New England Realty Associates Partnership(NEN) - 2025 Q3 - Quarterly Report

Financial Performance - Rental income for the three months ended September 30, 2025, was $23.49 million, a 17.3% increase from $20.02 million in the same period of 2024[17] - Net loss for the three months ended September 30, 2025, was $(521,828), compared to a net income of $3.91 million for the same period in 2024, indicating a significant decline[20] - Comprehensive loss for the three months ended September 30, 2025, was $(548,139), compared to a comprehensive income of $3.64 million in the same period of 2024[20] - The company reported a net income of $7.42 million for the nine months ended September 30, 2025, down from $11.45 million in the same period of 2024, reflecting a decrease of approximately 35.5%[20] - For the nine months ended September 30, 2025, net income per Depositary Receipt was $2.12, down from $3.26 in 2024[86] - The net loss for the same period was $2,341,432, with a net loss attributable to NERA 50% amounting to $58,315[124] - The net loss for the nine months ended September 30, 2024, was $(2,053,567), while the net income for the same period, adjusted for NERA 40%, was $470,313[131] - The net loss for the three months ended September 30, 2024, was $(325,406), with a net income adjusted for NERA 40% of $64,227[132] Assets and Liabilities - Total assets increased to $492.85 million as of September 30, 2025, up from $393.51 million at December 31, 2024, representing a growth of approximately 25.3%[14] - Total liabilities rose to $563.89 million as of September 30, 2025, compared to $455.94 million at December 31, 2024, marking an increase of approximately 23.7%[14] - Cash and cash equivalents decreased to $13.37 million as of September 30, 2025, down from $17.62 million at December 31, 2024, a decline of about 24.5%[14] - The carrying value of the investment in Hamilton on Main LLC fell below zero in 2018, but the Partnership continues to use the equity method of accounting[120] - Total liabilities as of September 30, 2025, amounted to $685,480,895, with a fair value of $641,017,456, compared to $578,493,606 carrying value and $512,921,887 fair value as of December 31, 2024[102] - The Partnership's cash equivalents were valued at $13,374,205 as of September 30, 2025, down from $17,615,940 as of December 31, 2024[102] Cash Flow and Investments - Total cash provided by operating activities increased to $20,355,501 from $19,965,878, reflecting a growth of 1.95%[26] - Cash used in investing activities was $44,941,261, significantly higher than $9,570,177 in the previous year, indicating increased investment activity[26] - Principal payments of mortgage notes payable rose sharply to $21,274,632 from $2,098,252, showing a substantial increase in debt repayment[26] - The Partnership's investment in U.S. Treasury bills for the nine months ended September 30, 2025, was $(31,060,131), compared to $(138,877,950) in 2024[26] - The Partnership has a contractual commitment of approximately $30.9 million related to ongoing construction at the Mill Street Development[91] Expenses - Depreciation and amortization expenses for the nine months ended September 30, 2025, were $15.75 million, an increase of 23.8% from $12.73 million in the same period of 2024[17] - Advertising expenses for the nine months ended September 30, 2025, were approximately $243,000, down from $280,000 in 2024, reflecting a decrease of about 13.2%[51] - Cash paid for interest during the nine months ended September 30, 2025, was approximately $12,403,000, compared to $11,387,000 in 2024[96] - Total expenses for the nine months ended September 30, 2024, amounted to $12,753,069, with significant costs in depreciation and amortization totaling $4,450,735[131] - Interest expense for the nine months ended September 30, 2024, was $(5,517,281), highlighting the impact of financing costs on overall profitability[131] Debt and Financing - The Partnership's mortgage debt had a weighted average interest rate of 4.22% as of September 30, 2025, with interest rates ranging from 2.97% to 5.99%[73] - The Partnership borrowed $18,664,000 at a fixed interest rate of 5.84% and an additional $40,000,000 at 5.99% for refinancing and acquisition purposes[76] - An interim loan of $67,500,000 was secured at a floating interest rate of SOFR plus 150 basis points, due December 17, 2025, for the purchase of Hill Estates[77] - As of September 30, 2025, approximate annual maturities total $514,177,000, with current maturities of $74,120,000 due in 2026[79] - The Partnership has variable rate debt totaling $67,500,000, with interest rates ranging from SOFR plus 150 to 250 basis points[219] Property and Operations - The company owns 34 properties, including 3,339 apartment units and approximately 159,000 square feet of commercial space[29] - The partnership has a 40-50% interest in 7 additional residential and mixed-use properties, consisting of 688 apartment units[29] - The Partnership's properties are primarily located in New England, with no single tenant accounting for more than 5% of revenues in 2025 or 2024[50] - The total number of apartments across all properties is 687, with 409 being in the Hamilton on Main LLC[123] - Total revenues for the three months ended September 30, 2025, amounted to $7,063,982, with rental income contributing $7,009,225, representing a significant portion of total revenues[125] Management and Governance - The Partnership operates as a single business segment focused on multifamily and commercial real estate, with performance evaluated on a consolidated basis[138] - The Partnership approved a quarterly distribution of $12.00 per Unit on November 6, 2025, indicating ongoing financial stability and commitment to returning value to investors[141] - The Partnership is currently evaluating the impact of new accounting standards and SEC rules on its disclosures, which may affect future reporting[135][136] - The Partnership's management has concluded that its disclosure controls and procedures were effective as of the end of the reporting period[220] - No changes in internal control over financial reporting were identified that materially affected the Management Company's controls during the quarter ended September 30, 2025[221] - There are no material legal proceedings involving the Partnership, aside from ordinary routine litigation[222]