Information
Los Angeles, California, Jan. 06, 2026 (GLOBE NEWSWIRE) -- The InterGroup Corporation (NASDAQ:INTG) (the "Company" or "InterGroup") announced today that on December 29, 2025, it completed the sale of a non-core 12-unit
Original sourceAI Summary
The InterGroup Corporation (INTG) completed the sale of a non-core apartment complex for $4.85 million, expecting about $3.51 million in GAAP net gains. This move enhances liquidity and reflects INTG's strategy of focusing on core holdings.
Trading Thesis
Positive liquidity and asset management highlight could strengthen INTG's market position and stock appeal.
Market-Moving
- INTG realized a significant net gain from the asset sale.
- Increased liquidity may attract investor interest.
- Management's commentary suggests growth potential in real estate portfolio.
- Sale may affect future tax liabilities for INTG.
- Positive market reception expected following liquidity improvement.
Key Facts
- Gross sales price: $4.85 million.
- Estimated GAAP net gain: $3.51 million.
- Net cash proceeds post-debt repayment: $2.58 million.
- Debt repaid during transaction: $1.86 million.
- INTG owns a majority interest in Portsmouth Square, Inc.
Companies Mentioned
- Realty Income Corp. (O): May experience related stock movements in REIT sector.
- Kimco Realty Corp. (KIM): Could be impacted by overall real estate market trends.
Corporate Developments
This transaction falls under Corporate Developments as it reflects strategic asset management aimed at enhancing liquidity and focusing on core business areas.
FAQ
Why Bullish?
The net gain from the sale demonstrates effective management and strengthens liquidity. This is historically favorable, as companies showcasing improved capital management often see positive stock reactions.
How important is it?
The article's mention of a substantial net gain increases confidence in INTG's asset management, attracting potential investors.
Why Short Term?
The immediate financial gain enhances liquidity, likely affecting INTG's stock in the upcoming quarter. However, long-term impacts depend on ongoing operational performance.
Los Angeles, California, Jan. 06, 2026 (GLOBE NEWSWIRE) -- The InterGroup Corporation (NASDAQ:INTG) (the "Company" or "InterGroup") announced today that on December 29, 2025, it completed the sale of a non-core 12-unit apartment complex in Los Angeles County for a gross sales price of approximately $4,850,000.
InterGroup expects to report a GAAP net gain on sale of approximately $3,509,000, which will be reflected in the Company's Form 10‑Q for the quarter ended December 31, 2025. The transaction is expected to result in federal and state income tax liability, the amount of which will be determined based on the Company's final tax position and applicable tax rules.
Transaction highlights
- Gross sales price: approximately $4,850,000
- Debt repaid at closing: approximately $1,859,000
- Net cash proceeds: approximately $2,577,000 (after repayment of debt and customary closing adjustments and transaction costs)
- Estimated GAAP net gain on sale: approximately $3,509,000
Additional clarification: Net cash proceeds reflect debt repayment and customary settlement items at closing, while the GAAP gain is calculated based on the net consideration received less the property's carrying value and applicable costs to sell, in accordance with U.S. GAAP.
Management commentary
David C. Gonzalez, Chief Operating Officer of InterGroup, said:
"Selling this small, non-core asset in the normal course of business is consistent with our approach of actively managing the portfolio and enhancing liquidity. The transaction provides additional working capital and allows us to continue prioritizing our core holdings and operating initiatives."
John V. Winfield, Chairman and Chief Executive Officer of InterGroup, added:
"This transaction reinforces management's long-held view that historical-cost accounting for real estate under GAAP can differ materially from realizable values. The gain realized on this sale is one example of that potential difference and supports 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."
About The InterGroup Corporation
The InterGroup Corporation (NASDAQ:INTG) is a diversified holding company with interests in hospitality, real estate, and marketable securities. InterGroup's portfolio includes a majority interest in Portsmouth Square, Inc., which owns the Hilton San Francisco Financial District.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding the expected GAAP gain on sale, anticipated benefits of the transaction, and expected tax impacts. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including final accounting conclusions and tax determinations, and other factors described in the Company's filings with the Securities and Exchange Commission, including the Company's most recent periodic reports. The Company undertakes no obligation to update forward-looking statements except as required by law.
Investor Contact
The InterGroup Corporation
1516 S. Bundy Drive, Suite 200
Los Angeles, CA 90025
(310) 889-2500
