Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 50

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 50
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 planning. See Note 9 for additional financing information.

Consolidated
(including Portsmouth) liquidity and cash requirements

On
a consolidated basis, our material cash requirements also include those of Portsmouth and the Hotel:

●Hotel
                                            debt service consisting of interest-only payments on the senior mortgage loan with Prime
                                            Finance and the mezzanine loan with CRED REIT Holdco LLC, as well as required reserve deposits
                                            (taxes, insurance, and FF&E) and compliance with lender-approved budgets. See Note 10
                                            – Mortgage Notes Payable for terms.

●Cash
                                            Management Agreement. Under the Cash Management Agreement with Prime Finance and Wells Fargo
                                            Bank, all Hotel receipts are deposited into a lender-controlled account and disbursed for
                                            approved operating expenses, debt service and required reserves. A cash sweep applies during
                                            periods when DSCR thresholds are not met. These arrangements restrict upstream distributions
                                            from the Hotel until the applicable conditions are satisfied. See Note 17 – Commitments
                                            and Contingencies.

Given
these restrictions and the Hotel’s current cash management framework, we do not budget for parent-level liquidity from Hotel cash
flows.

28

Contractual
obligations and maturities

A
summary of our contractual obligations, including principal and interest by year, is presented in “Material Contractual Obligations”
within this Item 7 and in Note 10 – Mortgage Notes Payable. We have no material off-balance sheet arrangements. See “Off-Balance
Sheet Arrangements”.

Outlook

Based
on current cash, expected cash flows from InterGroup’s real estate operations, and access to property-level financing, management
believes existing liquidity sources are sufficient to meet parent-level material cash requirements for at least the next 12 months. On
a consolidated basis, Portsmouth’s March 28, 2025 refinancing improved its maturity profile and liquidity; Portsmouth remains current
on required debt service. Nonetheless, uncertainties remain, including interest-rate levels, operating costs, capital needs in our real
estate portfolio, and, for the Hotel, San Francisco market conditions and loan covenant/DSCR requirements. We will continue to monitor
these factors and adjust operating plans and capital allocation accordingly. See Note 2 – Liquidity and Risk Factors.

Management’s
Liquidity Assessment

As
further discussed in Note 2 – Liquidity, the Company has taken proactive steps to stabilize its liquidity profile, including:

●Completion
                                            of a refinancing of