Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 28

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 28
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 renovation and
return to inventory of 14 guest rooms previously converted to administrative offices. A portion of the advances funded these required
reserves and, to a lesser extent, pre-refinancing operating shortfalls. As of June 30, 2025 and 2024, amounts owed to InterGroup were
$38,108,000, and $26,493,000, respectively; no principal payments have been made to date. Following the March 2025 refinancing, ongoing
Hotel operations have been funded from operating cash flows, and the InterGroup facility is maintained as a contingent source of liquidity.

If
necessary, the Company may amend its by-laws to increase the number of authorized shares, allowing it to issue additional equity to raise
capital in the public markets. Such actions would be subject to Board approval and, if required, shareholder approval under applicable
corporate law and listing rules.

RENTAL
PROPERTIES

As
of June 30, 2025, the Company’s investment in real estate consisted of twenty properties located throughout the United States,
with a concentration in Texas and Los Angeles County, California. These properties include sixteen apartment complexes, three single-family
houses held as strategic investments, and one commercial real estate property. All properties are operating properties. In addition to
the properties, the Company owns approximately 2 acres of unimproved land in Maui, Hawaii. As of June 30, 2025, all the Company’s
operating real estate properties are managed in-house.

Description
of Properties

Las
Colinas, Texas. The Las Colinas property is a waterfront apartment community along Beaver Creek that was developed in 1993 with 358
units on approximately 15.6 acres of land. The Company acquired the complex on April 30, 2004 for approximately $27,145,000. Depreciation
is recorded on the straight-line method, based upon an estimated useful life of 27.5 years. Real estate property taxes for the year ended
June 30, 2025 were approximately $1,190,000. In October 2021, the Company refinanced its 3.73% existing $15,900,000 mortgage note payable
on the property and generated net proceeds of $12,938,000. The outstanding mortgage balance was $28,800,000 as of June 30, 2025. The
annual interest rate on the mortgage is fixed at 2.95% for ten years