Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 49

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 49
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 requirements arise from (i) debt service and maturities on property-level mortgages within InterGroup’s real estate
portfolio, (ii) recurring capital expenditures across our multifamily and commercial properties, (iii) corporate general and administrative
costs and income taxes, and (iv) on a consolidated basis, debt service and required reserve deposits related to the Hilton San Francisco
Financial District (the “Hotel”). See Note 2 – Liquidity, Note 10 – Mortgage Notes Payable, and Note 17 –
Commitments and Contingencies.

Parent-level
(InterGroup) liquidity and cash requirements

InterGroup’s
liquidity is primarily supported by cash flows generated from its owned real estate portfolio (not Hotel operations), supplemented by
cash on hand and, where appropriate, property-level financing. Historically, Portsmouth has paid only limited dividends to all of its
shareholders, and none in the last 12 years; accordingly, we do not rely on Portsmouth or the Hotel for parent liquidity.

Near-term
parent cash requirements include:

●Debt
                                            service and required escrows on InterGroup’s property-level mortgages within the multifamily
                                            and commercial portfolio (see Note 10 for terms and maturities).

●Recurring
                                            capital expenditures to maintain safety, habitability, and competitiveness of our properties.
                                            We expect to fund these primarily from property operating cash flows and, as needed, property-level
                                            financing.

●Corporate
                                            G&A and income taxes.

●Board-authorized
                                            share repurchases, if any, which are discretionary and subject to market conditions and liquidity.

Longer-term
parent cash requirements include:

●Scheduled
                                            mortgage maturities and potential refinancings within our real estate portfolio (see the
                                            contractual obligations table under “Material Contractual Obligations” in this
                                            MD&A and Note 10).

●Value-add
                                            and repositioning capital for select properties, evaluated based on expected returns and
                                            available liquidity.

As
of June 30, 2025, we had cash and cash equivalents of $5.1 million and marketable securities, net of margin balances, of $1.0 million
(see Note 2 and Note 6). We also expect cash generated from real estate operations to continue to be our principal source of parent liquidity.
We may from time to time consider asset sales, refinancings, or equity issuance (subject to Board and, if required, stockholder approval)
as part of broader capital