Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 5

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 (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 is no assurance as to the timing, terms, or completion of the transaction. In
the ordinary course of portfolio management, we may selectively dispose of non-core assets or recycle capital where we believe market
pricing is attractive. Any such activity will depend on prevailing market conditions, property-level performance, tax consequences, and
our capital allocation priorities. We can provide no assurance as to the timing, pricing, or completion of any disposition.

Related
Party Credit Facility – (with InterGroup as lender)

Portsmouth
maintains an unsecured related-party revolving credit facility with InterGroup for contingency liquidity. As of this report date, Hotel
operations have been self-funded and no incremental draws have been required to support operating needs. Key modifications include:

●December
                                            2021: Portsmouth assumed $11.35 million upon dissolution of Justice Investors L.P.

●July
                                            2023: Available increased to $20,000,000; maturity extended to July 2025 (0.5% modification
                                            fee).

●March
                                            2024: Availability increased to $30,000,000 (0.5% modification fee on incremental $10,000,000).

●March
                                            2025: Availability increased to $40,000,000; maturity extended to July 31, 2027.

●May
                                            2025: Rate reduced from 12% to 9%.

The
facility bears 9% interest, is interest-only, and may be prepaid without penalty. During fiscal year 2025, Portsmouth borrowed $11,615,000
to fund