Zacks Investment Research has recently initiated coverage of The InterGroup Corporation (INTG) with an Underperform recommendation, reflecting the firm’s cautious stance on the company’s ability to generate sustainable shareholder value amid persistent financial and operational headwinds. Despite a recent rally in share price, InterGroup’s underlying fundamentals reveal material challenges that limit earnings visibility and raise concerns about long-term viability.InterGroup’s most pressing challenge is its ...

Core Viewpoint - Portsmouth Square, Inc. has reported improved financial performance for the fiscal year ended June 30, 2025, alleviating previous concerns about its ability to continue as a going concern due to successful hotel refinancing and enhanced operating results [1][6]. Financial Performance - Hotel revenue increased to $46,363,000, a 10.7% rise compared to $41,886,000 in FY2024 [6]. - Hotel operating expenses rose to $37,631,000, reflecting a 4.1% increase from $36,139,000 [6]. - The company reported a net loss of $9,110,000, an improvement of 19.9% from a loss of $11,375,000 in the previous year [6]. - Adjusted EBITDA reached $7,259,000, a significant increase of 128.5% year-over-year [5][6]. Operational Metrics - Average occupancy rate improved to 92%, up 10 percentage points (12.2%) from 82% [6]. - Average Daily Rate (ADR) was $218, a slight increase of 0.5% from $217 [6]. - Revenue per Available Room (RevPAR) increased to $200, marking a 13.0% rise from $177 [6]. Renovation and Upgrades - The hotel completed a comprehensive renovation in June 2024, which contributed to full room availability throughout FY2025, positively impacting performance [6]. - Hotel capital improvements decreased to $2,252,000 from $4,078,000 in FY2024, reflecting a 44.8% reduction [6]. Liquidity and Market Position - Cash and equivalents as of June 30, 2025, were $11,722,000, a 145.5% increase from $4,775,000 [6]. - The company emphasized liquidity in its operations and maintained a modest activity level in marketable securities [4]. Management Commentary - The President highlighted the successful execution of hotel operations and the importance of guest experience in driving performance [4]. - The CEO expressed optimism regarding the recovery in San Francisco and the company's competitive positioning as business travel normalizes [4]. Company Overview - Portsmouth Square, Inc. owns the Hilton San Francisco Financial District, a 544-room full-service hotel, and operates under a franchise license with Hilton through 2030 [9].