Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 40

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 40
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 book values may understate economic value. Our consolidated financial statements are prepared in accordance
with U.S. GAAP, which requires real estate to be carried at historical cost less accumulated depreciation and, where applicable, impairment.
We do not record increases in the fair value of our properties to reflect market conditions or replacement cost. As a result, the carrying
values of certain long-held assets may be significantly lower than their estimated market values. Management believes the intrinsic value
of the Company—driven in part by the long holding periods of many properties and relatively modest mortgage balances on those assets—is
not fully reflected in the historical cost basis presented on our balance sheet. These views are qualitative in nature; we have not obtained
portfolio-wide third-party appraisals and do not undertake to do so. Actual realizable values are subject to market conditions, property-specific
factors, transaction costs and taxes, and may differ materially from management’s views.

22

RESULTS
OF OPERATIONS

As
of June 30, 2025, the Company owned approximately 75.9% of the common shares of Portsmouth Square, Inc. The Company’s principal
sources of revenue are revenues from the Hotel owned by Portsmouth, rental income from its investments in multi-family and commercial
real estate properties, and income received from investment of its cash and securities assets.

Portsmouth’s
primary asset is a 544-room hotel property located at 750 Kearny Street, San Francisco, California 94108, known as the “Hilton
San Francisco Financial District” (the “Hotel” or the “Property”) and related facilities, including a five-level
underground parking garage. The financial statements of Portsmouth are consolidated with those of the Company.

In
addition to the operations of the Hotel, the Company also generates income from the ownership and management of its real estate. Properties
include sixteen apartment complexes, one commercial real estate property, and three single-family houses as strategic investments. The
properties are located throughout the United States but are concentrated in Texas and Southern California. The Company also has an investment
in unimproved real property in Hawaii.

The
Company acquires its investments in real estate and other investments utilizing cash, securities, or debt, subject to approval or guidelines
of the Board of Directors. The Company also invests in income-producing instruments, equity and debt securities and will consider other
investments if such investments offer growth or profit potential.

Fiscal
Year Ended June 30, 2025, Compared to Fiscal Year