10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-31568

New England Realty Associates Limited Partnership

(Exact name of registrant as specified in its charter)

Massachusetts	04-2619298
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	identification no.)
39 Brighton Avenue, Allston, Massachusetts	02134
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (617) 783-0039

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated Filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol	Name of each exchange on which registered:
Class A	NEN	NYSE MKT Exchange

As of August 8, 2024, there were 93,586 of the registrant’s Class A units (2,807,590 Depositary Receipts) of limited partnership issued and outstanding and 22,227 Class B units issued and outstanding.

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

INDEX

PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	4
	Consolidated Statements of Income for the Three and Six Months Ended June 30, 2024 and 2023	5
	Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023	6
	Consolidated Statements of Changes in Partners’ Capital for the Six Months Ended June 30, 2024 and 2023	7
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023	8
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosure	42
Item 5.	Other Information	42
Item 6.	Exhibits	43
SIGNATURES		44

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NEW ENGLAND REALTY ASSOCIATES, L.P.

PART 1 -- FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying unaudited consolidated balance sheets, statements of income, statements of comprehensive income, changes in partners’ capital, and cash flows and related notes thereto, have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. The financial statements reflect all adjustments consisting only of normal, recurring adjustments, which are, in the opinion of management, necessary for a fair presentation for the interim periods.

The consolidated balance sheet as of December 31, 2023, has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

The aforementioned financial statements should be read in conjunction with the notes to the aforementioned financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in New England Realty Associates L.P.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

The results of operations for the three and six month periods ended June 30, 2024 are not necessarily indicative of the results to be expected for the entire fiscal year or any other period.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	June 30,		December 31,
	2024		2023
ASSETS		(Unaudited)
Rental Properties	$	271,071,285	$	269,804,946
Cash and Cash Equivalents		13,463,294		18,230,463
Rents Receivable		1,028,438		953,761
Real Estate Tax Escrows		2,385,456		2,229,703
Investment in U.S. Treasury Bills		84,789,084		84,700,751
Prepaid Expenses and Other Assets		9,549,493		8,369,775
Investments in Unconsolidated Joint Ventures		1,413,318		1,441,291
Total Assets	$	383,700,368	$	385,730,690
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable		407,457,271		408,660,292
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture		27,439,766		26,707,807
Accounts Payable and Accrued Expenses		5,394,443		5,720,088
Advance Rental Payments and Security Deposits		10,396,651		9,996,887
Total Liabilities		450,688,131		451,085,074
Commitments and Contingent Liabilities (Notes 3 and 9)		—		—
Partners’ Capital 117,010 and 117,431 units outstanding in 2024 and 2023 respectively		(66,987,763)		(65,354,384)
Total Liabilities and Partners’ Capital	$	383,700,368	$	385,730,690

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended					Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Revenues
Rental income	$	19,841,559	$	17,964,963	$	39,551,991	$	35,533,690
Laundry and sundry income		209,007		136,073		391,974		259,032
		20,050,566		18,101,036		39,943,965		35,792,722
Expenses
Administrative		651,978		867,721		1,413,997		1,604,822
Depreciation and amortization		4,277,482		3,961,432		8,505,064		7,807,693
Management fee		782,856		665,073		1,571,463		1,362,837
Operating		1,638,816		1,721,233		4,284,310		4,255,029
Renting		150,772		244,434		538,371		436,019
Repairs and maintenance		3,500,467		3,479,071		6,348,424		6,241,845
Taxes and insurance		2,510,031		2,423,722		4,992,399		4,894,401
		13,512,402		13,362,686		27,654,028		26,602,646
Income Before Other Income (Expense)		6,538,164		4,738,350		12,289,937		9,190,076
Other Income (Expense)
Interest income		1,112,988		1,292,453		2,290,536		2,267,000
Interest expense		(3,899,695)		(3,925,863)		(7,806,711)		(7,825,103)
Income from investments in unconsolidated joint ventures		321,269		119,664		762,560		347,368
		(2,465,438)		(2,513,746)		(4,753,615)		(5,210,735)
Net Income	$	4,072,726	$	2,224,604	$	7,536,322	$	3,979,341
Net Income per Unit	$	34.77	$	18.73	$	64.28	$	33.45
Weighted Average Number of Units Outstanding		117,139		118,764		117,247		118,971

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income	$	4,072,726	$	2,224,604	$	7,536,322	$	3,979,341
Net unrealized gain on derivative instruments for interest rate swaps		32,524		168,002		174,558		2,115
Comprehensive income	$	4,105,250	$	2,392,606	$	7,710,880	$	3,981,456

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

(Unaudited)

	Units						Partner’s Capital
	Limited		General		Treasury		Limited				General		Accumulated
	Class A	Class B	Partnership	Subtotal	Units	Total	Class A		Class B		Partnership		Comprehensive Income	Total
Balance January 1, 2023	144,180	34,243	1,802	180,225	60,970	119,255	$	(48,160,462)		(11,403,635)		(600,191)	294,931	$	(59,869,357)
Distribution to Partners	—	—	—	—	—	—		(5,703,006)		(1,354,464)		(71,288)	—		(7,128,758)
Stock Buyback	—	—	—	—	594	(594)		(1,031,739)		(244,753)		(12,882)	—		(1,289,374)
Net Income	—	—	—	—	—	—		3,183,473		756,075		39,793	—		3,979,341
Net unrealized gain on derivative instruments for interest rate swaps	—	—	—	—	—	—		—		—		—	2,115		2,115
Balance June 30 , 2023	144,180	34,243	1,802	180,225	61,564	118,661	$	(51,711,734)	$	(12,246,777)	$	(644,568)	297,046	$	(64,306,033)
													—
Balance January 1, 2024	144,180	34,243	1,802	180,225	62,794	117,431	$	(52,503,128)		(12,433,251)		(654,383)	236,377		(65,354,384)
Distribution to Partners	—	—	—	—	—	—		(6,754,507)		(1,604,196)		(84,431)	—		(8,443,134)
Stock Buyback	—	—	—	—	421	(421)		(721,259)		(170,872)		(8,993)	—		(901,124)
Net Income	—	—	—	—	—	—		6,029,058		1,431,901		75,363	—		7,536,322
Net unrealized gain on derivative instruments for interest rate swaps	—	—	—	—	—	—		—		—		—	174,558		174,558
Balance June 30, 2024	144,180	34,243	1,802	180,225	63,215	117,010	$	(53,949,836)		(12,776,418)		(672,444)	410,935		(66,987,763)

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
	2024		2023
Cash Flows from Operating Activities
Net Income	$	7,536,322	$	3,979,341
Adjustments to reconcile net income to net cash provided by operating activities
Interest accrued on U.S. Treasury bills		(2,259,599)		(2,051,676)
Depreciation and amortization		8,505,064		7,807,693
Amortization of deferred finance costs		189,892		189,892
(Income) from investments in joint ventures		(762,560)		(347,368)
Change in operating assets and liabilities
Proceeds from unconsolidated joint ventures		82,500		59,000
(Increase) in rents receivable		(74,677)		(113,898)
(Decrease) in accounts payable and accrued expense		(624,234)		(1,704,508)
(Increase) in real estate tax escrow		(155,753)		(206,239)
(Increase) in prepaid expenses and other assets		(1,349,617)		(1,958,461)
Increase in advance rental payments and security deposits		399,764		845,440
Total Adjustments		3,950,780		2,519,875
Net cash provided by operating activities		11,487,102		6,499,216
Cash Flows From Investing Activities
Distribution in excess of investment in unconsolidated joint ventures		1,440,000		1,575,000
Investment in U.S. Treasury bills		(83,635,733)		(68,355,526)
Proceeds from U.S. Treasury bills		85,807,000		90,000,000
Developing of rental property and other related costs		(4,185,791)		—
Purchase of rental property		—		(8,974,242)
Improvement of rental properties		(4,942,577)		(4,865,294)
Net cash (used in) provided by investing activities		(5,517,101)		9,379,938
Cash Flows from Financing Activities
Principal payments of mortgage notes payable		(1,392,912)		(1,321,579)
Stock buyback		(901,124)		(1,289,374)
Distributions to partners		(8,443,134)		(7,128,758)
Net cash provided by (used in) financing activities		(10,737,170)		(9,739,711)
Net (Decrease) Increase in Cash and Cash Equivalents		(4,767,169)		6,139,443
Cash and Cash Equivalents, at beginning of period		18,230,463		49,560,723
Cash and Cash Equivalents, at end of period	$	13,463,294	$	55,700,166

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2024

(Unaudited)

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business: New England Realty Associates Limited Partnership (“NERA”, the “Company” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 31 properties which include 22 residential buildings; 5 mixed use residential, retail and office buildings; 4 commercial buildings and individual units at one condominium complex. These properties total 2,943 apartment units, 19 condominium units and approximately 130,000 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 7 residential and mixed use properties consisting of 688 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgments and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances.

Principles of Consolidation: The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the seven limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of some investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the

9

variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing

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activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. Costs directly related to the acquisition, development and construction of rental properties are capitalized. Capitalized development and construction costs include pre-construction costs, development and construction costs, regulatory fees, interest, property taxes, insurance, construction oversight fees, and other project costs incurred during the period of development. The Partnership considers a construction project as substantially completed and held available for occupancy upon the substantial completion of improvements, but no later than one year from cessation of major construction activity.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $190,000 and $190,000 for the six months ended June 30, 2024 and 2023, respectively.

Derivative Instruments: The Partnership measures derivative instruments, including certain derivative instruments embedded in other contracts, at fair value and records them as an asset or liability, depending upon the Partnership’s rights or obligations under the applicable derivative contract. For derivatives designated and qualifying as fair value hedges, the changes in the fair value of both the derivative instrument and the hedged item are recorded in earnings. For derivatives designated as cash flow hedges, the effective portions of the derivative are reported in other comprehensive income (“OCI”) and are subsequently reclassified into earnings when the hedged item affects earnings. Changes in fair value of derivative instruments not designated as hedging and ineffective portions of hedges are recognized in earnings in the affected period.

Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes has been recorded (See Note 14).

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less at the time of purchase, including its investment in money market funds.

Investments in Treasury Bills: Investments in U.S. Treasury bills are recorded at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury bills is recognized in interest income in the Partnership’s consolidated statement of income.

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Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment.

Other Comprehensive Income (Loss): Other comprehensive income (loss) includes items that are recorded in equity, such as effective portions of derivatives designated as cash flow hedges or unrealized holding gains or losses on marketable securities available for sale. NERA had comprehensive income of approximately $175,000 and a comprehensive income of approximately $2,000 for the six months ended June 30, 2024 and 2023, respectively.

Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3-for-1 forward split.

Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partners’ Capital).

Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2024 or 2023. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At June 30, 2024, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 4.07%. At June 30, 2024 and December 31, 2023, respectively, approximately $14,809,000, and $18,711,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense: Advertising is expensed as incurred. Advertising expense was approximately $177,000 and $193,000 for the six months ended June 30, 2024, and 2023, respectively.

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the six months ended June 30, 2023 there was no capitalized interest.

Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However, if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancings qualify as extinguishment of debt.

Reclassification: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

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NOTE 2. RENTAL PROPERTIES

As of June 30, 2024, the Partnership and its Subsidiary Partnerships owned 2,943 residential apartment units in 27 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

Additionally, as of June 30, 2024, the Partnership and Subsidiary Partnerships owned two commercial shopping centers in Framingham, commercial buildings in Newton and Brookline and commercial space in mixed-use properties in Boston, Brockton and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.”

The Partnership also owned a 40% to 50% ownership interest in seven residential and mixed use complexes (the “Investment Properties”) at June 30, 2024 with a total of 688 apartment units, accounted for using the equity method of consolidation. See Note 15 for summary information on these investments.

The Partnership purchased a commercial retail property of approximately 20,700 square feet, located at 653 Worcester Road in Framingham, Massachusetts for the sum of approximately $10,151,000 on January 18, 2023. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $59,000. From the purchase price, the Partnership allocated approximately $585,000 for in-place leases, and approximately $378,000 to the value of tenant relationships. These amounts are being amortized over 12 and 156 months respectively.

On July 14, 2023, the Partnership purchased a 52 unit mixed use property in the South End neighborhood of Boston, Massachusetts comprised of three buildings at 26-30 Rutland Street, 105-117 West Concord Street and 475 Shawmut Avenue, and approximately 3,400 square feet of commercial space for a purchase price of approximately $27,500,000. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $81,000. From the purchase price, the Partnership allocated approximately $525,000 for in-place leases, approximately $61,000 to the value of tenant relationships and $241,000 to the value of below-market leases. These amounts are being amortized over 12 and 36 months respectively.

In December, 2023, the Partnership received approval from MassHousing to construct a 72 unit apartment building in accordance with Chapter 40B to include 17 affordable units on the Mill Street Development site. In order to initiate construction, the Partnership demolished the existing building structures and started construction in January 2024. In order to comply with the permanent financing requirements for a 40B project, Mill Street Development signed a term sheet for a loan of up to $15 million, to be funded upon completion of the development project. In addition, Mill Street Development deposited $75,000 into escrow to comply with the 40B project requirement of a cost certification of total development costs upon completion of the project. Total expected construction costs for the project are expected to be approximately $30,000,000 with construction completion anticipated during the fourth quarter of 2025.

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Rental properties consist of the following:

	June 30, 2024		December 31, 2023		Useful Life
Land, improvements and parking lots	$	99,249,928	$	99,162,143	15	-	40	years
Buildings and improvements		276,824,808		276,167,618	15	-	40	years
Construction in Progress		8,391,993		1,818,716		N/A
Kitchen cabinets		16,593,160		16,137,828	5	-	10	years
Carpets		13,928,453		13,127,838	5	-	10	years
Air conditioning		500,000		500,000	5	-	10	years
Laundry equipment		594,010		568,716	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,090,604		1,090,604	10	-	30	years
Equipment		21,749,687		21,348,556	5	-	30	years
Motor vehicles		232,954		232,954			5	years
Fences		91,620		91,620	5	-	15	years
Furniture and fixtures		8,791,368		8,365,039	5	-	7	years
Total fixed assets		449,923,850		440,496,897
Less: Accumulated depreciation		(178,852,565)		(170,691,951)
	$	271,071,285	$	269,804,946

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by The Hamilton Company, Inc. (the “Management Company”), an entity that is owned by the majority shareholders of NewReal, Inc., the general partner of the Partnership (the “General Partner”). The management fee is equal to 4% of gross receipts of rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately $1,571,000 and $1,363,000 for the six months ended June 30, 2024 and 2023, respectively.

The Partnership Agreement permits the General Partner or the Management Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. During the six months ended June 30, 2024 and 2023, approximately $568,000 and $914,000 was charged to NERA for legal, accounting, construction, maintenance, brokerage fees, rental and architectural services and supervision of capital improvements. Of the 2024 expenses referred to above, approximately $29,000 consisted of repairs and maintenance, $152,000 of administrative expense, and approximately $57,000 for renting expense. Approximately $330,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2024, the Hamilton Company received approximately $431,000 from the Investment Properties of which approximately $369,000 was the management fee, approximately $46,000 for construction, architectural services, and supervision of capital projects, approximately $11,000 for repairs and maintenance, and approximately $5,000 for legal expense. The management fee is equal to 4% of gross receipts of rental income on the majority of the investment properties and 2% on Dexter Park.

The Partnership reimburses the Management Company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $2,086,000 and $2,050,000 for the six months ended June 30, 2024 and 2023, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. For the six months ended June 30, 2024, the Partnership accrued $32,000 for the employer’s match portion to the plan. For the six months ended June 30, 2023, the Partnership contributed $32,000 for the employer’s match portion to the plan.

Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 14 people. During the six months ended June 30, 2024 and 2023, the Management Company charged the Partnership $62,500 ($125,000 per year) for bookkeeping and accounting services included in administrative expenses above.

Sally Michael is a Director of New Real, Inc., and she is a Partner at Saul Ewing Arnstein & Lear LLP. Saul Ewing billed the Partnership for legal fees totaling approximately $70,000 and $39,000 for the six months ended June

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30, 2024 and 2023, respectively. David Reier is a Director of New Real, Inc., who billed the Partnership approximately $7,000 for legal fees for the period ending June 30,2024.

The Partnership has invested in seven limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other investors are the Brown family related entities, and five current and previous employees of the Management Company. The Brown Family related entities’ ownership interest was between 47.6% and 59%. See Note 15 for a description of the properties and their operations.

NOTE 4. PREPAID EXPENSES and OTHER ASSETS

Approximately $3,665,000, and $3,601,000 of security deposits are included in prepaid expenses and other assets at June 30, 2024 and December 31, 2023, respectively. The security deposits and escrow accounts are restricted cash.

Also, included in prepaid expenses and other assets at June 30, 2024 and December 31, 2023 is approximately $2,022,000 and $1,784,000, respectively, held in escrow to fund future capital improvements.

Intangible assets on the acquisition of rental properties are included in prepaid expenses and other assets. Intangible assets are approximately $383,000 and $677,000 net of accumulated amortization of approximately $1,166,000 and $872,000 at June 30, 2024, and at December 31, 2023, respectively.

Financing fees in association with the line of credit of approximately $20,000 and $52,000 are net of accumulated amortization of approximately $162,000 and $130,000 at June 30, 2024 and December 31, 2023 respectively.

NOTE 5. MORTGAGE NOTES PAYABLE

At June 30, 2024 and December 31, 2023, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At June 30, 2024, the interest rates on these loans ranged from 2.97% to 4.95%, payable in monthly installments aggregating approximately $1,523,000 including principal, to various dates through 2035. The majority of the mortgages are subject to prepayment penalties. At June 30, 2024, the weighted average interest rate on the above mortgages was 3.68%. The effective rate of 3.77% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations.

Financing fees of approximately $2,589,000 and $2,779,000 are net of accumulated amortization of approximately $1,543,000 and $1,353,000 at June 30, 2024 and December 31, 2023, respectively, which offset the total mortgage notes payable.

The Partnership has pledged tenant leases as additional collateral for certain of these loans.

Approximate annual maturities at June 30, 2024 are as follows:

2025—current maturities	$	3,196,000
2026		21,931,000
2027		6,595,000
2028		23,165,000
2029		58,327,000
Thereafter		296,832,000
		410,046,000
Less: unamortized deferred financing costs		2,589,000
	$	407,457,000

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Line of Credit

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. Prior to the line’s expiration in 2020, the Partnership exercised its option for a one-year extension until October 31, 2021. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

On October 29, 2021, the Partnership closed on the modification of its existing line of credit. The agreement extends the credit line for three years until October 29, 2024. The commitment amount is for $25 million but is restricted to $17 million during the modification period. The modification period phased out as of December 31, 2022. During this period, the loan covenants were modified from a minimum consolidated debt service ratio of 1.60 to a ratio of 1.35 until September 30, 2022; from a minimum tangible net worth requirement of $200 million to a net worth of $175 million until September 30, 2022; from a maximum consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022 and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30, 2022 and a yield of 9.0% until December 31, 2022. Once the financial performance of the Partnership meets the original covenant tests for the trailing 12-month period, the commitment amount will return to $25 million. As of June 30, 2024, the portfolio’s debt yield fell below the minimum of 9.5% to 9.3%, thus the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is unable to draw down any amount from the line of credit until the Partnership meets the required financial covenants. The Partnership is currently in discussions with a lender for a replacement line of credit.

The interest rate for the new term was LIBOR plus 300 basis points. The costs associated with the modification and renewal of the line of credit was approximately $179,000.

After June 30, 2023, the remaining tenors of U.S.-dollar LIBOR ceased publication, prompting the need for an alternative benchmark rate. On April 14, 2023, the partnership amended the line of credit to convert its base rate of interest from LIBOR to the Secured Overnight Financing Rate (SOFR) plus 10 basis points.

The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay dividends, make distributions or acquire equity interests of the Partnership.

The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 23 of its subsidiary properties and joint ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities.

NOTE 6. ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

The Partnership’s residential lease agreements may require tenants to maintain a one-month advance rental payment and/or a security deposit. At June 30, 2024, amounts received for prepaid rents of approximately $3,374,000 are included in cash and cash equivalents, and security deposits of approximately $3,665,000 are included in prepaid expenses and other assets and are restricted cash.

NOTE 7. PARTNERS’ CAPITAL

The Partnership has two classes of Limited Partners (Class A and B) and one category of General Partner. Under the terms of the Partnership Agreement, distributions to holders of Class B Units and General Partnership Units must represent 19% and 1%, respectively, of the distributions made to the total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.

In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on March 28, 2024. In addition to the quarterly distribution, there was a special distribution of $48.00 per Class A unit ($1.60 per Receipt) payable on March 28, 2024. In May 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on June 28, 2024.

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In 2023 the Partnership paid a total distribution of an aggregate $84.00 per Unit ($2.80 per Receipt) for a total payment of $9,954,888.

The Partnership has entered into a deposit agreement with an agent to facilitate public trading of limited partners’ interests in Class A Units. Under the terms of this agreement, the holders of Class A Units have the right to exchange each Class A Unit for 30 Depositary Receipts. The following is information per Depositary Receipt:

	Six Months Ended
	June 30,
	2024		2023
Net Income per Depositary Receipt	$	2.14	$	1.12
Distributions per Depositary Receipt	$	2.40	$	2.00

NOTE 8. TREASURY UNITS

Treasury Units at June 30, 2024 are as follows:

Class A	50,572
Class B	12,011
General Partnership	632
	63,215

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). Over time, the General Partner has authorized increases in the equity repurchase program. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. On March 9, 2020, the General Partner extended the program for an additional five years from March 31, 2020 to March 31, 2025. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restated Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions.

From August 20, 2007 through June 30, 2024, the Partnership has repurchased 1,542,344 Depositary Receipts at an average price of $31.59 per receipt (or $947.70 per underlying Class A Unit), 4,474 Class B Units and 236 General Partnership Units, both at an average price of $1,274.00 per Unit, totaling approximately $55,322,000 including brokerage fees paid by the Partnership.

During the six months ended June 30, 2024, the Partnership purchased a total of 10,110 Depositary Receipts. The average price was $71.16 per receipt, or $2,134.80 per unit. The cost including commission was approximately $721,000. The Partnership was required to repurchase 80.0 Class B Units and 4.2 General Partnership units at a cost of $170,872 and $8,993 respectively.

NOTE 9. COMMITMENTS AND CONTINGENCIES

The Partnership, the Subsidiary Partnerships, and the Investment Properties and their properties are not presently subject to any material litigation, and, to management’s knowledge, there is not any material litigation presently threatened against them. The properties are occasionally subject to ordinary routine legal and administrative proceedings incident to the ownership of residential and commercial real estate. Some of the legal and other expenses related to these proceedings are covered by insurance and none of these costs and expenses are expected to have a material adverse effect on the Consolidated Financial Statements of the Partnership.

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NOTE 10. RENTAL INCOME

During the six months ended June 30, 2024, approximately 94% of rental income was related to residential apartments and condominium units with leases of one year or less. The majority of these leases expire in June, July and August. Approximately 6% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at June 30, 2024 as follows:

	Commercial
	Property Leases
2025	$	3,048,338
2026		2,812,231
2027		2,467,300
2028		2,233,941
2029		1,895,581
Thereafter		9,470,229
	$	21,927,620

The aggregate minimum future rental income does not include contingent rentals that may be received under various leases in connection with common area charges and real estate taxes. Aggregate contingent rentals from continuing operations were approximately $398,000 and $328,000 for the six months ended June 30, 2024 and 2023 respectively. Trader Joe’s and Walgreen’s, tenants at Staples Plaza and 653 Worcester Road, Framingham, Massachusetts respectively, are approximately 18% of the total commercial rental income.

The following information is provided for commercial leases:

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through June 30,	expiring leases		for expiring leases	leases expiring	expiring leases
2025	$	441,070	31,292	29	12	%
2026		304,000	8,601	10	9	%
2027		300,625	12,440	6	8	%
2028		283,478	7,651	3	8	%
2029		352,839	8,733	4	10	%
2030		291,029	12,026	1	8	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		—	—	—	—	%
2034		533,784	20,897	2	15	%
Thereafter		947,722	27,140	3	27	%
Totals	$	3,565,147	129,886	59	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $981,000 and $1,195,000 at June 30, 2024 and December 31, 2023. Included in rents receivable at June 30, 2024 is approximately $551,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis.

NOTE 11. CASH FLOW INFORMATION

During the six months ended June 30, 2024 and 2023, cash paid for interest was approximately $7,649,000, and $7,678,000 respectively. Cash paid for state income taxes was approximately $100,000 and $25,000 during the six months ended June 30, 2024 and 2023, respectively.

NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At June 30, 2024 and December 31, 2023, we do not have any significant financial assets or financial liabilities that are measured at fair value on a recurring basis in our consolidated financial statements.

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Financial Assets and Liabilities not Measured at Fair Value

At June 30, 2024 and December 31, 2023 the carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, and note payable, accounts payable and accrued expenses were representative of their fair values due to the short-term nature of these instruments or, the recent acquisition of these items.

The Partnership has investments in U.S. Treasury bills, some of which mature over a period greater than 90 days and are classified as short-term investments. The U.S. Treasury bills are carried at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the U.S. Treasury bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the U.S. Treasury bills is recognized in interest income in the Partnership’s consolidated statement of income. The U.S. Treasury bills classified within Level I of the fair value hierarchy.

At June 30, 2024 and December 31, 2023 we estimated the fair value of our mortgage payable, derivative financial instrument, and other notes based upon quoted market prices for the same (Level 1) or similar (Level 2) issues when current quoted market prices are available. We estimated the fair value of our secured mortgage debt that does not have current quoted market prices available by discounting the future cash flows using rates currently available to us for debt with similar terms and maturities (Level 3). The differences in the fair value of our debt from the carrying value are the result of differences in interest rates and/or borrowing spreads that were available to us at June 30, 2024 and December 31, 2023, as compared with those in effect when the debt was issued or acquired. The secured mortgage debt contain pre-payment penalties or yield maintenance provisions that could make the cost of refinancing the debt at lower rates exceed the benefit that would be derived from doing so. At June 30, 2024 and at December 31, 2023, the Partnership’s line of credit had an outstanding balance of zero.

The following methods and assumptions were used by the Partnership in estimating the fair value of its financial instruments:

● For cash and cash equivalents, accounts receivable, other assets, investment in partnerships, accounts payable, advance rents and security deposits: fair value approximates the carrying value of such assets and liabilities.

● For mortgage notes payable and treasury bills: fair value is generally based on estimated future cash flows, which are discounted using the quoted market rate from an independent source for similar obligations. Refer to the table below for the carrying amount and estimated fair value of such instruments.

The following table reflects the carrying amounts and estimated fair value of our debt.

	June 30, 2024		Dec 31, 2023
	Carrying Value	Fair Value	Carrying Value	Fair Value
Assets
Cash equivalents	13,463,294	13,463,294	18,230,463	18,230,463
Treasury bills	84,789,084	84,780,233	84,700,751	84,799,638
Total Assets	98,252,378	98,243,527	102,931,214	103,030,101
Liabilities
Mortgage payable *
- Partnership properties	407,457,271	351,924,863	408,660,292	359,092,343
- Investment properties	165,905,350	154,906,411	165,969,481	156,280,958
Total Liabilities	573,362,621	506,831,274	574,629,773	515,373,301

* Net of unamortized deferred financing costs

Disclosure about fair value of financial instruments is based on pertinent information available to management as of June 30, 2024 and December 31, 2023. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial

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statements since June 30, 2024 and current estimates of fair value may differ significantly from the amounts presented herein.

NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS

Cash Flow Hedges of Interest Rate Risk

The Partnership’s objectives in using rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Partnership uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Partnership making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The change in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Partnership’s variable rate debt. During the next 12 months, the Partnership estimates $122,000 will be reclassified as a decrease to interest expense.

As of June 30, 2024, the Partnership had one interest rate swap outstanding with a notional amount of approximately $411,000 designated as cash flow hedges of interest rate risk. As of June 30, 2024, the Partnership did not have any interest rate derivatives in a net liability position.

The table below presents the fair value of the Partnership’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2024 and December 31, 2023.

	Fair Value
Asset Derivatives designated	June 30,		December 31,
as hedging instruments	2024		2023		Balance sheet location
Interest rate swaps	$	410,935	$	236,377	Prepaid Expenses and Other Assets

The table below presents the effect the Partnership’s derivative financial instruments on the consolidated statements of income for the quarters ended June 30, 2024 and 2023.

					Location of Gain
					or (Loss)	Amount of Gain					Total Amount of
					Reclassified	or (Loss)				Location of Gain	Interest Expense
	Amount of Gain				from	Reclassified				or (Loss) Recognized	presented in the
Derivatives in Cash Flow	or (Loss) Recognized				Accumulated	from Accumulated				in Income on	consolidated statements
Hedging Relationships	in OCI on Derivative				OCI Into Income	OCI into Income				Derivative	of operations
Three Months Ended June 30,	2024		2023			2024		2023			2024		2023
Interest rate swaps	$	32,524	$	168,002	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(3,899,695)	$	(3,925,863)
Six Months Ended June 30,
Interest rate swaps	$	174,558	$	2,115	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(7,806,711)	$	(7,825,103)

NOTE 14. TAXABLE INCOME AND TAX BASIS

Taxable income reportable by the Partnership and includable in its partners’ tax returns is different than financial statement income because of tax free exchanges, different depreciation methods, different tax lives, other items with limited tax deductibility carryovers and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Federal taxable income of approximately $9,989,000 was approximately $1,535,000 more than statement income for the year ended December 31, 2023. The Federal cumulative tax basis of the Partnership’s real estate at December 31, 2023 is approximately $8,000,000 less than the statement basis. The primary reasons for the difference in tax basis are tax free exchanges, accelerated depreciation, bonus depreciation, and other timing differences. The Partnership’s Federal tax basis in its joint venture investments is approximately $6,000,000 more than statement basis. State taxable income may be significantly different due to different tax treatments for certain items.

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Certain entities included in the Partnership’s consolidated financial statements are subject to certain state taxes. These taxes are not significant and are recorded as operating expenses in the accompanying consolidated financial statements.

The Partnership adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance, the Partnership recognized no material adjustment regarding its tax accounting treatment. The Partnership expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense, which would be included in general and administrative expense.

In the normal course of business the Partnership or one of its subsidiaries is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of June 30, 2024, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2020 forward.

NOTE 15. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The Partnership has invested in seven limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three Joint Ventures investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are the Brown Family related entities and five current and former employees of the Management Company. The Brown Family’s ownership interest was between 47.6% and 59%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, Hamilton Park Towers LLC, referred to as Dexter Park, or Hamilton Park, is a 409 unit residential complex. The purchase price was $129,500,000. The original mortgage was $89,914,000 with an interest rate of 5.57% and was to mature in 2019. The mortgage called for interest only payments for the first two years of the loan and amortized over 30 years thereafter.

On May 31, 2018, Hamilton Park Towers, LLC, entered into a Mortgage Note with John Hancock Life Insurance Company (U.S.A.) in the principal amount of $125,000,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.99% per annum, and the principal amount of the Note is due and payable on June 1, 2028. The Note is secured by a mortgage on the Dexter Park apartment complex located at 175 Freeman Street, Brookline, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2018. The Note is guaranteed by the Partnership and HBC Holdings, LLC pursuant to a Guaranty Agreement dated May 31, 2018.

Hamilton Park used the proceeds of the loan to pay off an outstanding loan of approximately $82,000,000 and distributed approximately $41,200,000 to its owners. The Partnership’s share of the distribution was approximately $16,500,000. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for the investment using the equity method of accounting, although the Partnership has no legal obligation to fund its’ share of any future operating deficiencies as needed. At June 30, 2024, the balance on this mortgage before unamortized deferred financing costs is $125,000,000. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Joint Venture planned to operate the building and initiate development of the parking lot. In June 2007, the Joint Venture separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Joint Venture restructured the mortgages on both parcels at Essex 81. On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate. The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share

21

of any future operating deficits if needed. At June 30, 2024, the balance on this mortgage before unamortized deferred financing costs is $10,000,000. The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC.

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Joint Venture sold 127 of the units as condominiums and retained 49 units for long-term investment. The Joint Venture obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Joint Venture. The interest on the new loan was 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of the mortgage balance. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. After paying off the mortgage, the Partnership began to sell off the individual units. In 2019, all residential units were sold. The Partnership still owns the commercial building. This investment is referred to as Hamilton 1025, LLC.

In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42-unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000. On September 12, 2016, the property was refinanced with a 15 year mortgage in the amount of $6,000,000, at 3.71%, interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $5,158,000 with the proceeds of the new mortgage and made a distribution of $385,000 to the Partnership. The cost associated with the refinancing was approximately $123,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30 2024, the balance on this mortgage before unamortized deferred financing costs is $6,000,000. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The Joint Venture sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only. The Joint Venture paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and distributed $850,000 to the Partnership. The costs associated with the refinancing were approximately $161,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30, 2024, the balance of the mortgage before unamortized deferred finance is $16,900,000. The investment is referred to as Hamilton on Main LLC. This mortgage is currently in the process of a refinancing which is to be completed prior to the maturity date of the loan.

On August 23, 2023, Hamilton on Main Apartments, LLC (the “Borrower”), a 50% owned joint venture of the Partnership, received notice from KeyBank, as servicer for the lender of a $16,900,000 loan, indicating that the Borrower failed to comply with certain terms of the loan documents pertaining to the transfer of interests in the Borrower that occurred on the occasion of Harold Brown’s death, and that such transfer constitutes an event of default under the loan documents. While the Borrower has disputed that any events of default actually exist, it worked diligently with KeyBank to obtain KeyBank’s consent to the transfer. On March 8, 2024, the Borrower received notice from KeyBank that it was providing ex-post facto consent to the transfer of interest subject to certain conditions being met by the Borrower. The Partnership’s share of costs associated with the transfer of interests in the Borrower was approximately $107,000. On April 18, 2024 the Borrower and KeyBank executed amended loan documents reflecting the transfer of interest in the Borrower. In conjunction with the execution of the amended loan documents, KeyBank provided a courtesy reduction equal to 50% of the transfer fee.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Joint Venture paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the Joint Venture made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership

22

intends to fund its share of any future operating deficits if needed. At June 30, 2024, the balance of this mortgage before unamortized deferred financing costs is approximately $8,364,000. This investment is referred to as 345 Franklin, LLC.

Summary financial information at June 30, 2024

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,246,865		$	2,581,946		$	4,308,810		$	73,395		$	4,054,581		$	12,884,525		$	71,900,948		$	101,051,070
Cash & Cash Equivalents		1,141,309			38,045			160,348			17,673			123,723			795,809			1,601,735			3,878,642
Rent Receivable		197,191			75,733			1,293			3,309			2,211			19,042			147,332			446,111
Real Estate Tax Escrow		81,453			—			31,596			—			29,661			191,490			—			334,200
Prepaid Expenses & Other Assets		351,532			41,042			110,132			1,038			71,628			363,109			3,413,479			4,351,960
Total Assets	$	7,018,350		$	2,736,766		$	4,612,179		$	95,415		$	4,281,804		$	14,253,975		$	77,063,494		$	110,061,983
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,982,764		$	—		$	8,337,358		$	—		$	5,941,010		$	16,897,325		$	124,746,893		$	165,905,350
Accounts Payable & Accrued Expense		136,741			2,000			70,945			3,545			68,813			190,892			722,878			1,195,814
Advance Rental Pmts & Security Deposits		374,170			—			307,229			—			176,456			537,218			4,124,873			5,519,946
Total Liabilities		10,493,675			2,000			8,715,532			3,545			6,186,279			17,625,435			129,594,644			172,621,110
Partners’ Capital		(3,475,325)			2,734,766			(4,103,353)			91,870			(1,904,475)			(3,371,460)			(52,531,150)			(62,559,127)
Total Liabilities and Capital	$	7,018,350		$	2,736,766		$	4,612,179		$	95,415		$	4,281,804		$	14,253,975		$	77,063,494		$	110,061,983
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,367,383		$	—		$	45,935		$	—		$	—		$	—			1,413,318
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,737,662)		$	—		$	(2,051,676)		$	—		$	(952,238)		$	(1,685,730)		$	(21,012,460)			(27,439,766)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(26,026,448)
Total units/condominiums
Apartments		48			—			40			—			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Financial information for the six months ended June 30, 2024

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	918,853	$	120,942	$	891,084	$	51,633	$	711,617	$	2,057,301	$	8,529,299	$	13,280,729
Laundry and Sundry Income		6,344		—		(236)		—		—		25,244		95,538		126,890
		925,197		120,942		890,848		51,633		711,617		2,082,545		8,624,837		13,407,619
Expenses
Administrative		10,543		3,000		14,979		1,401		10,318		43,143		100,148		183,532
Depreciation and Amortization		231,911		5,855		172,796		1,632		166,005		533,325		1,837,161		2,948,685
Management Fees		37,186		4,132		34,954		2,068		28,309		82,234		180,292		369,175
Operating		176,997		—		41,384		(38)		64,776		244,472		750,508		1,278,099
Renting		7,634		—		9,776		63		9,691		56,737		52,816		136,717
Repairs and Maintenance		94,619		—		44,882		1,650		61,165		330,278		883,402		1,415,996
Taxes and Insurance		163,965		35,192		99,480		10,174		78,756		206,992		1,284,141		1,878,700
		722,855		48,179		418,251		16,950		419,020		1,497,181		5,088,468		8,210,904
Income Before Other Income		202,342		72,763		472,597		34,683		292,597		585,364		3,536,369		5,196,715
Other Income (Loss)
Interest Expense		(394,241)		—		(169,105)		—		(118,295)		(385,098)		(2,566,448)		(3,633,187)
Interest Income		21,250		1,190		4,629		418		5,463		22,651		45,289		100,890
Other income (Expense)		—		—		—		—		—		63,745		—		63,745
		(372,991)		1,190		(164,476)		418		(112,832)		(298,702)		(2,521,159)		(3,468,552)
Net (Loss) Income	$	(170,649)	$	73,953	$	308,121	$	35,101	$	179,765	$	286,662	$	1,015,212	$	1,728,163
Net (Loss) Income —NERA 50%	$	(85,324)	$	36,976	$	154,060	$	17,550	$	89,883	$	143,331				356,475
Net Income —NERA 40%													$	406,085		406,085
															$	762,560

23

Financial information for the three months ended June 30, 2024

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	450,375	$	60,471	$	447,328	$	24,745	$	360,169	$	1,049,070	$	4,181,290	$	6,573,448
Laundry and Sundry Income		3,568		—		(242)		—		—		12,580		50,108		66,014
		453,943		60,471		447,086		24,745		360,169		1,061,650		4,231,398		6,639,462
Expenses
Administrative		5,325		1,000		6,059		700		3,384		33,819		48,109		98,396
Depreciation and Amortization		116,067		2,928		86,398		816		83,272		272,073		923,409		1,484,963
Management Fees		16,759		1,653		17,537		1,006		14,079		42,043		88,411		181,488
Operating		93,958		—		15,519		174		19,202		110,070		312,204		551,127
Renting		6,395		—		5,681		45		4,161		29,150		20,424		65,856
Repairs and Maintenance		56,162		—		21,838		1,650		31,880		183,947		529,212		824,689
Taxes and Insurance		94,622		17,600		50,195		5,498		39,588		105,451		642,003		954,957
		389,288		23,181		203,227		9,889		195,566		776,553		2,563,772		4,161,476
Income Before Other Income		64,655		37,290		243,859		14,856		164,603		285,097		1,667,626		2,477,986
Other Income (Loss)
Interest Expense		(197,041)		—		(84,238)		(205)		(59,144)		(191,983)		(1,269,641)		(1,802,252)
Interest Income		10,829		419		2,268		418		2,980		9,801		24,616		51,331
		(186,212)		419		(81,970)		213		(56,164)		(182,182)		(1,245,025)		(1,750,921)
Net Income (Loss)	$	(121,557)	$	37,709	$	161,889	$	15,069	$	108,439	$	102,915	$	422,601	$	727,065
Net Income (Loss)—NERA 50%	$	(60,780)	$	18,854	$	80,944	$	7,535	$	54,220	$	51,459				152,230
Net Income —NERA 40%													$	169,039		169,039
															$	321,269

Future annual mortgage maturities at June 30, 2024 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
6/30/2025	$	—	$	244,563	$	—	$	16,900,000	$	—	$	17,144,563
6/30/2026		10,000,000		254,197		—		—		—		10,254,197
6/30/2027		—		264,211		—		—		—		264,211
6/30/2028		—		274,619		—		—		125,000,000		125,274,619
6/30/2029		—		7,326,402		—		—		—		7,326,402
Thereafter		—		—		6,000,000		—				6,000,000
		10,000,000		8,363,992		6,000,000		16,900,000		125,000,000		166,263,992
Less: unamortized deferred financing costs		(17,236)		(26,634)		(58,990)		(2,675)		(253,107)		(358,642)
	$	9,982,764	$	8,337,358	$	5,941,010	$	16,897,325	$	124,746,893	$	165,905,350

At June 30, 2024, the weighted average interest rate on the above mortgages was 4.23%. The effective rate was 4.29% including the amortization expense of deferred financing costs.

24

Summary financial information at June 30, 2023

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,614,141		$	2,584,435		$	4,650,472		$	76,659		$	4,324,746		$	12,985,301		$	74,525,027		$	104,760,781
Cash & Cash Equivalents		997,622			60,182			374,750			16,853			251,310			611,236			2,088,673			4,400,626
Rent Receivable		211,562			80,184			—			4,931			2,589			9,044			140,146			448,456
Real Estate Tax Escrow		67,281			—			23,412			—			43,542			139,831			—			274,066
Prepaid Expenses & Other Assets		326,548			50,175			104,393			1,049			42,306			248,929			2,635,666			3,409,066
Total Assets	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492		$	4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,968,975		$	—		$	8,565,993		$	—		$	5,932,827		$	16,881,274		$	124,682,270		$	166,031,339
Accounts Payable & Accrued Expense		165,149			1,500			124,185			2,660			74,550			196,773			816,401			1,381,218
Advance Rental Pmts& Security Deposits		309,790			—			335,465			—			192,370			515,070			3,506,661			4,859,356
Total Liabilities		10,443,914			1,500			9,025,643			2,660			6,199,747			17,593,117			129,005,332			172,271,913
Partners’ Capital		(3,226,760)			2,773,476			(3,872,616)			96,832			(1,535,254)			(3,598,776)			(49,615,820)			(58,978,918)
Total Liabilities and Capital	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492			4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,386,738		$	—		$	48,416		$			$			$			$	1,435,154
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,613,380)		$	—		$	(1,936,308)		$	—		$	(767,627)		$	(1,799,388)		$	(19,846,328)			(25,963,031)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(24,527,877)
Total units/condominiums
Apartments		48			—			40			0			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Financial information for the six months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	850,177	$	120,942	$	834,013	$	49,735	$	638,730	$	1,886,063	$	8,015,963	$	12,395,623
Laundry and Sundry Income		3,040		—				—						48,433		51,473
		853,217		120,942		834,013		49,735		638,730		1,886,063		8,064,396		12,447,096
Expenses
Administrative		10,531		1,500		13,043		1,871		9,482		38,973		113,118		188,518
Depreciation and Amortization		234,133		5,855		172,866		1,632		168,308		530,006		1,821,273		2,934,073
Management Fees		33,744		4,768		32,632		1,989		25,663		74,129		160,975		333,900
Operating		150,518		—		57,035		142		68,372		224,264		653,665		1,153,996
Renting		30,945		—		18,200		—		1,573		24,455		67,759		142,932
Repairs and Maintenance		95,955		—		62,538		—		44,233		336,730		894,898		1,434,354
Taxes and Insurance		141,245		30,681		94,286		8,704		70,400		262,939		1,271,219		1,879,474
		697,071		42,804		450,600		14,338		388,031		1,491,496		4,982,907		8,067,247
Income Before Other Income		156,146		78,138		383,413		35,397		250,699		394,567		3,081,489		4,379,849
Other Income (Loss)
Interest Expense		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
Net Income (Loss)	$	(202,706)	$	78,138	$	209,939	$	35,397	$	132,591	$	(6,176)	$	559,435	$	806,618
Net Income (Loss)—NERA 50%	$	(101,353)	$	39,070	$	104,970	$	17,699	$	66,296	$	(3,088)				123,593
Net Income —NERA 40%													$	223,774		223,774
															$	347,368

25

Financial information for the three months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	411,189	$	60,471	$	422,123	$	24,867	$	325,228	$	963,511	$	4,018,665	$	6,226,054
Laundry and Sundry Income		337		—				—				(15,429)		12,433		(2,659)
		411,526		60,471		422,123		24,867		325,228		948,082		4,031,098		6,223,395
Expenses
Administrative		5,791		750		9,574		951		5,607		26,269		65,111		114,053
Depreciation and Amortization		117,146		2,928		86,560		816		84,591		265,496		915,526		1,473,063
Management Fees		14,652		1,589		16,495		994		12,857		36,933		79,366		162,886
Operating		67,170		—		31,655		75		30,856		95,322		276,666		501,744
Renting		27,770		—		9,943		—		205		12,509		27,136		77,563
Repairs and Maintenance		41,487		—		38,327		—		23,299		183,276		576,924		863,313
Taxes and Insurance		70,311		15,224		47,111		4,203		35,042		130,566		647,645		950,102
		344,327		20,491		239,665		7,039		192,457		750,371		2,588,374		4,142,724
Income Before Other Income		67,199		39,980		182,458		17,828		132,771		197,711		1,442,724		2,080,671
Other Income (Loss)
Interest Expense		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
Net Income (Loss)	$	(119,340)	$	39,980	$	95,943	$	17,828	$	73,413	$	(15,655)	$	183,943	$	276,112
Net Income (Loss)—NERA 50%	$	(59,670)	$	19,990	$	47,972	$	8,914	$	36,708	$	(7,827)				46,087
Net Income —NERA 40%													$	73,577		73,577
															$	119,664

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NOTE 16. EMPLOYEE BENEFIT 401(k) PLANS

Employees of the Partnership, who meet certain minimum age and service requirements, are eligible to participate in the Management Company’s 401(k) Plan (the “401(k) Plan”). Eligible employees may elect to defer up to 90 percent of their eligible compensation on a pre-tax basis to the 401(k) Plan, subject to certain limitations imposed by federal law. 

The amounts contributed by employees are immediately vested and non-forfeitable. The Partnership matches 50% up to 6% of compensation deferred by each employee in the 401(k) plan. The Partnership may make discretionary matching or profit-sharing contributions to the 401(k) Plan on behalf of eligible participants in any plan year. Participants are always 100 percent vested in their pre-tax contributions and will begin vesting in any matching or profit-sharing contributions made on their behalf after two years of service with the Partnership at a rate of 20 percent per year, becoming 100 percent vested after a total of six years of service with the Partnership. Total expense recognized by the Partnership for the 401(k) Plan for the six months ended June 30, 2024 was $32,000.

NOTE 17. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

In November 2023, the FASB issued ASU 2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The guidance requires incremental disclosures related to a public entity’s reportable segments. ASU 2023-07 is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. The Partnership is currently evaluating the impact of adopting ASU 2023-07 will have on the Partnership's consolidated financial statements.

NOTE 18. SUBSEQUENT EVENTS

From July 1, 2024, through August 8, 2024, the Partnership has purchased 654 Depository Receipts. The average price was $70.86 per receipt, or $2,125.80 per unit. The total cost was $46,744. The Partnership is required to purchase 5.2 Class B units and 0.3 General Partnership units at a cost of $11,077 and $579, respectively.

On August 7, 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on September 30, 2024.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

Certain information contained herein includes forward looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Liquidation Reform Act of 1995 (the “Act”). Forward looking statements in this report, or which management may make orally or in written form from time to time, reflect management’s good faith belief when those statements are made, and are based on information currently available to management. Caution should be exercised in interpreting and relying on such forward looking statements, the realization of which may be impacted by known and unknown risks and uncertainties, events that may occur subsequent to the forward looking statements, and other factors which may be beyond the Partnership’s control and which can materially affect the Partnership’s actual results, performance or achievements for 2024 and beyond. Should one or more of the risks or uncertainties mentioned below materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We expressly disclaim any responsibility to update our forward looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends. For an additional discussion of factors that may affect the Partnership’s business and results of operations, see Item1A-Risk Factors in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31,2023.

Over a period of time both in 2021 and 2022, the Partnership took advantage of the low interest rate environment and refinanced fifteen properties, increased their loan balances, and raised approximately $130,000,000. With interest rates rising, and a threat of an economic slowdown, the Partnership increased the debt level and built cash reserves to acquire additional properties when opportunities become available. Currently, $83,636,000 of these reserves are invested in short-term US Treasury bills maturing in 6 months or less with interest rates between 5.08% and 5.27%.

Since the Partnership’s long-term goals include the acquisition of additional properties, a portion of the proceeds from the refinancing and sale of properties is reserved for this purpose. If available acquisitions do not meet the Partnership’s investment criteria, the Partnership may purchase additional depositary receipts. The Partnership will consider refinancing existing properties if the Partnership’s cash reserves are insufficient to repay existing mortgages or if the Partnership needs additional funds for future acquisitions.

On July 14, 2023, the Partnership purchased a mixed use property in the South End neighborhood of Boston, Massachusetts comprised of three buildings at 26-30 Rutland Street, 105-117 West Concord Street and 475 Shawmut Avenue, and approximately 3,400 square feet of commercial space for a purchase price of $27,500,000 with Partnership cash reserves.

The vacancy rate for the Partnership’s residential properties as of August 1, 2024 was 1.5% as compared with a vacancy rate of 1.8% as of August 1, 2023. The vacancy rate for the Joint Venture properties as of August 1, 2024 was 2.8%, as compared to 1.3% for the same period last year.

Residential tenants generally have lease terms of 12 months. The majority of these leases will mature during the second and third quarters of the year.

During the second quarter of 2024, rents increased an average of 6.4% for renewals and increased an average of 7.6% for new leases. For the balance of 2024, management expects a rental market with continued rent growth.

For the second quarter of 2024, consolidated revenue increased by10.8%, operating expenses increased by 1.1%, and Income before Other Income (Expense) increased by 38.0%, as compared to the second quarter of 2023.

For the second quarter of 2024, excluding the increase in income and expense from the Shawmut Apartments, consolidated revenue increased by 7.3%, operating expenses decreased by 3.2% and Income before Other Income (Expense) increased by 37.1%, as compared to the second quarter of 2023.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the

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Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. Prior to the line’s expiration in 2020, the Partnership exercised its option for a one-year extension until October 31, 2021. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

On October 29, 2021, the Partnership closed on the modification of its existing line of credit. The agreement extends the credit line for three years until October 29, 2024. The commitment amount is for $25 million but is restricted to $17 million during the modification period. The modification period was phased out by December 31, 2022. During the modification period, the loan covenants were modified from a minimum consolidated debt service ratio of 1.60 to a ratio of 1.35 until September 30, 2022; from a minimum tangible net worth requirement of $200 million to a net worth of $175 million until September 30, 2022; from a maximum consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022 and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30, 2022 and a yield of 9.0% until December 31, 2022. Once the financial performance of the Partnership meets the original covenant tests for the trailing 12-month period, the commitment amount will return to $25 million. As of June 30, 2024, the portfolio’s debt yield fell below the minimum of 9.5% to 9.3%, thus the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is restricted from drawing down any amount from the line of credit until the Partnership meets the required financial covenants. The Partnership is currently in discussions with a lender for a replacement line of credit.

From the start of the Stock Repurchase Program in 2007 through June 30, 2024, the Partnership has purchased 1,542,344 Depositary Receipts. During the six months ended June 30, 2024, the Partnership purchased a total of 10,110 Depositary Receipts.

On February 24, 2019, Harold Brown, the owner of 75% of the outstanding voting securities of NewReal, Inc. (“NewReal”), the general partner of New England Realty Associates Limited Partnership, passed away. As a result, the estate of Harold Brown held voting control over the capital stock of NewReal. On January 2, 2024, the estate was settled, with Jameson Brown and Harley Brown each assuming 37.5% ownership in NewReal. As of August 1, 2024, the Brown family related entities and Ronald Brown collectively own approximately 32.4% of the Depositary Receipts representing the Partnership Class A Units (including Depositary Receipts held by trusts for the benefit of such persons’ family members). Brown family related entities also control 75% of the Partnership’s Class B Units, and 75% of the capital stock of NewReal, the Partnership’s sole general partner. Ronald Brown also owns 25% of the Partnership’s Class B Units and 25% of the capital stock of NewReal. In addition, Ronald Brown is the President and a director of NewReal and Jameson Brown is Treasurer and a director of NewReal. Moreover, 75% of the issued and outstanding Class B units of the Partnership are owned by HBC Holdings LLC, an entity of which Jameson Brown is the manager. The outstanding stock of The Hamilton Company, Inc. is controlled by Jameson Brown and Harley Brown.

In addition to the Management Fee, the Partnership Agreement further provides for the employment of outside professionals to provide services to the Partnership and allows NewReal to charge the Partnership for the cost of employing professionals to assist with the administration of the Partnership’s properties. Additionally, from time to time, the Partnership pays Hamilton for repairs and maintenance services, legal services, construction services and accounting services. The costs charged by Hamilton for these services are at the same hourly rate charged to all entities managed by Hamilton, and management believes such rates are competitive in the marketplace.

Residential tenants sign a one year lease. During the six months ended June 30, 2024, tenant renewals were approximately 71% with an average rental increase of approximately 6.2%, new leases accounted for approximately 29% with rental rate increases of approximately 6.7%. During the six months ended June 30, 2024, leasing commissions were approximately $231,000 compared to approximately $197,000 for the six months ended June 30, 2023, an increase of approximately $34,000 (17.2%). Tenant concessions were approximately $78,000 for the six months ended June 30, 2024, compared to approximately $39,000 for the six months ended June 30, 2023, an increase of approximately $39,000 (100.0%). Tenant improvements were approximately $1,682,000 for the six months ended June 30, 2024, compared to approximately $4,866,000 for the six months ended June 30, 2023, a decrease of approximately $3,184,000 (65.4%).

Hamilton accounted for approximately 0.5% of the repair and maintenance expenses paid for by the Partnership during the six months ended June 30, 2024 and 2.5% during the six months ended June 30, 2023. Of the funds paid to Hamilton for this purpose, the great majority was to cover the cost of services provided by the Hamilton maintenance department, including plumbing, electrical, carpentry services, and snow removal for those properties close to

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Hamilton’s headquarters. Several of the larger Partnership properties have their own maintenance staff. Those properties that do not have their own maintenance staff and are located more than a reasonable distance from Hamilton’s headquarters in Allston, Massachusetts are generally serviced by local, independent companies.

Hamilton’s legal department handles most of the Partnership’s eviction and collection matters. Additionally, it prepares most long-term commercial lease agreements and represents the Partnership in selected purchase and sale transactions. Overall, Hamilton provided approximately $89,000 (43.7%) and approximately $108,000 (79.4%) of the legal services paid for by the Partnership during the six months ended June 30, 2024 and 2023 respectively.

Additionally, as described in Note 3 to the consolidated financial statements, The Hamilton Company receives similar fees from the Investment Properties.

The Partnership requires that three bids be obtained for construction contracts in excess of $15,000. Hamilton may be one of the three bidders on a particular project and may be awarded the contract if its bid and its ability to successfully complete the project are deemed appropriate. For contracts that are not awarded to Hamilton, Hamilton charges the Partnership a construction supervision fee equal to 5% of the contract amount. Hamilton’s architectural department also provides services to the Partnership on an as-needed basis. During the six months ended June 30, 2024, Hamilton provided the Partnership approximately $330,000 in construction and architectural services, compared to approximately $521,000 for the six months ended June 30, 2023.

Hamilton’s accounting staff perform bookkeeping and accounting functions for the Partnership. During the six months ended June 30, 2024 and 2023, Hamilton charged the Partnership $62,500 for bookkeeping and accounting services. For more information on related party transactions, see Note 3 to the Consolidated Financial Statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of the consolidated financial statements, in accordance with accounting principles generally accepted in the United States of America, requires the Partnership to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The Partnership regularly and continually evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties and its investments in and advances to joint ventures. The Partnership bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgment. The Partnership’s critical accounting policies are those which require assumptions to be made about such matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgments and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances. See Note 1 to the Consolidated Financial Statements, Principles of Consolidation.

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

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The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

If circumstances arise that previously were considered unlikely and, as a result, the Partnership decides not to sell a property previously classified as held for sale, the property is reclassified as held and used. A property that is reclassified is measured and recorded individually at the lower of (a) its carrying value before the property was classified as held for sale, adjusted for any depreciation (amortization) expense that would have been recognized had the property been continuously classified as held and used, or (b) the fair value at the date of the subsequent decision not to sell.

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. Costs directly related to the acquisition, development and construction of rental properties are capitalized. Capitalized development and construction costs include pre-construction costs, development and construction costs, regulatory fees, interest, property taxes, insurance, construction oversight fees, and other project costs incurred during the period of development. The Partnership considers a construction project as substantially completed and held available for occupancy upon the substantial completion of improvements, but no later than one year from cessation of major construction activity.

Intangible assets acquired include amounts for in-place lease values above and below market leases and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

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Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties may be impaired. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Investments in Treasury Bills: Investments in Treasury Bills are recorded at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury Bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury Bills is recognized in interest income in the Partnership’s consolidated statement of income.

Investments in Joint Ventures: The Partnership accounts for its 40%-50% ownership in the Investment Properties under the equity method of accounting, as it exercises significant influence over, but does not control these entities. These investments are recorded initially at cost, as Investments in Joint Ventures, and subsequently adjusted for the Partnership’s share in earnings, cash contributions and distributions. Under the equity method of accounting, our net equity is reflected on the consolidated balance sheets, and our share of net income or loss from the Partnership is included on the consolidated statements of income. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits.

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

With respect to investments in and advances to the Investment Properties, the Partnership looks to the underlying properties to assess performance and the recoverability of carrying amounts for those investments in a manner similar to direct investments in real estate properties. An impairment charge is recorded if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property.

Legal Proceedings: The Partnership is subject to various legal proceedings and claims that arise, from time to time, in the ordinary course of business. These matters are frequently covered by insurance. If it is determined that a loss is likely to occur, the estimated amount of the loss is recorded in the financial statements. Both the amount of the loss and the point at which its occurrence is considered likely can be difficult to determine.

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RESULTS OF OPERATIONS

Three Months Ended June 30, 2024 and June 30, 2023

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $6,538,000 during the three months ended June 30, 2024, compared to approximately $4,738,000 for the three months ended June 30, 2023, an increase of approximately $1,800,000 (38.0%).

The rental activity is summarized as follows:

	Occupancy Date
	August 1, 2024		August 1, 2023
Residential
Units	2,962		2,911
Vacancies	43		51
Vacancy rate	1.45	%	1.8	%
Commercial
Total square feet	131,159		128,635
Vacancy	1,273		1,461
Vacancy rate	1.00	%	1.3	%

	Rental Income (in thousands)
	Three Months Ended June 30,
	2024						2023
	Total			Continuing			Total			Continuing
	Operations			Operations			Operations			Operations
Total rents	$	19,842		$	19,842		$	17,965		$	17,965
Residential percentage		94	%		94	%		94	%		94	%
Commercial percentage		6	%		6	%		6	%		6	%
Contingent rentals	$	187		$	187		$	180		$	180

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Three Months Ended June 30, 2024 Compared to Three Months Ended June 30, 2023:

	Three Months Ended June 30,				Dollar		Percent
	2024		2023		Change		Change
Revenues
Rental income	$	19,841,559	$	17,964,963	$	1,876,596	10.4%
Laundry and sundry income		209,007		136,073		72,934	53.6%
		20,050,566		18,101,036		1,949,530	10.8%
Expenses
Administrative		651,978		867,721		(215,743)	(24.9%)
Depreciation and amortization		4,277,482		3,961,432		316,050	8.0%
Management fee		782,856		665,073		117,783	17.7%
Operating		1,638,816		1,721,233		(82,417)	(4.8%)
Renting		150,772		244,434		(93,662)	(38.3%)
Repairs and maintenance		3,500,467		3,479,071		21,396	0.6%
Taxes and insurance		2,510,031		2,423,722		86,309	3.6%
		13,512,402		13,362,686		149,716	1.1%
Income Before Other Income (Expense)		6,538,164		4,738,350		1,799,814	38.0%
Other Income (Expense)
Interest income		1,112,988		1,292,453		(179,465)	(13.9%)
Interest expense		(3,899,695)		(3,925,863)		26,168	(0.7%)
Income from investments in unconsolidated joint ventures		321,269		119,664		201,605	168.5%
		(2,465,438)		(2,513,746)		48,308	(1.9%)
Net Income	$	4,072,726	$	2,224,604	$	1,848,122	83.1%

Rental income for the three months ended June 30, 2024 was approximately $19,842,000, compared to approximately $17,965,000 for the three months ended June 30, 2023, an increase of approximately $1,877,000 (10.4%). Excluding the revenue increase from Shawmut Apartments of approximately $614,000, there was an increase of approximately $1,262,000 (7.0%).

The Partnership properties with the largest increases in rental income include 62 Boylston Street, Hamilton Oaks, 1144 Commonwealth, Mill Street Gardens, Woodland Park and Westgate Apartments, with increases of $210,000, $150,000, $112,000, $76,000, $64,000 and $63,000 respectively. Included in rental income is contingent rentals collected on commercial properties. Contingent rentals include such charges as bill backs of common area maintenance charges, real estate taxes, and utility charges.

Operating expenses for the three months ended June 30, 2024 were approximately $13,512,000 compared to approximately $13,363,000 for the three months ended June 30, 2023, an increase of approximately $150,000 (1.1%). Excluding expenses from Shawmut Apartments of approximately $580,000, operating expenses were approximately $12,932,000, a decrease of approximately $431,000 (3.2%). The factors contributing to the decrease are a decrease in administrative expenses of approximately $221,000 (25.5%), a decrease in operating expenses of approximately $132,000 (7.7%), and a decrease in depreciation and amortization expense of approximately $125,000 (3.5%).

Interest expense for the three months ended June 30, 2024 was approximately $3,900,000 compared to approximately $3,926,000 for the three months ended June 30, 2023, a decrease of approximately $26,000 (0.7%).

Interest and dividend income for the three months ended June 30, 2024 was approximately $1,113,000 compared to approximately $1,292,000 for the three months ended June 30, 2023, a decrease of approximately $179,000 (13.9%). Interest income is from investments in Treasury Bills which mature over a period less than 180 days, with interest rates between 5.08% to 5.27%.

At June 30 2024, the Partnership has between a 40% and 50% ownership interests in seven different Investment Properties. See a description of these properties included in the section titled Investment Properties as well as Note 15 to the Consolidated Financial Statements for a detail of the financial information of each Investment Property.

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As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $321,000 for the three months ended June 30, 2024, compared to net income of approximately $119,000 for the three months ended June 30, 2023, an increase in income of approximately $202,000 (168.5%). This increase is primarily due to an increase in rental revenue to approximately $2,869,000 from $2,711,000, an increase of approximately $158,000 (5.8%) for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Included in the income for the three months ended June 30, 2023 is depreciation and amortization expense of approximately $650,000.

As a result of the changes discussed above, net income for the three months ended June 30, 2024 was approximately $4,073,000 compared to net income of approximately $2,225,000 for the three months ended June 30, 2023, an increase in income of approximately $1,848,000 (83.1%).

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Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023:

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, and other expense of approximately $12,290,000 during the six months ended June 30, 2024, compared to approximately $9,190,000 for the six months ended June 30, 2023, an increase of approximately $3,100,000 (33.7%).

	Six Months Ended June 30,				Dollar		Percent
	2024		2023		Change		Change
Revenues
Rental income	$	39,551,991	$	35,533,690	$	4,018,301	11.3%
Laundry and sundry income		391,974		259,032		132,942	51.3%
		39,943,965		35,792,722		4,151,243	11.6%
Expenses
Administrative		1,413,997		1,604,822		(190,825)	(11.9%)
Depreciation and amortization		8,505,064		7,807,693		697,371	8.9%
Management fee		1,571,463		1,362,837		208,626	15.3%
Operating		4,284,310		4,255,029		29,281	0.7%
Renting		538,371		436,019		102,352	23.5%
Repairs and maintenance		6,348,424		6,241,845		106,579	1.7%
Taxes and insurance		4,992,399		4,894,401		97,998	2.0%
		27,654,028		26,602,646		1,051,382	4.0%
Income Before Other Income ( Expense)		12,289,937		9,190,076		3,099,861	33.7%
Other Income (Expense)
Interest income		2,290,536		2,267,000		23,536	1.0%
Interest (expense)		(7,806,711)		(7,825,103)		18,392	(0.2%)
Income from investments in unconsolidated joint ventures		762,560		347,368		415,192	119.5%
		(4,753,615)		(5,210,735)		457,120	(8.8%)
Net Income	$	7,536,322	$	3,979,341	$	3,556,981	89.4%

Rental income for the six months ended June 30, 2024 was approximately $39,551,000, compared to approximately $35,533,000 for the six months ended June 30, 2023, an increase of approximately $4,018,000 (11.3%). Excluding revenues from Shawmut Apartments of approximately $1,197,000, revenue increased approximately $2,821,000 (7.9%). Included in rental income is contingent rentals collected on commercial properties. The Partnership properties with the largest increases in rental income include Hamilton Oaks, 62 Boylston, 1144 Commonwealth, Mill Street Gardens, Westgate Apartments, and Hamilton Green, with increases of $319,000, $298,000, $294,000, $206,000, $141,000 and $141,000 respectively. Included in rental income is contingent rentals collected on commercial properties. Contingent rentals include such charges as bill backs of common area maintenance charges, real estate taxes, and utility charges.

Operating expenses for the six months ended June 30, 2024 were approximately $27,654,000 compared to approximately $26,603,000 for the six months ended June 30, 2023, an increase of approximately $1,051,000 (4.0%), Excluding operating costs for Shawmut Apartments of approximately $1,151,000, operating expenses decreased approximately $99,000 (0.4%). The factors contributing to the decrease are a decrease in administrative expenses of approximately $197,000 (12.3%), a decrease in depreciation and amortization expense of approximately $184,000 (2,4%), partially offset by an increase in management fees of approximately $170,000 (12.4%).

Interest expense for the six months ended June 30, 2024 was approximately $7,807,000 compared to approximately $7,825,000 for the six months ended June 30, 2023, a decrease of approximately $18,000 (0.2%).

At June 30, 2024, the Partnership has between a 40% and 50% ownership interests in seven different Investment Properties. See a description of these properties included in the section titled Investment Properties as well as Note 15 to the Consolidated Financial Statements for a detail of the financial information of each Investment Property.

As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $762,000 for the six months ended June 30, 2024, compared to net income of approximately $347,000 for the six months ended June 30, 2023, an increase in income of approximately

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$415,000 (119.5%). This increase is primarily due to an increase in rental revenue of approximately $ 5,787,000 for the six months ended June 30, 2024 from approximately $5,397,000 for the six months ended June 30, 2023, an increase of approximately $390,000 (7.2%). Included in the income for the six months ended June 30, 2024 is depreciation and amortization expense of approximately $1,291,000.

As a result of the changes discussed above, net income for the six months ended June 30, 2024 was approximately $7,536,000 compared to income of approximately $3,979,000 for the six months ended June 30, 2023, an increase in net income of approximately $3,557,000 (89.4%).

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LIQUIDITY AND CAPITAL RESOURCES

The Partnership’s principal source of cash during the first six months of 2024 and 2023 was the collection of rents. The Partnership’s principal use of cash during the first six months of 2024 was the construction of the Mill Street Development, improvements to rental properties, mortgage principal payments, purchases of U.S. Treasury bills, and distributions to partners. The Partnership’s principal use of cash during the first six months of 2023 was the purchase of U.S. Treasury bills, and the purchase of a commercial property at 653 Worcester Road for approximately $10,000,000.

The majority of cash and cash equivalents of $13,463,294 at June 30, 2024 and $18,230,463 at December 31, 2023 were held in interest bearing accounts at creditworthy financial institutions.

The decrease in cash of $4,767,169 for the six months ended June 30, 2024 is summarized as follows:

	Six Months Ended June 30,
	2024		2023
Cash provided by operating activities	$	11,487,102	$	6,499,216
Cash (used in) provided by investing activities		(5,517,101)		9,379,938
Principal payments of mortgage notes payable		(1,392,912)		(1,321,579)
Repurchase of Depositary Receipts, Class B and General Partner Units		(901,124)		(1,289,374)
Distributions paid		(8,443,134)		(7,128,758)
Net (decrease) increase in cash and cash equivalents	$	(4,767,169)	$	6,139,443

The net increase in cash provided by operating activities is due to various factors, including a change in depreciation expense, a change in income and distribution from joint ventures, and other factors. The net decrease in cash used in investing activities is primarily for the improvement of rental properties, including the Mill Street Development project. Financing activities include mortgage principal payments and distributions to partners, and repurchase of depositary receipts.

During 2024, the Partnership and its Subsidiary Partnerships have completed improvements to certain of the Properties at a total cost of approximately $4,943,000. These improvements were funded from cash reserves. Cash reserves have been adequate to fully fund improvements. Cash reserves used for the Mill Street Development Project were approximately $4,186,000. Beyond the Mill Street Development Project, the most significant improvements were made at Executive Apartments, River Drive Apartments, 1144 Commonwealth, Hamilton Oaks, Dean Street Associates, and Westgate Woburn at a cost of approximately $1,173,000, $858,000, $687,000, $422,000, $236,000 and $212,000 respectively.

During the six months ended June 30, 2024, the Partnership received distributions of approximately $1,523,000 from the investment properties. For the six months ended June 30, 2023, the Partnership received $1,634,000 in distributions from the investment properties. Included in these net distributions is the amount from Dexter Park of approximately $1,100,000 and $920,000 for the six months ended June 30, 2024 and 2023, respectively.

In May 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on June 28, 2024. In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), which was paid on March 28, 2024. In addition to the quarterly distribution, there was a special distribution of $48.00 per Class A unit ($1.60 per Receipt) payable on March 28, 2024.

The Partnership anticipates that cash from operations will be sufficient to fund its current operations, pay distributions, and make required debt payments. The Partnership anticipates that the Mill Street Development project will require approximately $30 million in spending over the next two years, with approximately $10 million to be spent in 2024 and approximately $20 million to be spent in 2025. Construction is expected to be completed during the fourth quarter of 2025.

Off-Balance Sheet Arrangements—Joint Venture Indebtedness

As of June 30, 2024, the Partnership had a 40%-50% ownership interest in seven Joint Ventures, five of which have mortgage indebtedness. We do not have control of these partnerships and therefore we account for them using the

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equity method of consolidation. At June 30, 2024, our proportionate share of the non-recourse debt related to these investments was approximately $70,632,000. See Note 15 to the Consolidated Financial Statements.

Contractual Obligations

As of June 30, 2024, we are subject to contractual payment obligations as described in the table below.

				Payments due by period
		2025		2026		2027		2028		2029		Thereafter		Total
Contractual Obligations
Long -term debt
Mortgage debt	$	3,195,785		21,931,681		6,595,124		23,165,469		58,326,713		296,831,857	$	410,046,629
Total Contractual Obligations	$	3,195,785	$	21,931,681	$	6,595,124	$	23,165,469	$	58,326,713	$	296,831,857	$	410,046,629

*Excluding unamortized deferred financing costs

We have various standing or renewable service contracts with vendors related to our property management. In addition, we have certain other contracts we enter into in the ordinary course of business that may extend beyond one year. These contracts are not included as part of our contractual obligations because they include terms that provide for cancellation with insignificant or no cancellation penalties.

See Notes 5 and 15 to the Consolidated Financial Statements for a description of mortgage notes payable. The Partnerships has no other material contractual obligations to be disclosed.

Factors That May Affect Future Results

Along with risks detailed in Item 1A of the Partnership’s Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission on March 14, 2024 and from time to time in the Partnership’s other filings with the Securities and Exchange Commission, some factors that could cause the Partnership’s actual results, performance or achievements to differ materially from those expressed or implied by forward looking statements include but are not limited to the following:

● The Partnership depends on the real estate markets where its properties are located, primarily in Eastern Massachusetts, and these markets may be adversely affected by local economic market conditions, which are beyond the Partnership’s control.

● The Partnership is subject to the general economic risks affecting the real estate industry, such as dependence on tenants’ financial condition, the need to enter into new leases or renew leases on terms favorable to tenants in order to generate rental revenues and our ability to collect rents from our tenants.

● The Partnership is also impacted by changing economic conditions making alternative housing arrangements more or less attractive to the Partnership’s tenants, such as the interest rates on single family home mortgages and the availability and purchase price of single family homes in the Greater Boston metropolitan area.

● The Partnership is subject to significant expenditures associated with each investment, such as debt service payments, real estate taxes, insurance and maintenance costs, which are generally not reduced when circumstances cause a reduction in revenues from a property.

● Our actual costs to develop properties may exceed our budgeted costs.

● The Partnership is subject to increases in heating and utility costs that may arise as a result of economic and market conditions and fluctuations in seasonal weather conditions.

● Civil disturbances, earthquakes and other natural disasters may result in uninsured or underinsured losses.

● Actual or threatened terrorist attacks may adversely affect our ability to generate revenues and the value of our properties.

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● Financing or refinancing of Partnership properties may not be available to the extent necessary or desirable, or may not be available on favorable terms.

● The Partnership properties face competition from similar properties in the same market. This competition may affect the Partnership’s ability to attract and retain tenants and may reduce the rents that can be charged.

● Given the nature of the real estate business, the Partnership is subject to potential environmental liabilities. These include environmental contamination in the soil at the Partnership’s or neighboring real estate, whether caused by the Partnership, previous owners of the subject property or neighbors of the subject property, and the presence of hazardous materials in the Partnership’s buildings, such as asbestos, lead, mold and radon gas. Management is not aware of any material environmental liabilities at this time.

● Insurance coverage for and relating to commercial properties is increasingly costly and difficult to obtain. In addition, insurance carriers have excluded certain specific items from standard insurance policies, which have resulted in increased risk exposure for the Partnership. These include insurance coverage for acts of terrorism and war, and coverage for mold and other environmental conditions. Coverage for these items is either unavailable or prohibitively expensive.

● Market interest rates could adversely affect market prices for Class A Partnership Units and Depositary Receipts as well as performance and cash flow.

● Changes in income tax laws and regulations may affect the income taxable to owners of the Partnership. These changes may affect the after-tax value of future distributions.

● The Partnership may fail to identify, acquire, construct or develop additional properties; may develop or acquire properties that do not produce a desired or expected yield on invested capital; may be unable to sell poorly-performing or otherwise undesirable properties quickly; or may fail to effectively integrate acquisitions of properties or portfolios of properties.

● Risk associated with the use of debt to fund acquisitions and developments.

● Competition for acquisitions may result in increased prices for properties.

● Any weakness identified in the Partnership’s internal controls as part of the evaluation being undertaken could have an adverse effect on the Partnership’s business.

● Ongoing compliance with Sarbanes-Oxley Act of 2002 may require additional personnel or systems changes.

The foregoing factors should not be construed as exhaustive or as an admission regarding the adequacy of disclosures made by the Partnership prior to the date hereof or the effectiveness of said Act. The Partnership expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the exposure to loss resulting from changes in interest rates and equity prices. In pursuing its business plan, the primary market risk to which the Partnership is exposed is interest rate risk. Changes in the general level of interest rates prevailing in the financial markets may affect the spread between the Partnership’s yield on invested assets and cost of funds and, in turn, its ability to make distributions or payments to its investors.

As of June 30, 2024, the Partnership, its Subsidiary Partnerships and the Investment Properties collectively have approximately $576,311,000 in long-term debt, substantially all of which require payment of interest at fixed rates. Accordingly, the fair value of these debt instruments is affected by changes in market interest rates. This long term debt matures through 2035. The Partnership, its Subsidiary Partnerships and the Investment Properties collectively have variable rate debt of $10,000,000 (without taking out unamortized deferred financing costs) as of June 30, 2024. Interest rates ranged from SOFR plus 170 basis points to SOFR plus 310 basis points. Assuming interest-rate caps are not in effect, if market rates of interest on the Partnership’s variable rate debt increased or decreased by 100 basis points, then the increase or decrease in interest costs on the Partnership’s variable rate debt would be approximately $50,000 annually and the increase or decrease in the fair value of the Partnership’s fixed rate debt as of June 30, 2024 would be approximately $20,972,000. For information regarding the fair value and maturity dates of these debt obligations, See Note 5 to the Consolidated Financial Statements — “Mortgage Notes Payable,” Note 12 to the Consolidated Financial Statements — “Fair Value Measurements” and Note 15 to the Consolidated Financial Statements — “Investment in Unconsolidated Joint Ventures”.

For additional disclosure about market risk, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors That May Affect Future Results”

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures. The Partnership’s management, with the participation of the Partnership’s principal executive officer and principal financial officer, has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Partnership’s principal executive officer and principal financial officer have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Partnership in the reports that it files or submits under the Exchange Act.

Changes in Internal Control over Financial Reporting. There were no other changes in the Management Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13a-15 that occurred during the quarter ended June 30, 2024 that have materially affected or are reasonably likely to materially affect, the Management Company’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

There are no material legal proceedings, other than ordinary routine litigation incidental to its business, to which the Partnership is a party to or to which any of the Properties is subject.

Item 1A. Risk Factors

There have been no material changes to the Risk Factors in Item 1A, “Risk Factors” in our annual report on Form 10K for the year ended December 31, 2023.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) None

(b) None

(c) Issuer Purchase of Equity Securities during the second quarter of 2024:

				Remaining number
			Depositary Receipts	of Depositary Receipts
			Purchased as Part	that may be purchased
	Average		of Publicly	Under the Plan
Period	Price Paid		Announced Plan	(as Amended)
April 1-30, 2024	$	70.84	1,546	463,360
May 1-31, 2024	$	71.61	5,471	457,889
June 1-30, 2024	$	72.69	235	457,654
Total			7,252

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). Over time, the General Partner has authorized increases in the equity repurchase program. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. On March 9, 2020, the General Partner extended the program for an additional five years from March 31, 2020 to March 31, 2025. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restated Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions.

From August 20, 2007 through June 30, 2024, the Partnership has repurchased 1,542,344 Depositary Receipts at an average price of $31.59 per receipt (or $947.7 per underlying Class A Unit), 4,474 Class B Units and 236 General Partnership Units, both at an average price of $1,274.00 per Unit, totaling approximately $55,322,000 including brokerage fees paid by the Partnership.

During the six months ended June 30, 2024, the Partnership purchased a total of 10,110 Depositary Receipts. The average price was $71.16 per receipt, or $2,134.80 per unit. The cost including commission was approximately $721,000. The Partnership was required to repurchase 80 Class B Units and 4.2 General Partnership units at a cost of $170,872 and $8,993 respectively.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosure

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

See the exhibit index below.

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
(31.1)	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Ronald Brown, Principal Executive Officer of the Partnership (President and a Director of NewReal, Inc., sole General Partner of the Partnership).
(31.2)	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Jameson Brown, Principal Financial Officer of the Partnership (Treasurer and a Director of NewReal, Inc., sole General Partner of the Partnership).
(32.1)	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Ronald Brown, Principal Executive Officer of the Partnership (President and a Director of NewReal, Inc., sole General Partner of the Partnership) and Jameson Brown, Principal Financial Officer of the Partnership (Treasurer and a Director of NewReal, Inc., sole General Partner of the Partnership).
(101.1)	The following financial statements from New England Realty Associates Limited Partnership Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL (eXtensible Business Property Language: (i) Consolidated Balance Sheets, (unaudited) (ii) Consolidated Statements of Income, (unaudited) (iii) Consolidated Statements of Changes in Partners’ Capital, (unaudited) (iv) Consolidated Statements of Cash Flows, (unaudited) and (v) Notes to Consolidated Financial Statements, (unaudited) (filed herewith).
(104)	Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
By:	/s/ NEWREAL, INC.
	Its General Partner
By:	/s/ RONALD BROWN
	Ronald Brown, President
Dated: August 8, 2024

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ RONALD BROWN	President and Director of the General Partner	August 8, 2024
Ronald Brown	(Principal Executive Officer)
/s/ JAMESON BROWN	Treasurer and Director of the General Partner	August 8, 2024
Jameson Brown	(Principal Financial Officer and Principal Accounting Officer)
/s/ MARTINA ALIBRANDI	Director of the General Partner	August 8, 2024
Martina Alibrandi
/s/ DAVID ALOISE	Director of the General Partner	August 8, 2024
David Aloise
/s/ ANDREW BLOCH	Director of the General Partner	August 8, 2024
Andrew Bloch
/s/ SALLY MICHAEL	Director of the General Partner	August 8, 2024
Sally Michael
/s/ DAVID REIER	Director of the General Partner	August 8, 2024
David Reier

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EX-31.1

Exhibit 31.1

New England Realty Associates Limited Partnership

CERTIFICATION

I, Ronald Brown, certify that:

1. I have reviewed this quarterly report on Form 10-Q of New England Realty Associates Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ RONALD BROWN
	Principal Executive Officer (President and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: August 8, 2024

EX-31.2

Exhibit 31.2

New England Realty Associates Limited Partnership

CERTIFICATIONS

I, Jameson Brown, certify that:

1. I have reviewed this quarterly report on Form 10-Q of New England Realty Associates Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ JAMESON BROWN
	Principal Financial Officer
	(Treasurer and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: August 8, 2024

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of New England Realty Associates Limited Partnership for the six months ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ronald Brown, as President and Director of the Partnership’s General Partner, NewReal, Inc., and Jameson Brown, the Treasurer and a Director of the Partnership’s General Partner, NewReal, Inc., each hereby certifies, pursuant to 18.U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

	/s/ Ronald Brown
	Ronald Brown
	Principal Executive Officer
	(President and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: August 8, 2024
	/s/ Jameson Brown
	Jameson Brown
	Principal Financial Officer
	(Treasurer and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: August 8, 2024

This certification accompanies each Report pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Partnership for purposes of §18 of the Security Exchange Act of 1934, as amended.

A signed original of this written statement required by §906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 08, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Securities Act File Number	001-31568
Entity Registrant Name	New England Realty Associates Limited Partnership
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2619298
Entity Address, Postal Zip Code	02134
Entity Address, Address Line One	39 Brighton Avenue
Entity Address, City or Town	Allston
Entity Address, State or Province	MA
City Area Code	617
Local Phone Number	783-0039
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Class A
Trading Symbol	NEN
Security Exchange Name	NYSEAMER
Entity Central Index Key	0000746514
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		93,586
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		22,227

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CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Rental Properties	$ 271,071,285	$ 269,804,946
Cash and Cash Equivalents	13,463,294	18,230,463
Rents Receivable	1,028,438	953,761
Real Estate Tax Escrows	2,385,456	2,229,703
Investment in U.S. Treasury Bills	84,789,084	84,700,751
Prepaid Expenses and Other Assets	9,549,493	8,369,775
Investments in Unconsolidated Joint Ventures	1,413,318	1,441,291
Total Assets	383,700,368	385,730,690
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	407,457,271	408,660,292
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture	27,439,766	26,707,807
Accounts Payable and Accrued Expenses	5,394,443	5,720,088
Advance Rental Payments and Security Deposits	10,396,651	9,996,887
Total Liabilities	450,688,131	451,085,074
Commitments and Contingent Liabilities (Notes 3 and 9)
Partners' Capital 117,010 and 117,431 units outstanding in 2024 and 2023 respectively	(66,987,763)	(65,354,384)
Total Liabilities and Partners' Capital	$ 383,700,368	$ 385,730,690

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Partners' Capital, units outstanding	117,010	117,431	118,661	119,255

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CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues
Rental income	$ 19,841,559	$ 17,964,963	$ 39,551,991	$ 35,533,690
Laundry and sundry income	209,007	136,073	391,974	259,032
Total Revenues	20,050,566	18,101,036	39,943,965	35,792,722
Expenses
Administrative	651,978	867,721	1,413,997	1,604,822
Depreciation and amortization	4,277,482	3,961,432	8,505,064	7,807,693
Management fee	782,856	665,073	1,571,463	1,362,837
Operating	1,638,816	1,721,233	4,284,310	4,255,029
Renting	150,772	244,434	538,371	436,019
Repairs and maintenance	3,500,467	3,479,071	6,348,424	6,241,845
Taxes and insurance	2,510,031	2,423,722	4,992,399	4,894,401
Total Expenses	13,512,402	13,362,686	27,654,028	26,602,646
Income Before Other Income (Expense)	6,538,164	4,738,350	12,289,937	9,190,076
Other Income (Expense)
Interest income	1,112,988	1,292,453	2,290,536	2,267,000
Interest expense	(3,899,695)	(3,925,863)	(7,806,711)	(7,825,103)
Income (loss) from investments in unconsolidated joint ventures	321,269	119,664	762,560	347,368
Total Other Income (Expense)	(2,465,438)	(2,513,746)	(4,753,615)	(5,210,735)
Net Income	$ 4,072,726	$ 2,224,604	$ 7,536,322	$ 3,979,341
Income per Unit
Net Income per Unit	$ 34.77	$ 18.73	$ 64.28	$ 33.45
Weighted Average Number of Units Outstanding	117,139	118,764	117,247	118,971

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 4,072,726	$ 2,224,604	$ 7,536,322	$ 3,979,341
Other comprehensive income (loss):
Net unrealized gain on derivative instruments for interest rate swaps	32,524	168,002	174,558	2,115
Comprehensive income	$ 4,105,250	$ 2,392,606	$ 7,710,880	$ 3,981,456

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CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($)	Subtotal	Class A	Class B	General Partnership	Treasury Units	Accumulated Comprehensive Income	Total
Balance at Dec. 31, 2022		$ (48,160,462)	$ (11,403,635)	$ (600,191)		$ 294,931	$ (59,869,357)
Balance (in units) at Dec. 31, 2022	180,225	144,180	34,243	1,802	60,970		119,255
Increase (Decrease) in Partners' Capital
Distribution to Partners		$ (5,703,006)	$ (1,354,464)	$ (71,288)			$ (7,128,758)
Stock Buyback		(1,031,739)	(244,753)	(12,882)			$ (1,289,374)
Stock Buyback (in units)					594		(594)
Net Income (Loss)		3,183,473	756,075	39,793			$ 3,979,341
Net unrealized gain on derivative instruments for interest rate swaps						2,115	2,115
Balance at Jun. 30, 2023		$ (51,711,734)	$ (12,246,777)	$ (644,568)		297,046	$ (64,306,033)
Balance (in units) at Jun. 30, 2023	180,225	144,180	34,243	1,802	61,564		118,661
Balance at Dec. 31, 2023		$ (52,503,128)	$ (12,433,251)	$ (654,383)		236,377	$ (65,354,384)
Balance (in units) at Dec. 31, 2023	180,225	144,180	34,243	1,802	62,794		117,431
Increase (Decrease) in Partners' Capital
Distribution to Partners		$ (6,754,507)	$ (1,604,196)	$ (84,431)			$ (8,443,134)
Stock Buyback		(721,259)	$ (170,872)	$ (8,993)			$ (901,124)
Stock Buyback (in units)			(80.0)	(4.2)	421		(421)
Net Income (Loss)		6,029,058	$ 1,431,901	$ 75,363			$ 7,536,322
Net unrealized gain on derivative instruments for interest rate swaps						174,558	174,558
Balance at Jun. 30, 2024		$ (53,949,836)	$ (12,776,418)	$ (672,444)		$ 410,935	$ (66,987,763)
Balance (in units) at Jun. 30, 2024	180,225	144,180	34,243	1,802	63,215		117,010

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash Flows from Operating Activities
Net Income	$ 7,536,322	$ 3,979,341
Adjustments to reconcile net income to net cash provided by operating activities
Interest accrued on U.S. Treasury bills	(2,259,599)	(2,051,676)
Depreciation and amortization	8,505,064	7,807,693
Amortization of deferred finance costs	189,892	189,892
(Income) from investments in joint ventures	(762,560)	(347,368)
Change in operating assets and liabilities
Proceeds from unconsolidated joint ventures	82,500	59,000
(Increase) in rents receivable	(74,677)	(113,898)
(Decrease) in accounts payable and accrued expense	(624,234)	(1,704,508)
(Increase) in real estate tax escrow	(155,753)	(206,239)
(Increase) in prepaid expenses and other assets	(1,349,617)	(1,958,461)
Increase in advance rental payments and security deposits	399,764	845,440
Total Adjustments	3,950,780	2,519,875
Net cash provided by operating activities	11,487,102	6,499,216
Cash Flows From Investing Activities
Distribution in excess of investment in unconsolidated joint ventures	1,440,000	1,575,000
Investment in U.S. Treasury bills	(83,635,733)	(68,355,526)
Proceeds from U.S. Treasury bills	85,807,000	90,000,000
Developing of rental property and other related costs	(4,185,791)
Purchase of rental property		(8,974,242)
Improvement of rental properties	(4,942,577)	(4,865,294)
Net cash (used in) investing activities	(5,517,101)	9,379,938
Cash Flows from Financing Activities
Principal payments of mortgage notes payable	(1,392,912)	(1,321,579)
Stock buyback	(901,124)	(1,289,374)
Distributions to partners	(8,443,134)	(7,128,758)
Net cash provided by (used in) financing activities	(10,737,170)	(9,739,711)
Net (Decrease) Increase in Cash and Cash Equivalents	(4,767,169)	6,139,443
Cash and Cash Equivalents, at beginning of period	18,230,463	49,560,723
Cash and Cash Equivalents, at end of period	$ 13,463,294	$ 55,700,166

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2024

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business: New England Realty Associates Limited Partnership (“NERA”, the “Company” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 31 properties which include 22 residential buildings; 5 mixed use residential, retail and office buildings; 4 commercial buildings and individual units at one condominium complex. These properties total 2,943 apartment units, 19 condominium units and approximately 130,000 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 7 residential and mixed use properties consisting of 688 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgments and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances.

Principles of Consolidation: The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the seven limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of some investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the

variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing

activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. Costs directly related to the acquisition, development and construction of rental properties are capitalized. Capitalized development and construction costs include pre-construction costs, development and construction costs, regulatory fees, interest, property taxes, insurance, construction oversight fees, and other project costs incurred during the period of development. The Partnership considers a construction project as substantially completed and held available for occupancy upon the substantial completion of improvements, but no later than one year from cessation of major construction activity.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $190,000 and $190,000 for the six months ended June 30, 2024 and 2023, respectively.

Derivative Instruments: The Partnership measures derivative instruments, including certain derivative instruments embedded in other contracts, at fair value and records them as an asset or liability, depending upon the Partnership’s rights or obligations under the applicable derivative contract. For derivatives designated and qualifying as fair value hedges, the changes in the fair value of both the derivative instrument and the hedged item are recorded in earnings. For derivatives designated as cash flow hedges, the effective portions of the derivative are reported in other comprehensive income (“OCI”) and are subsequently reclassified into earnings when the hedged item affects earnings. Changes in fair value of derivative instruments not designated as hedging and ineffective portions of hedges are recognized in earnings in the affected period.

Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes has been recorded (See Note 14).

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less at the time of purchase, including its investment in money market funds.

Investments in Treasury Bills: Investments in U.S. Treasury bills are recorded at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury bills is recognized in interest income in the Partnership’s consolidated statement of income.

Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment.

Other Comprehensive Income (Loss): Other comprehensive income (loss) includes items that are recorded in equity, such as effective portions of derivatives designated as cash flow hedges or unrealized holding gains or losses on marketable securities available for sale. NERA had comprehensive income of approximately $175,000 and a comprehensive income of approximately $2,000 for the six months ended June 30, 2024 and 2023, respectively.

Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3-for-1 forward split.

Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partners’ Capital).

Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2024 or 2023. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At June 30, 2024, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 4.07%. At June 30, 2024 and December 31, 2023, respectively, approximately $14,809,000, and $18,711,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense: Advertising is expensed as incurred. Advertising expense was approximately $177,000 and $193,000 for the six months ended June 30, 2024, and 2023, respectively.

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the six months ended June 30, 2023 there was no capitalized interest.

Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However, if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancings qualify as extinguishment of debt.

Reclassification: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

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RENTAL PROPERTIES

6 Months Ended

Jun. 30, 2024

RENTAL PROPERTIES.

RENTAL PROPERTIES

NOTE 2. RENTAL PROPERTIES

As of June 30, 2024, the Partnership and its Subsidiary Partnerships owned 2,943 residential apartment units in 27 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

Additionally, as of June 30, 2024, the Partnership and Subsidiary Partnerships owned two commercial shopping centers in Framingham, commercial buildings in Newton and Brookline and commercial space in mixed-use properties in Boston, Brockton and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.”

The Partnership also owned a 40% to 50% ownership interest in seven residential and mixed use complexes (the “Investment Properties”) at June 30, 2024 with a total of 688 apartment units, accounted for using the equity method of consolidation. See Note 15 for summary information on these investments.

The Partnership purchased a commercial retail property of approximately 20,700 square feet, located at 653 Worcester Road in Framingham, Massachusetts for the sum of approximately $10,151,000 on January 18, 2023. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $59,000. From the purchase price, the Partnership allocated approximately $585,000 for in-place leases, and approximately $378,000 to the value of tenant relationships. These amounts are being amortized over 12 and 156 months respectively.

On July 14, 2023, the Partnership purchased a 52 unit mixed use property in the South End neighborhood of Boston, Massachusetts comprised of three buildings at 26-30 Rutland Street, 105-117 West Concord Street and 475 Shawmut Avenue, and approximately 3,400 square feet of commercial space for a purchase price of approximately $27,500,000. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $81,000. From the purchase price, the Partnership allocated approximately $525,000 for in-place leases, approximately $61,000 to the value of tenant relationships and $241,000 to the value of below-market leases. These amounts are being amortized over 12 and 36 months respectively.

In December, 2023, the Partnership received approval from MassHousing to construct a 72 unit apartment building in accordance with Chapter 40B to include 17 affordable units on the Mill Street Development site. In order to initiate construction, the Partnership demolished the existing building structures and started construction in January 2024. In order to comply with the permanent financing requirements for a 40B project, Mill Street Development signed a term sheet for a loan of up to $15 million, to be funded upon completion of the development project. In addition, Mill Street Development deposited $75,000 into escrow to comply with the 40B project requirement of a cost certification of total development costs upon completion of the project. Total expected construction costs for the project are expected to be approximately $30,000,000 with construction completion anticipated during the fourth quarter of 2025.

Rental properties consist of the following:

	June 30, 2024		December 31, 2023		Useful Life
Land, improvements and parking lots	$	99,249,928	$	99,162,143	15	-	40	years
Buildings and improvements		276,824,808		276,167,618	15	-	40	years
Construction in Progress		8,391,993		1,818,716		N/A
Kitchen cabinets		16,593,160		16,137,828	5	-	10	years
Carpets		13,928,453		13,127,838	5	-	10	years
Air conditioning		500,000		500,000	5	-	10	years
Laundry equipment		594,010		568,716	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,090,604		1,090,604	10	-	30	years
Equipment		21,749,687		21,348,556	5	-	30	years
Motor vehicles		232,954		232,954			5	years
Fences		91,620		91,620	5	-	15	years
Furniture and fixtures		8,791,368		8,365,039	5	-	7	years
Total fixed assets		449,923,850		440,496,897
Less: Accumulated depreciation		(178,852,565)		(170,691,951)
	$	271,071,285	$	269,804,946

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2024

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by The Hamilton Company, Inc. (the “Management Company”), an entity that is owned by the majority shareholders of NewReal, Inc., the general partner of the Partnership (the “General Partner”). The management fee is equal to 4% of gross receipts of rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately $1,571,000 and $1,363,000 for the six months ended June 30, 2024 and 2023, respectively.

The Partnership Agreement permits the General Partner or the Management Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. During the six months ended June 30, 2024 and 2023, approximately $568,000 and $914,000 was charged to NERA for legal, accounting, construction, maintenance, brokerage fees, rental and architectural services and supervision of capital improvements. Of the 2024 expenses referred to above, approximately $29,000 consisted of repairs and maintenance, $152,000 of administrative expense, and approximately $57,000 for renting expense. Approximately $330,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2024, the Hamilton Company received approximately $431,000 from the Investment Properties of which approximately $369,000 was the management fee, approximately $46,000 for construction, architectural services, and supervision of capital projects, approximately $11,000 for repairs and maintenance, and approximately $5,000 for legal expense. The management fee is equal to 4% of gross receipts of rental income on the majority of the investment properties and 2% on Dexter Park.

The Partnership reimburses the Management Company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $2,086,000 and $2,050,000 for the six months ended June 30, 2024 and 2023, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. For the six months ended June 30, 2024, the Partnership accrued $32,000 for the employer’s match portion to the plan. For the six months ended June 30, 2023, the Partnership contributed $32,000 for the employer’s match portion to the plan.

Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 14 people. During the six months ended June 30, 2024 and 2023, the Management Company charged the Partnership $62,500 ($125,000 per year) for bookkeeping and accounting services included in administrative expenses above.

Sally Michael is a Director of New Real, Inc., and she is a Partner at Saul Ewing Arnstein & Lear LLP. Saul Ewing billed the Partnership for legal fees totaling approximately $70,000 and $39,000 for the six months ended June

30, 2024 and 2023, respectively. David Reier is a Director of New Real, Inc., who billed the Partnership approximately $7,000 for legal fees for the period ending June 30,2024.

The Partnership has invested in seven limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other investors are the Brown family related entities, and five current and previous employees of the Management Company. The Brown Family related entities’ ownership interest was between 47.6% and 59%. See Note 15 for a description of the properties and their operations.

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PREPAID EXPENSES and OTHER ASSETS

6 Months Ended

Jun. 30, 2024

PREPAID EXPENSES and OTHER ASSETS

PREPAID EXPENSES and OTHER ASSETS

NOTE 4. PREPAID EXPENSES and OTHER ASSETS

Approximately $3,665,000, and $3,601,000 of security deposits are included in prepaid expenses and other assets at June 30, 2024 and December 31, 2023, respectively. The security deposits and escrow accounts are restricted cash.

Also, included in prepaid expenses and other assets at June 30, 2024 and December 31, 2023 is approximately $2,022,000 and $1,784,000, respectively, held in escrow to fund future capital improvements.

Intangible assets on the acquisition of rental properties are included in prepaid expenses and other assets. Intangible assets are approximately $383,000 and $677,000 net of accumulated amortization of approximately $1,166,000 and $872,000 at June 30, 2024, and at December 31, 2023, respectively.

Financing fees in association with the line of credit of approximately $20,000 and $52,000 are net of accumulated amortization of approximately $162,000 and $130,000 at June 30, 2024 and December 31, 2023 respectively.

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MORTGAGE NOTES PAYABLE

6 Months Ended

Jun. 30, 2024

MORTGAGE NOTES PAYABLE

MORTGAGE NOTES PAYABLE

NOTE 5. MORTGAGE NOTES PAYABLE

At June 30, 2024 and December 31, 2023, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At June 30, 2024, the interest rates on these loans ranged from 2.97% to 4.95%, payable in monthly installments aggregating approximately $1,523,000 including principal, to various dates through 2035. The majority of the mortgages are subject to prepayment penalties. At June 30, 2024, the weighted average interest rate on the above mortgages was 3.68%. The effective rate of 3.77% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations.

Financing fees of approximately $2,589,000 and $2,779,000 are net of accumulated amortization of approximately $1,543,000 and $1,353,000 at June 30, 2024 and December 31, 2023, respectively, which offset the total mortgage notes payable.

The Partnership has pledged tenant leases as additional collateral for certain of these loans.

Approximate annual maturities at June 30, 2024 are as follows:

2025—current maturities	$	3,196,000
2026		21,931,000
2027		6,595,000
2028		23,165,000
2029		58,327,000
Thereafter		296,832,000
		410,046,000
Less: unamortized deferred financing costs		2,589,000
	$	407,457,000

Line of Credit

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. Prior to the line’s expiration in 2020, the Partnership exercised its option for a one-year extension until October 31, 2021. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

On October 29, 2021, the Partnership closed on the modification of its existing line of credit. The agreement extends the credit line for three years until October 29, 2024. The commitment amount is for $25 million but is restricted to $17 million during the modification period. The modification period phased out as of December 31, 2022. During this period, the loan covenants were modified from a minimum consolidated debt service ratio of 1.60 to a ratio of 1.35 until September 30, 2022; from a minimum tangible net worth requirement of $200 million to a net worth of $175 million until September 30, 2022; from a maximum consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022 and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30, 2022 and a yield of 9.0% until December 31, 2022. Once the financial performance of the Partnership meets the original covenant tests for the trailing 12-month period, the commitment amount will return to $25 million. As of June 30, 2024, the portfolio’s debt yield fell below the minimum of 9.5% to 9.3%, thus the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is unable to draw down any amount from the line of credit until the Partnership meets the required financial covenants. The Partnership is currently in discussions with a lender for a replacement line of credit.

The interest rate for the new term was LIBOR plus 300 basis points. The costs associated with the modification and renewal of the line of credit was approximately $179,000.

After June 30, 2023, the remaining tenors of U.S.-dollar LIBOR ceased publication, prompting the need for an alternative benchmark rate. On April 14, 2023, the partnership amended the line of credit to convert its base rate of interest from LIBOR to the Secured Overnight Financing Rate (SOFR) plus 10 basis points.

The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay dividends, make distributions or acquire equity interests of the Partnership.

The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 23 of its subsidiary properties and joint ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities.

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ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

6 Months Ended

Jun. 30, 2024

ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

NOTE 6. ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

The Partnership’s residential lease agreements may require tenants to maintain a one-month advance rental payment and/or a security deposit. At June 30, 2024, amounts received for prepaid rents of approximately $3,374,000 are included in cash and cash equivalents, and security deposits of approximately $3,665,000 are included in prepaid expenses and other assets and are restricted cash.

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PARTNERS' CAPITAL

6 Months Ended

Jun. 30, 2024

PARTNERS' CAPITAL.

PARTNERS' CAPITAL

NOTE 7. PARTNERS’ CAPITAL

The Partnership has two classes of Limited Partners (Class A and B) and one category of General Partner. Under the terms of the Partnership Agreement, distributions to holders of Class B Units and General Partnership Units must represent 19% and 1%, respectively, of the distributions made to the total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.

In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on March 28, 2024. In addition to the quarterly distribution, there was a special distribution of $48.00 per Class A unit ($1.60 per Receipt) payable on March 28, 2024. In May 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on June 28, 2024.

In 2023 the Partnership paid a total distribution of an aggregate $84.00 per Unit ($2.80 per Receipt) for a total payment of $9,954,888.

The Partnership has entered into a deposit agreement with an agent to facilitate public trading of limited partners’ interests in Class A Units. Under the terms of this agreement, the holders of Class A Units have the right to exchange each Class A Unit for 30 Depositary Receipts. The following is information per Depositary Receipt:

	Six Months Ended
	June 30,
	2024		2023
Net Income per Depositary Receipt	$	2.14	$	1.12
Distributions per Depositary Receipt	$	2.40	$	2.00

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TREASURY UNITS

6 Months Ended

Jun. 30, 2024

TREASURY UNITS

TREASURY UNITS

NOTE 8. TREASURY UNITS

Treasury Units at June 30, 2024 are as follows:

Class A	50,572
Class B	12,011
General Partnership	632
	63,215

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). Over time, the General Partner has authorized increases in the equity repurchase program. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. On March 9, 2020, the General Partner extended the program for an additional five years from March 31, 2020 to March 31, 2025. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restated Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions.

From August 20, 2007 through June 30, 2024, the Partnership has repurchased 1,542,344 Depositary Receipts at an average price of $31.59 per receipt (or $947.70 per underlying Class A Unit), 4,474 Class B Units and 236 General Partnership Units, both at an average price of $1,274.00 per Unit, totaling approximately $55,322,000 including brokerage fees paid by the Partnership.

During the six months ended June 30, 2024, the Partnership purchased a total of 10,110 Depositary Receipts. The average price was $71.16 per receipt, or $2,134.80 per unit. The cost including commission was approximately $721,000. The Partnership was required to repurchase 80.0 Class B Units and 4.2 General Partnership units at a cost of $170,872 and $8,993 respectively.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2024

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

The Partnership, the Subsidiary Partnerships, and the Investment Properties and their properties are not presently subject to any material litigation, and, to management’s knowledge, there is not any material litigation presently threatened against them. The properties are occasionally subject to ordinary routine legal and administrative proceedings incident to the ownership of residential and commercial real estate. Some of the legal and other expenses related to these proceedings are covered by insurance and none of these costs and expenses are expected to have a material adverse effect on the Consolidated Financial Statements of the Partnership.

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RENTAL INCOME

6 Months Ended

Jun. 30, 2024

RENTAL INCOME.

RENTAL INCOME

NOTE 10. RENTAL INCOME

During the six months ended June 30, 2024, approximately 94% of rental income was related to residential apartments and condominium units with leases of one year or less. The majority of these leases expire in June, July and August. Approximately 6% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at June 30, 2024 as follows:

	Commercial
	Property Leases
2025	$	3,048,338
2026		2,812,231
2027		2,467,300
2028		2,233,941
2029		1,895,581
Thereafter		9,470,229
	$	21,927,620

The aggregate minimum future rental income does not include contingent rentals that may be received under various leases in connection with common area charges and real estate taxes. Aggregate contingent rentals from continuing operations were approximately $398,000 and $328,000 for the six months ended June 30, 2024 and 2023 respectively. Trader Joe’s and Walgreen’s, tenants at Staples Plaza and 653 Worcester Road, Framingham, Massachusetts respectively, are approximately 18% of the total commercial rental income.

The following information is provided for commercial leases:

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through June 30,	expiring leases		for expiring leases	leases expiring	expiring leases
2025	$	441,070	31,292	29	12	%
2026		304,000	8,601	10	9	%
2027		300,625	12,440	6	8	%
2028		283,478	7,651	3	8	%
2029		352,839	8,733	4	10	%
2030		291,029	12,026	1	8	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		—	—	—	—	%
2034		533,784	20,897	2	15	%
Thereafter		947,722	27,140	3	27	%
Totals	$	3,565,147	129,886	59	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $981,000 and $1,195,000 at June 30, 2024 and December 31, 2023. Included in rents receivable at June 30, 2024 is approximately $551,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis.

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CASH FLOW INFORMATION

6 Months Ended

Jun. 30, 2024

CASH FLOW INFORMATION

CASH FLOW INFORMATION

NOTE 11. CASH FLOW INFORMATION

During the six months ended June 30, 2024 and 2023, cash paid for interest was approximately $7,649,000, and $7,678,000 respectively. Cash paid for state income taxes was approximately $100,000 and $25,000 during the six months ended June 30, 2024 and 2023, respectively.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2024

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At June 30, 2024 and December 31, 2023, we do not have any significant financial assets or financial liabilities that are measured at fair value on a recurring basis in our consolidated financial statements.

Financial Assets and Liabilities not Measured at Fair Value

At June 30, 2024 and December 31, 2023 the carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, and note payable, accounts payable and accrued expenses were representative of their fair values due to the short-term nature of these instruments or, the recent acquisition of these items.

The Partnership has investments in U.S. Treasury bills, some of which mature over a period greater than 90 days and are classified as short-term investments. The U.S. Treasury bills are carried at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the U.S. Treasury bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the U.S. Treasury bills is recognized in interest income in the Partnership’s consolidated statement of income. The U.S. Treasury bills classified within Level I of the fair value hierarchy.

At June 30, 2024 and December 31, 2023 we estimated the fair value of our mortgage payable, derivative financial instrument, and other notes based upon quoted market prices for the same (Level 1) or similar (Level 2) issues when current quoted market prices are available. We estimated the fair value of our secured mortgage debt that does not have current quoted market prices available by discounting the future cash flows using rates currently available to us for debt with similar terms and maturities (Level 3). The differences in the fair value of our debt from the carrying value are the result of differences in interest rates and/or borrowing spreads that were available to us at June 30, 2024 and December 31, 2023, as compared with those in effect when the debt was issued or acquired. The secured mortgage debt contain pre-payment penalties or yield maintenance provisions that could make the cost of refinancing the debt at lower rates exceed the benefit that would be derived from doing so. At June 30, 2024 and at December 31, 2023, the Partnership’s line of credit had an outstanding balance of zero.

The following methods and assumptions were used by the Partnership in estimating the fair value of its financial instruments:

● For cash and cash equivalents, accounts receivable, other assets, investment in partnerships, accounts payable, advance rents and security deposits: fair value approximates the carrying value of such assets and liabilities.

● For mortgage notes payable and treasury bills: fair value is generally based on estimated future cash flows, which are discounted using the quoted market rate from an independent source for similar obligations. Refer to the table below for the carrying amount and estimated fair value of such instruments.

The following table reflects the carrying amounts and estimated fair value of our debt.

	June 30, 2024		Dec 31, 2023
	Carrying Value	Fair Value	Carrying Value	Fair Value
Assets
Cash equivalents	13,463,294	13,463,294	18,230,463	18,230,463
Treasury bills	84,789,084	84,780,233	84,700,751	84,799,638
Total Assets	98,252,378	98,243,527	102,931,214	103,030,101
Liabilities
Mortgage payable *
- Partnership properties	407,457,271	351,924,863	408,660,292	359,092,343
- Investment properties	165,905,350	154,906,411	165,969,481	156,280,958
Total Liabilities	573,362,621	506,831,274	574,629,773	515,373,301

* Net of unamortized deferred financing costs

Disclosure about fair value of financial instruments is based on pertinent information available to management as of June 30, 2024 and December 31, 2023. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial

statements since June 30, 2024 and current estimates of fair value may differ significantly from the amounts presented herein.

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DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2024

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS

Cash Flow Hedges of Interest Rate Risk

The Partnership’s objectives in using rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Partnership uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Partnership making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The change in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Partnership’s variable rate debt. During the next 12 months, the Partnership estimates $122,000 will be reclassified as a decrease to interest expense.

As of June 30, 2024, the Partnership had one interest rate swap outstanding with a notional amount of approximately $411,000 designated as cash flow hedges of interest rate risk. As of June 30, 2024, the Partnership did not have any interest rate derivatives in a net liability position.

The table below presents the fair value of the Partnership’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2024 and December 31, 2023.

	Fair Value
Asset Derivatives designated	June 30,		December 31,
as hedging instruments	2024		2023		Balance sheet location
Interest rate swaps	$	410,935	$	236,377	Prepaid Expenses and Other Assets

The table below presents the effect the Partnership’s derivative financial instruments on the consolidated statements of income for the quarters ended June 30, 2024 and 2023.

					Location of Gain
					or (Loss)	Amount of Gain					Total Amount of
					Reclassified	or (Loss)				Location of Gain	Interest Expense
	Amount of Gain				from	Reclassified				or (Loss) Recognized	presented in the
Derivatives in Cash Flow	or (Loss) Recognized				Accumulated	from Accumulated				in Income on	consolidated statements
Hedging Relationships	in OCI on Derivative				OCI Into Income	OCI into Income				Derivative	of operations
Three Months Ended June 30,	2024		2023			2024		2023			2024		2023
Interest rate swaps	$	32,524	$	168,002	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(3,899,695)	$	(3,925,863)
Six Months Ended June 30,
Interest rate swaps	$	174,558	$	2,115	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(7,806,711)	$	(7,825,103)

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TAXABLE INCOME AND TAX BASIS

6 Months Ended

Jun. 30, 2024

TAXABLE INCOME AND TAX BASIS

TAXABLE INCOME AND TAX BASIS

NOTE 14. TAXABLE INCOME AND TAX BASIS

Taxable income reportable by the Partnership and includable in its partners’ tax returns is different than financial statement income because of tax free exchanges, different depreciation methods, different tax lives, other items with limited tax deductibility carryovers and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Federal taxable income of approximately $9,989,000 was approximately $1,535,000 more than statement income for the year ended December 31, 2023. The Federal cumulative tax basis of the Partnership’s real estate at December 31, 2023 is approximately $8,000,000 less than the statement basis. The primary reasons for the difference in tax basis are tax free exchanges, accelerated depreciation, bonus depreciation, and other timing differences. The Partnership’s Federal tax basis in its joint venture investments is approximately $6,000,000 more than statement basis. State taxable income may be significantly different due to different tax treatments for certain items.

Certain entities included in the Partnership’s consolidated financial statements are subject to certain state taxes. These taxes are not significant and are recorded as operating expenses in the accompanying consolidated financial statements.

The Partnership adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance, the Partnership recognized no material adjustment regarding its tax accounting treatment. The Partnership expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense, which would be included in general and administrative expense.

In the normal course of business the Partnership or one of its subsidiaries is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of June 30, 2024, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2020 forward.

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

6 Months Ended

Jun. 30, 2024

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

NOTE 15. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The Partnership has invested in seven limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three Joint Ventures investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are the Brown Family related entities and five current and former employees of the Management Company. The Brown Family’s ownership interest was between 47.6% and 59%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, Hamilton Park Towers LLC, referred to as Dexter Park, or Hamilton Park, is a 409 unit residential complex. The purchase price was $129,500,000. The original mortgage was $89,914,000 with an interest rate of 5.57% and was to mature in 2019. The mortgage called for interest only payments for the first two years of the loan and amortized over 30 years thereafter.

On May 31, 2018, Hamilton Park Towers, LLC, entered into a Mortgage Note with John Hancock Life Insurance Company (U.S.A.) in the principal amount of $125,000,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.99% per annum, and the principal amount of the Note is due and payable on June 1, 2028. The Note is secured by a mortgage on the Dexter Park apartment complex located at 175 Freeman Street, Brookline, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2018. The Note is guaranteed by the Partnership and HBC Holdings, LLC pursuant to a Guaranty Agreement dated May 31, 2018.

Hamilton Park used the proceeds of the loan to pay off an outstanding loan of approximately $82,000,000 and distributed approximately $41,200,000 to its owners. The Partnership’s share of the distribution was approximately $16,500,000. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for the investment using the equity method of accounting, although the Partnership has no legal obligation to fund its’ share of any future operating deficiencies as needed. At June 30, 2024, the balance on this mortgage before unamortized deferred financing costs is $125,000,000. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Joint Venture planned to operate the building and initiate development of the parking lot. In June 2007, the Joint Venture separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Joint Venture restructured the mortgages on both parcels at Essex 81. On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate. The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share

of any future operating deficits if needed. At June 30, 2024, the balance on this mortgage before unamortized deferred financing costs is $10,000,000. The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC.

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Joint Venture sold 127 of the units as condominiums and retained 49 units for long-term investment. The Joint Venture obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Joint Venture. The interest on the new loan was 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of the mortgage balance. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. After paying off the mortgage, the Partnership began to sell off the individual units. In 2019, all residential units were sold. The Partnership still owns the commercial building. This investment is referred to as Hamilton 1025, LLC.

In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42-unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000. On September 12, 2016, the property was refinanced with a 15 year mortgage in the amount of $6,000,000, at 3.71%, interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $5,158,000 with the proceeds of the new mortgage and made a distribution of $385,000 to the Partnership. The cost associated with the refinancing was approximately $123,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30 2024, the balance on this mortgage before unamortized deferred financing costs is $6,000,000. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The Joint Venture sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only. The Joint Venture paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and distributed $850,000 to the Partnership. The costs associated with the refinancing were approximately $161,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30, 2024, the balance of the mortgage before unamortized deferred finance is $16,900,000. The investment is referred to as Hamilton on Main LLC. This mortgage is currently in the process of a refinancing which is to be completed prior to the maturity date of the loan.

On August 23, 2023, Hamilton on Main Apartments, LLC (the “Borrower”), a 50% owned joint venture of the Partnership, received notice from KeyBank, as servicer for the lender of a $16,900,000 loan, indicating that the Borrower failed to comply with certain terms of the loan documents pertaining to the transfer of interests in the Borrower that occurred on the occasion of Harold Brown’s death, and that such transfer constitutes an event of default under the loan documents. While the Borrower has disputed that any events of default actually exist, it worked diligently with KeyBank to obtain KeyBank’s consent to the transfer. On March 8, 2024, the Borrower received notice from KeyBank that it was providing ex-post facto consent to the transfer of interest subject to certain conditions being met by the Borrower. The Partnership’s share of costs associated with the transfer of interests in the Borrower was approximately $107,000. On April 18, 2024 the Borrower and KeyBank executed amended loan documents reflecting the transfer of interest in the Borrower. In conjunction with the execution of the amended loan documents, KeyBank provided a courtesy reduction equal to 50% of the transfer fee.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Joint Venture paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the Joint Venture made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership

intends to fund its share of any future operating deficits if needed. At June 30, 2024, the balance of this mortgage before unamortized deferred financing costs is approximately $8,364,000. This investment is referred to as 345 Franklin, LLC.

Summary financial information at June 30, 2024

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,246,865		$	2,581,946		$	4,308,810		$	73,395		$	4,054,581		$	12,884,525		$	71,900,948		$	101,051,070
Cash & Cash Equivalents		1,141,309			38,045			160,348			17,673			123,723			795,809			1,601,735			3,878,642
Rent Receivable		197,191			75,733			1,293			3,309			2,211			19,042			147,332			446,111
Real Estate Tax Escrow		81,453			—			31,596			—			29,661			191,490			—			334,200
Prepaid Expenses & Other Assets		351,532			41,042			110,132			1,038			71,628			363,109			3,413,479			4,351,960
Total Assets	$	7,018,350		$	2,736,766		$	4,612,179		$	95,415		$	4,281,804		$	14,253,975		$	77,063,494		$	110,061,983
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,982,764		$	—		$	8,337,358		$	—		$	5,941,010		$	16,897,325		$	124,746,893		$	165,905,350
Accounts Payable & Accrued Expense		136,741			2,000			70,945			3,545			68,813			190,892			722,878			1,195,814
Advance Rental Pmts & Security Deposits		374,170			—			307,229			—			176,456			537,218			4,124,873			5,519,946
Total Liabilities		10,493,675			2,000			8,715,532			3,545			6,186,279			17,625,435			129,594,644			172,621,110
Partners’ Capital		(3,475,325)			2,734,766			(4,103,353)			91,870			(1,904,475)			(3,371,460)			(52,531,150)			(62,559,127)
Total Liabilities and Capital	$	7,018,350		$	2,736,766		$	4,612,179		$	95,415		$	4,281,804		$	14,253,975		$	77,063,494		$	110,061,983
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,367,383		$	—		$	45,935		$	—		$	—		$	—			1,413,318
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,737,662)		$	—		$	(2,051,676)		$	—		$	(952,238)		$	(1,685,730)		$	(21,012,460)			(27,439,766)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(26,026,448)
Total units/condominiums
Apartments		48			—			40			—			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Financial information for the six months ended June 30, 2024

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	918,853	$	120,942	$	891,084	$	51,633	$	711,617	$	2,057,301	$	8,529,299	$	13,280,729
Laundry and Sundry Income		6,344		—		(236)		—		—		25,244		95,538		126,890
		925,197		120,942		890,848		51,633		711,617		2,082,545		8,624,837		13,407,619
Expenses
Administrative		10,543		3,000		14,979		1,401		10,318		43,143		100,148		183,532
Depreciation and Amortization		231,911		5,855		172,796		1,632		166,005		533,325		1,837,161		2,948,685
Management Fees		37,186		4,132		34,954		2,068		28,309		82,234		180,292		369,175
Operating		176,997		—		41,384		(38)		64,776		244,472		750,508		1,278,099
Renting		7,634		—		9,776		63		9,691		56,737		52,816		136,717
Repairs and Maintenance		94,619		—		44,882		1,650		61,165		330,278		883,402		1,415,996
Taxes and Insurance		163,965		35,192		99,480		10,174		78,756		206,992		1,284,141		1,878,700
		722,855		48,179		418,251		16,950		419,020		1,497,181		5,088,468		8,210,904
Income Before Other Income		202,342		72,763		472,597		34,683		292,597		585,364		3,536,369		5,196,715
Other Income (Loss)
Interest Expense		(394,241)		—		(169,105)		—		(118,295)		(385,098)		(2,566,448)		(3,633,187)
Interest Income		21,250		1,190		4,629		418		5,463		22,651		45,289		100,890
Other income (Expense)		—		—		—		—		—		63,745		—		63,745
		(372,991)		1,190		(164,476)		418		(112,832)		(298,702)		(2,521,159)		(3,468,552)
Net (Loss) Income	$	(170,649)	$	73,953	$	308,121	$	35,101	$	179,765	$	286,662	$	1,015,212	$	1,728,163
Net (Loss) Income —NERA 50%	$	(85,324)	$	36,976	$	154,060	$	17,550	$	89,883	$	143,331				356,475
Net Income —NERA 40%													$	406,085		406,085
															$	762,560

Financial information for the three months ended June 30, 2024

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	450,375	$	60,471	$	447,328	$	24,745	$	360,169	$	1,049,070	$	4,181,290	$	6,573,448
Laundry and Sundry Income		3,568		—		(242)		—		—		12,580		50,108		66,014
		453,943		60,471		447,086		24,745		360,169		1,061,650		4,231,398		6,639,462
Expenses
Administrative		5,325		1,000		6,059		700		3,384		33,819		48,109		98,396
Depreciation and Amortization		116,067		2,928		86,398		816		83,272		272,073		923,409		1,484,963
Management Fees		16,759		1,653		17,537		1,006		14,079		42,043		88,411		181,488
Operating		93,958		—		15,519		174		19,202		110,070		312,204		551,127
Renting		6,395		—		5,681		45		4,161		29,150		20,424		65,856
Repairs and Maintenance		56,162		—		21,838		1,650		31,880		183,947		529,212		824,689
Taxes and Insurance		94,622		17,600		50,195		5,498		39,588		105,451		642,003		954,957
		389,288		23,181		203,227		9,889		195,566		776,553		2,563,772		4,161,476
Income Before Other Income		64,655		37,290		243,859		14,856		164,603		285,097		1,667,626		2,477,986
Other Income (Loss)
Interest Expense		(197,041)		—		(84,238)		(205)		(59,144)		(191,983)		(1,269,641)		(1,802,252)
Interest Income		10,829		419		2,268		418		2,980		9,801		24,616		51,331
		(186,212)		419		(81,970)		213		(56,164)		(182,182)		(1,245,025)		(1,750,921)
Net Income (Loss)	$	(121,557)	$	37,709	$	161,889	$	15,069	$	108,439	$	102,915	$	422,601	$	727,065
Net Income (Loss)—NERA 50%	$	(60,780)	$	18,854	$	80,944	$	7,535	$	54,220	$	51,459				152,230
Net Income —NERA 40%													$	169,039		169,039
															$	321,269

Future annual mortgage maturities at June 30, 2024 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
6/30/2025	$	—	$	244,563	$	—	$	16,900,000	$	—	$	17,144,563
6/30/2026		10,000,000		254,197		—		—		—		10,254,197
6/30/2027		—		264,211		—		—		—		264,211
6/30/2028		—		274,619		—		—		125,000,000		125,274,619
6/30/2029		—		7,326,402		—		—		—		7,326,402
Thereafter		—		—		6,000,000		—				6,000,000
		10,000,000		8,363,992		6,000,000		16,900,000		125,000,000		166,263,992
Less: unamortized deferred financing costs		(17,236)		(26,634)		(58,990)		(2,675)		(253,107)		(358,642)
	$	9,982,764	$	8,337,358	$	5,941,010	$	16,897,325	$	124,746,893	$	165,905,350

At June 30, 2024, the weighted average interest rate on the above mortgages was 4.23%. The effective rate was 4.29% including the amortization expense of deferred financing costs.

Summary financial information at June 30, 2023

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,614,141		$	2,584,435		$	4,650,472		$	76,659		$	4,324,746		$	12,985,301		$	74,525,027		$	104,760,781
Cash & Cash Equivalents		997,622			60,182			374,750			16,853			251,310			611,236			2,088,673			4,400,626
Rent Receivable		211,562			80,184			—			4,931			2,589			9,044			140,146			448,456
Real Estate Tax Escrow		67,281			—			23,412			—			43,542			139,831			—			274,066
Prepaid Expenses & Other Assets		326,548			50,175			104,393			1,049			42,306			248,929			2,635,666			3,409,066
Total Assets	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492		$	4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,968,975		$	—		$	8,565,993		$	—		$	5,932,827		$	16,881,274		$	124,682,270		$	166,031,339
Accounts Payable & Accrued Expense		165,149			1,500			124,185			2,660			74,550			196,773			816,401			1,381,218
Advance Rental Pmts& Security Deposits		309,790			—			335,465			—			192,370			515,070			3,506,661			4,859,356
Total Liabilities		10,443,914			1,500			9,025,643			2,660			6,199,747			17,593,117			129,005,332			172,271,913
Partners’ Capital		(3,226,760)			2,773,476			(3,872,616)			96,832			(1,535,254)			(3,598,776)			(49,615,820)			(58,978,918)
Total Liabilities and Capital	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492			4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,386,738		$	—		$	48,416		$			$			$			$	1,435,154
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,613,380)		$	—		$	(1,936,308)		$	—		$	(767,627)		$	(1,799,388)		$	(19,846,328)			(25,963,031)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(24,527,877)
Total units/condominiums
Apartments		48			—			40			0			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Financial information for the six months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	850,177	$	120,942	$	834,013	$	49,735	$	638,730	$	1,886,063	$	8,015,963	$	12,395,623
Laundry and Sundry Income		3,040		—				—						48,433		51,473
		853,217		120,942		834,013		49,735		638,730		1,886,063		8,064,396		12,447,096
Expenses
Administrative		10,531		1,500		13,043		1,871		9,482		38,973		113,118		188,518
Depreciation and Amortization		234,133		5,855		172,866		1,632		168,308		530,006		1,821,273		2,934,073
Management Fees		33,744		4,768		32,632		1,989		25,663		74,129		160,975		333,900
Operating		150,518		—		57,035		142		68,372		224,264		653,665		1,153,996
Renting		30,945		—		18,200		—		1,573		24,455		67,759		142,932
Repairs and Maintenance		95,955		—		62,538		—		44,233		336,730		894,898		1,434,354
Taxes and Insurance		141,245		30,681		94,286		8,704		70,400		262,939		1,271,219		1,879,474
		697,071		42,804		450,600		14,338		388,031		1,491,496		4,982,907		8,067,247
Income Before Other Income		156,146		78,138		383,413		35,397		250,699		394,567		3,081,489		4,379,849
Other Income (Loss)
Interest Expense		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
Net Income (Loss)	$	(202,706)	$	78,138	$	209,939	$	35,397	$	132,591	$	(6,176)	$	559,435	$	806,618
Net Income (Loss)—NERA 50%	$	(101,353)	$	39,070	$	104,970	$	17,699	$	66,296	$	(3,088)				123,593
Net Income —NERA 40%													$	223,774		223,774
															$	347,368

Financial information for the three months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	411,189	$	60,471	$	422,123	$	24,867	$	325,228	$	963,511	$	4,018,665	$	6,226,054
Laundry and Sundry Income		337		—				—				(15,429)		12,433		(2,659)
		411,526		60,471		422,123		24,867		325,228		948,082		4,031,098		6,223,395
Expenses
Administrative		5,791		750		9,574		951		5,607		26,269		65,111		114,053
Depreciation and Amortization		117,146		2,928		86,560		816		84,591		265,496		915,526		1,473,063
Management Fees		14,652		1,589		16,495		994		12,857		36,933		79,366		162,886
Operating		67,170		—		31,655		75		30,856		95,322		276,666		501,744
Renting		27,770		—		9,943		—		205		12,509		27,136		77,563
Repairs and Maintenance		41,487		—		38,327		—		23,299		183,276		576,924		863,313
Taxes and Insurance		70,311		15,224		47,111		4,203		35,042		130,566		647,645		950,102
		344,327		20,491		239,665		7,039		192,457		750,371		2,588,374		4,142,724
Income Before Other Income		67,199		39,980		182,458		17,828		132,771		197,711		1,442,724		2,080,671
Other Income (Loss)
Interest Expense		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
Net Income (Loss)	$	(119,340)	$	39,980	$	95,943	$	17,828	$	73,413	$	(15,655)	$	183,943	$	276,112
Net Income (Loss)—NERA 50%	$	(59,670)	$	19,990	$	47,972	$	8,914	$	36,708	$	(7,827)				46,087
Net Income —NERA 40%													$	73,577		73,577
															$	119,664

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EMPLOYEE BENEFIT 401(k) PLANS

6 Months Ended

Jun. 30, 2024

EMPLOYEE BENEFIT 401(k) PLANS

EMPLOYEE BENEFIT 401(k) PLANS

NOTE 16. EMPLOYEE BENEFIT 401(k) PLANS

Employees of the Partnership, who meet certain minimum age and service requirements, are eligible to participate in the Management Company’s 401(k) Plan (the “401(k) Plan”). Eligible employees may elect to defer up to 90 percent of their eligible compensation on a pre-tax basis to the 401(k) Plan, subject to certain limitations imposed by federal law. 

The amounts contributed by employees are immediately vested and non-forfeitable. The Partnership matches 50% up to 6% of compensation deferred by each employee in the 401(k) plan. The Partnership may make discretionary matching or profit-sharing contributions to the 401(k) Plan on behalf of eligible participants in any plan year. Participants are always 100 percent vested in their pre-tax contributions and will begin vesting in any matching or profit-sharing contributions made on their behalf after two years of service with the Partnership at a rate of 20 percent per year, becoming 100 percent vested after a total of six years of service with the Partnership. Total expense recognized by the Partnership for the 401(k) Plan for the six months ended June 30, 2024 was $32,000.

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IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

6 Months Ended

Jun. 30, 2024

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

NOTE 17. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

In November 2023, the FASB issued ASU 2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The guidance requires incremental disclosures related to a public entity’s reportable segments. ASU 2023-07 is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. The Partnership is currently evaluating the impact of adopting ASU 2023-07 will have on the Partnership's consolidated financial statements.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2024

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 18. SUBSEQUENT EVENTS

From July 1, 2024, through August 8, 2024, the Partnership has purchased 654 Depository Receipts. The average price was $70.86 per receipt, or $2,125.80 per unit. The total cost was $46,744. The Partnership is required to purchase 5.2 Class B units and 0.3 General Partnership units at a cost of $11,077 and $579, respectively.

On August 7, 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on September 30, 2024.

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Pay vs Performance Disclosure - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 4,072,726	$ 2,224,604	$ 7,536,322	$ 3,979,341

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2024

SIGNIFICANT ACCOUNTING POLICIES

Line of Business

Line of Business: New England Realty Associates Limited Partnership (“NERA”, the “Company” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 31 properties which include 22 residential buildings; 5 mixed use residential, retail and office buildings; 4 commercial buildings and individual units at one condominium complex. These properties total 2,943 apartment units, 19 condominium units and approximately 130,000 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 7 residential and mixed use properties consisting of 688 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation

Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgments and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances.

Principles of Consolidation

Principles of Consolidation: The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the seven limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of some investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the

variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Properties

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing

activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. Costs directly related to the acquisition, development and construction of rental properties are capitalized. Capitalized development and construction costs include pre-construction costs, development and construction costs, regulatory fees, interest, property taxes, insurance, construction oversight fees, and other project costs incurred during the period of development. The Partnership considers a construction project as substantially completed and held available for occupancy upon the substantial completion of improvements, but no later than one year from cessation of major construction activity.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Leasing Fees and Deferred Financing Costs

Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $190,000 and $190,000 for the six months ended June 30, 2024 and 2023, respectively.

Derivative Instruments

Derivative Instruments: The Partnership measures derivative instruments, including certain derivative instruments embedded in other contracts, at fair value and records them as an asset or liability, depending upon the Partnership’s rights or obligations under the applicable derivative contract. For derivatives designated and qualifying as fair value hedges, the changes in the fair value of both the derivative instrument and the hedged item are recorded in earnings. For derivatives designated as cash flow hedges, the effective portions of the derivative are reported in other comprehensive income (“OCI”) and are subsequently reclassified into earnings when the hedged item affects earnings. Changes in fair value of derivative instruments not designated as hedging and ineffective portions of hedges are recognized in earnings in the affected period.

Income Taxes

Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes has been recorded (See Note 14).

Cash Equivalents

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less at the time of purchase, including its investment in money market funds.

Investments in Treasury Bills

Investments in Treasury Bills: Investments in U.S. Treasury bills are recorded at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury bills is recognized in interest income in the Partnership’s consolidated statement of income.

Segment Reporting

Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment.

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss): Other comprehensive income (loss) includes items that are recorded in equity, such as effective portions of derivatives designated as cash flow hedges or unrealized holding gains or losses on marketable securities available for sale. NERA had comprehensive income of approximately $175,000 and a comprehensive income of approximately $2,000 for the six months ended June 30, 2024 and 2023, respectively.

Income (Loss) Per Depositary Receipt

Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3-for-1 forward split.

Income Per Unit

Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partners’ Capital).

Concentration of Credit Risks and Financial Instruments

Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2024 or 2023. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At June 30, 2024, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 4.07%. At June 30, 2024 and December 31, 2023, respectively, approximately $14,809,000, and $18,711,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense

Advertising Expense: Advertising is expensed as incurred. Advertising expense was approximately $177,000 and $193,000 for the six months ended June 30, 2024, and 2023, respectively.

Rental Property Held for Sale

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Interest Capitalized

Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the six months ended June 30, 2023 there was no capitalized interest.

Extinguishment of Debt

Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However, if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancings qualify as extinguishment of debt.

Reclassification

Reclassification: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

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RENTAL PROPERTIES (Tables)

6 Months Ended

Jun. 30, 2024

RENTAL PROPERTIES.

Schedule of rental properties

	June 30, 2024		December 31, 2023		Useful Life
Land, improvements and parking lots	$	99,249,928	$	99,162,143	15	-	40	years
Buildings and improvements		276,824,808		276,167,618	15	-	40	years
Construction in Progress		8,391,993		1,818,716		N/A
Kitchen cabinets		16,593,160		16,137,828	5	-	10	years
Carpets		13,928,453		13,127,838	5	-	10	years
Air conditioning		500,000		500,000	5	-	10	years
Laundry equipment		594,010		568,716	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,090,604		1,090,604	10	-	30	years
Equipment		21,749,687		21,348,556	5	-	30	years
Motor vehicles		232,954		232,954			5	years
Fences		91,620		91,620	5	-	15	years
Furniture and fixtures		8,791,368		8,365,039	5	-	7	years
Total fixed assets		449,923,850		440,496,897
Less: Accumulated depreciation		(178,852,565)		(170,691,951)
	$	271,071,285	$	269,804,946

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MORTGAGE NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2024

MORTGAGE NOTES PAYABLE

Schedule of approximate annual maturities

Approximate annual maturities at June 30, 2024 are as follows:

2025—current maturities	$	3,196,000
2026		21,931,000
2027		6,595,000
2028		23,165,000
2029		58,327,000
Thereafter		296,832,000
		410,046,000
Less: unamortized deferred financing costs		2,589,000
	$	407,457,000

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PARTNERS' CAPITAL (Tables)

6 Months Ended

Jun. 30, 2024

PARTNERS' CAPITAL.

Schedule of information per depositary receipt

	Six Months Ended
	June 30,
	2024		2023
Net Income per Depositary Receipt	$	2.14	$	1.12
Distributions per Depositary Receipt	$	2.40	$	2.00

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TREASURY UNITS (Tables)

6 Months Ended

Jun. 30, 2024

TREASURY UNITS

Schedule of treasury units

Treasury Units at June 30, 2024 are as follows:

Class A	50,572
Class B	12,011
General Partnership	632
	63,215

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RENTAL INCOME (Tables)

6 Months Ended

Jun. 30, 2024

RENTAL INCOME.

Schedule of minimum future annual rental income on non-cancellable operating leases

	Commercial
	Property Leases
2025	$	3,048,338
2026		2,812,231
2027		2,467,300
2028		2,233,941
2029		1,895,581
Thereafter		9,470,229
	$	21,927,620

Schedule of information for commercial leases

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through June 30,	expiring leases		for expiring leases	leases expiring	expiring leases
2025	$	441,070	31,292	29	12	%
2026		304,000	8,601	10	9	%
2027		300,625	12,440	6	8	%
2028		283,478	7,651	3	8	%
2029		352,839	8,733	4	10	%
2030		291,029	12,026	1	8	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		—	—	—	—	%
2034		533,784	20,897	2	15	%
Thereafter		947,722	27,140	3	27	%
Totals	$	3,565,147	129,886	59	100	%

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2024

FAIR VALUE MEASUREMENTS

Schedule of carrying amounts and estimated fair value of debt

	June 30, 2024		Dec 31, 2023
	Carrying Value	Fair Value	Carrying Value	Fair Value
Assets
Cash equivalents	13,463,294	13,463,294	18,230,463	18,230,463
Treasury bills	84,789,084	84,780,233	84,700,751	84,799,638
Total Assets	98,252,378	98,243,527	102,931,214	103,030,101
Liabilities
Mortgage payable *
- Partnership properties	407,457,271	351,924,863	408,660,292	359,092,343
- Investment properties	165,905,350	154,906,411	165,969,481	156,280,958
Total Liabilities	573,362,621	506,831,274	574,629,773	515,373,301

* Net of unamortized deferred financing costs

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2024

DERIVATIVE FINANCIAL INSTRUMENTS

Schedule of fair value of derivatives

	Fair Value
Asset Derivatives designated	June 30,		December 31,
as hedging instruments	2024		2023		Balance sheet location
Interest rate swaps	$	410,935	$	236,377	Prepaid Expenses and Other Assets

Schedule of effect the Company's derivative financial instruments on the consolidated statements of income

					Location of Gain
					or (Loss)	Amount of Gain					Total Amount of
					Reclassified	or (Loss)				Location of Gain	Interest Expense
	Amount of Gain				from	Reclassified				or (Loss) Recognized	presented in the
Derivatives in Cash Flow	or (Loss) Recognized				Accumulated	from Accumulated				in Income on	consolidated statements
Hedging Relationships	in OCI on Derivative				OCI Into Income	OCI into Income				Derivative	of operations
Three Months Ended June 30,	2024		2023			2024		2023			2024		2023
Interest rate swaps	$	32,524	$	168,002	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(3,899,695)	$	(3,925,863)
Six Months Ended June 30,
Interest rate swaps	$	174,558	$	2,115	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(7,806,711)	$	(7,825,103)

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of future annual mortgage maturities

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
6/30/2025	$	—	$	244,563	$	—	$	16,900,000	$	—	$	17,144,563
6/30/2026		10,000,000		254,197		—		—		—		10,254,197
6/30/2027		—		264,211		—		—		—		264,211
6/30/2028		—		274,619		—		—		125,000,000		125,274,619
6/30/2029		—		7,326,402		—		—		—		7,326,402
Thereafter		—		—		6,000,000		—				6,000,000
		10,000,000		8,363,992		6,000,000		16,900,000		125,000,000		166,263,992
Less: unamortized deferred financing costs		(17,236)		(26,634)		(58,990)		(2,675)		(253,107)		(358,642)
	$	9,982,764	$	8,337,358	$	5,941,010	$	16,897,325	$	124,746,893	$	165,905,350

2024

Summary of financial position and income statements relating to investment in unconsolidated joint ventures

Summary financial information at June 30, 2024

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,246,865		$	2,581,946		$	4,308,810		$	73,395		$	4,054,581		$	12,884,525		$	71,900,948		$	101,051,070
Cash & Cash Equivalents		1,141,309			38,045			160,348			17,673			123,723			795,809			1,601,735			3,878,642
Rent Receivable		197,191			75,733			1,293			3,309			2,211			19,042			147,332			446,111
Real Estate Tax Escrow		81,453			—			31,596			—			29,661			191,490			—			334,200
Prepaid Expenses & Other Assets		351,532			41,042			110,132			1,038			71,628			363,109			3,413,479			4,351,960
Total Assets	$	7,018,350		$	2,736,766		$	4,612,179		$	95,415		$	4,281,804		$	14,253,975		$	77,063,494		$	110,061,983
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,982,764		$	—		$	8,337,358		$	—		$	5,941,010		$	16,897,325		$	124,746,893		$	165,905,350
Accounts Payable & Accrued Expense		136,741			2,000			70,945			3,545			68,813			190,892			722,878			1,195,814
Advance Rental Pmts & Security Deposits		374,170			—			307,229			—			176,456			537,218			4,124,873			5,519,946
Total Liabilities		10,493,675			2,000			8,715,532			3,545			6,186,279			17,625,435			129,594,644			172,621,110
Partners’ Capital		(3,475,325)			2,734,766			(4,103,353)			91,870			(1,904,475)			(3,371,460)			(52,531,150)			(62,559,127)
Total Liabilities and Capital	$	7,018,350		$	2,736,766		$	4,612,179		$	95,415		$	4,281,804		$	14,253,975		$	77,063,494		$	110,061,983
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,367,383		$	—		$	45,935		$	—		$	—		$	—			1,413,318
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,737,662)		$	—		$	(2,051,676)		$	—		$	(952,238)		$	(1,685,730)		$	(21,012,460)			(27,439,766)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(26,026,448)
Total units/condominiums
Apartments		48			—			40			—			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Summary of income statement relating to investment in unconsolidated joint ventures

Financial information for the six months ended June 30, 2024

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	918,853	$	120,942	$	891,084	$	51,633	$	711,617	$	2,057,301	$	8,529,299	$	13,280,729
Laundry and Sundry Income		6,344		—		(236)		—		—		25,244		95,538		126,890
		925,197		120,942		890,848		51,633		711,617		2,082,545		8,624,837		13,407,619
Expenses
Administrative		10,543		3,000		14,979		1,401		10,318		43,143		100,148		183,532
Depreciation and Amortization		231,911		5,855		172,796		1,632		166,005		533,325		1,837,161		2,948,685
Management Fees		37,186		4,132		34,954		2,068		28,309		82,234		180,292		369,175
Operating		176,997		—		41,384		(38)		64,776		244,472		750,508		1,278,099
Renting		7,634		—		9,776		63		9,691		56,737		52,816		136,717
Repairs and Maintenance		94,619		—		44,882		1,650		61,165		330,278		883,402		1,415,996
Taxes and Insurance		163,965		35,192		99,480		10,174		78,756		206,992		1,284,141		1,878,700
		722,855		48,179		418,251		16,950		419,020		1,497,181		5,088,468		8,210,904
Income Before Other Income		202,342		72,763		472,597		34,683		292,597		585,364		3,536,369		5,196,715
Other Income (Loss)
Interest Expense		(394,241)		—		(169,105)		—		(118,295)		(385,098)		(2,566,448)		(3,633,187)
Interest Income		21,250		1,190		4,629		418		5,463		22,651		45,289		100,890
Other income (Expense)		—		—		—		—		—		63,745		—		63,745
		(372,991)		1,190		(164,476)		418		(112,832)		(298,702)		(2,521,159)		(3,468,552)
Net (Loss) Income	$	(170,649)	$	73,953	$	308,121	$	35,101	$	179,765	$	286,662	$	1,015,212	$	1,728,163
Net (Loss) Income —NERA 50%	$	(85,324)	$	36,976	$	154,060	$	17,550	$	89,883	$	143,331				356,475
Net Income —NERA 40%													$	406,085		406,085
															$	762,560

Financial information for the three months ended June 30, 2024

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	450,375	$	60,471	$	447,328	$	24,745	$	360,169	$	1,049,070	$	4,181,290	$	6,573,448
Laundry and Sundry Income		3,568		—		(242)		—		—		12,580		50,108		66,014
		453,943		60,471		447,086		24,745		360,169		1,061,650		4,231,398		6,639,462
Expenses
Administrative		5,325		1,000		6,059		700		3,384		33,819		48,109		98,396
Depreciation and Amortization		116,067		2,928		86,398		816		83,272		272,073		923,409		1,484,963
Management Fees		16,759		1,653		17,537		1,006		14,079		42,043		88,411		181,488
Operating		93,958		—		15,519		174		19,202		110,070		312,204		551,127
Renting		6,395		—		5,681		45		4,161		29,150		20,424		65,856
Repairs and Maintenance		56,162		—		21,838		1,650		31,880		183,947		529,212		824,689
Taxes and Insurance		94,622		17,600		50,195		5,498		39,588		105,451		642,003		954,957
		389,288		23,181		203,227		9,889		195,566		776,553		2,563,772		4,161,476
Income Before Other Income		64,655		37,290		243,859		14,856		164,603		285,097		1,667,626		2,477,986
Other Income (Loss)
Interest Expense		(197,041)		—		(84,238)		(205)		(59,144)		(191,983)		(1,269,641)		(1,802,252)
Interest Income		10,829		419		2,268		418		2,980		9,801		24,616		51,331
		(186,212)		419		(81,970)		213		(56,164)		(182,182)		(1,245,025)		(1,750,921)
Net Income (Loss)	$	(121,557)	$	37,709	$	161,889	$	15,069	$	108,439	$	102,915	$	422,601	$	727,065
Net Income (Loss)—NERA 50%	$	(60,780)	$	18,854	$	80,944	$	7,535	$	54,220	$	51,459				152,230
Net Income —NERA 40%													$	169,039		169,039
															$	321,269

2023

Summary of financial position and income statements relating to investment in unconsolidated joint ventures

Summary financial information at June 30, 2023

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,614,141		$	2,584,435		$	4,650,472		$	76,659		$	4,324,746		$	12,985,301		$	74,525,027		$	104,760,781
Cash & Cash Equivalents		997,622			60,182			374,750			16,853			251,310			611,236			2,088,673			4,400,626
Rent Receivable		211,562			80,184			—			4,931			2,589			9,044			140,146			448,456
Real Estate Tax Escrow		67,281			—			23,412			—			43,542			139,831			—			274,066
Prepaid Expenses & Other Assets		326,548			50,175			104,393			1,049			42,306			248,929			2,635,666			3,409,066
Total Assets	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492		$	4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,968,975		$	—		$	8,565,993		$	—		$	5,932,827		$	16,881,274		$	124,682,270		$	166,031,339
Accounts Payable & Accrued Expense		165,149			1,500			124,185			2,660			74,550			196,773			816,401			1,381,218
Advance Rental Pmts& Security Deposits		309,790			—			335,465			—			192,370			515,070			3,506,661			4,859,356
Total Liabilities		10,443,914			1,500			9,025,643			2,660			6,199,747			17,593,117			129,005,332			172,271,913
Partners’ Capital		(3,226,760)			2,773,476			(3,872,616)			96,832			(1,535,254)			(3,598,776)			(49,615,820)			(58,978,918)
Total Liabilities and Capital	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492			4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,386,738		$	—		$	48,416		$			$			$			$	1,435,154
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,613,380)		$	—		$	(1,936,308)		$	—		$	(767,627)		$	(1,799,388)		$	(19,846,328)			(25,963,031)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(24,527,877)
Total units/condominiums
Apartments		48			—			40			0			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Summary of income statement relating to investment in unconsolidated joint ventures

Financial information for the six months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	850,177	$	120,942	$	834,013	$	49,735	$	638,730	$	1,886,063	$	8,015,963	$	12,395,623
Laundry and Sundry Income		3,040		—				—						48,433		51,473
		853,217		120,942		834,013		49,735		638,730		1,886,063		8,064,396		12,447,096
Expenses
Administrative		10,531		1,500		13,043		1,871		9,482		38,973		113,118		188,518
Depreciation and Amortization		234,133		5,855		172,866		1,632		168,308		530,006		1,821,273		2,934,073
Management Fees		33,744		4,768		32,632		1,989		25,663		74,129		160,975		333,900
Operating		150,518		—		57,035		142		68,372		224,264		653,665		1,153,996
Renting		30,945		—		18,200		—		1,573		24,455		67,759		142,932
Repairs and Maintenance		95,955		—		62,538		—		44,233		336,730		894,898		1,434,354
Taxes and Insurance		141,245		30,681		94,286		8,704		70,400		262,939		1,271,219		1,879,474
		697,071		42,804		450,600		14,338		388,031		1,491,496		4,982,907		8,067,247
Income Before Other Income		156,146		78,138		383,413		35,397		250,699		394,567		3,081,489		4,379,849
Other Income (Loss)
Interest Expense		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
Net Income (Loss)	$	(202,706)	$	78,138	$	209,939	$	35,397	$	132,591	$	(6,176)	$	559,435	$	806,618
Net Income (Loss)—NERA 50%	$	(101,353)	$	39,070	$	104,970	$	17,699	$	66,296	$	(3,088)				123,593
Net Income —NERA 40%													$	223,774		223,774
															$	347,368

Financial information for the three months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	411,189	$	60,471	$	422,123	$	24,867	$	325,228	$	963,511	$	4,018,665	$	6,226,054
Laundry and Sundry Income		337		—				—				(15,429)		12,433		(2,659)
		411,526		60,471		422,123		24,867		325,228		948,082		4,031,098		6,223,395
Expenses
Administrative		5,791		750		9,574		951		5,607		26,269		65,111		114,053
Depreciation and Amortization		117,146		2,928		86,560		816		84,591		265,496		915,526		1,473,063
Management Fees		14,652		1,589		16,495		994		12,857		36,933		79,366		162,886
Operating		67,170		—		31,655		75		30,856		95,322		276,666		501,744
Renting		27,770		—		9,943		—		205		12,509		27,136		77,563
Repairs and Maintenance		41,487		—		38,327		—		23,299		183,276		576,924		863,313
Taxes and Insurance		70,311		15,224		47,111		4,203		35,042		130,566		647,645		950,102
		344,327		20,491		239,665		7,039		192,457		750,371		2,588,374		4,142,724
Income Before Other Income		67,199		39,980		182,458		17,828		132,771		197,711		1,442,724		2,080,671
Other Income (Loss)
Interest Expense		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
Net Income (Loss)	$	(119,340)	$	39,980	$	95,943	$	17,828	$	73,413	$	(15,655)	$	183,943	$	276,112
Net Income (Loss)—NERA 50%	$	(59,670)	$	19,990	$	47,972	$	8,914	$	36,708	$	(7,827)				46,087
Net Income —NERA 40%													$	73,577		73,577
															$	119,664

XML

SIGNIFICANT ACCOUNTING POLICIES (Business) (Details)	Jun. 30, 2024 ft² property item	Jun. 30, 2023
Commercial
Line of Business
Number of properties | item	2
Partnership properties
Line of Business
Number of properties | property	31
Partnership properties | Residential and mixed-use properties
Line of Business
Number of properties | property	27
Number of units | item	2,943
Partnership properties | Residential buildings
Line of Business
Number of properties | property	22
Partnership properties | Mixed use residential, retail and office buildings
Line of Business
Number of properties | property	5
Partnership properties | Commercial
Line of Business
Number of properties | property	4
Area of property (in square feet) | ft²	130,000
Partnership properties | Condominium
Line of Business
Number of properties | property	1
Number of units | item	19
Investment properties | Residential and mixed-use properties
Line of Business
Number of units | item	688
Area of property (in square feet) | ft²	12,500
Investment properties | Car parking lot
Line of Business
Capacity of real estate property (in cars per lot) | item	50
Limited Partnerships | Investment properties | Residential and mixed-use properties
Line of Business
Number of properties | item	7
NERA 40%
Line of Business
Ownership interest (as a percent)	40.00%	40.00%
NERA 50%
Line of Business
Ownership interest (as a percent)	50.00%	50.00%

XML

SIGNIFICANT ACCOUNTING POLICIES (Details)		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 03, 2012	Jun. 30, 2024 USD ($) item	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) tenant item shares	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) tenant	Aug. 20, 2007
Principles of Consolidation
Value at which partnership investments discontinue use of equity method		$ 0		$ 0
Amount of legal obligations related to investments no longer classified as equity method				$ 0
Revenue Recognition
Period for which arrears are charged against income				60 days
Deferred Financing Costs
Amortization of deferred financing costs				$ 190,000	$ 190,000
Income Taxes
Provision for income taxes				$ 0
Segment Reporting
Number of segments | item				1
Other Comprehensive Income (Loss)
Comprehensive income (loss)		32,524	$ 168,002	$ 174,558	2,115
Income Per Unit
Dilutive units | shares				0
Concentration of Credit Risks and Financial Instruments
Single tenants | tenant				0		0
Federally uninsured amounts of cash and cash equivalents, and security deposits included in prepaid expenses and other assets		$ 14,809,000		$ 14,809,000		$ 18,711,000
Advertising Expense
Advertising expense				177,000	193,000
Interest Capitalized
Capitalized interest				$ 0	$ 0
Minimum
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)		0.01%		0.01%
Investment, Type [Extensible Enumeration]		us-gaap:CashAndCashEquivalentsMember		us-gaap:CashAndCashEquivalentsMember
Interest Capitalized
Criteria of capitalization of interest on property based on specified period of construction				1 year
Maximum
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)		4.07%		4.07%
Investment, Type [Extensible Enumeration]		us-gaap:CashAndCashEquivalentsMember		us-gaap:CashAndCashEquivalentsMember
Less Than Wholly Owned Subsidiaries | Minimum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)		99.67%		99.67%
Less Than Wholly Owned Subsidiaries | Maximum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)		100.00%		100.00%
Investment Properties
Principles of Consolidation
Number of limited liability companies/partnerships | item		7		7
Investment Properties | Minimum
Principles of Consolidation
Percentage of ownership interest		40.00%		40.00%
Investment Properties | Maximum
Principles of Consolidation
Percentage of ownership interest		50.00%		50.00%
Class A
Income (Loss) Per Depositary Receipt
Forward split of depositary receipts	3
Exchange ratio of depositary receipts for partnership units before adjustment	10
Exchange ratio of depositary receipts for partnership units after adjustment	30
Number of units in each depository receipt	0.03333						0.10

XML

RENTAL PROPERTIES (Details)	6 Months Ended
	Jun. 30, 2024 USD ($) property item	Dec. 31, 2023 USD ($)	Jun. 30, 2023 property
Rental properties
Total fixed assets	$ 449,923,850	$ 440,496,897
Less: Accumulated depreciation	(178,852,565)	(170,691,951)
Total fixed assets, net	271,071,285	269,804,946
Land, improvements and parking lots
Rental properties
Total fixed assets	$ 99,249,928	99,162,143
Land, improvements and parking lots | Minimum
Rental properties
Useful Life	15 years
Land, improvements and parking lots | Maximum
Rental properties
Useful Life	40 years
Buildings and improvements
Rental properties
Total fixed assets	$ 276,824,808	276,167,618
Buildings and improvements | Minimum
Rental properties
Useful Life	15 years
Buildings and improvements | Maximum
Rental properties
Useful Life	40 years
Construction in Progress
Rental properties
Total fixed assets	$ 8,391,993	1,818,716
Kitchen cabinets
Rental properties
Total fixed assets	$ 16,593,160	16,137,828
Kitchen cabinets | Minimum
Rental properties
Useful Life	5 years
Kitchen cabinets | Maximum
Rental properties
Useful Life	10 years
Carpets
Rental properties
Total fixed assets	$ 13,928,453	13,127,838
Carpets | Minimum
Rental properties
Useful Life	5 years
Carpets | Maximum
Rental properties
Useful Life	10 years
Air conditioning
Rental properties
Total fixed assets	$ 500,000	500,000
Air conditioning | Minimum
Rental properties
Useful Life	5 years
Air conditioning | Maximum
Rental properties
Useful Life	10 years
Laundry Equipment
Rental properties
Total fixed assets	$ 594,010	568,716
Laundry Equipment | Minimum
Rental properties
Useful Life	5 years
Laundry Equipment | Maximum
Rental properties
Useful Life	7 years
Elevators
Rental properties
Total fixed assets	$ 1,885,265	1,885,265
Elevators | Minimum
Rental properties
Useful Life	20 years
Elevators | Maximum
Rental properties
Useful Life	40 years
Swimming pools
Rental properties
Total fixed assets	$ 1,090,604	1,090,604
Swimming pools | Minimum
Rental properties
Useful Life	10 years
Swimming pools | Maximum
Rental properties
Useful Life	30 years
Equipment
Rental properties
Total fixed assets	$ 21,749,687	21,348,556
Equipment | Minimum
Rental properties
Useful Life	5 years
Equipment | Maximum
Rental properties
Useful Life	30 years
Motor vehicles
Rental properties
Total fixed assets	$ 232,954	232,954
Motor vehicles | Maximum
Rental properties
Useful Life	5 years
Fences
Rental properties
Total fixed assets	$ 91,620	91,620
Fences | Minimum
Rental properties
Useful Life	5 years
Fences | Maximum
Rental properties
Useful Life	15 years
Furniture and fixtures
Rental properties
Total fixed assets	$ 8,791,368	$ 8,365,039
Furniture and fixtures | Minimum
Rental properties
Useful Life	5 years
Furniture and fixtures | Maximum
Rental properties
Useful Life	7 years
Partnership properties
RENTAL PROPERTIES
Number of properties | property	31
Investment Properties
RENTAL PROPERTIES
Number of units | property	690		690
NERA 40%
RENTAL PROPERTIES
Ownership interest (as a percent)	40.00%		40.00%
NERA 50%
RENTAL PROPERTIES
Ownership interest (as a percent)	50.00%		50.00%
Residential and mixed-use properties | Partnership properties
RENTAL PROPERTIES
Number of units | item	2,943
Number of properties | property	27
Residential and mixed-use properties | Investment properties
RENTAL PROPERTIES
Number of units | item	688
Residential and mixed-use properties | Investment Properties | Investment properties
RENTAL PROPERTIES
Number of properties | item	7
Residential and mixed-use properties | NERA 40% | Investment properties | Minimum
RENTAL PROPERTIES
Ownership interest (as a percent)	40.00%
Residential and mixed-use properties | NERA 50% | Investment properties | Maximum
RENTAL PROPERTIES
Ownership interest (as a percent)	50.00%
Condominium | Partnership properties
RENTAL PROPERTIES
Number of units | item	19
Number of properties | property	1
Commercial
RENTAL PROPERTIES
Number of properties | item	2
Commercial | Partnership properties
RENTAL PROPERTIES
Number of properties | property	4
Commercial | Investment Properties
RENTAL PROPERTIES
Number of units | property	3		3

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RENTAL PROPERTIES - Worchester Road (Details) - 353 Worcester Rd	Jan. 18, 2023 USD ($) ft²
RENTAL PROPERTIES
Area of the property | ft²	20,700
Purchase price of real estate properties	$ 10,151,000
Closing costs	59,000
Purchase price allocated to the value of the in-place leases	585,000
Purchase price allocated to the value of the tenant relationships	$ 378,000
Amortization period of value of the in-place leases	12 months
Amortization period of value of the tenant relationships	156 months

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RENTAL PROPERTIES - South End neighborhood (Details) - South End neighborhood of Boston, MA	Jul. 14, 2023 USD ($) ft² item
RENTAL PROPERTIES
Number of units | item	52
Number of buildings | item	3
Area of the property | ft²	3,400
Purchase price of real estate properties	$ 27,500,000
Closing costs	81,000
Purchase price allocated to the value of the in-place leases	525,000
Purchase price allocated to the value of the tenant relationships	61,000
Purchase price allocated to the value of below market leases	$ 241,000
Amortization period of value of the in-place leases	12 months
Amortization period of value of the tenant relationships	36 months

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RENTAL PROPERTIES - Mill Street Development site (Details)	1 Months Ended	3 Months Ended
	Dec. 31, 2023 USD ($) item	Dec. 31, 2025 USD ($)
Forecast
RENTAL PROPERTIES
Total expected construction costs		$ 30,000,000
Mill Street Development Woburn Massachusetts
RENTAL PROPERTIES
Number of units | item	72
Number of affordable units | item	17
Escrow deposit	$ 75,000
Mill Street Development Woburn Massachusetts | Loan Term Sheet
RENTAL PROPERTIES
Loan amount	$ 15,000,000

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RELATED PARTY TRANSACTIONS (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) item	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) item	Jun. 30, 2023 USD ($)
RELATED PARTY TRANSACTIONS
Management fee	$ 782,856	$ 665,073	$ 1,571,463	$ 1,362,837
Repairs and maintenance	3,500,467	3,479,071	6,348,424	6,241,845
Administrative expense	651,978	867,721	1,413,997	1,604,822
Renting	$ 150,772	$ 244,434	538,371	$ 436,019
Employer contributions in 401K plan			$ 32,000
Number of limited partnerships and limited liability companies in which the entity has invested | item			7
Brown Family | Minimum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	47.60%		47.60%
Brown Family | Maximum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	59.00%		59.00%
Brown Family | Related party | Minimum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	47.60%		47.60%
Brown Family | Related party | Maximum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	59.00%		59.00%
NERA 40%
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	40.00%	40.00%	40.00%	40.00%
NERA 50%
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	50.00%	50.00%	50.00%	50.00%
Majority of Partnership Properties | Related party
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue			4.00%
Management fee (as a percent)			4.00%
Linewt | Related party
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue			3.00%
General Partner or Management Company | Related party
RELATED PARTY TRANSACTIONS
Costs related to professional services			$ 568,000	$ 914,000
Repairs and maintenance			29,000
Administrative expense			152,000
Renting			57,000
Expenses for construction, architectural services and supervision of capital projects			330,000
Hamilton Company/Management Company | Related party
RELATED PARTY TRANSACTIONS
Management fee			1,571,000	1,363,000
Costs related to professional services			62,500	125,000
Amount received for management fees			431,000
Payroll and related expenses			2,086,000	2,050,000
Employer contributions in 401K plan			$ 32,000	32,000
Number of accounting staff providing bookkeeping and accounting functions | item	14		14
Hamilton Company/Management Company | Management fee | Related party
RELATED PARTY TRANSACTIONS
Amount received for management fees			$ 369,000
Hamilton Company/Management Company | Construction, architectural services and supervision of capital projects | Related party
RELATED PARTY TRANSACTIONS
Amount received for management fees			46,000
Hamilton Company/Management Company | Repairs and maintenance | Related party
RELATED PARTY TRANSACTIONS
Amount received for management fees			11,000
Hamilton Company/Management Company | Legal expense | Related party
RELATED PARTY TRANSACTIONS
Amount received for management fees			$ 5,000
Dexter Park | Related party
RELATED PARTY TRANSACTIONS
Management fee (as a percent)			2.00%
Sally Michael | Related party
RELATED PARTY TRANSACTIONS
Legal fees			$ 70,000	$ 39,000
David Reier | Related party
RELATED PARTY TRANSACTIONS
Legal fees			$ 7,000
Current and previous management company employees | Related party
RELATED PARTY TRANSACTIONS
Number of employees having ownership interest in the investment properties | item			5

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PREPAID EXPENSES and OTHER ASSETS (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
PREPAID EXPENSES and OTHER ASSETS
Security deposits	$ 3,665,000	$ 3,601,000
Escrow deposits to fund future capital improvements	2,022,000	1,784,000
Intangible assets, net of accumulated amortization	383,000	677,000
Accumulated amortization on intangible assets	1,166,000	872,000
Financing fees, net	20,000	52,000
Financing fees accumulated amortization amount	$ 162,000	$ 130,000

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MORTGAGE NOTES PAYABLE (Mortgages Payable) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
MORTGAGE NOTES PAYABLE
Effective interest rate (as a percent)	4.29%
Financing fees, net	$ 20,000	$ 52,000
Annual maturities of mortgage debt
2025-current maturities	3,196,000
2026	21,931,000
2027	6,595,000
2028	23,165,000
2029	58,327,000
Thereafter	296,832,000
Total	410,046,000
Less: unamortized deferred financing costs	2,589,000
Outstanding amount of mortgage	407,457,271	408,660,292
Mortgages payable
MORTGAGE NOTES PAYABLE
Amount of monthly installments including principal	$ 1,523,000
Weighted average interest rate (as a percent)	3.68%
Effective interest rate (as a percent)	3.77%
Financing fees, net	$ 2,589,000	2,779,000
Accumulated amortization on financing and leasing fees	$ 1,543,000	$ 1,353,000
Mortgages payable | Minimum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)	2.97%
Mortgages payable | Maximum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)	4.95%

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MORTGAGE NOTES PAYABLE (Line of Credit) (Details) - Line of Credit				6 Months Ended
	Apr. 14, 2023	Oct. 29, 2021 USD ($)	Jul. 31, 2014 USD ($)	Jun. 30, 2024 USD ($) property	Jul. 31, 2017 USD ($)
Line of Credit
Maximum borrowings		$ 25,000,000	$ 25,000,000
Term of debt		3 years	3 years
Line of credit extension period				1 year
Extension fees paid				$ 37,500	$ 128,000
Maximum borrowings during modification period		$ 17,000,000
Amount of refinancing costs		$ 179,000
Number of properties in which borrowing amount collateralized | property				23
Current covenants
Line of Credit
Debt service coverage ratio		1.60
Tangible net worth		$ 200,000,000
Leverage ratio		65.00%
Debt yield		9.50%
Revised covenants in place until September 30, 2022
Line of Credit
Debt service coverage ratio		1.35
Tangible net worth		$ 175,000,000
Leverage ratio		70.00%
Debt yield		8.50%
Revised Covenants in place until December 31, 2022
Line of Credit
Debt yield		9.00%
Federal Funds Rate
Line of Credit
Variable interest rate spread			0.50%
SOFR
Line of Credit
Variable interest rate spread	0.10%
LIBOR
Line of Credit
Variable interest rate spread		3.00%	1.00%
Additional applicable margin rate			2.50%
Minimum
Line of Credit
Debt yield				9.30%
Pledged interest ownership percentage				49.00%
Maximum
Line of Credit
Debt yield				9.50%
Pledged interest ownership percentage				100.00%

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ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS
Period for advance rental payment	1 month
Amount received for prepaid rent	$ 3,374,000
Security deposits	$ 3,665,000

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PARTNERS' CAPITAL (Details)		6 Months Ended		12 Months Ended
	Mar. 28, 2024 $ / shares	Jun. 30, 2024 item $ / item	Jun. 30, 2023 $ / item	Dec. 31, 2023 USD ($) $ / shares	Aug. 07, 2024 $ / shares	May 31, 2024 $ / shares	Mar. 31, 2024 $ / shares
Quarterly distribution per unit (in dollars per unit)						$ 12.00	$ 12.00
Quarterly distributions per depositary receipt (in dollars per receipt)					$ 0.40	$ 0.40	$ 0.40
Special distribution per unit (in dollars per unit)	$ 48.00
Special distribution per depository receipt (in dollars per receipt)	$ 1.60
Total distribution per unit (in dollars per unit)				$ 84.00
Total distribution per depository receipt (in dollars per receipt)				$ 2.80
Total distributions | $				$ 9,954,888
Depositary receipts exchange ratio for Class A units | item		30
Earnings per depository receipt
Net Income per Depositary Receipt | $ / item		2.14	1.12
Distributions per Depositary Receipt | $ / item		2.40	2.00
Limited Partner
Number of classes of partners | item		2
General Partnership
Number of classes of partners | item		1
Fixed distribution percentage of unit holders		1.00%
Class B
Fixed distribution percentage of unit holders		19.00%

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TREASURY UNITS (Details)				6 Months Ended		202 Months Ended
	Mar. 09, 2020	Mar. 10, 2015 shares	Aug. 20, 2007 shares	Jun. 30, 2024 USD ($) $ / item shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2024 USD ($) $ / item shares	Mar. 09, 2015 shares	Jan. 03, 2012
Treasury units				63,215		63,215
Period for repurchase of depository receipts	5 years	5 years	12 months
Depository receipts authorized to be repurchased		2,000,000	300,000				1,500,000
Number of depository receipts repurchased						1,542,344
Repurchase price of depository receipts (in dollars per receipt) | $ / item						31.59
Units required to be repurchased (in shares)				421	594
Total cost of repurchase | $				$ 901,124	$ 1,289,374	$ 55,322,000
General Partnership
Treasury units				632		632
Fixed distribution percentage of unit holders				1.00%
Number of depository receipts repurchased						236
Units required to be repurchased (in shares)				4.2
Total cost of repurchase | $				$ 8,993	12,882
Class A
Treasury units				50,572		50,572
Number of units in each depository receipt			0.10					0.03333
Fixed distribution percentage of unit holders				80.00%
Number of depository receipts repurchased				10,110
Repurchase price of depository receipts (in dollars per receipt) | $ / item				71.16
Repurchase price of units (in dollars per unit) | $ / item				2,134.80		947.70
Total cost of repurchase | $				$ 721,259	1,031,739
Class B
Treasury units				12,011		12,011
Fixed distribution percentage of unit holders				19.00%
Number of depository receipts repurchased						4,474
Units required to be repurchased (in shares)				80.0
Total cost of repurchase | $				$ 170,872	$ 244,753
Class B | General Partnership
Repurchase price of units (in dollars per unit) | $ / item						1,274.00

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RENTAL INCOME (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
RENTAL INCOME.
Percentage of rental income related to residential apartments and condominium units with leases of one year or less	94.00%
Maximum period of non-cancelable operating lease	1 year
Percentage of rental income related to commercial properties	6.00%
Minimum future rental income
2025	$ 3,048,338
2026	2,812,231
2027	2,467,300
2028	2,233,941
2029	1,895,581
Thereafter	9,470,229
Commercial Property Leases	$ 21,927,620

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RENTAL INCOME (Concentration) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Concentration Risk
Aggregate contingent rentals	$ 398,000	$ 328,000
Commercial rental income | Major tenant | Staples and Trader Joes
Concentration Risk
Concentration risk percentage	18.00%

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RENTAL INCOME (Commercial Leases) (Details)	6 Months Ended
	Jun. 30, 2024 USD ($) ft² item
RENTAL INCOME
Annual base rent for expiring leases | $	$ 3,565,147
Total square feet for expiring leases | ft²	129,886
Total number of leases expiring | item	59
Percentage of annual base rent for expiring leases	100.00%
2025
RENTAL INCOME
Annual base rent for expiring leases | $	$ 441,070
Total square feet for expiring leases | ft²	31,292
Total number of leases expiring | item	29
Percentage of annual base rent for expiring leases	12.00%
2026
RENTAL INCOME
Annual base rent for expiring leases | $	$ 304,000
Total square feet for expiring leases | ft²	8,601
Total number of leases expiring | item	10
Percentage of annual base rent for expiring leases	9.00%
2027
RENTAL INCOME
Annual base rent for expiring leases | $	$ 300,625
Total square feet for expiring leases | ft²	12,440
Total number of leases expiring | item	6
Percentage of annual base rent for expiring leases	8.00%
2028
RENTAL INCOME
Annual base rent for expiring leases | $	$ 283,478
Total square feet for expiring leases | ft²	7,651
Total number of leases expiring | item	3
Percentage of annual base rent for expiring leases	8.00%
2029
RENTAL INCOME
Annual base rent for expiring leases | $	$ 352,839
Total square feet for expiring leases | ft²	8,733
Total number of leases expiring | item	4
Percentage of annual base rent for expiring leases	10.00%
2030
RENTAL INCOME
Annual base rent for expiring leases | $	$ 291,029
Total square feet for expiring leases | ft²	12,026
Total number of leases expiring | item	1
Percentage of annual base rent for expiring leases	8.00%
2032
RENTAL INCOME
Annual base rent for expiring leases | $	$ 110,600
Total square feet for expiring leases | ft²	1,106
Total number of leases expiring | item	1
Percentage of annual base rent for expiring leases	3.00%
2034
RENTAL INCOME
Annual base rent for expiring leases | $	$ 533,784
Total square feet for expiring leases | ft²	20,897
Total number of leases expiring | item	2
Percentage of annual base rent for expiring leases	15.00%
Thereafter
RENTAL INCOME
Annual base rent for expiring leases | $	$ 947,722
Total square feet for expiring leases | ft²	27,140
Total number of leases expiring | item	3
Percentage of annual base rent for expiring leases	27.00%

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RENTAL INCOME (Rent Receivable) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
RENTAL INCOME.
Allowance for doubtful rent receivable	$ 981,000	$ 1,195,000
Recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis	$ 551,000

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CASH FLOW INFORMATION (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOW INFORMATION
Cash paid for interest	$ 7,649,000	$ 7,678,000
Cash paid for state income taxes	$ 100,000	$ 25,000

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FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
FAIR VALUE MEASUREMENTS
Line of credit	$ 0	$ 0
Liabilities
Carrying Amount	407,457,271	408,660,292
Carrying Amount
Assets
Cash equivalents	13,463,294	18,230,463
Treasury bills	84,789,084	84,700,751
Total Assets	98,252,378	102,931,214
Liabilities
Estimated Fair Value	573,362,621	574,629,773
Estimated Fair Value
Assets
Cash equivalents	13,463,294	18,230,463
Treasury bills	84,780,233	84,799,638
Total Assets	98,243,527	103,030,101
Liabilities
Estimated Fair Value	506,831,274	515,373,301
Partnership properties | Carrying Amount
Liabilities
Carrying Amount	407,457,271	408,660,292
Partnership properties | Estimated Fair Value
Liabilities
Carrying Amount	351,924,863	359,092,343
Investment properties | Carrying Amount
Liabilities
Carrying Amount	165,905,350	165,969,481
Investment properties | Estimated Fair Value
Liabilities
Carrying Amount	$ 154,906,411	$ 156,280,958

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DERIVATIVE FINANCIAL INSTRUMENTS (Details)	Jun. 30, 2024 USD ($) item
DERIVATIVE FINANCIAL INSTRUMENTS
Expected decrease to interest expense	$ 122,000
Interest Rate Cap | Designated as Hedging Instrument | Cash Flow Hedging
DERIVATIVE FINANCIAL INSTRUMENTS
Number of interest rate derivatives held | item	1
Notional amount	$ 411,000

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DERIVATIVE FINANCIAL INSTRUMENTS - Classification on the consolidated balance sheets (Details) - Interest Rate Swap - Designated as Hedging Instrument - Cash Flow Hedging - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
DERIVATIVE FINANCIAL INSTRUMENTS
Asset Derivatives designated as hedging instruments	$ 410,935	$ 236,377
DerivativeAssetStatementOfFinancialPositionExtensibleEnumeration	Prepaid Expense and Other Assets	Prepaid Expense and Other Assets

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DERIVATIVE FINANCIAL INSTRUMENTS - Effect on statements of income (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
DERIVATIVE FINANCIAL INSTRUMENTS
Net unrealized gain on derivative instruments for interest rate swaps	$ 32,524	$ 168,002	$ 174,558	$ 2,115
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging
DERIVATIVE FINANCIAL INSTRUMENTS
Net unrealized gain on derivative instruments for interest rate swaps	$ 32,524	$ 168,002	$ 174,558	$ 2,115
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Investment Income, Interest	Investment Income, Interest	Investment Income, Interest	Investment Income, Interest
Total Amount of Interest Expense presented in the consolidated statements of operations	$ (3,899,695)	$ (3,925,863)	$ (7,806,711)	$ (7,825,103)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest Expense, Nonoperating	Interest Expense, Nonoperating	Interest Expense, Nonoperating	Interest Expense, Nonoperating

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TAXABLE INCOME AND TAX BASIS (Details)	12 Months Ended
	Dec. 31, 2023 USD ($)
TAXABLE INCOME AND TAX BASIS
Taxable net income	$ 9,989,000
Excess amount of statement income over taxable income	1,535,000
Excess amount of cumulative statement basis over cumulative taxable basis	8,000,000
Excess amount of statement income from joint venture investments over taxable income	$ 6,000,000

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details) - item	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of limited partnerships and limited liability companies in which the entity has invested	7
NERA 40%
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	40.00%	40.00%
NERA 50%
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	50.00%	50.00%
Investment Properties
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of limited partnerships and limited liability companies in which the entity has invested	7
Number of partnerships investing in commercial property	3
Hamilton Company/Management Company
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of employees having ownership interest in the investment properties	5
Minimum | Brown Family
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	47.60%
Maximum | Brown Family
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	59.00%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Dexter) (Details)			6 Months Ended
	May 31, 2018 USD ($)	Oct. 28, 2009 USD ($) item	Jun. 30, 2024 USD ($) property	Jun. 30, 2023 USD ($) property	Dec. 31, 2023 USD ($)	Mar. 02, 2005 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,413,318		$ 1,441,291	$ 2,352,000
Outstanding amount of mortgage			407,457,271		$ 408,660,292
Distribution to the Partnership			$ 8,443,134	$ 7,128,758
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units		409	409	409
Purchase price of real estate properties		$ 129,500,000
Outstanding amount of mortgage	$ 82,000,000		$ 124,746,893	$ 124,682,270
Distribution to the Partnership	41,200,000
Dexter Park | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Loan amount		$ 89,914,000
Interest rate (as a percent)		5.57%
Period for which the entity is required to make interest only payments		2 years
Amortization period of debt		30 years
John Hancock | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Loan amount	$ 125,000,000
Interest rate (as a percent)	3.99%
General Partnership
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Distribution to the Partnership			$ 84,431	$ 71,288
General Partnership | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Distribution to the Partnership	$ 16,500,000
Carrying value	$ 0
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture		$ 15,925,000
Ownership interest (as a percent)		40.00%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Essex) (Details)				6 Months Ended
	Sep. 12, 2016 USD ($)	Sep. 30, 2015 USD ($)	Mar. 07, 2005 USD ($) item	Jun. 30, 2024 USD ($) property	Jun. 30, 2023 USD ($) property	Dec. 31, 2023 USD ($)	Mar. 02, 2005 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture				$ 1,413,318		$ 1,441,291	$ 2,352,000
Repayment of loan	$ 5,158,000
Distribution to the Partnership				8,443,134	$ 7,128,758
Mortgage Notes Payable				$ 407,457,271		$ 408,660,292
Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units			48	49	49
Number of properties in which borrowing amount collateralized | item			1
Purchase price of real estate properties			$ 14,300,000
Capacity of real estate property (in cars per lot) | item			50
Basis of interest rate		one month
Distribution to the Partnership		$ 978,193
Mortgage Notes Payable				$ 9,982,764	$ 9,968,975
Hamilton Essex 81 | Maximum
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Carrying value		$ 0
Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property				1	1
Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 2,000,000
Ownership interest (as a percent)			50.00%
Mortgages payable | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Margin over basis of interest rate (as a percent)		2.18%
Mortgage amount		$ 10,000,000
Term of debt		10 years
Investment, Variable Interest Rate, Type [Extensible Enumeration]		LIBOR [Member]
Mortgage Notes Payable				$ 10,000,000
Borrowings			$ 10,750,000
Mortgages payable | Hamilton Essex Development, LLC and Hamilton Essex 81, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Repayment of loan		$ 8,040,719

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton 1025) (Details)	Jul. 08, 2016 USD ($)	Mar. 02, 2005 USD ($) item	Jun. 30, 2024 USD ($) property	Dec. 31, 2023 USD ($)	Jun. 30, 2023 property
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture		$ 2,352,000	$ 1,413,318	$ 1,441,291
Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units		176	1		1
Number of units sold | item		127
Number of units retained for long-term investment | item		49
Capital contributions	$ 2,359,500
Term of debt		10 years
Hamilton 1025 | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt		10 years
Interest rate (as a percent)		5.67%
Period for which the entity is required to make interest only payments		5 years
Amortization period of debt		30 years
Borrowings		$ 5,000,000
Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)		50.00%
Purchase price of investments		$ 23,750,000

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Minuteman) (Details)		1 Months Ended	6 Months Ended
	Sep. 12, 2016 USD ($)	Sep. 30, 2004 USD ($) item	Jun. 30, 2024 USD ($) property	Jun. 30, 2023 USD ($) property	Dec. 31, 2023 USD ($)	Dec. 31, 2018 USD ($)	Mar. 02, 2005 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,413,318		$ 1,441,291		$ 2,352,000
Distribution to the Partnership			8,443,134	$ 7,128,758
Amount of mortgage paid off	$ 5,158,000
Refinancing costs			$ 2,589,000
Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			42	42
Purchase price of real estate properties		$ 10,100,000
Distribution to the Partnership	385,000
Mortgage amount	$ 6,000,000		$ 6,000,000
Term of debt	15 years
Refinancing costs	$ 123,000		$ 58,990
Interest rate (as a percent)	3.71%
Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture		$ 5,075,000
Ownership interest (as a percent)		50.00%
Number of units | item		42
Maximum | Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Carrying value						$ 0
Mortgages payable | Maximum
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)			4.95%

XML

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton on Main) (Details)			1 Months Ended		6 Months Ended
	Mar. 08, 2024 USD ($)	Sep. 12, 2016 USD ($)	Aug. 31, 2014 USD ($)	Aug. 31, 2004 USD ($) item	Jun. 30, 2024 USD ($) property	Jun. 30, 2023 USD ($) property	Apr. 18, 2024	Dec. 31, 2023 USD ($)	Aug. 23, 2023 USD ($)	Dec. 31, 2018 USD ($)	Mar. 02, 2005 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture					$ 1,413,318			$ 1,441,291			$ 2,352,000
Outstanding amount of mortgage					407,457,271			$ 408,660,292
Repayment of loan		$ 5,158,000
Distribution to the Partnership					$ 8,443,134	$ 7,128,758
Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property					148	148
Outstanding amount of mortgage					$ 16,897,325	$ 16,881,274
Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Debt Instrument, Cost of Transfer Of Interests In Borrower	$ 107,000
Debt Instrument, Courtesy Reduction As A Percentage Of Transfer Fee							50.00%
Hamilton on Main Apartments, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture				$ 8,000,000
Ownership interest (as a percent)				50.00%					50.00%
Purchase price of real estate properties				$ 56,000,000
Number of units | item				280
Number of units sold | item				137
Mortgage amount									$ 16,900,000
Outstanding amount of mortgage					$ 16,900,000
Distribution to the Partnership			$ 850,000
Hamilton on Main Apartments, LLC | Mortgage, 5.18%, 2005
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Repayment of loan			$ 15,205,000
Hamilton on Main Apartments, LLC | Mortgage, 4.34%, August 2014
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt			10 years
Mortgage amount			$ 16,900,000
Interest rate (as a percent)			4.34%
Closing Costs			$ 161,000
Maximum | Hamilton on Main Apartments, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Carrying value										$ 0

XML

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (345 Franklin) (Details)		1 Months Ended	6 Months Ended
	Sep. 12, 2016 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2024 USD ($) property	Jun. 30, 2023 USD ($) property	Dec. 31, 2023 USD ($)	Mar. 02, 2005 USD ($)	Nov. 30, 2001 USD ($) item
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,413,318		$ 1,441,291	$ 2,352,000
Repayment of loan	$ 5,158,000
Distribution to the Partnership			8,443,134	$ 7,128,758
Outstanding amount of mortgage			$ 407,457,271		$ 408,660,292
Maximum | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)			4.95%
345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture							$ 1,533,000
Ownership interest (as a percent)							50.00%
Number of units | item							40
Distribution to the Partnership		$ 1,610,000
345 Franklin | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)		3.87%
Borrowings		$ 10,000,000
345 Franklin | Maximum
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Carrying value		$ 0
345 Franklin | Mortgage, 3.87%, June 2013
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt		15 years
Outstanding amount of mortgage			$ 8,364,000
345 Franklin | Mortgage, 3.87%, June 2013 | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Period for which the entity is required to make interest only payments		3 years
Amortization period of debt		30 years
345 Franklin | Mortgage, Paid off June 2013 | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Repayment of loan		$ 6,776,000
345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			40	40
Outstanding amount of mortgage			$ 8,337,358	$ 8,565,993

XML

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Balance Sheet) (Details)	Jun. 30, 2024 USD ($) property	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($) property	Dec. 31, 2022 USD ($)	May 31, 2018 USD ($)	Oct. 28, 2009 item	Mar. 07, 2005 item	Mar. 02, 2005 item
ASSETS
Rental Properties	$ 271,071,285	$ 269,804,946
Cash & Cash Equivalents	13,463,294	18,230,463
Rent Receivable	1,028,438	953,761
Real Estate Tax Escrows	2,385,456	2,229,703
Prepaid Expenses & Other Assets	9,549,493	8,369,775
Total Assets	383,700,368	385,730,690
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	407,457,271	408,660,292
Accounts Payable & Accrued Expense	5,394,443	5,720,088
Advance Rental Pmts & Security Deposits	10,396,651	9,996,887
Total Liabilities	450,688,131	451,085,074
Partners' Capital	(66,987,763)	(65,354,384)	$ (64,306,033)	$ (59,869,357)
Total Liabilities and Partners' Capital	383,700,368	385,730,690
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	(27,439,766)	$ (26,707,807)
Investment Properties
ASSETS
Rental Properties	101,051,070		104,760,781
Cash & Cash Equivalents	3,878,642		4,400,626
Rent Receivable	446,111		448,456
Real Estate Tax Escrows	334,200		274,066
Prepaid Expenses & Other Assets	4,351,960		3,409,066
Total Assets	110,061,983		113,292,995
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	165,905,350		166,031,339
Accounts Payable & Accrued Expense	1,195,814		1,381,218
Advance Rental Pmts & Security Deposits	5,519,946		4,859,356
Total Liabilities	172,621,110		172,271,913
Partners' Capital	(62,559,127)		(58,978,918)
Total Liabilities and Partners' Capital	110,061,983		113,292,995
Investment in Unconsolidated Joint Ventures	1,413,318		1,435,154
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	(27,439,766)		(25,963,031)
Total Investment in Unconsolidated Joint Ventures (Net)	$ (26,026,448)		$ (24,527,877)
Total units/ condominiums
Total | property	690		690
Investment Properties | Residential buildings
Total units/ condominiums
Total | property	687		687
Investment Properties | Commercial
Total units/ condominiums
Total | property	3		3
Hamilton Essex 81
ASSETS
Rental Properties	$ 5,246,865		$ 5,614,141
Cash & Cash Equivalents	1,141,309		997,622
Rent Receivable	197,191		211,562
Real Estate Tax Escrows	81,453		67,281
Prepaid Expenses & Other Assets	351,532		326,548
Total Assets	7,018,350		7,217,154
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	9,982,764		9,968,975
Accounts Payable & Accrued Expense	136,741		165,149
Advance Rental Pmts & Security Deposits	374,170		309,790
Total Liabilities	10,493,675		10,443,914
Partners' Capital	(3,475,325)		(3,226,760)
Total Liabilities and Partners' Capital	$ 7,018,350		$ 7,217,154
Partners' Capital %-NERA	50.00%		50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (1,737,662)		$ (1,613,380)
Total units/ condominiums
Total	49		49				48
Hamilton Essex 81 | Residential buildings
Total units/ condominiums
Total | property	48		48
Hamilton Essex 81 | Commercial
Total units/ condominiums
Total | property	1		1
Hamilton Essex Development LLC [Member]
ASSETS
Rental Properties	$ 2,581,946		$ 2,584,435
Cash & Cash Equivalents	38,045		60,182
Rent Receivable	75,733		80,184
Prepaid Expenses & Other Assets	41,042		50,175
Total Assets	2,736,766		2,774,976
LIABILITIES AND PARTNERS' CAPITAL
Accounts Payable & Accrued Expense	2,000		1,500
Total Liabilities	2,000		1,500
Partners' Capital	2,734,766		2,773,476
Total Liabilities and Partners' Capital	$ 2,736,766		$ 2,774,976
Partners' Capital %-NERA	50.00%		50.00%
Investment in Unconsolidated Joint Ventures	$ 1,367,383		$ 1,386,738
Total units/ condominiums
Total | property	1		1
Hamilton Essex Development LLC [Member] | Commercial
Total units/ condominiums
Total | property	1		1
Franklin 345 LLC [Member]
ASSETS
Rental Properties	$ 4,308,810		$ 4,650,472
Cash & Cash Equivalents	160,348		374,750
Rent Receivable	1,293
Real Estate Tax Escrows	31,596		23,412
Prepaid Expenses & Other Assets	110,132		104,393
Total Assets	4,612,179		5,153,027
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	8,337,358		8,565,993
Accounts Payable & Accrued Expense	70,945		124,185
Advance Rental Pmts & Security Deposits	307,229		335,465
Total Liabilities	8,715,532		9,025,643
Partners' Capital	(4,103,353)		(3,872,616)
Total Liabilities and Partners' Capital	$ 4,612,179		$ 5,153,027
Partners' Capital %-NERA	50.00%		50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (2,051,676)		$ (1,936,308)
Total units/ condominiums
Total | property	40		40
Franklin 345 LLC [Member] | Residential buildings
Total units/ condominiums
Total | property	40		40
Hamilton 1025
ASSETS
Rental Properties	$ 73,395		$ 76,659
Cash & Cash Equivalents	17,673		16,853
Rent Receivable	3,309		4,931
Prepaid Expenses & Other Assets	1,038		1,049
Total Assets	95,415		99,492
LIABILITIES AND PARTNERS' CAPITAL
Accounts Payable & Accrued Expense	3,545		2,660
Total Liabilities	3,545		2,660
Partners' Capital	91,870		96,832
Total Liabilities and Partners' Capital	$ 95,415		$ 99,492
Partners' Capital %-NERA	50.00%		50.00%
Investment in Unconsolidated Joint Ventures	$ 45,935		$ 48,416
Total units/ condominiums
Total	1		1					176
Units to be retained | item								(49)
Hamilton 1025 | Residential buildings
Total units/ condominiums
Total | property			0
Hamilton 1025 | Commercial
Total units/ condominiums
Total | property	1		1
Hamilton Minuteman
ASSETS
Rental Properties	$ 4,054,581		$ 4,324,746
Cash & Cash Equivalents	123,723		251,310
Rent Receivable	2,211		2,589
Real Estate Tax Escrows	29,661		43,542
Prepaid Expenses & Other Assets	71,628		42,306
Total Assets	4,281,804		4,664,493
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	5,941,010		5,932,827
Accounts Payable & Accrued Expense	68,813		74,550
Advance Rental Pmts & Security Deposits	176,456		192,370
Total Liabilities	6,186,279		6,199,747
Partners' Capital	(1,904,475)		(1,535,254)
Total Liabilities and Partners' Capital	$ 4,281,804		$ 4,664,493
Partners' Capital %-NERA	50.00%		50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (952,238)		$ (767,627)
Total units/ condominiums
Total | property	42		42
Hamilton Minuteman | Residential buildings
Total units/ condominiums
Total | property	42		42
Hamilton on Main Apts
ASSETS
Rental Properties	$ 12,884,525		$ 12,985,301
Cash & Cash Equivalents	795,809		611,236
Rent Receivable	19,042		9,044
Real Estate Tax Escrows	191,490		139,831
Prepaid Expenses & Other Assets	363,109		248,929
Total Assets	14,253,975		13,994,341
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	16,897,325		16,881,274
Accounts Payable & Accrued Expense	190,892		196,773
Advance Rental Pmts & Security Deposits	537,218		515,070
Total Liabilities	17,625,435		17,593,117
Partners' Capital	(3,371,460)		(3,598,776)
Total Liabilities and Partners' Capital	$ 14,253,975		$ 13,994,341
Partners' Capital %-NERA	50.00%		50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (1,685,730)		$ (1,799,388)
Total units/ condominiums
Total | property	148		148
Hamilton on Main Apts | Residential buildings
Total units/ condominiums
Total | property	148		148
Dexter Park
ASSETS
Rental Properties	$ 71,900,948		$ 74,525,027
Cash & Cash Equivalents	1,601,735		2,088,673
Rent Receivable	147,332		140,146
Prepaid Expenses & Other Assets	3,413,479		2,635,666
Total Assets	77,063,494		79,389,512
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	124,746,893		124,682,270		$ 82,000,000
Accounts Payable & Accrued Expense	722,878		816,401
Advance Rental Pmts & Security Deposits	4,124,873		3,506,661
Total Liabilities	129,594,644		129,005,332
Partners' Capital	(52,531,150)		(49,615,820)
Total Liabilities and Partners' Capital	$ 77,063,494		$ 79,389,512
Partners' Capital %-NERA	40.00%		40.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (21,012,460)		$ (19,846,328)
Total units/ condominiums
Total	409		409			409
Dexter Park | Residential buildings
Total units/ condominiums
Total | property	409		409

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Income) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues
Rental Income	$ 19,841,559	$ 17,964,963	$ 39,551,991	$ 35,533,690
Laundry and Sundry Income	209,007	136,073	391,974	259,032
Total Revenues	20,050,566	18,101,036	39,943,965	35,792,722
Expenses
Administrative	651,978	867,721	1,413,997	1,604,822
Depreciation and Amortization	4,277,482	3,961,432	8,505,064	7,807,693
Management Fees	782,856	665,073	1,571,463	1,362,837
Renting	150,772	244,434	538,371	436,019
Repairs and Maintenance	3,500,467	3,479,071	6,348,424	6,241,845
Taxes and Insurance	2,510,031	2,423,722	4,992,399	4,894,401
Total Expenses	13,512,402	13,362,686	27,654,028	26,602,646
Income Before Other Income (Expense)	6,538,164	4,738,350	12,289,937	9,190,076
Other Income (Loss)
Interest income	1,112,988	1,292,453	2,290,536	2,267,000
Total Other Income (Expense)	(2,465,438)	(2,513,746)	(4,753,615)	(5,210,735)
Net Income (Loss)	4,072,726	2,224,604	7,536,322	3,979,341
Investment Properties
Revenues
Rental Income	6,573,448	6,226,054	13,280,729	12,395,623
Laundry and Sundry Income	66,014	(2,659)	126,890	51,473
Total Revenues	6,639,462	6,223,395	13,407,619	12,447,096
Expenses
Administrative	98,396	114,053	183,532	188,518
Depreciation and Amortization	1,484,963	1,473,063	2,948,685	2,934,073
Management Fees	181,488	162,886	369,175	333,900
Operating	551,127	501,744	1,278,099	1,153,996
Renting	65,856	77,563	136,717	142,932
Repairs and Maintenance	824,689	863,313	1,415,996	1,434,354
Taxes and Insurance	954,957	950,102	1,878,700	1,879,474
Total Expenses	4,161,476	4,142,724	8,210,904	8,067,247
Income Before Other Income (Expense)	2,477,986	2,080,671	5,196,715	4,379,849
Other Income (Loss)
Interest Expense	(1,802,252)	(1,804,559)	(3,633,187)	(3,573,231)
Other Income (Expense)			63,745
Interest income	51,331		100,890
Total Other Income (Expense)	(1,750,921)	(1,804,559)	(3,468,552)	(3,573,231)
Net Income (Loss)	727,065	276,112	1,728,163	806,618
Proportionate share of net income (loss)	321,269	119,664	762,560	347,368
Investment Properties | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	152,230	46,087	356,475	123,593
Investment Properties | NERA 40%
Other Income (Loss)
Proportionate share of net income (loss)	169,039	73,577	406,085	223,774
Hamilton Essex 81
Revenues
Rental Income	450,375	411,189	918,853	850,177
Laundry and Sundry Income	3,568	337	6,344	3,040
Total Revenues	453,943	411,526	925,197	853,217
Expenses
Administrative	5,325	5,791	10,543	10,531
Depreciation and Amortization	116,067	117,146	231,911	234,133
Management Fees	16,759	14,652	37,186	33,744
Operating	93,958	67,170	176,997	150,518
Renting	6,395	27,770	7,634	30,945
Repairs and Maintenance	56,162	41,487	94,619	95,955
Taxes and Insurance	94,622	70,311	163,965	141,245
Total Expenses	389,288	344,327	722,855	697,071
Income Before Other Income (Expense)	64,655	67,199	202,342	156,146
Other Income (Loss)
Interest Expense	(197,041)	(186,539)	(394,241)	(358,852)
Interest income	10,829		21,250
Total Other Income (Expense)	(186,212)	(186,539)	(372,991)	(358,852)
Net Income (Loss)	(121,557)	(119,340)	(170,649)	(202,706)
Hamilton Essex 81 | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	(60,780)	(59,670)	(85,324)	(101,353)
Hamilton Essex Development
Revenues
Rental Income	60,471	60,471	120,942	120,942
Total Revenues	60,471	60,471	120,942	120,942
Expenses
Administrative	1,000	750	3,000	1,500
Depreciation and Amortization	2,928	2,928	5,855	5,855
Management Fees	1,653	1,589	4,132	4,768
Taxes and Insurance	17,600	15,224	35,192	30,681
Total Expenses	23,181	20,491	48,179	42,804
Income Before Other Income (Expense)	37,290	39,980	72,763	78,138
Other Income (Loss)
Interest income	419		1,190
Total Other Income (Expense)	419		1,190
Net Income (Loss)	37,709	39,980	73,953	78,138
Hamilton Essex Development | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	18,854	19,990	36,976	39,070
345 Franklin
Revenues
Rental Income	447,328	422,123	891,084	834,013
Laundry and Sundry Income	(242)		(236)
Total Revenues	447,086	422,123	890,848	834,013
Expenses
Administrative	6,059	9,574	14,979	13,043
Depreciation and Amortization	86,398	86,560	172,796	172,866
Management Fees	17,537	16,495	34,954	32,632
Operating	15,519	31,655	41,384	57,035
Renting	5,681	9,943	9,776	18,200
Repairs and Maintenance	21,838	38,327	44,882	62,538
Taxes and Insurance	50,195	47,111	99,480	94,286
Total Expenses	203,227	239,665	418,251	450,600
Income Before Other Income (Expense)	243,859	182,458	472,597	383,413
Other Income (Loss)
Interest Expense	(84,238)	(86,515)	(169,105)	(173,474)
Interest income	2,268		4,629
Total Other Income (Expense)	(81,970)	(86,515)	(164,476)	(173,474)
Net Income (Loss)	161,889	95,943	308,121	209,939
345 Franklin | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	80,944	47,972	154,060	104,970
Hamilton 1025
Revenues
Rental Income	24,745	24,867	51,633	49,735
Total Revenues	24,745	24,867	51,633	49,735
Expenses
Administrative	700	951	1,401	1,871
Depreciation and Amortization	816	816	1,632	1,632
Management Fees	1,006	994	2,068	1,989
Operating	174	75	(38)	142
Renting	45		63
Repairs and Maintenance	1,650		1,650
Taxes and Insurance	5,498	4,203	10,174	8,704
Total Expenses	9,889	7,039	16,950	14,338
Income Before Other Income (Expense)	14,856	17,828	34,683	35,397
Other Income (Loss)
Interest Expense	(205)
Interest income	418		418
Total Other Income (Expense)	213		418
Net Income (Loss)	15,069	17,828	35,101	35,397
Hamilton 1025 | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	7,535	8,914	17,550	17,699
Hamilton Minuteman
Revenues
Rental Income	360,169	325,228	711,617	638,730
Total Revenues	360,169	325,228	711,617	638,730
Expenses
Administrative	3,384	5,607	10,318	9,482
Depreciation and Amortization	83,272	84,591	166,005	168,308
Management Fees	14,079	12,857	28,309	25,663
Operating	19,202	30,856	64,776	68,372
Renting	4,161	205	9,691	1,573
Repairs and Maintenance	31,880	23,299	61,165	44,233
Taxes and Insurance	39,588	35,042	78,756	70,400
Total Expenses	195,566	192,457	419,020	388,031
Income Before Other Income (Expense)	164,603	132,771	292,597	250,699
Other Income (Loss)
Interest Expense	(59,144)	(59,358)	(118,295)	(118,108)
Interest income	2,980		5,463
Total Other Income (Expense)	(56,164)	(59,358)	(112,832)	(118,108)
Net Income (Loss)	108,439	73,413	179,765	132,591
Hamilton Minuteman | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	54,220	36,708	89,883	66,296
Hamilton on Main Apts
Revenues
Rental Income	1,049,070	963,511	2,057,301	1,886,063
Laundry and Sundry Income	12,580	(15,429)	25,244
Total Revenues	1,061,650	948,082	2,082,545	1,886,063
Expenses
Administrative	33,819	26,269	43,143	38,973
Depreciation and Amortization	272,073	265,496	533,325	530,006
Management Fees	42,043	36,933	82,234	74,129
Operating	110,070	95,322	244,472	224,264
Renting	29,150	12,509	56,737	24,455
Repairs and Maintenance	183,947	183,276	330,278	336,730
Taxes and Insurance	105,451	130,566	206,992	262,939
Total Expenses	776,553	750,371	1,497,181	1,491,496
Income Before Other Income (Expense)	285,097	197,711	585,364	394,567
Other Income (Loss)
Interest Expense	(191,983)	(213,366)	(385,098)	(400,743)
Other Income (Expense)			63,745
Interest income	9,801		22,651
Total Other Income (Expense)	(182,182)	(213,366)	(298,702)	(400,743)
Net Income (Loss)	102,915	(15,655)	286,662	(6,176)
Hamilton on Main Apts | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	51,459	(7,827)	143,331	(3,088)
Dexter Park
Revenues
Rental Income	4,181,290	4,018,665	8,529,299	8,015,963
Laundry and Sundry Income	50,108	12,433	95,538	48,433
Total Revenues	4,231,398	4,031,098	8,624,837	8,064,396
Expenses
Administrative	48,109	65,111	100,148	113,118
Depreciation and Amortization	923,409	915,526	1,837,161	1,821,273
Management Fees	88,411	79,366	180,292	160,975
Operating	312,204	276,666	750,508	653,665
Renting	20,424	27,136	52,816	67,759
Repairs and Maintenance	529,212	576,924	883,402	894,898
Taxes and Insurance	642,003	647,645	1,284,141	1,271,219
Total Expenses	2,563,772	2,588,374	5,088,468	4,982,907
Income Before Other Income (Expense)	1,667,626	1,442,724	3,536,369	3,081,489
Other Income (Loss)
Interest Expense	(1,269,641)	(1,258,781)	(2,566,448)	(2,522,054)
Interest income	24,616		45,289
Total Other Income (Expense)	(1,245,025)	(1,258,781)	(2,521,159)	(2,522,054)
Net Income (Loss)	422,601	183,943	1,015,212	559,435
Dexter Park | NERA 40%
Other Income (Loss)
Proportionate share of net income (loss)	$ 169,039	$ 73,577	$ 406,085	$ 223,774
NERA 50%
Other Income (Loss)
Ownership interest (as a percent)	50.00%	50.00%	50.00%	50.00%
NERA 40%
Other Income (Loss)
Ownership interest (as a percent)	40.00%	40.00%	40.00%	40.00%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Mortgage Maturities) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	May 31, 2018	Sep. 12, 2016
Annual maturities of mortgage debt
2025	$ 3,196,000
2026	21,931,000
2027	6,595,000
2028	23,165,000
2029	58,327,000
Thereafter	296,832,000
Total	410,046,000
Less: unamortized deferred financing costs	(2,589,000)
Secured Debt	$ 407,457,271	$ 408,660,292
Weighted average interest rate (as a percent)	4.23%
Effective interest rate (as a percent)	4.29%
Investment Properties
Annual maturities of mortgage debt
2025	$ 17,144,563
2026	10,254,197
2027	264,211
2028	125,274,619
2029	7,326,402
Thereafter	6,000,000
Total	166,263,992
Less: unamortized deferred financing costs	(358,642)
Secured Debt	165,905,350		$ 166,031,339
Hamilton Essex 81
Annual maturities of mortgage debt
2026	10,000,000
Total	10,000,000
Less: unamortized deferred financing costs	(17,236)
Secured Debt	9,982,764		9,968,975
345 Franklin
Annual maturities of mortgage debt
2025	244,563
2026	254,197
2027	264,211
2028	274,619
2029	7,326,402
Total	8,363,992
Less: unamortized deferred financing costs	(26,634)
Secured Debt	8,337,358		8,565,993
Hamilton Minuteman
Annual maturities of mortgage debt
Thereafter	6,000,000
Total	6,000,000
Less: unamortized deferred financing costs	(58,990)				$ (123,000)
Secured Debt	5,941,010		5,932,827
Hamilton on Main Apts
Annual maturities of mortgage debt
2025	16,900,000
Total	16,900,000
Less: unamortized deferred financing costs	(2,675)
Secured Debt	16,897,325		16,881,274
Dexter Park
Annual maturities of mortgage debt
2028	125,000,000
Total	125,000,000
Less: unamortized deferred financing costs	(253,107)
Secured Debt	$ 124,746,893		$ 124,682,270	$ 82,000,000

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EMPLOYEE BENEFIT 401(k) PLANS (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
EMPLOYEE BENEFIT 401(k) PLANS
Maximum deferral percentage	90.00%
Matching contribution (as a percent)	50.00%
Percent of compensation	6.00%
Employee contribution vesting percentage	100.00%
Years of service required to vest in employer contributions	2 years
Annual vesting percentage	20.00%
Years of service required to vest 100% in employer contributions	6 years
Total plan expense	$ 32,000

XML

SUBSEQUENT EVENTS (Details)		1 Months Ended	6 Months Ended		202 Months Ended
	Mar. 08, 2024 USD ($)	Aug. 08, 2024 USD ($) $ / item shares	Jun. 30, 2024 USD ($) shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2024 USD ($) $ / item shares	Aug. 07, 2024 $ / shares	May 31, 2024 $ / shares	Apr. 18, 2024	Mar. 31, 2024 $ / shares	Aug. 23, 2023 USD ($)	Aug. 31, 2004
Subsequent events
Number of depository receipts repurchased					1,542,344
Repurchase price of depository receipts (in dollars per receipt) | $ / item					31.59
Total cost of repurchase | $			$ 901,124	$ 1,289,374	$ 55,322,000
Units required to be repurchased (in shares)			421	594
Quarterly distribution (per unit) | $ / shares						$ 12.00
Quarterly distributions per depositary receipt (in dollars per receipt) | $ / shares						$ 0.40	$ 0.40		$ 0.40
Hamilton on Main Apts
Subsequent events
Debt Instrument, Cost of Transfer Of Interests In Borrower | $	$ 107,000
Debt Instrument, Courtesy Reduction As A Percentage Of Transfer Fee								50.00%
Hamilton on Main Apartments, LLC
Subsequent events
Ownership interest (as a percent)										50.00%	50.00%
Loan amount | $										$ 16,900,000
Class B
Subsequent events
Number of depository receipts repurchased					4,474
Total cost of repurchase | $			$ 170,872	$ 244,753
Units required to be repurchased (in shares)			80.0
General Partnership
Subsequent events
Number of depository receipts repurchased					236
Total cost of repurchase | $			$ 8,993	$ 12,882
Units required to be repurchased (in shares)			4.2
Subsequent Event [Member]
Subsequent events
Number of depository receipts repurchased		654
Repurchase price of depository receipts (in dollars per receipt) | $ / item		70.86
Price per unit of depository receipts | $ / item		2,125.80
Total cost of repurchase | $		$ 46,744
Subsequent Event [Member] | Class B
Subsequent events
Total cost of repurchase | $		$ 11,077
Units required to be repurchased (in shares)		5.2
Subsequent Event [Member] | General Partnership
Subsequent events
Price per unit of depository receipts | $ / item		2,125.80
Total cost of repurchase | $		$ 579
Units required to be repurchased (in shares)		0.3