. 2004 0134. 000.000 andbcamanintomst mtcot'4. 75%, whichwaslho primctatous of the dot: of purchaso. October I l. 2002. mature on September 30. 2004 and 2005. Trump World Tower at United Nations 151m Donald J. Trump developed and con?rmed a supcr luxury twideolial condominium development ?11845 Unitcd Nations Plaza in New Yon: City. The tower has a gross arcs of 8772000 square feet and 125060 feet in high. The building is situated at tho comor oftho Unilod Nations Plan with momma to the United Nations Park tho East River. Mdmwo and Downtown Manhattan. 111m: on: 370 sopcr luxury condominium units with coiling hcighl vaxying ?om 10 lo 16 foot at the uppermost ?oors. As of I one 30. 2004 331 units have been sold at prices that encoded 5900 par square foot. In addition to the condominium units a bar and a mutant an: on the ground ?oor level. Then: is valol policing facility for 75 cm below grade. Mr. will mtnin and root out those spaces. The current value of $152,000,000 re?ects the not which Mr. Thump in conjunction with his associates and outside professionals expect that It: will denim: ?om unit solos doting potiods oubsoqucnt to June 30 2004 haw! on comm! pricing as well as the residual value of the conunoccial spoon which will b: retained by Mr Trump bcposits in the amount of $2,360,000 haw: boon roceivod ?'oin purchosm and an: ro?ectod in this ?nancial statement as a liability moor the caption Deposits payable." Mr. Trump's intervals in this propcny have pct-n pledged as collateral with rospcot to two loam relating to this property. One had a balance at June 30. 2004 of 511300.000 and bears an rate of the great? 013456 moo: than them: lmown as the London Interbank Dill-ring Rate or 7% and at June: 30 2004 Was 70? o. The other loan had a balancc Juno 30 2004 and hours an inmost rat: 0156?); A portion of both loans was to ho repaid each time a unit is dchvorod. Both loans were repaid in September of2004. Funds the amount 01?3670 000 had been mooted as of June 30. 2004 ottoman: to tho (eons of the loans doom?bed abovo. 111w: funds on: to?oozcd in this ?nancial statement under the caption ?Escmw and mm: dcposats 4 .4 3672a CONFIDENTIAL . and? m. .A- a \ul REAL AND OPERATING PROPERTIES (CONTINUED): The Trump Wodd Tower at United Nations Plaza (Continued) Mr. Trump has also piudgcd his in this pmputy as collateral with regard to a pnmbasc money note payable: to his former partner with regard to this mmrc. The balm of that not: v-;as 815,000,000 at June 30, 2004. The not: was issued with Original issue discount ?50 that mom! is incinsivc of at 3.49% through its due date which is January 12. 2006. tweentmiruk South at Tmmp?mBast Condominium and consists Skunk tummy. apartment house [heated at the com of Centmi Park South and 'mr. Avmuc ofthc Nuuictts. 'Iltc imputy also contains a commercial condotnhtinm unit that is may lama to three retail tenants. Mr Trump has converted tit: pro-pert) to :1 Condominitm Through Jun: 30 20-04. units with tt value of$24.034. 000970 haw: hem sold. The cummt value of 540,100,000 re?ects the net that Mr. Trump in with his associates and outside pmfewonais expact that he will derive from residential unit sale: dining pm?uds subsaqucnt to June 30 2004 basal on cumut pnciug. Trump Plaza Cooperatives Trump Plan: was duv duped by Mr Trump in 1983 and Was sold pursuant to a coopmtivc o?'cring plan. The is located on Third Avmue Gist and 62nd Streets New York City. The mats m?octcd' at this statunmt certain miduai interred: that Mr. Trump still owns. ?i'hesc consistoftwo msidcntiai units. and long~tmn [cmhoid {mistrust in two maidentiai townhouses. each comiating of four rcsidmtial units, a parking gamgc and commits] Space. The estimated current value 0326 600 000 15 based upon a appraisal ofmoat of the intervals describad ahow: ($24,700 000] and an made by Mr in con?mctinn With his associates of the Value the balance of the property interests Mr. Trum?s imam! in the: twa residential townhouses. the parking garage and the commercial spacchas been pledged as collateral with respect to 3 tom payable. As of June 30, 2004: the amount of this was $9,300,000. The notp mm on l. 2004. and bars him at the rate of Subccquwt to ?June 30. 200-1 this loan was me. Will the amount of $215 000 havehccn mowed to that term of this loan. This me: is tn this ?nancial statement nudcr the caption "Escrow and reserve dcposits. 3673a CONFIDENTIAL 13000951492 4. -11. REAL AND OPERATING momma: (common): Trump Palace, Trump Parcand hump Part East Condominiums -Commudal Portions 'I?hese won: fully developed and the only areas that remained tomato as of June 30. 2004 were: - 42 storage units at Trump Palace Condominiuin . 33 storage units, at putting garage, and other oommcmial condominium spaces at Trump Pam - the commercial condominium olunente at Trump Part: East CondomMum The estimated comm! value of 58.400.000 was based on an mode by Mr. Trump in oonjtmotion with his use-sinus of the value of the various properties dumbed above. These properties have been pledged as collateral with respect to a loan payable. As of June 30, 2004, the amount ofthis debt was $5,600,000. The note matums on August 31,. 2004 and beats interwt at the prime rate. As omeo 30. 2004, the intctest rate was Suboeqoont to June 30. 2004 this loan wasxe?nanccd at the ozone intemst rate and a maturity date of August 11, 2009. Trump International Hotel and Tower Donald J. Trump joined with General Electric Pmion Trust and The Galbraith Company in the redevelopment and convmt'nn of the former Building at Ono Central Part: West in New York City ?om rm of?ce tower into a luxury residential and hotel condominium development. Under the terms of Various agreement: with his associates and the condominimu. Mr. received certain the based upon the suocoss of the venture and fees relating to property opemtiom. The estimated mm value ofStD,800.0t30 was based upon on an assesmneot made by Mr. Trump in with his madam of the remaining compensation which he and entities which he owns will ?have as a result of hotel and motel operations as well as the value ascribed to the retained comm metal condominium elements of the These are the game ?toitity. the restaurant and an easement with respect to themo?opam, them fromhis former partners. Mr. Trump's interest in this pmpextyhas boon pledgod ts collateral with respect to a loan payable. As ot?Iuno 30, 2004. the ammnt of this debt Was 54.500300. The note on January 30, 2009 and beam totem? at the prime rate. As ofJ'une 30. 2004. the interest rate was 4.00%. 3674a CONFIDENTIAL 112090051493 I outdoan; 4! REAL AND OPERATING PROPERTIES (COMB): Properties Under Development In Weslehuter Comm New York Mr. 'I?rmnp mind a property known a: The Mmsion at Sam: Springs in Bedford. New York wl?ch consists of mm: 200 new of land. at 13131195an and other buildings. This propeny win be transformcd into 20 luxurious henna It has been valued at $80,000,000 based on an Wm! made by Mr. in cOnEUnction with his Wales and outside pmf?ssitmals ofthc projccted cash ?ow which he will dozive as thosa units an: constructed andsold This pmpatyis the of?. mortgage payable lhal had a balance due a: Jam 30, 2004 of $8,000,000 and bcam an rat: that is the highcr of1% man: than the. prime or 52.5%. June 30. 1004. the rate was 5.25%. This mortgage will mature on July 1. 2005. Funds' u: amount 01'371 .000 have been mowed pursuant to the term of 11115 loan This 15 this ?nancial atalamcnt Under the caption ?Escrow dcposits." Mr. acquired two additional! parcels ofiand in County, New York for development audio:- sate. Out: of tha- is the subject of an option wl?ch permits the potential purchase: to buy that for $15,000,000 and has been valued at mat amount. The mud has hm valued a: $7,000,000 based on its campmablc fcahn'es. A dcpusit in the mount of 55003100 has been mccivod Exam the potential pmhascr (1me above and is re?ected in this ?nancial statement as :1 Liability under the. caption Deposits payable.? 3675a CONFIDENTIAL 111000061494 .43. omuonsnips AND JOINT mm: Estimates of comm value of Mr. Tmp?s intomsts in pmtoast?po and joint vmtures rc?cct his Mm thank: and mo dctmoiocd on various boom, as daaibcd below. Trump Plow Construction and 551m activity are Wall undmy at the 764m: Trump Place located along the Hudson Rim botwwo 72m! and 59th Streets in Manhattan. Six of the seva buildings scheduled for on: complete. Those buildings 240. 220. 200, ISO. 160 and 140 Rivmido Boutcvox? are tocatod between tin: newly built oxtoosion ochst ?Hot and West 66th the nowty built Rivomidc Bouicvoxd and. Fmodom Plano. ?80 Rivmidc Boulevard, 3 luxuty rcntoi house, is 98% tented, at rates that avengo $50 per square foot. There on: also 104 in the building that are rented pursuant to a lottery sopuvised by a oompmfit agmcy. 160 Rimsido Boutcvord owned in Febmazy of 2001 and is now more than 97% occupied at luxury roots that average more than $50 square foot. 200 Rivasido Boulwatd is now in full operation as a condon?nium with all ofthc 376 units sold and ocwpiod. Construotitm at 220 Riverside 30111er is oomph-ta. At 43'atorics and um 800,000 gloss squat fact it is the largest and tallest building on the site. This building if; compriwd of 441 luxury condominium units with mmpossci! amenitiw mu! breathtaking views. While the selling prices of condominium at 200 Riverside Boutcvaxct won: in excess of $600 per squm root, those a! 220 Rivugside Boulevard exceeded $312 per squat: foot and all units have; boon sold. At 140 Riverside Boulevat? motal antivitiw have macho! the 92% occupancy Like its neighbors to?the north. this 26-32013! building is a luxury rental expecting to average 1on1: comparable to tho uthor buiidmgs on the site. Ofits 353 units, 71 no: he o??ordabtc housing units to be: rented pursuant to a toting: supervised by a non-pro?t again}? and the balance are tuxuxy mun! apartmento. The sixth building is The Hating: at Trump Plocc batman i1? and 72'? Shoots. also known as 240 Rivuoido Drive. It com-tots of 170 units of tu?xury condonm?nm housing. Om: numbed and fifty of these units have been ootd ot-pn?cui that excood m?avcxagc (?51233 zoom foot. Four other mitts have hem-sold at prim that am'ogc $1.740 per squint. foot. This pmputy is 31 storioo tail and contains 266,937 squat: fact. A tease has beet: signed for commutiot gomgos at 220. 200, 180 and 160 Riverside Boutevord and additional commcroial spoon: an: being octivcty o?'crod for loosing. 3676a CONFIDENTIAL TR000051495 .1. nu.- 5. 44. PARTNERSHIPS AND JOINT VENTURES (CONTINUED): Trump Place (Continued) The entire propm'ty consists of 76 261133 and has boon ?tlly zoned for 5,700 housing units, retail and other uses totaling 7.9004100 some foot of above ground Space. Mr. owns 30% of. the attire project. Mr. Hoog Kong based partner: and various other compaoiw are obligated to ?rm! the dovolopmmt of this project. The estimated annual value. of 31.204.000.000 is based upon on no woman mode by Mr. Trump in conjlmotion with his associates and outside professionals of tho net cash that tho punter-ship will derive from magnetism fans, property sales and tho rational value. of tho property. They then applied his percentage of own-ship in order to dodvc the value ascribed to his position in this ?nmoiul statcmoot. Miss Universe Pageants In October of l996. Donald J. Trump ocqt?rcd all of the assets that togethu- arc tho "Miss Univers: Patients.? to 2002 NBC boom: :1 50% joint venture pnxtioipnnt in those: ao?vitios, replacing CBS. Th: company producos the M155 Univnnze Pageant. the Miss USA Pageant as Well as the Miss 330611 USA Pageant. The pageants have boon rede?ned to proacnt the combination ol'otylo and intelligence that dofmc the woman of the new millennium. Tonnp Hotels Cadno Resorts Holdings. LP. owns a 25% iota-est in this wanton: and M1. 1mm owns the remaining 25%: The alliance with NBC has enabled the Miss Univontc Organization to bring together wome?n ?nm around the world in the Spirit of ?lm class competition. The mutant prime-time network television specials are broadcast lion to a worldwide audience. As a Insult of this notoriety, alto fans for Miss Universe events for then: paid to similar organizations. In valuing his 25% in this at $2,500,000 Mr. Tumor.- ond his associates considcroct negotiations currently in process with rogtml to owoorahip ofthc other totem. 'l?mmp Park Avenue Donald J. joined with Gwen! Electric Pension Trust in the development of tho former Dolmonico Hotel at 59" Street and Park Avenuo in Now York City. Tho property consists of 134 midootial condominium units that range ?nm one to Woo bodmoma contained in approximately 220.000 squro feet. Duplex units am localod on the 31" and 32'? ?oors. pmportyalso ctmtains 30.000 squam foetofoommomial spam. 3677a CDNFIDENI 1A1. .l 54 AND JOINT VENTURES (CONTINUED): Trump Park Avenue (Continued) Coslas a pmmiuent architect long associated with luxury uchitottmo, has boon engaged to maintain the prewar aesthetic of the area by designing elegant apartment homes. Mr. Kondylis has previously designed such prominent pmpu?os no Trump International Hotel and Town The Trump Wo?d Tower at Unitod Nations Plaza, and 610F211: Avenue that was a commiou oftho formor MayfairHoteL Panic will become synonymous with an upoczlo huma?oml charactc?zod by gtooiottsn-oss and old wozid [minty aidllfuily blooded with modernity at unrivaled location. Undo: tho terms ofvasioos ogrocmonts with his patina. Mr. 'l?rmnp is to receive curtain foes and parmaship distributions ham! upon the 1mm ofthe venom. As :3me 30, 2004, 67 units have sold at p?ocs that cxocodod 51,500 square foot. The estimated oummt value of $133,000,000 was based upon on on mment made by Mr. Trump in conjunction mt}: associotw and outside professionals of tho compensation and panuotship distributions that Ito and entitiw that ho owns will mccivo as a result of tho sain- ofcondomiz?um units as Well as the midual value of tho commie} space; v'l?rump Gran do Ocean Retort and Residence: Mr. Tonnp has ontomd into a solos and marketing license agrounoot with Bow Pmpettioo for ocho?pmmt located Bal Harbour and Amturo. Upon oomplotion. this poojoct will contain ?ute buildings on eleven acrcs endocmty LOGO-linear feet of m?otamptod ocea?'mnt propaty. The Trump International Sonostn Beach Matt was the ?rst Emitting completed and. Opened to thepub?c in May of 2003. The oondominimn hotel contains 372 rooms, ballroom. a state-ofdho-an husi new center and 20,000 how: foot of meethtg rooms. with approximately 82% said. Currently under mouc?on is '1?:qu Palace. :1 rxidootioi condominium tower with 267 units that are scheduled for completion in August of 2005. 93$: pro-sold. Pro-common oaks of the thin! residential condominimn called Trump Royal: have also begun. Construction of Trump Roy?owill begin in Octobor2004 and is approximately 76?. pro-Sold. 3678a .Ma vulva-nun. lint-II.? my. .vaL H.16- mo 30m: VENTURES (comm: Trump Grand: Ocean Resort and Residence: Um the team of Various agreements 'Wilh his associatu. Mr. Trump is to receive focsbasodupon thew-cacao Tho cs?mutod com-.111 value of 3430.000 Was based upon on an moss-mun male by Mr. 13111311) in conjunction with his associates 0?th common that he and m??ca tlzathc am will duivc as to mull ofproputy sales opaa?om. Trump Town Chicago Donald .L Trump and Holliugcr International Inc. had .enlaod into ?an to develop Trump Inmmlomd Hole! Tower at 401 Norlh Wabaall Shoot, the site oftho form Chicago Sana-Tuna Under a revised amml. Hollingcr will sell its inimin the and the joint venture to Mr. and has received 34 million in cash as :3me 30. 2004. with a balance (?369 million in cash to ba received closing, fora total. of$73 million. The: closing is to ?our in Golobcr 200-1.. Mr. considers this to be a cost of his acquisition of (ho property and re?ects it in his man of tho comm: value dwc?hcdbolow. The project is a 2.5 million square root, 904mm sugar?1mm mixed-1m: tower located along the Chicago River just off Michigan Avamc. The glass curtaimwall bullding has boon dosigned by dw.mddmowned ?lm of Sla?dnlore. Goings and McnilL The building will contain 461 residcn?al condominiums, 22? hotel condon?nimns. approximately 100.000 square foot urn-.1111! and mom along a river walk. a 1.2 am publiopnxk and indoor pa?dng {militia {hr mm: 1.000 cars. Salas and winding of condominium began in of 2003 and contracts have boon signed 673$ oftho units with a value in exam of $447 million When complete in 2003. Mr. Trump will manage building under tho Trump qualioml Hotel Tower ?ag. Th: building will be the {null}: 1311151 building in Chicago? and one ofihc most luxurious buil?inga in the. world. The cs?malod custom value of $259,000,000 m?octs lhe not placed: which Mr. in with his associates and outside expocl that he will dhivc Rom unit sales as the property is developed and units dclivmd to during periods subsequent to June 30. 2004 as well as the residual value of Illa camcmlal space which will be retained. 3679a 1 ~17- AND JOINT VENTURES (CONTINUED): Prawn!? Under Developmentto Conjunction with Others Mr. Trump has fanned certain associations with other; for the pmposc: of dwelophxg - certain 13me as descn?bed below. The estimated convent vain: of $90,000.000 was based on an assessment made by Mr. 'l?mmp in with his associates and outside profmiooals of the cash ?ow that is expected to he don'ved by him Rom these associations as their potchtial is realized. 1?me Tm L35 2335 A joint venture agreement has been signed between Mr. and Hyde Park. LLC byPhiIip Ru?in) to 11113 [d a hunt)! resldoi?al condominimn Iowa near the Las Vegas Ship. The pmputy is opposite the moss Fashion Show Mall and is planned to he the tallest residential tower in Las Vegas with over 1,000 condomit?um units. The site is part of no existing hotci and amino complex. which Rodin to rte-develop qcpmotqu. The project is currently Seeking zoning and condominium pier: approval. A sales and marketing program is also currently being planned. with a reservation only sales program tainted to begin in 0010th 0152004 and contract sales to in early 2005. Hand Villas and International Golf Club atRaF?es Resort and .Tmm as? Canouonlslan Vino tam! t? ad 'cs di Mr. has entered into a sales and ma?octing agreement with the developer of this property for the purposes of opemting a 5~stnr mood and buifding toxidcntial villast The project consists of a ?ti-room Ramos Resort 6: Spa. with a ?I?romp casino and Trump Imm?onalv?olf Club. The midm?al will consist of 135 villas and customdesignoi estate homes, all to ho sotd with private golfclub The Rn?lco Rand will open in the fall of2004. and sales will begun on tho villas in Dec-ember 2004. Internet Tow mm A development ogneemmt has bocit signed with?the developer of this project to build 3 68-51013? manhole! and residential ooudomh?um tom in downtown Tomato. Mr. Tm intends to brand and manage the building under the Intonation! Hotel Tower 11:3. 1110 building will 263 hotel oondominimns and War 100 msidcntial condootinms, as we]! as mutants and a health club 5: spa. Pro-males for the cohdomh?ums began in April 2004.111: dovdopcr will seek ?nancing upon a cumin percentage ofpm-mlec required 3680a L.- IM-KA. .?Il-vl? Mutp . CONFIDENTIAL 50 ~18- PARTNERSRIPS AND JOINT VENTURES (CONTINUED): Properties Undernevelapment tn Conjunction with Others Continued) Trump International Beach Chub Fort ?mags. Fioridn A development agreanent has been sign! with the developer ofthia project to build a luxury, ocean front hotel ctmdomh?um in Fort Laudmtate. Mr. Mend: to brand. and manage the building under the Trump International Hotel EL Tow/er ?ag. The building will contain 99 hotel eondon?nimns. as well as remit space and pxivate heatth club. The project has received zoning approval. and pro-sales for the mndamh?nms are cxpeeted to begin in thefntl To 3 F10 dn A development agmment: has been signed with the developer of this project to build a tuxwy. ocean ?ne! hotel condominium in Fort Landudate. Mr. TnmIp intends to brand and manage the building under the Hats! Tower ?ag. The building will contain 26! hold condominium, as well as retail space and a p?vate heatth club. The project is seating zoning appmVal, and lure-sales for the cundeminiums are expected to beginin the spring 1111 mg I 5561111150113! Hate] 1:93;; A devetomcnt agreement has beef: signed with the developer ofthis pmjec: to build a [many residential and hotel condon?ninm en Road. Mr. intends to brand Ind manage the building under the Trump Intema?ennl Hutd &Tower ?ag. The pmjoct val! centein 200 eendan?nitmts and 150 res'kleluial condominiums, as well as mum and I private health club. I?m?sales for the condominium an expected to bey'n In the spring (?2005. IBM Tgwg; 131mg Tm Eo?d? A dc?tmlapmmt has been argued with the developer of?uis project in build a ?ll-story luxury residential condemix?um in downtown Tampa. The building will Contain 200 condominiums. as well as retail space and a private health club. I?m-sales for the condeminiumsm: expected to begin in the ?ll] onOG-t. 3681a CONFIDENTTAL 712009051500 .19- OTHER ASSETS: Tm mp Tower Mr. Trump owns a triplex on the top tints ?oors of Trump Towa- (soc Not: 4) Mr. Trump and his associates haw: estimated the moron: Value :3th apartmcut to be 360 ?00,000 based upon their of tho Wino of similar unique tool The is subject to a mortgagothal had a balance due at Jun: 30. 2004 of 36 300090 and beans an interest rate of 7 35%. The mortgage will mum: on i, 2005. Manet?Logo Mr. Trump owns two homo: which an: contiguous to the club at Mao-khan which 13 mom fully dosm?bcd' in Null: 4 Mr. Trump and his associatns estimated tho moron: win: of 111055. homos to be $4 00!} .000 that based upon ntheir imowlodge. of the value of similar tmiqu: real property intomstsin Ilium proportion have bomplodgcd as collateral with to twa loans. One had a baiancc at June 30. 3004 nfssoonoo and ham an ml: of 1.5% man: than the rats known as tho Lomloo Intotbonk Gaining Rate and at June 30 2004 was.. 7 .7373. This loan will omturc on January 1 2019.1?hs other loan had a bnimcc at Juno 30 2004 700 000 and bears an interest rate of I 35% .Inorc than the rain brown as that London Interbank Oiforing Rate and at June 30. 200-1 was 2.989" This loan will mature. on February 1, 2019. Corporate Jet An entity owned by Donald J. Trump 1: the owner of 2 J81 aircraft. Mr. Trump and his associates have octimatod the: cut-rout value (>st uiromft to he 58 000 000 based upon their knowledge of the value of annular union: property. The Wollmn and Lnsker Skating Rinks In Central Park Having reconstructed the Wolimnn Rink' in 1936 Mr has been associated with - its success in bringing onjoymmt to the pooplc ofthe City and its wounding am. . The City has granted a to opomtc and Inanagc both the rinks in Control Paris until Jun: 30. 201? This arrangement has been since Novunbcr 011200! and is achieving gamat acclaim from all parties. The estimated mm will: of $2,500. 000, Winch Mr. Trump and his associates have ascribed to the license. was based upon the present value oftho not cash ?ow that thcy 'omcct he will deriv: non: this mangomcnt. 3682a coumoENTtAL 111000051 501 mu- I?M??nnwuua??un - . . mm.?s ?aw-I. 6. 40-: 0mm ASSETS (comm: Other Mr. Trump and entities that he owns control mural other 31:ch bushiocsoa as well as properties which an: in ofdo?volopmmt. The assets mlatod to them- interests include: an lotmational tatcnt agmcy mamgoncnt company that supervisos the opcrotion of condomiz?um pmpu'tico as well as Mr. Trump's om pmputios receivables amounts earned to date with organ! to telovisioo, radio, game and book publishing ondwvon: rights with mm to ?our: potformoacos on tclovision, radio and other media activities . propertioc owned in with his siblings consisting pr'noarily of rented :1th units being mama! in proportion com'cttod to mapua? vo ownership 8 The mounted current value of thcso assets of 334.600.000 is bascd upon on on aoscsmucul mode by Mr. Tommy in conjunction with his associates and outside professionals ofthc cash ?ow that tho); meet 11:: will dcdv: ?om those: ondcavom. COMMITMENTS AND COWGENCIES: Mr. Trump also has pcrsonal mousibilitico with mpoot to various employment conmts. construction contracts. loan and othor commitments. Those include mom: obligations consuming Momhip guarantees mlating to monomplc?on and acceptance ofcataiu projoots. Mr:Tmnp and his n?iliatoo are panics to various lawsuits and legal actions. A: the pmont limo, tho outcomo of those. proceedings cannot be estimated. Mr. Tramp believes amt those logal actions will not ban: a mamrial affect on his ?nancial milieu. Mt. Tmmo holds gaming booms ?ow the Now Jamey Casino Control Commission. as wall as a lime in tho state of Indiana, whim mgulm tho owomhip and operation ofvaxious casino and 1101:! facilitios. Ho was also found suitable to hold a casino [ism in the state of Nevada and has boon approved for a liccnso to manage casino an?itics by the National Indian Gaming Commission. 'Ihc various otsioo control oommisaions have broad discretion with ward to the issuance. Nomi, or mansion of these: liomscs. The: casinos am panics to various administrative prom-?ling involving allegations ofviolations of ocm?n provisions of the Casino Como! Act. Mr. Txump and his af?liates bolicvo that the ?nal outcome of that: wit! not have a malarial admoo affect on his ?nancial position. 3683a CONFIDENTIAL COMMITMENTS AND CONWGENCIES (CONTINUED) Various taxing authorities am currently auditing Mr. Trump and certain of his af?liates. At the pm: time, the outcome ofthesc examinations cannot be Mr. Trump paiodica?y maintains funds on dcposit in han?ng ins?mdoiu in execs; of FDIC insurcd amounts. He is at risk for any mm acceding the FDIC amount. 3684a CONFIDENTIAL TRDGOOMSDII .m