The InterGroup (INTG) investor relations material

Executive summary

• Fiscal 2026 saw a return to profitability with net income of $336,000, reversing a net loss of $7.547 million in fiscal 2025, driven by improved hotel operations, a gain on real estate sale, and reduced interest expense.

• Hotel segment benefited from increased business travel and convention demand, higher occupancy, and the addition of 14 guestrooms, boosting revenue and segment income.

• Real estate operations showed stable performance with increased revenues and decreased operating expenses, while investment transactions improved due to a swing from securities losses to gains.

Financial highlights

• Total revenues rose 15% year-over-year to $73.95 million, with hotel revenues up 20% to $55.8 million and real estate revenues slightly higher at $18.15 million.

• Hotel segment income increased to $12.52 million from $8.73 million, and real estate segment income rose to $8.85 million from $8.47 million.

• Net gain on marketable securities was $953,000, compared to a $1.35 million loss in the prior year.

• Gain on sale of a multifamily property was $3.51 million.

• Cash and equivalents plus restricted cash totaled $17.3 million at year-end, up from $15.2 million.

Outlook and guidance

• Management expects to meet liquidity needs for at least 12 months, supported by cash on hand, operating cash flows, and existing financing.

• Hotel and real estate performance, interest rates, and capital requirements remain key variables for future results.

• Portsmouth expects to exercise the first extension option on its senior mortgage and mezzanine loans, with DSCR well above the required threshold.