InterGroup posts profit, sells LA multifamily asset

The InterGroup Corporation reported sharply improved quarterly results and completed a non-core property sale.

(Moderate)

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

The InterGroup Corporation reported sharply improved quarterly results and completed a non-core property sale. For the quarter ended December 31, 2025, total revenues rose to $17.3 million from $14.4 million, a 20% increase, driven mainly by hotel revenue growth to $12.6 million from $9.9 million. Income from operations more than doubled to $2.0 million from $0.9 million, and net income reached $1.0 million compared with a net loss of $3.7 million a year earlier. Net income attributable to InterGroup was $1.5 million, or $0.71 per diluted share, versus a loss of $2.7 million, or $1.26 per diluted share. The company recognized a $3.5 million GAAP gain on the sale of a non-core 12-unit Los Angeles multifamily property, which generated approximately $2.58 million in net cash proceeds after repaying an associated $1.83 million mortgage. As of December 31, 2025, total cash, cash equivalents and restricted cash were $15.0 million, and management highlighted ongoing recovery in San Francisco hotel operations and stable real estate performance.

Positive

Return to profitability and stronger operations: InterGroup shifted from a net loss of $3.7 million to net income of $1.0 million, with income from operations more than doubling to $2.0 million and hotel segment income rising materially alongside higher ADR, occupancy, and RevPAR.
Liquidity enhancement through non-core asset sale: The company sold a 12-unit Los Angeles multifamily property for about $4.85 million, repaid $1.83 million of mortgage debt, realized a $3.51 million GAAP gain, and added roughly $2.58 million of net cash, supporting its $15.0 million total cash and restricted cash balance.

Negative

None.

Insights

InterGroup delivered a profitable quarter with stronger hotel results and added liquidity from a non-core asset sale.

InterGroup showed meaningful operating improvement for the quarter ended December 31, 2025. Total revenues increased from $14.4 million to $17.3 million, with hotel revenues rising from $9.9 million to $12.6 million. Income from operations climbed to $2.0 million from $0.9 million, and the company moved from a net loss of $3.7 million to net income of $1.0 million.

Hotel performance at the Hilton San Francisco Financial District improved, with average daily rate rising from $190 to $234, occupancy increasing from 88% to 92%, and RevPAR up from $168 to $215. The return of 14 renovated guest rooms to inventory in September 2025 supported higher room revenue alongside stronger demand.

The sale of a non-core 12-unit Los Angeles multifamily property for approximately $4.85 million generated net cash proceeds of about $2.58 million after repaying an outstanding mortgage of roughly $1.83 million. The transaction produced a GAAP gain of about $3.51 million and contributed to total cash, cash equivalents and restricted cash of $15.0 million as of December 31, 2025. Earlier refinancing at Portsmouth alleviated prior going concern doubts, underscoring improved balance sheet flexibility, while management emphasized cautious optimism about continued recovery in San Francisco operating conditions.

8-K Event Classification

Item 9.01 — Financial Statements and Exhibits

1 item

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did InterGroup (INTG) perform in the quarter ended December 31, 2025?

InterGroup reported significantly improved results, generating $17.3 million in revenue and $1.0 million in net income. This compares with $14.4 million in revenue and a $3.7 million net loss in the prior-year quarter, reflecting stronger hotel performance and a real estate gain.

What were the key drivers of InterGroup’s revenue growth this quarter?

Revenue rose to $17.3 million mainly due to hotel strength, as hotel revenues increased from $9.9 million to $12.6 million. Higher room demand, improved pricing, and the return of 14 renovated guest rooms at the Hilton San Francisco Financial District supported this growth.

What details did InterGroup (INTG) provide about the Los Angeles multifamily property sale?

InterGroup sold a non-core 12-unit Los Angeles County multifamily property for about $4.85 million. It repaid approximately $1.83 million of mortgage debt, received roughly $2.58 million in net cash proceeds, and recorded a GAAP gain on sale of about $3.51 million in the quarter.

How strong were InterGroup’s hotel metrics at the Hilton San Francisco Financial District?

The Hilton San Francisco Financial District showed notable improvement, with ADR rising from $190 to $234 and occupancy increasing from 88% to 92%. RevPAR advanced from $168 to $215, reflecting better pricing and utilization, supported by the return of 14 renovated rooms to inventory.

What is InterGroup’s liquidity position as of December 31, 2025?

As of December 31, 2025, InterGroup held $6.6 million in cash and cash equivalents and $8.4 million in restricted cash, totaling $15.0 million. It also reported $0.9 million of marketable securities measured at fair value, providing additional financial flexibility alongside recent refinancing activity.

How did segment results for InterGroup (INTG) change compared to the prior year quarter?

Hotel operations segment income increased to $2,234,000 from $910,000, while real estate operations were relatively stable at $2,221,000 versus $2,268,000. Investment transactions showed a smaller loss of $340,000 compared with a $901,000 loss, contributing to overall earnings improvement.

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Accepted by SEC EDGAR 02/17/2026 - 04:05 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 17, 2026

THE INTERGROUP CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-10324	13-3293645
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

1516 S. Bundy Drive, Suite 200, Los Angeles, CA		90025
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (310) 889-2500

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		INTG		NASDAQ CAPITAL MARKET

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2)

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.		Description
99.1		Press Release, dated February 17, 2026

104		Cover Page Interactive Data File

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	THE INTERGROUP CORPORATION

Dated: February 17, 2026	By:	/s/ John V. Winfield
		Chairman of the Board; President and Chief Executive Officer

Exhibit 99.1

FOR IMMEDIATE RELEASE

The InterGroup Corporation Reports Improved Operating Results for the Quarter Ended December 31, 2025; Completes Sale of a Non-Core Los Angeles Multifamily Property

Los Angeles, California — February 17, 2026 — The InterGroup Corporation (NASDAQ: INTG) (the “Company” or “InterGroup”) reported results for the quarter ended December 31, 2025 and highlighted continued progress in its consolidated hotel operations and stable performance in its real estate portfolio. During the quarter, the Company also completed the sale of a non-core 12-unit multifamily property in Los Angeles County, strengthening liquidity and providing additional working capital.

Quarterly highlights (three months ended December 31, 2025 vs. 2024)

●	Total revenues increased to $17.3 million from $14.4 million, an increase of $2.9 million (+20%).
●	Hotel revenues increased to $12.6 million from $9.9 million, an increase of $2.7 million (+27%).
●	Real estate revenues increased to $4.6 million from $4.5 million, an increase of $0.2 million (+4%).
●	Income from operations increased to $2.0 million from $0.9 million.
●	Net income was $1.0 million compared to a net loss of $3.7 million.
●	Net income attributable to InterGroup was $1.5 million ($0.71 per diluted share) compared to a net loss attributable to InterGroup of $2.7 million ($1.26 per diluted share).
●	The Company recognized a GAAP gain on sale of real estate of $3.5 million from the disposition of a non-core Los Angeles multifamily property.

Segment Performance (Three Months Ended December 31, 2025 vs. 2024)

Segment income (loss)	2025			2024
Hotel Operations	$	2,234,000		$	910,000
Real Estate Operations	$	2,221,000		$	2,268,000
Investment Transactions	$	(340,000	)	$	(901,000	)

Hotel Operating Metrics (Hilton San Francisco Financial District)

Three months ended Dec. 31	ADR		Occupancy			RevPAR
2025	$	234		92	%	$	215
2024	$	190		88	%	$	168

During the quarter, Portsmouth returned 14 guest rooms to available room inventory upon completion of renovations in September 2025, after having previously used the rooms for administrative office space and other purposes.

Disposition of Non-Core Los Angeles Multifamily Property

In December 2025, InterGroup completed the sale of a non-core 12-unit multifamily property in Los Angeles County for a sales price of approximately $4.85 million. The related mortgage loan with an outstanding principal balance of approximately $1.83 million was repaid in full at closing, and net cash proceeds from the sale after closing costs were approximately $2.58 million. The Company recognized a GAAP gain on sale of approximately $3.51 million in the quarter.

The transaction will be subject to applicable federal and state income tax liabilities.

Liquidity and Capital Resources

As of December 31, 2025, the Company had cash and cash equivalents of $6.6 million and restricted cash of $8.4 million. Total cash, cash equivalents, and restricted cash were $15.0 million. Marketable securities measured at fair value were $0.9 million.

As previously disclosed, Portsmouth completed a refinancing in March 2025 that extended maturities and improved liquidity; as a result, substantial doubt regarding Portsmouth’s ability to continue as a going concern was alleviated as of June 30, 2025.

Management Commentary

David C. Gonzalez, Chief Operating Officer of InterGroup, said:

“Our second fiscal quarter reflected continued progress in both our hotel and real estate operations. At the Hotel, revenue growth benefited from higher room demand and the return of 14 guest rooms to inventory following renovations completed in September 2025. Across our real estate portfolio, we remained focused on disciplined operations, occupancy, and property-level execution. We also completed the sale of a small, non-core property in the normal course of business, adding working capital and sharpening our focus on our core holdings.”

John V. Winfield, President, Chairman and Chief Executive Officer of InterGroup, added:

“We remain cautiously optimistic as operating conditions in San Francisco continue to stabilize and recover. Separately, this quarter’s disposition of a non-core multifamily asset underscores our long-held view that historical-cost accounting under GAAP for real estate can differ significantly from underlying economic value. We also continue to manage our marketable securities activity with a focus on risk awareness and liquidity.”

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, as well as other real estate holdings and an investment portfolio of marketable securities.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements include, without limitation, statements regarding market recovery, anticipated operating performance, liquidity, and the expected impacts of the real estate disposition. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including factors described in the Company’s filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended December 31, 2025 and its most recent Annual Report on Form 10-K. 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

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

4 documents

Press Releases

EX-99.1 EX-99.1 23.3 KB

InterGroup posts profit, sells LA multifamily asset