Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 62

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 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 refinancing and operations. As of June 30, 2025, the outstanding balance was $38,108,000, with no principal repayments to date.
See also Note 9 – Related-Party and Other Financing Transactions. All material intercompany accounts and transactions have been
eliminated in consolidation.

InterGroup
Real Estate

During
the three months ended September 30, 2025, the Company did not enter into any new financing arrangements, modifications, or refinancings
related to its real estate properties.

-24-

All
existing loans and mortgage obligations remained in good standing, and there were no material changes to the terms, maturities, or covenants
of any existing debt instruments.

Liquidity
Requirements

The
Company’s short-term liquidity needs include:

●Hotel
                                            operating costs, including payroll, utilities, franchise and management fees,

●Corporate
                                            overhead and