The InterGroup (INTG) investor relations material

Executive summary

• Net income of $595,000 for the quarter ended March 31, 2026, reversing a prior-year net loss of $750,000, driven by improved hotel performance and lower investment losses.

• Net income attributable to shareholders was $457,000 for the quarter and $1,437,000 for the nine months, reversing prior-year losses.

• Third quarter fiscal 2026 revenues rose 21% year-over-year to $20.372 million, with operating income up 81% to $4.260 million.

• Hotel operations benefited from higher room revenues, increased occupancy, and ADR, aided by the return of renovated rooms and strong business travel demand.

• Real estate operations saw stable occupancy and rental rates, with a gain on sale of a non-core property boosting results.

Financial highlights

• Total revenues for the quarter were $20,372,000, up from $16,824,000 year-over-year; nine-month revenues were $55,586,000, up from $48,171,000.

• Quarterly income from operations rose to $4,260,000 from $2,350,000; nine-month income from operations was $9,007,000, up from $6,332,000.

• Hotel revenues for the quarter rose 35% year-over-year to $16,497,000, exceeding pre-pandemic Q3 2019 levels by $1,028,000.

• Real estate revenues declined 16% in the quarter to $3,875,000; year-to-date real estate revenues were down 1%.

• Gain on sale of real estate of $3,508,000 recognized in the nine months ended March 31, 2026.

Outlook and guidance

• Liquidity remains stable following the March 2025 refinancing of hotel debt; all debt obligations are current and in compliance.

• Management remains cautiously optimistic about San Francisco's recovery, citing improving business travel and event-related demand.

• Focus remains on disciplined operations, property-level execution, and liquidity management.

• Management continues to monitor San Francisco hospitality market recovery, with ongoing capital preservation and cost control initiatives.

• No material impact expected from recently issued accounting pronouncements.