InterGroup Corporation completed the sale of a 12‑unit apartment complex in Los Angeles County on December 29 2025 for a gross sales price of approximately $4.85 million. The transaction produced a GAAP net gain of $3.51 million, repaid $1.86 million of debt at closing, and delivered $2.58 million in net cash proceeds to the company’s balance sheet.
The sale is part of InterGroup’s ongoing portfolio‑streamlining strategy, which seeks to concentrate capital on its core real‑estate and hospitality assets. By divesting a non‑core property, the company has increased working capital and positioned itself to pursue growth opportunities in its high‑margin segments. Chief Operating Officer David C. Gonzalez said the transaction “provides additional working capital and allows us to continue prioritizing our core holdings and operating initiatives.”
Prior to the sale, InterGroup reported a net loss of $3.697 million for Q4 2024 and a net loss of $7.5 million for fiscal year 2025. The $2.58 million in cash proceeds represent a significant boost to liquidity, improving the company’s cash‑to‑debt ratio and supporting its return to Nasdaq listing compliance. The gain also raises the company’s market‑cap‑adjusted earnings, which had been constrained by the loss of the property’s carrying value on the books.
InterGroup’s Real Estate Operations segment posted a 31.9% increase in income for FY 2025, while its Hotel Operations segment saw a 51.9% rise. The sale of the Los Angeles complex aligns with the company’s focus on these high‑performing segments, reinforcing the strategic shift toward assets that generate stronger cash flows and higher profitability.
Management highlighted the difference between historical‑cost accounting and realizable values under U.S. GAAP. Chairman and CEO John V. Winfield noted that the gain “reinforces our belief that there may be intrinsic value in our real‑estate portfolio that is not fully reflected in the Company’s GAAP financial statements.” The transaction signals that InterGroup may continue to unlock hidden value in its remaining properties, potentially generating additional gains and further strengthening its balance sheet in the future.
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