InterGroup Reports Fiscal 2026 Results; Returns to Net Income

The InterGroup Corporation (NASDAQ: INTG) reported financial results for the fiscal year ended June 30, 2026, highlighting a return to GAAP net income after a loss in the prior year. Total revenues for fiscal 2026 were $73.951 million, representing an increase of approximately 15% compared to the $64.378 million reported in fiscal 2025. Income from operations increased by approximately 55% to $11.866 million, and the company achieved GAAP net income of $0.336 million, a significant improvement of $7.883 million over the $7.547 million net loss recorded in fiscal 2025.

InterGroup operates in three reportable segments: Hotel Operations, Real Estate Operations, and Investment Transactions. The Hotel Operations segment generated $55.797 million in revenues, a 20% increase from the prior year, driven by an increase in the average daily rate to $253 and an occupancy rate of 95%. The Real Estate Operations segment recorded revenues of $18.154 million, with segment income rising to $8.853 million. Additionally, the Investment Transactions segment loss improved to approximately $0.213 million from a loss of $2.502 million in fiscal 2025.

During fiscal 2026, InterGroup completed the sale of a non-core 12-unit multifamily property in Los Angeles County for $4.85 million, resulting in a GAAP gain on sale of approximately $3.508 million. The company also reported EBITDA of $22.834 million for fiscal 2026, an increase of approximately 63% from the prior year. As of June 30, 2026, InterGroup held cash and cash equivalents of $6.356 million, restricted cash of $10.943 million, and marketable securities with a fair value of $4.394 million.

Management stated that the company remains cautiously optimistic regarding the recovery of the San Francisco hospitality market and business travel demand. The company’s subsidiary, Portsmouth Square, Inc., is in compliance with all applicable loan covenants and expects to exercise a one-year extension option on its $67.0 million senior mortgage loan and $36.3 million mezzanine loan through April 9, 2028.