New England Realty Associates Partnership(NEN) - 2025 Q2 - Quarterly Report

PART I—FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Presents the unaudited consolidated financial statements, including balance sheets, income, comprehensive income, capital, and cash flow statements Consolidated Balance Sheets | Item | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :-------------- | :---------------- | | ASSETS | | | | Rental Properties | $456,339,814 | $278,516,649 | | Real Estate Assets Held for Sale | $3,003,310 | — | | Cash and Cash Equivalents | $16,677,504 | $17,615,940 | | Investment in U.S. Treasury Bills | — | $83,586,405 | | Total Assets | $494,775,576 | $393,508,658 | | LIABILITIES AND PARTNERS' CAPITAL | | | | Mortgage Notes Payable | $511,175,005 | $406,205,910 | | Total Liabilities | $563,748,914 | $455,942,560 | | Partners' Capital | $(68,973,338) | $(62,433,902) | | Total Liabilities and Partners' Capital | $494,775,576 | $393,508,658 | Consolidated Statements of Income | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Rental income | $21,037,991 | $19,841,559 | $41,534,111 | $39,551,991 | | Total Revenues | $21,240,108 | $20,050,566 | $41,929,002 | $39,943,965 | | Total Expenses | $14,176,535 | $13,512,402 | $28,631,981 | $27,654,028 | | Income Before Other Income (Expense) | $7,063,573 | $6,538,164 | $13,297,021 | $12,289,937 | | Net Income | $4,149,881 | $4,072,726 | $7,945,599 | $7,536,322 | | Net Income per Unit | $35.59 | $34.77 | $68.12 | $64.28 | Consolidated Statements of Comprehensive Income | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $4,149,881 | $4,072,726 | $7,945,599 | $7,536,322 | | Net unrealized (loss) gain on derivative instruments for interest rate swaps | $(64,024) | $32,524 | $(193,914) | $174,558 | | Comprehensive income | $4,085,857 | $4,105,250 | $7,751,685 | $7,710,880 | Consolidated Statements of Changes in Partners' Capital | Item | June 30, 2025 | June 30, 2024 | | :------------------------------------------ | :-------------- | :-------------- | | Balance, January 1 | $(62,433,902) | $(65,354,385) | | Distribution to Partners | $(13,999,902) | $(8,443,134) | | Stock Buyback | $(291,218) | $(901,124) | | Net Income | $7,945,599 | $7,536,322 | | Net unrealized (loss) gain on derivative instruments for interest rate swaps | $(193,914) | $174,558 | | Balance, June 30 | $(68,973,338) | $(66,987,763) | Consolidated Statements of Cash Flows | Item | 2025 | 2024 | | :------------------------------------------ | :------------- | :------------- | | Net cash provided by operating activities | $18,008,372 | $11,487,102 | | Net cash (used in) provided by investing activities | $(40,919,964) | $(5,517,101) | | Net cash provided by (used in) financing activities | $21,973,156 | $(10,737,170) | | Net (Decrease) Increase in Cash and Cash Equivalents | $(938,436) | $(4,767,169) | | Cash and Cash Equivalents, at beginning of period | $17,615,940 | $18,230,463 | | Cash and Cash Equivalents, at end of period | $16,677,504 | $13,463,294 | Notes to Consolidated Financial Statements NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Outlines the Partnership's core accounting principles, covering business, presentation, consolidation, impairment, revenue, and asset accounting - New England Realty Associates Limited Partnership (NERA) owns 34 properties, including 3,339 apartment units, 19 condominium units, and approximately 159,000 square feet of commercial space[29] - Rental income from residential and commercial properties is recognized over the lease term, with certain commercial leases accounted for on a straight-line basis[34] - Rental properties are recorded at cost less accumulated depreciation, with impairment recognized if estimated aggregate future undiscounted cash flows are less than the property's carrying value[37][33] - The Partnership measures derivative instruments, such as interest rate swaps, at fair value, with effective portions of changes reported in other comprehensive income (OCI)[43] NOTE 2. RENTAL PROPERTIES Details the Partnership's rental property portfolio, including residential and commercial units, acquisitions, and development projects - As of June 30, 2025, the Partnership owns 3,339 residential apartment units and 19 condominium units, primarily in the metropolitan Boston area, along with various commercial properties in Massachusetts[56][57] - On June 18, 2025, the Partnership acquired a mixed-use property (396 residential units, 3 commercial units) in Belmont, Massachusetts for $172,000,000, and two commercial properties for $3,000,000[58] - The Mill Street Development project in Woburn, MA, involving a 72-unit apartment building, has an estimated total cost of approximately $33,000,000 and is anticipated to be completed during the fourth quarter of 2025[60][61] Rental Properties Composition (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Land, improvements and parking lots | $143,699,001 | $101,397,349 | | Buildings and improvements | $384,616,677 | $279,272,215 | | Construction in Progress | $30,812,730 | $16,758,245 | | Total fixed assets | $650,332,800 | $461,409,491 | | Less: Accumulated depreciation | $(190,989,676) | $(182,892,842) | | Net Rental Properties | $459,343,124 | $278,516,649 | [NOTE 3. RELATED PARTY TRANSACTIONS](index=17&type=section&id