The InterGroup Corporation Announces Sale of Non-Core 12-Unit Apartment Property; Strengthens Liquidity and Highlights Between Historical-Cost GAAP and Realizable Values

Rhea-AI Summary

InterGroup (NASDAQ: INTG) completed the sale of a non-core 12-unit apartment property in Los Angeles County on Dec 29, 2025 for a gross price of approximately $4,850,000. The company expects to report an estimated GAAP net gain of ~$3,509,000 in its Form 10-Q for the quarter ended Dec 31, 2025. Debt repaid at closing was about $1,859,000, producing estimated net cash proceeds of approximately $2,577,000 after customary adjustments. The company noted the sale highlights differences between historical-cost GAAP carrying values and realizable values and said the transaction strengthens liquidity while creating federal and state tax liability to be determined.

Positive

• Gross sales of approximately $4,850,000
• Net cash proceeds of approximately $2,577,000
• Estimated GAAP net gain of approximately $3,509,000

Negative

• Expected federal and state tax liability; amount not yet determined
• Disposition reduces portfolio by 12 rental units

News Market Reaction

+4.65%

1 alert

+4.65% News Effect

+$3M Valuation Impact

$59M Market Cap

0.3x Rel. Volume

On the day this news was published, INTG gained 4.65%, reflecting a moderate positive market reaction. This price movement added approximately $3M to the company's valuation, bringing the market cap to $59M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Gross sales price: approximately $4,850,000 Debt repaid at closing: approximately $1,859,000 Net cash proceeds: approximately $2,577,000 +2 more

5 metrics

Gross sales price approximately $4,850,000 Sale of non-core 12-unit apartment complex in Los Angeles County

Debt repaid at closing approximately $1,859,000 Debt associated with the sold property repaid at transaction closing

Net cash proceeds approximately $2,577,000 After debt repayment and customary closing adjustments and costs

Estimated GAAP net gain approximately $3,509,000 Expected GAAP net gain on sale to be reported in quarter ended Dec 31, 2025

Units sold 12-unit apartment complex Non-core multifamily property designated as non-core asset

Market Reality Check

Price: $27.21 Vol: Volume 14,244 is roughly ...

normal vol

$27.21 Last Close

Volume Volume 14,244 is roughly in line with the 20-day average of 14,974 (relative volume 0.95x). normal

Technical INTG traded above its 200-day MA of $18.96 at a pre-news price of $26.45, despite being 37.76% below its 52-week high.

Peers on Argus

Pre-news, INTG was down 3.61% while key peers were mixed: SOND -23.96%, UOKA +2....

Pre-news, INTG was down 3.61% while key peers were mixed: SOND -23.96%, UOKA +2.0%, GHG -1.76%, CVEO +0.76%, SHCO flat. This points to stock-specific dynamics rather than a uniform sector move.

Historical Context

3 past events · Latest: Nov 17 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Nov 17	Quarterly results	Positive	+5.6%	Q1 FY2026 results with higher real estate income and strong hotel KPIs.
Oct 09	Annual earnings	Positive	+1.6%	Fiscal 2025 results showing improved liquidity and higher segment income.
Sep 18	Listing compliance	Positive	+1.3%	Regained compliance with Nasdaq continued listing requirements.

Pattern Detected

Recent positive operational and listing-compliance updates were followed by positive 1-day price reactions, suggesting news sensitivity to constructive developments.

Recent Company History

Over the last few months, InterGroup reported improving fundamentals and listing stability. On Sep 18, 2025, it regained compliance with Nasdaq’s market value rule. Fiscal 2025 results on Oct 9, 2025 showed higher hotel and real estate segment income, stronger liquidity, and regained Nasdaq compliance, followed by Q1 FY2026 results on Nov 17, 2025 with higher real estate segment income and robust hotel KPIs. The current non-core asset sale aligns with this focus on liquidity and portfolio optimization.

Market Pulse Summary

This announcement details the sale of a non-core 12-unit property for a gross price of approximately...

Analysis

This announcement details the sale of a non-core 12-unit property for a gross price of approximately $4,850,000, generating net cash proceeds of approximately $2,577,000 and an estimated GAAP gain of approximately $3,509,000. It fits InterGroup’s recent emphasis on liquidity and portfolio management. Investors may monitor how these proceeds affect working capital, debt metrics, and future real estate dispositions relative to carrying values reported under GAAP.

Key Terms

gaap, u.s. gaap, historical-cost accounting, working capital

4 terms

gaap financial

"InterGroup expects to report a GAAP net gain on sale of approximately..."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

u.s. gaap financial

"...in accordance with U.S. GAAP."

U.S. GAAP is a set of rules and standards that companies in the United States follow to prepare their financial reports. It helps ensure that financial information is consistent and clear, so investors and others can compare and understand a company's financial health easily.

historical-cost accounting financial

"historical-cost accounting for real estate under GAAP can differ materially..."

Historical-cost accounting records assets and liabilities at their original purchase price rather than current market value, and adjusts that amount only for systematic allocations like depreciation or impairment. For investors, this matters because a company’s balance sheet can look more or less valuable than the market would judge—like seeing a house listed at what was paid years ago instead of today’s sale price—which affects comparisons, risk assessment, and valuation decisions.

working capital financial

"The transaction provides additional working capital and allows us to continue..."

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

AI-generated analysis. Not financial advice.

Los Angeles, California, Jan. 06, 2026 (GLOBE NEWSWIRE) -- The InterGroup Corporation (NASDAQ: INTG) (the “Company” or “InterGroup”) announced today that on December 29, 2025, it completed the sale of a non-core 12-unit apartment complex in Los Angeles County for a gross sales price of approximately $4,850,000.

InterGroup expects to report a GAAP net gain on sale of approximately $3,509,000, which will be reflected in the Company’s Form 10‑Q for the quarter ended December 31, 2025. The transaction is expected to result in federal and state income tax liability, the amount of which will be determined based on the Company’s final tax position and applicable tax rules.

Transaction highlights

• Gross sales price: approximately $4,850,000
• Debt repaid at closing: approximately $1,859,000
• Net cash proceeds: approximately $2,577,000 (after repayment of debt and customary closing adjustments and transaction costs)
• Estimated GAAP net gain on sale: approximately $3,509,000
  
  

Additional clarification: Net cash proceeds reflect debt repayment and customary settlement items at closing, while the GAAP gain is calculated based on the net consideration received less the property’s carrying value and applicable costs to sell, in accordance with U.S. GAAP.

Management commentary

David C. Gonzalez, Chief Operating Officer of InterGroup, said:
“Selling this small, non-core asset in the normal course of business is consistent with our approach of actively managing the portfolio and enhancing liquidity. The transaction provides additional working capital and allows us to continue prioritizing our core holdings and operating initiatives.”

John V. Winfield, Chairman and Chief Executive Officer of InterGroup, added:
“This transaction reinforces management’s long-held view that historical-cost accounting for real estate under GAAP can differ materially from realizable values. The gain realized on this sale is one example of that potential difference and supports our belief that there may be intrinsic value in our real estate portfolio that is not fully reflected in the Company’s GAAP financial statements.”

About The InterGroup Corporation

The InterGroup Corporation (NASDAQ: INTG) is a diversified holding company with interests in hospitality, real estate, and marketable securities. InterGroup’s portfolio includes a majority interest in Portsmouth Square, Inc., which owns the Hilton San Francisco Financial District.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding the expected GAAP gain on sale, anticipated benefits of the transaction, and expected tax impacts. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including final accounting conclusions and tax determinations, and other factors described in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent periodic reports. The Company undertakes no obligation to update forward-looking statements except as required by law.

Investor Contact

The InterGroup Corporation
1516 S. Bundy Drive, Suite 200
Los Angeles, CA 90025
(310) 889-2500

FAQ

What did InterGroup (INTG) sell on Dec 29, 2025?

InterGroup sold a non-core 12-unit apartment property in Los Angeles County for about $4,850,000.

How much net cash did INTG receive from the December 2025 sale?

INTG received approximately $2,577,000 in net cash proceeds after debt repayment and adjustments.

What GAAP gain will INTG report from the property sale in the Dec 31, 2025 Form 10-Q?

The company expects to report an estimated GAAP net gain of ~$3,509,000 in the quarter-ended Form 10-Q.

How much debt was repaid at closing for the INTG property sale?

Approximately $1,859,000 of debt was repaid at closing.

Will the INTG sale affect the company’s tax bill for 2025?

Yes. The transaction is expected to result in federal and state income tax liability; the exact amount will be determined later.

Why did InterGroup sell the 12-unit property, according to management?

Management said the sale was to actively manage the portfolio, enhance liquidity, and prioritize core holdings and operations.