Portsmouth Square, Inc. ("Portsmouth") reported its financial results for the fiscal year ended June 30, 2026, in a Form 8-K filed on September 29, 2026. The company operates in two reportable segments: Hotel Operations, which includes the Hilton San Francisco Financial District hotel and its parking garage, and Investment Transactions, which involves cash invested in marketable securities.
For the fiscal year 2026, the company reported total hotel revenues of $55.797 million, representing an increase of approximately 20% compared to the $46.363 million reported in fiscal 2025. The Hotel Operations segment income increased by approximately 43% to $12.524 million from $8.732 million in the prior year. Key performance metrics for the hotel improved, with the Average Daily Rate (ADR) rising to $253 from $218, and occupancy increasing to 95% from 92%. The Revenue Per Available Room (RevPAR) increased by 20% to $239 from $200.
Overall, the company's income from operations more than doubled to $7.789 million in fiscal 2026 from $3.871 million in fiscal 2025. The GAAP net loss narrowed by approximately $3.696 million, decreasing from a loss of $9.110 million in fiscal 2025 to a loss of $5.414 million in fiscal 2026. The Investment Transactions segment also improved, recording a loss of approximately $79,000 in fiscal 2026 compared to a loss of approximately $146,000 in fiscal 2025.
Regarding liquidity and capital resources, as of June 30, 2026, the company held approximately $4.982 million in cash and cash equivalents, $8.440 million in restricted cash, and $13.422 million in total cash. Net cash provided by operating activities was approximately $3.899 million in fiscal 2026, compared to net cash used in operating activities of approximately $2.148 million in fiscal 2025. The company has a $67.0 million senior mortgage loan and a $36.3 million mezzanine loan maturing on April 9, 2027, with the option to extend for one year. Management expects to exercise the first extension option through April 9, 2028, subject to specific conditions, including a Debt Service Coverage Ratio of at least 1.10:1.00. As of June 30, 2026, the company reported a calculated DSCR of approximately 1.45:1.00 and was in compliance with all applicable loan covenants.
