Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 53

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 53
---
000  
     463,000  
     317,000  
     317,000  
     315,000  
     - 
  
    Interest 
     40,807,000  
     11,665,000  
     13,418,000  
     2,645,000  
     2,580,000  
     2,436,000  
     8,063,000 
  
    Total 
    $240,546,000  
    $13,461,000  
    $120,544,000  
    $9,550,000  
    $4,742,000  
    $18,783,000  
    $73,466,000 

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. See Note 10 for obligor/recourse details.

OFF-BALANCE
SHEET ARRANGEMENTS

As
of June 30, 2025, the Company has no material off balance sheet arrangements.

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
is minimal expected impact on revenues due to inflation. For the two most recent fiscal years, the impact of inflation on the Company’s
income has not been 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 ESTIMATES

Critical
accounting policies are those that are most significant to the portrayal of our financial position and results of operations and require
judgments by management in order to make estimates about the effect of matters that are inherently uncertain. The preparation of these
financial statements requires us to make estimates and judgments that affect the reported amounts in our consolidated financial statements.
We evaluate our estimates on an on-going basis, including those related to the consolidation of our subsidiaries, revenues, allowance
for