InterGroup's revenues surge 20% as Los Angeles property sale boosts cash reserves
The InterGroup Corporation has reported strong financial results for the latest period, with total revenues rising by 20%. The company also completed the sale of a Los Angeles multifamily property, boosting its cash reserves. Leadership has expressed cautious optimism about market conditions moving forward.
The company's total revenues reached $17.3 million, up from $14.4 million in the same period last year. Hotel revenues saw the sharpest increase, climbing 27% to $12.6 million. Chief Operating Officer David C. Gonzalez attributed this growth to higher room demand and the return of 14 guest rooms after renovations.
Real estate revenues also rose slightly by 4%, reaching $4.6 million. Income from operations more than doubled, increasing from $0.9 million to $2.0 million. Net income attributable to InterGroup turned positive, reaching $1.5 million ($0.71 per diluted share), compared to a net loss of $2.7 million ($1.26 per diluted share) in the previous year.
The company sold a non-core 12-unit multifamily property in Los Angeles County for approximately $4.85 million. This transaction generated net cash proceeds of $2.58 million and a GAAP gain of $3.5 million. By December 31, 2025, cash and cash equivalents stood at $6.6 million, with total liquidity—including restricted cash—reaching $15.0 million.
John V. Winfield, President, Chairman, and CEO, highlighted the company's focus on managing marketable securities while remaining mindful of risk and liquidity. He also noted improving operating conditions in San Francisco.
The sale of the Los Angeles property and strong revenue growth have strengthened InterGroup's financial position. With cash reserves at $15.0 million and improved profitability, the company appears well-placed for the coming period. Leadership continues to monitor market trends while prioritising liquidity and risk management.
