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New England Realty Associates Partnership(NEN) - 2023 Q3 - Quarterly Report
NENNew England Realty Associates Partnership(NEN)2023-11-09 16:30

Financial Performance - Net income for the nine months ended September 30, 2023, was 6,154,568,comparedto6,154,568, compared to 1,580,625 for the same period in 2022, representing a 289.5% increase[21]. - Comprehensive income for Q3 2023 was 2,438,458,comparedto2,438,458, compared to 995,224 in Q3 2022, reflecting a 144.5% increase[21]. - Net income for the three months ended September 30, 2023, was approximately 2,175,000,anincreaseofapproximately2,175,000, an increase of approximately 1,180,000 (118.6%) compared to the same period in 2022[196]. - Net income for the nine months ended September 30, 2023, was approximately 6,154,000,anincreaseofapproximately6,154,000, an increase of approximately 4,574,000 (289.4%) compared to the same period in 2022[208]. - The Partnership's share of net income from Investment Properties for the nine months ended September 30, 2023, was approximately 496,000,anincreaseofapproximately496,000, an increase of approximately 292,000 (143.3%) compared to the same period in 2022[204]. Revenue and Income Sources - Rental income for Q3 2023 was 18,804,320,anincreaseof10.818,804,320, an increase of 10.8% from 16,974,515 in Q3 2022[17]. - For the nine months ended September 30, 2023, total revenues reached 18.874million,primarilydrivenbyrentalincomeof18.874 million, primarily driven by rental income of 12.088 million[133]. - Rental income for the nine months ended September 30, 2023, was approximately 54,338,000,anincreaseofapproximately54,338,000, an increase of approximately 4,078,000 (8.1%) compared to the same period in 2022[199]. - Approximately 94% of rental income during the nine months ended September 30, 2023, was derived from residential properties, with the remaining 6% from commercial properties, which have a minimum future annual rental income of 21,297,432[95].AssetsandLiabilities−Totalassetsdecreasedto21,297,432[95]. Assets and Liabilities - Total assets decreased to 386,158,244 as of September 30, 2023, from 391,820,280attheendof2022,adeclineof1.7391,820,280 at the end of 2022, a decline of 1.7%[15]. - Total liabilities remained relatively stable at 450,810,428, compared to 451,689,637attheendof2022[15].−ThePartnership′stotalliabilitiesasofSeptember30,2023,amountedto451,689,637 at the end of 2022[15]. - The Partnership's total liabilities as of September 30, 2023, amounted to 575,253,819, with a fair value of 492,640,130[105].−TotalfixedassetsasofSeptember30,2023amountedto492,640,130[105]. - Total fixed assets as of September 30, 2023 amounted to 443,479,786, with accumulated depreciation of 171,180,209,resultinginanetvalueof171,180,209, resulting in a net value of 272,299,577[61]. Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2023, were 16,300,141,upfrom16,300,141, up from 13,033,520 in the same period of 2022[26]. - The company invested 37,518,172inrentalpropertypurchasesduringtheninemonthsendedSeptember30,2023[26].−ThePartnershiphasbuiltcashreservesof37,518,172 in rental property purchases during the nine months ended September 30, 2023[26]. - The Partnership has built cash reserves of 85,407,000, currently invested in short-term US Treasury bills with interest rates between 4.8% and 5.4%[147]. - The Partnership purchased a mixed-use property in Boston for 27,500,000usingcashreserves,indicatingongoingmarketexpansionefforts[149].Expenses−OperatingexpensesfortheninemonthsendedSeptember30,2023,wereapproximately27,500,000 using cash reserves, indicating ongoing market expansion efforts[149]. Expenses - Operating expenses for the nine months ended September 30, 2023, were approximately 40,665,000, an increase of approximately 3,023,000(8.03,023,000 (8.0%) compared to the same period in 2022[200]. - Interest expense for the nine months ended September 30, 2023, was 5.363 million, impacting net income negatively[133]. - Administrative expenses for the nine months ended September 30, 2023, totaled 297,486,reflectingoperationalcosts[133].MarketandOccupancy−ThevacancyrateforresidentialpropertiesasofNovember1,2023,was0.9297,486, reflecting operational costs[133]. Market and Occupancy - The vacancy rate for residential properties as of November 1, 2023, was 0.9%, down from 1.8% a year earlier, indicating improved occupancy rates[150]. - Residential rental income accounted for 94% of total rents in both 2023 and 2022, while commercial rental income accounted for 6% in both years[185]. - Tenant renewals were approximately 72% with an average rental increase of approximately 6.4%, while new leases accounted for approximately 28% with rental rate increases of approximately 9.5% during the nine months ended September 30, 2023[160]. Stock and Distributions - Stock buybacks totaled 2,657,477 in the nine months ended September 30, 2023, compared to 5,167,667inthesameperiodof2022[26].−ThePartnershipapprovedaquarterlydistributionof5,167,667 in the same period of 2022[26]. - The Partnership approved a quarterly distribution of 12.00 per Unit (0.40perReceipt)forbothMayandAugust2023,withaspecialdistributionof0.40 per Receipt) for both May and August 2023, with a special distribution of 38.40 per Class A unit (1.28perReceipt)inJanuary2023[88].−AsofSeptember30,2023,thePartnershiphadrepurchasedatotalof1,517,690DepositaryReceiptsatanaveragepriceof1.28 per Receipt) in January 2023[88]. - As of September 30, 2023, the Partnership had repurchased a total of 1,517,690 Depositary Receipts at an average price of 30.96 per receipt, totaling approximately $53,153,000[91].