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 expect ...

Core Viewpoint - Integral Metals Corp. has successfully confirmed high-grade zinc mineralization with associated gallium and germanium at the KAP Project, expanding the known mineralization footprint and validating historical data [1][5][17]. Program Summary - The 2025 drill program included seven diamond drill holes totaling 843 meters, targeting the Central Zone and North Zone of the Main Showing to verify historical zinc intercepts and evaluate the distribution of gallium and germanium [4][5]. - The program confirmed high-grade mineralization and expanded the mineralization corridor in the North Zone, supporting a hybrid MVT and Carbonate Replace Deposit model [5][17]. Drill Hole Results - **KAP-25-001A**: Intersected 2.00 m averaging 29.58% Zn, 245 ppm Ga, and 397 ppm Ge, confirming near-surface mineralization [6]. - **KAP-25-001B**: Intersected 5.60 m averaging 17.72% Zn, including a high-grade core of 28.26% Zn over 3.45 m [7]. - **KAP-25-002**: Returned 5.00 m averaging 14.27% Zn, with notable intervals showing higher grades [9]. - **KAP-25-005**: Validated historical step-out with 9.40 m averaging 4.57% Zn in the North Zone [11]. - **KAP-25-006**: Confirmed broad zones of mineralization with 16.15 m averaging 8.28% Zn, indicating significant expansion potential [15][16]. Next Steps - The company plans to model the results to further understand the subsurface context of the mineralization and may submit select samples for mineralogical analysis [17].

Core Viewpoint - Zacks Investment Research has initiated coverage of The InterGroup Corporation (INTG) with an Underperform recommendation due to concerns over the company's ability to generate sustainable shareholder value amid ongoing financial and operational challenges [1] Financial Challenges - InterGroup faces a significant shareholders' deficit of $115.5 million and a heavily leveraged balance sheet, with liabilities exceeding total assets by more than double, constraining financial flexibility [2] - Recent refinancing efforts have extended loan maturities and reduced interest costs, but the company remains vulnerable to liquidity shortfalls due to limited internal cash generation [2] Operational Performance - The Hilton San Francisco Financial District, InterGroup's core asset, is experiencing operational pressure in a sluggish hospitality market, despite outperforming competitors in RevPAR and achieving a 96.7% score on Hilton's quality inspection [3] - Revenue growth is hindered by rising labor costs and reduced one-time fee waivers, leading to continued quarterly losses [3] Market Conditions - Broader issues in San Francisco, such as slow business travel recovery and safety concerns, are negatively impacting investor sentiment and pricing leverage for the property [4] - The hotel's significant contribution to InterGroup's revenues introduces concentration risk [4] Legal and Contingent Liabilities - An unresolved legal dispute involving Portsmouth, a majority-owned subsidiary, and the City of San Francisco may require substantial capital outlay by mid-2026, adding to the company's liquidity constraints [5] Liquidity Improvements - Recent refinancing initiatives have improved InterGroup's liquidity profile, restructuring $103 million in loans and extending maturities into 2027, providing temporary relief for operations [6] Real Estate Segment Performance - The real estate segment, particularly multifamily and commercial properties in Texas and Southern California, is generating steady cash flow with improved operating margins, contributing $3.2 million in quarterly income [7] Market Sentiment and Valuation - InterGroup's share price has risen recently, indicating renewed investor interest, but valuation appears stretched given the company's financial profile and limited earnings visibility [8] - The disconnect between market enthusiasm and fundamentals raises concerns about the sustainability of recent gains [8] Overall Risks - High financial leverage, ongoing operating losses, and reliance on a single hotel asset continue to pose significant risks for InterGroup [9]

Core Insights - The InterGroup Corporation reported financial results for the three months ending September 30, 2025, indicating improved performance and alleviation of prior going-concern doubts for its subsidiary Portsmouth Square, Inc. following hotel refinancing [1] Financial Performance - Real estate revenues increased to $5,495,000, up 8.0% year-over-year from $5,086,000, with segment income from operations rising 20.1% to $3,157,000 from $2,629,000 [5] - Total hotel revenues reached $12,418,000, reflecting a 5.1% increase from $11,820,000, while operating expenses (excluding depreciation and amortization) rose 19.2% to $10,481,000 from $8,792,000 [7] - The company reported a GAAP net loss of $1,159,000, compared to a loss of $852,000 in the previous year, with a net loss attributable to InterGroup of $535,000, up from $398,000 [7][9] Key Performance Indicators - Hotel key performance indicators showed an average daily rate (ADR) of $218, a 3.8% increase year-over-year, with occupancy at 95%, down 1 percentage point, and revenue per available room (RevPAR) at $207, up 2.5% [7][11] - Marketable securities yielded a modest net gain of approximately $0.1 million, consistent with the company's focus on liquidity and disciplined risk management [6][8] Management Commentary - The CEO noted signs of stabilization and recovery in the San Francisco hospitality market, with improving convention calendars and tourism indicators [8] - The COO emphasized operational stability across the portfolio, focusing on leasing, recoveries, and expense control to support cash generation [8]

Financial Performance - As of September 30, 2025, the Company reported a net loss of $535,000, an increase from a net loss of $398,000 in the same period of 2024[114] - Hotel revenues for the three months ended September 30, 2025, were $12,418,000, up 5.1% from $11,820,000 in 2024, with an operating income of $1,937,000 before interest, depreciation, and amortization[116] - Revenue from real estate operations rose to $5,495,000 in Q3 2025, compared to $5,086,000 in Q3 2024, driven by stronger multifamily occupancy[119] Operational Metrics - The average daily room rate increased to $218 in Q3 2025 from $210 in Q3 2024, while occupancy decreased to 95% from 96%[118] - The Company recorded a net gain on marketable securities of $136,000 for Q3 2025, compared to a net gain of $129,000 in Q3 2024[120] Cash and Securities - The Company had cash and cash equivalents of $5,054,000 as of September 30, 2025, slightly down from $5,092,000 at June 30, 2025[124] - Marketable securities totaled $966,000 as of September 30, 2025, compared to $969,000 at June 30, 2025[124] Debt and Interest Expenses - Total mortgage and subordinated notes payable amounts to $197,458,000 for the current year, with projections of $930,000 in 2027 and $106,663,000 in 2028[139] - Interest expenses for the current year are reported at $38,526,000, with a forecast of $8,711,000 in 2027 and $14,091,000 in 2028[139] Strategic Initiatives - The Company is actively marketing a non-core 12-unit multifamily property in Los Angeles, which could provide additional liquidity upon sale[127] - The Company continues to evaluate strategic alternatives in response to challenges in the San Francisco hospitality sector[134] Tax and Impairment Considerations - The company assesses the realizability of deferred tax assets each reporting period, with a valuation allowance recorded when it is more-likely-than-not that some or all DTAs will not be realized[144] - Cumulative pre-tax losses over the preceding three years are considered significant negative evidence for the realizability of deferred tax assets[145] - There were no indicators of impairment for hotel investments or definite-lived intangible assets for the three months ended September 30, 2025[148] - The company has not recorded any impairment losses for the three months ended September 30, 2025, and 2024, respectively[148] Compensation and Reporting - Stock-based compensation is measured based on estimated grant date fair values, using the Black Scholes option pricing model for employee stock options[149] - Management views the impact of inflation on the company's income as not material for the last two fiscal years, as hotel room rates can be adjusted accordingly[140] - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[150]

Core Points - Integral Metals Corp. has increased its non-brokered flow-through private placement offering from gross proceeds of up to C$1,000,000 to C$1,500,000 [1] - Each flow-through unit is priced at C$0.95 and consists of one flow-through common share and one common share purchase warrant, with the warrant allowing the purchase of a common share at C$1.00 for 24 months [1] - The proceeds from the sale of the flow-through shares are intended for Canadian exploration expenses, which will be renounced to the initial purchasers [2] - The offering is subject to a statutory hold period of four months and one day and is expected to close around November 15, 2025, pending regulatory approvals [3] Company Overview - Integral Metals Corp. is engaged in mineral exploration for critical minerals such as gallium, germanium, and rare earth elements, aiming to develop a domestic supply chain for these minerals [5] - The company holds properties in mining-friendly jurisdictions in Canada and the USA, including the Northwest Territories, Manitoba, and Montana, where it has received regulatory support for exploration efforts [5]

Company Overview - InterGroup (INTG) is a small-cap hotel operator and real estate owner, currently ranked 68th in the Top 100 Stocks to Buy, despite moving down 28 spots [2] - The company has a market cap of $83 million and is the successor to the Mutual Real Estate Investment Trust, a REIT that went public nearly 60 years ago [3] Financial Performance - For the 12 months ended June 30, 2025, InterGroup reported revenues of $46.4 million, which is a 10.7% increase from $41.9 million the previous year [7] - Operating profit rose by 51.9% to $8.7 million from $5.7 million in 2024 [7] - The average occupancy rate in fiscal 2025 was 92%, a 10 percentage point increase compared to fiscal 2024 [7] - Revenue per available room (RevPAR) was $200, reflecting a 13% increase from the previous year [7] Asset Composition - The company holds a 75.9% controlling interest in Portsmouth Square (PRSI), which owns and operates the Hilton San Francisco Financial District hotel and a five-level underground parking garage [5] - Portsmouth Square was established in July 1967 to acquire the hotel, which has undergone various management changes and renovations since its inception [6] Market Sentiment - The Barchart Technical Opinion rates InterGroup as a Strong Buy, indicating a 100% likelihood of continued upward movement in the near term [3] - Despite the positive momentum, there are underlying factors that have limited the company's growth potential [3][4]

Core Insights - The InterGroup Corporation reported improved financial results for the fiscal year ended June 30, 2025, with significant gains in hotel and real estate segment income, increased liquidity, and alleviation of going-concern uncertainty at Portsmouth Square, Inc. [1][5] FY2025 Highlights - Consolidated EBITDA increased by 131.7% year over year to $13.2 million, driven by stronger hotel performance and higher real estate segment income [5][7] - The company achieved a net loss of $7.5 million, a 39.9% decrease from the previous year's loss of $12.6 million [6] - The hotel operations segment income rose by 51.9% to $8.7 million, while real estate operations segment income increased by 31.9% to $8.5 million [6] Operating Detail - Hotel occupancy reached 92%, up from 82% in FY2024, with an average daily rate (ADR) of $218 and revenue per available room (RevPAR) of $200, reflecting a 13.0% increase [6] - The comprehensive renovation of the hotel was completed in June 2024, contributing to full room availability throughout FY2025 [6] - Liquidity improved significantly, with cash and equivalents at $15.2 million, a 74.8% increase from $8.7 million in FY2024 [6] Segment Performance - Hotel Operations: Segment income of $8.7 million, with revenues of $46.4 million and operating expenses of $37.6 million [6] - Real Estate Operations: Segment income of $8.5 million, focusing on property operations and capital expenditures to support long-term value [6] - Investing Transactions: Segment loss of $2.5 million, reflecting market volatility and portfolio concentration [6] Additional Notes - The company regained compliance with Nasdaq listing requirements [6] - Portsmouth Square, Inc. alleviated going-concern uncertainty following refinancing and improved operations [6]

Ownership and Structure - As of June 30, 2025, InterGroup owns approximately 75.9% of the outstanding common shares of Portsmouth[23] - The concentrated ownership by the CEO, holding 70.1% of shares, limits other shareholders' influence on corporate affairs[97] - The Company owns approximately 75.9% of the common shares of Portsmouth Square, Inc., which operates the Hilton San Francisco Financial District[174] Financial Performance - For the fiscal year ended June 30, 2025, the Company reported a net loss of $7,547,000, an improvement from a net loss of $12,556,000 for the previous year[178] - Income from operations increased to $7,643,000 in fiscal 2025, up from $1,454,000 in fiscal 2024[178] - Hotel revenues for the year ended June 30, 2025, totaled $46,363,000, compared to $41,886,000 in fiscal 2024, reflecting an increase in hotel room revenues[181] - The Company experienced a loss of $4,166,000 from hotel operations in fiscal 2025, reduced from a loss of $7,154,000 in fiscal 2024[179] - The Company's revenues increased by 10% year over year, with an average daily rate increase of $1, average occupancy up by 10%, and RevPAR rising by $23 for the twelve months ended June 30, 2025, compared to the previous year[185] - Real estate operations revenues rose to $18,015,000 in fiscal 2025 from $16,254,000 in fiscal 2024, driven by higher occupancy and increased rental rates[186] Debt and Financing - The Company has substantial debt obligations, which may limit operational flexibility and increase vulnerability to economic downturns[74] - The Company secured a modified Mezzanine Loan Agreement for $36,300,000 at a fixed rate of 7.25% per annum, with matching maturity and extension terms to the senior loan[117] - The Company had an outstanding balance of $38,108,000 on its related-party revolving credit facility as of June 30, 2025, with no principal repayments made[202] - The related-party revolving credit facility with InterGroup was amended to increase capacity to $40 million and reduce the interest rate to 9%[218] - Portsmouth's refinancing on March 28, 2025, improved its maturity profile and liquidity, remaining current on required debt service[218] Operational Performance - The Hotel's operation has been seasonal, generally maintaining high occupancy and room rates throughout the year except for the holiday season[46] - The Hotel achieved a RevPAR of $214.66, significantly higher than the CompSet's RevPAR of $172.84, marking a 23% increase since the renovation completed in June 2024, while the CompSet experienced an 8.3% decline[49] - The average occupancy percentage for the year ended June 30, 2025, was 92%, compared to 82% for the year ended June 30, 2024[184] - The Hotel has completed a full guest room renovation over the last two years, expecting to drive rate and grow RevPar[47] - The Hotel received a Quality Assurance inspection score of 96.7%, the highest in at least a decade, earning an "Outstanding" ranking from Hilton[48] Risks and Challenges - The Company faces significant operating risks, including competition, inflationary pressures, and potential economic downturns that could adversely affect performance[57] - The Hotel's reliance on the San Francisco market exposes it to risks from local economic trends and public health events, which could materially impact consolidated results[66] - Future changes in environmental laws or undiscovered contamination could result in significant costs or liabilities for the Company[55] - Cybersecurity risks could disrupt operations and adversely affect the company's financial condition and reputation[94] - Ongoing litigation and legal proceedings could expose the company to significant liabilities, negatively impacting financial results[81] Expenses and Costs - Total operating expenses increased by $1,492,000 due to higher union salaries, marketing fees, credit card fees, and commissions[182] - The Company recorded a reduction in Hotel operating expenses of $1,030,134 for the year ended June 30, 2025, due to waived incentive fees[33] - Insurance premiums have significantly increased, impacting operating expenses and potentially affecting financial condition if adequate coverage is not obtained[77] - Future increases in real estate taxes, utility costs, and operating expenses could adversely affect cash flow and financial performance[78] - The company faces high fixed costs, including property taxes and insurance, which may not be adjusted timely in response to revenue reductions[76] Liquidity and Cash Management - As of June 30, 2025, the Company had total cash, cash equivalents, and restricted cash of $15,195,000, up from $8,694,000 as of June 30, 2024[194] - The company expects existing liquidity sources to meet parent-level cash requirements for at least the next 12 months[211] - Management believes current liquidity sources will support near-term working capital needs despite potential pressures on hotel performance indicators[212] - The company has taken proactive steps to stabilize its liquidity profile amid uncertainties in interest rates and operating costs[212] - Cash management agreements restrict upstream distributions from the Hotel until certain conditions are met[209] Strategic Initiatives - The Company initiated a plan to dispose of a non-core 12-unit multifamily property in Los Angeles, which is expected to provide additional liquidity[197] - The company continues to evaluate strategic alternatives in response to challenges in the San Francisco hospitality sector[215] - The Company plans to fund obligations primarily from real estate operating cash flows and property-level refinancings[213] Market and Investment - The Company may derive income from investments in income-producing instruments, corporate debt, and equity securities[39] - The investment portfolio as of June 30, 2025, was concentrated, with one investment (American Realty Investors, Inc.) accounting for approximately 99% of the total equity value[191] - The Company reported a net loss on marketable securities of $1,347,000 for the year ended June 30, 2025, compared to a net loss of $485,000 in the prior year[187] - The Company may utilize margin for its marketable securities purchases, with margin balances of $0 for both June 30, 2025 and 2024[43] - Nonmarketable securities may require longer holding periods and could result in substantial losses if cash is needed on short notice[80] Regulatory and Compliance - The hotel industry is heavily regulated, and failure to comply with regulations could adversely affect operations and financial performance[88] - The Company regained compliance with Nasdaq Listing Rule 5550(b)(2) by demonstrating a market value of listed securities above $35 million for 11 consecutive business days[164] - The Company's financial statements do not reflect market values of real estate, potentially leading to discrepancies in reported asset values[98]

Core Points - The InterGroup Corporation has regained compliance with Nasdaq Listing Rule 5550(b)(2), confirming its market value of listed securities is above $35 million [1][2][3] - Nasdaq notified the Company in November 2024 regarding non-compliance, but as of September 15, 2025, the Company demonstrated compliance for 11 consecutive business days [2] - The Company's common stock will continue to be listed on The Nasdaq Capital Market under the ticker symbol "INTG" [3] Company Overview - The InterGroup Corporation is a Delaware corporation established in 1985, focusing on real estate investment, including ownership and operation of apartment buildings, a hotel, and other income-producing properties, as well as securities and other investments [4]