10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2014

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to_________

Commission File Number 1-10324

THE INTERGROUP CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	13-3293645
(State or other jurisdiction of	(I.R.S. Employer
Incorporation or organization)	Identification No.)

10940 Wilshire Blvd., Suite 2150, Los Angeles, California 90024

(Address of principal executive offices) (Zip Code)

(310) 889-2500

(Registrant’s telephone number, including area code)

_________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act):

¨ Yes  x No

The number of shares outstanding of registrant’s Common Stock, as of January 30, 2015 was 2,383,105.

TABLE OF CONTENTS

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements.
	Condensed Consolidated Balance Sheets as of December 31, 2014 (Unaudited) and June 30, 2014	3
	Condensed Consolidated Statements of Operations (Unaudited) for the Three Months ended December 31, 2014 and 2013	4
	Condensed Consolidated Statements of Operations (Unaudited) for the Six Months ended December 31, 2014 and 2013	5
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months ended December 31, 2014 and 2013	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	15
Item 4.	Controls and Procedures.	23
	PART II – OTHER INFORMATION
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 6.	Exhibits.	25
Signatures		25

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PART I

FINANCIAL INFORMATION

Item 1 - Condensed Consolidated Financial Statements

THE INTERGROUP CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

As of	December 31, 2014			June 30, 2014
	(Unaudited)
ASSETS
Investment in hotel, net	$	43,262,000		$	41,897,000
Investment in real estate, net		61,429,000			63,697,000
Investment in marketable securities		11,926,000			11,420,000
Other investments, net		15,811,000			15,837,000
Cash and cash equivalents		1,153,000			4,705,000
Restricted cash - redemption		1,605,000			16,163,000
Restricted cash - mortgage impounds		3,622,000			3,982,000
Other assets, net		7,842,000			7,759,000
Total assets	$	146,650,000		$	165,460,000
LIABILITIES AND SHAREHOLDERS' DEFICIT
Liabilities:
Accounts payable and other liabilities	$	3,730,000		$	4,083,000
Accounts payable and other liabilities - hotel		11,749,000			15,161,000
Redemption payable		1,605,000			16,163,000
Due to securities broker		4,879,000			2,925,000
Obligations for securities sold		572,000			175,000
Other notes payable		708,000			282,000
Mortgage notes payable - hotel		117,000,000			117,000,000
Mortgage notes payable - real estate		73,471,000			75,360,000
Deferred income taxes		685,000			943,000
Total liabilities		214,399,000			232,092,000
Commitments and contingencies
Shareholders' deficit:
Preferred stock, $.01 par value, 100,000 shares authorized; none issued		-			-
Common stock, $.01 par value, 4,000,000 shares authorized; 3,387,972 and 3,383,364 issued; 2,383,105 and 2,381,638 outstanding, respectively		33,000			33,000
Additional paid-in capital		10,319,000			10,092,000
Accumulated deficit		(40,454,000	)		(39,401,000	)
Treasury stock, at cost, 1,004,867 and 1,001,726 shares		(11,874,000	)		(11,818,000	)
Total InterGroup shareholders' deficit		(41,976,000	)		(41,094,000	)
Noncontrolling interest		(25,773,000	)		(25,538,000	)
Total shareholders' deficit		(67,749,000	)		(66,632,000	)
Total liabilities and shareholders' equity	$	146,650,000		$	165,460,000

The accompanying notes are an integral part of these condensed consolidated financial statements.

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THE INTERGROUP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

For the three months ended December 31,	2014			2013
Revenues:
Hotel	$	14,044,000		$	12,274,000
Real estate		4,030,000			4,158,000
Total revenues		18,074,000			16,432,000
Costs and operating expenses:
Hotel operating expenses		(12,033,000	)		(9,493,000	)
Hotel restructuring costs		-			(7,295,000	)
Hotel occupancy tax - penalty fees		-			(1,084,000	)
Real estate operating expenses		(2,192,000	)		(2,266,000	)
Depreciation and amortization expense		(1,232,000	)		(1,284,000	)
General and administrative expense		(960,000	)		(484,000	)
Total costs and operating expenses		(16,417,000	)		(21,906,000	)
Income (loss) from operations		1,657,000			(5,474,000	)
Other income (expense):
Interest expense - mortgages		(2,517,000	)		(1,529,000	)
Interest expense - occupancy tax		-			(328,000	)
Loss on extinguishment of debt		-			(3,910,000	)
Loss on disposal of assets		(51,000	)		(1,092,000	)
Gain on sale of real estate		1,742,000			-
Net (loss) gain on marketable securities		(1,544,000	)		615,000
Net unrealized gain (loss) on other investments		16,000			(6,000	)
Dividend and interest income		503,000			501,000
Trading and margin interest expense		(431,000	)		(422,000	)
Other expense, net		(2,282,000	)		(6,171,000	)
Loss before income taxes		(625,000	)		(11,645,000	)
Income tax benefit		17,000			2,477,000
Net loss		(608,000	)		(9,168,000	)
Less:  Net loss attributable to the noncontrolling interest		319,000			3,697,000
Net loss attributable to InterGroup	$	(289,000	)	$	(5,471,000	)
Net loss per share
Basic and diluted	$	(0.25	)	$	(3.87	)
Net loss per share attributable to InterGroup
Basic and diluted	$	(0.12	)	$	(2.31	)
Weighted average number of basic  and diluted common shares outstanding		2,385,955			2,367,855

The accompanying notes are an integral part of these condensed consolidated financial statements.

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THE INTERGROUP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

For the six months ended December 31,	2014			2013
Revenues:
Hotel	$	28,874,000		$	25,579,000
Real estate		8,227,000			8,236,000
Total revenues		37,101,000			33,815,000
Costs and operating expenses:
Hotel operating expenses		(23,871,000	)		(19,025,000	)
Hotel restructuring costs		-			(7,295,000	)
Hotel occupancy tax - penalty fees		-			(1,084,000	)
Real estate operating expenses		(4,332,000	)		(4,544,000	)
Depreciation and amortization expense		(2,458,000	)		(2,468,000	)
General and administrative expense		(1,741,000	)		(1,011,000	)
Total costs and operating expenses		(32,402,000	)		(35,427,000	)
Income (loss) from operations		4,699,000			(1,612,000	)
Other income (expense):
Interest expense - mortgages		(5,175,000	)		(2,936,000	)
Interest expense - occupancy tax		-			(328,000	)
Loss on extinguishment of debt		-			(3,910,000	)
Loss on disposal of assets		(51,000	)		(1,092,000	)
Gain on sale of real estate		1,742,000			-
Other real estate income		458,000			-
Net (loss) gain on marketable securities		(3,034,000	)		768,000
Net unrealized loss on other investments		(26,000	)		(6,000	)
Dividend and interest income		517,000			515,000
Trading and margin interest expense		(900,000	)		(892,000	)
Other expense, net		(6,469,000	)		(7,881,000	)
Loss before income taxes		(1,770,000	)		(9,493,000	)
Income tax benefit		258,000			2,017,000
Net loss		(1,512,000	)		(7,476,000	)
Less:  Net loss attributable to the noncontrolling interest		460,000			2,287,000
Net loss attributable to InterGroup	$	(1,052,000	)	$	(5,189,000	)
Net loss per share
Basic and diluted	$	(0.63	)	$	(3.16	)
Net loss per share attributable to InterGroup
Basic and diluted	$	(0.44	)	$	(2.19	)
Weighted average number of basic  and diluted common shares outstanding		2,386,051			2,367,812

The accompanying notes are an integral part of these condensed consolidated financial statements.

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THE INTERGROUP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

For the six months ended December 31,	2014			2013
Cash flows from operating activities:
Net loss	$	(1,512,000	)	$	(7,476,000	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		2,458,000			2,468,000
Loss on extinguishment of debt		-			3,910,000
Loss on disposal of assets		51,000			1,092,000
Gain on sale of real estate		(1,742,000	)		-
Gain on  insurance recovery		-			(249,000	)
Net unrealized loss (gain) on marketable securities		3,106,000			(629,000	)
Unrealized loss on other investments		26,000			6,000
Stock compensation expense		552,000			191,000
Changes in assets and liabilities:
Investment in marketable securities		(3,612,000	)		154,000
Other assets		12,000			(1,545,000	)
Accounts payable and other liabilities		(3,765,000	)		4,918,000
Due to securities broker		1,954,000			(345,000	)
Obligations for securities sold		397,000			(208,000	)
Deferred taxes		(258,000	)		(2,017,000	)
Net cash (used in) provided by operating activities		(2,333,000	)		270,000
Cash flows from investing activities:
Net proceeds from sale of real estate		3,288,000			-
Investment in hotel		(2,916,000	)		(1,592,000	)
Investment in real estate		(331,000	)		(142,000	)
Investment in Santa Fe		(68,000	)		-
Investment in Portsmouth		(33,000	)		-
Net cash used in investing activities		(60,000	)		(1,734,000	)
Cash flows from financing activities:
Restricted cash - withdrawal of (payments to) mortgage impounds		360,000			(1,011,000	)
Redemption payments		-			(64,152,000	)
Borrowings from mortgage and other notes payable, net		426,000			68,969,000
Payments to mortgage and other notes payable		(1,889,000	)		(865,000	)
Purchase of treasury stock		(56,000	)		(5,000	)
Net cash (used in) provided by financing activities		(1,159,000	)		2,936,000
Net (decrease) increase in cash and cash equivalents		(3,552,000	)		1,472,000
Cash and cash equivalents at the beginning of the period		4,705,000			1,453,000
Cash and cash equivalents at the end of the period	$	1,153,000		$	2,925,000
Supplemental information:
Interest paid	$	5,471,000		$	3,622,000

The accompanying notes are an integral part of these condensed consolidated financial statements.

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THE INTERGROUP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The condensed consolidated financial statements included herein have been prepared by The InterGroup Corporation (“InterGroup” or the “Company”), without audit, according to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes the disclosures that are made are adequate to make the information presented not misleading. Further, the condensed consolidated financial statements reflect, in the opinion of management, all adjustments (which included only normal recurring adjustments) necessary for a fair statement of the financial position, cash flows and results of operations as of and for the periods indicated. It is suggested that these financial statements be read in conjunction with the audited financial statements of InterGroup and the notes therein included in the Company's Annual Report on Form 10-K for the year ended June 30, 2014. The June 30, 2014 Condensed Consolidated Balance Sheet was derived from the Company’s Form 10-K for the year ended June 30, 2014.

The results of operations for the three and six months ended December 31, 2014 are not necessarily indicative of results to be expected for the full fiscal year ending June 30, 2015.

For the three and six months ended December 31, 2014 and 2013, the Company had no components of comprehensive income other than net income itself.

Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. The computation of diluted income per share is similar to the computation of basic earnings per share except that the weighted-average number of common shares is increased to include the number of additional common shares that would have been outstanding if potential dilutive common shares had been issued. The Company's only potentially dilutive common shares are stock options. For the three and six months ended December 31, 2014, the Company did not have diluted earnings per share as the Company had a net loss from continuing operations for the period.

Certain reclassifications have been made to the 2013 consolidated financial statement presentation to correspond to the current year's format. Total equity, net assets, and revenues over expenses are unchanged due to these reclassifications.

As of December 31, 2014, the Company had the power to vote 85.1% of the voting shares of Santa Fe Financial Corporation (“Santa Fe”), a public company (OTCBB: SFEF). This percentage includes the power to vote an approximately 4% interest in the common stock in Santa Fe owned by the Company’s Chairman and President pursuant to a voting trust agreement entered into on June 30, 1998.

Santa Fe’s primary business is conducted through the management of its 68.8% owned subsidiary, Portsmouth Square, Inc. (“Portsmouth”), a public company (OTCBB: PRSI). Portsmouth’s primary business is conducted through its general and limited partnership interest in Justice Investors, a California limited partnership (“Justice” or the “Partnership”). Portsmouth controls approximately 93% of the voting interest in Justice and is the sole general partner. InterGroup also directly owns approximately 13.1% of the common stock of Portsmouth. The financial statements of Justice are consolidated with those of the Company.

Justice, through its subsidiaries Justice Holdings Company, LLC (“Holdings”), a Delaware Limited Liability Company, Justice Operating Company, LLC (“Operating”) and Justice Mezzanine Company, LLC (“Mezzanine”), owns a 543-room hotel property located at 750 Kearny Street, San Francisco California, known as the Hilton San Francisco Financial District (the Hotel) and related facilities including a five level underground parking garage. Holdings and Mezzanine are both a wholly-owned subsidiaries of the Partnership; Operating is a wholly-owned subsidiary of Mezzanine. Mezzanine is the Mezzanine borrower under certain indebtedness of Justice, and in December 2013, the Partnership conveyed ownership of the Hotel to Operating, The Hotel is operated by the partnership as a full service Hilton brand hotel pursuant to a Franchise License Agreement with Hilton Hotels Corporation. Justice also has a Management Agreement with Prism Hospitality L.P. (“Prism”) to perform management functions for the Hotel. The management agreement with Prism had an original term of ten years and can be terminated at any time with or without cause by the Partnership owner. Effective January 2014, the management agreement with Prism was amended by the Partnership. Effective December 1, 2013, GMP Management, Inc., a company owned by a Justice limited partner and related party, also provides management services for the Partnership pursuant to a Management Services Agreement, which is for a term of 3 years, but which can be terminated earlier by the Partnership for cause.

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Management believes that the revenues expected to be generated from the operations of the hotel, garage and leases will be sufficient to meet all of the Partnership’s current and future obligations and financial requirements. Management also believes that there is significant value in the Hotel to support additional borrowings, if necessary.

In addition to the operations of the Hotel, the Company also generates income from the ownership of real estate. Properties include apartment complexes, commercial real estate, and two single-family houses as strategic investments. The properties are located throughout the United States, but are concentrated in Texas and Southern California. The Company also has investments in unimproved real property.

NOTE 2 – INVESTMENT IN HOTEL, NET

Investment in hotel consisted of the following as of:

			Accumulated			Net Book
December 31, 2014	Cost		Depreciation			Value
Land	$	2,738,000	$	-		$	2,738,000
Furniture and equipment		25,359,000		(20,850,000	)		4,509,000
Building and improvements		60,571,000		(24,556,000	)		36,015,000
	$	88,668,000	$	(45,406,000	)	$	43,262,000

			Accumulated			Net Book
June 30, 2014	Cost		Depreciation			Value
Land	$	2,738,000	$	-		$	2,738,000
Furniture and equipment		23,306,000		(20,072,000	)		3,234,000
Building and improvements		59,828,000		(23,903,000	)		35,925,000
	$	85,872,000	$	(43,975,000	)	$	41,897,000

NOTE 3 – INVESTMENT IN REAL ESTATE AND MORTGAGE AND OTHER NOTES PAYABLE

Investment in real estate consisted of the following:

As of	December 31, 2014			June 30, 2014
Land	$	24,741,000		$	25,781,000
Buildings, improvements and equipment		72,882,000			74,039,000
Accumulated depreciation		(36,194,000	)		(36,123,000	)
Investment in real estate, net	$	61,429,000		$	63,697,000

In November 2014, the Company sold its 5,900 square foot commercial property for $3,450,000 and realized a gain on the sale of real estate of $1,742,000. The Company received net proceeds of $2,163,000 after selling costs and the repayment of the related mortgage of $1,100,000. Prior to its sale, this property was being leased by the buyer.

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In February 2014, the Company entered into a contract to sell its 249 unit apartment complex located in Austin, Texas and the adjacent unimproved land for $15,800,000. The purchase/sale agreement provides that purchaser can terminate the agreement with or without cause, however, the potential purchaser would forfeit the earnest money ($208,000) and additional consideration ($250,000) totaling $458,000. The purchaser also had the option to extend the agreement. During the quarter ended September 30, 2014, the Company received the $458,000 and recognized it as income as the result of the potential buyer not extending the purchase agreement. In December 2014, the Company entered into a new contract with a different buyer to sell the same property for $16,300,000. The purchase/sale agreement provides that purchaser can terminate the agreement with or without cause, however, the potential purchaser would forfeit the non-refundable portion of the earnest money of $100,000. It is estimated that the sale will close by the end of February 2015.

NOTE 4 – INVESTMENT IN MARKETABLE SECURITIES

The Company’s investment in marketable securities consists primarily of corporate equities. The Company has also invested in corporate bonds and income producing securities, which may include interests in real estate based companies and REITs, where financial benefit could transfer to its shareholders through income and/or capital gain.

At December 31, 2014 and June 30, 2014, all of the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows:

			Gross		Gross			Net			Fair
Investment	Cost		Unrealized Gain		Unrealized Loss			Unrealized Gain (Loss)			Value
As of December 31, 2014
Corporate
Equities	$	14,016,000	$	651,000	$	(2,741,000	)	$	(2,090,000	)	$	11,926,000
As of June 30, 2014
Corporate
Equities	$	10,369,000	$	2,717,000	$	(1,666,000	)	$	1,051,000		$	11,420,000

As of December 31, 2014 and June 30, 2014, the Company had unrealized losses of $1,881,000 and $1,615,000, respectively, related to securities held for over one year.

Net (loss) gain on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of the two components for the respective periods:

For the three months ended December 31,	2014			2013
Realized (loss) gain on marketable securities	$	(83,000	)	$	410,000
Unrealized (loss) gain on marketable securities		(1,461,000	)		205,000
Net (loss) gain on marketable securities	$	(1,544,000	)	$	615,000
For the six months ended December 31,		2014			2013
Realized gain on marketable securities	$	72,000		$	138,000
Unrealized (loss) gain on marketable securities		(3,106,000	)		630,000
Net (loss) gain on marketable securities	$	(3,034,000	)	$	768,000

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NOTE 5 – OTHER INVESTMENTS, NET

The Company may also invest, with the approval of the Securities Investment Committee and other Company guidelines, in private investment equity funds and other unlisted securities, such as convertible notes through private placements. Those investments in non-marketable securities are carried at cost on the Company’s balance sheet as part of other investments, net of other than temporary impairment losses. Other investments also include non-marketable warrants carried at fair value.

Other investments, net consist of the following:

Type	December 31, 2014		June 30, 2014
Preferred stock - Comstock, at cost	$	13,231,000	$	13,231,000
Private equity hedge fund, at cost		1,650,000		1,650,000
Corporate debt and equity instruments, at cost		269,000		269,000
Other preferred stock, at cost		480,000		480,000
Warrants - at fair value		181,000		207,000
	$	15,811,000	$	15,837,000

NOTE 6 - FAIR VALUE MEASUREMENTS

The carrying values of the Company’s financial instruments not required to be carried at fair value on a recurring basis approximate fair value due to their short maturities (i.e., accounts receivable, other assets, accounts payable and other liabilities, due to securities broker and obligations for securities sold) or the nature and terms of the obligation (i.e., other notes payable and mortgage notes payable).

The assets measured at fair value on a recurring basis are as follows:

As of December 31, 2014
Assets:	Level 1		Level 2		Level 3		Total
Other investments - warrants	$	-	$	-	$	181,000	$	181,000
Investment in marketable securities:
Basic materials		4,830,000		-		-		4,830,000
Energy		2,906,000		-		-		2,906,000
Technology and telecommunications		1,202,000		-		-		1,202,000
REITs and real estate companies		964,000		-		-		964,000
Financial services		582,000		-		-		582,000
Other		1,442,000		-		-		1,442,000
		11,926,000		-		-		11,926,000
	$	11,926,000	$	-	$	181,000	$	12,107,000

As of June 30, 2014
Assets:	Level 1		Level 2		Level 3		Total
Other investments - warrants	$	-	$	-	$	207,000	$	207,000
Investment in marketable securities:
Basic materials		5,081,000		-		-		5,081,000
Technology		1,395,000		-		-		1,395,000
REITs and real estate companies		1,001,000		-		-		1,001,000
Financial services		820,000		-		-		820,000
Other		3,123,000		-		-		3,123,000
		11,420,000		-		-		11,420,000
	$	11,420,000	$	-	$	207,000	$	11,627,000

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The fair values of investments in marketable securities are determined by the most recently traded price of each security at the balance sheet date. The fair value of the warrants was determined based upon a Black-Scholes option valuation model.

Financial assets that are measured at fair value on a non-recurring basis and are not included in the tables above include “Other investments in non-marketable securities,” that were initially measured at cost and have been written down to fair value as a result of impairment or adjusted to record the fair value of new instruments received (i.e., preferred shares) in exchange for old instruments (i.e., debt instruments). The following table shows the fair value hierarchy for these assets measured at fair value on a non-recurring basis as follows:

									Net gain for the six months
Assets	Level 1		Level 2		Level 3		December 31, 2014		ended December 31, 2014
Other non-marketable investments	$	-	$	-	$	15,630,000	$	15,630,000	$	-

									Net gain for the six months
Assets	Level 1		Level 2		Level 3		June 30, 2014		ended December 31, 2013
Other non-marketable investments	$	-	$	-	$	15,630,000	$	15,630,000	$	-

Other investments in non-marketable securities are carried at cost net of any impairment loss. The Company has no significant influence or control over the entities that issue these investments and holds less than 20% ownership in each of the investments. These investments are reviewed on a periodic basis for other-than-temporary impairment. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: (i) the length of time an investment is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near term prospects of the issuer and (iv) our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value.

NOTE 7 – STOCK BASED COMPENSATION PLANS

The Company follows Accounting Standard Codification (ASC) Topic 718 “Compensation – Stock Compensation”, which addresses accounting for equity-based compensation arrangements, including employee stock options and restricted stock units. 

Please refer to Note 16 – Stock Based Compensation Plans in the Company's Form 10-K for the year ended June 30, 2014 for more detail information on the Company’s stock-based compensation plans.

During the three months ended December 31, 2014 and 2013, the Company recorded stock option compensation cost of $227,000 and $52,000, respectively, related to stock options that were previously issued. During the six months ended December 31, 2014 and 2013, the Company recorded stock option compensation cost of $464,000 and $103,000, respectively, related to stock options that were previously issued. As of December 31, 2014, there was a total of $1,013,000 of unamortized compensation related to stock options which is expected to be recognized over the weighted-average period of 4 years.

Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history. The Company has selected to use the simplified method for estimating the expected term. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future.

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The following table summarizes the stock options activity from June 30, 2013 through December 31, 2014:

		Number of			Weighted Average		Weighted Average	Aggregate
		Shares			Exercise Price		Remaining Life	Intrinsic Value
Oustanding at	July 1, 2013		222,000		$	14.98	6.89 years	$	1,353,000
Granted			160,000			18.96
Exercised			(15,000	)		11.75
Forfeited			-			-
Exchanged			-			-
Oustanding at	June 30, 2014		367,000		$	16.85	7.71 years	$	953,000
Exercisable at	June 30, 2014		92,000		$	11.30	5.10 years	$	717,000
Vested and Expected to vest at	June 30, 2014		367,000		$	16.85	7.71 years	$	953,000
Oustanding at	July 1, 2014		367,000		$	16.85	7.71 years	$	731,000
Granted			-			-
Exercised			-			-
Forfeited			-			-
Exchanged			-			-
Oustanding at	December 31, 2014		367,000		$	16.85	7.20 years	$	731,000
Exercisable at	December 31, 2014		92,000		$	13.00	5.29 years	$	585,000
Vested and Expected to vest at	December 31, 2014		367,000		$	16.85	7.20 years	$	731,000

On July 1 of every year, as part of the Stock Compensation Plan for Non-employee Directors, each non-employee director received an automatic grant of a number of shares of Company’s Common Stock equal in value to $22,000 ($88,000 total recorded as stock compensation expense for the six months ended December 31, 2014 and 2013) based on 100% of the fair market value of the Company’s stock on the day of grant. During the six months ended December 31, 2014 and 2013, the four non-employee directors of the Company received a total grant of 4,608 and 4,192 shares of common stock.

As of December 31, 2014, there were no restricted stock units (RSUs) outstanding.

NOTE 8 – SEGMENT INFORMATION

The Company operates in three reportable segments, the operation of the hotel (“Hotel Operations”), the operation of its multi-family residential properties (“Real Estate Operations”) and the investment of its cash in marketable securities and other investments (“Investment Transactions”). These three operating segments, as presented in the financial statements, reflect how management internally reviews each segment’s performance. Management also makes operational and strategic decisions based on this information.

Information below represents reported segments for the three and six months ended December 31, 2014 and 2013. Operating income (loss) from hotel operations consist of the operation of the hotel and operation of the garage. Operating income for rental properties consist of rental income. Operating income (loss) for investment transactions consist of net investment gain (loss) and dividend and interest income.

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As of and for the three months	Hotel			Real Estate			Investment
ended December 31, 2014	Operations			Operations			Transactions			Other			Total
Revenues	$	14,044,000		$	4,030,000		$	-		$	-		$	18,074,000
Segment operating expenses		(12,033,000	)		(2,192,000	)		-			(960,000	)		(15,185,000	)
Segment income (loss) from operations		2,011,000			1,838,000			-			(960,000	)		2,889,000
Interest expense - mortgage		(1,769,000	)		(748,000	)		-			-			(2,517,000	)
Loss on disposal of assets		(51,000	)		-			-			-			(51,000	)
Gain on sale of real estate		-			1,742,000			-			-			1,742,000
Depreciation and amortization expense		(714,000	)		(518,000	)		-			-			(1,232,000	)
Loss from investments		-			-			(1,456,000	)		-			(1,456,000	)
Income tax benefit		-			-			-			17,000			17,000
Net income (loss)	$	(523,000	)	$	2,314,000		$	(1,456,000	)	$	(943,000	)	$	(608,000	)
Total assets	$	51,234,000		$	61,429,000		$	27,737,000		$	6,250,000		$	146,650,000

As of and for the three months	Hotel			Real Estate			Investment
ended December 31, 2013	Operations			Operations			Transactions		Other			Total
Revenues	$	12,274,000		$	4,158,000		$	-	$	-		$	16,432,000
Segment operating expenses		(17,872,000	)		(2,266,000	)		-		(484,000	)		(20,622,000	)
Segment income (loss) from operations		(5,598,000	)		1,892,000			-		(484,000	)		(4,190,000	)
Interest expense - mortgage		(767,000	)		(762,000	)		-		-			(1,529,000	)
Interest expense - occupancy tax		(328,000	)		-			-		-			(328,000	)
Loss on extinguishment of debt		(3,910,000	)		-			-		-			(3,910,000	)
Loss on disposal of assets		(1,092,000	)		-			-		-			(1,092,000	)
Depreciation and amortization expense		(747,000	)		(537,000	)		-		-			(1,284,000	)
Gain from investments		-			-			688,000		-			688,000
Income tax benefit		-			-			-		2,477,000			2,477,000
Net income (loss)	$	(12,442,000	)	$	593,000		$	688,000	$	1,993,000		$	(9,168,000	)
Total assets	$	68,141,000		$	64,581,000		$	28,373,000	$	5,603,000		$	166,698,000

As of and for the six months	Hotel			Real Estate			Investment
ended December 31, 2014	Operations			Operations			Transactions			Other			Total
Revenues	$	28,874,000		$	8,227,000		$	-		$	-		$	37,101,000
Segment operating expenses		(23,871,000	)		(4,332,000	)		-			(1,741,000	)		(29,944,000	)
Segment income (loss) from operations		5,003,000			3,895,000			-			(1,741,000	)		7,157,000
Interest expense - mortgage		(3,665,000	)		(1,510,000	)		-			-			(5,175,000	)
Loss on disposal of assets		(51,000	)		-			-			-			(51,000	)
Gain on sale of real estate		-			1,742,000			-			-			1,742,000
Other real estate income		-			458,000			-			-			458,000
Depreciation and amortization expense		(1,405,000	)		(1,053,000	)		-			-			(2,458,000	)
Loss from investments		-			-			(3,443,000	)		-			(3,443,000	)
Income tax benefit		-			-			-			258,000			258,000
Net income (loss)	$	(118,000	)	$	3,532,000		$	(3,443,000	)	$	(1,483,000	)	$	(1,512,000	)
Total assets	$	51,234,000		$	61,429,000		$	27,737,000		$	6,250,000		$	146,650,000

As of and for the six months	Hotel			Real Estate			Investment
ended December 31, 2013	Operations			Operations			Transactions		Other			Total
Revenues	$	25,579,000		$	8,236,000		$	-	$	-		$	33,815,000
Segment operating expenses		(27,404,000	)		(4,544,000	)		-		(1,011,000	)		(32,959,000	)
Segment income (loss) from operations		(1,825,000	)		3,692,000			-		(1,011,000	)		856,000
Interest expense - mortgage		(1,402,000	)		(1,534,000	)		-		-			(2,936,000	)
Interest expense - occupancy tax		(328,000	)		-			-		-			(328,000	)
Loss on extinguishment of debt		(3,910,000	)		-			-		-			(3,910,000	)
Loss on disposal of assets		(1,092,000	)		-			-		-			(1,092,000	)
Depreciation and amortization expense		(1,396,000	)		(1,072,000	)		-		-			(2,468,000	)
Gain from investments		-			-			385,000		-			385,000
Income tax benefit		-			-			-		2,017,000			2,017,000
Net income (loss)	$	(9,953,000	)	$	1,086,000		$	385,000	$	1,006,000		$	(7,476,000	)
Total assets	$	68,141,000		$	64,581,000		$	28,373,000	$	5,603,000		$	166,698,000

NOTE 9 – RELATED PARTY TRANSACTIONS

On July 2, 2014, the Partnership obtained from the InterGroup Corporation (parent company of Portsmouth) an unsecured loan in the principal amount of $4,250,000 at 12% per year fixed interest, with a term of 2 years, payable interest only each month. InterGroup received a 3% loan fee. The loan may be prepaid at any time without penalty. The proceeds of the loan were applied to the July 2014 payments to Holdings described in Note 20 of the Company’s consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014. The loan was eliminated in consolidation.

During the three months ended December 31, 2014 and 2013, the Company received management fees from Justice Investors totaling $140,000 and $108,000, respectively. During the six months ended December 31, 2014 and 2013, the Company received management fees from Justice Investors totaling $281,000 and $220,000, respectively.

These fees are eliminated in consolidation.

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In connection with the redemption of limited partnership interests of Justice Investors, Limited Partnership (which took place during fiscal year ended June 30, 2014), Justice Operating Company, LLC agreed to pay a total of $1,550,000 in fees to certain officers and directors of the Company for services rendered in connection with the redemption of partnership interests, refinancing of Justice’s properties and reorganization of Justice Investors. This agreement was superseded by a letter dated December 11, 2013 from Justice Investors, Limited Partnership, in which Justice Investors Limited Partnership assumed the payment obligations of Justice Operating Company, LLC. The first payment under this agreement was made concurrently with the closing of the loan agreements, with the remaining payments due upon Justice Investor’s having adequate available cash as described in the letter. As of December 31, 2014, $1,250,000 of these fees remains payable.

Four of the Portsmouth directors serve as directors of Intergroup. Three of those directors also serve as directors of Santa Fe. The three Santa Fe directors also serve as directors of InterGroup.

John V. Winfield serves as Chief Executive Officer and Chairman of the Company, Portsmouth and Santa Fe. Depending on certain market conditions and various risk factors, the Chief Executive Officer, his family, Portsmouth and Santa Fe may, at times, invest in the same companies in which the Company invests. The Company encourages such investments because it places personal resources of the Chief Executive Officer and his family members, and the resources of Portsmouth and Santa Fe, at risk in connection with investment decisions made on behalf of the Company.

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Item 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS AND PROJECTIONS

The Company may from time to time make forward-looking statements and projections concerning future expectations. When used in this discussion, the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “could,” “might” and similar expressions, are intended to identify forward-looking statements. These statements are subject to certain risks and uncertainties, such as national and worldwide economic conditions, including the impact of recessionary conditions on tourism, travel and the lodging industry, the impact of terrorism and war on the national and international economies, including tourism and securities markets, energy and fuel costs, natural disasters, general economic conditions and competition in the hotel industry in the San Francisco area, seasonality, labor relations and labor disruptions, actual and threatened pandemics such as swine flu, partnership distributions, the ability to obtain financing at favorable interest rates and terms, securities markets, regulatory factors, litigation and other factors discussed below in this Report and in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014, that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

RESULTS OF OPERATIONS

As of December 31, 2014, the Company owned approximately 81.2% of the common shares of its subsidiary, Santa Fe and Santa Fe owned approximately 68.8% of the common shares of Portsmouth Square, Inc. InterGroup also directly owns approximately 13.1% of the common shares of Portsmouth.

The Company's principal sources of revenue continue to be derived from the general and limited partnership interests of its subsidiary, Portsmouth, in the Justice Investors limited partnership (“Justice” or the “Partnership”), rental income from its investments in multi-family real estate properties and income received from investment of its cash and securities assets. Justice owns a 543 room hotel property located at 750 Kearny Street, San Francisco, California 94108, known as the “Hilton San Francisco Financial District” (the “Hotel”) and related facilities, including a five-level underground parking garage. The financial statements of Justice have been consolidated with those of the Company.

The Hotel is operated by the Partnership as a full service Hilton brand hotel pursuant to a Franchise License Agreement with Hilton Hotels Corporation. The term of the Agreement is for a period of 15 years commencing on January 12, 2006, with an option to extend the license term for another five years, subject to certain conditions. Justice also has a Management Agreement with Prism Hospitality L.P. (“Prism”) to perform management functions for the Hotel. The management agreement with Prism had an original term of ten years and can be terminated at any time with or without cause by the Partnership owner. Effective January 2014, the management agreement with Prism was amended by the Partnership. Effective December 1, 2013, GMP Management, Inc., a company owned by a Justice limited partner and related party, also provides management services for the Partnership pursuant to a Management Services Agreement, which is for a term of 3 years, but which can be terminated earlier by the Partnership for cause.

The parking garage that is part of the Hotel property is managed by Ace Parking pursuant to a contract with the Partnership. Portsmouth also receives management fees as a general partner of Justice for its services in overseeing and managing the Partnership’s assets. Those fees are eliminated in consolidation.

In addition to the operations of the Hotel, the Company also generates income from the ownership and management of real estate. Properties include seventeen apartment complexes, one commercial real estate property, and two single-family houses as strategic investments. The properties are located throughout the United States, but are concentrated in Texas and Southern California. The Company also has investments in unimproved real property. All of the Company’s operating real estate properties with exception of the one commercial property were managed by professional third party property management companies. In July 2014, the Company terminated its property and asset management agreements with the professional third party property management company that managed its properties located outside of California. Beginning July 2014, the Company began managing its five properties located outside of California in-house, while the properties located in California are still being managed by a third party property management company, with exception to the one remaining commercial building which is also managed in-house.

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The Company acquires its investments in real estate and other investments utilizing cash, securities or debt, subject to approval or guidelines of the Board of Directors. The Company also invests in income-producing instruments, equity and debt securities and will consider other investments if such investments offer growth or profit potential.

Three Months Ended December 31, 2014 Compared to the Three Months Ended December 31, 2013

The Company had a net loss of $608,000 for the three months ended December 31, 2014 compared to a net loss of $9,168,000 for the three months ended December 31, 2013. The change in the net loss is primarily attributable to all of the costs associated with the redemption of the limited partners of Justice that occurred in the quarter ended December 31, 2013 and the gain on the sale of real estate in the current quarter, partially offset by the lower income from hotel operations due to the higher operating expenses, legal costs and mortgage interest expense in the current quarter. During the current quarter, the Company also had a net loss from investing activity versus income in the comparable period.

The Company had net loss from hotel operations of $523,000 for the three months ended December 31, 2014, compared to a net loss of $12,442,000 for the three months ended December 31, 2013. The change in the net loss as noted above was primarily attributable to all of the costs associated with the redemption of the limited partners of Justice that occurred in the quarter ended December 31, 2013. Although revenues from the Hotel increased, the increase was offset by higher operating expenses which resulted in lower operating income before non-recurring charges and interest and depreciation and amortization for the current quarter.

The following table sets forth a more detailed presentation of Hotel operations for the three months ended December 31, 2014 and 2013.

For the three months ended December 31,	2014			2013
Hotel revenues:
Hotel rooms	$	10,916,000		$	9,761,000
Food and beverage		2,073,000			1,568,000
Garage		721,000			744,000
Other operating departments		334,000			201,000
Total hotel revenues		14,044,000			12,274,000
Operating expenses, excluding non-recurring charges, depreciation and amortization		(12,033,000	)		(9,493,000	)
Operating income before non-recurring charges, interest and depreciation and amortization		2,011,000			2,781,000
Hotel restructuring costs		-			(7,295,000	)
Hotel occupancy tax - penalty fees		-			(1,084,000	)
Income (loss) before loss on extinguishment of debt, loss on disposal of assets , interest, depreciation and amortization		2,011,000			(5,598,000	)
Loss on extinguishment of debt		-			(3,910,000	)
Loss on disposal of assets		(51,000	)		(1,092,000	)
Interest expense - mortgage		(1,769,000	)		(767,000	)
Interest expense - occupancy tax		-			(328,000	)
Depreciation and amortization expense		(714,000	)		(747,000	)
Net loss from Hotel operations	$	(523,000	)	$	(12,442,000	)

For the three months ended December 31, 2014, the Hotel generated operating income of $2,011,000 before non-recurring charges and interest and depreciation and amortization on total operating revenues of $14,044,000 compared to operating income of $2,781,000 before non-recurring charges and interest and depreciation and amortization on total operating revenues of $12,274,000 for the three months ended December 31, 2013. Room revenues increased by $1,155,000 for the three months ended December 31, 2014 compared to the three months ended December 31, 2013 primarily as the result of higher room rates and increased occupancy from business groups. Food and beverage revenue increased by $505,000 as result of increase in group stays during the current period.

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Operating expenses increased by $2,540,000 compared to the prior period primarily due to higher legal fees and higher operating expenses which include employee related expenses, room occupancy related expenses and food and beverage related expenses, franchise and credit card fees as the result in the increase in revenues and higher property taxes as the result of the redemption the limited partners and the refinancing of the Hotel.

The following table sets forth the average daily room rate, average occupancy percentage and room revenue per available room (“RevPAR”) of the Hotel for the three months ended December 31, 2014 and 2013.

Three Months Ended December 31,	Average Daily Rate		Average Occupancy %			RevPAR
2014	$	245		89	%	$	218
2013	$	218		89	%	$	195

Room revenues remained strong as the San Francisco market continued to have good demand for higher rated business. The Hotel’s average daily rate increased by $27 for the three months ended December 31, 2014 compared to the three months ended December 31, 2013, while occupancy percentages remained consistent at 89%. As a result, the Hotel was able to achieve a RevPAR number that was $23 higher than the comparative three month period.

Our highest priority is guest satisfaction. We believe that enhancing the guest experience differentiates the Hotel from our competition by building the most sustainable guest loyalty. In addition to the recent completion of “The Cloud” (technology lounge), three new premium executive meeting rooms and the Karaoke lounge, the hotel has enhanced the arrival experience of the guests by renovating and upgrading the entrance and the lobby. The lobby, the porte cochere and the second floor furniture have been modernized. The carpet flooring in the lobby has been replaced by oak wood creating an open and welcoming environment. The Wellness Center on the fifth floor features a new spa with two treatment rooms and a room for manicure and pedicure. The fitness center has been expanded with state of the art equipment. 

In order to further the client experience, the hotel plans to renovate the fourth floor meeting rooms to make a state of the art meeting space. The third floor and the ballroom carpets will be replaced. The bathrooms in the Hotel rooms will be remodeled with modern shower amenities. And finally, the Hotel in conjunction with the Chinese Cultural Center is developing a landscape area on the Pedestrian Bridge that connects the hotel to Portsmouth Square. We continue taking steps that further develop our ties with the local Chinese community and the city of San Francisco, representing good corporate citizenship and promoting important, new business opportunities.

Real estate revenues for the three months ended December 31, 2014 of $4,030,000 remained consistent with revenues of $4,158,000 for the three months ended December 31, 2013. Real estate operating expenses decreased to $2,192,000 from $2,266,000 as the result the decrease in property management fees. In July 2014, the Company terminated its property and asset management agreements with the professional third party property management company that managed its properties located outside of California and began managing these properties in-house. Management continues to review and analyze the Company’s real estate operations to improve occupancy and rental rates and to reduce expenses and improve efficiencies.

In November 2014, the Company sold its 5,900 square foot commercial property for $3,450,000 and realized a gain on the sale of real estate of $1,742,000. The Company received net proceeds of $2,163,000 after selling costs and the repayment of the related mortgage of $1,100,000. Prior to its sale, this property was being leased by the buyer.

In February 2014, the Company entered into a contract to sell its 249 unit apartment complex located in Austin, Texas and the adjacent unimproved land for $15,800,000. The purchase/sale agreement provides that purchaser can terminate the agreement with or without cause, however, the potential purchaser would forfeit the earnest money ($208,000) and additional consideration ($250,000) totaling $458,000. The purchaser also had the option to extend the agreement. During the quarter ended September 30, 2014, the Company received the $458,000 and recognized it as income as the result of the potential buyer not extending the purchase agreement. In December 2014, the Company entered into a new contract with a different buyer to sell the same property for $16,300,000. The purchase/sale agreement provides that purchaser can terminate the agreement with or without cause, however, the potential purchaser would forfeit the non-refundable portion of the earnest money of $100,000. It is estimated that the sale will close by the end of February 2015.

- 17 -

The Company had a net loss on marketable securities of $1,544,000 for the three months ended December 31, 2014 compared to a net gain on marketable securities of $615,000 for the three months ended December 31, 2013. Approximately 81% of the $1,544,000 net loss is related to the Company’s investment in the common stock of Comstock. Such investments represent approximately 24.5% of the Company’s portfolio. For the three months ended December 31, 2014, the Company had a net realized loss of $83,000 and a net unrealized loss of $1,461,000. For the three months ended December 31, 2013, the Company had a net realized gain of $410,000 and a net unrealized gain of $205,000. Gains and losses on marketable securities may fluctuate significantly from period to period in the future and could have a significant impact on the Company’s results of operations. However, the amount of gain or loss on marketable securities for any given period may have no predictive value and variations in amount from period to period may have no analytical value. For a more detailed description of the composition of the Company’s marketable securities see the Marketable Securities section below.

General and administrative expense increased to $960,000 for the three months ended December 31, 2014 from $484,000 for the three months ended December 31, 2013 as the result of the increase in stock compensation expense to $227,000 from $52,000 and the increase in the overall corporate general and administrative expense in the current quarter.

The Company and its subsidiaries, Portsmouth and Santa Fe, compute and file income tax returns and prepare discrete income tax provisions for financial reporting. The income tax benefit during the three months ended December 31, 2014 and 2013 represents primarily the income tax effect on the Portsmouth’s pretax (loss) income which includes its share in net income (loss) of the Hotel. The Company’s tax benefit as a percentage of the Portsmouth’s income (loss) before income taxes has increased in fiscal 2015 due to the redemption and a larger ownership in Justice.

Six Months Ended December 31, 2014 Compared to the Six Months Ended December 31, 2013

The Company had a net loss of $1,512,000 for the six months ended December 31, 2014 compared to a net loss of $7,476,000 for the six months ended December 31, 2013. The change in the net loss is primarily attributable to all of the costs associated with the redemption of the limited partners of Justice that occurred in the quarter ended December 31, 2013 and the gain on the sale of real estate in the current period, partially offset by the lower income from hotel operations due to the higher operating expenses, legal costs and mortgage interest expense in the current period. During the current period, the Company also had a net loss from investing activity versus income in the comparable period.

The Company had net loss from hotel operations of $118,000 for the six months ended December 31, 2014, compared to a net loss of $9,953,000 for the six months ended December 31, 2013. The change in the net loss as noted above was primarily attributable to all of the costs associated with the redemption of the limited partners of Justice that occurred in the quarter ended December 31, 2013. Although revenues from the Hotel increased, the increase was offset by higher operating expenses which resulted in lower operating income before non-recurring charges and interest and depreciation and amortization for the current quarter.

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The following table sets forth a more detailed presentation of Hotel operations for the six months ended December 31, 2014 and 2013.

For the six months ended December 31,	2014			2013
Hotel revenues:
Hotel rooms	$	23,260,000		$	20,815,000
Food and beverage		3,646,000			2,896,000
Garage		1,418,000			1,499,000
Other operating departments		550,000			369,000
Total hotel revenues		28,874,000			25,579,000
Operating expenses, excluding non-recurring charges, depreciation and amortization		(23,871,000	)		(19,025,000	)
Operating income before non-recurring charges, interest and depreciation and amortization		5,003,000			6,554,000
Hotel restructuring costs		-			(7,295,000	)
Hotel occupancy tax - penalty fees		-			(1,084,000	)
Income (loss) before loss on extinguishment of debt, loss on disposal of assets , interest, depreciation and amortization		5,003,000			(1,825,000	)
Loss on extinguishment of debt		-			(3,910,000	)
Loss on disposal of assets		(51,000	)		(1,092,000	)
Interest expense - mortgage		(3,665,000	)		(1,402,000	)
Interest expense - occupancy tax		-			(328,000	)
Depreciation and amortization expense		(1,405,000	)		(1,396,000	)
Net loss from Hotel operations	$	(118,000	)	$	(9,953,000	)

For the six months ended December 31, 2014, the Hotel generated operating income of $5,003,000 before non-recurring charges and interest and depreciation and amortization on total operating revenues of $28,874,000 compared to operating income of $6,554,000 before non-recurring charges and interest and depreciation and amortization on total operating revenues of $25,579,000 for the six months ended December 31, 2013. Room revenues increased by $2,445,000 for the six months ended December 31, 2014 compared to the six months ended December 31, 2013 primarily as the result of higher room rates and increased occupancy from business groups. Food and beverage revenue increased by $750,000 as result of increase in group stays during the current period.

Operating expenses increased by $4,846,000 compared to the prior period primarily due to higher legal fees and higher operating expenses which include employee related expenses, room occupancy related expenses and food and beverage related expenses, franchise and credit card fees as the result in the increase in revenues and higher property taxes as the result of the redemption the limited partners and the refinancing of the Hotel.

The following table sets forth the average daily room rate, average occupancy percentage and room revenue per available room (“RevPAR”) of the Hotel for the six months ended December 31, 2014 and 2013.

Six Months Ended December 31,	Average Daily Rate		Average Occupancy %			RevPAR
2014	$	252		93	%	$	232
2013	$	227		92	%	$	208

Room revenues remained strong as the San Francisco market continued to have good demand for higher rated business. The Hotel’s average daily rate increased by $25 for the six months ended December 31, 2014 compared to the six months ended December 31, 2013, while occupancy percentages increase to 93% from 92%. As a result, the Hotel was able to achieve a RevPAR number that was $24 higher than the comparative three month period.

- 19 -

Our highest priority is guest satisfaction. We believe that enhancing the guest experience differentiates the Hotel from our competition by building the most sustainable guest loyalty. In addition to the recent completion of “The Cloud” (technology lounge), three new premium executive meeting rooms and the Karaoke lounge, the hotel has enhanced the arrival experience of the guests by renovating and upgrading the entrance and the lobby. The lobby, the porte cochere and the second floor furniture have been modernized. The carpet flooring in the lobby has been replaced by oak wood creating an open and welcoming environment. The Wellness Center on the fifth floor features a new spa with two treatment rooms and a room for manicure and pedicure. The fitness center has been expanded with state of the art equipment. 

In order to further the client experience, the hotel plans to renovate the fourth floor meeting rooms to make a state of the art meeting space. The third floor and the ballroom carpets will be replaced. The bathrooms in the Hotel rooms will be remodeled with modern shower amenities. And finally, the Hotel in conjunction with the Chinese Cultural Center is developing a landscape area on the Pedestrian Bridge that connects the hotel to Portsmouth Square. We continue taking steps that further develop our ties with the local Chinese community and the city of San Francisco, representing good corporate citizenship and promoting important, new business opportunities.

Real estate revenues for the six months ended December 31, 2014 of $8,227,000 remained consistent with revenues of $8,236,000 for the six months ended December 31, 2014. Real estate operating expenses decreased to $4,332,000 from $4,544,000 as the result the decrease in property management fees. In July 2014, the Company terminated its property and asset management agreements with the professional third party property management company that managed its properties located outside of California and began managing these properties in-house. Management continues to review and analyze the Company’s real estate operations to improve occupancy and rental rates and to reduce expenses and improve efficiencies.

In November 2014, the Company sold its 5,900 square foot commercial property for $3,450,000 and realized a gain on the sale of real estate of $1,742,000. The Company received net proceeds of $2,163,000 after selling costs and the repayment of the related mortgage of $1,100,000. Prior to its sale, this property was being leased by the buyer.

In February 2014, the Company entered into a contract to sell its 249 unit apartment complex located in Austin, Texas and the adjacent unimproved land for $15,800,000. The purchase/sale agreement provides that purchaser can terminate the agreement with or without cause, however, the potential purchaser would forfeit the earnest money ($208,000) and additional consideration ($250,000) totaling $458,000. The purchaser also had the option to extend the agreement. During the quarter ended September 30, 2014, the Company received the $458,000 and recognized it as income as the result of the potential buyer not extending the purchase agreement. In December 2014, the Company entered into a new contract with a different buyer to sell the same property for $16,300,000. The purchase/sale agreement provides that purchaser can terminate the agreement with or without cause, however, the potential purchaser would forfeit the non-refundable portion of the earnest money of $100,000. It is estimated that the sale will close by the end of February 2015.

The Company had a net loss on marketable securities of $3,034,000 for the six months ended December 31, 2014 compared to a net gain on marketable securities of $768,000 for the six months ended December 31, 2013. Approximately 85% of the $3,034,000 net loss is related to the Company’s investment in the common stock of Comstock. Such investments represent approximately 24.5% of the Company’s portfolio. For the six months ended December 31, 2014, the Company had a net realized gain of $72,000 and a net unrealized loss of $3,106,000. For the six months ended December 31, 2013, the Company had a net realized gain of $138,000 and a net unrealized gain of $630,000. Gains and losses on marketable securities may fluctuate significantly from period to period in the future and could have a significant impact on the Company’s results of operations. However, the amount of gain or loss on marketable securities for any given period may have no predictive value and variations in amount from period to period may have no analytical value. For a more detailed description of the composition of the Company’s marketable securities see the Marketable Securities section below.

General and administrative expense increased to $1,741,000 for the six months ended December 31, 2014 from $1,011,000 for the six months ended December 31, 2013 as the result of the increase in stock compensation expense to $552,000 from $191,000 and the increase in the overall corporate general and administrative expense in the current quarter.

The Company and its subsidiaries, Portsmouth and Santa Fe, compute and file income tax returns and prepare discrete income tax provisions for financial reporting. The income tax benefit during the six months ended December 31, 2014 and 2013 represents primarily the income tax effect on the Portsmouth’s pretax (loss) income which includes its share in net income (loss) of the Hotel. The Company’s tax benefit as a percentage of the Portsmouth’s income (loss) before income taxes has increased in fiscal 2015 due to the redemption and a larger ownership in Justice.

- 20 -

MARKETABLE SECURITIES

As of December 31, 2014 and June 30, 2014, the Company had investments in marketable equity securities of $11,926,000 and $11,420,000, respectively. The following table shows the composition of the Company’s marketable securities portfolio by selected industry groups as:

As of December 31, 2014			% of Total
			Investment
Industry Group	Fair Value		Securities
Basic materials	$	4,830,000		40.5	%
Energy		2,906,000		24.4	%
Technology and telecommunications		1,202,000		10.1	%
REITs and real estate companies		964,000		8.1	%
Financial services		582,000		4.9	%
Other		1,442,000		12.0	%
	$	11,926,000		100.0	%

As of June 30, 2014			% of Total
			Investment
Industry Group	Fair Value		Securities
Basic materials	$	5,081,000		44.5	%
Technology		1,395,000		12.2	%
REITs and real estate companies		1,001,000		8.8	%
Financial services		820,000		7.2	%
Other		3,123,000		27.3	%
	$	11,420,000		100.0	%

The Company’s investment in marketable securities portfolio is diversified with 55 different equity positions. The Company holds two equity securities that are individually more than 10% of the equity value of the portfolio. The largest security represents 24.5% of the portfolio and consists of the common stock of Comstock Mining, Inc. (“Comstock” - NYSE MKT: LODE) which is included in the basic materials industry group. The amount of the Company’s investment in any particular issuer may increase or decrease, and additions or deletions to its securities portfolio may occur, at any time. While it is the internal policy of the Company to limit its initial investment in any single equity to less than 10% of its total portfolio value, that investment could eventually exceed 10% as a result of equity appreciation or reduction of other positions. A significant percentage of the portfolio consists of common stock in Comstock that was obtained through dividend payments by Comstock on its 7.5% Series A-1 Convertible Preferred Stock. The Company also owns Comstock convertible preferred stock that is valued at $13,231,000 as of December 31, 2014 and June 30, 2014 and included in Other Investments.

Marketable securities are stated at fair value as determined by the most recently traded price of each security at the balance sheet date.

- 21 -

For the three months ended December 31,	2014			2013
Net (loss) gain on marketable securities	$	(1,544,000	)	$	615,000
Net unrealized gain (loss) on other investments		16,000			(6,000	)
Dividend and interest income		503,000			501,000
Margin interest expense		(139,000	)		(160,000	)
Trading and management expenses		(292,000	)		(262,000	)
	$	(1,456,000	)	$	688,000

For the six months ended December 31,	2014			2013
Net gain (loss) on marketable securities	$	(3,034,000	)	$	768,000
Net unrealized loss on other investments		(26,000	)		(6,000	)
Dividend and interest income		517,000			515,000
Margin interest expense		(296,000	)		(358,000	)
Trading and management expenses		(604,000	)		(534,000	)
	$	(3,443,000	)	$	385,000

FINANCIAL CONDITION AND LIQUIDITY

The Company’s cash flows are primarily generated from its Hotel operations, and general partner management fees, its real estate operations and from the investment of its cash in marketable securities and other investments.

On December 18, 2013, the Partnership completed an Offer to Redeem any and all limited partnership interests not held by Portsmouth. As a result, Portsmouth, which prior to the Offer to Redeem owned 50% of the then outstanding limited partnership interests now controls approximately 93% of the voting interest in Justice and is now its sole General Partner.

To fund redemption of limited partnership interests and to repay the prior mortgage, Justice obtained a $97,000,000 mortgage loan and a $20,000,000 mezzanine loan. The mortgage loan is secured by the Partnership’s principal asset, the Hilton San Francisco-Financial District. The mortgage loan initially bears an interest rate of 5.28% per annum and matures in January 2024. As additional security for the mortgage loan, there is a limited guaranty executed by the Company in favor of mortgage lender. The mezzanine loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine loan initially bears interest at 9.75% per annum and matures in January 2024. As additional security for the mezzanine loan, there is a limited guaranty executed by the Company in favor of mezzanine lender.

Despite an uncertain economy, the Hotel has continued to generate strong revenue growth. While the debt service requirements related the new loans and the ongoing legal dispute with some of the former Justice partners, may create some additional risk for the Company and its ability to generate cash flows in the future, management believes that cash flows from the operations of the Hotel and the garage will continue to be sufficient to meet all of the Partnership’s current and future obligations and financial requirements. Management also believes that there is sufficient equity in the Hotel assets to support future borrowings, if necessary, to fund any new capital improvements and other requirements.

In November 2014, the Company sold its 5,900 square foot commercial property located in Los Angeles, California for $3,450,000 and realized a gain on the sale of real estate of $1,742,000. The Company received net proceeds of $2,163,000 after selling costs and the repayment of the related mortgage of $1,100,000.

Management believes that its cash, securities assets, real estate and the cash flows generated from those assets and from the partnership management fees, will be adequate to meet the Company’s current and future obligations. Additionally, management believes there is significant appreciated value in the Hotel and other real estate properties to support additional borrowings if necessary.

- 22 -

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no off balance sheet arrangements.

MATERIAL CONTRACTUAL OBLIGATIONS

The following table provides a summary as of December 31, 2014, the Company’s material financial obligations which also including interest payments.

			6 Months		Year		Year		Year		Year
	Total		2015		2016		2017		2018		2019		Thereafter
Mortgage and subordinated notes payable	$	190,471,000	$	1,718,000	$	5,213,000	$	2,288,000	$	3,087,000	$	3,238,000	$	174,927,000
Redemption payable		1,605,000		1,605,000		-		-		-		-		-
Other notes payable		708,000		313,000		316,000		79,000		-		-		-
Interest		82,028,000		5,376,000		10,573,000		10,445,000		9,908,000		9,250,000		36,476,000
Total	$	274,812,000	$	9,012,000	$	16,102,000	$	12,812,000	$	12,995,000	$	12,488,000	$	211,403,000

IMPACT OF INFLATION

Hotel room rates are typically impacted by supply and demand factors, not inflation, since rental of a hotel room is usually for a limited number of nights. Room rates can be, and usually are, adjusted to account for inflationary cost increases. Since Prism has the power and ability under the terms of its management agreement to adjust hotel room rates on an ongoing basis, there should be minimal impact on partnership revenues due to inflation. The Company’s revenues are also subject to interest rate risks, which may be influenced by inflation. For the two most recent fiscal years, the impact of inflation on the Company's income is not viewed by management as material.

The Company's residential rental properties provide income from short-term operating leases and no lease extends beyond one year. Rental increases are expected to offset anticipated increased property operating expenses.

CRITICAL ACCOUNTING POLICIES AND USE OF ESTIMATES

Critical accounting policies are those that are most significant to the presentation of our financial position and results of operations and require judgments by management in order to make estimates about the effect of matters that are inherently uncertain. The preparation of these condensed financial statements requires us to make estimates and judgments that affect the reported amounts in our consolidated financial statements. We evaluate our estimates on an on-going basis, including those related to the consolidation of our subsidiaries, to our revenues, allowances for bad debts, accruals, asset impairments, other investments, income taxes and commitments and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The actual results may differ from these estimates or our estimates may be affected by different assumptions or conditions. There have been no material changes to the Company’s critical accounting policies during the six months ended December 31, 2014. Please refer to the Company’s Annual Report on Form 10-K for the year ended June 30, 2014 for a summary of the critical accounting policies.

Item 4. Controls and Procedures.

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

The Company’s management, with the participation of the Company’s Chief Executive Officer and Principal Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the quarterly period covered by this Quarterly Report on Form 10-Q. Based upon such evaluation, the Chief Executive Officer and Principal Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed in this filing is accumulated and communicated to management and is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms.

- 23 -

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no changes in the Company’s internal control over financial reporting during the last quarterly period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II.

OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) None.

(b) Not applicable.

(c) Purchases of equity securities by the small business issuer and affiliated purchasers.

The following table reflects purchases of InterGroup’s common stock made by The InterGroup Corporation, for its own account, during the second quarter of its fiscal year ending June 30, 2015.

SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES

					(c) Total Number		(d) Maximum Number
	(a) Total		(b)		of Shares Purchased		of shares that May
Fiscal	Number of		Average		as Part of Publicly		Yet be Purchased
2015	Shares		Price Paid		Announced Plans		Under the Plans
Period	Purchased		Per Share		or Programs		or Programs
Month #1 (October 1- October 31)		-		-		-		97,966
Month #2 (November 1- November 30)		-		-		-		97,966
Month #3 (December 1- December 31)		3,141	$	17.94		3,141		94,825
TOTAL:		3,141	$	17,94		3,141		94,825

The Company has only one stock repurchase program. The program was initially announced on January 13, 1998 and was amended on February 10, 2003 and October 12, 2004. The total number of shares authorized to be repurchased pursuant to those prior authorizations was 870,000, adjusted for stock splits. On June 3, 2009, the Board of Directors authorized the Company to purchase up to an additional 125,000 shares of Company’s common stock. On November 15, 2012, the Board of Directors authorized the Company to purchase up to an additional 100,000 shares of Company’s common stock. The purchases will be made, in the discretion of management, from time to time, in the open market or through privately negotiated third party transactions depending on market conditions and other factors. The Company’s repurchase program has no expiration date and can be amended and increased, from time to time, in the discretion of the Board of Directors. No plan or program expired during the period covered by the table.

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Item 6. Exhibits.

31.1 Certification of Principal Executive Officer of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d-14(a).

31.2 Certification of Principal Financial Officer of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d-14(a).

32.1 Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350.

32.2 Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		THE INTERGROUP CORPORATION
		(Registrant)
Date:	February 11, 2015	by	/s/ John V. Winfield
			John V. Winfield, President,
			Chairman of the Board and
			Chief Executive Officer
Date:	February 11, 2015	by	/s/ David T. Nguyen
			David T. Nguyen, Treasurer
			and Controller

- 25 -

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, John V. Winfield, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The InterGroup Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

(a) All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 11, 2015

/s/ John V. Winfield

John V. Winfield

President and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, David T. Nguyen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The InterGroup Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

(a) All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 11, 2015

/s/ David T. Nguyen

David T. Nguyen

Treasurer and Controller

(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

Certification of Principal Executive Officer Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of The Sarbanes-Oxley Act Of 2002

In connection with the Quarterly Report of The InterGroup Corporation (the "Company") on Form 10-Q for the quarterly period ended December 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John V. Winfield, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

· The Report fully complies with the requirements of Section 13(a) or 5(d) of the Securities Exchange Act of 1934; and

· The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John V. Winfield

John V. Winfield

President and Chief Executive Officer

(Principal Executive Officer)

Date: February 11, 2015

A signed original of this written statement required by Section 906 has been provided to The InterGroup Corporation and will be retained by The InterGroup Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

Certification of Principal Financial Officer Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of The Sarbanes-Oxley Act Of 2002

In connection with the Quarterly Report of The InterGroup Corporation (the "Company") on Form 10-Q for the quarterly period ended December 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, David T. Nguyen, Treasurer and Controller of the Company, serving as its Principal Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

· The Report fully complies with the requirements of Section 13(a) or 5(d) of the Securities Exchange Act of 1934; and

· The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ David T. Nguyen

David T. Nguyen

Treasurer and Controller

(Principal Financial Officer)

Date: February 11, 2015

A signed original of this written statement required by Section 906 has been provided to The InterGroup Corporation and will be retained by The InterGroup Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

STOCK BASED COMPENSATION PLANS (Details) (USD $)	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2013
Stock Based Compensation [Line Items]
Oustanding, Number of Shares	367,000	222,000
Granted, Number of Shares	0	160,000
Exercised, Number of Shares	0	(15,000)
Forfeited, Number of Shares	0	0
Exchanged, Number of Shares	0	0
Oustanding, Number of Shares	367,000	367,000	222,000
Exercisable, Number of Shares	92,000	92,000
Vested and Expected to vest, Number of Shares	367,000	367,000
Oustanding, Weighted Average Exercise Price	$ 16.85	$ 14.98
Granted, Weighted Average Exercise Price	$ 0	$ 18.96
Exercised, Weighted Average Exercise Price	$ 0	$ 11.75
Forfeited, Weighted Average Exercise Price	$ 0	$ 0
Exchanged, Weighted Average Exercise Price	$ 0	$ 0
Oustanding, Weighted Average Exercise Price	$ 16.85	$ 16.85	$ 14.98
Exercisable, Weighted Average Exercise Price	$ 13.00	$ 11.30
Vested and Expected to vest, Weighted Average Exercise Price	$ 16.85	$ 16.85
Oustanding at Weighted Average Remaining Life	7 years 2 months 12 days	7 years 8 months 16 days	6 years 10 months 20 days
Exercisable, Weighted Average Remaining Life	5 years 3 months 14 days	5 years 1 month 6 days
Vested and Expected to vest, Weighted Average Remaining Life	7 years 2 months 12 days	7 years 8 months 16 days
Outstanding, Aggregate Intrinsic Value	$ 731,000	$ 1,353,000
Outstanding, Aggregate Intrinsic Value	731,000	731,000	1,353,000
Exercisable, Aggregate Intrinsic Value	585,000	717,000
Vested and Expected to vest, Aggregate Intrinsic Value	$ 731,000	$ 953,000

XML

INVESTMENT IN REAL ESTATE AND MORTGAGE AND OTHER NOTES PAYABLE (Details Textual) (USD $)	3 Months Ended		6 Months Ended		1 Months Ended		3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Nov. 30, 2014 sqft	Feb. 28, 2014	Sep. 30, 2014
Property, Plant and Equipment [Line Items]
Gains (Losses) on Sales of Other Real Estate	$ 1,742,000	$ 0	$ 1,742,000	$ 0
Commercial Real Estate [Member]
Property, Plant and Equipment [Line Items]
Net Proceeds From Sale Of Other Real Estate					2,163,000
Selling Costs And Related Mortgage Repayments					1,100,000
Area of Real Estate Property					5,900
Proceeds from Sale of Other Real Estate					3,450,000
Gains (Losses) on Sales of Other Real Estate					1,742,000
Apartment Building [Member]
Property, Plant and Equipment [Line Items]
Real Estate Held-for-sale	16,300,000		16,300,000			15,800,000
Number Of Apartment units Sold						249
Proceeds from Sale of Buildings						458,000
Gain Loss On Sale Of Buildings			100,000			208,000
Additional Consideration Received From Sale Of Buildings						250,000
Proceeds from Distributions Received from Real Estate Partnerships							458,000
Gains (Losses) on Sales of Other Real Estate	$ 1,742,000		$ 1,742,000

XML

INVESTMENT IN MARKETABLE SECURITIES

6 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 4 – INVESTMENT IN MARKETABLE SECURITIES

The Company’s investment in marketable securities consists primarily of corporate equities. The Company has also invested in corporate bonds and income producing securities, which may include interests in real estate based companies and REITs, where financial benefit could transfer to its shareholders through income and/or capital gain.

At December 31, 2014 and June 30, 2014, all of the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows:

			Gross		Gross		Net		Fair
Investment	Cost		Unrealized Gain		Unrealized Loss		Unrealized Gain (Loss)		Value
As of December 31, 2014
Corporate
Equities	$	14,016,000	$	651,000	$	(2,741,000)	$	(2,090,000)	$	11,926,000
As of June 30, 2014
Corporate
Equities	$	10,369,000	$	2,717,000	$	(1,666,000)	$	1,051,000	$	11,420,000

As of December 31, 2014 and June 30, 2014, the Company had unrealized losses of $1,881,000 and $1,615,000, respectively, related to securities held for over one year.

Net (loss) gain on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of the two components for the respective periods:

For the three months ended December 31,	2014		2013
Realized (loss) gain on marketable securities	$	(83,000)	$	410,000
Unrealized (loss) gain on marketable securities		(1,461,000)		205,000
Net (loss) gain on marketable securities	$	(1,544,000)	$	615,000

For the six months ended December 31,	2014		2013
Realized gain on marketable securities	$	72,000	$	138,000
Unrealized (loss) gain on marketable securities		(3,106,000)		630,000
Net (loss) gain on marketable securities	$	(3,034,000)	$	768,000

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OTHER INVESTMENTS, NET (Details) (USD $)	Dec. 31, 2014	Jun. 30, 2014
Other Investment [Line Items]
Other investments, net	$ 15,811,000	$ 15,837,000
Preferred stock - Comstock, at cost [Member]
Other Investment [Line Items]
Other investments, net	13,231,000	13,231,000
Private equity hedge fund, at cost [Member]
Other Investment [Line Items]
Other investments, net	1,650,000	1,650,000
Corporate debt and equity instruments, at cost [Member]
Other Investment [Line Items]
Other investments, net	269,000	269,000
Other preferred stock, at cost [Member]
Other Investment [Line Items]
Other investments, net	480,000	480,000
Warrants - at fair value [Member]
Other Investment [Line Items]
Other investments, net	$ 181,000	$ 207,000

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INVESTMENT IN MARKETABLE SECURITIES (Details Textual) (USD $)	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	$ 1,881,000	$ 1,615,000

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FAIR VALUE MEASUREMENTS (Details) (USD $)	Dec. 31, 2014	Jun. 30, 2014
Assets:
Other investments - warrants	$ 181,000	$ 207,000
Investment in marketable securities	11,926,000	11,420,000
Assets, Fair Value Disclosure	12,107,000	11,627,000
Fair Value, Inputs, Level 1 [Member]
Assets:
Other investments - warrants	0	0
Investment in marketable securities	11,926,000	11,420,000
Assets, Fair Value Disclosure	11,926,000	11,420,000
Fair Value, Inputs, Level 2 [Member]
Assets:
Other investments - warrants	0	0
Investment in marketable securities	0	0
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member]
Assets:
Other investments - warrants	181,000	207,000
Investment in marketable securities	0	0
Assets, Fair Value Disclosure	181,000	207,000
Basic Materials [Member]
Assets:
Investment in marketable securities	4,830,000	5,081,000
Basic Materials [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Investment in marketable securities	4,830,000	5,081,000
Basic Materials [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Investment in marketable securities	0	0
Basic Materials [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Investment in marketable securities	0	0
Energy [Member]
Assets:
Investment in marketable securities	2,906,000
Energy [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Investment in marketable securities	2,906,000
Energy [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Investment in marketable securities	0
Energy [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Investment in marketable securities	0
Technology [Member]
Assets:
Investment in marketable securities	1,202,000	1,395,000
Technology [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Investment in marketable securities	1,202,000	1,395,000
Technology [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Investment in marketable securities	0	0
Technology [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Investment in marketable securities	0	0
REITs and Real Estate Companies [Member]
Assets:
Investment in marketable securities	964,000	1,001,000
REITs and Real Estate Companies [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Investment in marketable securities	964,000	1,001,000
REITs and Real Estate Companies [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Investment in marketable securities	0	0
REITs and Real Estate Companies [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Investment in marketable securities	0	0
Financial Services [Member]
Assets:
Investment in marketable securities	582,000	820,000
Financial Services [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Investment in marketable securities	582,000	820,000
Financial Services [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Investment in marketable securities	0	0
Financial Services [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Investment in marketable securities	0	0
Other [Member]
Assets:
Investment in marketable securities	1,442,000	3,123,000
Other [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Investment in marketable securities	1,442,000	3,123,000
Other [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Investment in marketable securities	0	0
Other [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Investment in marketable securities	$ 0	$ 0

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FAIR VALUE MEASUREMENTS (Details 1) (USD $)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net gain	$ 0	$ 0
Other Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other non-marketable investments	15,630,000		15,630,000
Other Investments [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other non-marketable investments	0		0
Other Investments [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other non-marketable investments	0		0
Other Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other non-marketable investments	$ 15,630,000		$ 15,630,000

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INVESTMENT IN REAL ESTATE AND MORTGAGE AND OTHER NOTES PAYABLE (Apartment Building [Member])

6 Months Ended

Dec. 31, 2014

Apartment Building [Member]

Real Estate Properties [Line Items]

Real Estate Disclosure [Text Block]

NOTE 3 – INVESTMENT IN REAL ESTATE AND MORTGAGE AND OTHER NOTES PAYABLE

Investment in real estate consisted of the following:

As of	December 31, 2014		June 30, 2014
Land	$	24,741,000	$	25,781,000
Buildings, improvements and equipment		72,882,000		74,039,000
Accumulated depreciation		(36,194,000)		(36,123,000)
Investment in real estate, net	$	61,429,000	$	63,697,000

In November 2014, the Company sold its 5,900 square foot commercial property for $3,450,000 and realized a gain on the sale of real estate of $1,742,000. The Company received net proceeds of $2,163,000 after selling costs and the repayment of the related mortgage of $1,100,000. Prior to its sale, this property was being leased by the buyer.

In February 2014, the Company entered into a contract to sell its 249 unit apartment complex located in Austin, Texas and the adjacent unimproved land for $15,800,000. The purchase/sale agreement provides that purchaser can terminate the agreement with or without cause, however, the potential purchaser would forfeit the earnest money ($208,000) and additional consideration ($250,000) totaling $458,000. The purchaser also had the option to extend the agreement. During the quarter ended September 30, 2014, the Company received the $458,000 and recognized it as income as the result of the potential buyer not extending the purchase agreement. In December 2014, the Company entered into a new contract with a different buyer to sell the same property for $16,300,000. The purchase/sale agreement provides that purchaser can terminate the agreement with or without cause, however, the potential purchaser would forfeit the non-refundable portion of the earnest money of $100,000. It is estimated that the sale will close by the end of February 2015.

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FAIR VALUE MEASUREMENTS (Details Textual)	6 Months Ended
	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost Method Investments, Additional Information	Other investments in non-marketable securities are carried at cost net of any impairment loss. The Company has no significant influence or control over the entities that issue these investments and holds less than 20% ownership in each of the investments.

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Jun. 30, 2014
ASSETS
Investment in hotel, net	$ 43,262,000	$ 41,897,000
Investment in real estate, net	61,429,000	63,697,000
Investment in marketable securities	11,926,000	11,420,000
Other investments, net	15,811,000	15,837,000
Cash and cash equivalents	1,153,000	4,705,000
Restricted cash - redemption	1,605,000	16,163,000
Restricted cash - mortgage impounds	3,622,000	3,982,000
Other assets, net	7,842,000	7,759,000
Total assets	146,650,000	165,460,000
Liabilities:
Accounts payable and other liabilities	3,730,000	4,083,000
Accounts payable and other liabilities - hotel	11,749,000	15,161,000
Redemption payable	1,605,000	16,163,000
Due to securities broker	4,879,000	2,925,000
Obligations for securities sold	572,000	175,000
Other notes payable	708,000	282,000
Mortgage notes payable - hotel	117,000,000	117,000,000
Mortgage notes payable - real estate	73,471,000	75,360,000
Deferred income taxes	685,000	943,000
Total liabilities	214,399,000	232,092,000
Commitments and contingencies
Shareholders' deficit:
Preferred stock, $.01 par value, 100,000 shares authorized; none issued	0	0
Common stock, $.01 par value, 4,000,000 shares authorized; 3,387,972 and 3,383,364 issued; 2,383,105 and 2,381,638 outstanding, respectively	33,000	33,000
Additional paid-in capital	10,319,000	10,092,000
Accumulated deficit	(40,454,000)	(39,401,000)
Treasury stock, at cost, 1,004,867 and 1,001,726 shares	(11,874,000)	(11,818,000)
Total InterGroup shareholders' deficit	(41,976,000)	(41,094,000)
Noncontrolling interest	(25,773,000)	(25,538,000)
Total shareholders' deficit	(67,749,000)	(66,632,000)
Total liabilities and shareholders' equity	$ 146,650,000	$ 165,460,000

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

1.  BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The condensed consolidated financial statements included herein have been prepared by The InterGroup Corporation (“InterGroup” or the “Company”), without audit, according to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes the disclosures that are made are adequate to make the information presented not misleading. Further, the condensed consolidated financial statements reflect, in the opinion of management, all adjustments (which included only normal recurring adjustments) necessary for a fair statement of the financial position, cash flows and results of operations as of and for the periods indicated. It is suggested that these financial statements be read in conjunction with the audited financial statements of InterGroup and the notes therein included in the Company's Annual Report on Form 10-K for the year ended June 30, 2014. The June 30, 2014 Condensed Consolidated Balance Sheet was derived from the Company’s Form 10-K for the year ended June 30, 2014.

The results of operations for the three and six months ended December 31, 2014 are not necessarily indicative of results to be expected for the full fiscal year ending June 30, 2015.

For the three and six months ended December 31, 2014 and 2013, the Company had no components of comprehensive income other than net income itself.

Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. The computation of diluted income per share is similar to the computation of basic earnings per share except that the weighted-average number of common shares is increased to include the number of additional common shares that would have been outstanding if potential dilutive common shares had been issued. The Company's only potentially dilutive common shares are stock options. For the three and six months ended December 31, 2014, the Company did not have diluted earnings per share as the Company had a net loss from continuing operations for the period.

Certain reclassifications have been made to the 2013 consolidated financial statement presentation to correspond to

the current year's format. Total equity, net assets, and revenues over expenses are unchanged due to these

reclassifications.

As of December 31, 2014, the Company had the power to vote 85.1% of the voting shares of Santa Fe Financial Corporation (“Santa Fe”), a public company (OTCBB: SFEF). This percentage includes the power to vote an approximately 4% interest in the common stock in Santa Fe owned by the Company’s Chairman and President pursuant to a voting trust agreement entered into on June 30, 1998.

Santa Fe’s primary business is conducted through the management of its 68.8% owned subsidiary, Portsmouth Square, Inc. (“Portsmouth”), a public company (OTCBB: PRSI). Portsmouth’s primary business is conducted through its general and limited partnership interest in Justice Investors, a California limited partnership (“Justice” or the “Partnership”). Portsmouth controls approximately 93% of the voting interest in Justice and is the sole general partner. InterGroup also directly owns approximately 13.1% of the common stock of Portsmouth. The financial statements of Justice are consolidated with those of the Company.

Justice, through its subsidiaries Justice Holdings Company, LLC (“Holdings”), a Delaware Limited Liability Company, Justice Operating Company, LLC (“Operating”) and Justice Mezzanine Company, LLC (“Mezzanine”), owns a 543-room hotel property located at 750 Kearny Street, San Francisco California, known as the Hilton San Francisco Financial District (the Hotel) and related facilities including a five level underground parking garage. Holdings and Mezzanine are both a wholly-owned subsidiaries of the Partnership; Operating is a wholly-owned subsidiary of Mezzanine. Mezzanine is the Mezzanine borrower under certain indebtedness of Justice, and in December 2013, the Partnership conveyed ownership of the Hotel to Operating, The Hotel is operated by the partnership as a full service Hilton brand hotel pursuant to a Franchise License Agreement with Hilton Hotels Corporation. Justice also has a Management Agreement with Prism Hospitality L.P. (“Prism”) to perform management functions for the Hotel. The management agreement with Prism had an original term of ten years and can be terminated at any time with or without cause by the Partnership owner. Effective January 2014, the management agreement with Prism was amended by the Partnership. Effective December 1, 2013, GMP Management, Inc., a company owned by a Justice limited partner and related party, also provides management services for the Partnership pursuant to a Management Services Agreement, which is for a term of 3 years, but which can be terminated earlier by the Partnership for cause.

Management believes that the revenues expected to be generated from the operations of the hotel, garage and leases will be sufficient to meet all of the Partnership’s current and future obligations and financial requirements. Management also believes that there is significant value in the Hotel to support additional borrowings, if necessary.

In addition to the operations of the Hotel, the Company also generates income from the ownership of real estate. Properties include apartment complexes, commercial real estate, and two single-family houses as strategic investments. The properties are located throughout the United States, but are concentrated in Texas and Southern California. The Company also has investments in unimproved real property.

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SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014
Segment Reporting Information [Line Items]
Revenues	$ 18,074,000	$ 16,432,000	$ 37,101,000	$ 33,815,000
Segment operating expenses	(15,185,000)	(20,622,000)	(29,944,000)	(32,959,000)
Segment income (loss) from operations	1,657,000	(5,474,000)	4,699,000	(1,612,000)
Interest expense - mortgage	(2,517,000)	(1,529,000)	(5,175,000)	(2,936,000)
Interest expense - occupancy tax	0	(328,000)	0	(328,000)
Loss on extinguishment of debt	0	(3,910,000)	0	(3,910,000)
Loss on disposal of assets	(51,000)	(1,092,000)	(51,000)	(1,092,000)
Other real estate income			458,000	0
Gain on sale of real estate	1,742,000	0	1,742,000	0
Depreciation and amortization expense	(1,232,000)	(1,284,000)	(2,458,000)	(2,468,000)
Gain(Loss) from investments	(1,456,000)	688,000	(3,443,000)	385,000
Income tax benefit	17,000	2,477,000	258,000	2,017,000
Net income (loss)	(608,000)	(9,168,000)	(1,512,000)	(7,476,000)
Total assets	146,650,000	166,698,000	146,650,000	166,698,000	165,460,000
Hotel Operations [Member]
Segment Reporting Information [Line Items]
Revenues	14,044,000	12,274,000	28,874,000	25,579,000
Segment operating expenses	(12,033,000)	(17,872,000)	(23,871,000)	(27,404,000)
Segment income (loss) from operations	2,011,000	(5,598,000)	5,003,000	(1,825,000)
Interest expense - mortgage	(1,769,000)	(767,000)	(3,665,000)	(1,402,000)
Interest expense - occupancy tax		(328,000)		(328,000)
Loss on extinguishment of debt		(3,910,000)		(3,910,000)
Loss on disposal of assets	(51,000)	(1,092,000)	(51,000)	(1,092,000)
Other real estate income			0
Gain on sale of real estate	0		0
Depreciation and amortization expense	(714,000)	(747,000)	(1,405,000)	(1,396,000)
Gain(Loss) from investments	0	0	0	0
Income tax benefit	0	0	0	0
Net income (loss)	(523,000)	(12,442,000)	(118,000)	(9,953,000)
Total assets	51,234,000	68,141,000	51,234,000	68,141,000
Real Estate Operations [Member]
Segment Reporting Information [Line Items]
Revenues	4,030,000	4,158,000	8,227,000	8,236,000
Segment operating expenses	(2,192,000)	(2,266,000)	(4,332,000)	(4,544,000)
Segment income (loss) from operations	1,838,000	1,892,000	3,895,000	3,692,000
Interest expense - mortgage	(748,000)	(762,000)	(1,510,000)	(1,534,000)
Interest expense - occupancy tax		0		0
Loss on extinguishment of debt		0		0
Loss on disposal of assets	0	0	0	0
Other real estate income			458,000
Gain on sale of real estate	1,742,000		1,742,000
Depreciation and amortization expense	(518,000)	(537,000)	(1,053,000)	(1,072,000)
Gain(Loss) from investments	0	0	0	0
Income tax benefit	0	0	0	0
Net income (loss)	2,314,000	593,000	3,532,000	1,086,000
Total assets	61,429,000	64,581,000	61,429,000	64,581,000
Investment Transactions [Member]
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Segment operating expenses	0	0	0	0
Segment income (loss) from operations	0	0	0	0
Interest expense - mortgage	0	0	0	0
Interest expense - occupancy tax		0		0
Loss on extinguishment of debt		0		0
Loss on disposal of assets	0	0	0	0
Other real estate income			0
Gain on sale of real estate	0		0
Depreciation and amortization expense	0	0	0	0
Gain(Loss) from investments	(1,456,000)	688,000	(3,443,000)	385,000
Income tax benefit	0	0	0	0
Net income (loss)	(1,456,000)	688,000	(3,443,000)	385,000
Total assets	27,737,000	28,373,000	27,737,000	28,373,000
Other [Member]
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Segment operating expenses	(960,000)	(484,000)	(1,741,000)	(1,011,000)
Segment income (loss) from operations	(960,000)	(484,000)	(1,741,000)	(1,011,000)
Interest expense - mortgage	0	0	0	0
Interest expense - occupancy tax		0		0
Loss on extinguishment of debt		0		0
Loss on disposal of assets	0	0	0	0
Other real estate income			0
Gain on sale of real estate	0		0
Depreciation and amortization expense	0	0	0	0
Gain(Loss) from investments	0	0	0	0
Income tax benefit	17,000	2,477,000	258,000	2,017,000
Net income (loss)	(943,000)	1,993,000	(1,483,000)	1,006,000
Total assets	$ 6,250,000	$ 5,603,000	$ 6,250,000	$ 5,603,000

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	6 Months Ended
	Dec. 31, 2014
Basis Of Presentation And Significant Accounting Policies [Line Items]
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest	93.00%
Santa Fe [Member]
Basis Of Presentation And Significant Accounting Policies [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	85.10%
Percentage Of Voting Shares In Common Stock	4.00%
Portsmouth [Member]
Basis Of Presentation And Significant Accounting Policies [Line Items]
Equity Method Investment, Ownership Percentage	68.80%
Noncontrolling Interest, Ownership Percentage by Parent	13.10%

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RELATED PARTY TRANSACTIONS (Details Textual) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended	0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014	Jul. 02, 2014
Related Party Transaction [Line Items]
Management Fees Revenue	$ 140,000	$ 108,000	$ 281,000	$ 220,000
Payments to Acquire Limited Partnership Interests					1,550,000
Management Fee Payable	1,250,000		1,250,000
InterGroup [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount						$ 4,250,000
Debt Instrument, Interest Rate, Stated Percentage						12.00%
Debt Instrument, Term						2 years
Debt Instrument Fee Percent						3.00%

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INVESTMENT IN REAL ESTATE AND MORTGAGE AND OTHER NOTES PAYABLE (Details) (USD $)	Dec. 31, 2014	Jun. 30, 2014
Property, Plant and Equipment [Line Items]
Investment in real estate, net	$ 61,429,000	$ 63,697,000
Apartment Building [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation	(36,194,000)	(36,123,000)
Investment in real estate, net	61,429,000	63,697,000
Apartment Building [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Cost	24,741,000	25,781,000
Apartment Building [Member] | Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	$ 72,882,000	$ 74,039,000

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INVESTMENT IN HOTEL, NET (Hotel [Member])

6 Months Ended

Dec. 31, 2014

Hotel [Member]

Real Estate Properties [Line Items]

Real Estate Disclosure [Text Block]

NOTE 2 – INVESTMENT IN HOTEL, NET

Investment in hotel consisted of the following as of:

			Accumulated		Net Book
December 31, 2014	Cost		Depreciation		Value
Land	$	2,738,000	$	-	$	2,738,000
Furniture and equipment		25,359,000		(20,850,000)		4,509,000
Building and improvements		60,571,000		(24,556,000)		36,015,000
	$	88,668,000	$	(45,406,000)	$	43,262,000

			Accumulated		Net Book
June 30, 2014	Cost		Depreciation		Value
Land	$	2,738,000	$	-	$	2,738,000
Furniture and equipment		23,306,000		(20,072,000)		3,234,000
Building and improvements		59,828,000		(23,903,000)		35,925,000
	$	85,872,000	$	(43,975,000)	$	41,897,000

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Dec. 31, 2014	Jun. 30, 2014
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000	100,000
Preferred stock , shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	4,000,000	4,000,000
Common stock, shares issued	3,387,972	3,383,364
Common stock, shares outstanding	2,383,105	2,381,638
Treasury stock, shares	1,004,867	1,001,726

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INVESTMENT IN MARKETABLE SECURITIES (Tables)

6 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Marketable Securities [Table Text Block]

Trading securities are summarized as follows:

			Gross		Gross		Net		Fair
Investment	Cost		Unrealized Gain		Unrealized Loss		Unrealized Gain (Loss)		Value
As of December 31, 2014
Corporate
Equities	$	14,016,000	$	651,000	$	(2,741,000)	$	(2,090,000)	$	11,926,000
As of June 30, 2014
Corporate
Equities	$	10,369,000	$	2,717,000	$	(1,666,000)	$	1,051,000	$	11,420,000

Gain (Loss) on Investments [Table Text Block]

Below is the composition of the two components for the respective periods:

For the three months ended December 31,	2014		2013
Realized (loss) gain on marketable securities	$	(83,000)	$	410,000
Unrealized (loss) gain on marketable securities		(1,461,000)		205,000
Net (loss) gain on marketable securities	$	(1,544,000)	$	615,000

For the six months ended December 31,	2014		2013
Realized gain on marketable securities	$	72,000	$	138,000
Unrealized (loss) gain on marketable securities		(3,106,000)		630,000
Net (loss) gain on marketable securities	$	(3,034,000)	$	768,000

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Document And Entity Information	6 Months Ended
	Dec. 31, 2014	Jan. 30, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Entity Registrant Name	INTERGROUP CORP
Entity Central Index Key	0000069422
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	INTG
Entity Common Stock, Shares Outstanding		2,383,105

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OTHER INVESTMENTS, NET (Tables)

6 Months Ended

Dec. 31, 2014

Other Investments [Abstract]

Schedule Of Other Investments [Table Text Block]

Other investments, net consist of the following:

Type	December 31, 2014		June 30, 2014
Preferred stock - Comstock, at cost	$	13,231,000	$	13,231,000
Private equity hedge fund, at cost		1,650,000		1,650,000
Corporate debt and equity instruments, at cost		269,000		269,000
Other preferred stock, at cost		480,000		480,000
Warrants - at fair value		181,000		207,000
	$	15,811,000	$	15,837,000

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Hotel	$ 14,044,000	$ 12,274,000	$ 28,874,000	$ 25,579,000
Real estate	4,030,000	4,158,000	8,227,000	8,236,000
Total revenues	18,074,000	16,432,000	37,101,000	33,815,000
Costs and operating expenses:
Hotel operating expenses	(12,033,000)	(9,493,000)	(23,871,000)	(19,025,000)
Hotel restructuring costs	0	(7,295,000)	0	(7,295,000)
Hotel occupancy tax - penalty fees	0	(1,084,000)	0	(1,084,000)
Real estate operating expenses	(2,192,000)	(2,266,000)	(4,332,000)	(4,544,000)
Depreciation and amortization expense	(1,232,000)	(1,284,000)	(2,458,000)	(2,468,000)
General and administrative expense	(960,000)	(484,000)	(1,741,000)	(1,011,000)
Total costs and operating expenses	(16,417,000)	(21,906,000)	(32,402,000)	(35,427,000)
Income (loss) from operations	1,657,000	(5,474,000)	4,699,000	(1,612,000)
Other income (expense):
Interest expense - mortgages	(2,517,000)	(1,529,000)	(5,175,000)	(2,936,000)
Interest expense - occupancy tax	0	(328,000)	0	(328,000)
Loss on extinguishment of debt	0	(3,910,000)	0	(3,910,000)
Loss on disposal of assets	(51,000)	(1,092,000)	(51,000)	(1,092,000)
Gain on sale of real estate	1,742,000	0	1,742,000	0
Other real estate income			458,000	0
Net (loss) gain on marketable securities	(1,544,000)	615,000	(3,034,000)	768,000
Net unrealized gain (loss) on other investments	16,000	(6,000)	(26,000)	(6,000)
Dividend and interest income	503,000	501,000	517,000	515,000
Trading and margin interest expense	(431,000)	(422,000)	(900,000)	(892,000)
Other expense, net	(2,282,000)	(6,171,000)	(6,469,000)	(7,881,000)
Loss before income taxes	(625,000)	(11,645,000)	(1,770,000)	(9,493,000)
Income tax benefit	17,000	2,477,000	258,000	2,017,000
Net loss	(608,000)	(9,168,000)	(1,512,000)	(7,476,000)
Less: Net loss attributable to the noncontrolling interest	319,000	3,697,000	460,000	2,287,000
Net loss attributable to InterGroup	$ (289,000)	$ (5,471,000)	$ (1,052,000)	$ (5,189,000)
Net loss per share
Basic and diluted (in dollars per share)	$ (0.25)	$ (3.87)	$ (0.63)	$ (3.16)
Net loss per share attributable to InterGroup
Basic and diluted (in dollars per share)	$ (0.12)	$ (2.31)	$ (0.44)	$ (2.19)
Weighted average number of basic and diluted common shares outstanding (in shares)	2,385,955	2,367,855	2,386,051	2,367,812

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STOCK BASED COMPENSATION PLANS

6 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 7 – STOCK BASED COMPENSATION PLANS

The Company follows Accounting Standard Codification (ASC) Topic 718 “Compensation – Stock Compensation”, which addresses accounting for equity-based compensation arrangements, including employee stock options and restricted stock units. 

Please refer to Note 16 – Stock Based Compensation Plans in the Company's Form 10-K for the year ended June 30, 2014 for more detail information on the Company’s stock-based compensation plans.

During the three months ended December 31, 2014 and 2013, the Company recorded stock option compensation cost of $227,000 and $52,000, respectively, related to stock options that were previously issued. During the six months ended December 31, 2014 and 2013, the Company recorded stock option compensation cost of $464,000 and $103,000, respectively, related to stock options that were previously issued. As of December 31, 2014, there was a total of $1,013,000 of unamortized compensation related to stock options which is expected to be recognized over the weighted-average period of 4 years.

Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history. The Company has selected to use the simplified method for estimating the expected term. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future.

The following table summarizes the stock options activity from June 30, 2013 through December 31, 2014:

		Number of		Weighted Average		Weighted Average	Aggregate
		Shares		Exercise Price		Remaining Life	Intrinsic Value
Oustanding at	July 1, 2013		222,000	$	14.98	6.89 years	$	1,353,000
Granted			160,000		18.96
Exercised			(15,000)		11.75
Forfeited			-		-
Exchanged			-		-
Oustanding at	June 30, 2014		367,000	$	16.85	7.71 years	$	953,000
Exercisable at	June 30, 2014		92,000	$	11.30	5.10 years	$	717,000
Vested and Expected to vest at	June 30, 2014		367,000	$	16.85	7.71 years	$	953,000
Oustanding at	July 1, 2014		367,000	$	16.85	7.71 years	$	731,000
Granted			-		-
Exercised			-		-
Forfeited			-		-
Exchanged			-		-
Oustanding at	December 31, 2014		367,000	$	16.85	7.20 years	$	731,000
Exercisable at	December 31, 2014		92,000	$	13.00	5.29 years	$	585,000
Vested and Expected to vest at	December 31, 2014		367,000	$	16.85	7.20 years	$	731,000

On July 1 of every year, as part of the Stock Compensation Plan for Non-employee Directors, each non-employee director received an automatic grant of a number of shares of Company’s Common Stock equal in value to $22,000 ($88,000 total recorded as stock compensation expense for the six months ended December 31, 2014 and 2013) based on 100% of the fair market value of the Company’s stock on the day of grant. During the six months ended December 31, 2014 and 2013, the four non-employee directors of the Company received a total grant of 4,608 and 4,192 shares of common stock.

As of December 31, 2014, there were no restricted stock units (RSUs) outstanding.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE 6 - FAIR VALUE MEASUREMENTS

The carrying values of the Company’s financial instruments not required to be carried at fair value on a recurring basis approximate fair value due to their short maturities (i.e., accounts receivable, other assets, accounts payable and other liabilities, due to securities broker and obligations for securities sold) or the nature and terms of the obligation (i.e., other notes payable and mortgage notes payable).

The assets measured at fair value on a recurring basis are as follows:

As of December 31, 2014
Assets:	Level 1		Level 2		Level 3		Total
Other investments - warrants	$	-	$	-	$	181,000	$	181,000
Investment in marketable securities:
Basic materials		4,830,000		-		-		4,830,000
Energy		2,906,000		-		-		2,906,000
Technology and telecommunications		1,202,000		-		-		1,202,000
REITs and real estate companies		964,000		-		-		964,000
Financial services		582,000		-		-		582,000
Other		1,442,000		-		-		1,442,000
		11,926,000		-		-		11,926,000
	$	11,926,000	$	-	$	181,000	$	12,107,000

As of June 30, 2014
Assets:	Level 1		Level 2		Level 3		Total
Other investments - warrants	$	-	$	-	$	207,000	$	207,000
Investment in marketable securities:
Basic materials		5,081,000		-		-		5,081,000
Technology		1,395,000		-		-		1,395,000
REITs and real estate companies		1,001,000		-		-		1,001,000
Financial services		820,000		-		-		820,000
Other		3,123,000		-		-		3,123,000
		11,420,000		-		-		11,420,000
	$	11,420,000	$	-	$	207,000	$	11,627,000

The fair values of investments in marketable securities are determined by the most recently traded price of each security at the balance sheet date. The fair value of the warrants was determined based upon a Black-Scholes option valuation model.

Financial assets that are measured at fair value on a non-recurring basis and are not included in the tables above include “Other investments in non-marketable securities,” that were initially measured at cost and have been written down to fair value as a result of impairment or adjusted to record the fair value of new instruments received (i.e., preferred shares) in exchange for old instruments (i.e., debt instruments). The following table shows the fair value hierarchy for these assets measured at fair value on a non-recurring basis as follows:

									Net gain for the six months
Assets	Level 1		Level 2		Level 3		December 31, 2014		ended December 31, 2014
Other non-marketable investments	$	-	$	-	$	15,630,000	$	15,630,000	$	-

									Net gain for the six months
Assets	Level 1		Level 2		Level 3		June 30, 2014		ended December 31, 2013
Other non-marketable investments	$	-	$	-	$	15,630,000	$	15,630,000	$	-

Other investments in non-marketable securities are carried at cost net of any impairment loss. The Company has no significant influence or control over the entities that issue these investments and holds less than 20% ownership in each of the investments. These investments are reviewed on a periodic basis for other-than-temporary impairment. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: (i) the length of time an investment is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near term prospects of the issuer and (iv) our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value.

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INVESTMENT IN HOTEL, NET (Details) (USD $)	Dec. 31, 2014	Jun. 30, 2014
Property, Plant and Equipment [Line Items]
Net Book Value	$ 43,262,000	$ 41,897,000
Hotel [Member]
Property, Plant and Equipment [Line Items]
Cost	88,668,000	85,872,000
Accumulated Depreciation	(45,406,000)	(43,975,000)
Net Book Value	43,262,000	41,897,000
Land [Member] | Hotel [Member]
Property, Plant and Equipment [Line Items]
Cost	2,738,000	2,738,000
Accumulated Depreciation	0	0
Net Book Value	2,738,000	2,738,000
Furniture and equipment [Member] | Hotel [Member]
Property, Plant and Equipment [Line Items]
Cost	25,359,000	23,306,000
Accumulated Depreciation	(20,850,000)	(20,072,000)
Net Book Value	4,509,000	3,234,000
Building and improvements [Member] | Hotel [Member]
Property, Plant and Equipment [Line Items]
Cost	60,571,000	59,828,000
Accumulated Depreciation	(24,556,000)	(23,903,000)
Net Book Value	$ 36,015,000	$ 35,925,000

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The assets measured at fair value on a recurring basis are as follows:

As of December 31, 2014
Assets:	Level 1		Level 2		Level 3		Total
Other investments - warrants	$	-	$	-	$	181,000	$	181,000
Investment in marketable securities:
Basic materials		4,830,000		-		-		4,830,000
Energy		2,906,000		-		-		2,906,000
Technology and telecommunications		1,202,000		-		-		1,202,000
REITs and real estate companies		964,000		-		-		964,000
Financial services		582,000		-		-		582,000
Other		1,442,000		-		-		1,442,000
		11,926,000		-		-		11,926,000
	$	11,926,000	$	-	$	181,000	$	12,107,000

As of June 30, 2014
Assets:	Level 1		Level 2		Level 3		Total
Other investments - warrants	$	-	$	-	$	207,000	$	207,000
Investment in marketable securities:
Basic materials		5,081,000		-		-		5,081,000
Technology		1,395,000		-		-		1,395,000
REITs and real estate companies		1,001,000		-		-		1,001,000
Financial services		820,000		-		-		820,000
Other		3,123,000		-		-		3,123,000
		11,420,000		-		-		11,420,000
	$	11,420,000	$	-	$	207,000	$	11,627,000

Fair Value Measurements, Nonrecurring [Table Text Block]

The following table shows the fair value hierarchy for these assets measured at fair value on a non-recurring basis as follows:

									Net gain for the six months
Assets	Level 1		Level 2		Level 3		December 31, 2014		ended December 31, 2014
Other non-marketable investments	$	-	$	-	$	15,630,000	$	15,630,000	$	-

									Net gain for the six months
Assets	Level 1		Level 2		Level 3		June 30, 2014		ended December 31, 2013
Other non-marketable investments	$	-	$	-	$	15,630,000	$	15,630,000	$	-

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INVESTMENT IN HOTEL, NET (Tables) (Hotel [Member])

6 Months Ended

Dec. 31, 2014

Hotel [Member]

Real Estate Properties [Line Items]

Schedule of Real Estate Properties [Table Text Block]

Investment in hotel consisted of the following as of:

			Accumulated		Net Book
December 31, 2014	Cost		Depreciation		Value
Land	$	2,738,000	$	-	$	2,738,000
Furniture and equipment		25,359,000		(20,850,000)		4,509,000
Building and improvements		60,571,000		(24,556,000)		36,015,000
	$	88,668,000	$	(45,406,000)	$	43,262,000

			Accumulated		Net Book
June 30, 2014	Cost		Depreciation		Value
Land	$	2,738,000	$	-	$	2,738,000
Furniture and equipment		23,306,000		(20,072,000)		3,234,000
Building and improvements		59,828,000		(23,903,000)		35,925,000
	$	85,872,000	$	(43,975,000)	$	41,897,000

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SEGMENT INFORMATION

6 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 8 – SEGMENT INFORMATION

The Company operates in three reportable segments, the operation of the hotel (“Hotel Operations”), the operation of its multi-family residential properties (“Real Estate Operations”) and the investment of its cash in marketable securities and other investments (“Investment Transactions”). These three operating segments, as presented in the financial statements, reflect how management internally reviews each segment’s performance. Management also makes operational and strategic decisions based on this information.

Information below represents reported segments for the three and six months ended December 31, 2014 and 2013. Operating income (loss) from hotel operations consist of the operation of the hotel and operation of the garage. Operating income for rental properties consist of rental income. Operating income (loss) for investment transactions consist of net investment gain (loss) and dividend and interest income.

As of and for the three months	Hotel		Real Estate		Investment
ended December 31, 2014	Operations		Operations		Transactions		Other		Total
Revenues	$	14,044,000	$	4,030,000	$	-	$	-	$	18,074,000
Segment operating expenses		(12,033,000)		(2,192,000)		-		(960,000)		(15,185,000)
Segment income (loss) from operations		2,011,000		1,838,000		-		(960,000)		2,889,000
Interest expense - mortgage		(1,769,000)		(748,000)		-		-		(2,517,000)
Loss on disposal of assets		(51,000)		-		-		-		(51,000)
Gain on sale of real estate		-		1,742,000		-		-		1,742,000
Depreciation and amortization expense		(714,000)		(518,000)		-		-		(1,232,000)
Loss from investments		-		-		(1,456,000)		-		(1,456,000)
Income tax benefit		-		-		-		17,000		17,000
Net income (loss)	$	(523,000)	$	2,314,000	$	(1,456,000)	$	(943,000)	$	(608,000)
Total assets	$	51,234,000	$	61,429,000	$	27,737,000	$	6,250,000	$	146,650,000

As of and for the three months	Hotel		Real Estate		Investment
ended December 31, 2013	Operations		Operations		Transactions		Other		Total
Revenues	$	12,274,000	$	4,158,000	$	-	$	-	$	16,432,000
Segment operating expenses		(17,872,000)		(2,266,000)		-		(484,000)		(20,622,000)
Segment income (loss) from operations		(5,598,000)		1,892,000		-		(484,000)		(4,190,000)
Interest expense - mortgage		(767,000)		(762,000)		-		-		(1,529,000)
Interest expense - occupancy tax		(328,000)		-		-		-		(328,000)
Loss on extinguishment of debt		(3,910,000)		-		-		-		(3,910,000)
Loss on disposal of assets		(1,092,000)		-		-		-		(1,092,000)
Depreciation and amortization expense		(747,000)		(537,000)		-		-		(1,284,000)
Gain from investments		-		-		688,000		-		688,000
Income tax benefit		-		-		-		2,477,000		2,477,000
Net income (loss)	$	(12,442,000)	$	593,000	$	688,000	$	1,993,000	$	(9,168,000)
Total assets	$	68,141,000	$	64,581,000	$	28,373,000	$	5,603,000	$	166,698,000

As of and for the six months	Hotel		Real Estate		Investment
ended December 31, 2014	Operations		Operations		Transactions		Other		Total
Revenues	$	28,874,000	$	8,227,000	$	-	$	-	$	37,101,000
Segment operating expenses		(23,871,000)		(4,332,000)		-		(1,741,000)		(29,944,000)
Segment income (loss) from operations		5,003,000		3,895,000		-		(1,741,000)		7,157,000
Interest expense - mortgage		(3,665,000)		(1,510,000)		-		-		(5,175,000)
Loss on disposal of assets		(51,000)		-		-		-		(51,000)
Gain on sale of real estate		-		1,742,000		-		-		1,742,000
Other real estate income		-		458,000		-		-		458,000
Depreciation and amortization expense		(1,405,000)		(1,053,000)		-		-		(2,458,000)
Loss from investments		-		-		(3,443,000)		-		(3,443,000)
Income tax benefit		-		-		-		258,000		258,000
Net income (loss)	$	(118,000)	$	3,532,000	$	(3,443,000)	$	(1,483,000)	$	(1,512,000)
Total assets	$	51,234,000	$	61,429,000	$	27,737,000	$	6,250,000	$	146,650,000

As of and for the six months	Hotel		Real Estate		Investment
ended December 31, 2013	Operations		Operations		Transactions		Other		Total
Revenues	$	25,579,000	$	8,236,000	$	-	$	-	$	33,815,000
Segment operating expenses		(27,404,000)		(4,544,000)		-		(1,011,000)		(32,959,000)
Segment income (loss) from operations		(1,825,000)		3,692,000		-		(1,011,000)		856,000
Interest expense - mortgage		(1,402,000)		(1,534,000)		-		-		(2,936,000)
Interest expense - occupancy tax		(328,000)		-		-		-		(328,000)
Loss on extinguishment of debt		(3,910,000)		-		-		-		(3,910,000)
Loss on disposal of assets		(1,092,000)		-		-		-		(1,092,000)
Depreciation and amortization expense		(1,396,000)		(1,072,000)		-		-		(2,468,000)
Gain from investments		-		-		385,000		-		385,000
Income tax benefit		-		-		-		2,017,000		2,017,000
Net income (loss)	$	(9,953,000)	$	1,086,000	$	385,000	$	1,006,000	$	(7,476,000)
Total assets	$	68,141,000	$	64,581,000	$	28,373,000	$	5,603,000	$	166,698,000

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RELATED PARTY TRANSACTIONS

6 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 9 – RELATED PARTY TRANSACTIONS

On July 2, 2014, the Partnership obtained from the InterGroup Corporation (parent company of Portsmouth) an unsecured loan in the principal amount of $4,250,000 at 12% per year fixed interest, with a term of 2 years, payable interest only each month. InterGroup received a 3% loan fee. The loan may be prepaid at any time without penalty. The proceeds of the loan were applied to the July 2014 payments to Holdings described in Note 20 of the Company’s consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014. The loan was eliminated in consolidation.

During the three months ended December 31, 2014 and 2013, the Company received management fees from Justice Investors totaling $140,000 and $108,000, respectively. During the six months ended December 31, 2014 and 2013, the Company received management fees from Justice Investors totaling $281,000 and $220,000, respectively.

These fees are eliminated in consolidation.

In connection with the redemption of limited partnership interests of Justice Investors, Limited Partnership (which took place during fiscal year ended June 30, 2014), Justice Operating Company, LLC agreed to pay a total of $1,550,000 in fees to certain officers and directors of the Company for services rendered in connection with the redemption of partnership interests, refinancing of Justice’s properties and reorganization of Justice Investors. This agreement was superseded by a letter dated December 11, 2013 from Justice Investors, Limited Partnership, in which Justice Investors Limited Partnership assumed the payment obligations of Justice Operating Company, LLC. The first payment under this agreement was made concurrently with the closing of the loan agreements, with the remaining payments due upon Justice Investor’s having adequate available cash as described in the letter. As of December 31, 2014, $1,250,000 of these fees remains payable.

Four of the Portsmouth directors serve as directors of Intergroup. Three of those directors also serve as directors of Santa Fe. The three Santa Fe directors also serve as directors of InterGroup.

John V. Winfield serves as Chief Executive Officer and Chairman of the Company, Portsmouth and Santa Fe. Depending on certain market conditions and various risk factors, the Chief Executive Officer, his family, Portsmouth and Santa Fe may, at times, invest in the same companies in which the Company invests. The Company encourages such investments because it places personal resources of the Chief Executive Officer and his family members, and the resources of Portsmouth and Santa Fe, at risk in connection with investment decisions made on behalf of the Company.

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INVESTMENT IN REAL ESTATE AND MORTGAGE AND OTHER NOTES PAYABLE (Tables) (Apartment Building [Member])

6 Months Ended

Dec. 31, 2014

Apartment Building [Member]

Real Estate Properties [Line Items]

Schedule of Real Estate Properties [Table Text Block]

Investment in real estate consisted of the following:

As of	December 31, 2014		June 30, 2014
Land	$	24,741,000	$	25,781,000
Buildings, improvements and equipment		72,882,000		74,039,000
Accumulated depreciation		(36,194,000)		(36,123,000)
Investment in real estate, net	$	61,429,000	$	63,697,000

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STOCK BASED COMPENSATION PLANS (Details Textual) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2013
Stock Based Compensation [Line Items]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	$ 227,000	$ 52,000	$ 464,000	$ 103,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total	1,013,000		1,013,000
Share-Based Compensation Arrangement By Share-Based Payment Award Award Vesting Period 1			4 years
Share-based Compensation, Total			552,000	191,000
Non Employee Directors [Member]
Stock Based Compensation [Line Items]
Stock Issued During Period, Value, Share-based Compensation, Gross			22,000
Share Based Compensation By Share Based Payment Award Fair Market Value, Percentage			100.00%
Share-based Compensation, Total			$ 88,000	$ 88,000	$ 88,000
Non Employee Directors [Member] | Common Stock [Member]
Stock Based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	4,608	4,192	4,608	4,192

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SEGMENT INFORMATION (Tables)

6 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Information below represents reported segments for the three and six months ended December 31, 2014 and 2013. Operating income (loss) from hotel operations consist of the operation of the hotel and operation of the garage. Operating income for rental properties consist of rental income. Operating income (loss) for investment transactions consist of net investment gain (loss) and dividend and interest income.

As of and for the three months	Hotel		Real Estate		Investment
ended December 31, 2014	Operations		Operations		Transactions		Other		Total
Revenues	$	14,044,000	$	4,030,000	$	-	$	-	$	18,074,000
Segment operating expenses		(12,033,000)		(2,192,000)		-		(960,000)		(15,185,000)
Segment income (loss) from operations		2,011,000		1,838,000		-		(960,000)		2,889,000
Interest expense - mortgage		(1,769,000)		(748,000)		-		-		(2,517,000)
Loss on disposal of assets		(51,000)		-		-		-		(51,000)
Gain on sale of real estate		-		1,742,000		-		-		1,742,000
Depreciation and amortization expense		(714,000)		(518,000)		-		-		(1,232,000)
Loss from investments		-		-		(1,456,000)		-		(1,456,000)
Income tax benefit		-		-		-		17,000		17,000
Net income (loss)	$	(523,000)	$	2,314,000	$	(1,456,000)	$	(943,000)	$	(608,000)
Total assets	$	51,234,000	$	61,429,000	$	27,737,000	$	6,250,000	$	146,650,000

As of and for the three months	Hotel		Real Estate		Investment
ended December 31, 2013	Operations		Operations		Transactions		Other		Total
Revenues	$	12,274,000	$	4,158,000	$	-	$	-	$	16,432,000
Segment operating expenses		(17,872,000)		(2,266,000)		-		(484,000)		(20,622,000)
Segment income (loss) from operations		(5,598,000)		1,892,000		-		(484,000)		(4,190,000)
Interest expense - mortgage		(767,000)		(762,000)		-		-		(1,529,000)
Interest expense - occupancy tax		(328,000)		-		-		-		(328,000)
Loss on extinguishment of debt		(3,910,000)		-		-		-		(3,910,000)
Loss on disposal of assets		(1,092,000)		-		-		-		(1,092,000)
Depreciation and amortization expense		(747,000)		(537,000)		-		-		(1,284,000)
Gain from investments		-		-		688,000		-		688,000
Income tax benefit		-		-		-		2,477,000		2,477,000
Net income (loss)	$	(12,442,000)	$	593,000	$	688,000	$	1,993,000	$	(9,168,000)
Total assets	$	68,141,000	$	64,581,000	$	28,373,000	$	5,603,000	$	166,698,000

As of and for the six months	Hotel		Real Estate		Investment
ended December 31, 2014	Operations		Operations		Transactions		Other		Total
Revenues	$	28,874,000	$	8,227,000	$	-	$	-	$	37,101,000
Segment operating expenses		(23,871,000)		(4,332,000)		-		(1,741,000)		(29,944,000)
Segment income (loss) from operations		5,003,000		3,895,000		-		(1,741,000)		7,157,000
Interest expense - mortgage		(3,665,000)		(1,510,000)		-		-		(5,175,000)
Loss on disposal of assets		(51,000)		-		-		-		(51,000)
Gain on sale of real estate		-		1,742,000		-		-		1,742,000
Other real estate income		-		458,000		-		-		458,000
Depreciation and amortization expense		(1,405,000)		(1,053,000)		-		-		(2,458,000)
Loss from investments		-		-		(3,443,000)		-		(3,443,000)
Income tax benefit		-		-		-		258,000		258,000
Net income (loss)	$	(118,000)	$	3,532,000	$	(3,443,000)	$	(1,483,000)	$	(1,512,000)
Total assets	$	51,234,000	$	61,429,000	$	27,737,000	$	6,250,000	$	146,650,000

As of and for the six months	Hotel		Real Estate		Investment
ended December 31, 2013	Operations		Operations		Transactions		Other		Total
Revenues	$	25,579,000	$	8,236,000	$	-	$	-	$	33,815,000
Segment operating expenses		(27,404,000)		(4,544,000)		-		(1,011,000)		(32,959,000)
Segment income (loss) from operations		(1,825,000)		3,692,000		-		(1,011,000)		856,000
Interest expense - mortgage		(1,402,000)		(1,534,000)		-		-		(2,936,000)
Interest expense - occupancy tax		(328,000)		-		-		-		(328,000)
Loss on extinguishment of debt		(3,910,000)		-		-		-		(3,910,000)
Loss on disposal of assets		(1,092,000)		-		-		-		(1,092,000)
Depreciation and amortization expense		(1,396,000)		(1,072,000)		-		-		(2,468,000)
Gain from investments		-		-		385,000		-		385,000
Income tax benefit		-		-		-		2,017,000		2,017,000
Net income (loss)	$	(9,953,000)	$	1,086,000	$	385,000	$	1,006,000	$	(7,476,000)
Total assets	$	68,141,000	$	64,581,000	$	28,373,000	$	5,603,000	$	166,698,000

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INVESTMENT IN MARKETABLE SECURITIES (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
Gross Unrealized Gain	$ (1,461,000)	$ 205,000	$ (3,106,000)	$ 630,000
Net Unrealized Gain (Loss)			(3,106,000)	629,000
Fair Value	11,926,000		11,926,000		11,420,000
Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Cost	14,016,000		14,016,000		10,369,000
Gross Unrealized Gain			651,000		2,717,000
Gross Unrealized Loss			(2,741,000)		(1,666,000)
Net Unrealized Gain (Loss)			(2,090,000)		1,051,000
Fair Value	$ 11,926,000		$ 11,926,000		$ 11,420,000

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net loss	$ (1,512,000)	$ (7,476,000)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	2,458,000	2,468,000
Loss on extinguishment of debt	0	3,910,000
Loss on disposal of assets	51,000	1,092,000
Gain on sale of real estate	(1,742,000)	0
Gain on insurance recovery	0	(249,000)
Net unrealized loss (gain) on marketable securities	3,106,000	(629,000)
Unrealized loss on other investments	26,000	6,000
Stock compensation expense	552,000	191,000
Changes in assets and liabilities:
Investment in marketable securities	(3,612,000)	154,000
Other assets	12,000	(1,545,000)
Accounts payable and other liabilities	(3,765,000)	4,918,000
Due to securities broker	1,954,000	(345,000)
Obligations for securities sold	397,000	(208,000)
Deferred taxes	(258,000)	(2,017,000)
Net cash (used in) provided by operating activities	(2,333,000)	270,000
Cash flows from investing activities:
Net proceeds from sale of real estate	3,288,000	0
Investment in hotel	(2,916,000)	(1,592,000)
Investment in real estate	(331,000)	(142,000)
Investment in Santa Fe	(68,000)	0
Investment in Portsmouth	(33,000)	0
Net cash used in investing activities	(60,000)	(1,734,000)
Cash flows from financing activities:
Restricted cash - withdrawal of (payments to) mortgage impounds	360,000	(1,011,000)
Redemption payments	0	(64,152,000)
Borrowings from mortgage and other notes payable, net	426,000	68,969,000
Payments to mortgage and other notes payable	(1,889,000)	(865,000)
Purchase of treasury stock	(56,000)	(5,000)
Net cash (used in) provided by financing activities	(1,159,000)	2,936,000
Net (decrease) increase in cash and cash equivalents	(3,552,000)	1,472,000
Cash and cash equivalents at the beginning of the period	4,705,000	1,453,000
Cash and cash equivalents at the end of the period	1,153,000	2,925,000
Supplemental information:
Interest paid	$ 5,471,000	$ 3,622,000

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OTHER INVESTMENTS, NET

6 Months Ended

Dec. 31, 2014

Other Investments [Abstract]

Other Investments Disclosure [Text Block]

NOTE 5 – OTHER INVESTMENTS, NET

The Company may also invest, with the approval of the Securities Investment Committee and other Company guidelines, in private investment equity funds and other unlisted securities, such as convertible notes through private placements. Those investments in non-marketable securities are carried at cost on the Company’s balance sheet as part of other investments, net of other than temporary impairment losses. Other investments also include non-marketable warrants carried at fair value.

Other investments, net consist of the following:

Type	December 31, 2014		June 30, 2014
Preferred stock - Comstock, at cost	$	13,231,000	$	13,231,000
Private equity hedge fund, at cost		1,650,000		1,650,000
Corporate debt and equity instruments, at cost		269,000		269,000
Other preferred stock, at cost		480,000		480,000
Warrants - at fair value		181,000		207,000
	$	15,811,000	$	15,837,000

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INVESTMENT IN MARKETABLE SECURITIES (Details 1) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Schedule of Trading Securities and Other Trading Assets [Line Items]
Realized (loss) gain on marketable securities	$ (83,000)	$ 410,000	$ 72,000	$ 138,000
Unrealized (loss) gain on marketable securities	(1,461,000)	205,000	(3,106,000)	630,000
Net (loss) gain on marketable securities	$ (1,544,000)	$ 615,000	$ (3,034,000)	$ 768,000

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STOCK BASED COMPENSATION PLANS (Tables)

6 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes the stock options activity from June 30, 2013 through December 31, 2014:

		Number of		Weighted Average		Weighted Average	Aggregate
		Shares		Exercise Price		Remaining Life	Intrinsic Value
Oustanding at	July 1, 2013		222,000	$	14.98	6.89 years	$	1,353,000
Granted			160,000		18.96
Exercised			(15,000)		11.75
Forfeited			-		-
Exchanged			-		-
Oustanding at	June 30, 2014		367,000	$	16.85	7.71 years	$	953,000
Exercisable at	June 30, 2014		92,000	$	11.30	5.10 years	$	717,000
Vested and Expected to vest at	June 30, 2014		367,000	$	16.85	7.71 years	$	953,000
Oustanding at	July 1, 2014		367,000	$	16.85	7.71 years	$	731,000
Granted			-		-
Exercised			-		-
Forfeited			-		-
Exchanged			-		-
Oustanding at	December 31, 2014		367,000	$	16.85	7.20 years	$	731,000
Exercisable at	December 31, 2014		92,000	$	13.00	5.29 years	$	585,000
Vested and Expected to vest at	December 31, 2014		367,000	$	16.85	7.20 years	$	731,000