New England Realty Associates Partnership(NEN) - 2023 Q1 - Quarterly Report

Financial Performance - Net income for the first quarter of 2023 was $1.75 million, compared to $342,418 in Q1 2022, representing a significant increase of 412.5%[19]. - The company reported a comprehensive income of $1.59 million for the three months ended March 31, 2023, compared to $342,418 in the same period of 2022[19]. - Total revenues for the three months ended March 31, 2023, amounted to $6,223,700, with rental income contributing $4,033,298[126]. - Net loss for the period was $83,365, compared to a net income of $530,511 in the previous year[126]. - The Partnership's net income for the first quarter of 2023 was $82,578, with a net loss of $196,442 for the year-to-date[141]. - Net income for the three months ended March 31, 2023, was $1,754,375, representing a 412.3% increase from $342,418 in Q1 2022[174]. Rental Income - Rental income for the three months ended March 31, 2023, increased to $17.57 million, up 6.7% from $16.46 million in the same period of 2022[17]. - Total rental income for the three months ended March 31, 2023, was $17,568,727, reflecting a 6.7% increase from $16,460,006 in the prior year[174]. - Approximately 94% of rental income for the three months ended March 31, 2023, was derived from residential apartments and condominium units, while 6% was from commercial properties[91]. Assets and Liabilities - Total assets decreased from $391.82 million as of December 31, 2022, to $385.00 million as of March 31, 2023, a decline of approximately 1.9%[14]. - Total liabilities slightly decreased from $451.69 million as of December 31, 2022, to $449.93 million as of March 31, 2023, a decline of about 0.4%[14]. - The Partnership's total liabilities as of March 31, 2023, amounted to $576,510,712, with a fair value of $528,162,409[103]. - The total liabilities of the Partnership stand at $174,096,039, including mortgage notes payable of $166,061,429[125]. Cash Flow and Investments - Cash and cash equivalents decreased from $49.56 million at the beginning of the period to $24.65 million at the end of March 31, 2023, a reduction of 50%[26]. - Cash flows from operating activities for Q1 2023 were $2.38 million, down from $4.58 million in Q1 2022, a decrease of 48%[26]. - The Partnership's cash paid for interest during the three months ended March 31, 2023, was approximately $3,754,000, compared to $3,370,000 for the same period in 2022[96]. - Cash and cash equivalents decreased by $24,906,098 in Q1 2023, primarily due to cash used in investing activities of approximately $20,024,862[185]. Property and Investments - The partnership owns 30 properties totaling 2,892 apartment units and 128,096 square feet of commercial space, with additional interests in 7 residential and mixed-use properties[29]. - The Partnership acquired a commercial retail property for approximately $10,151,000 on January 18, 2023, allocating about $585,000 to in-place leases and $378,000 to tenant relationships, with the lease value amortized over twelve months[56]. - The Partnership has invested approximately $15,925,000 for a 40% interest in Hamilton Park Towers, a 409-unit residential complex, with a total purchase price of $129,500,000[115]. - The total investment in unconsolidated joint ventures is reported as a net loss of $23,808,037[125]. Expenses - Administrative expenses for the period were $74,467, while total operating expenses reached $652,250[126]. - Operating expenses increased by 3.4% year-over-year, totaling $3,936,192[141]. - Repairs and maintenance expenses rose significantly by 21.2% to $2,763,136 in Q1 2023, up from $2,279,651 in Q1 2022[174]. - Total expenses for the three months ended March 31, 2023, were $13,240,321, an increase of 3.4% from $12,803,459 in the prior year[174]. Debt and Financing - The Partnership's mortgage debt totaled $413,513,000 as of March 31, 2023, with a weighted average interest rate of 3.69%[68]. - As of March 31, 2023, the Partnership had approximately $580,000,000 in long-term debt, with a significant portion requiring fixed interest payments[201]. - The Partnership's variable rate debt interest costs would change by approximately $50,000 annually with a 100 basis point increase or decrease in market interest rates[202]. - The fair value of the Partnership's fixed rate debt as of March 31, 2023, would change by approximately $312 million with a 100 basis point change in market interest rates[202]. Distributions - The Partnership approved a quarterly distribution of $9.60 per Unit and a special distribution of $38.40 per Class A unit, both payable on March 31, 2023[84].