New England Realty Associates Partnership(NEN) - 2024 Q2 - Quarterly Report

Financial Performance - Net income for the six months ended June 30, 2024, was $7,536,322, representing a 89.1$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$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$39,551,000, an increase of approximately $4,018,000 (11.3$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].