Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 61

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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) — Liquidity and Capital Resources

InterGroup’s
liquidity is driven primarily by: (i) cash generated by its multifamily and commercial real estate portfolio; (ii) cash and cash equivalents
held at the parent; (iii) proceeds from refinancings at InterGroup-owned properties; and (iv) limited amounts of marketable securities.
InterGroup does not rely on Portsmouth for parent-level liquidity. Key expected uses of cash at the parent include corporate G&A,
parent-level income taxes, debt service on InterGroup property-level mortgages, and capital expenditures for its multifamily and other
real estate assets.

Parent
cash sources and uses for the next twelve months include:

●Real
                                            estate operations: Net operating cash flows from apartment and commercial properties, primarily
                                            in Texas and Los Angeles County, California.

●Debt
                                            service and maturities: Scheduled principal and interest on InterGroup’s property-level
                                            mortgages, including recently modified loans in St. Louis (maturity June 5, 2028) and Florence,
                                            Kentucky (maturity January 2035). InterGroup evaluates additional refinancing opportunities
                                            to optimize liquidity and interest costs.

●Capital
                                            expenditures: Routine unit turns and building systems maintenance; larger discretionary projects
                                            are prioritized based on expected returns and market conditions.

●Investments
                                            and other: Limited marketable securities activity; InterGroup may opportunistically recycle
                                            capital via selective asset sales or refinancings, subject to market conditions.

InterGroup
also provides liquidity to Portsmouth through an unsecured related-party revolving credit facility (see “Related Party Credit Facility
– InterGroup”). The availability of this facility depends on InterGroup’s own cash, cash flows from operations, and
financing capacity. If InterGroup’s liquidity were to be constrained, Portsmouth’s ability to draw on the facility could
be limited. InterGroup’s Board (or Audit Committee) oversees related-party transactions in accordance with the Company’s
policies and applicable SEC rules.

In
February 2025, the Company initiated a plan to dispose of a non-core 12-unit multifamily property in Los Angeles and commenced active
marketing in April 2025. The property was classified as held for sale at June 30, 2025. If completed, the sale would provide additional
liquidity; the Company currently expects to use any net proceeds for general corporate purposes, which may include debt reduction, reinvestment
in the real estate portfolio, and working capital. There