The InterGroup Corporation (INTG): BCG Matrix [Dec-2025 Updated]

As a seasoned analyst, you know that understanding The InterGroup Corporation's capital allocation requires mapping their assets, and even without verified 2025 numbers, their structure tells a story: expect their core to be anchored by reliable Cash Cows-stable commercial real estate and marketable securities-while new, speculative plays and the Sunstone Hotel Investors, Inc. stake present clear Question Marks demanding attention. We need to see if any new ventures qualify as Stars or if too many legacy assets are dragging down returns as Dogs; dive in to see the full breakdown of where The InterGroup Corporation is winning and where it's just holding on.

Background of The InterGroup Corporation (INTG)

The InterGroup Corporation (INTG), which started way back in 1965, operates as a diversified company with interests spanning hospitality, real estate, and marketable securities. You'll find its stock trades on the NASDAQ exchange. The company's structure centers around three main segments: Hotel Operations, Real Estate Operations, and Investment Transactions. As of late 2025, the company has been showing signs of operational improvement, especially after a major renovation at its key hotel asset.

For the fiscal year ended June 30, 2025, The InterGroup Corporation reported total revenue of $64.38 million, which was a 10.73% increase over the prior year's $58.14 million. On a consolidated basis, the company's EBITDA (a measure of operating performance before certain non-operating expenses) jumped by 131.7% year-over-year to $13.2 million. While the company still posted a net loss, the FY2025 loss was $7.5 million, a significant improvement from the $12.6 million loss reported in FY2024. This financial strengthening also allowed the company to improve its liquidity, with cash and equivalents reaching $15.195 million as of June 30, 2025, marking a 74.8% increase from the previous year.

The Hotel Operations segment, which includes the 544-room Hilton San Francisco Financial District, was a major driver of the positive results. Following a comprehensive renovation completed in June 2024, the hotel benefited from full room availability throughout FY2025. Segment income for Hotel Operations rose by 51.9% to $8,732,000 in FY2025, up from $5,747,000 the year before. Key performance indicators (KPIs) for the hotel in FY2025 included an occupancy rate of 92%, an Average Daily Rate (ADR) of $218, and a Revenue Per Available Room (RevPAR) of $200. The momentum continued into the first quarter of FY2026 (ended September 30, 2025), where hotel occupancy hit 95% and RevPAR reached $207.

The Real Estate Operations segment, which manages 16 apartment complexes, one commercial property, and three single-family houses concentrated in Texas and Southern California, also performed well. Segment income for Real Estate Operations increased by 31.9% in FY2025, reaching $8,465,000 compared to $6,418,000 in FY2024. This segment continued its growth into Q1 FY2026, reporting segment income of $3,157,000, a 20.1% year-over-year increase.

The Investment Transactions segment, however, recorded a loss of $(2,502,000) for FY2025, which was a larger loss than the $(1,633,000) loss from the prior year, reflecting market volatility in that area. Despite the segment loss, the company successfully refinanced its subsidiary Portsmouth Square, Inc. in March 2025, which helped alleviate prior going-concern uncertainty and allowed The InterGroup Corporation to regain compliance with Nasdaq listing requirements. As of November 12, 2025, the company had 2,148,812 shares outstanding.

The InterGroup Corporation (INTG) - BCG Matrix: Stars

High-growth, high-market-share segments are not clearly defined in The InterGroup Corporation's current portfolio as of the latest filings for the period ending September 30, 2025.

The company's structure is defintely more focused on mature assets than high-growth ventures, evidenced by its primary operations centered on the Hilton San Francisco Financial District hotel and a portfolio including 16 apartment complexes, one commercial real estate property, and three single-family houses strategic investments.

Any new, successful real estate development projects in high-demand urban markets would fall here, though specific project-level growth rates are not detailed. The closest indicator of high growth within the existing structure is the Real Estate Operations segment, which reported segment income of $3,157,000 for the three months ended September 30, 2025, representing a year-over-year increase of 20.1%.

Aggressive, high-return investments in a rapidly expanding sector, if they existed, would be a Star. The current performance highlights the operational strength of the existing asset base rather than new, high-market-share ventures.

The table below summarizes the segment operating income for the fiscal year ended June 30, 2025, showing the contribution from the most established business units:

The Hotel Operations segment saw its income rise to $8.7 million for FY2025, while the Real Estate Operations segment income reached $8.5 million. The company reported consolidated EBITDA of $13.2 million for FY2025.

Key operational metrics for the hotel business in the most recent quarter (ending September 30, 2025) show strong market presence, which is a characteristic of a potential Star, though the market itself may not be classified as high-growth:

• Average Daily Rate (ADR): $218
• Occupancy: 95%
• Revenue Per Available Room (RevPAR): $207

The company's overall financial result for FY2025 was a net loss of $7.5 million. This cash consumption, despite segment income growth, is typical for businesses investing heavily to maintain market position, aligning with the cash-neutral nature of Stars.

The InterGroup Corporation (INTG) - BCG Matrix: Cash Cows

You're analyzing The InterGroup Corporation (INTG) portfolio, and the Cash Cows are the bedrock-the businesses that generate more cash than they need to maintain their position. These are the units where market share is high, but the market itself isn't expanding rapidly, meaning you don't need to spend heavily on promotion to defend your turf.

For The InterGroup Corporation, the most evident Cash Cows reside within the Real Estate Operations segment, which focuses on mature assets. This segment generated segment income of $8,465,000 for the fiscal year ended June 30, 2025, a significant increase from the $6,418,000 reported in fiscal year 2024. To support this cash generation, capital investment (capex) for real estate in FY2025 was only $1,739,000. This difference-the cash generated minus the minimal required support-is what funds the rest of the corporation.

The Real Estate Operations portfolio is comprised of 16 apartment complexes, one commercial real estate property, and three single-family houses held as strategic investments, primarily located across Texas, Missouri, Kentucky, and California. These are the stable, long-term holdings that deliver consistent returns.

The Hotel Operations segment, specifically the core asset it owns through its majority-owned subsidiary, Portsmouth Square, Inc., also exhibits Cash Cow characteristics due to high utilization of its established physical assets. The Hilton San Francisco Financial District achieved an occupancy rate of 92% in FY2025, indicating a dominant market share in its specific location, especially following the completion of its comprehensive renovation in June 2024. The parking garage, a niche, high-demand asset, contributes to this stability.

Here's a look at the cash generation versus investment for these core segments in FY2025:

The consistent rental income from fully-leased properties and the steady operation of the hotel parking garage represent the reliable cash flow you want from a Cash Cow. For instance, in the first quarter of fiscal year 2026 (period ended September 30, 2025), the marketable securities segment-which is generally more volatile-still managed a modest net gain of $136,000, though the full FY2025 segment result for Investing Transactions was a loss of $(2,502,000). This suggests the core, physical assets are the true Cash Cows, not the trading portfolio.

The cash generated by these units is critical for The InterGroup Corporation's overall financial health. As of June 30, 2025, the company reported cash and equivalents of $15,195,000. This liquidity, built from the surplus generated by these mature, high-share businesses, helps cover corporate overhead and service debt.

You should look for continued efficiency gains here, not growth spending. The focus should be on maintaining the high occupancy and managing property taxes, which do not depend on revenue. The InterGroup Corporation's strategy here is clearly to 'milk' these gains passively.

• Maintain Hilton San Francisco Financial District Occupancy above 90%.
• Ensure Real Estate Capex remains below 25% of Real Estate Segment Income.
• Target stable or slightly increasing Average Daily Rate (ADR) of $218 (Q1 FY2026).
• Monitor property tax assessments on the commercial portfolio.

The InterGroup Corporation (INTG) - BCG Matrix: Dogs

Dogs, in the Boston Consulting Group framework, represent business units or assets characterized by low market share in slow-growth or shrinking markets. For The InterGroup Corporation (INTG), the clearest manifestation of a Dog category is found within the Investment Transactions segment, which consistently reports losses, tying up capital without generating positive returns.

The performance of the Investment Transactions segment shows a clear drag on overall results. For the fiscal year ended June 30, 2025, this segment reported a loss of $(\$2,502,000)$, which was a significant deterioration, worsening by $53.2\%$ compared to the prior fiscal year's loss of $(\$1,633,000)$. This trend continued into the first quarter of fiscal year 2026, where the net loss attributable to InterGroup was $(\$535,000)$, up from $(\$398,000)$ in the same period last year. These figures suggest that the underlying assets in this category are not only underperforming but are also consuming cash, fitting the description of a cash trap.

Underperforming real estate assets requiring significant capital expenditure with low occupancy are candidates for the Dog quadrant, although the primary Real Estate Operations segment showed segment income growth to $\$8,465,000$ in FY2025. However, the portfolio composition itself suggests potential Dogs. The InterGroup Corporation owns a portfolio that includes:

• 16 apartment complexes
• One commercial real estate property
• Three single-family houses held as strategic investments
• An investment in unimproved real property in Hawaii

The unimproved real property in Hawaii, in particular, fits the profile of a Dog if it is not appreciating or generating income, as it represents capital tied up in a non-core, potentially stagnant asset. Furthermore, the overall balance sheet reflects significant leverage, making the divestiture of non-performing assets critical to improving financial flexibility. As of September 30, 2025, the company reported a total shareholders' deficit of $\$115.5 \text{ million}$, with total liabilities at $\$218.0 \text{ million}$ against total assets of $\$102.5 \text{ million}$.

Expensive turn-around plans are generally ill-advised for Dogs; the clear action is liquidation to free up capital. The reduction in capital expenditure for real estate, from $\$2,309,000$ in FY2024 to $\$1,739,000$ in FY2025, suggests a move toward capital preservation, which aligns with minimizing investment in these units.

Here is a summary of the financial indicators pointing to the 'Dogs' category:

Liquidating these assets is a clear action to free up capital for better opportunities, such as the segments showing growth, like Hotel Operations with FY2025 segment income of $\$8,732,000$. The focus should be on exiting the negative-contributing Investment Transactions segment and assessing the individual performance of the 16 apartment complexes and the unimproved real property in Hawaii to determine which specific assets should be divested.

The InterGroup Corporation (INTG) - BCG Matrix: Question Marks

QUESTION MARKS (high growth products (brands), low market share): These parts of a business have high growth prospects but a low market share. They consume a lot of cash but bring little in return. Question Marks lose a company money. However, since these business units are growing rapidly, they have the potential to turn into Stars in a high-growth market. Companies are advised to invest in Question Marks if the products have potential for growth, or to sell if they do not.

For The InterGroup Corporation (INTG), the Question Marks quadrant is best represented by segments showing significant cash burn or high volatility despite operating within potentially high-growth areas like investment strategies or specific operational units requiring heavy capital support to reach maturity. The Investing Transactions segment loss is a primary indicator of a cash-consuming unit with negative returns.

New, speculative real estate acquisitions in emerging or unproven geographic markets are represented by the capital deployment within the broader Real Estate Operations, though specific speculative acquisitions outside the core Texas and Southern California concentration are not detailed with separate financial performance metrics. The company's overall Real Estate Operations segment income grew by 31.9% to $8,465,000 for Fiscal Year 2025, but this growth is juxtaposed against the negative returns in the Investment Transactions segment.

Significant, recent investments in non-core, high-risk ventures are captured by the performance of the Investing Transactions segment. For the fiscal year ended June 30, 2025, this segment recorded a net loss of $(2,502,000), which was a 53.2% greater loss compared to the prior year's loss of $(1,633,000). This unit demands cash without providing positive operating returns.

Any subsidiary with a low market share but operating in a high-growth industry, demanding cash, points toward the Hotel Operations segment, which is tied to the performance of Portsmouth Square, Inc. The Hotel Operations segment income rose by 51.9% to $8,732,000 in FY2025. However, for the three months ended September 30, 2025, this segment showed a net loss of $2,302,000, marking a 51.2% increase in loss year-over-year.

The performance of the investment in the San Francisco hospitality market, which The InterGroup Corporation (INTG) holds through its majority interest in Portsmouth Square, Inc., offers context for the high-growth/high-risk environment. The Hilton San Francisco Financial District operates in a market where Sunstone Hotel Investors, Inc. (SHO), a peer, reported a Q3 2025 Total Portfolio RevPAR increase of 2.0% to $216.12, yet SHO's own Q3 2025 Net Income was only $1.3 million, down from $3.2 million in Q3 2024. This suggests the San Francisco hospitality market, while showing signs of recovery (e.g., SHO's San Francisco performance offsetting other areas), still presents volatility requiring heavy operational support.

Here's a look at the segment performance that defines the Question Mark characteristics for The InterGroup Corporation (INTG) as of the latest reported periods:

The need to invest heavily or divest is highlighted by the cash drain in the Investment Transactions unit and the operational losses in the hotel subsidiary during Q1 FY2026, even as the core Real Estate Operations segment shows strong income growth.

Key financial data points illustrating the cash consumption and potential for growth/risk:

• Consolidated EBITDA for FY 2025 was $13.2 million, representing a 131.7% increase year-over-year.
• Real estate capex for FY 2025 was $1,739,000.
• Hotel capex for FY 2025 was $2,252,000.
• Net loss attributable to InterGroup in Q1 FY2026 was $535,000.
• Marketable securities recorded a net gain of $136,000 in Q1 FY2026.

The company's real estate portfolio includes 16 apartment complexes, one commercial building, and three single-family houses.