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New England Realty Associates Partnership(NEN) - 2024 Q1 - Quarterly Report
NENNew England Realty Associates Partnership(NEN)2024-05-09 19:19

Financial Performance - Rental income for Q1 2024 increased to 19,710,432,up12.219,710,432, up 12.2% from 17,568,727 in Q1 2023[18] - Net income for Q1 2024 was 3,463,596,representinga97.33,463,596, representing a 97.3% increase compared to 1,754,375 in Q1 2023[20] - Comprehensive income for Q1 2024 was 3,605,630,comparedto3,605,630, 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,comparedto6,123,747, 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,upfrom0.98, up from 0.49 in the same period of 2023, representing a 100% increase[88] - Total distributions per Depositary Receipt increased to 2.00inQ12024from2.00 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 441,000forthethreemonthsendedMarch31,2024,anincreaseofapproximately441,000 for the three months ended March 31, 2024, an increase of approximately 213,000 (93.8%) from 228,000inthesameperiodlastyear[191]CashandLiquidity−Cashandcashequivalentsroseto228,000 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 18,230,463attheendof2023,markinga5818,230,463 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 1,665,543forthesameperiodin2023,indicatingasignificantimprovement[194]−ThePartnership′scashequivalentstotaled1,665,543 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 381,191,994from381,191,994 from 385,730,690 at the end of 2023[15] - Total liabilities remained relatively stable at 450,233,094,downfrom450,233,094, 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,withmortgagepayablesforPartnershippropertiesat573,997,996, with mortgage payables for Partnership properties at 408,060,293[102] - Total liabilities reached 172,028,058,withmortgagenotespayableaccountingfor172,028,058, 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,withmostrequiringfixedinterestpayments[209]PropertyandInvestments−NewEnglandRealtyAssociatesLimitedPartnershipowns31properties,including22residentialbuildingsand4commercialbuildings,totaling2,943apartmentunitsandapproximately130,000squarefeetofcommercialspace[30]−ThePartnershiphasa40−50577,068,000, 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 27,500,000onJuly14,2023[61][62]−ThePartnershipisconstructinga72−unitapartmentbuildingwithtotalexpectedconstructioncostsofapproximately27,500,000 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 15,925,000fora4015,925,000 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 2,352,000fora502,352,000 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 14,141,000forthethreemonthsendedMarch31,2024,upapproximately14,141,000 for the three months ended March 31, 2024, up approximately 901,000 (6.8%) from 13,240,000in2023[187]−Advertisingexpensesincreasedtoapproximately13,240,000 in 2023[187] - Advertising expenses increased to approximately 152,000 for the three months ended March 31, 2024, from approximately 109,000inthesameperiodin2023,reflectingayear−over−yearincreaseofabout39.5109,000 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 1,100,000forQ12024[68]TenantandRentalInformation−Approximately941,100,000 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 12.00perUnitandaspecialdistributionof12.00 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 70.69perreceiptduringthethreemonthsendedMarch31,2024,totalingapproximately70.69 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]