INTERGROUP CORP SEC 10-Q Report

InterGroup Corp, a diversified holding company with interests in real estate and hotel operations, has released its Form 10-Q report for the quarter ending December 31, 2024. The report provides a detailed overview of the company's financial performance and operational highlights, showcasing both improvements and challenges faced during the period.

Financial Highlights

Total Revenues: InterGroup Corp reported total revenues of $14.441 million for the three months ended December 31, 2024, a slight increase from $14.321 million for the same period in 2023. For the six months ended December 31, 2024, total revenues were $31.347 million, up from $29.831 million in the same period in 2023. The increase was primarily driven by improved real estate and hotel operations.

Income (Loss) from Operations: The company reported an income from operations of $853,000 for the three months ended December 31, 2024, compared to a loss of $1.346 million for the same period in 2023. For the six months ended December 31, 2024, income from operations was $3.982 million, a significant improvement from $250,000 in the same period in 2023.

Net Loss: InterGroup Corp reported a net loss of $3.697 million for the three months ended December 31, 2024, compared to a net loss of $2.151 million for the same period in 2023. For the six months ended December 31, 2024, the net loss was $4.549 million, compared to $3.773 million for the same period in 2023. The increased net loss was primarily due to higher interest expenses.

Net Loss Attributable to The InterGroup Corporation: The net loss attributable to The InterGroup Corporation was $2.725 million for the three months ended December 31, 2024, compared to $1.529 million for the same period in 2023. For the six months ended December 31, 2024, the net loss attributable was $3.123 million, compared to $2.773 million for the same period in 2023.

Net Loss Per Share Attributable to The InterGroup Corporation: The net loss per share attributable to The InterGroup Corporation was $(1.26) for the three months ended December 31, 2024, compared to $(0.69) for the same period in 2023. For the six months ended December 31, 2024, the net loss per share was $(1.44), compared to $(1.26) for the same period in 2023.

Business Highlights

Hotel Operations: The Hilton San Francisco Financial District, a 544-room hotel and the primary asset of Portsmouth Square, Inc., a subsidiary of The InterGroup Corporation, experienced a decrease in food and beverage revenue due to fewer self-contained groups utilizing banquet spaces. However, garage revenue increased due to price adjustments.

Real Estate Operations: InterGroup Corp owns and manages sixteen apartment complexes, one commercial real estate property, and three single-family houses, with properties concentrated in Texas and Southern California. Revenue from real estate operations increased due to decreased vacancy rates, particularly at a Missouri property undergoing rebranding and renovation.

Geographical Performance: The company's real estate properties are primarily located in Texas and Southern California, with additional investments in Missouri and Hawaii. The Missouri property is undergoing renovations, contributing to improved occupancy rates.

Future Outlook: InterGroup Corp is actively pursuing long-term refinancing solutions for its senior mortgage and mezzanine loans, with significant progress made towards refinancing existing debt. The company expects to complete refinancing by March 2025, which is crucial for maintaining operational stability.

Operational Challenges: The hotel operations in San Francisco face challenges due to the city's slow recovery from the COVID-19 pandemic, impacting business travel and convention revenues. The company has implemented cost management measures to preserve capital and increase liquidity.

Renovation and Upgrades: Portsmouth has completed major renovations over the past two years, upgrading guest rooms, public spaces, fitness center, corridors, and meeting spaces. The final phase of lobby renovation is expected to be completed by March 2025, along with the return of additional guest rooms to active inventory.

SEC Filing: INTERGROUP CORP [ INTG ] - 10-Q - Feb. 14, 2025