InterGroup reported its first‑quarter 2026 financial results for the three months ended September 30, 2025, showing a mixed picture. Revenue rose 5.96% to $17.913 million, driven largely by an 8.0% increase in the real‑estate segment to $5.495 million. The real‑estate segment also saw a 20.1% jump in income to $3.157 million, reflecting higher rental income and improved operating leverage.
Despite the real‑estate gains, the company’s consolidated net loss widened to $1.159 million from $852 k in the same quarter last year, and EBITDA fell 9.7% YoY. The hotel segment, which generated $12.418 million in revenue, suffered a 36.0% decline in OIBDA and a 51.2% increase in GAAP net loss, largely due to a 19.2% rise in operating expenses. Management attributed the expense increase to higher labor costs and capital expenditures aimed at modernizing the Hilton San Francisco Financial District Hotel.
A modest net gain of $136 k on marketable securities, compared with $129 k in Q1 FY2025, underscored InterGroup’s disciplined liquidity strategy amid a volatile securities market. The company also confirmed that the going‑concern flag on its majority‑owned subsidiary Portsmouth Square, Inc. was lifted as of June 30, 2025, following the successful refinancing of the hotel’s debt.
CEO John V. Winfield highlighted that the real‑estate segment’s performance is a key driver of the company’s income growth, while acknowledging the hotel segment’s profitability challenges. He noted that the company remains focused on cost discipline and strategic investments in high‑return properties, signaling confidence in maintaining profitability despite short‑term headwinds.
Overall, InterGroup’s Q1 FY2026 results illustrate a strong real‑estate portfolio that offsets declining hotel profitability, while the company’s liquidity position remains robust. The mixed performance underscores the need for continued operational improvements in the hotel segment to sustain long‑term earnings growth.
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