New England Realty Associates Partnership(NEN) - 2023 Q2 - Quarterly Report

Financial Performance - Net income for the six months ended June 30, 2023, was $3,979,341, up from $585,401 in the same period of 2022, reflecting a significant increase of 579.5%[19] - Comprehensive income for the three months ended June 30, 2023, was $2,392,606, compared to $242,985 for the same period in 2022, indicating a year-over-year increase of 884.5%[19] - The company reported a net income per unit of $18.73 for the three months ended June 30, 2023, compared to $2.02 for the same period in 2022, marking an increase of 828.7%[17] - Net income for the three months ended June 30, 2023, was approximately $2,225,000, an increase of approximately $1,982,000 (815.5%) compared to the same period in 2022[190] - Net income for the six months ended June 30, 2023, was approximately $3,979,000, an increase of approximately $3,394,000 (579.8%) compared to the same period in 2022[202] Revenue and Income Sources - Rental income for the three months ended June 30, 2023, was $17,964,963, an increase of 6.8% compared to $16,825,737 for the same period in 2022[17] - Rental income for the six months ended June 30, 2023, was approximately $35,533,000, an increase of approximately $2,248,000 (6.8%) compared to the same period in 2022[193] - Interest income for the six months ended June 30, 2023, was $2,174,177, a significant increase from $61 in the same period of 2022[17] - The Partnership's principal source of cash during the first six months of 2023 was the collection of rents and interest income generated from Treasury Bills[204] Expenses and Liabilities - The company incurred total expenses of $13,362,686 for the three months ended June 30, 2023, compared to $12,321,006 for the same period in 2022, an increase of 8.5%[17] - Total expenses for the six months ended June 30, 2023, were approximately $8.07 million, with depreciation and amortization expenses of $2.93 million[125] - Interest expense for the six months ended June 30, 2023, was approximately $7,825,000, an increase of approximately $747,000 (10.5%) compared to the same period in 2022[195] - Total liabilities as of June 30, 2023, were approximately $172.27 million, with accounts payable and accrued expenses amounting to $1.38 million[124] Assets and Cash Flow - Total assets as of June 30, 2023, were $386,936,754, a decrease from $391,820,280 as of December 31, 2022, representing a decline of approximately 1.9%[14] - Cash and cash equivalents increased to $55,700,166 as of June 30, 2023, from $49,560,723 as of December 31, 2022, representing an increase of 12.5%[14] - The net increase in cash and cash equivalents for the six months ended June 30, 2023, was $6,139,443, a significant decrease from $36,547,519 in the prior year, highlighting changes in cash flow dynamics[205] - Cash provided by operating activities increased to $8,167,083 for the six months ended June 30, 2023, compared to $7,452,286 in 2022, reflecting a positive trend in operational efficiency[205] Property and Investments - The partnership owns 30 properties, including 21 residential buildings and 5 commercial buildings, totaling 2,892 apartment units and 128,635 square feet of commercial space[28] - The Partnership made significant investments in U.S. Treasury bills amounting to $68,355,526 during the six months ended June 30, 2023[25] - The Partnership acquired a commercial retail property for approximately $10,151,000 on January 18, 2023, funded from cash reserves[58] - The Partnership purchased a 52-unit residential property in Boston for approximately $27,500,000 on July 14, 2023[140] Distributions and Returns - Distributions to partners increased to $7,128,758 in 2023 from $6,976,595 in 2022, reflecting a growth in partner returns[25] - A quarterly distribution of $12.00 per Unit ($0.40 per Receipt) was approved and paid on June 30, 2023, alongside a special distribution of $38.40 per Class A unit ($1.28 per Receipt) on March 31, 2023[208] - Total distributions for 2022 amounted to $76.80 per Unit ($2.56 per Receipt), totaling $9,267,981[87] Market and Occupancy Rates - The vacancy rate for residential properties as of August 1, 2023, was 1.8%, down from 2.0% a year earlier[146] - The residential occupancy rate was 98.2% with 51 vacancies out of 2,911 units as of August 1, 2023, compared to a 98.0% occupancy rate with 58 vacancies in the previous year[179] - The commercial vacancy rate significantly improved to 1.3% with 1,461 vacancies out of 128,635 square feet, down from 18.8% with 20,274 vacancies in the previous year[179] Construction and Improvements - Tenant improvements for the six months ended June 30, 2023, were approximately $4,866,000, a significant increase of 346.8% compared to the prior year[155] - The Partnership completed property improvements totaling approximately $4,866,000 during 2023, funded entirely from cash reserves, with significant investments in multiple properties[206] - Hamilton provided approximately $521,000 in construction and architectural services during the six months ended June 30, 2023, compared to approximately $42,000 in the same period of 2022[160]