Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 101

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 101
---
  
    Year  

    Total  
    2026  
    2027  
    2028  
    2029  
    2030  
    Thereafter 
  
    Mortgage and subordinated notes
    payable 
    $197,458,000  
    $930,000  
    $106,663,000  
    $6,588,000  
    $1,845,000  
    $16,032,000  
    $65,400,000 
  
    Other notes payable 
     1,838,000  
     425,000  
     463,000  
     317,000  
     317,000  
     316,000  
     - 
  
    Interest 
     38,526,000  
     8,711,000  
     14,091,000  
     2,645,000  
     2,580,000  
     2,436,000  
     8,063,000 
  
    Total 
    $237,822,000  
    $10,066,000  
    $121,217,000  
    $9,550,000  
    $4,742,000  
    $18,784,000  
    $73,463,000 

Of
the amounts shown, Hotel-related mortgage and mezzanine balances are obligations of Portsmouth’s subsidiaries; InterGroup’s
parent-level mortgages relate to its non-Hotel real estate portfolio.

IMPACT
OF INFLATION 

Hotel
room rates are typically impacted by supply and demand factors, not inflation, since rental of a hotel room is usually for a limited
number of nights. Room rates can be, and usually are, adjusted to account for inflationary cost increases. Since Aimbridge has the power
and ability under the terms of its management agreement to adjust Hotel room rates on an ongoing basis, there should be minimal impact
on the Company’s revenues due to inflation. For the two most recent fiscal years, the impact of inflation on the Company’s
income is not viewed by management as material.

The
Company’s residential rental properties provide income from short-term operating leases, and no lease extends beyond one year.
Rental increases are expected to offset anticipated increased property operating expenses.

CRITICAL
ACCOUNTING POLICIES AND USE OF