Zacks Investment Research has recently initiated coverage of New England Realty Associates Limited Partnership (NEN) with a Neutral recommendation, citing a balanced mix of strategic strengths and identifiable headwinds for the Massachusetts-based real estate investment partnership.At the heart of the report is NERA’s transformative $175 million acquisition of Hill Estates, a deal that adds 396 residential units and complementary commercial properties in high-demand New England submarkets. Funded through a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 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 001-31568 New England Realty Associates Limited Partnership (Exact name of registrant as specified in its charter) ...

Ownership and Investments - As of February 1, 2025, the Partnership owned a 40-50% interest in 7 residential and mixed-use complexes, totaling 688 residential units and one commercial unit[19]. - The Partnership plans to invest approximately $30,837,000 in capital improvements for all properties in 2025, including $14,769,000 for a 72-unit apartment complex at Mill Street Development[33]. - The total investment for the Mill Street project is anticipated to be approximately $30 million, with an estimated completion date in the fourth quarter of 2025[34]. - The Partnership purchased a 52-unit mixed-use property for approximately $27,500,000 on July 14, 2023, funded from cash reserves[32]. Financial Performance and Distributions - In March 2025, the Partnership approved a quarterly distribution of $12.00 per Unit, with a special distribution of $96.00 per Class A unit, compared to $48.00 per Unit in 2024 and $84.00 per Unit in 2023[22]. Debt and Financing - As of December 31, 2024, the Partnership had approximately $581,437,000 in long-term debt, with variable rate debt of $10,000,000[229]. - The Partnership entered into a new $25,000,000 revolving line of credit on November 21, 2024, with a floating interest rate and various financial covenants[36]. - The Partnership's obligations under the Master Credit Facility Agreement are secured by mortgages on certain properties, with an initial advance of $156,000,000 at a fixed interest rate of 2.97%[27]. Property Improvements - The Partnership completed improvements to certain properties at a total cost of approximately $25,254,000 in 2024, including significant investments in multiple properties[33]. - The Partnership repurchased 1,550,358 Depositary Receipts at an average price of $31.82 per receipt, totaling approximately $56,090,000 from August 20, 2007, to December 31, 2024[25].

Core Points - New England Realty Associates Limited Partnership will make a quarterly distribution on March 31, 2025, to Class A Limited Partners and holders of Depositary Receipts [1] - The quarterly distribution amount is set at $12.00 per Class A Limited Partnership Unit and $0.40 per Depositary Receipt [1] - A special one-time distribution of $96.00 per Class A Unit and $3.20 per Depositary Receipt will also be provided [1] - Each Depositary Receipt represents one-thirtieth of a Class A Partnership Unit and is traded on The NYSE MKT under the symbol "NEN" [1]

Financial Performance - Rental income for the three months ended September 30, 2024, was $20,021,133, an increase of 6.5% from $18,804,320 in the same period of 2023[12]. - Net income for the nine months ended September 30, 2024, was $11,445,720, representing an increase of 86.9% compared to $6,154,568 for the same period in 2023[14]. - The company reported comprehensive income of $3,641,118 for the three months ended September 30, 2024, compared to $2,438,458 for the same period in 2023, indicating a growth of 49.0%[14]. - Net income for the three months ended September 30, 2024, was approximately $3,909,000, an increase of approximately $1,734,000 (79.7%) compared to $2,175,000 for the same period in 2023[164]. - Net income for the nine months ended September 30, 2024, was approximately $11,446,000, an increase of $5,291,000 (86.0%) compared to the same period in 2023[173]. Assets and Liabilities - Total assets as of September 30, 2024, were $387,356,540, up from $385,730,690 at the end of 2023, reflecting a growth of 0.4%[8]. - Total liabilities increased to $452,817,146 as of September 30, 2024, compared to $451,085,074 at the end of 2023, marking a rise of 0.4%[8]. - The Partnership's total fixed assets amounted to approximately $455,866,125 as of September 30, 2024, compared to $440,496,897 at December 31, 2023[54]. - The total liabilities as of September 30, 2024, were $579,166,028, with a fair value of $531,112,016[90]. - The total assets of the Partnership as of September 30, 2024, amount to $111,057,366, with rental properties valued at $101,018,798[109]. Cash Flow and Investments - Net cash provided by operating activities increased to $19,965,878 for the nine months ended September 30, 2024, from $13,231,030 in 2023, reflecting a growth of 51.3%[20]. - Cash and cash equivalents decreased to $15,069,693 as of September 30, 2024, from $18,230,463 at the end of 2023, a decline of 17.8%[8]. - The Partnership received distributions of approximately $3,972,500 from investment properties for the nine months ended September 30, 2024, compared to $3,033,500 for the same period in 2023[177]. - The Partnership has cash reserves of $86,134,000 invested in short-term US Treasury bills with interest rates between 4.48% and 5.27%[122]. - The Partnership's cash and cash equivalents decreased by $3,160,770 for the nine months ended September 30, 2024[175]. Debt and Financing - As of September 30, 2024, the total mortgage notes payable amounted to $406,847,000 after deducting unamortized deferred financing costs[66]. - The Partnership's line of credit was modified to extend until October 29, 2024, with a commitment amount of $25 million, restricted to $17 million during the modification period[68]. - The Partnership has approximately $582,234,000 in long-term debt, with most requiring fixed interest payments[193]. - The Partnership has variable rate debt of $10,000,000, with interest rates ranging from SOFR plus 170 basis points to SOFR plus 310 basis points[193]. - A 100 basis point change in market interest rates would result in an annual interest cost change of approximately $50,000 for the variable rate debt and a fair value change of approximately $21,970,000 for the fixed rate debt[193]. Property and Operations - The partnership owns 31 properties, including 22 residential buildings and 4 commercial buildings, totaling 2,943 apartment units and approximately 130,000 square feet of commercial space[22]. - The Partnership has a 40-50% interest in 7 additional residential and mixed-use properties, consisting of 688 apartment units and 12,500 square feet of commercial space[22]. - Approximately 94% of rental income during the nine months ended September 30, 2024, was derived from residential apartments and condominium units[80]. - The total minimum future rental income from commercial properties at September 30, 2024, was $22,272,894[80]. - The largest increases in rental income were from properties including 659 Worcester Road and Shawmut Place, with increases of $156,000 and $120,000 respectively[158]. Expenses and Cost Management - The company’s management fee expenses for the three months ended September 30, 2024, were $802,908, a slight decrease from $810,436 in the same period of 2023[12]. - Operating expenses for the three months ended September 30, 2024, were approximately $13,738,000, a decrease of approximately $324,000 (2.3%) compared to $14,062,000 for the same period in 2023[159]. - Administrative expenses for the nine months ended September 30, 2024, were $102,561, reflecting a strategic focus on cost management[111]. - Total expenses for the nine months ended September 30, 2024, were approximately $41,392,000, an increase of $727,000 (1.8%) compared to the same period in 2023[168]. - Interest expense for the three months ended September 30, 2024, was approximately $3,831,000, a decrease of approximately $125,000 (3.2%) compared to $3,956,000 for the same period in 2023[160]. Market and Risk Factors - The Partnership is exposed to market risks, particularly interest rate risk, which may affect its ability to make distributions to investors[192]. - The Partnership faces competition from similar properties, which may impact its ability to attract and retain tenants and could reduce rental income[1]. - Changes in income tax laws may affect the after-tax value of future distributions to owners of the Partnership[187]. - The Partnership's properties are subject to significant expenditures, including debt service payments, real estate taxes, insurance, and maintenance costs, which do not decrease with revenue reductions[1]. Management and Governance - The Partnership's management has evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[194]. - There were no material changes in the Management Company's internal control over financial reporting during the quarter ended September 30, 2024[195]. - The Partnership is not currently involved in any material legal proceedings beyond ordinary routine litigation[197].

Core Insights - BioMark Diagnostics has published a significant study on using metabolomics and machine learning to identify biomarkers for pulmonary neuroendocrine neoplasms (NENs), which could enhance early diagnosis and monitoring of this type of cancer [2][3]. Company Overview - BioMark Diagnostics Inc. is a leading developer of liquid biopsy tests aimed at early cancer detection, utilizing metabolomics and machine learning algorithms [9]. - The company's technology allows for a non-invasive method to detect NENs and has shown clinical utility in early detection of other difficult-to-detect cancers, such as lung cancer [4]. Research Findings - The study analyzed 153 metabolites from a cohort of 657 samples, including NEN patients, healthy controls, and individuals with non-small cell lung cancers (NSCLCs), revealing significant metabolic alterations associated with NENs [3]. - These findings contribute to the understanding of cancer metabolism and its clinical applications, potentially leading to new biomarkers for early detection and improved management of lung NENs [3]. Industry Context - Lung cancer is the leading cause of cancer deaths globally, with 20% of newly diagnosed lung cancers originating from the pulmonary neuroendocrine system [6]. - NENs are challenging due to their varied clinical features and aggressive nature, with carcinoid tumors having a 10-year survival rate of 58-83%, while neuroendocrine carcinomas have a much lower survival rate of 17% [6]. Liquid Biopsy Advantages - Liquid biopsy has gained traction as a diagnostic tool for pulmonary tumors due to its ease of access, quick turnaround time, and feasibility when tissue biopsies are not possible [8].

Financial Performance - Net income for the six months ended June 30, 2024, was $7,536,322, representing a 89.1% increase compared to $3,979,341 for the same period in 2023[11]. - Comprehensive income for the three months ended June 30, 2024, was $4,105,250, an increase of 71.5% from $2,392,606 in the same period last year[11]. - Net income for the six months ended June 30, 2024, was $7,536,322, compared to $3,979,341 for the same period in 2023, representing an increase of approximately 89%[16]. - Net cash provided by operating activities increased to $11,487,102 for the six months ended June 30, 2024, up from $6,499,216 in 2023, reflecting a growth of about 77%[16]. - For the six months ended June 30, 2024, total revenues were $13,407,619, with rental income contributing $13,280,729[95]. - Net income for the six months ended June 30, 2024, was approximately $7,536,000, an increase of approximately $3,557,000 (89.4%) compared to $3,979,000 in 2023[153]. Revenue and Income Sources - Rental income for the three months ended June 30, 2024, increased to $19,841,559, up 10.4% from $17,964,963 for the same period in 2023[9]. - Approximately 94% of rental income during the six months ended June 30, 2024, was derived from residential leases, with the remaining 6% from commercial properties[63]. - Rental income for the six months ended June 30, 2024, was approximately $39,551,000, an increase of approximately $4,018,000 (11.3%) compared to $35,533,000 in 2023[149]. - The minimum future rental income from commercial leases at June 30, 2024, is projected to be $21,927,620[63]. Assets and Liabilities - Total assets as of June 30, 2024, are $383,700,368, a decrease of 0.3% from $385,730,690 on December 31, 2023[6]. - Total liabilities as of June 30, 2024, were $450,688,131, a slight decrease from $451,085,074 on December 31, 2023[6]. - Total cash and cash equivalents were approximately $14,809,000 as of June 30, 2024, down from $18,711,000 at December 31, 2023[35]. - Total assets amounted to $113,292,995, with rental properties valued at $104,760,781, indicating strong asset growth[100]. - Total liabilities amount to $172,621,110, with mortgage notes payable at $165,905,350[94]. Cash Flow and Investments - Cash and cash equivalents decreased to $13,463,294 as of June 30, 2024, down 26.1% from $18,230,463 on December 31, 2023[6]. - Net cash used in investing activities was $(5,517,101) for the six months ended June 30, 2024, compared to a net cash provided of $9,379,938 in 2023, indicating a shift of approximately $14.9 million[16]. - The company invested $(83,635,733) in U.S. Treasury bills during the period, compared to $(68,355,526) in the same period last year, reflecting an increase of about 22%[16]. - Cash paid for interest during the six months ended June 30, 2024, was approximately $7,649,000, compared to $7,678,000 for the same period in 2023[66]. Debt and Financing - As of June 30, 2024, the Partnership's total debt outstanding is approximately $407,457,000 after accounting for unamortized deferred financing costs of $2,589,000[52]. - The Partnership's line of credit was modified on October 29, 2021, extending the commitment amount to $25 million, but restricted to $17 million during the modification period[55]. - The Partnership's long-term debt matures through 2035, indicating a long-term financial commitment[167]. - The primary market risk faced by the Partnership is interest rate risk, which could affect its ability to make distributions to investors[166]. Operational Metrics - The weighted average number of units outstanding for the three months ended June 30, 2024, was 117,139, compared to 118,764 for the same period in 2023[9]. - The occupancy rate for residential units improved to 98.55% in August 2024 from 98.2% in August 2023, while the commercial vacancy rate decreased to 1.00% from 1.3%[137]. - Tenant renewals accounted for approximately 71% with an average rental increase of 6.2%, while new leases made up 29% with increases of 6.7% during the first half of 2024[118]. Management and Governance - Management fees paid to The Hamilton Company were approximately $1,571,000 for the six months ended June 30, 2024, compared to $1,363,000 for the same period in 2023[44]. - Management has evaluated the effectiveness of the Partnership's disclosure controls and procedures, concluding they are effective[168]. - There were no changes in internal control over financial reporting that materially affected the Management Company's controls during the quarter ended June 30, 2024[169]. Market Conditions and Competition - The Partnership faces competition from similar properties, which may impact tenant attraction and rental rates[164]. - The Partnership anticipates that the Mill Street Development project will require approximately $30 million in spending over the next two years, with approximately $10 million to be spent in 2024[159].

Distribution Announcement - New England Realty Associates Limited Partnership will make a quarterly distribution on September 30, 2024 [1] - The distribution amount for Class A Limited Partnership Units is set at $12.00 per Unit [1] - The distribution for Depositary Receipts will be $0.40, with each Receipt representing one-thirtieth of a Class A Partnership Unit [1] Record Date - The record date for the distribution is September 13, 2024 [1] - Holders of Depositary Receipts and Class A Limited Partners as of this date will be eligible for the distribution [1] Trading Information - Depositary Receipts are listed on The NYSE MKT under the trading symbol "NEN" [1]

Financial Performance - Rental income for Q1 2024 increased to $19,710,432, up 12.2% from $17,568,727 in Q1 2023[18] - Net income for Q1 2024 was $3,463,596, representing a 97.3% increase compared to $1,754,375 in Q1 2023[20] - Comprehensive income for Q1 2024 was $3,605,630, compared to $1,588,488 in Q1 2023, reflecting a significant increase[20] - Net cash provided by operating activities for Q1 2024 was $6,123,747, compared to $1,665,543 in Q1 2023[27] - For the three months ended March 31, 2024, net income per Depositary Receipt was $0.98, up from $0.49 in the same period of 2023, representing a 100% increase[88] - Total distributions per Depositary Receipt increased to $2.00 in Q1 2024 from $1.60 in Q1 2023, marking a 25% increase[88] - The Partnership's share of net income from Investment Properties was approximately $441,000 for the three months ended March 31, 2024, an increase of approximately $213,000 (93.8%) from $228,000 in the same period last year[191] Cash and Liquidity - Cash and cash equivalents rose to $28,801,744 as of March 31, 2024, compared to $18,230,463 at the end of 2023, marking a 58% increase[15] - Cash provided by operating activities was $6,123,747 for the three months ended March 31, 2024, compared to $1,665,543 for the same period in 2023, indicating a significant improvement[194] - The Partnership's cash equivalents totaled $28,801,744 as of March 31, 2024, reflecting a stable liquidity position[102] - The Partnership's cash reserves have been adequate to fully fund property improvements, indicating strong liquidity management[195] Assets and Liabilities - Total assets decreased slightly to $381,191,994 from $385,730,690 at the end of 2023[15] - Total liabilities remained relatively stable at $450,233,094, down from $451,085,074 at the end of 2023[15] - As of March 31, 2024, the Partnership's total liabilities amounted to $573,997,996, with mortgage payables for Partnership properties at $408,060,293[102] - Total liabilities reached $172,028,058, with mortgage notes payable accounting for $165,937,703[126] - The Partnership's long-term debt as of March 31, 2024, amounted to approximately $577,068,000, with most requiring fixed interest payments[209] Property and Investments - New England Realty Associates Limited Partnership owns 31 properties, including 22 residential buildings and 4 commercial buildings, totaling 2,943 apartment units and approximately 130,000 square feet of commercial space[30] - The Partnership has a 40-50% interest in 7 additional residential and mixed-use properties, consisting of 688 apartment units and 12,500 square feet of commercial space[30] - The Partnership acquired a commercial retail property for approximately $10,151,000 on January 18, 2023, and a mixed-use property for approximately $27,500,000 on July 14, 2023[61][62] - The Partnership is constructing a 72-unit apartment building with total expected construction costs of approximately $30,000,000, anticipated to be completed in Q4 2025[63] - The Partnership has invested approximately $15,925,000 for a 40% interest in Hamilton Park Towers, a 409-unit residential complex, with a total purchase price of $129,500,000[115] - The Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex in Quincy, Massachusetts, with a purchase price of $23,750,000[119] Expenses and Costs - Operating expenses increased to approximately $14,141,000 for the three months ended March 31, 2024, up approximately $901,000 (6.8%) from $13,240,000 in 2023[187] - Advertising expenses increased to approximately $152,000 for the three months ended March 31, 2024, from approximately $109,000 in the same period in 2023, reflecting a year-over-year increase of about 39.5%[54] - The increase in renting expenses was approximately $196,000 (102.3%) due to tenant concessions related to construction disruptions[187] - The Partnership's total reimbursement to the Management Company for payroll and related expenses was approximately $1,100,000 for Q1 2024[68] Tenant and Rental Information - Approximately 94% of rental income for Q1 2024 was derived from residential apartments and condominium units, with 6% from commercial properties[93] - The minimum future rental income from commercial leases is projected to be $22,469,633, with significant contributions from Trader Joe's and Walgreen's, accounting for approximately 16% of total commercial rental income[93] - The vacancy rate for residential units decreased to 1.2% as of May 1, 2024, down from 2.1% a year earlier[182] - Average rent increases for renewals were 5.8% and for new leases were 5.4% during the first quarter of 2024, with expectations of continued rent growth for the remainder of the year[143] Distributions and Shareholder Returns - The Partnership approved a quarterly distribution of $12.00 per Unit and a special distribution of $48.00 per Class A unit, both payable on March 28, 2024[87] - The Partnership repurchased 2,858 Depositary Receipts at an average price of $70.69 per receipt during the three months ended March 31, 2024, totaling approximately $203,000[91] - From 2007 to March 31, 2024, the Partnership repurchased a total of 1,535,092 Depositary Receipts, with 2,858 purchased in the first quarter of 2024[149] Management and Governance - The Partnership's management has concluded that its disclosure controls and procedures were effective as of the end of the reporting period[210] - The Partnership has no legal obligation to fund operating deficits of its joint ventures, although it intends to fund its share of future operating deficits if necessary[32]

ALLSTON, Mass., May 9, 2024 /PRNewswire/ -- On June 28, 2024, New England Realty Associates Limited Partnership (NYSE MKT: NEN) will make its quarterly distribution to its Class A Limited Partners and holders of Depositary Receipts of record as of June 14, 2024.  The quarterly distribution per Class A Limited Partnership Unit will be $12.00 per Unit.  The quarterly distribution per Depositary Receipt will be $0.40.  Each Depositary Receipt represents a beneficial ownership of one-thirtieth of a Class A Part ...