Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 94

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 property-level operating risks (including maintenance, tax and insurance costs);
capital market conditions; and other risks described in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, and
in other reports we file with the SEC.

You
should not place undue reliance on forward-looking statements, which speak only as of the date of this report. We undertake no obligation
to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required
by law.

RESULTS
OF OPERATIONS

As
of September 30, 2025, the Company owned approximately 75.9% of the common shares of Portsmouth Square, Inc. The Company’s principal
sources of revenue are (i) revenues from the Hotel owned by Portsmouth, (ii) rental income from multifamily and commercial real estate,
and (iii) income from investment of cash and securities. Portsmouth’s primary asset is the 558-room Hilton San Francisco Financial
District and related facilities (including a five-level underground garage). In addition to the Hotel operations, the Company generates
income from owned and managed real estate, concentrated in Texas and Southern California.

Three
Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

The
Company had a net loss of $535,000 and $398,000 for the three months ended September 30, 2025 and September 30, 2024, respectively. The
increase loss primarily reflects the absence of an incentive management fee waiver that reduced Hotel operating expenses in the prior-year
quarter, partially offset by improved operating income from the real estate segment (stronger occupancy and modest rate growth).

-21-

Hotel
Operations

The
Company had net loss from Hotel operations of $1,455,000 for the three months ended September 30, 2025, compared to net loss $725,000
for the three months ended September 30, 2024. The increased loss primarily reflects the absence of the prior-year incentive management
fee waiver and higher compensation costs under new labor union agreements.

The
following table sets forth a more detailed presentation of Hotel operations for the three months ended September 30, 2025 and 2024:

    For the three
    months ended September 30, 
    2025  
    2024 
  
    Hotel revenues: 

    Hotel rooms 
    $10,428,000