SUBSEQUENT EVENTS (Tables)

12 Months Ended

Dec. 31, 2012

SUBSEQUENT EVENTS

Schedule of balance sheets

Nashoba Apartments LP
Balance Sheets
(In Thousands)

	December 31,
	2012			2011
Assets:
Rental property	$	1,283		$	1,210
Accumulated depreciation		821			743
Rental property (net)		462			467
Other current assets		123			80
Other assets		2			6
Total assets	$	587		$	553
Liabilities:
Mortgage note payable	$	2,000		$	2,000
Other liabilities		71			70
Total liabilities		2,071			2,070
Partner's equity		(1,484	)		(1,517	)
Total liabilities & partner's equity	$	587		$	553

Schedule of statements of income

Nashoba Apartments LP
Statements of Income
(In Thousands)

	Years ended December 31,
	2012		2011		2010
Rental and other Income	$	462	$	451	$	450
Operating Expenses		241		260		261
Interest Expense		108		108		108
Depreciation		80		72		63
Total Expenses		429		440		432
Net Income	$	33	$	11	$	18

Schedule of cash flow information

Nashoba Apartments LP
Cash Flow Information
(In Thousands)

	Years ended December 31,
	2012		2011			2010
Distributions from (to) Nashoba	$	1	$	(72	)	$	45

Schedule of pro forma consolidated balance sheet

New England Realty Associates Limited Partnership
Pro Forma Consolidated Balance Sheet
As of December 31, 2012
(Unaudited)

				Pro Forma
	Historical NERA			Adjustments Refinancings			Consolidated Totals
ASSETS
Rental Properties	$	95,435,850		$	—		$	95,435,850
Cash and Cash Equivalents		6,981,906	(a)		21,465,693			28,447,599
Rents Receivable		475,083			—			475,083
Real Estate Tax Escrows		449,652			—			449,652
Prepaid Expenses and Other Assets		3,073,890	(b)		2,028,400			5,102,290
Investments in Unconsolidated Joint Ventures		13,986,173			—			13,986,173
Financing and Leasing Fees		1,135,936	(c)		1,445,795			2,581,731
Total Assets	$	121,538,490		$	24,939,888		$	146,478,378
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	$	138,055,522	(d)	$	24,980,014		$	163,035,536
Accounts Payable and Accrued Expenses		2,361,942			—			2,361,942
Advance Rental Payments and Security Deposits		3,636,704			—			3,636,704
Total Liabilities	$	144,054,168		$	24,980,014		$	169,034,182
Partners' Capital 130,444 units outstanding in 2012		(22,515,678	)		(40,126	)		(22,555,804	)
Total Liabilities and Partners' Capital	$	121,538,490		$	24,939,888		$	146,478,378

Schedule of pro forma consolidated income statement

New England Realty Associates Limited Partnership
Pro Forma Consolidated Statement of Income
For the Twelve Months Ended December 31, 2012
(Unaudited)

				Pro Forma
	Historic NERA			Adjustments Refinancing			Consolidated Totals
Revenues
Rental income	$	35,244,008		$	—		$	35,244,008
Laundry and sundry income		388,401			—			388,401
		35,632,409			—			35,632,409
Expenses
Administrative		1,825,951			—			1,825,951
Depreciation and amortization		6,092,725	(e)		112,948			6,205,673
Management fee		1,446,620			—			1,446,620
Operating		3,633,619			—			3,633,619
Renting		183,529			—			183,529
Repairs and maintenance		5,179,408			—			5,179,408
Taxes and insurance		4,348,492			—			4,348,492
		22,710,344			112,948			22,823,292
Income Before Other Income and Discontinued Operations		12,922,065			(112,948	)		12,809,117
Other Income (Loss)
Interest income		2,216			—			2,216
Interest expense		(7,802,999	)(f)		72,822			(7,730,177	)
(Loss) from investments in unconsolidated joint ventures		(1,487,484	)		—			(1,487,484	)
Other		—			—			—
		(9,288,267	)		72,822			(9,215,445	)
Income From Continuing Operations		3,633,798			(40,126	)		3,593,672
Discontinued Operations
Income from discontinued operations		—			—			—
Gain on the sale of real estate from discontinued operations		—			—			—
		—			—			—
Net Income	$	3,633,798		$	(40,126	)	$	3,593,672
Income per Unit
Income before discontinued operations	$	27.69		$	(0.31	)	$	27.38
Income from discontinued operations		—			—			—
Net Income per Unit	$	27.69		$	(0.30	)	$	27.38
Weighted Average Number of Units Outstanding		131,230			131,230			131,230

Notes to unaudited pro forma consolidated balance sheet and consolidated statement of income:

(a)

Cash adjusted for new loan proceeds, existing loan payoff, financing fees, replacement reserves and changes to mortgage debt service.

(b)

Replacement reserves required by new debt agreement

(c)

Change in prepaid financing fees between existing debt and refinanced debt

(d)

Difference between existing debt balance and refinanced debt balance

(e)

Increase in the amortization of the balance of prepaid finance costs for the existing debt and the proportionate share of prepaid finance costs for the refinanced debt

(f)

Decrease in mortgage interest expense between existing mortgage debt and refinanced debt