For the fiscal year ended June 30, 2026, The InterGroup Corporation (INTG Quick QuoteINTG - Free Report) reported net income attributable of 71 cents per share.  

Total revenues increased approximately 15% year over year to $74 million from $64.4 million. Income from operations climbed roughly 55% to $11.9 million from $7.6 million. 

GAAP net income was $0.4 million, reversing a $7.6 million loss in fiscal 2025, while net income attributable to InterGroup improved to $1.6 million from a loss of $5.4 million.

Hotel Operations Drive Fiscal 2026 Improvement

Hotel Operations was the principal growth contributor. Hotel revenues rose approximately 20% to $55.8 million from $46.4 million, while segment income increased 43% to $12.5 million from $8.7 million. Average daily rate improved to $253 from $218, occupancy increased to 95% from 92%, and revenue per available room rose to $239 from $200. Management attributed the improvement to higher room rates, stronger occupancy, better business-travel and convention demand, and increased room availability. 

Real Estate Operations revenues edged up to $18.2 million from $18 million. Operating expenses declined to $9.3 million from $9.6 million, helping segment income increase about 5% to $8.9 million from $8.5 million. Meanwhile, the Investment Transactions segment narrowed its loss to $0.2 million from $2.5 million. The company recorded a $1 million net gain on marketable securities compared with a $1.4 million net loss in fiscal 2025.

EBITDA Rises, Though Operating Cash Flow Declines

EBITDA increased approximately 63% to $22.8 million from $14 million. However, the measure includes securities gains and losses and was not adjusted for the fiscal 2026 real estate-sale gain. 

As of June 30, 2026, cash and cash equivalents were $6.4 million and restricted cash totaled $10.9 million, bringing combined cash, cash equivalents and restricted cash to $17.3 million, up from $15.2 million a year earlier. MIn contrast, net cash provided by operating activities declined to $3.5 million from $5.9 million.

Higher Hotel Costs Partly Offset Revenue Gains

The stronger hotel performance faced some offsets. Hotel operating expenses increased during fiscal 2026, while the prior year benefited from a $1 million Aimbridge incentive management fee waiver that did not recur. At the consolidated level, fiscal 2026 results also benefited from a $3.5 million GAAP gain on the sale of real estate, with no comparable gain recorded in fiscal 2025.

Management Remains Focused on Hospitality Recovery

Management highlighted improved operating performance across the company's businesses while maintaining a measured outlook. Chairman and CEO John V. Winfield said InterGroup remained cautiously optimistic about San Francisco's continued recovery and the environment for business travel, conventions and event-related demand. Management also emphasized liquidity, financial flexibility and disciplined investment activity.

Financing Outlook

Portsmouth Square's $67 million senior mortgage and $36.3 million mezzanine loan mature on April 9, 2027, with three one-year extension options subject to specified conditions. Portsmouth was compliant with applicable loan covenants as of June 30, 2026, and management expects to meet the requirements for the first extension, which would extend the financing through April 9, 2028.

Other Developments

During fiscal 2026, InterGroup sold a non-core 12-unit multifamily property in Los Angeles County for $4.9 million, generating a $3.5 million gain. Separately, 14 former administrative offices at the Hilton San Francisco Financial District were converted into guestrooms, increasing available inventory from 544 to 558 rooms effective Sept. 30, 2025.