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Intergroup (INTG) is like a smaller, publicly traded Berkshire Hathaway, focused on owning and operating businesses in real estate, healthcare, and other services.

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The Intergroup Corporation (INTG) provides the following major services:

• Real Estate Investment: Acquiring and holding interests in income-producing commercial and residential properties.
• Real Estate Development: Engaging in the construction and renovation of various types of properties.
• Property Management: Overseeing the operations, leasing, and maintenance of its owned real estate portfolio.

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Intergroup (INTG) is a diversified operating company with activities in the health care, real estate, and financial services industries. Based on its public filings, the company's primary revenue streams are derived from rents generated by its real estate properties and dividend/interest income from its financial services segment.

The company sells primarily to other companies through its real estate operations, rather than directly to individuals. However, specific names of these customer companies are not publicly disclosed in their SEC filings (such as 10-K reports). This is common for diversified real estate holding companies unless a single tenant accounts for a material portion of overall revenue, which is not the case for Intergroup based on available information.

Based on the nature of their real estate holdings, Intergroup's major customers for its rental income are primarily:

• Medical practices and healthcare providers: These entities lease space in Intergroup's medical office buildings. This category includes individual doctors' offices, specialized clinics, and other health-related service providers. These are typically private companies or professional corporations.
• Various commercial businesses: These tenants occupy Intergroup's other commercial properties. This category can encompass a wide range of businesses, such as general office tenants, retail establishments, or service-oriented companies from diverse industries. These are also typically private companies.

It is important to note that while Intergroup earns dividend and interest income from its investments in other public and private companies, these companies are not considered "customers" in the context of sales or services provided by Intergroup, but rather entities in which Intergroup holds an investment.

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John V. Winfield Chairman, President, and Chief Executive Officer Mr. John V. Winfield has served as the Chairman, President, and Chief Executive Officer of The InterGroup Corporation since 1987, and was first appointed to the Board in 1982. He also holds the positions of Chairman, President, and Chief Executive Officer of the company's subsidiaries, Santa Fe Financial Corporation and Portsmouth Square, Inc., both of which are public companies. Mr. Winfield's prior experience includes serving as a Managing Director for Justice Investors, a California LP. He also served as Chairman of Comstock Mining, Inc., a public company, from June 2011 to September 2015. Additionally, he was the Chief Executive Officer of Intergroup Woodland Village, Inc., which owns and operates a multi-family apartment complex. His background also includes serving on the board of Healthy Planet Products, Inc. Mr. Winfield is noted for his extensive experience as an entrepreneur and investor, as well as his managerial and leadership experience from serving as a chief executive officer and director of public companies. He directly owns a significant portion of InterGroup's shares.

Ann Marie Blair Principal Financial Officer, Treasurer and Controller Ann Marie Blair is the Principal Financial Officer, Treasurer, and Controller of The InterGroup Corporation. She also serves as the Controller and Treasurer for Portsmouth Square, Inc., a subsidiary of InterGroup. No further specific background information regarding her founding or managing other companies, selling companies, or involvement with private equity firms is readily available in the provided search results.

David C. Gonzalez Chief Operating Officer and Vice President Real Estate David C. Gonzalez serves as the Chief Operating Officer and Vice President Real Estate for The InterGroup Corporation. He is also the President of Portsmouth Square, Inc., a subsidiary of InterGroup.

Jolie G. Kahn Secretary Jolie G. Kahn is the Secretary of The InterGroup Corporation. She is also an attorney and a CPA.

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1. Negative Shareholders' Equity: A significant risk for Intergroup is its negative shareholders' equity, which indicates that the company's liabilities exceed its assets. This financial position is considered a serious situation and can be a red flag for the company's long-term financial health and solvency.

2. Declining Long-Term Earnings: The company has experienced a substantial decline in earnings, with a reported decrease of 46.4% per year over the past five years. Although Intergroup reported an improved net loss in its fiscal year 2025 results, the long-term trend of declining profitability remains a key concern.

3. Share Price Volatility and Revenue Instability: Intergroup's share price has demonstrated volatility over recent months. Furthermore, there is an indication of potential revenue instability, with some market participants anticipating challenges that could prevent the company's price-to-sales ratio from aligning with its performance.

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The structural shift towards remote and hybrid work models continues to pose an emerging threat to Intergroup's commercial real estate holdings, as decreased demand for traditional office spaces can lead to increased vacancies and downward pressure on property values and rental income. This parallels the disruptive impact seen in other industries where fundamental usage patterns changed.

Additionally, the escalating impacts of climate change, particularly in regions where Intergroup holds significant real estate assets (such as California), present a clear emerging threat through increased risks of natural disasters (e.g., wildfires, extreme weather), higher insurance costs, and potential long-term devaluation of vulnerable properties.

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Hotel Operations

InterGroup Corporation operates a hotel, the Hilton San Francisco Financial District, in San Francisco, California. The U.S. hotels market size was estimated at USD 263.21 billion in 2024 and is projected to grow to USD 280.63 billion in 2025. Another estimate for the Hotels & Motels market in the U.S. indicates a size of $285.1 billion in 2024 and $286.5 billion in 2025. The broader U.S. hotels, resorts, and cruise lines market was estimated at USD 345.96 billion in 2024 and is expected to reach USD 407.40 billion in 2025. Hotels alone dominated this market with a 77.33% share in 2024. The U.S. luxury hotel market, which includes high-end establishments like the Hilton, was valued at USD 27.1 billion in 2024 and is estimated to reach USD 43.9 billion by 2033. For the specific region of operation, San Francisco's hotel market is showing signs of recovery, with hotel occupancy projected to hit 64.4% in 2025 and Revenue Per Available Room (RevPAR) expected to reach $150, an increase of 4.8% from the previous year.

Real Estate Operations

The company owns and operates a portfolio of multifamily and commercial real estate properties across the United States, concentrated in Texas and Southern California, and also includes unimproved land in Maui, Hawaii. The U.S. multifamily market size was valued at USD 265 billion in 2022 and is projected to reach USD 466 billion by 2030, growing at a CAGR of 7.31% from 2023 to 2030. Sales volume for U.S. multifamily properties totaled $157.7 billion over the last 12 months, on track for the highest annual total since 2022. The U.S. commercial real estate market size is valued at USD 1.70 trillion in 2025 and is forecast to reach USD 1.94 trillion by 2030.

Investment Transactions

InterGroup Corporation's investment activities involve income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, and real estate investment trusts (REITs). The global real estate investment market was valued at USD 8,537.74 billion in 2022 and is anticipated to reach USD 17,223.67 billion by 2032, at a CAGR of 7.27% from 2023 to 2032. Another estimate places the global real estate investment market value at USD 9,158.04 billion in 2023, with a projection to reach USD 18,611.46 billion by 2033. North America is expected to hold the largest share of the real estate investment market.

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Here are 3-5 expected drivers of future revenue growth for Intergroup (INTG) over the next 2-3 years:

1. Continued Recovery of the San Francisco Hospitality Market: Intergroup's Hotel Operations, which include a significant interest in the Hilton San Francisco Financial District, are well-positioned to benefit from the ongoing recovery of the San Francisco market. The company's President & CEO, John V. Winfield, expressed encouragement by "continuing signs of recovery in the City of San Francisco, which, alongside our ongoing property upgrades, positions the Hotel to compete effectively as conventions and business travel continue to normalize." This normalization of business travel and conventions is expected to drive higher occupancy rates and average daily rates (ADR), building on the 92% occupancy, $218 ADR, and $200 RevPAR reported for fiscal year 2025.
2. Benefits from Hotel Property Upgrades and Renovations: The comprehensive renovation of Intergroup's hotel asset, completed in June 2024, has resulted in full room availability throughout fiscal year 2025 and contributed to stronger hotel performance. These upgrades are anticipated to continue enhancing the hotel's competitiveness and appeal, allowing it to command favorable pricing and attract more guests in the coming years, thus driving revenue growth.
3. Strategic Focus on Real Estate Operations and Long-Term Value Creation: The Real Estate Operations segment demonstrated significant income growth of 31.9% in fiscal year 2025. Intergroup maintains a "continued focus on property operations and capex to support long-term value" within its multifamily and commercial real estate portfolio. This strategy suggests ongoing optimization and investment in their existing real estate assets, aiming to enhance property value, potentially through increased rental income, tenant retention, and strategic capital improvements that contribute to sustained revenue growth.
4. Enhanced Financial Stability Supporting Operational Strategies: Improved liquidity and overall financial health, evidenced by a 74.8% increase in cash and equivalents as of June 30, 2025, and the alleviation of going-concern uncertainty at its subsidiary Portsmouth Square, Inc., provide a more robust foundation for Intergroup. This enhanced financial stability allows the company greater flexibility to execute its operational strategies, including further investments in its hotel and real estate segments, which are crucial for driving future revenue growth without significant financial constraints.

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Share Repurchases

• On December 20, 2021, The InterGroup Corporation announced an increase in its existing stock repurchase program, authorizing the company to purchase up to an additional 125,000 shares of its common stock. This action raised the total remaining authorized shares for repurchase to approximately 130,000 shares.
• For the fiscal year ended June 30, 2025, InterGroup repurchased 24,550 shares of treasury stock.

Share Issuance

• No significant share issuances by the company have been identified within the last 3-5 years from the provided information.

Inbound Investments

• No large equity investments made in the company by third-parties (e.g., strategic partners or private equity firms) have been identified within the last 3-5 years from the provided information.

Outbound Investments

• InterGroup engages in investment activities involving income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, and securities issued by REITs, among others, with a focus on real estate.
• The "Investing Transactions" segment reported a loss of $2,502,000 for fiscal year 2025, which increased from a loss of $1,633,000 in fiscal year 2024.
• The company initiated a plan to dispose of a non-core 12-unit multifamily property in Los Angeles to enhance liquidity for general corporate purposes during the fiscal year ended June 30, 2025.

Capital Expenditures

• Capital expenditures for real estate operations totaled $1,739,000 in fiscal year 2025, a decrease of 24.7% from $2,309,000 in fiscal year 2024.
• Capital expenditures for hotel operations were $2,252,000 in fiscal year 2025, a decrease of 44.8% from $4,078,000 in fiscal year 2024.
• The comprehensive renovation of the Hilton San Francisco Financial District hotel was completed in June 2024, which benefited fiscal year 2025 results from full room availability.